New Agro-Business in Nigeria | Vermi-compost Organic Fertilizer Production| Business plan

Vermicompost-Organic Fertilizer Production - Vermicompost organic fertilizer production in a new agro business idea that has started hitting Africa and Nigerians has started tapping from it. In fact, it has become a major component of agro-business models across the country with a very low initial investment capital. An entrepreneur can start this business with the proper know-how of the production process.

Vermicompost is the product or process of composting utilizing various species of worms to create a mixture of decomposing vegetable or food waste, bedding materials, and vermicast.
As an aspiring entrepreneur, having specific skills in the manufacturing process can initiate vermicompost organic fertilizer production business for a start. This business can be established with moderate capital investment in a small parcel of land at your backyard/your farm yard.

Most Rural and semi-urban communities are predominately agricultural production communities in Nigeria. Such communities are considered the ideal locations for setting up vermicompost units on a larger scale from availability raw materials like cow/pig dung and marketing of such byproducts to farmers around. Based on the fact that vermicompost produces are cheaper, with high nutritional values on growing crops and other agricultural production, it reduces chemical substances on food production. To this effect, vermicompost technology is getting increasingly accepted among local entrepreneurs on daily bases.

The vermicompost contains higher percentage (nearly twofold) of both macro and micronutrients than the garden compost. The product gets matured in a period of 45-60 days depending upon the type of wastes, earthworm population, and environmental factors. There is 5 to 6 possible cycle in a year.

MATERIALS REQUIRED FOR VERMICOMPOST ORGANIC FERTILIZER PRODUCTION

As a matter of fact, several decomposable organic wastes normally used as composting materials are as follows; animal excreta, kitchen waste, farm residues and forest litter etc. In general, animal dung mostly cow dung and dried chopped crop residues are the key raw materials. A mixture of leguminous and non-leguminous crop residues enriches the quality of vermicompost.

Worms are the major organisms that aid decomposition in vermicompost. There are different species of earthworms viz. Eisenia Foetida (Red earthworm), Eudrilus Eugeniae (night crawler), Perionyx Excavatus etc. Red earthworm is preferred because of its high multiplication rate and thereby converts the organic matter into vermicompost within 45-50 days. Since it is a surface feeder it converts organic materials into vermicompost from the top.

MANUFACTURING PROCESS OF VERMICOMPOST ORGANIC FERTILIZER PRODUCTION

Step 1; you need to gather bio-degradable agro waste.
Step 2; Cut them into small pieces by hand-operated cutting machine.
Step 3; allow them for partial decomposition for 10 to 15 days. It will help you in achieving a better activity of earthworm.
Step 4; A Vermicomposting unit should be in a cool, moist and shady site.
Step 5; Beds of a partially decomposed material of size 6x2x2 feet should be made.
Step 5; partially decomposed agro waste material is then arranged in layers at the vermicompost bed.
Step 6; layer of partially biodegradable agro waste at the bottom of the bed.
Step 7; layer of cow dung slurry on it to further decomposing of the agro waste for 15 to 20 days.
Step 8; after partial decomposition, cover with cow dung slurry with 4” layer of Farm Yard Manure.
Step 9; Apply red earth worm (1500-2000) on the upper layer of bed.
Step 10; Water should be sprinkled with can immediately after the release of worms.
Step 11; Beds should be kept moist by a sprinkling of water (daily) and by covering with gunny bags/polythene.
Step 12; the bed should be turned once after 30 days for maintaining aeration and for proper decomposition.
Finally; Compost will get ready in 45-50 days.

HARVESTING PROCESS OF VERMICOMPOST ORGANIC FERTILIZER PRODUCTION

Likewise, when you get completely decomposed vermicompost you should stop watering. It appears black in color and granular in size. Keep over a heap of partially decomposed cow dung so that earthworms could migrate to cow dung from compost. After two days compost can be separated and sieved for bagging and use.

PREVENTIVE MEASURES IN VERMICOMPOST ORGANIC FERTILIZER PRODUCTION

Step 1; The floor of the unit should be compact to prevent earthworms’ migration into the soil.
Step 2; 15-20 days old cow dung should be used to avoid excess heat.
Step 3; The organic wastes should be free from plastics, chemicals, pesticides, and metals etc.
Step 4; Aeration should be maintained for proper growth and multiplication of earthworms.
Step 5; Optimum moisture level (30-40 %) should be maintained
Step 6; 18-250 degree Centigrade temperature should be maintained for proper decomposition.

MARKET OPPORTUNITY OF VERMICOMPOST ORGANIC FERTILIZER PRODUCTION

Most importantly, Vermicompost organic fertilizer production business has good sale potential over a range of crops i.e. agricultural, horticultural, ornamental, vegetables etc.
Direct sale to end users this includes farmers groups and subdivisions in nearby cities and municipalities.

Bulk sale to producers and distributors of organic fertilizer that needs vermicompost as one of its primary components.

High-end market in urban areas due to the popularity of organically grown farm produce among the rich residing in posh villages and other high-end residential areas.

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OUR TABLE OF CONTENT INCLUDE;

SECTION 1(Business plan section)

SECTION I – EXECUTIVE SUMMARY
NAME OF BUSINESS / COMPANY
OFFICE & SITE LOCATION
MOTIVATION
MISSION STATEMENT
SOCIAL/ECONOMIC VALUE
PROJECT STATUS & START UP
WHY PREPARE THIS BUSINESS PLAN?
SECURITIES FOR THE PROPOSED LOAN
REPAYMENT
SECTION II – STUDY AREA
STUDY AREA
COMPANY OVERVIEW
MANAGEMENT TEAM
DEPARTMENTS IN THE COMPANY
EXPERIENCE
MANAGEMENT TEAM GAPS
SECTION III – INDUSTRY ANALYSIS
DEFINING YOUR INDUSTRY
YOUR INDUSTRY SIZE GROWTH RATE AND SALES PROJECTIONS
INDUSTRY STRUCTURE
MARKET OVERVIEW
MARKET SEGMENTATION
RELEVANT MARKET SIZE
KEY SUCCESS FACTORS
LONG TERM PROSPECTIVE
MARKET CHARACTERISTICS
SAMPLING TECHNIQUE
SECTION IV – CUSTOMER ANALYSIS
TARGET CUSTOMERS
CUSTOMER NEEDS
MARKET NEEDS / SOCIAL PROBLEMS AND SOLUTIONS
BUYERS BEHAVIOUR
MARKET SHARE
SALES FORECASTING
SECTION V – COMPETITIVE ANALYSIS
DIRECT COMPETITORS
COMPETITIVE ADVANTAGES
SECTION VI – MARKETING PLAN
PRODUCTS & SERVICES
FINISHED PRODUCTS
PRODUCT QUALITY AND PRODUCTION QUANTITY
PRODUCTION CAPACITY
PRICING
PROMOTIONS PLAN
DISTRIBUTION PLAN
SECTION VII – OPERATIONS PLAN
GENERAL APPROACH TO PRODUCTION
TECHNICAL ANALYSIS / PRODUCTION PROCESS
EQUIPMENT
PACKAGING REQUIREMENTS
SECTION VIII – FINANCIAL PLAN
REVENUE MODEL
FINANCIAL ANALYSIS
FINANCIAL ASSUMPTIONS
FINANCE CHARGES
FINANCIAL PROJECTIONS
FUNDING REQUIREMENTS/USE OF FUNDS
CRITICAL ASSUMPTIONS

SECTION 2(Feasibility study section)

FINANCIAL MODELS
SUMMARY OF PROJECT COST
BUDGET OF FIXED ASSETS / CAPITAL EXPENSES / INVESTMENTS
DEPRECIATION
UTILITIES
OPERATING EXPENSES (OPEX)
TOTAL REQUIRED INVESTMENT OUTLAY (REQUIRED START-UP CAPITAL)
FINANCING PLAN
INSTALLED / AVAILABLE EQUIPMENT
BREAK-EVEN ANALYSIS
LOAN REPAYMENT SCHEDULE AND INTEREST PAID
FORECAST OF PROFIT AND LOSS
CASH FLOW
BALANCE SHEET
GENERAL ASSUMPTIONS (BREAK EVEN ANALYSIS)
BUSINESS RATIOS - PROFITABILITY ANALYSIS
CONCLUSION
SECTION 3 – APPENDIX

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· NOTE; According to our policy, we are not “allowed / permitted” to disclose peoples business or written feasibility study, “to anyone”, irrespective of their personality.

· BUT, WE are permitted to display only executive summary.

· This is just a sample of our executive summary on poultry feasibility study and business plan, carried out in Rivers State.

· 1^st sample;

These Feasibility study on poultry farming business (specializing on layers and boilers production), was conducted using projections, impressive publications, compounding interest/values, tables, graph, bar chart, pie chart, profits analysis and cash flow positions in other to give a clear picture of what is obtainable in that location, using eight plots of land, at Esemdiary village, Off Effurun Sapele Road, Okpe LGA of Delta state, Nigeria as a case study.

Esemdiary village is a community in Okpe Local Government Area of Delta State with coordinates 05°26’N 5°57’E, which also plays the host community to the Warri Airport, which is actually located at Osubi.

Okpe Local Government is a territory that used to be part of the original Okpe Kingdom, its headquarters is at Orerokpe, with a population of 128,398 people whose primary occupations include commercial farming, fishing, hunting, trading and gas exploration.

After carrying out the feasibility study on Esemdiary village, Off Effurun-Sapele Road, Okpe LGA of Delta state, Nigeria, it was discovered that, farming generally will do well both on crop and animal production.

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