Quote:
Originally Posted by Slippery  OK, so my algae project is not going to make me rich in the short term.
So I am doing due diligence on a proposal on my desk at the moment.
Part of this is pressing 35 000 tons of soy beans every day, 5 days a week to make 8000 litres of oil. If I turn this into Bd it is already sold to a local distributor.
What I would like some feed back on is whether I would be able to sell the raw oil as SVO. I am still guessing on costs but I think it would work out at around 80 cents a litre to give me some profit.
What do you guys think? |
I think this idea is ridiculous! Surely you must be joking about this.
35,000 ton of beans to get 8000L of oil means you are going to press 4.3 tons of beans to get one litre of oil.
You are then going to sell each litre of oil for .80C ???
And you think you are going to make a profit on that.
I think you better double check your Due diligence on that one because I don't thing you have put any into this idea at all!
60 seconds of research showed me the current price of soybeans in oz is over $500 a ton and you want to sell the oil from 4.3 tons for .80C????
Even if you have made a typo here and are thinking 80,000L of oil, your still only working on less than 2.3L per ton of oil or a $1.84 return on a raw material alone worth $500+
Of course you do realize that 35000 tons = over 700 standard semitrailer loads..... A day?????? I doubt there is a facility anywhere in Australia that can handle that many trucks a day. if your running 24 hours a day, that is unloading one truck every 30 seconds.
I don't think so!!! Forget about the Facility to handle this, your going to have to start off with a new Highway network to get all those trucks there!
If you do it by rail car, you might have a chance but at 35K ton of beans a week and running the plant for 48 weeks a year, that will be 8.4 Million tons of beans a year. Another 60 seconds of research shows that the total annual production of soybeans in Oz is around 10 Million tons per year. Even if you can get hold of 80% of the total annual production, that sort of demand will for the price to multiply many times what it is now.
If the typo is 3500 tons of beans for 8k L of oil, then your still going to come up woefully short working the numbers this way as well.
OK, I give up. Whats the joke I'm missing?
Either this is a completely mis written post or Perhaps that crop you call algae has a more common name to most folks like " weed" and the reason you can't make a profit out of it is your dedicating too much to " product testing" ???
