Economics of Food Factories

Day 1,622, 11:01 Published in Ireland Ireland by CaffeineHit

In my last article I examined the break-even point for food raw material companies so in this one I will move on to food factories.

I have calculated the costs/benefits based on upgrading from the previous Q of the company, used a gold cost of 1850IEP and a food price of 0.25 per unit.

Communal System
Whereby the initial capital is put up by all those in the group, they work for free and share in the profits equally.



It is probably obvious but the higher the Q rating the higher the monthly gold return that each member will get. However, the higher Q rating companies take far longer to repay the initial cost. A Q6 company returns in initial costs after 413 days (14 months, so definitely for players who are thinking long-term).

The Q2 & Q3 companies look the most appealing to me, with the initial capital returned after 77 and 96 days respectively. After that they generate an income of 2.6g and 3.9 gold per member per month.

For-Profit

Next a profit version paying a market salary of 180IEP per day per employee.



Here the payback of initial capital are far longer ranging from 7 months for a Q3 company to about 20 months for a Q6 food company.

The payback is much better though with 6.8 gold per month for a Q3 and 37 gold per month for a Q6 company (that is if you are still here in January 2014!)

My Plan
Personally I think I would favour a Q3 food factory and the communal approach.
That way by initial money is returned in less than 3 months and after that I get the modest income of just under 4 gold per month.

Dreaded