Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    B. Plan VermiCompost

    Uploaded by

    sajalpcc
    The document proposes producing and selling vermi-compost, an organic fertilizer made from worm excrement, as a solution to Bangladesh's fertilizer crisis. Vermi-compost is cheaper than chemical fertilizers, environmentally friendly, and can increase crop yields by 10-40%. A business plan estimates that a facility producing 60,000 kg of vermi-compost monthly could generate a profit of 231,000 taka. The document argues that vermi-compost has strong market potential due to demand for fertilizers, low production costs, and environmental benefits over chemical alternatives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd

    B. Plan VermiCompost

    Uploaded by

    sajalpcc
    3K views4 pages
    The document proposes producing and selling vermi-compost, an organic fertilizer made from worm excrement, as a solution to Bangladesh's fertilizer crisis. Vermi-compost is cheaper than chemical fertilizers, environmentally friendly, and can increase crop yields by 10-40%. A business plan estimates that a facility producing 60,000 kg of vermi-compost monthly could generate a profit of 231,000 taka. The document argues that vermi-compost has strong market potential due to demand for fertilizers, low production costs, and environmental benefits over chemical alternatives.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document proposes producing and selling vermi-compost, an organic fertilizer made from worm excrement, as a solution to Bangladesh's fertilizer crisis. Vermi-compost is cheaper than chemical fertilizers, environmentally friendly, and can increase crop yields by 10-40%. A business plan estimates that a facility producing 60,000 kg of vermi-compost monthly could generate a profit of 231,000 taka. The document argues that vermi-compost has strong market potential due to demand for fertilizers, low production costs, and environmental benefits over chemical alternatives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views4 pages

    B. Plan VermiCompost

    Uploaded by

    sajalpcc
    The document proposes producing and selling vermi-compost, an organic fertilizer made from worm excrement, as a solution to Bangladesh's fertilizer crisis. Vermi-compost is cheaper than chemical fertilizers, environmentally friendly, and can increase crop yields by 10-40%. A business plan estimates that a facility producing 60,000 kg of vermi-compost monthly could generate a profit of 231,000 taka. The document argues that vermi-compost has strong market potential due to demand for fertilizers, low production costs, and environmental benefits over chemical alternatives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Value Proposition:

    Offering ‘Vermi-Compost’- an organic fertilizer commercially available first in


    Bangladesh by converting organic waste which will meet the fertilizer crisis in an
    environment friendly way.

    Agriculturally dependent Bangladesh needs 3375.52 thousand metric tons of fertilizer for every
    year to keep up the backbone of the economy. Only 87% of total fertilizer demand of the
    country is fulfilled. Out of that, local manufacturers provide 77% and the rest 23% is imported
    from abroad. We want to come up with a domestic solution to this problem that is Vermi-
    compost.

    Vermi-compost is nothing but the excreta of earthworms, which is rich in humus and nutrients.
    We can rear earthworms artificially, by feeding these earthworms with biomass and watching
    properly the food (biomass) of earthworms, we can produce the required quantities of vermi-
    compost. Vermi-compost is an excellent, environment friendly, nutrient-rich organic fertilizer
    and soil conditioner. Nobody has ever thought about its commercial growth prospects here in
    Bangladesh. Our goal and objective is to develop a profitable business operations by-

     Manufacturing and selling the vermi-compost which is very much cheaper in


    comparison to chemical fertilizers (so everyone affords to buy it).
     Reducing the environment pollution (due to chemical fertilizers & waste materials) at
    the same time.
     Introducing vermi-compost as a supporting tool for land management.
     Supporting waste management in the way of turning waste into fertilizer.
     Helping power management with least power consumption (almost none) in producing
    fertilizers.
     Protecting and increasing the fertility of soil as well as agricultural production to the
    multiple extents.
    To understand how essential it is to apply vermi-compost to fulfill the demand of fertilizers and
    how much business growth potentiality it holds in our country, some contrasts are given below-

    Current Situation Approximate effects of using Vermi-compost

    Total cultivable land- 8.774 million hectares Total cultivable land-8.774 million hectares

    Chemical fertilizer used in cultivable land: Vermi-compost used in cultivable land:


    Total amount- 3375.52 thousand metric tons Total amount- 3375.52 thousand metric tons
    Total cost- 916, 331, 50000 Tk. Total cost-27004160000 Tk.

    Fall of fertility of land due to chemical Recovery & improvement of fertility of land
    fertilizer: due to chemical fertilizer:

    Reduces 5-36% fertility of land It improves soil structure, texture aeration &
    water holding capacity & overall fertility.

    Color, Flavor, Taste: Color, Flavor, Taste:


    Deteriorated Remains unchanged.

    Productivity Productivity Increase:


    Apparently, increases productivity in short 10-40% In grain yield
    term but decreases the fertility of the land 15-30% In vegetable yield
    which consequently decreases productivity in
    the long run.

    The raw materials and component needed to produce vermi-compost are-

    i) Worms
    ii) Garbage (cow dung, bio slurry, vegetable waste, dry leaves, crop residues, weed
    biomass, biodegradable portion of urban and rural waste)

    And the process involves putting bio-waste into the bowl after heaped under sun about 7-10
    days and be chopped. After that, the cow dung is sprinkled to the heap. A thin layer of half
    decomposed cow dung is to be placed at the bottom of the bowl. Then the chopped weed
    biomass and partially decomposed cow dung is placed layer wise in the bowl. Bio-waste and cow
    dung ratio is 60:40 on dry weight basis. Finally, 2/3 kg earth worms are released in per ton of
    biomass.
    The government of Bangladesh is trying to reduce the environment pollution due to chemical
    fertilizers & waste materials, at the same time to reduce scarcity of fertilizers. Vermi-compost
    might be the best probable solution to this problem. So, we expect to get all types of help from
    the government to cover the regulatory framework. As vermi-compost has high growth
    potentiality and low risk in Bangladesh, we can easily get loans and helps from the banks and
    other financial organizations if needed.

    A gross calculation for producing 60,000 kg fertilizer per month is shown-

    In setting up a single plant,

    Item Quantity / Dimension Cost per unit Total


    Land Varied Varied Varied
    Building House 1 Varied Varied
    Buying Worm 500 kg 1,500 Tk 750,000
    Mud made bowl 900 180 Tk 162,000
    Other fixed Cost 80,000
    Varied Amount cost of Land, Building + 992,000 Tk

    Variable Cost:

    Raw Material Quantity Cost per unit Total Cost


    Cow dung 80,000 kg 0.50 Tk 40,000 Tk
    Kitchen Waste 60,000 kg 1 Tk 60,000 Tk
    Leaves 40,000 kg 1 Tk 40,000 Tk
    Hay 20,000kg 4 Tk 80,000 Tk
    Labor Cost 3,800 hr 25 Tk 95,000 Tk
    Transportation cost 5,000 Tk
    Other variable cost 4,000 Tk
    3,24,000 Tk

    Monthly Income from selling 60,000 kg Vermi-compost and new grown/additional earth worms
    (earth worm grows so rapidly: 20,000 worms take only 24 months to become 500,000):

    Materials Quantity Price per unit Revenue


    Selling Vermi-Compost 60,000 8 Tk 4,80,000 Tk
    Selling Worms 50kg 1500 Tk 75,000 Tk
    5,55,000 Tk

    So, monthly profit in this project after deducting all variable costs is (555,000-324,000)

    = 231,000 Tk
    We will enter the market with “Market Penetration” strategy. We can offer this vermi-compost
    at a much lower rate as the cost of production is low. Again, we will get the ‘First-mover
    advantage’ in the market as there is no such product commercially available in Bangladesh.

    SWOT Analysis

    Strength:

     Least cost production, least power consumption (almost none).


     Availability of raw materials (Domestic).
     Simplicity of infrastructure and components.
     Environment friendly production.
     First mover advantage in the market by commercially producing such organic fertilizer in
    vast setting.
     Ability to grab the market with “Market penetration strategy” and “most potential
    product” strategy.
     Competitive advantage over production of chemical fertilizer (cost of production of
    vermin-compost is always lower than chemical fertilizer).

    Weakness:

     None.

    Opportunity:

     To meet the huge demand of fertilizers in agriculture of Bangladesh that remains


    unfulfilled.
     To meet the foreign markets as well.
     Availability of subsidiary given from government in this sector.
     Availability of local funds (NGOs) and foreign funds (IMF, World Bank, ADB etc.)
     To maintain corporate social responsibilities.
     Market leadership.

    Threat:

     Well established industry of chemical fertilizers.

    You might also like