Feasibility Analysis on the Establishment of New Organic Fertilizer Plant in US

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Abstract:
US Local Policy Supports Organic Fertilizer
Technical Feasibility of Starting Your Own Organic Fertilizer Production Business in US
Environmental Feasibility of Setting Up Organic Fertilizer Plant in the United States
Economic Feasibility Analysis on the Initial Small Scale Organic Fertilizer Production

organic fertilizer business in America

The progress direction of fertilizer, according to the report of FAO fertilizer year-book, is geared to achieve multi-component, multi-function, high-efficiency, high-concentration and non-pollution development. Nowadays, the environmentally safe fertilizer – organic fertilizer that maximizes the crop yields and minimizes the adverse effect on environment and water supplies, has become a general trend all over the world, especially in US, Canada, Australia, and some European countries.

  • the soaring cost and the adverse effect of chemical-based fertilizer logically cause this increase in organic fertilizer production.
  • health conscious consumers have preferred organically-grown products that have pushed demand for organic food.

Here, we will discuss the pre-feasibility of building an organic fertilizer plant in the United States by analyzing America organic fertilizer market situation, local policy supporting, advantages of producing organic fertilizer and benefits of organic fertilizers, etc. The aim of the feasibility analysis is to determine if an organic fertilizer business opportunity practical and viable.

US Local Policy Supports Organic Fertilizer

The US government incentives is the other factor driving the market growth of organic fertilizer. As early as 2002, America issued the bill for farm security and rural investment in order to significantly increase the protection effort for agro-ecological environment and facilitate sustainable development of agriculture. Many areas carried out protective technology in agricultural production actively, including promoting the use of harmless organic fertilizer and soil testing and fertilization. Moreover, local authorities attach great importance to strengthening the agricultural input and establishing the consciousness of farm products safety. Among the resources of producing organic fertilizer, animal manures occupy a large proportion and bring bigger risk of environmental pollution, therefore, government legislated strict laws for animal waste management so as to urge the harmless treatment and resource utilization of livestock and poultry manure. In addition, local government has also launched series of laws, regulations and standards according to the requirements of EPA(Environmental Protection Agency of United States), aiming at achieving ecological sustainability of agriculture industry.

Technical Feasibility of Starting Your Own Organic Fertilizer Production Business in US

US organic fertilizer producers have mastered more advanced production technology and valuable know-how through a long-term development, exploration and improvements in the past years. The technological superiority guarantees the practical and viable organic fertilizer business opportunity in a long run in US.

–Organic fertilizer manufacturing process and production equipment
In general, organic fertilizer production process contains several main steps- from raw materials handling to finished product package, shown as follows:

Raw materials crushing → composting → mixing → granulating → drying/cooling → packaging

organic fertilizer production making machine

According to the above process, Whirlston provides the corresponding equipment with high quality and excellent performance for a complete plant, taking an 1-3 ton/hour organic fertilizer production line for example:

Raw materials composting: composting is the breakdown of any organic materials into a dark soil-like product. Various organic waste materials produced by farming, communities such as husk, effluent, vegetable waste, stubble etc. can be used to produce compost.

When talking about organic materials, we have to admit that it is the plentiful raw materials that makes organic fertilizer business popular, prosperous and successful in the United States.

In America, there are plenty of raw materials suitable for composting, bringing vast development potential for organic fertilizer industry. To be specific, raw materials can be broadly classified as the following categories:raw materials of organic fertilizer
* Agricultural and garden wastes: including crop straw, bean pulp, cotton seed meal, fallen leaves and fruit shell, etc.
* Feces of livestock and poultry: chicken manure, pig manure and cow dung, etc.
* Industrial waste: vinasse, vinegar residue, cassava residue and sugar residue, etc.
* Household refuse: kitchen garbage, etc.
* Municipal sludge: river mud, sewer sludge, etc.

Ingredients blending: it uses organic fertilizer for maximum nutrition in the farms/gardens by adding the nutrients after soil test. Horizontal blender promises a balanced blend of compost with major nutrients (N, P, K) or with trace elements. Two sets horizontal blender should be equipped in 1-3 ton/hour organic fertilizer production line.These raw materials needed for organic fertilizer production have extensive range, but due to the source of diversity, if without thoroughly decomposing or sterilization and disinfection, they would bring lots of plant diseases and insect pests for agriculture, especially in commercial composting facilities. That is to say, you will need compost turners to turn the pile. A small compost turner is ideal in 1-3 ton/hour organic fertilizer production line.

organic fertilizer plant layout

Granulation: new type fertilizer granulation system provides advanced technology which is easy to realize and saves cost for commercial organic fertilizer production in the United States. New type granulator: with high granulation rate, it can granulate most biodegradable organic materials into safe and non-toxic organic fertilizer for sale, which makes it suitable for large scale organic fertilizer production, saving cost and promoting working efficiency.

Organic fertilizer drying: drying being one of the most energy-intensive operations is of great importance in the fertilizer industry. It allows more efficient exploitation of fertilizer plant and increases its profitability. In waste management, drying is one of the most common method used to prevent environmental problems associated with application of raw manure. Rotary dryers are often used for drying in fertilizer industries.

Cooling process: fertilizer manufacturers cool the granular product before packaging usually in the range of 30-55℃.

Screening and Packaging


Environmental Feasibility of Setting Up Organic Fertilizer Plant in the United States

In recent years, with the awareness of environmental protection and organic waste recycling technology progress, the concept of material recycling has become the consensus of the environmental industry. Among the recycling methods, Turning organic waste into organic fertilizer is considered to have the potential for the sustainable development of US society.

US organic fertilizer market valueAt present, people have been more and more focused on food security, hygiene and nutrition, and the demand for green food without pollution has continued to rise in recent years. But, as we all know, the use of chemical fertilizer on soil and plant would lead to health issues, so due to its eco-friendly nature, bio-organic fertilizer has very bright market prospect as a result of the increased demand for pollution-free agricultural products and organic food. In the meantime, “ecological agriculture” and “organic farming” is on the rise in America, which also brings more and more attentions on organic fertilizer – stipulated as main fertilizer source to produce health food. Besides, both the decrease of arable land and the increasing demand for farm products require the improvement of agricultural productive force, that is, farmland reduction and grain demands would also propel the market growth of organic fertilizer.

It is the environmental benefits of organic fertilizer that makes the noticed increase of organic fertilizer production took place in America.

▽ the development of organic fertilizer industry fundamentally solve the problem of pollution to atmosphere, water and soil environment caused by organic waste materials, stimulate the development of green food and organic food.
▽ organic fertilizer has very great positive influence on soil structure and nutrient, energy, enzyme, moisture, aeration and microbial activity because organic matter is the core element of soil and the main material base of soil fertility.
▽ organic fertilizer contains abundant nutritional ingredients without pollution and harm, including nitrogen, phosphorus, kalium, other medium element and micro element, which provides essential condition for producing high-yield, high-quality and non-pollution green food.

The United States is facing a huge solid-waste disposal problem, especially in urban areas. And it will take a concerted, society-wide effort to solve this problem. Results show that the current situation of organic waste management in the United States could be improved, through actions of both the municipality and the citizens.

From the three above-mentioned benefits of organic fertilizer to environment, crops and soil, we can conclude that composting and organic fertilizer business provides a profitable direction to fix Americas waste problem, being sustainable.

Economic Feasibility Analysis on the Initial Small Scale Organic Fertilizer Production in America

When starting a new business, economic factors would affect/limit production technologies. In organic fertilizer industry, for new investors, the costs of implementing a large scale organic fertilizer plant would be extremely prohibitive. Therefore, starting at a smaller level, the opportunity to recover those costs is greater in the long run.

–space needed
Fermentation stage: 20*5m
Granulating stage: 40*18m
The small scale unit is expected to require a limited amount of space which reduces the total land leasing fee for decision maker.

workers needed
Small scale organic fertilizer plant is an auto processing line. Whirlston equipment is compact, robust and flexible in operation. 4 workers are enough to operate and to keep the continuous operation at small scale. The wages for the employees are based on the standard salary for employment in US. The small scale project saves the total employee costs due to fewer workers needed in this plant.
◇1 worker for compost turner operation in fermentation stage
◇1 worker for feeding raw material
◇1 worker for packing machine
◇1 worker for control cabinet
US average wage per hourEstimation of production cost
Small scale organic fertilizer manufacturing system is with the initial equipment investment ranging from 40,000-50,000 dollars, being a cost-effective start up. Small scale plant is with appropriate method and technology is vital to economic benefit. It requires a relatively small initial investment (mail to info@organicfertilizermachine.com to get the latest quotation), which makes it more flexible to variations in production parameters and market fluctuations.

The production capacity has a very strong influence in the production cost of organic fertilizer. Mini organic fertilizer project plant with a 800kg/h output is flexible in operation, affordable to decision makers.

Small scale production system requires less complicated and less expensive processing technologies. The whole line is easy to be installed, even in rural areas (plentiful locally available raw materials ). This may further lower the capital cost and reduce the transportation cost of both organic materials and generated compost fertilizer as well as improving the overall efficiency of the market delivery.

Conclusion

The establishment of organic fertilizer plant in US is estimated to generate income exceeding all cost, which is not just about high economic returns, also about ecological effect and social benefits. What’s more, America has plentiful raw materials of organic fertilizer, national consciousness of going green and environmental protection and extensive market project, so building organic fertilizer plant is a perfect investment with the supporting of advanced processing technique and high-grade organic fertilizer production machines.

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