Friday, Apr 13, 2007 at 09:45
Pepper
Just because it grows on trees it doesn't mean it's cheap.
Each mature tree produces about 40-60 litres per year. So an average person would use about 2 trees a week (more when touring). That's 104 trees to keep you self sufficient. They mature after 4 years and you need 400 trees to start with and cull them over the years to leave only the 104 good ones, (from which you make more).
So, there's the cost of the land, irrigation, herbicide, insecticide, labour during initial 4 years, mainatance, oil cultivation and processing, and the tax man will also slug you his share as with bio-diesel.
Now, although each tree may give 50 litres per year, I don't think it's all in one go. More then likely, it will be one litre per week per tree. So to collect your fuel for the week you'll have to tap into all 100 trees EVERY WEEK then do the processing if it is needed.
If you can do all this for under $1 a litre you'd be doing very
well.
I am guessing that for this to be profitable you would need to have a massive operation, like a few thousand trees and this would be your full time job.
Money may grow on trees but it's more likely to be 1c coins then $100 bills.
R.
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