Increased profits through
31% reduction in energy consumption
Dave Donovan and Lewis J. Staats
November 17, 1988
Energy
remains one of the largest expenses facing the maple producer. In 1979,
when #2 fuel oil cost 49.5 cents/gal, wood cost $40/cord and LP gas
cost 50.5 cents/gal, over 40% of cost of producing maple syrup was directly
attributed to the expense of energy (Huyler and Garrett, 1979*). In
other words, for every dollar spent to produce a gallon of maple syrup,
40 cents was spent on energy.
Today, these expenses
have increased, in some cases by as much as 50 to 100%. Number two
fuel oil can cost the maple producer 84 cents/gal, wood ranges from
$60 to $75/std. cord regardless of who cuts it, and LP gas can be
as much as $1.03/gal. Although trustworthy figures on the cost of
producing maple syrup are difficult to obtain, it is a safe bet that
energy remains one of the leading expenses. In the state of New York,
Cornell University Cooperative Extension in cooperation with the New
York State Energy Office have initiated the Small Business Energy
Efficiency Program (SBEEP) to assist all small businesses with managing
their energy expense.
Success
of the SBEEP
Initiated
in the 1988 production year, technicians of the SBEEP performed 15
energy surveys of which 11 received efficiency recommendations. In
the opinion of the technician, the remaining four producers were maximizing
energy efficiency with current equipment and procedures. Implementation
of all energy efficiency recommendations would result in an average
potential energy savings of $641/year per producer. This is a reduction
in energy costs of over 31%. At $32/gallon of syrup, it means producing
20 less gallons of syrup per year to obtain the same profits. This
would result in six less hours of evaporation at 150 gallons per hour
plus less time collecting, tapping, and other labor intensive tasks.
A sample of the
recommendations cited by the certified energy technician are listed
below.
| Recommendation |
Number
of Times Recommended |
Average
Annual Savings |
Average
One-Time Cost to Implement |
Payback
Period (Yrs.) |
| Increase
Combustion Eff. |
8 |
$
155 |
$
53 |
0.3 |
| Install
or Upgrade Current Sap Pre-heater |
4 |
$25 |
$66 |
2.6 |
| Install
Piggy-back or Economizer Units |
3 |
$1,225 |
$7,007 |
5.7 |
| Install
Reverse Osmosis Equipment |
1 |
$1,890 |
$14,000 |
7.4 |
Recommendation
Cost and the Payback Period
Some
of the recommendations require a substantial investment to implement
and have relatively long pay back periods. This was designed into the
program deliberately. Using conservative energy saving estimates and
the highest prices for maple production equipment an estimate of the
longest payback period can be determined. This calculation process should
give the maple producer a conservative estimate of the time an energy
improvement modification will take to pay for itself. The amount of
savings and length of pay back for an individual operation is also dependent
on the amount of work a producer contributes to the retrofit process,
negotiation of the price with the dealer/supplier, and trade-in value
of used equipment.
The type of recommendations
made is dependent on the size, conditions, marketing techniques, interests,
and goals of the producer. For example, the reverse osmosis recommendation
was not made unless the producer request specific information on it,
the operation meets certain size limitations and energy characteristics
(i.e. electric power has to be available), or large savings can be
obtained.
Questions
About the SBEEP
Many maple producers
in New York question the applicability of SBEEP to their operation
since they utilize wood as the energy source. The initial energy efficiency
recommendations were designed for the producers who used oil, LP gas,
or natural gas. Because of the availability of energy efficiency standards,
the uniformity of the fuel, available consumption information from
the producer, and the ability to control the combustion process it
was much less time consuming to develop the SBEEP for these producers.
However, in the
future, efficiency re commendations for those operations that utilize
wood as the fuel source will be developed. The lack of available in
formation may result in some delay, and for accurate application of
these re commendations, more complete consumption and production records
will have to be kept by the maple producer. In other words, the producer
will have to know the amount of wood used to concentrate the maple
sap, as well as the cost in terms of dollars or time required
to prepare the wood for use and labor to handle and concentrate the
sap.
Conclusion
Maximizing
energy efficiency is one of many aspects of the maple production facility
that should be closely managed. Sugar bush management, tree tapping,
sap collection techniques, and product marketing procedures should
be evaluated carefully to ensure maximum profits in a healthy and
expanding industry.
*
Huyler, Neil K. and Laurene D. Garrett. 1979. A Cost Analysis: Processing
Maple Syrup Products. Forest Service Research Paper NE-430. USDA Forest
Service, NE Forest Experiment Station, Broomall, PA. 6pp.
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