Fertilizer Manufacturing Plant Cost
What calls for special attention for entrepreneurs and investors interested in establishing a fertilizer manufacturing plant is that understanding the cost factors. If you’re looking for information on the fertilizer manufacturing plant cost, it involves expenses such as land rent, plant construction, fertilizer production equipment, raw and auxiliary material costs, labor costs, energy consumption, ROI, etc. Typically, according to raw materials and output, we can customize different fertilizer production solutions for customers’ organic fertilizer, compound fertilizer, bulk blending fertilizer or liquid fertilizer production factories, for clients with budgets ranging from $30,000 to $1,200,000.
How Much Does An Organic Fertilizer Plant Setup Cost?
Our company has served many customers who are to build organic fertilizer factories. Moreover, we help them design fertilizer plant layout and offer appropriate machines, considering the initial investment and operating costs. For example, some customers have their own farms and want to be self-sufficient, reduce long-term purchase costs, and increase the added value of agricultural waste. So they need to build a small organic fertilizer factory. Besides, some customers also see the low cost and high income of the organic fertilizer industry and want to invest. Certainly, there are also some countries where governments and policies support enterprises to develop environmental protection projects and achieve resource recycling through the production of organic fertilizers. In a word, we can provide the general equipment purchase cost of organic fertilizer plant is from $35,000 to $550,000 with different capacities.
a. If I have less than $100,000 cash, how can I start an organic fertilizer plant?
If you have tight budget of less than $100,000 and limited factory areas, we suggest you choosing an organic fertilizer powder production line as an optimal option. In addition, if you want to minimize the workshop’s construction costs even further, you may stockpile raw materials and compost outside, as the interior workshop requires at least 500 m³ of space. In general, this program contains fermentation compost equipment (7 Types), compost crusher (3 Types), screening machine (optional), batching machine (optional), horizontal mixer (optional), and automatic packing line.
b. How to invest $100,000-$500,000 for Starting An Organic Fertilizer Plant?
If you want to get more market competitive finished organic fertilizers, you can choose the pellet organic production line, because it makes organic fertilizer granules with beautiful appearance and higher nutritional value. Furthermore, it can make storage and transportation easier. There are various units you can select: compost machine (7 Type), vertical crusher, rotary screening machine (optional), batching machine (optional), horizontal mixer (optional), organic fertilizer granulator, dryer & cooler (optional), rotary screening machine, organic fertilizer polishing machine (optional), rotary coating machine (optional), and packing machines.
Thus, there are 3 kinds of organic particle fertilizer production process.
2. What Is The Compound Fertilizer Production Line Cost?
If you want fertilizer granules on a large and commercial scale, you may establish a particle manufacturing line. However, you’d better have a certain specific chemical knowledge, production experience and technical assistance.
In general, granular compound fertilizer manufacture entails blending with various nutrients or additives, and involves raw material processing procedures such as mixing, granulation, and drying. Thus, the granular compound fertilizer plant area is much larger than BB fertilizer factory, so is the construction cost. Besides, it may occupy 2,500-10,000 m³ areas, with the cost between $80,000 and $45,000.
When compared to granular organic fertilizer processing, you can choose to produce compound fertilizer pellets to eliminate one fermentation workshop, saving between $20,000 and $80,000 depending on the production size.
Point 2: How Much Does A Fertilizer Factory Cost To Acquire Raw Materials?
Since you have built up the fertilizer production workshop and determined the fertilizer manufacturing process, the next step is to consider the cost of raw materials. Thus, when it comes to this issue, you should not only compare the materials’ quality and price, but also think about transportation distance and costs.
1. Raw Materials’ Cost of Organic Fertilizer Production
If the customer owns a livestock farm, he can utilize abundant animal waste to make organic fertilizers. As a result, the cost of raw materials and transportation can be negligible. If not, you’d better to acquire them from the local farms and agricultural waste treatment plants. Due to the fairly cheap prices themselves, you can purchase in bulk.
Generally speaking, you have many options for organic fertilizer’s sources, such as livestock manure, agricultural residues, industrial waste, domestic waste, and urban sludge. However, sometimes you need to add certain amount of nitrogen, phosphorus and potassium substances, as well as the microbial agents to ferment for a period of time. So, it entails additional procurement costs. Certainly, you can use some practical materials to replace microbial agents like rice bran, yeast and sugar, etc.
2. Raw Materials’ Cost of Compound Fertilizer Production
Potassium Nitrate Crystals for NPK Fertilizer Production
Magnesium Sulfate Particles for NPK Fertilizer Production
Powder Potassium Chloride for NPK Fertilizer Production
Compound fertilizer contains two or more NPK elements, such as urea, MAP, SSP, calcium carbonate, KCL, potassium sulfate, etc. We suggest you should buy raw materials from suppliers. This is because the cost of concentrating and extracting them is often higher than the purchase price. Affected by supply and demand, seasons, transportation and other factors, raw material prices fluctuate substantially. Anyway, the specific situation relies on the local marketconditions.
Point 3: What Is The Land Construction Cost To Start A Fertilizer Manufacturing Plant?
To begin with, the most important thing to open a fertilizer plant is to understand the market of the fertilizer industry and own a suitable piece of land. Besides, the plant investment consists primarily of the land price and plant construction cost.
On one hand, land rent depends on the location, such as a vast territory with a sparse population, rural and suburban areas, where the rent is lower. Land rent is a large investment cost that you must research and budget for ahead of time. Besides, you should consider geographical location of the plant from the difficulty of obtaining raw materials, market proximity, transportation costs and so on. A organic fertilizer plant may occupy 800-10,000 m³, while the NPK fertilizer plant has the areas within 500-12,000 m³.
On the other hand, different fertilizer production technologies and processes require diverse equipment and plant construction design. So you ought to make a detailed fertilizer production plan in advance. In general, common factory investment contains 4 parts — material stacking area, production workshop, warehouse (packing workshop) and office. However, organic fertilizer production plants need to increase the fermentation workshop. According to your budget for setting up a fertilizer plant, factory can be normal or simple.
Point 4: How to Reduce Fertilizer Manufacturing Plant Cost?
While setting up a fertilizer plant, labor and energy are the two main cost factors. To lower investment costs, you can take a range of measures to improve fertilizer production efficiency, optimize fertilizer manufacturing processes and reduce energy consumption. Here are some tips on how to save on fertilizer plant costs!
1. Save labor cost of an inchoate fertilizer manufacturing plant!
Firstly, you can introduce the equipment with high automation degree like mobile belt conveyor and SX fertilizer bagging machine. Although they may increase the initial investment of fertilizer factory’s construction, they can improve the productivity of the whole production line and reduce reliance on human labor.
Here is an example! Our customer in India runs a fertilizer plant in with an annual output of 50,000 tons. Besides, it requires approximately 20 workers to operate, including driving, mixing, and packaging. Then, the average annual salary for each worker is $50000.
By introducing our automatic equipment and improving employee skills, it can reduce 50% of workers, resulting in a labor cost savings of about $400,000. He only needs at least 6-10 workers, such as a worker to drive the loader, a worker to blend with additives, two workers to pack finished products, one mechanic and a electrician.
Secondly, you ought to train workers to have a variety of skills, so that one people can be competent for multiple processes, reduce the conversion time between different processes, improving production efficiency. To be honest, our equipment is easy to use. You just need to be familiar with which the buttons control working, stopping and so on. Furthermore, our engineers also guide you how to use.
2. Control energy consumption for lessening fertilizer factory’s cost!
Energy costs become a significant part of a plant’s operating expenses, making the purchase of energy-saving machinery a valuable investment. Primarily, the majority of the fertilizer production equipment (e.g. crusher, mixers, granulators) is driven by electricity that spends less investment in energy and has no pollution.
Moreover, during the organic fertilizer compost process, you can select Shunxin’s crawler type compost turner and moving type compost turner, which are powered by diesel. Because diesel is the cheapest of all energy sources like natural gas, oil, coal, etc.
Additionally, if the production scale allows, the dry granulation for making fertilizer pellets is also an excellent solution can to avoid the drying and cooling process, thereby reducing energy costs.
Despite NPK fertilizer granulation sometimes requires water to make chemical reactions, our engineers can optimize the drum dryer design. For example, we may install the heat recovery system to raise energy utilization efficiency by 20%. Perhaps, the fertilizer plant can serve biomass particles as heat source for higher cost performance.
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