Question-and-Answer Session
Operator
Sure. Ladies and gentlemen if you’d like to ask a question please press *1. If your question has been answered or you’d like to withdraw your question please press *2. In the interest of time please limit your questions to one per caller. If you wish to ask a follow-up question you may re-enter the queue by pressing *1. Please press *1 to begin.
Your first question comes from the line of [Ethan Star], private investor.
[Ethan Star] – Private Investor
Good morning. Just wondering?I know that Oil-Dri is developing a couple of non-medicated additives for animal feeds and I’m wondering what you can tell us about those products and when will they generate revenue?
Daniel Jaffee
Again, just the usual. I’m a broken record but I say it every call so I’ll say it again. Maybe you are trying to see if I’m nothing if not consistent. But we’re never going to dance until we get into the end zone. So until we have something material there is no reason?it is not going to help you as an investor. I’m not even referencing this particular thing that you’re referring to, I’m just saying in general with this product. While it may be somewhat frustrating from an investor’s standpoint, long term it is really in your best interest that I don’t signal to the competition which play we’re going to run before we run it. So no comment on that.
[Ethan Star] – Private Investor
So since it is no comment can I ask another one or do you want me to go back in the queue?
Daniel Jaffee
You can ask another one unless it is about new products and then you can get back in the queue.
[Ethan Star] – Private Investor
What can you tell us about Project Snow Drop and what might it mean as far as increased sales for Oil-Dri?
Daniel Jaffee
I can’t answer that one either. You’re two-for-two Ethan.
[Ethan Star] – Private Investor
Okay I’ll get back in the queue.
Daniel Jaffee
Okay thanks.
Operator
Your next question comes from the line of Robert Smith with Oil-Dri. Please proceed.
Robert Smith – Oil-Dri
Good morning. So can you tell me about the timeline for implementation of the price increase that will get you back to where you want to be?
Daniel Jaffee
Yeah. I mean some of them are contractually driven. It has been a commitment of ours over the last five years that any contract over a year in length has a PPI escalator mechanism in it which is something the U.S. government put in place so that companies could do business over the long haul. So those things are automatically driven. We’ve got a big one going up at the end of April, another one going up at the end of June. So those are going to kick in as they kick in. Interestingly enough, the PPI is up significantly in the last twelve months. We’ll see what this next month of data does, but everything we’re seeing is it is something north of 6% something less than maybe right around 7%, something in that range is what you’re looking at year-over-year which is telling you costs in this country are going up significantly at the producer level. So those are going to take care of themselves.
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