Hog Manure Management by ATD Waste Systems Inc.

Statistics Canada 2001 Census of Agriculture reports 7,263 hog farms in Canada of which 7,116 of them fall into the 10,000 to 12,000 herd size. These estimates are based on an 10,000 place grow to finish operation in South Eastern Manitoba. However, one size does not necessarily mean it fits all. The ATD solution will benefit those operators whose current waste management practices can be improved in the areas not only of cost, but of water conservation, odour reduction, land availability, crop nutrition and business opportunity. All of these factors must be taken into account if we are to have a successful installation and ATD stands ready to work with interested operators to see if they can justify in terms of conversion, expansion or new construction.

Economic viability is dependent as always, on market conditions, manure analysis and economies of scale. Larger operations will do better than smaller ones. Expansions on a current land base will therefore be attractive.

You will be eliminating a manure recovery cost center in favour of an investment in a new fertilizer manufacturing business. This vertical integration and diversification places a safety net under hog market prices. Revenue can be affected by the price of greenhouse gas credits as well as the volume available for sale. In Canada, the government has opted for a "Made in Canada" approach that significantly lowers the volumes of emissions as well as an uncertain market price (I have set it at the Canadian cap of C$15 /tCO2e). Elsewhere, volumes are calculated using IPCC defaults and prices are based on current London trading of Eu 23.5 /tCO2e. So, capital budget estimates for a 10,000 place grow to finish facility are in the area of C$5 million with payback in Canada less than 11 years and in Europe about 5 years. For a 20,000 place finisher it comes to about C$7.5 million with payback in Canada about 7.5 years and in Europe less than 4 years, excluding interest and any value added benefits. This capital outlay sounds like a lot but remember there are four sources of revenue. That revenue comes from: 1. Sale of surplus fertilizer. 2. Sale of greenhouse gas remission credits 3. Elimination of current manure recovery costs. 4. Avoidance of future manure recovery costs. These four cash flows and the tangible results from the value added benefits I spoke of earlier will turn a manure recovery cost center into a profit center.

Key trends indicate improved payback in the future. Greenhouse gases are forecast to increase in Europe as various trading systems come into play over the next few years. Nitrogen is linked to natural gas prices causing increases in fertilizer values. Manure management costs are increasing — compliance, water, power, phosphorus loading, litigation, lost business opportunity.

Legend

ATD Manure Treatment Step-by-Step

Economic Viability


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