Costing A Fermentation: What A Typical Report Needs To Contain.

Cost analysis of a fermentation process involves assessing the expenses incurred during the production of a product using fermentation. Fermentation is a biological process in which microorganisms such as bacteria, yeast, or fungi are used to convert raw materials into valuable products like food, beverages, pharmaceuticals, and biofuels. The cost analysis helps businesses and researchers understand the financial implications of fermentation and identify areas for optimization and cost reduction. 

Key Aspects of Fermentation Cost Analysis

1. Raw Materials: This includes the cost of all ingredients required for the fermentation process. It may involve sugars, starches, nutrients, minerals, pH adjusters, gases such as oxygen and other media necessary for the growth and metabolism of the microorganisms.
2. Labor: Labor costs are associated with the manpower required to operate and monitor the fermentation process. This includes skilled technicians, supervisors, and any other personnel involved in the process. Generally, the labour cost is less than 10% of the operating costs for the fermentation based on accepted estimates.
3. Equipment: The cost of fermentation equipment, including fermenters, bioreactors, agitators, pumps, and monitoring instruments, should always be considered. Additionally, maintenance and depreciation costs for these assets should be factored in.
4. Utilities: Energy consumption, such as electricity and steam, is essential in running the fermentation process. The cost of utilities directly affects the overall production cost.
5. Fermentation Media Preparation: The cost of preparing the fermentation media, which involves sterilization, mixing, and conditioning, should be accounted for.
6. Fermentation Time: The duration of the fermentation process influences labour, energy, and other overhead costs. Longer fermentation times may lead to higher expenses.
7. Downstream Processing: After fermentation, there might be additional steps required to purify, separate, and concentrate the desired product. These downstream processing costs should be included in the analysis.
8. Quality Control: To ensure the product meets desired standards, quality control measures and associated costs for testing and analysis should be considered.
9. Waste Disposal: Proper disposal of fermentation by-products or waste materials is necessary and may involve associated costs.
10. Overhead Costs: Indirect expenses, such as administrative costs, facility maintenance, and other general expenses, should be allocated to the fermentation process.
11. Scale of Production: The scale of fermentation, i.e., the volume of production, can significantly impact the cost analysis. Large-scale production may lead to economies of scale and lower production costs.
12. Yield and Productivity: The yield of the final product and the productivity of the fermentation process will influence the cost analysis. Higher yields and productivity can lead to more cost-effective production.

An executive summary should include the following:

• total capital investment
• operating cost on a yearly/annual basis
• possible savings through particular initiatives on a yearly/annual basis
• the main revenue per year
• other revenues per year
• total revenue based on the sum of the main revenue plus other revenues.
• a cost basis annual rate (kg of product or some other unit of production per year).
• unit production cost per year
• net unit production cost
• unit production revenue
• gross margin as a percentage
• return on investment (ROI) as a percentage
• payback time in years
• IRR (internal rate of return) after taxes as a percentage
• NPV (net preset value) (at a particular rate of interest). Typical values range between 6 and 8%.

Some Typical Costs

Fermenters will cost between $100 and $500,000. The range of the price depends on the level of sophistication required and how it will be used. Beer and cider producers usually need much cheaper sets of fermentation equipment than a producer of secondary metabolites. The pricing may well reflect the quality of the tank required for the job. The larger the size of vessel the more costly it will be.

Second-hand fermenter vessels with insulation with a volume of 100 litres to 3000 litres will cost between $600 and $1000.

Once all these costs are accounted for, the total cost of fermentation can be calculated. The cost analysis helps businesses determine the profitability of their fermentation-based processes, identify cost drivers, and make informed decisions for process optimization and cost-saving measures.

Typical Producers of Fermentation Vessels

1. Ss Brewtech: Specializes in stainless steel brewing equipment, including fermentation vessels, for the craft brewing industry.
2. Blichmann Engineering: Produces a wide range of brewing equipment, including fermentation vessels, for homebrewers and craft breweries.
3. Speidel: A German company known for its high-qualityntific stainless steel fermentation tanks and equipment for winemaking and brewing.
4. Flextank: Offers various fermentation vessels and storage solutions, including stainless steel, plastic, and oak barrels, primarily for winemaking.
5. GW Kent: Supplies fermentation vessels and a comprehensive range of brewing equipment for commercial breweries.
6. JVNW (JV Northwest): Specializes in manufacturing stainless steel fermentation tanks and brewing equipment for commercial breweries.
7. Alpha Brewing Operations: Designs and manufactures stainless steel fermentation vessels and other brewing equipment for small and medium-sized breweries.
8. DME Brewing Solutions: Provides a range of brewing equipment, including fermentation vessels, for craft breweries and beverage producers.
9. Criveller Group and Criveller California: Offers a wide variety of fermentation tanks and equipment for the wine, beer, and beverage industries.
10. IC Filling Systems: Provides fermentation vessels and equipment for wine, cider, and other beverage production.
11. Ziemann Holvrieka: Specializes in large-scale fermentation vessels and tanks for the brewing industry.
12. Paul Mueller Company: Offers stainless steel fermentation vessels and processing equipment for various industries, including brewing and food processing.
13. Stout Tanks and Vessels
14. Schaefer Container Systems
15. Letina
16. Portland Kettle Works
17. Mueller Company.

The main manufacturers of bioreactors are the following:

1. Sartorius (Germany): A leading supplier of laboratory and production-scale bioreactors used in biopharmaceutical research and manufacturing.
2. Thermo Fisher Scientific: Offers a range of bioreactors and fermentation systems for bioprocessing applications.
3. Eppendorf: Provides bioreactors and fermenters suitable for research and process development in biotechnology.
4. Pall Corporation: Offers bioreactors and single-use bioprocessing systems for various biotech applications.
5. Applikon Biotechnology (Getinge Life Sciences): Specializes in advanced bioreactor systems and process control software for biotech industries.
6. Merck Millipore (now part of MilliporeSigma): Provides bioreactors and other equipment for bioprocessing and biopharmaceutical manufacturing.
7. Bioengineering AG (Switzerland): Offers a range of bioreactors and cell culture systems for research and bioprocessing.
8. BBI-Biotech: Specializes in bioreactors, fermenters, and related equipment for laboratory and pilot-scale applications.
9. BioFlo® by New Brunswick (Eppendorf): Offers a line of benchtop and pilot-scale bioreactors for cell culture and microbial fermentation.
10. Pierre Guerin (acquired by Sartorius Stedim Biotech): Known for its bioreactors and bioprocess equipment used in the biopharmaceutical industry.

Amendment: Manufacturers of equipment added to original post from 1st July 2022.