Typical Cost Analysis

FFS Pellet Systems can offer wood pelleting plants with outputs from 100kg to 1000kg per hour. However, if intended for commercial production, automation is crucial for maximum return on capital investment. A typical automated plant normally requires approximately 2-3 hours operative attention within an 8 hour working cycle.

Experience tells us that the cost of producing 1 ton of wood pellets is approximately £22 - £30 (excluding labour). This includes electricity consumption at 10p/kwh, cost of additives and an allowance for consumables such as pellet dies and rollers etc. If the plant can be run on economy night time rates, cost reduces to approximately £12 - £20 per ton.

NOTE! These estimates exclude operator, raw material, capital recovery and building overhead costs. See separate pay-back analysis.


Current capital cost of 250kg per hour plant including installation, wiring, commissioning and operator training = say £85,000

Annual production based on 40 hour week (1 shift) x 45 weeks = 450 tons

Annual production based on 40 hour week (1 shift) x 45 weeks = 450 tons
Average sale price (ex-factory) per ton of A grade pellets £190
Manufacturing cost per ton (day shift) £26
Typical labour cost per ton (@£10 per hour) £15
Capital cost recovery per ton (5 year write down) £45
Typical building overhead per ton £15
Typical total manufacturing cost per ton £101
Net profit per ton £89

Note: Cost per ton of suitable raw materials should be deducted from net profit figure, or added to profit if a negative cost can be achieved by relieving the supplier of costly landfill charges.

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Farm Feed Systems was established in 1999 originally concentrating on the provision of Animal Feed Mills to farmers and specialist feed manufacturers throughout the world. The company continues to manufacture and support these products.

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Foxes Bridge Road, Forest Vale Industrial Estate
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Tel: 01594 825106

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