VERMI-CULTURE
Introduction
Vermiculture: "The raising and
production of earthworms and worm castings" In recent years, thanks to the
growing awareness, the benefits of organic compost have been understood, and
today, more and
more farmers want organic compost as it enhances the soil fertility and
regenerates microorganisms in the soil. Project cost is US$ 27,284 revenue
estimate US$263 from production of 360 kgs of worms, which are used as baits in
the fishing sector, cocoons and residues annually.
Production Process, Capacity and Technology
Much similar to the process of making vermin-compost, this involves breeding of earthworms in a mixture of cow dung and agricultural wastes to make organic compost manure. The profiled project has a minimum capacity of 30kg per month and this, among others is on the basis of 26 working days in a month and single 8-hour work shifts in each working day.
Market Analysis
Thanks to the awareness in rural areas, the demand for Vermi-compost is growing by the day and the increase in the number of commercial establishments has also led to the increase in the demand for vermin-compost notably in market gardening and flower farmers. There are no players yet in this field on Ugandan market.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Price |
Total |
|
Compost turning Equipment |
No |
1 |
1,125 |
1,125 |
|
Screening equipment |
No |
1 |
1,500 |
1,500 |
|
Green waste picking station |
No |
2 |
750 |
1,500 |
|
Sieves of 3mm |
No |
2 |
1,000 |
2,000 |
|
Total cost of tools |
6125 |
1. Production costs assumed are for 312 days per year with daily capacity of 1.15 kgs
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5.
Currency used is US Dollars.
Production and
Operation costs in US$
Direct materials, supplies and costs
|
Cost Item |
Unit |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
|
Direct Costs |
|||||||
|
Cow dung |
kgs |
0.1 |
12.82 |
1.3 |
33 |
400 |
|
|
Earth worms |
kgs |
7.5 |
0.16 |
1.2 |
31 |
375 |
|
|
Agricultural |
kgs |
0.05 |
5.00 |
0.3 |
7 |
78 |
|
|
Sub-total |
3 |
71.08 |
853 |
||||
|
General Costs (Overheads) |
|||||||
|
Labour |
1,650 |
19,800 |
|||||
|
Selling & distribution |
100 |
1,200 |
|||||
|
Utilities (Water, power) |
200 |
2,400 |
|||||
|
Rent |
25 |
300 |
|||||
|
Miscellaneous expenses |
100 |
1,200 |
|||||
|
Depreciation |
128 |
1,531 |
|||||
|
Sub-total |
2,203 |
26,431 |
|||||
|
Total Operating Costs |
2,273.68 |
27,284 |
|||||
Project product costs and Price Structure in US$
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Worms |
1.150 |
359 |
76.0 |
27,284 |
81 |
29,063 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per |
|
Revenue |
93 |
2,422 |
29,063 |
|
Less: Production and operating costs |
87 |
2,274 |
27,284 |
|
Profit |
6 |
148 |
1,779 |