Some information about capital costs in the ethanol industry is now available because the results of a recent USDA Cost of Production Survey are now available [4]. The capital cost and capacity data of the firms in this survey are used for a statistical estimate of the capital costcapacity relationship.
There are two technologies in the ethanol industry. Most existing dry mills are small, with capacities range of 5–30 million gallons per year (MGY). However, dry mills constructed during the current expansion are from 40 to 100MGY of capacity. Dry mills produce one composite byproduct; distillers dried grains (DDG) contains the residual protein, oil and fiber after the carbohydrate is removed for starch processing and ethanol production.
The wet mills of the United States tend to be larger. The capacity ranges from 50MGY and up
to 330MGY. Wet milling is a more complex technology; the byproduct is separated into corn gluten feed with about 20% protein, corn gluten meal with about 60% protein, and edible oil.
Many wet mills of the United States are also multifunctional, with a ...
The process by which high fructose corn syrup is made is complicated. To start, ordinary corn syrup must be obtained. Then, enzymatic processes increase its original sweetness. To produce the basic un-enhanced corn syrup, wet milling is a commonly used technique. Wet-milling includ...
In order to analyze the financial position of Calaveras Vineyard, as mentioned in the "Financial Forecast Method and Assumptions" section, Proforma Income statement and Balance sheet was compiled using the assumptions mentioned in the previous section. We use the weight of products and the comparable companies’ unleveled beta to calculate the cost of capital. Using these assumptions, WACC was determined to be 16.1% .
Another key issue is the high tax rate on alcoholic drinks if they produce more than 50,000 hectolitres. If the company keep growing, they cannot control their production under 50,000 hectolitres in the long term. Therefore, the high tax rate cannot be avoided and the tax will have a big impact on the profitability of the company since they were paying only one-10th of what large beer enterprises pay.
Currently, there is an opportunity for owning a Coors Distributorship in the southern Delaware counties of Sussex and Kent. Coors is a well-known brand name nationally, and retailers in the targeted area are willing to carry the product, which is an indication of pre-existing brand awareness and demand for Coors. It was necessary to obtain a feasibility study to project a possible profit or loss and $800,000 dollars will be needed for the initial investment. We believe the following decision criteria should be embraced by Larry to make his decision.
Tyner, Wallace. “The U.S. Ethanol and Biofuels Boom: Its Origins, Current Status, and Future Prospects.” BioScience. August 2008. Vol 58 (7):646
Do the gas prices frustrate you every time you pull up to the pump? Gas companies are charging too much for the natural resource that is turned into what we know as gasoline. Gas companies discourage research and new ideas every year. Afraid of losing the market that they have cornered they buy patents. This way the patents will never be used and they still have the market cornered. Ethanol is a much safer and more economical solution to our gas problem. It is cleaner burning and it can be produced from year to year. Ethanol will allow the United States public to get away from the corruption of big gas business and finally be able to enjoy better prices at the pump. The gas companies do not need to be relied on any longer. The United States public should use ethanol. The economic help would be tremendous. It creates jobs, lowers gas prices, and reduces imports of oil to the U.S.
The joints were greased well to prevent vapor loss. 15 mL of the sample used and two boiling chips were placed in the distilling flask. The flask was heated with a hotplate in an oil bath. In separate, numbered, and calibrated test tubes, 0.5 mL of the distillate were collected while the temperature was recorded when each fraction was collected. The distillation was stopped when the temperature reached above 90˚. The set-up was cooled and the remaining liquid in the distilling flask were poured into a graduated cylinder. The volume was recorded. The temperature reading versus the volume of distillate were now plotted. The percent ethanol was computed.
The production of beer by Coors was more costly than other companies; this is because they canned most of their beer unlike other companies although bottles were cheaper than cans. They also had a longer brewing cycle than other companies this increased their capital. Coors aged its beer for 70 days compared to an average of 20-30 days for other brewers. This increased the costs of the beer when Coors did a national roll out. They had a competitive advantage since they had a limited distribution area but as it increased their competitive advantage reduced as compared to other major brewers.
A lot of capital is needed to enter this industry because there are large capital costs needed for manufacturing. Bottling, distribution, and storage could be contracted out, but it would likely increase costs in the long run and weaken the supply chain.
Secondly, the use of biofuels is not a cost effective option as they are more expensive than fossil fuels. According to the County Commissions of the US Department of Agriculture and North Dakota State University, there are around seven biodiesel producers in the US. Biodiesel is the mix of biofuel and diesel in 20:80 ratio, which means that the cost of biodiesel will be around 20$ more ...
Based on the data obtained, Table 1 demonstrates that when obtaining the percent recovery of ethanol, 25% ethanol was obtained. This represents a relatively good percent recovery because ideally about 30.1% ethanol should have been produced. According to Chemspider, the density of ethanol is 0.8 g/〖 cm〗^3 and the density of water is 1.00 g/〖 cm〗^3. Therefore, all of the densities present in Table 1 may be incorrect due to a variety of reasons, such as incorrectly recording the mass or volume of the product. The volume could have been perceived as a different number because perception varies from person to person. However, the data results make sense because none of the densities reported were below 0.8g/〖 cm〗^3 or higher than 1.00 g/〖 cm〗^3, therefore, the data results were relatively accurate, but probably contained impurities.
"Vignette 4 Bioprocess Engineering for High-Volume Products: The Case of Corn and the Wet-Milling Industry." Putting Biotechnology to Work: Bioprocess Engineering. 1992. 27-29. The National Academic Press. 25 July 2006 .
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
Maize also has uses beyond being used as a food source or being turned into oil. Maize’s main use is for food, but it can be used in creative ways. For example the popped kernels of maize, commonly referred to as ‘popcorn’ is seasoned and coated in different ways in order to make the ethnic foods of Vietnam and Peru. Corn is also used to create basic alternative medicines and herbal supplements using the corn silk, but this use is not often capitalized on. The starches from maize are a major source of material for products like plastics, fabrics, and adhesives. Also a by-product from the maize ‘wet milling’ process called ‘corn step liquor’ is of a major use to the biochemical industry because it is a perfect culture to grow many kinds of m...
...her combination of intoxicant. There are several better plants to use, sugar cane and algae all produce far more ethanol than corn does. Keep in mind that running on electric sometimes is better than running on gas all of the time, But to see for yourself go down to the car dealership and ask for yourself.