The Cost to Set Up a Wheat Flour Mill Plant

cost to set up a wheat flour mill plant

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Setting up a plant for manufacturing or processing wheat is a lucrative measure to generate revenue. However, the amount of money required to set up such a wheat flour mill plant may be abnormally huge. This depends on the location of the plant’s site, availability and costs of raw materials, labor, workshop, and land among many others.
 
60TPD Wheat Flour Plant In Algeria
60tpd wheat flour plant in algeria

Cost of Raw materials

The most important raw material for a wheat flour plant is wheat. The cost of this commodity may vary depending on various factors. For instance, the quantity demanded and the type and value of wheat can make the costs vary greatly. Moreover, locally or internationally outsourced wheat can vary in prices. Therefore, the most important thing is to determine the needs of the plant in terms of the factors before determining the exact values. Some of the other things that can make the prices vary are oil and gold prices, currency exchange rates, and weather conditions. Depending on the quality of wheat, the prices can range from $250 to $300 or even above per unit.
 

Equipment Cost

The cost of the wheat milling equipment is determined by the type of the machines and their qualities among many other factors. Those machines and equipment that are of high quality and efficiency may be costly. However, their work may prove useful because the maintenance costs may be minimized. There are many kinds of equipment and material required in setting up a plant. This may include building structures to house the mill machinery. The most important equipment is the milling machinery. The cost of this equipment may be determined by the milling capacity. For instance, the Automatic wheat mill machinery may cost between US $19000 and $1448000. However, there are others that are either cheaper or expensive. (Start a small scale flour milling business>>.)

Land Costs

Land is an appreciating commodity. The cost of land just like the labor costs may depends on various factors. For instance, land in the towns and cities are more expensive compared to that in the rural. For instance, the Amazon bought land worth $4,300 per acre in a non-developed area. However, land can cost $196,400 per acre or more in some areas in the US. In addition to this, the cost may be so huge if the wheat flour mill plant intends to sit on a huge piece of land.

Labor Costs

Just like the raw materials, the size of the plant and the production capacity can influence the labor costs. The plant requires both skilled and unskilled labor. Skilled labor is costly because paying a professional and skilled technician is not a joke. However, the costs of unskilled labor may be equally huge because these staffs may take the majority of the workers. The rates of payment vary from one country to the other. Depending on the production capacity of the wheat flour plant, the costs may be even up to one third of the targeted revenue before tax. The most important thing is to know the number and caliber of staff required for the wheat flour plant to achive its set goals and objectives.
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