Organic fertilizer production is becoming one of the most promising agro-based industries in Bangladesh. Because soil fertility is declining every year due to excessive use of chemical fertilizers, farmers are shifting toward organic solutions that restore soil health naturally. Therefore, establishing an Organic Fertilizer and Vermicompost Plant is not only profitable but also environmentally essential.
1. Introduction
Bangladesh is an agricultural country where over 70% of the population depends directly or indirectly on agriculture. Every year, the demand for fertilizer increases while the availability of chemical fertilizers fluctuates. This imbalance affects both crop yield and soil structure.
Organic fertilizer and vermicompost solve this problem because they:
- Improve soil texture and water-holding capacity.
- Enhance crop yield naturally.
- Are cheaper and safer than chemical fertilizers.
Besides that, the government of Bangladesh encourages organic fertilizer production through subsidy, grants, and easy loan facilities under the Department of Agricultural Extension (DAE) and Bangladesh Krishi Bank.
2. Project Summary
| Particulars | Details |
|---|---|
| Project Title | Organic Fertilizer and Vermicompost Plant |
| Project Location | Mymensingh / Bogura / Jessore (Suggested Agro Zones) |
| Project Capacity | 5 Metric Tons per Day |
| Land Requirement | 1 Acre |
| Estimated Project Cost | BDT 3.50 Crore |
| Employment Generation | 25 Persons |
| Project Implementation Period | 6 Months |
| Product Type | Organic Compost, Vermicompost, Liquid Bio-Fertilizer |
| Target Market | Farmers, Nurseries, Agro Companies, Government Programs |
| Financial Return | 30% ROI per annum (approx.) |
3. Project Objective
The main goal of this project is to produce high-quality organic fertilizer from agricultural waste, cow dung, and organic residues using scientific composting methods and earthworms (Eisenia fetida species).
Key objectives include:
- Promoting sustainable agriculture in Bangladesh.
- Reducing the dependency on chemical fertilizers.
- Generating employment for rural youth.
- Utilizing agro-waste efficiently.
- Ensuring steady income for investors.
4. Market Demand and Scope
The demand for organic fertilizer in Bangladesh is rising due to increasing awareness of food safety and environmental issues. According to agricultural experts, the current national demand for organic fertilizer exceeds 1 million metric tons per year, while the production capacity is still below 20%.
Market Potential:
- The government encourages organic farming through various subsidy programs.
- Export potential exists in neighboring countries like India, Nepal, and Bhutan.
- NGOs and private farms prefer organic compost for sustainable projects.
- Urban rooftop gardens and nurseries are new consumers of vermicompost.
Price Range in Bangladesh:
- Organic Fertilizer: BDT 18 – 25 per kg
- Vermicompost: BDT 30 – 40 per kg
- Liquid Bio-Fertilizer: BDT 50 – 60 per liter
5. Raw Materials and Sources
Organic fertilizer can be made using readily available materials from agricultural areas.
| Raw Materials | Sources | Average Cost (BDT/ton) |
|---|---|---|
| Cow Dung | Local Dairy Farms | 2,000 |
| Poultry Litter | Poultry Farms | 3,000 |
| Crop Residue | Local Fields | 1,500 |
| Earthworms (Eisenia Fetida) | Local/Imported | 800/kg |
| Bio-Enzyme & Additives | Agro Input Suppliers | 1,200 |
| Packaging Materials | Local Packaging Factories | 1,000 |
6. Manufacturing Process
Step 1: Collection of Raw Materials
Agricultural residues, cow dung, and poultry waste are collected.
Step 2: Pre-Treatment and Mixing
Raw materials are shredded and mixed in specific ratios (60% cow dung, 30% crop residue, 10% additives).
Step 3: Vermicomposting Bed Preparation
Beds are made with brick or concrete, filled with the prepared mixture, and covered with shade nets.
Step 4: Earthworm Inoculation
Earthworms are added to the compost bed for decomposition.
Step 5: Maturation and Harvesting
After 45–60 days, mature vermicompost is harvested, dried, and sieved.
Step 6: Packaging and Marketing
Final products are packed in 5 kg, 10 kg, and 25 kg bags with brand labeling for marketing.
7. Machinery and Equipment List
| Description | Quantity | Estimated Cost (BDT) |
|---|---|---|
| Compost Mixer | 1 Unit | 7,00,000 |
| Shredder Machine | 1 Unit | 5,00,000 |
| Sieving Machine | 1 Unit | 3,00,000 |
| Vermicompost Beds (Concrete/Brick) | 20 Units | 12,00,000 |
| Earthworms (Eisenia Fetida) | 100 kg | 80,000 |
| Packaging Machine | 1 Unit | 4,00,000 |
| Weighing Machine | 2 Units | 40,000 |
| Water Pump & Sprinkler | 1 Set | 70,000 |
| Shade Net Structure | 1 Set | 2,00,000 |
| Laboratory Equipment | 1 Set | 3,00,000 |
| Total Machinery Cost | BDT 37,90,000 |
8. Manpower Requirement
| Category | Number | Monthly Salary (BDT) | Total Monthly Cost (BDT) |
|---|---|---|---|
| Plant Manager | 1 | 45,000 | 45,000 |
| Production Supervisor | 1 | 30,000 | 30,000 |
| Skilled Worker | 6 | 18,000 | 1,08,000 |
| Unskilled Worker | 8 | 12,000 | 96,000 |
| Marketing Executive | 2 | 25,000 | 50,000 |
| Accountant | 1 | 25,000 | 25,000 |
| Security & Maintenance Staff | 2 | 15,000 | 30,000 |
| Total | 21 Persons | BDT 3,84,000/month |
9. Project Cost Estimation
| Particulars | Estimated Cost (BDT) |
|---|---|
| Land Development (Lease/Owned) | 30,00,000 |
| Civil Construction (Sheds, Beds, Office) | 70,00,000 |
| Machinery & Equipment | 37,90,000 |
| Earthworms & Raw Materials (Initial) | 10,00,000 |
| Utility Connection & Installation | 8,00,000 |
| Office Furniture & Vehicle | 10,00,000 |
| Pre-Operational Expenses | 5,00,000 |
| Working Capital (3 Months) | 30,00,000 |
| Total Project Cost | BDT 3,00,00,000 (3.0 Crore) |
10. Financial Analysis
a) Production & Revenue Forecast
| Product | Daily Production (kg) | Annual Production (kg) | Selling Price (BDT/kg) | Annual Revenue (BDT) |
|---|---|---|---|---|
| Vermicompost | 4,000 | 12,00,000 | 35 | 4,20,00,000 |
| Organic Fertilizer | 2,000 | 6,00,000 | 20 | 1,20,00,000 |
| Liquid Bio-Fertilizer | 500 (liters) | 1,50,000 | 55 | 82,50,000 |
| Total Annual Revenue | 6,22,50,000 |
b) Annual Operating Cost
| Particulars | Amount (BDT) |
|---|---|
| Raw Materials | 60,00,000 |
| Labor Cost | 46,08,000 |
| Utilities (Electricity, Water, etc.) | 6,00,000 |
| Maintenance | 4,00,000 |
| Marketing & Transport | 10,00,000 |
| Office & Administrative Expenses | 8,00,000 |
| Depreciation | 8,00,000 |
| Interest on Loan (if any) | 10,00,000 |
| Total Annual Operating Cost | 1,52,08,000 |
c) Profitability Statement
| Particulars | Amount (BDT) |
|---|---|
| Annual Sales Revenue | 6,22,50,000 |
| Less: Operating Cost | 1,52,08,000 |
| Gross Profit | 4,70,42,000 |
| Less: Taxes & Misc. | 50,00,000 |
| Net Profit (Approx.) | BDT 4.20 Crore per year |
| ROI (Return on Investment) | ≈ 30–35% per annum |
11. Implementation Schedule
| Activity | Duration |
|---|---|
| Feasibility Study & Site Selection | 1 Month |
| Project Financing & Land Acquisition | 1 Month |
| Civil Construction & Machinery Setup | 2 Months |
| Raw Material Collection & Trial Run | 1 Month |
| Production Commencement | 1 Month |
| Total Implementation Period | 6 Months |
12. Environmental and Social Benefits
Organic fertilizer production reduces the burden of chemical pollution. It converts agro-waste into valuable resources. It restores soil fertility, increases earthworm population, and improves biodiversity.
Socially, the project creates rural employment and supports women’s involvement in agriculture. Therefore, the project contributes to both SDG Goal 2 (Zero Hunger) and Goal 12 (Responsible Consumption and Production).
13. Challenges and Risk Mitigation
| Challenge | Possible Solution |
|---|---|
| Seasonal demand fluctuation | Contract with dealers and government programs |
| Quality inconsistency | Regular lab testing and quality control |
| Limited public awareness | Awareness campaigns and farmer training |
| High moisture during rainy season | Use covered compost beds and solar dryers |
14. Future Expansion Possibility
Once the project becomes stable, the owner can:
- Export vermicompost to neighboring countries.
- Add a bio-pesticide and liquid nutrient line.
- Partner with agro-based NGOs for bulk supply.
- Launch retail products under a brand name in supermarkets.
This diversification can increase revenue by 40% within two years.
15. Project Viability
The organic fertilizer and vermicompost industry offers high profitability with minimal environmental risk. The payback period is approximately 3 years, and operating costs are low. The sector aligns perfectly with government agricultural policies and sustainable development goals.
Key Reasons for Viability:
- Steady demand across all agro zones.
- Easy access to raw materials.
- Eco-friendly and subsidy-supported.
- Export potential in South Asia.
16. Call to Action
Are you planning to start your Organic Fertilizer and Vermicompost Plant in Bangladesh or abroad?
You’ll need a bankable project profile that meets the requirements of banks, investors, and government agencies.
We prepare detailed, bankable project profiles that include:
- Financial projections (Profit, ROI, Payback Period).
- Technical and operational details.
- Market feasibility and SWOT analysis.
- Equipment and supplier list.
- Investment and funding structure.
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📞 Contact us today:
Email: [email protected]
Phone: +8801716752370
Company: RAYHANS | China Bangla Engineers & Consultants Ltd. (CBECL Group)
Website: www.cbecl.com
We’ll help you turn your idea into a profitable and sustainable business.