If you want to succeed in the pellet mill industry, one of the quickest ways to ensure profitability is to make them on a large scale. The bigger plant you have, it will be easier to reduce the cost of operation and production per ton. By applying this theory of economic scale, it also means you can reduce the number of labors per ton. In addition, by using automated equipment, you can leave the packaging process to robot. Should you jump blindly on the bandwagon of the pellet mill ton capability to get as many profits as you can? Is there any potential financial danger in creating a large pellet mill plant?
It won’t be hard to maintain the success of your large pellet mill plant – provided you can make sure that the raw materials can be delivered and prepared in a constant manner. This will decide your price point and how you can be competitive compared to other plants. If you have a large pellet mill plant but only running it less than its full production capacity –you are running it at a loss. Another thing to keep in mind is that you need to make sure you have the market to sell the pellets to. In some cases, big plants try to ship their products worldwide to get customers – but this just means more transportation cost.
The solution to the potential problems above is to create a modular pellet that can be easily moved between one location and another. You will still be able to produce pellets in large amount. On top of that, you can move the plant closer to the location of your raw materials should the need arise. There you have it – the truth about pellet mill ton capability and how bigger is not necessarily always better.