Total Cost of Ownership (Oil Press)
Previously I discussed the considerations for investing in extrusion equipment and the benefits of looking at the long-term total ownership cost. Now I would like to discuss the considerations for calculating total cost of ownership (TCO) of an oil press, which differ slightly from those of an extruder.
When looking various oil presses on the market, other than the quality of material used to build the machine, you also should consider the efficiency of the oil press when removing oil.
For example, extruded full fat soy enters the press with about 18% oil. If the extraction efficiency of the oil press is 65%%, then the meal will have about 6.5% oil, while 11.5% is extracted.
Over the course of a year of production, if an oil press can extract 1.5% more oil (at $900 per ton), there is an additional revenue of over $50,000 depending on how many hours you run in a year.
Efficiency is crucial, as well as dependability and repeatability. Some oil presses on the market extract 65% oil in the first month, but then slip to 60% then 55% extraction. Typically, this is caused by substandard steel material used in construction of the oil press cage, the part of the oil press that produces the pressure that removes the oil from the extruded soy.
If extraction percentage is slipping, the press cage must be rebuilt, which costs money not only in spare parts, but also in lost revenue from being shut down. And finally, what is the estimated useful life of the oil press? This depends on the quality of the steel, ruggedness, quality of motor, bearings, shaft, screws and press cage.
In review, here is a list of considerations when purchasing an oil press:
- The Purchase Price
- Capacity of Oil Press
- Residual Oil percentage in soybean meal after pressing
- Extraction percentage over time
- Downtime and maintenance costs
- Estimated Life of equipment
The key takeaway when looking the TCO is the residual oil level. A high quality, efficient, consistent press may cost more up front, but the ability to extract even 1-2% more oil covers the additional cost of the press even within the first year of use.
Insta-Pro can help you run the numbers so you can see for yourself how the above considerations affect your bottom line. Please contact your Insta-Pro sales representative today and have them run a TCO calculator for you.
