[Terrapreta] marketing barbecue charcoal
Tom Miles
tmiles at trmiles.com
Mon Jan 14 00:45:26 CST 2008
Gerritt,
Useful information. The producer is getting less these days. But these costs
apply to the retail mix or "black magic" market. If you are a producer you
want to reach those markets. If you are a consumer you want the lowest cost
charcoal possible.
Here the retail price can be $1/lb ($2000/ton). That means the producer can
deliver it to the Wholesaler at $0.35/lb($700/ton). Why bother with an ag
market that might be able to afford only $0.10/lb($200/ton)? Because the
high value market exists I don't think we'll see traditional charcoal
producers making a wholesale ag product unless it is a surplus.
If we go back to the smoldering trash heap model of terra preta (e.g.,
"terra preta is full of broken ceramics and organic debris with a high
charcoal content and evidence of concentrated nutrient recycling from
excrement, organic waste, fish and animal bones.") we might be able to make
something a grower can afford.
Tom
>From my inquiry into charcoal marketing, I go the following response from
an importer of charcoal into Canada:
"As for costs - the following breakdown - if you look in the stores at say
Royal Oak or Cowboy at a 10 Kg bag it is composed like this:
>The retailer gets around 40%
>Distributor/ wholesaler 25%
>Producer (delivered to Distributor) 35%
>If a 10 Kg bag of Royal Oak retails for $15.00 the wholesale cost work out
to round $5.25 per bag or $525 per ton if you take shipping etc out of the
equation you >can not produce for more than $300.00 per ton to be
competitive.
>Gerrit
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