An old rice mill should not automatically be replaced.
But it should not automatically be repaired either.
The correct decision depends on the economic loss caused by the machine.
Continue repairing when:
- breakdowns are infrequent
- major structural components remain sound
- rice quality is acceptable
- required capacity is still sufficient
- parts are easy to obtain
- mechanics understand the machine
Consider replacement when:
- downtime is increasing
- the same parts fail repeatedly
- output has fallen substantially
- high broken-rice levels reduce selling price
- spare parts are difficult to find
- new buyers demand better finished rice
- business volume has exceeded machine capacity
Measure downtime, not only repair cost
Suppose a repair costs only $100.
That sounds cheap.
But if the machine loses several profitable milling days during peak season, the true economic cost may be much higher.
Calculate:
Repair cost + lost milling income + idle labor cost + lost customers + broken-rice value loss.
Evidence from Fogera
The 2024 Fogera survey found that surveyed N90 machines experienced an average of around 6.92 breakdown incidents in 2023.
Average reported annual repair, maintenance and spare-part spending for N90 was approximately 33,150 ETB, with very wide variation among operators.
These figures should not be applied to every N90 owner.
Their value is that they show maintenance is a real business cost that should be measured.
Compare the annual costs
Annual Repairs
+
Downtime Loss
+
Quality Loss
+
Lost Capacity
=
True Cost of Existing Machine
Compare this with:
Annualized Cost of Replacement
-
Additional Profit
If a new machine can recover more saleable whole rice, process more paddy or avoid downtime, a higher purchase price may still produce better economics.