Total Cost Analysis

Light bales yield lower profits for producers and higher costs for end users.

Requires producers to charge an additional $49.95 / ton, just to break even with inefficiencies of light bales.

Comparing the total cost of Shipping, Handling, and Storage of 1,000 tons of hay in 40lb x 35” and 70lb x 42” small square bales.  Same amount of hay (1,000 tons).  Same 21 bale bundle.  Different bale size and weight.

Shipping

Bale Weight (lb)

Length (in)

# of Trucks

% Higher Cost

Shipping $

70

42

45.4

 $    51,020.41

40

35

66.1

45.8%

 $    74,404.76

Difference =

 $    23,384.35
53′, 102″ dry van trailer.  500 mile trip.  Cost / mile = $2.25.  Qty of trucks based off bales / load and 1,000 tons to ship.

 

Handling

Bale Weight (lb)

Length (in)

# of Bales

# of Bundles

% Higher Cost

Handling $

70

42

28,571.4

1,360.5

 $         5,442.18

40

35

50,000.0

2,381.0

75%

 $         9,523.81

Difference =

 $         4,081.63

Assuming cost to handle 1 bundle 1 time = $1.00.  Handling $ includes 4 handlings:  (load in field, unload in storage, load on trailer, unload trailer)

 

Not only will the Bale Band-It eliminate the manual handling, it also reduces the number of handlings that the light bales require.

Storage

Bale Weight (lb)

Length (in)

Sqft Require

% Higher Cost

Storage $

70

42

 $                9,523.81

 $    23,809.52

40

35

 $              18,518.52

94.4%

 $    46,296.30

Difference =

 $    22,486.77
Stack height of 70 lb bales = 4 bundles.  Stack height of 40 lb bales = 3 bundles.  Cost / sqft = $2.50 / sqft

 

Inefficiency Costs of Light / short bales
Additional Shipping Costs

$23,384.35

Additional Handling Costs

$4,081.63

Additional Storage Costs

$22,486.77

Combined Cost

$49,952.76

Tonnage costing based off

1,000

Additional $ / Ton

$49.95

Let the Bale Band-It get you out of the Red!