Executive Overview of Results – Fiscal Years Ended June 1, 2019, June 2, 2018, and June 3, 2017
Our operating results are significantly affected by wholesale shell egg market prices and feed costs, which can fluctuate
widely and are outside of our control. The majority of our shell eggs are sold at independently quoted wholesale
market prices for shell eggs or formulas related to our costs of production which include the cost of corn and soybean
meal. The following table shows our net income (loss), gross profit, net average shell egg selling price, the average
Urner Barry wholesale large shell egg prices in the southeast region, and feed cost per dozen produced for each of our
three most recent fiscal years.
The shell egg industry has historically been subject to periods of high profitability followed by periods of significant
loss. The periods of high profitability have often reflected increased consumer demand relative to supply while the
periods of significant loss have often reflected excess supply for the then prevailing consumer demand. Historically,
demand for shell eggs increases in line with overall population growth. As reflected above, our operating results
fluctuate with changes in the spot egg market quote and feed costs. The net average shell egg selling price is the
blended price for all sizes and grades of shell eggs, including non-graded shell egg sales, breaking stock and undergrades. In fiscal 2017, our net average selling price and dozens sold decreased over the previous fiscal year
primarily due to the oversupply of eggs resulting from the repopulation of the national flock of laying hens to levels
exceeding the flock size prior to the avian influenza outbreak in 2015, along with a reduced demand for egg products. In
fiscal 2018, strong demand resulted in an increase in our average selling price and dozens sold, and feed costs decreased
over prior years. Fiscal 2019 saw an increasing U.S. flock size result in oversupply of eggs, particularly in the last half
of the fiscal year. This resulted in decreased gross profit and net income for fiscal 2019.
NET SALES
Net sales for the fiscal year ended June 1, 2019 were $1,361.2 million, a decrease of $141.7 million, or 9.4%, from
net sales of $1,502.9 million for fiscal 2018. The decrease was primarily due to lower selling prices for non-specialty
eggs in fiscal 2019 due to the oversupply of eggs, particularly in the last half of the fiscal year, contrasted with fiscal
2018 in which we experienced strong demand resulting in higher prices for non-specialty eggs.
In fiscal 2019, shell egg sales made up approximately 97% of our net sales. Total dozens sold in fiscal 2019 were 1,038.9 million, an increase of 1.2 million dozen, or 0.1%, compared to 1,037.7 million sold in fiscal 2018 resulting in an increase in net sales of $1.7 million for fiscal 2019 compared with the prior year.
Net average selling price of shell eggs decreased from $1.397 per dozen for fiscal 2018 to $1.265 per dozen for fiscal 2019, a decrease of $0.132 per dozen, or 9.4%, primarily reflecting an abundance of eggs in the market. The decrease in sales price in fiscal 2019 from fiscal 2018 resulted in a corresponding decrease in net sales of approximately $137.1 million. Our operating results are significantly affected by wholesale shell egg market prices, which are outside of our control. Small changes in production or demand levels can have a large effect on shell egg prices.
Egg products accounted for approximately 3% of our net sales. These revenues were $41.5 million for the fiscal year
ended June 1, 2019 compared with $43.5 million for the fiscal 2018.

Fiscal Year ended
June 1, 2019
June 2, 2018
June 3, 2017
Net income (loss) attributable to Cal-Maine Foods, Inc. - (in thousands)
$54,229
$125,932
$(74,278)
Gross profit (in thousands)
222,859
361,046
45,550
Net average shell egg selling price (rounded)
1.27
1.40
1.01
Average Urner Barry Spot Egg Market Quotations 1
1.23
1.49
0.85
Feed cost per dozen produced
0.415
0.394
0.399


Question: Analyse this data from a financial earnings document. What is the COGS for 2019?
Choices:
54228
-1686
168630
54226
-168630
Correct choice index: 4