Estimation of Minimum Sale Price


The minimum sale price represents the final product price that would allow potential producer to just cover all cost (production, transportation and miscellaneous). If the actual price received is higher than the minimum price required, the producer is making positive profits. If the actual price received is smaller than the minimum price, the producer is losing money.



FishTran Highlights:



  • International and English systems of measurement;


  • Help with estimation of fish production, processing and transportation costs.



    • Producer Information Required To Use This Software:



  • Production / processing cost (help with estimation is provided)


  • Transportation cost (help with estimation is provided)


  • Roundtrip distance (distance to and from a terminal market)


  • Shipment weight


  • Parking, toll, and other miscellaneous trip expenses (if any)



    • Estimation Procedure



    Minimum sale price equals the sum of production and transportation costs:

    Profit

    Per pound (kilogram) production costs may be provided by the user directly, or estimated based on user-specified production / processing cost components ("help with..." options).
    In turn, per pound (kilogram) transportation cost are based on transportation distance, shipment weight, and per mile (kilometer) transportation cost:

    Per Lb Tr Cost

    Help with estimation of per mile (kilometer) transportation cost is provided.