http://www.extension.org/67567 Composting is becoming widely accepted as a best management practice for equine facilities. Stable waste is a readily compostable feedstock which generates heat and transforms into a finished compost product in as little as 2 weeks using in-vessel technologies. Composting the stable waste is financially beneficial, turning a liability into an asset, negating disposal fees, offering a decrease in bedding expenses and creating a saleable product. In- vessel composting allows for compliance with increasing environmental regulations associated with manure management.
The primary topic will be the cost analysis of in-vessel vs. open pile composting of stable waste. The author will also compare the value of the product produced, specifically the value added with weed seed kill, reduction of pathogens, and the uniform quality and dryness of end product. The presenter will provide lab data showing compost stability and pathogen reduction using both shavings and pellet bedding. Value of the end product is seen in bedding re-use and/or soil amendment.
Discussion of cost savings will differ for different venues in the industry. Case studies will be shown for the financial analysis of a private 20 horse stable and the 65 horse stable at the US Army base at Fort Myer/Henderson Hall in Washington DC.
Financial Benefits of Composting for the Equine Industry
1. Waste To Worth
The Financial Benefits of Composting
Stable Waste for the Equine Industry
2. Mollie Bogardus
MBA, Sustainable Business
Barn Owner/Manager 30+ years
Equine Specialist, Green Mountain
Technologies, Inc.
Washington State University
Bedding Re-Use Dairy Barn
Fort Myer/Henderson
Arlington, Virginia
IOS Ranch,
Bainbridge Island, WA
4. In- Vessel vs. Bin
• Pic ios • Pic ios retention bin or
whacky nut bins
5. Cons of Bin System
• 90-180 days
• Labor to turn piles
• Temperature issues on
edges
• Odor
Pros of Bin System
• Affordable
Pros of In Vessel System
• 10-20 days
• Automated Auger
• Uniform Temperature
• Odor Control
Cons of In Vessel System
• Cost
6.
7. Why
Mixing
Makes
Better
Compost
Uniformity in Temperature
Weed seed kill
Parasite Reduction
Pathogen Control
Homogenous Mixing Early
Drives Compost Process
Dryness
Homogenous Product
Time is $$$ - Runs quickly
through system in 10-20 days
8. Comparison of Pellets to Shavings
Joint Base Myer/Henderson
Arlington, Virginia
IOS Ranch,
Bainbridge Island, WA
13. Cost Analysis Assumptions
25% Haul in Horse Waste
75% Container Occupancy
75% Contract Horse Waste
3$ Tipping Fee Haul In per Yard
15% Growth Market Share/Market Growth
$50 Monthly Rental Fee Container
33% Reduction through Composting
$5 Finished Compost Sale Price per Yard
Income Contract based on 30 yard container, $200 per pick up
Assumes no increase of fees or sale price compost over 10 years
14. Years 1 2 3
Number of Horses Haul ins 1,000 1,150 1,323
Volume Waste Haul ins 74 85 98
Volume after Reduction
Composting 44 51 59
Yearly Volume 16,206 18,637 21,432
Number of Contract Horses 3,000 3,450 3,968
Volume Waste Contract Horses 222 255 294
Volume after Reduction
Composting 133 153 176
Yearly Volume 48,618 55,911 64,297
Total Number of Horses 4,000 4,600 5,290
Total Yearly Volume In 296 340 391
Total Yearly Volume Out 222 255 294
Income
Income Container Rental $33,750 $42,750 $51,750
Income Haul ins $48,618 $55,911 $64,297
Income Contract Horses $540,200 $621,230 $714,415
Income Sale of Compost $324,120 $372,738 $428,649
Gross Income $946,688 $1,092,629 $1,259,111
Wellington Cost Model
15. Capital Costs
Site Capital + Financing Cost $78,257 $78,257 $78,257
Support Equipment and Financing
Phase
One
Truck $110,000 $10,598 $110,000
Mixer $75,000 $7,226
Trommel Screen $85,000 $8,189
Front End Loader $120,000 $11,561
Containers $225,000 $21,677 $60,000 $60,000
ASP Pad & Aeration
System $450,000 $29,273
Equipment Cost $1,065,000
Yearly Payment Principle, Interest+Cash expenditure $59,251 $119,251 $129,848
Operating Cost
Labor $129,416 $142,358 $156,593
Insurance and overhead $69,500 $76,450 $84,095
Electrical and Utilities $71,743 $78,917 $86,809
Fuel $171,600 $188,760 $207,636
Maintenance $23,750 $26,125 $28,738
Total Operating Cost $466,009 $512,610 $563,871
Total Cost $603,517 $710,117 $771,976
Net Income $343,171 $382,511 $487,134
16. 45horses in stalls
0.5cu yd new/stall
Cost of Shavings
50yards per week
$510per week
52deliveries per year
$26,520per year
Waste
0.11cu yd per stall/day
1,807cu yd waste/year
Disposal Costs
$88per week
$4,550waste cost/year
Fines
$0per infraction ?
$31,070
Annual Costs, to
Reduce
Financial Analysis for Stable
Key Questions:
• How many horses/stalls
• What is disposal cost
• What is the frequency of
disposal expense
• What is volume of disposal
expense
• What is the cost of bedding
• What is the frequency of
delivery of bedding
• What is the volume of
bedding
Additional Inputs:
• Regulation Cost
• Soil amendment/mulch cost
• Food waste disposal cost
• Landscape waste disposal
cost
17. Composter Reduces Volume and Produces Bedding and
Saleable Compost
0.4composter reduces waste volume
0.6
screened composter output is
bedding
0.4
screened composter output is
compost
1806.75cu yd waste/year
1084.05cu yds/yr post-composter
650.43cu yds superior bedding/year
433.62cu yds saleable compost/year
Annual Savings
0.5reduction in new shavings
$13,260saved per year on shavings
$4,550saved per year on disposal
$0saved per year (or more) in fines
$17,810Total Annual Savings
Increased Income
$20per cu yd compost
$36,135compost income per year
$53,945Annual Savings + Income
Financial Analysis for Stable
Usable Material:
Reduction: 40-50% reduction of material
Calculate remaining material to be
available for Use
Percentage fines for Soil Amendment –
40%
Percentage larger material for bedding re-
use – 60%
Annual Savings:
Calculate Reduction of Shavings Bill by
40%
Calculate Savings on Waste Disposal Bill
Calculate Savings on Soil Amendment Bill
Increased Income:
Calculate any excess material to be sold
18. Return On
Investment
is figured
here as
Income from
Operations divided by
Invested
Assets
cost
reductions
Investment
Costs
These costs are estimated at the time of the
conference. NO CONTRACT IS OFFERED OR
IMPLIED.
CompTainer 24 5cu yards/day
$90,000
estimated Purchase
price
$8,000
other
equipment for recycling shavings
$1,960Maintenance annually
2% of
capital
$15,000Maintenance
discounted over 15
years
$3per day Electricity
$100,095first-year cost of 1 CompTainer
1CT40 needed
$100,095first year cost of CompTainer
15
years
lifespan
$328,47515-year cost of CompTainer
Financial Analysis for Stable
Return on
Investment
(ROI)
Income from
Operations/
Invested Assets
19. ROI on
System
$53,945
Income Yearly from
Operations, Saved +
Sold
$809,175
15-year
Income
246%
Return on
Investment
Break
Even
6.09years
Financial Analysis for Stable
Break
Even
Income from Yearly
Operations and Money
Saved Over 15 Year Life Span
Divided by Investment Cost
20. Road to Zero Waste
Reduce
Waste
50%
Decrease
Waste by
100%
Cut
Shavings
Bill by
40%
Sale/Use of
Soil
Amendment
Zero
Waste
22. Mollie Bogardus, MBA Sustainable Business,
Equine Specialist,
Green Mountain Technologies, Inc.
Editor's Notes
How you take a liability and turn it to a financial gain
Discuss the benefits of an in vessel system vs a pile or bin system. Comes down to assurance in the quality of compost produced
Speedvs Area explained. IN vessel in 14-21 days vs up to one year. Ask Caitlin – lab data.
Trending graph shavings, pellets affecting market. Expense of wood material increasing due to petroleum prices – burn pellets for heat and delivery fee. Low new housing market. General trend washington – 18-20% logs in Washington exported as logs – no milling here. Largest supplier of shavings to US is Canada. Shavings not valuable for paper market because fiber is too short. Pellet market direct competition with shavings. Run through auger and extrude it with a binding agent. Pellet production is high energy process. Also bags add to waste stream. Pope and Talbot, Weyerhauser becoming land manamgement companies with land ! Asset not t