Economic Analysis of Composting Crab Processing Waste

Abstract

A study of composting crab processing waste (CPW) was performed to identify a cost-effective alternative to landfilling. If CPW could be economically recycled into a useful value-added product, the waste would not have to go to landfills, and could be sold commercially to the landscaping and nursery industries. Economic models of three systems were constructed and analyses performed using a variety of investment and operating costs. To ensure robust model analysis, several factors of the cost components were varied. The equivalent-uniform-annual-costs were used to compare the alternatives, Ag-Bag, windrowing, and landfilling the waste. Profit analysis was also performed for each of the proposed systems. The average annual cost for the processes of Ag-Bag 1, Ag-Bag 2, and windrowing was $62,903, $73,796, and $53,533 respectively. While none of the methods analyzed were profitable, windrowing results in the smallest loss of $−0.066/kg ($−63.08/ton) for all economic models considered, followed by Ag-Bag 1 with an average loss of $−0.107/kg ($−100.18/ton) and Ag-Bag 2 with an average loss of $−0.117/kg ($−109.80/ton). Although having the least loss, windrowing has drawbacks such as offensive odors. A sensitivity analysis to determine how much additional throughput would have to be utilized to create a profit was performed. This analysis found that the windrow system is the only system capable of ever garnering a profit, with a total throughput exceeding 1,003 tons/year. Under current market conditions, composting CPW by one of the systems described herein is not feasible.