Vermont oilseed production in support of food, feed and fuel markets on Vermont farms shows great promise. One challenge is the distribution of necessary equipment to process oilseeds into more useful forms; meal, oil and biodiesel. Most farmers will not assume the risk of both producing oilseed crops and attempting to convert them to oil and meal. Mobile processors are one way to enable this fledgling agricultural industry.
A summary of the components involved in oilseed processing.
A business model has been developed to estimate the operating characteristics of a mobile oilseed processor that provides services as shown in the figure below. While this model has immediate value in determining feasibility, it also will have future value to entrepreneurs considering and planning for such ventures. The model has been built with flexibility to allow for future changes in costs and prices and to allow for changes in the processor characteristics.
Modeling assessed (1) a stand alone pressing operation, (2) a stand-alone biodiesel conversion operation and (3) a combined operation. Within each of these three operations additional options also have been considered. For example, both manual and automated pressing operations were considered and operations with both single and multiple biodiesel converting trailers were considered. Expenses were estimated for each operational model.
Mobile oilseed processing in Vermont is predicted to be a feasible and profitable opportunity based on the results of this study. It is technically feasible to transport appropriately sized equipment with a truck and small trailer to remote locations to provide processing services. It is also estimated that the cost of processing is below the market value of certain outputs (biodiesel and organic meal). A key challenge to such an operation will be establishing a sufficient initial market to breakeven at a reasonable price while also planning on future growth to capitalize on economies of higher volume production. As production volume increases, breakeven price will decrease and higher profit can be realized at the same market price. A processor charging a price between breakeven and market value will realize a profit while providing some savings to the farmers they serve.