Cost of production

[GeneralStark]

The end game is that I sell plastic for an average of $65 / gallon. And I'd like to be making some form of profit on what I sell.

Now obviously, I'm nowhere near being profitable. I've invested a lot of capital this season and even more over the past 3 seasons.

The whole reason for the post is because including all of my investments over the past 3 years and trying to see how much I'm making (or not) is foolish because I'm obviously not turning a profit. Maybe it's just my way of thinking.

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The reality is that if your signature is correct.......you are not going to make a profit unless you take the syrup you make and do some serious value adding. Been there and done that. Time to scale up if you want to get serious or do it differently.

With 130 taps you could be making 65 gallons a season and grossing over $100/gal. Why aren't you?

[Ivyacres]

In my eyes I'm still a newbie with this my 4th season. Every year I read more and experiment a little to see what works for me. This year I have 230 taps, small by most standards, but addicted by all standards. As I read the posts from those that have gotten larger I sense a point where this becomes more of a business and less mom and pop. I don't know what that number is but for me I think it seems around 1000 or two. I may be all wrong, but the money that needs to be invested and time tapping, land and so on seem to take it past just fun. I'm thinking about buying and going big (10 - 20 thousand taps) for something to do in retirement. I just want enough to keep me in the woods and out of my better halfs hair. Selling enough to keep going and not rob the retirement. Thank You to all of you that share your experience and wisdom I appreciate it!

[Michael Greer]

One of the best things about maple syrup is that you can start up at any level. My first year we borrowed 40 buckets and hauled to a friend's evaporator. The syrup we took home that year was enough to keep the family happy, AND enough to buy the gear to expand to 70 buckets the following year. For our first five years, we followed that pattern...spend whatever profit to expand the next year. I've never had any money to play with, and find it very entertaining that this business grows itself...as long as I'm willing to be the laborer.
In year six we decided to start a business. We bought an evaporator, built a sugarhouse, and got cosy with the tax forms. This year, at 450 buckets, I'm outgrowing some of my equipment, and there will be some labor saving improvements before next season. The coolest part is...it looks like I'll be able to afford to do them. I still don't have any money to play with, but I have converted my labor and some sunshine into a very nice building and machinery (not to mention all that lovely syrup). I could have probably made more working at WalMart, but I'd have died of boredom by now.

[Michael Greer]

General Stark, "With 130 taps you could be making 65 gallons a season and grossing over $100/gal. Why aren't you?"
You lost me in the translation...What did you mean to say?
My reading shows a range of 1/4 to 1/3 gallon of syrup per tap, and my region will tolerate $50 to $75 per gallon.

[spud]

I think some of the numbers being thrown out are a bit of a stretch. To think your going to get a .5GPT every season is silly. Making $100 a gallon can be done on a small scale but there is only so much you could sell at that price.

Spud

[Super Sapper]

On vacuum you can get up .5 gal/tap for 65 gallons on 130 taps. Making value added products and selling them gets a return of over $100/gallon.

[Diesel Pro]

All you can do is start tracking hours, and expenses. Break the expenses into consumables and equipment. Equipment does not cost face value, only the depreciation or maintenance. At the end of the season do the math. I'm sure that youwill find that it varies year to year, but at some point you should get an idea.

Wish I could get $65 a gallon. I see $20 per 1/2 gallon and I think the Amish are even less. Pretty dark stuff, but...

[TheMapleMoose]

I downloaded a spreadsheet from Ohio State university(?) that I modified a little to fit our needs. It's not perfect but gives us a general idea on our cost of production.

https://aede.osu.edu/research/osu-fa...gets-2009-2001

Under their 2010 budgets they have an xls version of the spreadsheet, that's what I used as a base to start with. If you want a copy of mine, pm me your email and I'll forward it to you

[SPILEDRIVER]

did you read my journal? that sure sounds like me...probably most of the serious ones on here as well lol

One of the best things about maple syrup is that you can start up at any level. My first year we borrowed 40 buckets and hauled to a friend's evaporator. The syrup we took home that year was enough to keep the family happy, AND enough to buy the gear to expand to 70 buckets the following year. For our first five years, we followed that pattern...spend whatever profit to expand the next year. I've never had any money to play with, and find it very entertaining that this business grows itself...as long as I'm willing to be the laborer.
In year six we decided to start a business. We bought an evaporator, built a sugarhouse, and got cosy with the tax forms. This year, at 450 buckets, I'm outgrowing some of my equipment, and there will be some labor saving improvements before next season. The coolest part is...it looks like I'll be able to afford to do them. I still don't have any money to play with, but I have converted my labor and some sunshine into a very nice building and machinery (not to mention all that lovely syrup). I could have probably made more working at WalMart, but I'd have died of boredom by now.

[bowtie]

I am going to honest with any newbie, if you are doing to make lots of money you had better start with lots. Unless you have the land already, most any small scale operation will not " make" money.with evaporator, new 2x6, $5500-$6000,tanks, tapping supplies, cost to operate equipment, disposable yearly items, and other supplies, you will likely have 10k, now say you sell for$60 gallon, you will need to sell 135 or so gallons to break even, in some area maybe that's achievable for a beginner, but if you are like most and live in area saturated by producers, good luck. Then let's talk upgrades, like ro's,bigger evap, vac systems, bigger sugar house, candy machines etc, etc. look, I am small and sell maybe 15 gallons year to friends and family,and I have an easy $12-14k in it, easy. To me unless you can strike the retail sales rich, the only way make me eye is to start fairly large and expand quickly and sell bulk. I would love to sell 50-75 gallons a year retail, but where I live there are lot of producers that give their syrup away to people they know and then the Amish who gets tons of sales from "city" people because they love the novelty of buying from them. Not to mention a couple of pancakes houses and restaurants that sell tons of syrup. It is a tough row to hoe. It can be done, don't get me wrong but we should have started 20 years. I am expanding next year and hope to be at a few thousand taps in the next five years but under no pre-tense do I think I am going to make "lots of money" .maple syrup producing is one the fasted growing hobbies in the northeast, the New York conservationist magazine stated in the last 10 years New York states production has gone up 2 1/2 times. If you can start with 75-100k capital you have shot. If you want to make a few hundred to few thousand a year doing something you enjoy then you have the right hobby, if you want to do this as your main line of employment you should probably pick a different pastime. Not being a downer just putting it out there honestly.