Introduction

Background The solid waste problem and its detrimental impact on the environment and
people’s health have been the major concerns of local government units (LGUs) since the
enactment of Republic Act 9003 (Ecological Solid Waste management Act of 2001. This
vermicomposting project supports the enactment of R.A. 9003 in which LGUs have the primary
responsibility of implementing the law with proper segregation, collection, storage, treatment
and processing (composting, recycling, reuse, recovery, etc.) in appropriate and environmentally-
sound solid waste management facilities in accordance with ecologically sustainable
development principles. RA 9003 also strategically envisions that all stakeholders, whether
government institutions, private entities in commercial/industrial establishments, and every
household must implement the solid waste management scheme. There are various methods of
composting municipal and farm solid wastes or biomass applied in the Philippines. One such
method that has become widely applied because of its simplicity, practicality and cost-
effectiveness is vermicomposting, the process of composting with the use of earthworms. The
increased adoption of vermicompost technology would lead to savings in farm inputs and an
increase in environmental consciousness. Vermicomposting is a mesophilic process, utilizing
microorganisms and earthworms, in which organic waste passes through the earthworm gut,
whereby the resulting earthworm castings (worm manure) are rich in microbial activity and plant
growth regulators, and fortified with pest repellence attributes as well. Earthworms consume
various organic wastes and reduce the volume by 40–60%. Vermicompost provides all nutrients
in readily available form and also enhances uptake of nutrients by plants. Based on the increasing
trend in the number of vermicompost technology adoptors, it was popularized among local
entrepreneurs for the reason that it is considerably profitable and furthermore maximizes the
flow of materials within the farm level.1 2 The process of utilizing the organic wastes within the
farms leads to a more sustainable farming practices. The nutrients are retained and returned back
to the soil through vermicompost application. Such practice would make the soil suitable for
crop production and increases crop yield since the soil quality is improved.
horticultural, ornamental, vegetables, etc. Agronomical studies show that earthworm-
produced fertilizer is richer in plant nutrient than the soil, containing five times more nitrogen,
seven times more phosphorus, 11 times more potassium, three times more exchangeable
magnesium, and one and a half times more calcium. It contains a high percentage of humus,
which helps soil particles form into clusters creating channels for the passage of air and water.
This kind of humus is found to be more effective compared to ordinary compost and chemical
fertilizers and its use can lead to higher crop yield over a longer period of time. Revenues or
earnings derived from the vermicomposting systems be it primary benefits or secondary will be
valued and treated as benefits. Primary benefits are those outputs directly produced by the
project while secondary benefits are those stemming from the direct outputs. The Benefits that
can be derived from this project are the following: • selling of earthworms and vermicompost; •
utilization of vermicompost as organic supplement and soil conditioner as substitute for
inorganic • fertilizers; • production of organic crops; and • minimization of wastes through
recycling into usable forms; • increase in employment and • greater economic activity in the farm
level; • increased value of adjacent properties as a result of a cleaner environment; • decrease
wastes movement to dump sites; • increase savings/revenues for the government; • good
neighbor relations due to increase job availability; • consumption of safe organically produced
crops; and, • pollution abatement

EXECUTIVE SUMMARY
Vermicomposting is defined as the production of compost with the use of worms. It is a
fast way to convert farm waste and biodegradable municipal waste into organic fertilizer. It
degrades waste as vermi or earthworm (African night crawler) feed on and digest waste
materials. Vermicomposting results in a better quality product that is produced in only 4-6 weeks
compared to ordinary compost that is produced in 8-12 weeks. Vermicomposting is a waste
management technology utilizing earthworms to convert organic wastes into high quality
castings and vermicomposts of high economic values. The proposed vermicompost production
project involving the informal waste sector (IWS) is in effect, supporting R.A. 9003 (Ecological
Solid Waste Management Act of 2000) by working in partnership with the Legazpi City local
government unit in promoting proper segregation, collection, storage, treatment and processing
(composting, recycling, reuse, recovery, etc.) in appropriate and environmentallysound solid
waste management facilities in accordance with ecologically sustainable development principles

The proposed project also aims to provide alternative livelihood for members of the
proponent IWS association and at the same time, support the National Organic Agriculture
Program (NOAP) of the Department of Agriculture (DA) in its goal to promote, propagate,
develop further and implement the practice of organic agriculture in the Philippines that will
cumulatively condition and enrich the fertility of the soil, increase farm productivity, reduce
pollution and destruction of the environment, prevent the depletion of natural resources, further
protect the health of farmers, consumers, and the general public, and save on imported farm
inputs. The total investment for a commercial scale vermicomposting facility is estimated at Php
1.803,000.00 to cover start-up capital and operating expenses of the commercial scale
vermicomposting facility. Aside from the establishment of a commercial scale vermicomposting
facility, members of the IWS association may undertake backyard vermicompost production.
The initial capitalization in starting a backyard vermicomposting business will depend on the
scale (smallsmall-scale/backyard: Php 6,000.00, large-scale: Php 50,000.000). For every vermi
bed with two kilograms (kg.) of African night crawler (ANC) worms, 90 kg. vermicompost will
be produced per harvest. With 12 cycles a year, a total of 1,080 kg. of vermicompost will be
produced. Assuming a farm gate selling price of P10 per kilo, a revenue of PhP10,800.00 is
earned annually. ANC worms multiply in double quantity every six months with a corresponding
doubling of the vermicompost business. One can opt to sell the worms at PhP500 a kilogram.
Thus in 12 cycles, a total of 48 kg. of ANC worms can be harvested and sold for PhP24,000.00
or a toal annual revenue of PhP34,800.00 less annual production expenses of PhP6,120.00. This
means a yearly net return of P28,680.00 from an investment of P6,120.00 or a 21 percent annual
return on investment (ROI).
 BENEFITS TO THE COMMUNITY
Economic Development Aside from the establishment of the coop-managed
vermicomposting facility, members of the cooperative, especially the waste pickers and sorters
from the informal waste sector (IWS), may undertake household vermicomposting. After six
months, 10 kilos of worms can produce 300 kilos of vermicompost. Assuming a farm gate
selling price of P10 per kilo, a monthly revenue of P3,000 is earned. Less monthly expenses of
P1,500, monthly net income reaches P1,500. Worms double every six months with a
corresponding doubling of the vermicompost business. This means a yearly net return of
P28,680.00 from an investment of P6,000 per vermi bed per year or a 368.63 percent return on
investment (ROI). One can opt to sell the worms at P500 a kilogram. A higher financial and
social ROI can be achieved if vermicomposting is used for organic agriculture. Compared to
inorganic fertilizers, vermicompost is less expensive, improves rather than destroys soil fertility,
increases the value of farm produce and provides healthier food for the consumers.
In terms of economic viability, vermicomposting will be a good source of income aside
from the various benefits which can be derived from its various products. Aside from the
economic gains, savings will also be derived by using the product itself and its derivatives.
Vermicompost has the added advantages of being more convenient, practical and economical
than other similar composting systems. For one, it can be done at either the household or
commercial level with minimal labor and capital requirements. The tools and implements needed
for the operation are available locally and are sold by many commercial firms. Local agro-
machinery shops can also fabricate the necessary equipment (e.g. mechanical shredder). It is in
the marketing and utilization of vermi-based products that has the most impacts that
encompasses both socio-economic and environmental dimensions. Farmers can save on the use
of chemical fertilizers and pesticides. They have the opportunity to improve the condition of the
soil, increased yield of high quality crops resulting to more profit, help the environment by
replenishing natural resources, plus helping many people by giving them jobs in vermi farms. In
addition, excess vermicompost can be marketed commercially, while the surplus growth of
earthworm biomass can also be sold to other farmers and households who wanted to start their
own vermicomposting venture. Such practice would lead to economic development in the
countryside and savings for the government through reduction in the use of imported fertilizers.
Equitable distribution of income among the farmers would result to economic growth with
equity.

Community Development
During the production stage, large volume of wastes is needed to produce large amount of
vermicompost needed to fertilize large tracts of agricultural lands. These wastes can be derived
from all possible sources: households, farms, communities, markets, and industries. In the
vermicomposting process, wastes are not dumped or transported to dumpsites. Wastes are
managed effectively by reducing waste transport and elimination of burning waste in the
backyards or farmlands. Therefore, pollution and greenhouse gas emission are reduced that
would result to improved environmental management and ecological integrity maintenance.
Through the vermicompost production project, it is expected that the cooperative will be able to
promote equal opportunities for its most vulnerable members, the waste pickers and sorters,
especially the women beneficiaries, to establish backyard vermicomposting and their household
members to benefit from project services. These benefits will include training and employment
to be provided through the coop’s vermicomposting project. As agribusiness opportunities in
production, processing, and marketing of the vermicompost increase, there is an incentive for the
waste pickers and sorters and women in the community to participate and benefit from income-
generating opportunities and employment through the project. Vermicompost or the castings of
the earthworms is an excellent soil enhancer and bioactive fertilizer for orgamm