September 12, 2012

How To Bring Algae To Market

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OK, so you’re growing algae like gangbusters.

You’ve researched your market, you know which algae strains sell for the highest dollar.

You know how much algae you can produce.

You’ve built your PBR, (or open pond) it’s working way better than expected.

Now what do you do with it?

If you’ve gotten to the point above and you’re asking yourself that question, you haven’t been listening and you missed the boat. If you haven’t gotten to the point above then you’re lucky to be reading this email. :+)

That is the FIRST question you should be asking, not the last.

In any business venture the primary question you should understand is how to market and sell your product. The answer determines the course of action for everything that follows.biofuels pyramid

EX: Marketing to biodiesel producers is going to be completely different than health food consumers. It will involve different volumes of algae, different production tools, even a completely different sales mindset.

To help you understand this critical step, picture a pyramid. The bottom third of that pyramid, we’ll label “biofuels.” That’s because it takes the most volume (production) and dollar for dollar, you’ll also get the lowest price per pound.But you’ll also enjoy the most buyers as well.

Why?

Because 1.) For the algae to be useable in biofuels, you have to add a more difficult harvesting step as well as the extraction step to render it into useable oil.You’ll also need to produce massive volumes of algae to make it pay.

2.) Adding that harvesting/extraction step(s) means more volume, more time, more equipment, to arrive at a sell-able product.

On the second tier of the pyramid, we’ll call that animal feed/fish feed/fertilizer.

Pound for pound, it is worth more. It still has a huge market, but there is no costly oil extraction step involved. Depending on the strain involved, you may still have harvesting challenges to overcome. On the other hand, your chances of finding native algae growing wild and free for the taking just went up by 100%. It would still need “down-stream processing” or a “value added” process to make it worth more money but you’ve sidestepped all the major hurdles and challenges of biofuels. It’s almost straight “farming.”

At the apex of the pyramid well call that health food/bio-chemicals/cosmetics

It’s here you’ll find the biggest bang for your buck. You grow the least amount of algae, and make the most money. Because cosmetic, health food, and chemical companies will pay big bucks for the right kind of ingredients. Omega-3 oils are at a premium both in dollars and markets.

Of course, there are a lot more niches and sub-niches that could go into this than I’m outlining here. I’m scratching the surface and simplifying for the benefit of illustrating my point.

So Now I’ll ask the mind-blowing question…

What if you could produce all three types of products in the pyramid?

Do you think that would improve your chances of success?

Yes, it’s possible.

As evidence of the coming explosion in home cultivated algae farms, Algae Industry Magazine has an interesting article today on “Algae Microfarming” citing…

“Many people have asked “How can I grow algae?” Gardeners, farmers and algaepreneurs want to grow algae without deep scientific expertise, experience and knowledge. In fact, small-scale algae farming has been tested for 30 years all over the world. Innovative, inexpensive and efficient small systems have been operating in villages in the developing world. In France there are over 100 algae microfarmers, and a school curriculum for growing algae. These small growers are selling their own products directly in their local region.”

In a world-wide climate of massive unemployment, “down-sizing,” “right-sizing,” and outsourcing, few opportunities exist today to create a lasting income that can serve your family for generations, help the global village, while at the same time, contribute to saving the environment. The Algae Revolution presents just such an opportunity.

You can get all the details below

A4E book cover2 order now

The “Algae Revolution” has begun.

PS…As you know, timing is everything in business. And as in this case, there’s no time to lose. So if you have any interest whatsoever, now is the time to take action. Before it slips your mind and before it’s too late.


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