Miller Hay
Alfalfa Industry
Miller Hay: Unlocking Profit From Unused Resources
Challenge:
Miller Hay faced the challenge of excess alfalfa bi-products, limited to selling $180-ton bales of hay. This surplus presented a significant financial constraint, restricting their revenue potential.
Solution:
With the assistance of CME, Miller Hay implemented a comprehensive solution to convert surplus alfalfa into lucrative opportunities. A strategic investment of $500,000 was made in essential equipment, including a bale chopper, hammermill, pellet mill, cooler, screener, and bagger.
Project Details:
Total project cost: $500,000. The budget covered the acquisition of essential machinery, ensuring a seamless transition from surplus alfalfa to high-value alfalfa pellets.
Outcome:
By leveraging CME’s innovative solutions, Miller Hay successfully transformed surplus alfalfa into premium alfalfa pellets, fetching $600 per ton when bagged. With a processing capacity of 3 tons per hour, they achieved a $300 per ton margin after costs. This strategic investment translated into substantial daily revenue, with an average of $7,500 generated from alfalfa pellet sales.
