Investment Opportunity:

Vermicompost Production
.....

V ermicompost is the product or process of composting using various

worms, usually red wigglers, white worms and other earthworms to create a
heterogeneous mixture of decomposing vegetable or food waste, bedding
materials and vermicast.

The Persian daily Forsat-e Emrooz recently published an article on setting up a

vermicompost production plant and the sector’s investment potential in Iran.

Containing water-soluble nutrients, vermicompost is an excellent, nutrient-rich

organic fertilizer and soil conditioner.

Vermicomposting is practiced both on large and small scales. The produced

vermicompost may be used for farming, landscaping, to create compost tea, or
for sale. Some of these operations also produce worms for bait or home
vermicomposting.

There are two primary methods of large-scale vermiculture. Some systems use
a windrow, which consists of bedding materials for the earthworms to live in
and acts as a large bin with organic material added to it. It is a sustainable,
cost-efficient way for farmers to manage dairy waste.

The second type is the raised bed or flow-through system. Here the worms are
fed an inch of worm food across the top of the bed, and an inch of castings are
harvested from below by pulling a breaker bar across the large mesh screen
that forms the base of the bed. Flow-through systems are well suited to indoor
facilities, making them the preferred choice for operations in colder climates.
Many different products and wastes can be used as worm food, such as nearly
all fruits and vegetables, coffee grounds and filters, teabags, grains like bread
and cereal, leaves and grass clippings, dairy cow manure, sewage sludge and
any type of agricultural waste.

The benefits of using vermicopost compared to compost produced through

other methods include improved soil aeration, higher microbial activity,
improved water-holding capacity and better plant root growth.

Furthermore, low capital investment and relatively simple technologies make

vermicomposting practical for less-developed agricultural regions.

A 100-square-meter plot of land is required to set up the plant, costing at least

$30,000. Another $30,000 must be set aside for purchasing the equipment
and working capital.

Hiring plant operators cost about $7,000, and the worm purchase expenses
can reach nearly $4,000.

Visits must be made to the province’s Agricultural Jihad Organization in order

to acquire the permits, which can take up to six months.

Vermicompost production process, other than yielding compost, also creates

worms, with the earthy creatures having a market of their own.

The annual production of 300 tons of compost and 12 tons of worms can yield
a nearly $200,000 and $57,000 in profit respectively.

According to Adel Talebi, a player in the field, it is necessary for potential

investors vying to enter the business to “find demand for their product before
starting production”.

Talebi stressed that the vermicompost production industry is still a fairly new
thing in Iran and those investing in the sector will not have to worry about
many competitors.