Annual worldwide pork wholesale sales are $400 billion. China has about 50% of the world population of hogs and consumes about twice the U.S. consumption per capita. Meat protein continues to be in demand in China with a growing middle class, and the conversion from thousands of small scale farmers to larger operations continues.
China's Central Government has subsidized the creation of large scale hog farms, but is short of the agricultural lands needed for economical disposal of liquid manures. Chinese efforts have stalled due to a shortage of land for manure disposal. ATD Waste Systems believes it can help solve this problem.
ATD has designed a system to allow farmers to stop discharging untreated waste to the environment, allowing them to take water out of their manure, treat it, feed it back to their animals and make the rest into a salable organic based fertilizer. ATD has tested its various process steps in the lab and in the field and is working to commercialize its system.
ATD requires funding to complete design of its portable liquid treatment module for demonstration. It plans to license the technology with a one-time fee for 20 years with annual after sales service through remote monitoring. It plans to be cash flow positive with its first sale. The fee is based on capacity and approximates 8% of construction costs in Canada or approximately $450 per acre of the land otherwise required for manure disposal. Return on investment is dependent on fertilizer sales which at current levels should return investment and interest within 5 years.
The company is optimistic about the worldwide market for its products, with Russia just announcing new large scale hog facilities and the Ukraine continuing to expand. International potential is also seen in Brazil, India and other countries as preference for animal protein increases.