• TABLE OF CONTENTS
HIDE
 Title Page
 Center information
 Acknowledgement
 Table of Contents
 List of Tables
 Summary
 Introduction
 High-cost alligator farm
 Low-cost alligator farm
 High-cost alligator feedlot
 Alligator hatchling enterprise
 Conclusion
 Costs, labor requirements, and...
 Costs, labor requirements, and...
 Costs, labor requirements, and...
 Costs, labor requirements, and...






Group Title: Industry report - University of Florida, Florida Agricultural Market Research Center ; no. 84-3
Title: Budgets and financial analyses for various alligator enterprises a report
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Permanent Link: http://ufdc.ufl.edu/UF00026920/00001
 Material Information
Title: Budgets and financial analyses for various alligator enterprises a report
Series Title: Industry report
Alternate Title: Alligator enterprises
Physical Description: vi, 68 p. : ill. ; 28 cm.
Language: English
Creator: Dodson, D. L
Degner, Robert L
Florida Agricultural Market Research Center
Publisher: Florida Agricultural Market Research Center
Place of Publication: Gainesville
Publication Date: 1984
 Subjects
Subject: Alligators -- Breeding   ( lcsh )
Reptile culture -- Florida   ( lcsh )
Animal culture -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: by D.L. Dodson and R.L. Degner.
General Note: "July, 1984."
 Record Information
Bibliographic ID: UF00026920
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000554265
oclc - 13378495
notis - ACX9099

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Table of Contents
    Title Page
        Title Page
    Center information
        Unnumbered ( 2 )
    Acknowledgement
        Page i
    Table of Contents
        Page ii
    List of Tables
        Page iii
        Page iv
    Summary
        Page v
        Page vi
    Introduction
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    High-cost alligator farm
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Low-cost alligator farm
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
    High-cost alligator feedlot
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
    Alligator hatchling enterprise
        Page 27
        Page 28
        Page 29
        Page 30
    Conclusion
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
    Costs, labor requirements, and depreciation for the first four years of operation of the high-cost alligator farm
        Page 37
        Page 38
        Page 39
        Page 40
        Page 41
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
    Costs, labor requirements, and depreciation for the first four years of operation of the low-cost alligator farm
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
        Page 52
        Page 53
        Page 54
        Page 55
        Page 56
    Costs, labor requirements, and depreciation for the first three years of operation of the high-cost alligator feedlot
        Page 57
        Page 58
        Page 59
        Page 60
        Page 61
        Page 62
        Page 63
        Page 64
    Costs, labor requirements, and depreciation for the alligator hatchling enterprise
        Page 65
        Page 66
        Page 67
        Page 68
Full Text





Industry Report
84---3


Budgets and Financial Analyses
for Various Alligator Enterprises








A report by


D.L. Dodson and R.L. Degner








July 1984







Florida Agricultural Market Research Center
a part of
The Food and Resource Economics Department
Institute of Food and Agricultural Sciences
University of Florida, Gainesville, FL 32611












The Florida Agricultural Market Research Center is
a service of
the Food and Resource Economics Department
of the
Institute of Food and Agricultural Sciences


The purpose of this Center is to provide timely, applied research

on current and emerging marketing problems affecting Florida's agricul-

tural and marine industries. The Center seeks to provide research and

information to production, marketing, and processing firms, groups and

organizations concerned with improving and expanding markets for Florida

agricultural and marine products.

The Center is staffed by a basic group of economists trained in

agriculture and marketing. In addition, cooperating personnel from

other IFAS units provide a wide range of expertise which can be applied

as determined by the requirements of individual projects.












ACKNOWLEDGEMENTS


This research was initiated in response to growing interest in com-

mercial alligator production. We would like to thank Dennis David of

the Florida Game and Fresh Water Fish Commission for providing back-

ground information. A number of alligator farmers gave us useful infor-

mation on their farming practices. We are also indebted to Art Taylor

and Drs. Arthur Teixeira and Ray Bucklin of the Agricultural Engineer-

ing Department at the University of Florida, and Dr. Paul Cardeillac of

the College of Veterinary Medicine for their recommendations and

reviews of this manuscript.

We appreciate the assistance of Dr. Bill Boggess and Rom Alderman

in setting up the budgets on the FARM Lab micro-computer and

Dr. Boggess' review of the manuscript. Thanks go also to Renelle Kiddy

for typing the manuscript.













TABLE OF CONTENTS


Page

ACKNOWLEDGEMENTS . ... .... i

LIST OF TABLES . ... ... iii

SUMMARY . . .. . v

INTRODUCTION . ... . 1
Basic Assumptions ... ............. 2
Budget and Financial Analyses . 4

HIGH-COST ALLIGATOR FARM . . 7

LOW-COST ALLIGATOR FARM . .. .... 15

HIGH-COST ALLIGATOR FEEDLOT . .... .21

ALLIGATOR HATCHLING ENTERPRISE . .... .27

CONCLUSIONS . . ... . 30

APPENDIX A: COSTS, LABOR REQUIREMENTS, AND DEPRECIATION FOR
THE FIRST FOUR YEARS OF OPERATION OF THE HIGH-COST ALLIGATOR
FARM . . ... . ... .37

APPENDIX B: COSTS, LABOR REQUIREMENTS, AND DEPRECIATION FOR
THE FIRST FOUR YEARS OF OPERATION OF THE LOW-COST ALLIGATOR
FARM . .. ...... .. ......... .. 47

APPENDIX C: COSTS, LABOR REQUIREMENTS, AND DEPRECIATION FOR
THE FIRST THREE YEARS OF OPERATION OF THE HIGH-COST ALLIGA-
TOR FEEDLOT . . ... ... 57

APPENDIX D: COSTS, LABOR REQUIREMENTS, AND DEPRECIATION FOR
THE ALLIGATOR HATCHLING ENTERPRISE. .. . 65












LIST OF TABLES


Table Page

1 Prices and values of alligators and alligator meat
and hides . . .... 5

2 A five-year budget analysis of the high-cost alli-
gator farm. .... .. . I0

3 A 20-year financial analysis of the high-cost alli-
gator farm with the low sales value . .... 12

4 A 20-year financial analysis of the high-cost alli-
gator farm with the middle sales value ... .13

5 A 20-year financial analysis of the high-cost alli-
gator farm with the high sales value .... 14

6 A five-year budget analysis of the low-cost alliga-
tor farm . . ... 17

7 A 20-year financial analysis of the low-cost alli-
gator farm with the low sales value . .... 18

8 A 20-year financial analysis of the low-cost alli-
gator farm with the middle sales value ... 19

9 A 20-year financial analysis of the low-cost alli-
gator farm with the high sales value . .. 20

10 A four-year budget analysis of the high-cost alli-
gator feedlot . .... ... 23

11 A 20-year financial analysis of the high-cost alli-
gator feedlot with the low sales value ... 24

12 A 20-year financial analysis of the high-cost alli-
gator feedlot with the middle sales value ... 25

13 A 20-year financial analysis of the high-cost alli-
gator feedlot with the high sales value ... 26

14 Annual budget analysis of the alligator hatchling
enterprise . . ... .. .. .28

15 A 20-year financial analysis of the alligator
hatchling enterprise with a sales value of $15.00
per hatchling . .... ... 29














LIST OF TABLES CONTINUED


16 A 20-year financial analysis of the alligator
hatchling enterprise with a sales value of $49.73
per hatchling . . .


17 A comparison of annual net incomes generated by
various types of alligator enterprises using
three sales values . .

18 A comparison of net present values for various
types of alligator enterprises using three sales
values . . .

19 A comparison of internal rates of return for
various types of alligator enterprises using
three sales values . .


. 32


Table


Page











SUMMARY


This report analyzes costs and returns for four types of commercial
alligator enterprises. Included are budgets which give annual income
figures and 20-year financial analyses which give net present values for
each enterprise.

The first enterprise is a high-cost farm, which is an integrated
operation with its own breeding stock. The costs and specifications for
this farm are based primarily on the recommendations of the agricultural
engineers and a veterinarian. At the end of four years, it produces its
first 902 marketable alligators.

A low-cost farm is also reviewed. It is based on the reported
costs and specifications of actual farms. The low-cost farm is also
expected to produce 902 alligators after four years.

The third enterprise is a high-cost alligator feedlot. No breeders
are maintained with the feedlot, so hatchlings must be purchased from
outside sources. The feedlot produces its first 902 alligators at the
end of three years.

Finally, an alligator hatchling enterprise is evaluated. This
enterprise consists solely of a breeding operation, which produces 1,000
hatchlings per year. Each year, all of the hatchlings are sold.

Alligators fed for market are grown in heated buildings. Under
these conditions, it is estimated that three years are required to feed
an alligator to a marketable length of seven feet and a weight of 100
pounds with a meat yield of 30 pounds.

The economic returns of the two farms and the feedlot were evalu-
ated with three different sales values for the 902 alligators sold
annually. The three values were $138,908, $230,912, and $322,916.
These values were derived from hide and meat values of $12/ft. and
$4/1b., $18/ft. and $6/1b., and $24/ft. and $8/1b., respectively.

The budgets show that both the farms and the feedlot make money
with the high sales value. Annual net incomes with the high sales value
for the low-cost farm, high-cost feedlot, and the high-cost farm are
$121,109, $59,431 and $46,572, respectively. With the middle sales
value, the low-cost farm has a net income of $29,105. while the high-
cost farm and the high-cost feedlot both lose money. All three enter-
prises lose money with the low sales value.

The 20-year financial analyses revealed a similar income pattern.
Net present values with the high sales value for the low-cost farm,
high-cost feedlot, and the high-cost farm are $504,905, $225,979 and
$36,379, respectively. Only the low-cost farm has a positive net pre-
sent value ($38,665) with the middle sales value. The low sales value
gives all three enterprises negative net present values.












The hatchling enterprise is evaluated with sales values of $15.00
per hatchling and $49.73 per hatchling. The annual budget shows that a
net income of -$34,728 results from the sales value of $15.00, while the
value of $49.73 is the break even sales value and returns a net income
of zero. Both the $15.00 and $49.73 sales values return negative net
present values of -$262,225 and -$2,827, respectively in the 20-year
financial analyses.












Budgets and Financial Analyses
for Various Alligator Enterprises


D.L. Dodson and R.L. Degner


INTRODUCTION


Raising alligators for commercial slaughter is not a new idea, but

it is one that is receiving a great deal of interest in Florida. Since

the Florida Game and Fresh Water Fish Commission (GFC) set up regulations

for commercial production of alligators in 1975, about 15 firms have gone

into business. Research has begun in all aspects of alligator produc-

tion. This report provides needed information about costs and returns

associated with producing alligators. Economic returns are estimated for

four types of commercial alligator operations at various sales values.

There are two general approaches to raising alligators. The first,

which we have termed an alligator "farm," is an integrated operation

which has its own breeding stock. After eggs are laid, they are artifi-

cially incubated, and the resulting hatchlings are grown to the optimum

marketable size, usually six to seven feet.

The second approach we have termed an alligator "feedlot." With the

feedlot operation, no breeders are maintained. Hatchlings are purchased

and fed to marketable size. Hatchlings are assumed to be available from

the wild through GFC regulated and supervised programs or through indivi-

duals specializing in hatchling production. Hatchling production in the

wild or in extensive natural environments (commonly called "ranching" by

GFC) may be the most efficient method of producing hatchlings, given the


D.L. Dodson is visiting assistant in agricultural economics, and
R.L. Degner is associate professor in Food and Resource Economics at the
University of Florida.













degree of reproductive problems in intensive confinement breeder operations.

Alligators are cold-blooded animals and become very inactive or even

dormant during the winter in much of Florida. Alligators being fed for mar-

ket may be kept in outdoor pens and subjected to the natural environmenL, or

they may be raised indoors under a controlled environment. Indoors they may

be kept heated year-round, which keeps their metabolic rates high and allows

them to grow to a marketable size sooner. Breeders are always kept outdoors

in a natural setting to maximize breeding activity. Currently, most alliga-

tor operations in Florida have their own breeding stock and supplement these

with ranchedd" eggs and hatchlings obtained through the GFC. Commercial

alligator farms use both indoor and outdoor feeding systems. All enter-

prises evaluated here use heated indoor feeding, because the consensus among

research team members was that heated facilities are essential for econo-

mical production.

The four operations analyzed here are (1) a high-cost farm with

indoor feeding, (2) a low-cost farm with indoor feeding, (3) a high-cost

indoor feedlot, and (4) an enterprise which only produces hatchlings.

All of the animals are assumed to be sold live because it was judged

uneconomical for an enterprise to have its own slaughtering facility.

Basic Assumptions

The assumptions made here are based on published data whenever pos-

sible. However, there is little published information available about

the biological aspects of raising alligators. Therefore, many assumptions

are based upon interviews with alligator farmers and research veterinarians.

The basic objective of the two farms and the feedlot is to raise

alligators to a length of seven feet and a weight of 100 pounds, with a

boneless meat yield of 30 pounds. Based on limited experience with












growing alligators in heated environments, it is assumed that this can be

done in three years. The objective of the hatchling farm is to breed

alligators, hatch the eggs, and sell the hatchlings as soon as possible.

Alligator reproduction on farms is currently fraught with difficul-

ties. Consequently, the following specifications were taken primarily

from estimates of wild alligator reproduction rates. While most farms

have not achieved these reproduction rates, many are optimistic that

these rates will be reached soon. For the breeding operation, it is

assumed that 70 percent of the females will nest each year and lay 35

eggs per nest. The eggs should have a 60 percent hatching success rate.

Given these figures, 68 female and 23 male breeders will be required to

produce 1,000 hatchlings. Thus, the two farms and the hatchling enter-

prise will produce 1,000 hatchlings every year, while the feedlot will

produce 1,000 hatchlings per year.

Over the three years required to grow seven-foot alligators, the

expected mortality rates are: seven percent the first year, two percent

the second, and one percent the third year. Starting with 1,000 alliga-

tors, 930 will remain at the end of the first year, 911 at the end of the

second, and 902 at the end of the third year. For calculating feed,

vitamin and medical needs, it is assumed that there will be an average of

965 alligators living during the first year, 920 the second, and 906 the

third year.

Alligators are carnivorous animals that eat a variety of foods.

Farmers in Florida feed alligators mostly waste meat or spoiled meat,

such as chicken, beef livers, fish, and nutria. In early 1984, they paid

an average of 15 cents per pound for feed. In an indoor heated environ-

ment, an alligator will eat approximately 30 pounds of meat during its













first year of life, 120 pounds its second, and 250 pounds its third year.

Each breeder requires an average of 450 pounds of meat per year.

The capital requirements and operating costs and specifications for

the four enterprises were obtained from alligator farmers and from research

team members from the Agricultural Engineering Department and the College

of Veterinary Medicine at the University of Florida. Details about the

construction specifications, labor and operating requirements for specific

types of alligator enterprises are discussed in later sections. Capital

costs, operating costs, and depreciation schedules will also be presented.

Budget and Financial Analyses

Annual budgets and 20-year financial analyses are presented for every

enterprise. The budgets give annual net income figures and the 20-year

financial analyses give net present values and internal rates of return.

For the two farms and the feedlot, three different sales values for hides

and meat are used to show sensitivity to revenues. These three values

were chosen to represent a range of possible prices for meat and hides.

Table 1 shows the derivation of the three sales values from three whole-

sale prices for meat and hides. As stated earlier, each finished alliga-

tor will yield about 30 pounds of boneless meat and a seven-foot hide.

The hatchling enterprise will be evaluated with an estimated current price

of $15.00 per alligator, and a break-even price will also be calculated.

The annual budgets include operating costs, opportunity cost of

land, depreciation, interest on capital, interest on operating costs,

carry-over interest, total costs, and net income. The definitions and

calculations of these terms are as follows:

Operating Costs includes all annual costs incurred to operate the

enterprise, such as feed, medicine, labor, etc.












Table l.--Prices and values of alligators and


Low Prices
($12/ft.
and $4/1b.)

Hide Value $ 84

Meat Value 120

Total Value of One Processed
Alligator 204

Slaughtering and Butchering
Margin 50


Total Value of One Live
Alligator

Total Value of Sales (902
Alligators)


154


$138,908


alligator meat and hides.


Middle Prices High Prices
($18/ft. ($24/ft.
and $6/1b.) and $8/1b.)

$ 126 $ 168

180 240


306 408


50 50


256 358


$230,912 $322,916













Opportunity Cost of Land is the fair market value of land. Each

acre is valued at $2,500 and the opportunity cost is calculated on the

total value at 12 percent annually.

Depreciation includes the annual charge for the depreciation of all

capital owned in that year. Because the lives given in the depreciation

tables are estimated total usable lives, no salvage values are included

in calculating depreciation.

Interest on Capital is calculated on one-half the total value of

all capital owned in that year. An annual interest rate of 12 percent

is used.

Interest on Operating Costs, for simplicity, is calculated on the

full value of the annual operating costs at a rate of 12 percent.

Carry-Over Interest is included in those budgets that have years

that no income is generated. This interest is calculated on the total

interest of any previous year that had no income at a rate of 12 percent.

For example, for the farm budgets, carry-over interest is calculated in

year two on the sum of the interest on capital plus the interest on

operating costs in year one.

Sales are the three different values from Table 1 for the annual

sale of 902 fed alligators and the two assumed values for the sale of

1,000 hatchlings.

Net Income is equal to sales minus total costs in each year. Net

income is figured for each of the different sales values.

A 20-year period was chosen for the financial analyses because that

is the estimated usable life of the major capital investments. The

tables presenting the financial analyses show annual costs, sales, cash

flow, and present value. Net present values and internal rates of return












were calculated for each financial analysis. These terms are defined as

follows:

Costs are the actual cash costs that occur in each year. For exam-

ple, in year one the costs are equal to the sum of the equipment, build-

ing, and operating costs, plus the cost of purchasing the land (at $2,500

per acre). In later years, the only costs may be operating costs. The

equipment is replaced according to the lives specified in the deprecia-

tion tables and the costs are entered in the appropriate year. After 10

years, all of the ponds are renovated at a cost of one-fourth their ori-

ginal costs.

Sales are the three different values for the sale of fed alligators

and the two values for the sale of hatchlings. For each enterprise, a

separate financial table is presented for each appropriate sales value.

Cash Flow is equal to sales minus costs for each year.

Present Value represents a future value discounted to its present

worth at the beginning of the project. The cash flow value for each year

is discounted to its present value at the rate of 12 percent annually.

Net Present Value is the sum of the present values and represents

the total net worth of the project in current terms (at the beginning of

the project).

Internal Rate of Return represents the return over the life of the

project to the resources engaged in the project. It is equal to that

discount rate which returns a net present value of zero.


HIGH-COST ALLIGATOR FARM


The building and equipment specifications for the high-cost alliga-

tor farm were developed primarily by team members from the Agricultural













Engineering Department and the College of Veterinary Medicine. The labor

requirements and operating costs are based primarily on actual farm prac-

tices. This farm incorporates the recommended technologies and practices

that should provide optimal animal development for the costs. It takes four

years to get into full production. The first year, only the breeders are

there to produce the first 1,000 hatchlings. These hatch at the beginning

of the second year and are transferred from the incubator to a nursery for

about two weeks, and then to a grow-out building. At the beginning of the

third and fourth years. 1.000 more alligators are hatched and transferred to
the grow-out building. At the end of the fourth year (after three years of

growing), the first group of alligators (902 survivors) are sold for slaugh-

ter. Each year thereafter, 1,000 alligators are hatched and 902 are sold.

A total of 14 acres of land are required, of which 12.5 are fenced

for the breeding area. Inside the breeding area, there is a five-acre

pond, which is excavated to a depth of six feet. This size breeding area

is considered optimal for the 68 female and 23 male breeders needed. The

breeders are kept here throughout the year.

The remaining 1.5 acres are for the buildings and the polishing

pond. The polishing pond serves to aerate the effluent from the alliga-

tor grow-out buildings.

At the beginning of the first year of operation, a utility building

of 1,200 square feet is constructed. One room of the building serves as

an incubation chamber for the alligator eggs. Another room serves as a

nursery area for the hatchlings during their first two weeks of life.

The building also contains space for a cooler and freezer for feed

storage, an office, and a storage room for equipment.

Three grow-out buildings are to be built over a period of three












years to house the alligators as they grow. The first building is built

at the beginning of the second year in order to house the alligators

through their first year of life. The building is of concrete block con-

struction, with pens on either side of a central walkway. About half of

a pen's area is submerged in water to a depth of approximately 6 to 12

inches. Each alligator needs 2.2 square feet during its first year of

life, so 2,200 square feet are needed in the pen areas to hold 1,000

alligators. The total area of the building is 2,550 square feet. It is

recommended that growing pens be kept at 880 F. Heat is provided by hot

water flowing through copper pipes laid under the concrete slab floor.

The water is heated by the same boiler that heats the utility building.

The second grow-out building is built at the beginning of the third

year to house the alligators during their second year of life. The

basic design and construction are the same as for the first building, but

the total area is enlarged to 8,670 square feet with 7,500 square feet in

the pen area (7.5 square feet per alligator).

The third grow-out building is built in the fourth year and houses

the alligators during their third year. Again, the design and construc-

tion are similar to those for the other buildings. The total area of the

third grow-out building is 12,240 square feet, of which 10,500 square

feet are in the pen areas (10.5 square feet per alligator).

Appendix A contains tables that provide annual summaries of the

equipment and building costs, labor requirements, operating costs, and

depreciation for the first four years of operation.

Table 2 provides a five-year budget analysis of the high-cost alli-

gator farm. All costs increase every year through the fourth year as

new investments are made and more alligators are hatched. There are no












Table 2.--A five-year budget analysis of the high-cost alligator farm.a


5-Year
Year 1 Year 2 Year 3 Year 4 Year 5 Total

------.----------------Dollars----------------------


Operating costs

Opportunity cost
of land

Depreciation

Interest on capital

Interest on operat-
ing costs

Carry-over interest

Total costs

Net income
(sales = $138,908)

Net income
(sales = $230,912)

Net income
(sales = $322,916)


15,542 31,519


4,200

15,320

15,369


1,865

0

52,296


4,200

20,243

21,060


3,782

2,068

82,872


73,251 142,927 142,927 406,166


4,200

33,798

36,996


8,790

3,229

160,264


4,200

52,708

59,358


17,151

5,882

282,226


4,200

52,708

59,358


17,151

0

276,344


- -143,318 -137,436


21,000

174,775

192,141


48,740

11,179

854 001


-576,185


-51,314 -45,432 -392,177


40,690 46,572 -208,169


aNo sales are made until the end of year four. Therefore, net income
is equal to total rosts in years one through three.












sales until the end of the fourth year. The fifth year (and every subse-

quent year) is the same as the fourth year, except that all of the carry-

over interest has been paid off.

Total costs increase from $52,296 the first year to $276,344 the

fifth year for a five-year total of $854,001. With the low and middle

sales values, net income is negative in every year, but with the high

sales value, net income becomes positive in the fourth year. In the

fifth year and each subsequent year, net income is $46,572. Even with

the high sales value, though, the five-year total for net income is

-$208,169.

Tables 3 through 5 present 20-year financial analyses of the high-

cost farm for the low, middle and high sales values, respectively. In

Table 3, the low sales value and 12 percent discount rate return a net

present value of -$896,102. The internal rate of return from these

costs and sales is -171.0 percent. The negative internal rate of return

is the result of discounting a negative total cash flow, -$1,296,411, to

a net present value of zero.

The middle sales value and 12 percent discount rate give a net pre-

sent value of $429,862 (see Table 4). In this case, the internal rate

of return is calculated on a positive total cash flow, $267,657, and is

equal to 2.34 percent. In Table 5, the high sales value and 12 percent

discount rate return a net present value of $36,379. Here, the internal

rate of return is 12.69 percent.

Both the five-year budget analysis and the 20-year financial analy-

ses show that the high-cost farm will only make money with the high sales

value.













Table 3.--A 20-year financial analysis of the high-cost alligator farm with
the low sales value.


Year Costs Sales Cash Flow Present Valuea

-------------------------Dollars------------------------


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Totals


306,692

126,369

338,901

515,627

142,977

142,927

142,977

142,927

142,977

142,927

210,902

147,027

148,477

148,427

142,977

142,927

142,977

142,927

142,977

142,927

3,657,847


0

0

0

138,908

138.908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,900

138,908

138,908

138,908

138,908

2,361,436


-306,692

-126,369

-338,901

-376,719

-4.069

-4,019

-4,069

-4,019

-4,069

-4,019

-71,994

-8,119

-9,569

-9,519

-4,069

-4,019

-4,069

-4,019

-4,069

-4,019

-1 ,296,411


-273,832

-100,740

-241,223

-239,412

-2,309

-2,036

-1,841

-1 ,623

-1,467

-1,294

-20,697

-2,084

-2,193

-1.948

-743

-656

-593

-523

-472

-417

-896,102


aThe present values are calculated at a discount rate of 12 percent.












Table 4.--A 20-year financial analysis of the high-cost alligator farm with
the middle sales value.


Year Costs Sales Cash Flow Present Valuea

------------------------ Dollars-------------------------


20

Totals

aThe present


306,692

126,360

338,901

515,627

142,977

142,927

142,977

142,927

142,977

142,927

210,902

147,027

148,477

148,427

142,977

142,927

142,977

142,927

142,977

142,927

3,657,847


0 -306,692

0 -126,369

0 -338,901

230,912 -284,715

230,912 87,935

230,912 87,985

230,912 87,935

230,912 87,985

230,912 87,935

230,912 87,985

230,912 20,010

230,912 83,885

230,912 82,435

230,912 82,485

230,912 87,935

230,912 87,985

230,912 87,935

230,912 87,985

230,912 87,935

230,912 87,985

3,925,504 267,657


values are calculated at a discount rate of 12 percent.


-273,832

-100,740

-241,223

-180,942

49,897

44,576

39,777

35,536

31,710

28,329

5,752

21,531

18,892

16,878

16,065

14,352

12,807

11,442.

10,210

9,121

-429,862













Table 5.--A 20-year financial analysis of the high-cost alligator farm with
the high sales value.


Year Costs Sales Cash Flow Present Valuea

----------------------o Dollars--------- -------------


306,692

126,369

338,901

515,627

142,977

142,927

142,977

142,927

142,977

142,927

210,902

147,027

148,477

148,427

142,977

142,927

142,977

142,927

142,977


20

Totals


142,927

3,657,847


322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

5,489,572


-306,692

-126,369

-338,901

-192,711

179,939

179,989

179,939

179,989

179,939

179,989

112,014

175,889

174,439

174,489

179,939

179,989

179,939

179,989

179,939

179,989

1 ,831,725


-273,832

-100,740

-241,223

-122,471

102,102

91,188

81,395

72,694

64,888

57,952

32,201

45,146

39,997

35,701

32,874

29,360

26,207

23,406

20,892

18,659

36.379


aThe present values are calculated at a


discount rate of 12 percent.












LOW-COST ALLIGATOR FARM


The specifications and costs for the low-cost alligator farm are

based primarily on actual practices of Florida alligator farms. The

farmers are able to have lower costs by doing much of the construction

work themselves, buying used equipment, using less space per alligator,

and using lower cost building designs. As with the high-cost farm, the

low-cost farm requires four years to reach full production and should

produce 902 alligators per year.

The farmers interviewed feel their lower-cost systems will be just

as productive, i.e., that seven-foot alligators can also be grown in

only Lhree years. Although university researchers feel that the lower-

cost systems will be somewhat less efficient, this has not been docu-

mented. Lacking conclusive evidence, the same production levels are

assumed for both the low- and the high-cost systems to simplify com-

parison.

The low-cost alligator farm has 11.5 acres of land, of which 10 are

fenced for the breeding area. There is a four-acre pond in the breeding

area. This size breeding area is smaller than the recommended area, but

it is the size more commonly used by farmers for 91 breeders. The

buildings and polishing pond occupy the other 1.5 acres.

A utility building of 800 square feet is constructed at the begin-

ning of the first year of operation. The building has an incubation

room, space for a cooler and freezer, and a storage room. There is no

office or nursery. The hatchlings are transferred to the grow-out

building immediately after hatching.

This farm also has three grow-out buildings. The first one is

built at the beginning of the second year in order to house the













alligators during their first year. The building is of concrete con-

struction with two rows of pens. The height of the building is less

than four feet and access is through hinged roof panels from the perime-

ter of the building rather than through a central walkway. The total

area of the building is 2,000 square feet, which provides less space for

the alligators than the high-cost farm's first grow-out building. The

heating is the same as that described for the high-cost farm.

A second grow-out building of 7,300 square feet is built at the

beginning of the third year and a third building of 10,300 square feet

is built the fourth year. The design and construction of these build-

ings are the sdire ds fur the first one.

The tables in Appendix B provide annual summaries of the equipment

and building costs, labor requirements, operating costs, and deprecia-

tion schedules for the first four years of operation.

A five-year budget analysis of the low-cost farm appears in Table 5.

As with the high-cost farm, there are no sales until the end of the

fourth year. The fifth year (and every subsequent year) is the same as

the fourth year, except that all of the carry-over interest has been

paid off. Total costs increase from $40,003 the first year to $201,807

the fifth year, for a five-year total of $621,672.

For this farm, net income is negative in every year only with the

low sales value. With the middle and high sales values, net income is

positive in the fourth and fifth years. In fact, the high sales value

gives a positive five-year total net income of $24,160.

Tables 7 through 9 present 20-year financial analyses of the low-

cost farm for the low, middle, and high sales values, respectively. In

Table 7, the low sales value and 12 percent discount rate return a net








17



Table 6.--A five-year budget analysis of the low-cost alligator farm.a


5-Year
Year 1 Year 2 Year 3 Year 4 Year 5 Total

----------------------Dollars----------------------


Operating costs

Opportunity cost
of land

Depreciation

Interest on capital

Interest on uperat-
ing costs

Carry-over interest

Total costs

Net income
(sales = $138,908)

Net income
(sales = $230,912)

Net income
(sales = $3ZZ,91b)


14,285 27,376 64,867 128,686 128,686 363,900


3,450

10,479

10,075


1,714

0

40 003


3,450

12,179

12,055


3,282

1 415

59,760


3,450

17,949

18,804


7,784

2.011

114,864


3,450

25,974

28,254


15,442

3,432

205,239


3,450

25,974

28,254


15,442

0

201,807


- - -66,331 -62,889


17,250

92,554

97,443


43,668

6.857

621 672


-343,856


- 25,673 29,105 -159,848


- 117,677 121,109 24,160


aNo sales are made until the end of year four. Therefore, net income
is equal to total costs in years one through three.












Table 7.--A 20-year financial analysis of the low-cost alligator farm with
the low sales value.


Year Costs Sales Cash Flow Present Valuea

----------------------Dollars------------------------


210,950

60,376

177,407

286,186

128,726

128,686

128,726

128,686

128,726

128,686

180,026

130,186

131,726

131,686

128,726

128,686

128,726

128,686

128,726

128,686

2,853,019


Total


0

0

0

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

138,908

2,361,436


-210,950

-60,376

-177,407

-147,278

10,182

10,222

10,182

10,222

10,182

10,222

-41,118

8,722

7,182

7,222

10,182

10,222

10,182

10,222

10,182

10,222

-491,583


-188,348

-48,132

-126,275

-93,598

5,777

5,179

4,606

4,128

3,672

3,291

-11 ,821

2,239

1,646

1 ,478

1,860

1,667

1 ,483

1 ,329

1,182

1,060

-427,576


aThe present values are calculated at a


discount rate of 12 percent.












Table 8.--A 20-year financial analysis of the low-cost alligator farm with
the middle sales value.


Year Costs Sales Cash Flow Present Valuea

-----------------------Dollars-------------------------

1 210,950 0 -210,950 -188,348

2 60,376 0 -60,376 -48,132

3 177,407 0 -177,407 -126,275

4 286,186 230,912 -55,274 -35,128

5 128,726 230,912 102,186 57,983

6 128,686 230,912 102,226 51,791

7 128,726 230,912 102,186 46,224

8 128,686 230,912 102,226 41,287

9 128,726 230,912 102,186 36,849

10 128,686 230,912 102,226 32,914

11 180,026 230,912 50,886 14,628

12 130,186 230,912 100,726 25,854

13 131,726 230,912 99,186 22,731

14 131,686 230,912 99,226 20,304

15 128,726 230,912 102,186 18,669

16 128,686 230,912 102,226 16,675

17 128,726 230,912 102,186 14,883

18 128,686 230,912 102,226 13,293

19 128,726 230,912 102,186 11,864

20 128,686 230,912 102,226 10,597

Totals 2,853,019 3,925,504 1,072,485 38,665

aThe present values are calculated at a discount rate of 12 percent.













Table 9.--A 20-year financial analysis of the low-cost alligator farm with
the high sales value.


Year Costs Sales Cash Flow Present Valuea

----------------------Dollars-------------------------


210,950

60,376

177,407

286,186

128,726

128,686

128,726

128,686

128,726

128,686

180,026

130,186

131,726

131,686

128,726

128,686

128,726

128,686

128,726

128,686

2,853,019


20

Totals


0

0

0

322,916

322,916

322,916

322,916

322,916

332,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

322,916

5,489,572


-210,950

-60,376

-177,407

36,730

194,190

194,230

194,190

194,230

194,190

194,230

142,890

192,730

191 ,190

191,230

194,190

194,230

194,190

194,230

194,190

194,230

2,636,553


-188,348

-48,132

-126,275

23,342

110,188

98,403

87,842

78,446

70,027

62,537

41,077

49,469

43,816

39,129

35,478

31,683

28,283

25,258

22,547

20,135

504,905


aThe present values are calculated at


a discount rate of 12 percent.












present value of -$427,576. The internal rate of return from these costs

and sales is -12.99 percent.

A net present value of $38,665 results from the middle sales value

and 12 percent discount rate (see Table 8). The internal rate of return

is 13.30 percent with the middle sales value. Table 9 shows that the

high sales value returns a net present value of $504,905 at a 12 percent

discount rate. For the high sales value, the internal rate of return is

26.33 percent.

Both the five-year budget analysis and the 20-year financial analy-

ses show that the low-cost farm will make money with the middle and high

sales values.


HIGH-COST ALLIGATOR FEEDLOT


The capital costs and specifications for the feedlot are based pri-

marily on the recommendations of team members from the Agricultural

Engineering Department and College of Veterinary Medicine. The labor

requirements and operating costs are based primarily on actual farm

practices. The feedlot differs from the two farms in that there is no

breeding operation. Instead, the feedlot obtains hatchlings from out-

side sources and does not require one year to establish a breeding

operation. Thus, it only takes three years to get into full production.

The feedlot will purchase 1,000 alligators every year, and it will sell

902 every year, beginning in the third year. Only 1.5 acres are

required for the buildings and polishing pond.

At the beginning of the first year, a utility building of 800 square

feet is constructed. This building contains space for a cooler and free-

zer, an office, and a storage room for equipment. The three required












grow-out buildings are identical to the ones described for the high-cost

farm.

The tables in Appendix C provide annual summaries of the equipment

and building costs, labor requirements, operating costs, and depreciation

for the first three years of operation.

Table 10 provides a four-year budget analysis of the high-cost alli-

gator feedlot. The total costs increase from $67,547 the first year to

$263,485 the fourth year for a four-year total of $745,471. No sales are

made until the end of the third year. With the low and middle sales

values, net income is negative in every year. The high sales value pro-

duces a positive net income of $59,431 the fourth year, but the four-year

total remains a negative $99,639.

Tables 11 through 13 present 20-year financial analyses of the high-

cost feedlot. In Table 11, the low sales value and 12 percent discount

rate return a net present value of -$837,475. The internal rate of

return from the costs and sales is -$174,85 percent. Table 12 shows that

the middle sales value and 12 percent discount rate return a net present

value of -$305,748. The internal rate of return from the middle sales

value is 4.39 percent. In Table 13, a net present value of $225,979

results from the high sales value and 12 percent discount rate. With the

high sales value, the internal rate of return is 16.89 percent.

Both the five-year budget analysis and the 20-year financial analy-

ses show that the high-cost feedlot will only make money with the high

sales value.












budget analysis of the high-cost alligator feedlot.a


Year 1 Year 2 Year 3

----------------------Dollars---


4-Year
Year 4 Total

-------------------


Operating costs

Opportunity cost
of land

Depreciation

Interest on capital

Interest on operat-
ing costs

Carry-over interest

Total costs

Net income
(sales = $138,908)

Net income
(sales = $230,912)

Net income
(sales = $322,916)


37,552 79,639 149,315 149,315 415,821


450

12,793

12,246


4,506

0

67,547


450

26,348

28,182


9,557

2,010

146,185


450

45,258

50,544


17,918

4,770

268,254


450

45,258

50,544


17,918

0

263,485


1,800

129,655

141 ,516


49,899

6,780

745,471


- -129,346 -124,577 -467,655


-37,342 -32,573 -283,647


54,662 59,431


99,639


aNo sales are made until the end of year
is equal to total costs in years one and two.


three.


Therefore, net income


Table 10.--A four-year












Table 11.--A 20-year financial analysis of the high-cost alligator feedlot
with the low sales value.


Year Costs Sales Cash Flow Present Valuea

---------------------- Dollars---------------------

1 245,402 0 -245,402 -219,109

2 345,239 0 -345,239 -275,222

3 522,065 138,908 -383,157 -272,724

4 149,315 138,908 -10,407 -6,614

5 149,365 138,908 -10,457 -5,934

6 149,315 138,908 -10,407 -5,273

7 149,365 138,90A -10,457 -4,730

8 149,315 138,908 -10,407 -4,203

9 149,365 138,908 -10,457 -3,771

10 149,315 138,908 -10,407 -3,351

11 201,165 138,908 -62,257 -17,897

12 154,815 138,908 -15,907 -4,083

13 154,865 138,908 -15,957 -3,657

14 149,315 138,908 -10,407 -2,130

15 149,365 138,908 -10,457 -1,911

16 149,315 138,908 -10,407 -1,698

17 149,365 138,908 -10,457 -1,523

18 149,315 138,908 -10,407 -1,353

19 149,365 138,908 -10,457 -1,214

20 149,315 138,908 -10,407 -1,079

Totals 3,714,265 2,500,344 -1,213,921 -837,475

aThe present values are calculated at a discount rate of 12 percent.












Table 12.--A 20-year financial analysis of the high-cost alligator feedlot
with the middle sales value.


Year Costs Sales Cash Flow Present Valuea

---------------------Dollars--------------------------

1 245,402 0 -245,402 -219,109

2 345,239 0 -345,239 -275,222

3 522,065 230,912 -291,153 -207,237

4 149,315 230,912 81,597 51,856

5 149,365 230,912 81,547 46,272

6 149,315 230,912 81,597 41,339

7 149,365 230,912 81,547 36,888

8 149,315 230,912 81,597 32,956

9 149,365 230,912 81,547 29,407

10 149,315 230,912 81,597 26,272

11 201,165 230,912 29,747 8,551

12 154,815 230,912 76,097 19,532

13 154,865 230,912 76,047 17,428

14 149,315 230,912 81,597 16,696

15 149,365 230,912 81,547 14,898

16 149,315 230,912 81,597 13,310

17 149,365 230,912 81,547 11,877

18 149,315 230,912 81,597 10,611

19 149,365 230,912 81,547 9,468

20 149,315 230,912 81 ,597 8,459

Totals 3,714,265 4,156,416 442,151 -305,748

aThe present values are calculated at a discount rate of 12 percent.













Table 13.--A 20-year financial analysis of the high-cost alligator feedlot
with the high sales value.


Year Costs Sales Cash Flow Present Valuea

------------------------Dollars-------------------------

1 245,402 0 -245,402 -219,109

2 345,239 0 -345,239 -275,222

3 522,065 322,916 -199,149 -141,751

4 149,315 322,916 173,601 110,326

5 149,365 322,916 173,551 98,477

6 149,315 322,916 173,601 87,952

7 149,365 322,916 173,551 78,506

8 149,315 322,916 173,601 70,114

9 149,365 322,916 173,551 62,584

10 149,315 322,916 173,601 55,895

11 201,165 322,916 121,751 35,000

12 154,815 322,916 168,101 43,147

13 154,865 322,916 168,051 38,513

14 149,315 322,916 173,601 35,522

15 149,365 322,916 173,551 31,707

16 149,315 322,916 173,601 28,318

17 149,365 322,916 173,551 25,277

18 149,315 322,916 173,601 22,575

19 149,365 322,916 173,551 20,150

20 149,315 322,916 173,601 17,997

Totals 3,714,265 5,812,488 2,098,223 225,979

aThe present values are calculated at a discount rate of 12 percent.












ALLIGATOR HATCHLING ENTERPRISE


The specifications for the hatchling enterprise are based about

equally on information from the Agricultural Engineering Deparment and

from existing farms. This enterprise only takes one year to get into

full production because it consists solely of a breeding operation. The

goal is to produce and sell 1,000 hatchlings every year.

A total of 13 acres are needed for the hatchling enterprise, of

which 12.5 are fenced for the breeding area. There is a five-acre pond

within the breeding area. The remaining half acre is for a utility

building. This building has an area of 1,200 square feet and includes

an incubator room and a nursery room to keep the hatchlings until they

are sold. The building also has space for a cooler and freezer, an

office, and a storage room for equipment.

Appendix D contains detailed tables showing the equipment and build-

ing costs, the annual labor requirements, operating costs, and a depre-

ciation schedule.

Table 14 provides an annual budget analysis of the hatchling enter-

prise with the two sales values. At a price of $15.00 per hatchling, the

approximate cost of hatchlings available through the GFC, the enterprise

loses almost $35,000 per year, or $35.00 per hatchling. For the hatch-

ling operation to break even, hatchlings would have to be sold at a price

of $49.73 each.

Table 15 provides a 20-year financial analysis of the hatchling

enterprise with the price of $15.00 per hatchling. At the discount rate

of 12 percent, the enterprise has a net present value of -$262,225. The

internal rate of return is -163.13 percent. A 20-year financial analysis

of the hatchling enterprise at the break-even price of $49.73 appears in












Table 14.--Annual budget analysis of the alligator hatchling enterprise.


Dollars

Operating expenses 16,690

Opportunity cost of land 3,900

Depreciation 13,465

Interest on capital 13,671

Interest on operating costs 2,003

Total costs 49,728

Net income (sales = $15,000) -34,728

Net income (sales = $49,728) 0













Table 15.--A 20-year financial analysis of the alligator hatchling enter-
prise with a sales value of $15.00 per hatchling.


Year Costs


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Totals


277,040

16,690

16,740

16,690

16,740

16,690

16,740

16,690

16,740

16,690

75,865

16,690

16,740

16,690

16,740

16,690

16,740

16,690

16,740

16,690

653,717


Sales Cash Flow

---------------Dollars------

15,000 -262,040

15,UUU -1,69U

15,000 -1,740

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -60,865

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -1,740

15,000 -1,690

15,000 -1-,740

15,000 -1,690

300,000 -353,717


Present Valuea

----------


-233,964

-1 ,347

-1,238

-1,074

-987

-856

-787

-682

-627

-544

-17,497

-434

-399

-346

-318

-276

-253

-220

-202

-175

-262,225


aThe present values are calculated


at a discount rate of 12 percent.












Table 16.--A 20-year financial analysis of the alligator hatchling enter-
prise with a sales value of $49.73 per hatchling.


Year Costs Sales Cash Flow Present Valuea

------------------------Dollars--------------------------

1 277,040 49,728 -277,312 -202,957

2 16,690 49,728 33,038 26,338

3 16,740 49,728 32,988 23,480

4 16,690 49,728 33,038 20,997

5 16,740 49,728 32.988 18.719

6 16,690 49,728 33,038 16,738

7 16,740 49,728 32,988 14,922

8 16,690 49,728 33,038 13,344

9 16,740 49,728 32,988 11,896

10 16,690 49,728 33,038 10,637

11 75,865 49,728 -26,137 -7,514

12 16,690 49,728 33,038 8,480

13 16,740 49,728 32,988 7,560

14 16,690 49,728 33,038 6,760

15 16,740 49,728 32,988 6,027

16 16,690 49,728 33,038 5,389

17 16,740 49,728 32,988 4,805

18 16,690 49,728 33,038 4,296

19 16,740 49,728 32,988 3,830

20 16,690 49,728 33,038 3,425

Totals 653,717 994,560 340,843 -2,827


aThe present values are calculated at a


discount rate of 12 percent.












Table 16. At this price, the total cash flow is $340,843, but the 12

percent discount rate reduces this to a net present value of -$2,827.

The internal rate of return is 11.76 percent.


CONCLUSIONS


Operating an alligator enterprise is very expensive. Large capital

investments are required over a period of three to four years while no

income is being generated. Because of the newness of the industry, there

is no certainty that the production methods used will achieve the goals

desired. For this reason, four different enterprises were evaluated with

a range of sales values.

All three enterprises have positive incomes with the high sales

value. However, only the low-cost farm has a positive net income with

the middle sales value, and none has a positive net income with the low

sales value. For each sales value, the low-cost farm has the highest

income, the feedlot the second highest, and the high-cost farm has the

lowest net income (Table 17).

The hatchling enterprise can only break even at a price of $49.73

per hatchling. However, a feedlot could add a breeder operation and pro-

duce hatchlings at a cost of approximately $29.00 each, based upon the

difference between a high-cost farm and a high-cost feedlot. This sug-

gests that an alligator enterprise would do better to raise its own

hatchlings or to obtain them from the GFC at a competitive price.

Comparing the net present values for the various enterprises shows

the same pattern as comparing the net incomes (Table 18). The high sales

value allows all three enterprises to have positive net present values.

However, the middle sales value allows only the low-cost farm to have a












Table 17.--A comparison of annual net incomes generated by various types of
alligator enterprises using three sales values.


Annual Net Incomeb

Low Middle High
Type of Enterprise Sales Value Sales Value Sales Value
------------------Dollars---------------

High-cost farm -137,436 -45,432 46,572

Low-cost farm -62,899 29,105 121,109

High-cost feedlot -124,577 -32,573 59,431

aThe three sales values--low, middle, and high--are $138,908, $230,912,
and $322,916, respectively.
bThe annual net incomes are for all years after reaching full produc-
tion and after carry-over interest from development years has been paid.
For the high- and low-cost farms, this occurs in year five. For the high-
cost feedlot, it occurs in year four.












Table 18.--A comparison of net present values for various types of alliga-
tor enterprises using three sales values.a


Net Present Valueb

Low Middle High
Type of Enterprise Sales Value Sales Value Sales Value

------------------Dollars----------------

High-cost farm -896,102 -429,862 36,379

Low-cost farm -427,576 38,665 504,905

High-cost feedlot -837,475 -305,748 225,979

aThe three sales values--low, middle, and high--are $138,908, $230,912
and $322,916, respectively.
bThe net present values were calculated at a 12 percent discount rate
for a period of 20 years.













positive net present value, while the low sales value does not allow any

enterprise to have a positive net present value.

The internal rates of return also reveal the same pattern (Table

19). In this case, the high sales value gives all three enterprises an

internal rate of return above the chosen 12 percent discount rate. The

middle sales value gives only the low-cost farm an internal rate of

return above the discount rate and the low sales value gives none of the

enterprises an internal rate of return above the discount rate.

Income Tax considerations were not incorporated into the analyses

because taxes vary widely depending on individuals' other income sources.

Investment tax credit dlid accelerated depreciation on the alligator

enterprise may result in significant tax reductions on other income.

Thus, depending on an individual's tax situation, tax savings resulting

from the alligator operation may provide sufficient incentive for accept-

ing the risk associated with this new industry.

In the alligator industry, there appears to be potential for making

money, provided that production efficiencies are improved and costs are

minimized. This point is demonstrated by the financial analyses for the

low-cost farm. However, there is no evidence that this farm will achieve

the production goals specified. Therefore, every effort must be made to

increase reproduction rates, selectively breed animals for good hide,

meat, and growth rates, improve feed conversion rates, and incorporate

improved technologies. At the same time, continuing efforts must be made

to keep costs low.

While there appear to be opportunities to make money, it must be

recognized that additional quantities of meat and hides produced may

depress prices unless efforts are made to develop the markets for these












Table 19.--A comparison of internal rates of return for various types of
alligator enterprises using three sales values.a


Internal Rate of Returnb

Low Middle High
Type of Enterprise Sales Value Sales Value Sales Value

------------------Percent----------------

High-cost farm -171.00 2.34 12.69

Low-cost farm -12.99 13.30 26.33

High-cost feedlot -174.85 4.39 16.89

aThe three sales values--low, middle, and high--are $138,908, $230,912
and $322,916, respectively.
bThe internal rates of return were calculated for a period of 20 years.








36



products. This is especially true for alligator meat. The American

consumer is not accustomed to eating alligator meat, so market develop-

ment activities may have to be undertaken to ensure adequate demand at a

good price. For hides, apparently, a larger market already exists,

although some market development may be necessary to ensure a good price.


































APPENDIX A


Costs, labor requirements, and depreciation for

the first four years of operation of the high-cost alligator farm
















YEAR 1


EQUIPMENT


ITEM


Heater,util & 2nd yr bldg
Pumps and controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler, 10X16'
Freezer, 10X16'
Buckets for feed
Meat grinder
Meat saw
Male breeders
Female breeders
Total


UNIT

each
each
total
each
each
each
each
each
each
each
each
each
each
each


UNIT COST

4,000.00
1,500.00
1,000.00
4,000.00
10,000.00
10,000.00
1,800.00
7,000.00
7,000.00
2.50
2,000.00
1,500.00
600.00
500.00


NO. UNITS


TOTAL COST

4,000.00
1,500.00
1,000.00
4,000.00
10,000-00
10,000.00
1,800.00
7,000.00
7,000.00
50.00
2,000.00
1,500.00
13,800.00
34,000.00
97,650.00


BUILDINGS, ETC.


ITEM


Utility,office,inc,nur
Electric service, 3 phase
Well, 8 in.
Pond for breeders
Fence for breeding area
Total


UNIT


sq. ft.
each
each
acre
ft.


UNIT COST

35.00
12,500.00
21,000.00
14,500.00
3.50


NO. UNITS


1,200
1
1
5
3,000


TOTAL COST

42,000.00
12,500.00
21,000.00
72,500.00
10,500.00
158,500.00










39





ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Machinery repairs
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
dols.
KWH
hrs.
dols.
total


UNIT COST


0.15
0.85
0.25
1.05
1.20
0.08
0.06
5.00
0.01
500.00


NO. UNITS

38,220
91
91
700
50
48 QAn
15,000
462
137,350
1


TOTAL COST

5,733.00
77.35
22.75
735.00
60.00
3,904.00
825.00
2,311.00
1,373.50
500.00
15,541.60


LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


ACTIVITY


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding breeders
Miscellaneous
Total


28.0
7.0
2.0
0.8
1.5
3.0


4 112.0
6 112.0
2 4.0
;4 27.2
:4 51.0
i2 156.0
462.2


560.00
560-00
20.00
136.00
255.00
780.00
2,311.00















DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater,util & 2nd yr bldg
Pumps and controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler 10X16'
Freezer, 10X16'
Buckets for feed
Meat grinder
Meat saw
Male breeders
Female breeders
Utility,office,inc,nur
Electric service, 3 phase
Well, 8 in.
Pond for breeders
Fence for breeding area
Total


4,000.00
1,500.00
1,000.00
4,000.00
10,000.00
10,000.00
1,800.00
7,000.00
7,000.00
50.00
2,000.00
1,500.00
13,800.00
34,000.00
42,000.00
12,500.00
21,000.00
72,500.00
10,500.00
256,150.00


400.00
150.00
100.00
400.00
1,000.00
1,000.00
180.00
700.00
700.00
25.00
200.00
150.00
690.00
1,700.00
2,100.00
625.00
1,050.00
3,625.00
525.00
15,320.00


ITEM

















YEAR 2


EQUIPMENT


ITEM


Nursery tanks, 2X2'
Pumps and controls
Total


UNIT


each


UNIT COST

35.00
1, 509.00


NO. UNITS


TOTAL COST

2,100.00
1,500.00
3,600.00


BUILDINGS, ETC.


ITEM


UNIT


2nd year building
Polishing pond
Total


sq.- t.
each


UNIT COST

35.00
2,000.00


NO. UNITS


TOTAL COST


2,550 89,250.00
1 2,000.00
91,250.00


ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hrs.
dols.
total


UNIT COST NO. UNITS


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
0.01
500.00


66,120
1,056
1,056
4,500
50
130
52,400
30
54,550
1,033
230,200
1


TOTAL COST

9,918.00
897.60
264.00
4,725.00
60.00
195.00
4,192.00
300.00
3,000.25
5,165.00
2,302.00
500.00
31,518.85














LABOR ACTIVITIES


ACTIVITY


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding breeders
Cleaning tanks
Miscellaneous
Total


28.0
7.0
2.0
1.5
2.0
1.5
6.0
5.0


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Nursery tanks, 2X2'
Pumps and controls
2nd year building
Polishing pond
Total


2,100.00
1,500.00
89,250 00
2,000.00
94,850.00


112.0
112.0
4.0
78.0
104.0
51.0
312.0
260.0
1,033.0


560.00
560.00
20.00
390.00
520.00
255.00
1,560.00
1,300.00
5,165.00


ITEM


210.00
150.00
4,462.50
100.00
4,922.50

















EQUIPMENT


COST NO.


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
Total


each
each


4,000.00
1,500.00
2.50


COST

4,000.00
1,500.00
50.00
5,550.00


)i T U JflT ETC.


i -: COST


NO. UNITS


3rd year building


sq. ft.


30.00


8,670 260,100.00


i'Nic; -AL OPERATING i TS


ITEM


UNIT COST


Feed
Vitamins and Minerals
Medicine
Diesel for heating
.;esel for tractor
Disinfectant
Machi .. repairs
Paint for buildings
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


Ibs.
gator
gator
gals.
gals.
gals.
dols.
gals.

hrs.
dols.
total


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
0.01
500.00


NO-. UNITS


176,520
1,885
1,885E
14,904
50
580
57, :i
40
76,365
2,697
490,350
1


TOTAL COST

26,478.00
1,602.25
471.25
15,649.20
60.00
870.00
4,632.00
400.00
4,200.08
1~>485.00
4,903.50
500.00
73,251.28


Wednesday, May 16, 2007.max


ITEM


UNIT


S COST


S----------

-















LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


ACTIVITY


Egg collection from niests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding second yr. gq.uLs
Feeding breeders
Cleaning tanks
Miscellaneous
Total


28.0
7.0
2.0
3.5
2.U
5.0
1.5
26.0
10.0


112.0
112.0
4.0
182.0
104.0
260.0
51.0
1,352.0
520.0
2,697.0


560. 00
560.00
20.00
910.00
520.00
1,300.00
255.00
6,760.00
2,600.00
13,485.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
3rd year building
Total


10 4,000.00
10 1,500.00
2 50.00
20 260,100.00
265,650.00


400.00
150.00
25.00
13,005.00
13,580.00


ITEM
















YEAR 4


EQUIPMENT


ITEM


Heater, 4th y-. building
Pumps and conL.-,ls
Total


UNIT

each
each


UNIT COST

4,000.00
1,500.00


NO. UNITS


TOTAL COST

4,000.00
1,500.00
5,500.00


BUILDINGS, ETC.


UNIT COST


NO. UNITS


TOTAL COST


4th year building


sq. ft.


30.00


12,240 367,200.00


ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hrs.
dol -.
total


UNIT COST NO. UNITS


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
0.01
500.00


TOTAL COST


403,020 60,453.00
2,791 2,372.35
2,791 697.75
29,592 31,071.60
50 60.00
1,210 1,815.00
63,400 5,072.00
50 500.00
98,180 5,399.90
5,271 26,355.00
863,050 ,"A30-50
1 500.00
142,927.10


ITEM


UNIT














LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


ACTIVITY


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding -ccond yr. gators
Feeding third yr. gators
Feeding breeders
Cleaning tanks
Miscellaneous
Total


28.0
7.0
2.0
8.0
2.0
5.0
12.0
1.5
54.0
15.0


112.0
112.0
4.0
416.0
104.0
260.0
624.0
51.0
2,808.0
780.0
5,271.0


560.00
560.00
20.00
2,080.00
520.00
1,300.00
3,120.00
255.00
14,040.00
3,900.00
26,355.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater, 4th yr- building
Pumps and controls
4th year building
Total


10 4,000.00
10 1,500.00
20 367,200.00
372,700.00


400.00
150.00
18,360.00
18,910.00


ITEM


































APPENDIX B


Costs, labor requirements, and depreciation for

the first four years of operation of the low-cost alligator farm
















YEAR 1


EQUIPMENT


ITEM


Heater,util & 2nd yr bldg
Pumps and controls
Water Pump
Pick-up truck
Tractor, 35.hp.
Mower
Cooler, 10X16'
Freezer, 10X16'
Buckets for feed
Meat grinder
Meat saw
Male breeders
Female breeders
Total


UNIT

each
each
each
each
each
each
each
each
each
each
each
each
each


UNIT COST

2,000.00
1,000.00
1,000.00
10,000.00
10,000-00
1,800.00
6,000.00
6,000.00
2.00
2,000.00
1,500.00
600.00
500.00


NO. UNITS


TOTAL COST

2,000.00
1,000.00
1,000.00
10,000.00
10,000-00
1,800.00
6,000.00
6,000.00
40.00
2,000.00
1,500.00
13,800.00
34,000.00
89,140.00


BUILDINGS, ETC.


ITEM


UNIT


Utility & incubator bldg. sq. ft.
Electric service, 3 phase each
Well, 4 in. each
Pond for breeders acre
Fence for breeding area ft.
Total


UNIT COST NO. UNITS


20.00
12,500.00
1,500.00
10,000.00
3.25


BOO
1
1
4
2,700


TOTAL COST

16,000.00
12,500.00
1,500.00
40,000.00
8,775.00
78,775.00















ANNUAL OPERATING INPUTS


ITEM


UNIT


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Machinery repairs
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


Ibs.
gator
gator
gals.
gals.
dols.
KWH
hrs.
dols.
total


UNIT COST


0.15
0.85
0.25
1.05
1.20
0.08
0.06
5.00
0.01
400.00


NO. UNITS


38,220
91
91
700
40
41,300
13,000
460
94,865
1


TOTAL COST

5,733.00
77.35
22.75
735.00
48.00
3,304.00
715.00
2,301.00
948.65
400.00
14,284.75


LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


ACTIVITY


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding breeders
Miscellaneous
Total


28.0
7.0
2.0
0.8
1.5
3.0


4 112.0
16 112.0
1 2.0
;4 27.2
54 51.0
52 156.0
4AO. 2


560.00
560.00
10.00
136.00
255.00
780.00
2,301.00














DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater,util & 2nd yr bldg
Pumps and controls
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler, 8X10'
Freezer, 8X10'
Buckets for feed
Meat grinder
Meat saw
Male breeders
Female breeders
Utility,office,inc,nur
Electric service, 3 phase
Well, 4 in.
Pond for breeders
Fence for breeding area
Total


2,000.00
1,000.00
1,000.00
10,000.00
10,000.00
1,800.00
6,000.00
6,000.00
40.00
2,000.00
1,500.00
13,800.00
34,000.00
16,000.00
12,500.00
1,500.00
40,000.00
8,775.00
167,915.00


200.00
100.00
100.00
1,000.00
1,000.00
180.00
600.00
600.00
20.00
200.00
150.00
690.00
1,700.00
800.00
625.00
75.00
2,000.00
438.75
10,478.75


ITEM

















YEAR 2


EQUIPMENT


ITEM


Pumps and controls


UNIT

each


UNIT COST

1,000.00


NO. UNITS


TOTAL COST


1 1,000.00


BUILDINGS, ETC.


ITEM


UNIT


2nd year building
Polishing pond
Total


sq. ft.
each


UNIT COST

15.00
2,000-00


NO. UNITS


TOTAL COST


2,000 30,000.00
1 2,000.00
32,000.00


ANNUAL OPERATING INPUTS


ITEM


UNIT


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hrs.
dols.
total


UNIT COST NO. UNITS


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
0.01
400.00


66,120
1,056
1,056
3,360
40
120
39,400
10
45,000
1,031
125,865
1


TOTAL COST

9,918.00
897.60
264.00
3,528.00
48.00
180.00
3,152.00
100.00
2,475.00
5,155.00
1,258.65
400.00
27,376.25














LABOR ACTIVITIES


ACTIVITY


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding breeders
Cleaning tanks
Miscellaneous
Total


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


28.0
7.-0
2.0
1.5
2.0
1.5
6.0
5.0


112.0
112.0
2,0
78.0
104.0
51.0
312.0
260.0
1,031.0


560.00
560.00
10.00
390.00
520.00
255.00
1,560.00
1,300.00
5,155.00


DEPRECIATION


DEPR. LIFE TOT- COST ANN. DEPR.


Pumps and controls
2nd year building
Polishing pond
Total


1,000.00
30,000.00
2,000.00
33,000.00


ITEM


100.00
1,500.00
100.00
1,700.00

















YEAR 3


EQUIPMENT


ITEM


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
Total


UNIT

each
each
each


UNIT COST NO. UNITS


2,000.00
1,000.
2.00


TOTAL COST

2,000.00
1,000.00
40.00
3,040-00


BUILDINGS, ETC.


UNIT COST


NO. UNITS


TOTAL COST


2nd year building


sq. ft.


15.00


7,300 109,500.00


ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Labor
Electricity
Taxes and insurance
Miscellaneous
Total


UNIT


lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
hrs.
KWH
dols.
total


UNIT COST NO. UNITS


0.15
0.85
0.25
1.05
1.20
1.50
O. 0
10.00
5.00
0.06
0.01
400.00


176,520
1,976
1,976
12,120
40
560
42,400
20
2,695
50,000
238,405
1


TOTAL COST

26,478.00
1,679.60
494.00
12,726.00
48.00
840.00
3,392.00
200.00
13,475.00
2,750.00
2,384.05
400.00
64,866.65


ITEM


UNIT














LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding second yr. gators
Feeding breeders
Cleaning tanks
Miscellaneous
Total


28.0
7.0
2.0
3.5
2.0
5.0
1.5
26.0
10.0


112.0
112.0
2.0
182.0
104.0
260.0
51.0
1,352.0
520.0
2,695.0


560.00
560.00
10.00
910.00
520.00
1,300.00
255.00
6,760.00
2,600.00
13,475.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
3rd year building
Total


2,000.00
1,000.00
40.00
109,500.00
112,540.00


ACTIVITY


ITEM


200.00
100.00
20.00
5,475.00
5,795.00

















YEAR 4


EQUIPMENT


ITEM


Heater, 4th yr. building
Pumps and controls
Total


UNIT

each
each


UNIT COST NO. UNITS


2,000.00
1,000.00


TOTAL COST


1 2,000.00
1 1,000.00
3,000.00


BUILDINGS, ETC.


UNIT COST


NO. UNITS


TOTAL COST


4th year building


sq. ft.


15.00


10,300 154,500.00


ANNUAL OPERATING INPUTS


ITEM


UNIT


Feod
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Labor
Electricity
Taxes and insurance
Miscell aneous
Total


lb s.
gator
gator
gals.
gal s.
gals.
dols.
gals.
hrs.
KWH
dols.
total


UNIT COST NO. UNITS


0-15
0.85
0.25
1.05
1.20
1.50
0.08
10
5.00
0.06
0.01
400-00


403,020
2,882
2,882
24,480
40
1,100
45,400
30
5,269
55,000
395,905
1


TOTAL COST

AO,453.00
2,449.70
720.50
25,704.00
48.00
1,650.00
3,632.00
300.00
26,345.00
3,025.00
3,959.05
400.00
128,686.25


ITEM


UNIT














LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding first yr. gators
Feeding second yr. gator
Feeding third yr. gators
Feeding breeders
Cleaning tanks
Miscellaneous
Total


28.0
7.0
2.0
8.0
2.0
5.0
12.0
1.5
54.0
15.0


112.0
112.0
2.0
416.0
104.0
260.0
624.0
51.0
2,008.0
780.0
5,269.0


560.00
560.00
10.00
2,080.00
520.00
1,300.00
3,120.00
255.00
14,040.00
3,900.00
26,345.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater, 4th yr. building
Pumps and controls
4th year building
Total


10 2,000.00
10 1,000.00
20 154,500.00
157,500.00


ACTIVITY


ITEM


200.00
100.00
7,725.00
8,025.00


































APPENDIX C


Costs, labor requirements, and depreciation for

the first three years of operation of the high-cost alligator feedlot
















YEAR 1


EQUIPMENT


ITEM


UNIT


Heater,util & 1st yr
Pumps -"1 controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler, 10X16'
Freezer, 10X16'
Buckets for feed
Meat grinder
Meat saw
Total


bldg each
each
total
each
each
each
each
each
each
each
each
each


UNIT COST

4,000.00
1,500.00
1,000.00
4,000.00
10,000.00
10,000.00
1,800.00
7,000.00
7,000.00
2.50
2,000.00
1,500.00


NO. UNITS


TOTAL COST

4,000.00
3,000.00
1,000.00
4,000.00
10,000.00
10,000.00
1,800.00
7,000.00
7,000.00
50.00
2,000.00
1,500.00
51,350.00


BUILDINGS, ETC.


ITEM


UNIT


Utility and office bldg. sq. ft.
1st year building sq. ft.
Electric service, 3 phase each
Well, 8 in. each
Polishing pond each
Total


UNIT COST

35.00
35.00
12,500.00
21,000.00
2,000.00


NO. UNITS


800
2,550
1
1
1


TOTAL COST

28,000.00
.89,250.00
12,500.00
21,000.00
2,000.00
152,750.00









59




ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
SDiinfectant
Machinery repairs
Electricity
Labor
Hatchlings
Taxes and insurance
Mi scellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
gals.
dols.
KWH
hrs..
each
dols.
total


UNIT COST


0.15
0.85
0.25
1.05
1.20
1.50
0.08
0.06
5.00
15.00
0.01
500-00


NO. UNITS


27,900
965
965
4,020
50
130
50,300
54,400
718
1,000
172,350
1


TOTAL COST

4,185.00
820.25
241.25
4,221.00
60.00
195.00
4,024.00
2,992.00
3,590.00
15,000.00
1,723.50
500.00
37,552.00


ACTIVITY


Mowing grass
Preparing feed
Feeding first yr. gators
Cleaning tanks
Miscellaneous
Total


LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


1.0
0.8
2.0
6.0
5.0


3.0
39.0
104.0
312.0
260.0
718.0


15.00
195.00
520.00
1,560.00
1,300-00
3,590.00















DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater,util & 1st yr bldg
Pumps and controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler 10X16'
Freezer, 10X16'
Buckets for feed
Meat grinder
Meat saw
Utility and office bldg.
1st year building
Electric service, 3 phase
Well, B in.
Polishing pond
Total


4,000.00
3,000.00
1,000.00
4,000.00
10,000.00
10,000.00
1,800.00
7,000.00
7,000.00
50.00
2,000.00
1,500.00
28,000.00
89,250.00
12,500.00
21,000.00
2,000.00
204,100.00


400.00
300.00
100.00
400.00
1,000.00
1,000.00
180.00
700.00
700.00
25.00
200.00
150.00
1,400.00
4,462.50
625.00
1,050.00
100.00
12,792.50


ITEM

















YEAR 2


EQUIPMENT


ITEM


Heater, 2nd yr. building
Pumps and controls
Total


UNIT

each
each


UNIT COST NO. UNITS


4,000.00
1,500.00


TOTAL COST

4,000.00
1,500.00
5,500.00


BUILDINGS, ETC.


UNIT COST NO. UNITS


TOTAL COST


2nd year building


sq. ft.


30.00


8,670 260,100.00


ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Electricity
Labor
Hatchlings
Taxes and insurance
Miscellanous
Total


UNIT


Ibs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hrs.
each
dols.
total


UNIT COST


0.15
0.85
0.25
1.05
1.20
1-50
0.08
10.00
0.06
5.00
15.00
0.01
500.00


NO. UNITS


138,300
1,794
1,794
14,424
50
580
55,800
40
76,215
2,382
1,000
437,950
1


TOTAL COST

20,745.00
1,524.90
448.50
35,145.20
60.00
870.00
4,464.00
400.00
4,191.83
11,910.00
15,000.00
4,379.50
500.00
79,638.93


ITEM


UNIT














LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


ACTIVITY


Mowing grass
Preparing feed
Feeding first yr. gators
Feeding second yr. gators
Cleaning tanks
Miscellaneous
Total


1.0
2.8
2.0
5.0
26.0
10.0


3.0
143.0
104.0
260.0
1,352.0
520.0
2,382.0


15.00
715.00
520.00
1,300.00
6,760.00
2,600.00
11,910.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Hc ter, 2nd yr. building
Pumps and controls
2nd year building
Total


4,000.00
1,500.00
260,100.00
265,600.00


400.00
150.00
13,005.00
13,555.00


ITEM
















YEAR 3


EQUIPMENT


ITEM


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
Total


UNIT

each
each
each


UNIT COST

4,000.00
1,500.00
2.50


NO. UNITS


TOTAL COST

4,000.00
1,500.0n
50.00
5,550.00


BUILDINGS, ETC.


UNIT COST


NO. UNITS


TOTAL COST


3rd year building


sq. ft.


30.00


12,240 367,200.00


ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for buildings
Electricity
Labor
Hatchlings
Taxes and insurance
Miscellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hr-s.
each
dols.
total


INIT COST NO- UNITS


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
15.00
0.01
500.00


364,800
2,700
2,700
29,112
50
1,210
61,300
50
98,030
4,956
1,000
810,700
1


TOTAL COST

54,720.00
2,295.00
675.00
30,567.60
60.00
1,815.00
4,904.00
500.00
5,391.65
24,780.00
15,000.00
8,107.00
500.00
149,315.Z


ITEM


UNIT














LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


Mowing grass
Preparing feed
Feeding first yr. gators
Feeding second yr. gators
Feeding third yr. gators
Cleaning tanks
Miscellaneous
Total


1.0
7.3
2.0
5.0
12.0
54.0
15.0


3.0
377.0
104.0
260.0
624.0
2,808.0
780.0
4,956.0


15.00
1,885.00
520.00
1,300.00
3,120.00
11, 40.00
3,900.00
24,780.00


DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Heater, 3rd yr. building
Pumps and controls
Buckets for feed
3rd year building
Total


10 4,000.00
10 1,500.00
2 50.00
20 367,200.00
372,750.00


400.00
150.00
25.00
18,360.00
18,935.00


ACTIVITY


ITEM

































APPENDIX D


Costs, labor requirements, and depreciation for

the alligator hatchling enterprise
















COSTS


EQUIPMENT


ITEM


UNIT


Nursery tanks, 2X2'
Heater, utility building
Pumps and controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler, 8X10'
Freezer, 8X10'
Buckets for feed
Meat Qrinder
Meat saw
Male breeders
Female breeders
Total


each
each
each
total
each
each
each
each
each
each
each
each
each
each
each


UNIT COST

35.00
2,000.!
1,000.00
1,000.00
600.00
10,000.00
10,000.00
1,800.00
4,000.00
4,000.00
2.50
2,000.00
1,500.00
600.00
500.00


NO. UNITS


TOTAL COST

2,100.00
2,000.00
2,000.00
1,000.00
600-00
10,000.00
10,000.00
1,800.00
4,000.00
4,000.00
50.00
2,000.00
1,500.00
13,800.00
34,000.00
29,250.00


BUILDINGS, ETC.


ITEM


Utility,office,inc,nur
Electric service, 3 phase
Well, 4 in.
Pond for breeders
Fence for breeding area
Total


UNIT


sq. ft.
each
each
acre
ft.


UNIT COST

35.00
12,500.00
1,500.00
14,500.00
3.50


NO. UNITS


1,200
1
1
5
3,000


TOTAL COST

42,000.00
12,500.00
1,500.00
72,500.00
10,500.00
139,000.00















ANNUAL OPERATING INPUTS


ITEM


Feed
Vitamins and Minerals
Medicine
Diesel for heating
Diesel for tractor
Disinfectant
Machinery repairs
Paint for building
Electricity
Labor
Taxes and insurance
Miscellaneous
Total


UNIT

lbs.
gator
gator
gals.
gals.
gals.
dols.
gals.
KWH
hrs.
dols.
total


UNIT COST


0.15
0.85
0.25
1.05
1.20
1.50
0.08
10.00
0.06
5.00
0.01
250.00


NO. UNITS


38,720
91
91
700
50
70
40,000
200
15,000
469
126,050
1


TOTAL COST

5,808.00
77.35
22.75
735.00
60.00
105.00
3,200.00
2,000.00
825.00
2,346.00
1,260.50
250.00
16,689.60


ACTIVITY


Egg collection from nests
Checking incubator
Mowing grass
Preparing feed
Feeding hatchlings
Feeding breeders
Cleaning tanks
Miscellaneous
Total


LABOR ACTIVITIES


HRS./WK. WKS./YR. YEARLY TOT. YEARLY COST


28.0
7.0
2.0
0.8
0.5
1.5
3.0
3.0


112.0
112.0
4.0
27.2
1.0
51.0
6.0
156.0
469.2


560.00
560.00
20.00
136.00
5.00
255.00
30.00
780.00
2,346.00















DEPRECIATION


LIFE TOT. COST ANN. DEPR.


Nursery tanks, 2X2'
Heater, 1st yr. building
Pumps and controls
Office equipment
Water Pump
Pick-up truck
Tractor, 35 hp.
Mower
Cooler, 8X10'
Freezer, 8X10'
Buckets for feed
Meat grinder
Meat saw
Male breeders
Female breeders
Utility,office,inc,nur
Electric service, 3 phase
Well, 4 in.
Pond for breeders
Fence for breeding area
Total


2,100-00
2,000.00
.2,000.00
1,000.00
600.00
10,000.00
10,000.00
1,800.00
4,000.00
4,000.00
50.00
2,000.00
1,500.00
13,800.00
34,000.00
42,000.00
12,500.00
1,500.00
72,500.00
10,500.00
227,850.00


210.00
200.00
200.00
100.00
60.00
1,000.00
1,000.00
180.00
400.00
400.00
25.00
200.00
150.00
690.00
1,700.00
2,100.00
625.00
75.00
3,625.00
525.00
13,465.00


ITEM




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