aGroChips Poultry Bedding
aGroChips is a recycled alternative manufactured poultry bedding that improves poultry performance and the litters’ fertilizer value while reducing pollution and CO2.
Each year US turkey and broiler producers use $782 million of bedding consisting mostly of shavings / sawdust and rice hulls. The quality of that bedding influences the health and performance of these birds (Malone et al, 1983a). Unfortunately, as in most countries, bedding supplies are dwindling in the United States (Pohl, Steve 2002); the price of shavings bedding is increasing as higher value uses such as cogeneration and particleboard depletes the supply. Because of this shortage, poultry growers in the United States clean out houses and apply fresh litter bedding on an average of once a year; while their European counterparts require growers to clean out the litter after each flock or five (5) times a year. With frequent clean out, aGroChips bedding creates a living environment with reduced ammonia and manure odor inside and outside the chicken houses.
This Southeast regional business model is built around an abundance of low cost materials and 47% of the broiler and 26% of the turkey total US market all within a 400-mile radius. (NC, SC, GA, TN, MS, KY and mainland VA license region.) License is supported by US Patents and trade secrets.
By using the aGroChips bedding system, integrators can save $711 Million each year, increase the birds’ body weight and reduce feed conversion. Feed costs have doubled over the past two years. The yearly bedding market for the Southeast region is $392 Million. Once established, the margin has room to increase.
The projected first year net profit before taxes on a 10% market share is $3.504 Million after payoff of total investment of $2.882 Million and includes license fees and royalties paid; the second year net profit is $5.624 Million on the same 10% market penetration. (After SG&A, before taxes and marketing) (Land brick and mortar or operating capital not included.)
aGroChips bedding goes beyond just drying the manure, it sequesters the nitrogen and phosphorus. The traditional view of bedding is a light, absorbent material that encapsulates the manure and dries quickly. aGroChips bedding supplies minerals that naturally react with the manure to maintain the manure’s uric acid water insoluble. The manure nitrogen and phosphorus can then be used to make higher value organic fertility products containing organic nitrogen that can build soil health and grow organic crops that bind carbon dioxide into both the plants and soil.
Birds do not eat aGroChips. Birds eat most beddings, they do not eat aGroChips. In the aGroChips model, the birds produced are healthier, bigger birds that eat less feed and result in higher percentage of USDA grade “A” birds. This data is based on published NCSU test data on aGroChips.
aGroChips is an investment that delivers a higher value processed fertility product at the end of the flock cycle. Conservation of manure nitrogen represents a savings of more than $1.2 billion in natural gas use for “synthetic ammonia fertilizers.” All the carbon dioxide is released into the air as a byproduct of ammonia synthesis. The
potential US market value of manure fertility is in excess of $4.5 billion sold at wholesale synthetic fertilizer prices. Wal-Mart sells organic poultry litter-based fertilizer for $1 per pound retail value of $78 billion. aGroChips create a higher value “organic fertilizer” that can be used to grow a biomass (solar collection) for renewable energy generation
and helps power companies to meet the North Carolina Senate Bill 3, which mandates the use of poultry waste to create renewable energy generation aGroChips Meets the EPA Emissions Regulations. However, as aGroChips sequesters nitrogen from the manure, it reduces ammonia emissions. aGroChips is a tool to help owners of the Concentrated Animal Feed Operations meet new EPA Emissions Regulations.