Cost of production

[acafro]

I am curious if anyone has determined how much it costs them to produce a gallon of syrup and if so the style of formula you used. previously I have just ball parked my cost of production but would like to be a bit more accurate with my numbers. I have looked through the business side of thing through the 2014 posts with no help and really don't feel like re-inventing the wheel.

Thanks!
Adam

[Michael Greer]

That's a lot of folks don't really want to think about. It cost about $30,000 to make my first gallon several years back, and they get cheaper every season. Then there's the whole labor question. It took me 15 hours one day last week to make 10 gallons, but my tax form doesn't show any "cost of labor" because I don't have any employees. Lots of labor though.

[Maple Man 85]

As Dr. Evil said... ONE BILLION DOLLARS hahahaha Unless a producer is leveraging equipment such as an RO, tubing and proper sized equipment so you're not boiling 16 hour a days and collecting another 4 the cost of labor and time spent for a small producer 500 taps or less isn't justifiable from a business perspective. From a profit margin perspective when you consider that profit margins simply are not high enough. Hobby producers make syrup for the sheer joy of making syrup. We see cash in pocket from syrup sales but if we actually paid ourselves we'd make probably $5 an hour or less.

[Wanabe1972]

Sad part is I would give up my 30 dollar an hour job to make 5 dollars an hour to make syrup. The problem is its hard to live on 6 weeks pay a year. I have bought all new this year so so far it has cost me 350.00 to
make a gallon not counting labor. Wait a minute, why am I doing this?

[acafro]

Ha, I get it. I was more so refering to time / wood / electricity.

Other items such as bottles, glass would be cost of goods. Tubing, taps, pumps tanks, and equipment would all be capital items, not necessarily cost of production.

Didn't know if anyone has done it that way

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[Michael Greer]

On the other hand, I'm on track to make about $7,000 worth of syrup this year. I'm an old retired fart, and just entertaining myself with this hobby. I don't think I'd see that kind of cash flow from an electric train set.

[DrTimPerkins]

It depends upon many factors, size is one of the largest drivers of cost. A lot of information at:

https://blog.uvm.edu/farmvia/?page_id=394

[johnpma]

I think if you are looking at profit margin then you need to consider all factors from cutting wood to labeling your bottles and all in between! My guess is less than $4.00/hr Think of the amount you Need to invest before you even make a cent!!! I don't know anyone that is doing this or any form of farming to become rich!!

My guess is you'd have better luck with a scratch ticket if you are looking at a extremely high level of income!!

That said my wife is selling our 8.5 oz bottles at an average of two per day......and everyone has come back with a smile on their face and compliments on how tasty the syrup is! I have said it before here, my great grandfather was a large dairy farmer he wasn't rich but survived 93 years farming......

[acafro]

It depends upon many factors, size is one of the largest drivers of cost. A lot of information at:

https://blog.uvm.edu/farmvia/?page_id=394

Thanks Dr. Perkins



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[acafro]

I think the majority of people are missing my point. And / or don't understand the question.

There are many different divisions of costs from an accounting stand point. Take a look at a ballance sheet, cost of production is just one of the many. All of the parts come together to make a return on profit schedule (or break even point). There are many moving parts.

If I was to sit down and figure how much I've spent then yes, It's somewhere I'm in the area of $1000 to make a gallon. I'm not looking to make a million selling syrup. No way no how, but I also don't want to be throwing out $45 dollars in every gallon I sell.

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