Mini-plant economics

Raw material → product: yield, costs, processing margin

Parameters

On-farm processing — milk to cheese/yogurt, grain to flour, berries to dried. Cheese yield from milk ~10–12% (8–10 l per kg), yogurt ~90%. Processing margin = yield × product price − raw material − plant costs. Threshold: minimum volume for equipment payback. Own raw material's opportunity cost (selling it raw) is also a cost — count it honestly.

Shift economics

Product
55.0 кг
Revenue
24 750 грн
Raw cost
6 000 грн
Processing margin
16 250 грн