Continous flow dryer running costs v. co-op stores

[rob1]

Maybe Clive could just PM Chafcutter his drying costs?!

 

[Foxcover]

We looked at the ops question very closely this year.....to get back on topic.
Installing a newer cont flow dryer is going to be circa £250K.
Buying some capacity at a local store with drying facility will cost you £9/t using the above figures.

At those rates I would need to dry over 27,000tonne to make my money back on my own dryer. Now that doesn't take into account lots of other factors including higher moisture's but as a guide it will do. Producing about 3000t/year and say drying 20% of that (600t) that 45years...
Which ever way you look at it its a lot of money and a long payback period...TBH i think there are other things that will make us money that we can spend that capital on for now. And lets not frget harvest wheat is near on £100/t!

If you're only drying 600t a season wouldn't you be better off with a mobile dryer and wet bin, you could dry that in a few days? Set up cost £50k?

 

[Iben]

Ok i admit it it as me who killed the deputy so please make this torture stop

Phew! I thought you were about to post a picture.

 

[Brisel]

I end up drying circa 50% of the crop! Being close to the South coast & grossly undercombined doesn't help. A 25 t/hr drier doesn't cope with a 35 - 60 t/hr combine as it is.

 

[Iben]

I end up drying circa 50% of the crop! Being close to the South coast & grossly undercombined doesn't help. A 25 t/hr drier doesn't cope with a 35 - 60 t/hr combine as it is.

I know you are changing your area and cropping pattern. But would the extra cost of increasing your harvesting capacity be recovered by savings in drying costs?

 

[Brisel]

The next problem with that would be intake capacity! Upgrading the elevators would be tens of thousands of £s. I suppose double shifting the drier would be an option if the villagers would allow it.

 

[Woldgrain Storage]

There is never enough intake capacity, but all you do is end up moving your bottleneck around the store; pits, intake bins, driers, conveyors.

Not being able to work 24/7 through harvest would cripple our efficiency.

 

[Brisel]

There is never enough intake capacity, but all you do is end up moving your bottleneck around the store; pits, intake bins, driers, conveyors.

Not being able to work 24/7 through harvest would cripple our efficiency.

Bet you're glad you're not close to a village, town or docks where you can't run at night!

 

[Feldspar]

I have a grain store shed here that was built in 1965 at a cost of £860, its 30' x 90' with fan and above floor laterals, it still works fine, within the limitations of the laterals and height, even at todays scrap prices it would be worth more than its cost, so where is the depreciation?

How much do you think you could get for the scrap?

 

[Lincsman]

How much do you think you could get for the scrap?

At least double the £860 if scrap is £40/tonne, but the building will last another 40 years without any problems that i can see.

 

[Feldspar]

At least double the £860 if scrap is £40/tonne, but the building will last another 40 years without any problems that i can see.

And if in another 40 years the scrap price is still £40/t and you could sell the scap for at least £1600, you'd say at that point then that the building had still not depreciated at all?

 

[Clive]

And if in another 40 years the scrap price is still £40/t and you could sell the scap for at least £1600, you'd say at that point then that the building had still not depreciated at all?

oh dear !

 

[Feldspar]

oh dear !

So your answer would be?

 

[Clive]

So your answer would be?

can we just accept that he grain shed was a bloody good decision all those years ago and it really hasn't cost him bugger all

but yes...........had he had a crystal ball and bought £860 of apple shares at start up he would indeed be a billionaire now

if you know the future price of scrap or can predict inflation / deflation / interest rates etc I reckon your wasted farming, go get a job in the city or in government etc

 

[Feldspar]

can we just accept that he grain shed was a bloody good decision all those years ago and it really hasn't cost him bugger all

but yes...........had he had a crystal ball and bought £860 of apple shares at start up he would indeed be a billionaire now

if you know the future price of scrap or can predict inflation / deflation / interest rates etc I reckon your wasted farming, go get a job in the city or in government etc

So, just to be crystal clear, your answer to this question is yes:

And if in another 40 years the scrap price is still £40/t and you could sell the scap for at least £1600, you'd say at that point then that the building had still not depreciated at all?

 

[Clive]

So, just to be crystal clear, your answer to this question is yes:

my answer is I really don't care - it cost what it cost and enabled the man to carry out his business, it was significantly cheaper than CS and remains an asset for him today

it was an excellent decision to invest that £860 50 years ago


he did not (to my knowledge) have a crystal ball in 1965 that pointed out the many alternative investments that would have provided a better return on his £860 over 50 years

 

[Feldspar]

my answer is I really don't care - it cost what it cost and enabled the man to carry out his business, it was significantly cheaper than CS and remains an asset for him today

it was an excellent decision to invest that £860 50 years ago

Don't be slippery. Either, according to you, in my scenario that building has depreciated or it hasn't. Answer the question and I'll mention the topic no more.

ETA: Crystal balls and returns from alternative investments are irrelevant to the answer.

 

[Derky]

There is never enough intake capacity, but all you do is end up moving your bottleneck around the store; pits, intake bins, driers, conveyors.

Not being able to work 24/7 through harvest would cripple our efficiency.

Been there done that. You start off thinking now changing that conveyor will help but it just moves the problem on down the line.

 

[Woldgrain Storage]

my answer is I really don't care - it cost what it cost and enabled the man to carry out his business, it was significantly cheaper than CS and remains an asset for him today
it was an excellent decision to invest that £860 50 years ago

I don't remember us exploring how much Central Storage space could have been bought with £860 in 1965. Our members who bought 100t of space in 1982 for £35/t still use that space, along with the members who bought 100t last month for £120/t.

 

[Woldgrain Storage]

Been there done that. You start off thinking now changing that conveyor will help but it just moves the problem on down the line.

You just have to bite the bullet, upgrade every conveyor and elevator to the same high capacity, then accept that they will one day (25 years down the line) be replaced by even bigger ones.

Future proofing is the key to any building/infrastructure project.