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Calculating Value of Blending Beans
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farmer4321
Posted 1/14/2019 17:07 (#7245013 - in reply to #7244806)
Subject: RE: Calculating Value of Blending Beans


What were the moisture levels and actual weights of the six individual loads?
There are a couple of different ways to calculate the gain or lost.
1) First is the weighted average discount. Multiply the actual discount for each load by the weight of the load, total the six values and divide by the total weight of all six loads. That's the weighted average discount.
2) Now,ordinarily all those 16.5% beans would be rejected, thus non-salable but let's assume that you could sell them with the highest discount (not quite the same thing).
Multiply the total weight times 60% and apply the highest discount (6.9%), multiply the total wt times 40% and apply the zero discount or full price. Add those two figures together. That's approximately what you would have receive selling them unblended, that average discount would have been 4.14%
3) Let's assume you could perfectly blend the wet & dry beans. Then 40% @11.5% is 4.6 plus 60% @ 16.5% is 9,9 for an average perfectly blended moisture of 14.5% moisture beans. The discount for 14.5% beans is 3.45. You can see that perfectly blended beans has lower discount (3.45) that just the ave discount (4.14).
Since your loads weren't perfectly blended you'll probably be some where in the middle.



Edited by farmer4321 1/14/2019 17:14
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