MAKING VERMICOMPOST
Introduction
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. Vermi-compost is basically compost from verminous animals like worms, mixed with de-composable organic solid waste. This waste can be converted into valuable compost by applying vermi-composting technology. It costs US$ 9,791; estimated revenue is US$ 482.
Production Process, Capacity and Technology
The organic waste is pasteurized and
kept in the composing tanks with earthworms dumped into the organic waste. 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. Vermi castings are placed over this straw and the shredded waste
material and cow dung slurry are charged in order to feed the earthworms.
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.
Market Analysis
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.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Power driven chaffer |
No |
1 |
500 |
500 |
|
Weighing machine platform type |
No |
1 |
100 |
100 |
|
Water pump& pipes |
No |
1 |
1,250 |
1,250 |
|
Tools & implements |
No |
1 |
1,500 |
1,500 |
|
Total cost of Machinery & Tools |
3,350 |
1. Production costs assumed are for 312 days per year with daily capacity of
11.5 kgs
2. Depreciation (fixed asset write off) assumes 4 year life of assets written
off at 25% per year for all assets.
3. Currency used is US Dollars.
4. A production month is assumed to have 26 days.
Production and Operation costs
Direct materials, supplies and costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod cost/month |
Prod |
|
Direct Costs |
||||||
|
Cow dung manure |
kgs |
0.1 |
12.82 |
1.3 |
33 |
400 |
|
Vermi |
kgs |
7.5 |
0.16 |
1.2 |
31 |
375 |
|
Biodegradable |
kgs |
0.05 |
5.00 |
0.3 |
7 |
78 |
|
Sub-total |
3 |
71.08 |
853 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
300 |
3,600 |
||||
|
Selling & distribution |
50 |
600 |
||||
|
Utilities (Water, power) |
200 |
2,400 |
||||
|
Rent |
25 |
300 |
||||
|
Miscellaneous expenses |
100 |
1,200 |
||||
|
Depreciation |
70 |
838 |
||||
|
Sub-total |
745 |
8,938 |
||||
|
Total Operating Costs |
815.78 |
9,790.5 |
Project product costs and Price Structure in US $
|
Item |
Qty |
Qty |
Unit |
Prod |
Unit |
Total |
|
Compost |
11.500 |
3,588 |
2.7 |
9,791 |
3.2 |
11,482 |
Profitability Analysis in US $
|
Item |
Per day |
Per |
Per |
|
Revenue |
37 |
957 |
11,482 |
|
Less: Production and operating costs |
31 |
816 |
9,791 |
|
Profit |
5 |
141 |
1,691 |