A | B | C | D | E | F | G | H | I | J | K | |
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2 | Cost Difference Between Aqauponics and Hydroponics w/o Selling Fish | ||||||||||
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4 | Assumptions | Aquaponics | Hydroponics | Notes | |||||||
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6 | Capacity toggle | To achieve the same net income as a hydroponic system, an aquaponic system must achieve a % of yield that is sold that is higher by however much more its operating costs are than a hydroponic system's. | |||||||||
7 | % of yield that is sold | 81.9% | 80.0% | ||||||||
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9 | Revenue assumptions | ||||||||||
10 | Total greens yield (lbs / year) | 2,000,000 | 2,000,000 | Based on Aerofarms' projection for Newark Facility | |||||||
11 | Revenue / lb greens yield ($$ / lb) | 6.40 | 6.40 | Assumes 50% retail markup on packaged salad sold $3.99 / 5 oz. | |||||||
12 | Total revenue ($$ / year) | 10,483,200 | 10,240,000 | ||||||||
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14 | Cost of Goods Sold assumptions | Additional labor is for feeding fish and equipment cleaning and maintenance. | |||||||||
15 | Additional aquaculture labor ($$ / year) | 55,000 | 0 | ||||||||
16 | Fish feed or nutrient cost ($$ / lb greens yield) | $0.06 | $0.02 | ||||||||
17 | Total fish feed or hydroponic nutrient cost ($$ / year) | 129,188 | 33,279 | ||||||||
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19 | Overhead cost assumptions | ||||||||||
20 | Ground s.f. devoted to aquaculture or nutrient reservoirs (s.f.) | 8,157 | 7,136 | Hydroponic facilities require nutrient reservoirs while aquaponic facilities require fish tanks and additional take for biofiltration. The different space requirements for these two requirements are reflected here. | |||||||
21 | Ground s.f. devoted to growing (s.f.) | 31,161 | 31,161 | ||||||||
22 | Ground s.f. devoted to post-harvest processing (s.f.) | 31,161 | 31,161 | ||||||||
23 | Facility ground s.f. (s.f.) | 70,479 | 69,459 | ||||||||
24 | Rent ($$ / s.f.) | 10 | 10 | ||||||||
25 | This number covers all additional opearting expensives, including raw materials, labor, utilities, and overhead - that is common to both hydroponic and aquaponic farms. Gotham Greens projected a "greater than 15% EBITDA margin" in their analysis for their first farm, and so we use a 15% EBITDA margin as our benchmark to get to $8 million: https://www.nyserda.ny.gov/-/media/Files/Publications/Research/Environmental/Gotham-Greens-Sustainable-Urban-CEA.pdf | ||||||||||
26 | All non-variable costs (costs that similar in AP vs. HP) | 8,000,000 | 8,000,000 | ||||||||
27 | Includes utiilities, growing medium, seeds, packaging, merchandising, delivery, labor, and additional farm supplies | ||||||||||
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31 | Net Income | $$ | as % of revenue | ||||||||
32 | Aquaponics | Hydroponics | Aquaponics | Hydroponics | |||||||
33 | Revenue | 10,483,200 | 10,240,000 | 100.0% | 100.0% | ||||||
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35 | Cost of goods sold | ||||||||||
36 | Aquaculture labor | 55,000 | 0 | 0.5% | 0.0% | ||||||
37 | Fish feed or nutrient cost | 129,188 | 33,279 | 1.2% | 0.3% | ||||||
38 | Overhead costs | ||||||||||
39 | Rent | 704,791 | 694,590 | 6.7% | 6.8% | ||||||
40 | Total variable costs | 888,979 | 727,869 | 8.5% | 7.1% | ||||||
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42 | Non-variable costs | 8,000,000 | 8,000,000 | 76.3% | 78.1% | ||||||
43 | Total operating costs | 8,888,979 | 8,727,869 | 84.8% | 85.2% | ||||||
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45 | EBITDA Margin | 1,594,221 | 1,512,131 | 15% | 15% | ||||||
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