The importance of Vermi-compost, which is eco-friendly, has increased in recent years, as it is chemical free manure. The increase in the demand for fertilizers has also inadvertently led to the increase in demand for vermi-compost. The business risk is that some worms can easily die and some organic waste can be harmful to the soil texture, however, this can mitigated by applying Vermicomposting technology. It costs US$ 3,680 with estimated revenue of US$ 11,482, with net profit margin of 8%. The payback period is 3 years.
Production, Capacity and Technology
The organic waste is pasteurized and kept in the composing tanks with earthworms dumped into it. The earthworms multiply in due course and the soil converts into compost, referred to as Vermi compost. Soil is to be excavated in the four catcher sheds up to a depth of about one foot for preparing the beds, which contain organic waste, Vermi castings and cow dung. The length and width of the beds is 100 ft. and 5 ft. respectively.
Some paddy straw should be spread evenly at the bottom of the excavations. Charging of waste and cow dung slurry should be continued till the heap of material is one foot above the ground level. The profile project has a minimum capacity of producing 300kg per month of Vermi-compost.
Capital Investment Requirement in US $
|Power driven chaffer cutter||No||1||530||530|
|Weighing machine platform type||No||1||150||150|
|Water pump& pipes for sprinkling||No||1||1,300||1300|
|Tools & implements||No||1||1,700||1700|
|Total Cost of Machinery & Tools||3,680|
Production and Operation costs Direct materials, supplies and costs
|Cost Item||Units||@||Qty/ day||Pdn cost/ day||Pdn cost/ month||Pdn cost/yr|
|Cow dung manure||kg||0.25||12.8||3.205||83.33||999.96|
General Costs (Overheads)
|Selling & distribution||50||600|
|Utilities (Water, power)||200||2,400|
|Total Operating Costs||877||10,523|
- Production costs assumed are for 312 days per year with daily capacity of 11.5 kgs
- Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
- Currency used is US Dollars.
- A production month is assumed to have 26 days
Project product costs and Price Structure in US $
|Item||Qty/day||Qty/year||Unit cost||Pdn cost/yr||UPx||TR|
Profitability Analysis in US $
|Profitability Item||Per day||Per month||Per year|
|Less: Production and operating costs||34||877||10,523|
The Vermi compost, an eco-friendly technology has gained popularity in urban as well as rural areas to preserve the environment. The other potential market is from the flower growers who are growing tremendously.
Suppliers of Plant and machinery
All that is required is available in Uganda and is in most cases not hard to come by.
The government so far does not tax farmers save for the large scale ones who fall in the income tax bracket.