Stop The Burning

The project will become self financing after one year of operation. This is because instead of burning crop residue, the farming communities will convert it to organic fertiliser for sale. The volumes of crop residue are such that the incomes can cover the cost of replacing the component parts as and when necessary with a significant (for poor farmers) profit on top.

 

Organic fertiliser

 

Each farming community will cover approximately 200 rai of land (79 acres) which can produce 100,000 kg (or 100 metric tons) of shredded crop residue.

 

However, in a kg of organic fertiliser (OF) only 0.8 kg of shredded crop residue is used. The additional ingredients are -

 

+    Manure - 0.1 kg

+    Biochar - 0.1 kg 

+    Microbes - Negligible weight

 

So 79 acres of land can produce - 

125,000 kg (or 120.5 metric tons) of OF

 

I kg of OF can be sold at a minimum of 15 Baht ($0.43)

1 metric ton of OF can be sold at 15,000 Baht ($428.57)

Therefore, 79 acres can generate 1.875 Million Baht ($53,571.43) of revenue (125,000 kg multiplied by 15 Baht) for a farming community.

 

But from the figure of 15 Baht ($0.43)per kg of OF, the following costs must be deducted -

 

Biochar @ 1.6 Baht ($0.046) per kg of OF

Manure @ 1 baht ($0.029) per kg of OF

Microbes are provided free by the Thai Government to registered farmers.

 

The cost of shredding we calculate as 1.6 Baht ($0.046) per kg of OF or, in a metric ton, 1,600 Baht (45.71) as follows (remembering that 1 kg of OF contains 0.8 kg of shredded residue) - 

 

120 Baht ($3.43) for gas, 

800 Baht ($22.86) for labour

64 Baht ($1.83) for blade wear, 

8 Baht ($0.23) for oil change, 

8 Baht ($0.23) other part wear

 

Sub Total A = 1000 baht ($28.57)

 

20% for overheads 200 Baht ($5.72)

 

Sub Total B = 1200 Baht ($34.29) 

 

To this cost we add - 

Transport of OF to market - 300 Baht ($8.57) per ton

Cost of moving the shredder between farms - 200 Baht ($5.72) per ton

 

For shredding & transport, the cost is 1,700 Baht ($48.57) per ton.

 

From the sale price of 15 Baht ($0.43) per kg, we deduct 1.6 Baht ($0.046) for biochar, 1 Baht ($0.029) for manure, 1.2 Baht ($0.035)for shredding, 0.5 Baht ($0.015) for transport of OF to market & moving the shredder between farms.

 

Total Cost = 4.3 Baht ($0.123)

 

Leaving a profit of 10.7 Baht ($0.306) a kg

Or 10,700 Baht ($305.715) per ton 

Or 1,337,500 Baht ($38214.286) a farming community (each farming community can produce 125,000 kg (or 120.5 metric tons of OF).

 

In 3 years, the profit would be 4,012,500 Baht ($114,642.858). The physical cost of making the shredder is around 80,000 Baht ($2285.715). We expect the shredder frame & engine to last for a minimum of 5 years.

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Notes : 

1 ton of residue can be shredded in a day. 

Workforce cost per day is 1000 Baht or $28.572 (2 people at 500 Baht ($14.286) each).

Gasoline costs 150 Baht ($4.286) per day, per kg 0.15 Baht ($0.005)

Blade wear. Each blade costs 400 Baht ($11.429). In 3 years a community will spend 24,000 Baht ($685.715) to change all the blades I.e 60 alloy steel blades.

So 8000 Baht ($228.572) a year. 8000 Baht ($228.572) per 100,000 kg of shredded residue, 0.08 Baht ($0.001) per kg for blade wear 

Transport to market - 300 Baht ($8.572) fuel cost per ton of OF

Cost of moving the shredder between farms - 200 Baht ($5.715) per ton

 

Paper Making

 

Some of our farmers are using the profit from sales of the organic fertiliser to make paper from the shredded crop residue. This paper can be used for packaging and other purposes. The demand in the market for packaging material is virtually unlimited. In some respects it can rival plastic & be marketed as an eco friendly socially responsible alternative to plastic.

 

Paper making is entirely the farmers own initiative and is a recent development, and potentially a lucrative one. The shredded residue is mixed with baking soda & the resultant mixture spread on grids and allowed to dry. 

 

Initial calculations suggest - 

 

The Rice Paper can retail at 60 Baht ($1.715) per Kg or 6 Baht ($0.172) a sheet. The cost is said to be 50% of sale price.

The one off costs are the tubs for cleaning, mixing and soaking, as well as the grids. These the farmers pay for from the profit from OF sales.A farming community of 79 acres can produce 100,000 kg of shredded residue per annum. Therefore, per annum a profit of 3,000,000 Baht ($85,714,286) is possible.