According to the Fertilizer and Pesticide Authority (FPA), 6,271 metric tons of organic

fertilizers were produced and 6,309 metric tons were sold in 2006 by 48 companies. Actual
production and sales vary from year to year and 1992 was a record breaking year with a
production of 73,212 metric tons (MT) but sales for the year was only 17,138 MT. The record
breaking sale was in 1995 at 28,090 MT tons with production figures of only 21,769 MT.

Market Opportunity Vermicomposting technology has been in the country since 1978.
However, only few people adopted it and some ceased their operation. Its low adoption until now
is due to the lack of market linkages and high cost of earthworms. But once the market have been
identified, then its potential would be tremendous since the vermi products command high prices
in the market. Vermicompost can be sold from Php 10.00 to 25.00 per kilogram while
earthworms are from Php 500.00 to Php 1,500.00 per kilogram. Some sellers repackage their
products with starter kits and reading materials but with higher price. Some vermicomposting
adoptors, aside from producing and selling their products, are also engaged in conducting
training and producing other products (i.e. vermitea, vermimeal) derived from the main vermi
products. With such activities, they received more benefits than selling vermicomposts and
compost worms. Even during the promotion of the technology, these people get paid for just
sharing their experiences and practices in vermicomposting.

The existing local market for vermicompost are mainly agricultural producers and
farmers who slowly but increasingly use this as an alternative to chemical fertilizers because
demand for organically produced food crops is also increasing. Organic fertilizer has likewise
increased in use as result of steep increases in the price of commercial fertilizer. These
developments work in favor of vermicomposting. Aside from the fact that no imported inputs are
required in vermicomposting, producing their own fertilizer makes the farmers less vulnerable to
changes and fluctuations in the prices of other commodities particularly chemical farm inputs.
There is practically no risk at all in producing vermicompost whether for one's use or surplus
production.

The following are the other potential markets for vermicompost:

• Direct sale to end users. This includes farmers’ groups and subdivisions in nearby cities
and municipalities;

• Bulk sale to producers and distributors of organic fertilizer that needs vermicast as one
of its primary components; and

• High-end market in urban areas due to the popularity of organically grown farm
produce among the rich residing in posh villages and other high-end residential areas.
Distribution Plans
The vermicompost can be directly sold to farmers groups or cooperatives who are
engaged in organic farming, industrial plants and real estate developers (subdivisions and
condominiums) with landscaping and organic food production activities, and the Department of
Agriculture.

Pricing
Vermicompost can be sold from Php 10.00 to 25.00 per kilogram while earthworms are
from Php 500.00 to Php 1,000.00 per kilogram. Some sellers repackage their products with
starter kits and reading materials but with higher price. Some vermicomposting adoptors, aside
from producing and selling their products, are also engaged in conducting training and producing
other products (i.e. vermitea, vermimeal) derived from the main vermi products. With such
activities, they received more benefits than selling vermicomposts and compost worms. Even
during the promotion of the technology, these people get paid for just sharing their experiences
and practices in vermicomposting.

Advertising and Promotion

Efforts The cooperative will actively participate in organic agriculture promotion
activities carried out by organic food products and organic farming enthusiasts, in partnership
with the DA’s organic agriculture programs at the city/municipal, provincial and national levels.

FINANCIAL PLAN
Estimated Investment Costs 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. (Table 1)

Table 1. Budgetary Requirements and Sources of Funds for the Proposed

Vermicomposting Project.

EXTENSION SERVICES AND TRAINING

HOUSEHOLD LEVEL VERMICOMPOSTING
Salaries and travel expenses of 1 extension worker @ 5,000.00/month x 36 months
Php180,000.00
Training and workshops @ P100/day x 200 pax x 3 days
Php60,000.00
Subtotal A Php240,000.00

Component/Activity
Material and biological inputs:
Hollow blocks and nets for 200 units worm beds @ Php250/unit
Php50,000.00
10 kg. worms @ Php500/kg x 200 members
Php1,000,000.00
Direct Costs:
Labor @ Php300 x 2 laborers x 100 days
Php60,000.00
400 units shovel @ Php 300/unit
Php120,000.00
Subtotal B
Php1,230,000.00

VERMICOMPOST PRODUCTION FACILITY

Equipment:
1 units mechanical shredder @ Php 150,000/unit
Php150,000.00
3 units weighing scale for 500 kg. @ Php 10,000.00/unit
Php30,000.00
3 units weighing scale for 40 kg. @ Php 5,000/unit
Php15,000.00
3 units bag closer @ Php 6,000/unit
Php18,000.00
Subtotal C
Php213,000.00

Land and Building:

300 sq. m. open shed warehouse @ Php20,000.00/sq. m.
Php60,000.00
Land (Php20,000/year x 5 years
Php60,000.00
Subtotal D
Php120,000.00
GRAND TOTAL
Php1,803,000.00

Typically 5,000-7,500 metric tons (MT) mix of animal manure and organic waste is required to
produce 3,000 MT vermicompost. Animal manures, biogas sludge, baggase, municipal solid
waste and range of agricultural residues serve as good raw materials for vermicomposting. Aside
from the establishment of the organization-managed vermicomposting facility, members of the
coop may undertake backyard vermicomposting. The initial capitalization in starting a backyard
vermicomposting business will depend on the scale (small-small-scale/backyard: Php 6,000.00,
largescale: Php 50,000.000).

FINANCIAL ANALYSIS Projected Sales and Income Aside from the establishment of the
commercial scale vermicomposting facility, members of the IWS association may undertake
backyard vermicompost production. For every vermi bed with two kilograms (kg.) of African
night crawler (ANC) worms, 90 kg. vermicompost will be produced every 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).
Particulars
Amount in Php

A. Annual Revenue (1 Vermi bed)

90 kg. vermicompost x 12 cycles = 1,080 kg. of vermicompost @ P10 00/kg.
10,800.00
Additional Revenue from selling worms from 1 vermi bed:
4 kg. of vermi x 12 cycles = 48 kg. of vermi @ P500.00/kg.
24,000.00

TOTAL REVENUE
34,800.00
 B. Annual Production Cost
African Night Crawler Worms 2 kg. @ Php 500.00/kg.
1,000.00
Labor (12 cycles @ Php 250.00/cycle)
3,000.00
Sack (2 sacks x 12 cycles @ Php 4.00/pc.)
120.00
Shovel
500.00