I know how you arrived at that number. But as was already pointed out, you are assuming a) that the cost of goods for animal product is proportionate to the overall cost of goods b) that the fulvic acid cost is the same for the animal product as the plant product (which is highly unlikely given that the animal product is powder-based.)
jonathan: So, do you agree with the $40,000/ton cost of fulvic acid? If so, please explain (with numbers) how a ton of the animal product can cost less than $16,000/ton, assuming that 40% of the animal product is fulvic acid. Please show your assumptions about costs (raw materials, direct labor, overhead, etc).
The fulvic acid cost (calculated per ton of fulvic acid) is the same for the animal product as the plant product, as it is produced using identical processes and input materials (as described in Yongye's SEC filings and Yongye's patent). The crop product simply uses only a little bit of it (it is duluted in water to 5% concentration), while the animal product uses a lot if it (35-45% of weight content). So the cost of the fulvic acid contained in a ton of crop/plant product is about $2,000 while the cost of the fulvic acid contained in a ton of animal product is about $16,000.