Overview
Southeast Conference Pellet Mill Business Plan
This study was conducted for the Southeast Conference (SEC), based in Juneau, Alaska, which is an economic development organization with the mission to “undertake and support activities that promote strong economies, healthy communities, and a quality environment in Southeast Alaska.” Northern Economic assisted SEC with the development of a business plan outlining startup and operational steps for a wood pellet mill with capacity to generate 1,000 pounds of pellets per hour with a single trained operator at an industrial park on Gravina Island west of Ketchikan.
The Project Report addressed the management and organizational structure, production processes, biomass sources, competitors, and suppliers, along with capital and variable costs. The team also conducted a SWOT analysis and a financial analysis, which included a break-even analysis which sought to either: 1) find the minimum selling value for a given level of production that will cover all costs (fixed and variable), or 2) find the minimum variable cost required for assumed selling value, level of production, and fixed cost estimate.