What is the average start-up cost for equipment in a small scale ("hobby") production?
Let’s assume you plan on 150 taps (about 40-50 gallons of syrup) and are starting out with new equipment. We will also assume you have a building to use as a sugar house. The approximate costs are:
Equipment
Cost
Evaporator, wood fired
$1995
Tubing, $4 per tap X 150 taps
$600
Tubing washer
$200
Gasoline-powered tapper
$400
300-gallon plastic storage tank
$410
Filter material
$50
Accessories/miscellaneous
$300
TOTAL
$4000
Now assume that you sell the 40 to 50 gallons of syrup at $32 per gallon for a total revenue of $1300 to $1600 for the year. Then assume a 50% gross profit or $800 per year. The break even cash flow year is $4000/$800 = year 5. Not really a good deal if your only reason for going into the maple business is profit! Used equipment would reduce the capital cost by 30 to 75%.
How many taps would I need to produce 20 gallons of syrup per year?
A rule of thumb is 1/3 gallon of syrup per tap. Thus, you would need about 60 taps to produce 20 gallons of syrup.