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Financial Benefits of Composting for the Equine Industry

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Financial Benefits of Composting for the Equine Industry

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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.

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.

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Financial Benefits of Composting for the Equine Industry

  1. 1. Waste To Worth The Financial Benefits of Composting Stable Waste for the Equine Industry
  2. 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
  3. 3. Waste to Worth
  4. 4. In- Vessel vs. Bin • Pic ios • Pic ios retention bin or whacky nut bins
  5. 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. 6. 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
  7. 7. Comparison of Pellets to Shavings Joint Base Myer/Henderson Arlington, Virginia IOS Ranch, Bainbridge Island, WA
  8. 8. Stall bedded with Pellets
  9. 9. 50/50 Bedding Mix
  10. 10. Absorption Capabilities
  11. 11. The Probiotic Effect
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. Road to Zero Waste Reduce Waste 50% Decrease Waste by 100% Cut Shavings Bill by 40% Sale/Use of Soil Amendment Zero Waste
  20. 20. Value Added Turn expense into income
  21. 21. 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

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