FEASIBILITY STUDY ON TRANSFERRING FOOD WASTE INTO ORGANIC
FERTILIZER USING ADVANCED TECHNOLOGIES AND CIRCULAR
ECONOMY PRINCIPLES
A Feasibility Study
Presented to
Mr. GENER M. CUPO, MBA, MSIT
MINDORO STATE UNIVERSITY
(MinSU) - Calapan City Campus
BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY DEPARTMENT
Masipit, Calapan City
In Partial Fulfillment of the
Requirements for the Subject of
ITE 322 - TECHNOPRENUERSHIP
By
LESTER AGUILA
LOVELIE HERNANDEZ
AIRA MAE FALSARIO
ALLYSA MAE PEREZ
Chapter I
INTRODUCTION
Organic fertilizers are becoming increasingly popular around the world as a
more sustainable and environmentally friendly alternative to synthetic fertilizers.
Organic fertilizers are derived from natural sources such as animal waste, plant
materials, and other organic matter. They are known to improve soil health and
fertility, increase crop yields, and reduce the environmental impact of agriculture.
According to a report by Research and Markets, the global organic fertilizer
market size was valued at USD 5.88 billion in 2020 and is expected to reach USD
15.9 billion by 2028, growing at a CAGR of 12.5% from 2021 to 2028. The report
states that the increasing demand for organic food products, rising awareness
about the harmful effects of chemical fertilizers, and favorable government
initiatives promoting the use of organic fertilizers are key factors driving the growth
of the global organic fertilizer market.
Philippine has been noted to be an agricultural country for the past years
and has continually encouraging the appreciation for agricultural economy.
Agricultural economy includes the production of healthy foods of which the
government gave emphasis through organic fertilizer. Organic fertilizer performs a
huge role in the efficiency and effectiveness in the production of food products in
the country thus the government continuously finds ways to boost the organic
fertilizer production in the country.
Recently, the government agricultural sector found a new way of producing
organic fertilizer at less cost and reducing the pollution potential of organic wastes.
This new process is called vermicomposting. Vermicomposting is a method which
involves the action of worm as its main force in decomposing the organic wastes.
These organic wastes then become into organic fertilizer.
The organic fertilizer makes the soil fertile in the natural way thus causing
no damage in its natural composition but instead adding nutrients to it as well as
maintaining its neutral potential hydrogen (pHI). This process provides a means of
helping the environment as well as providing the farmers with lesser cost of
fertilizer especially in today's economic condition. Today's happening shows that
most farmers have relied on inorganic fertilizer despite its being costly and gradual
harmful effect on the soil.
It is because of its being well advertised and its fast effect on the plant's
growth. By having the vermicomposting, the agricultural sector expects to find
ways of helping the farmers as well as maintaining the nutrients of the soil. Having
the lands with large production of food and other products. vermicasting has been
seen as a great help in boosting the income as well as the environmental condition
of the inhabitants.
The provincial government of Oriental Mindoro has initiated several
programs and projects to encourage farmers to adopt organic farming practices
and use organic fertilizers. For example, the province has established a Provincial
Agriculture Office that provides technical assistance and training to farmers on
organic farming techniques and the use of organic fertilizers. They are started to
conduct vermi culture project because it opens new possibilities to the farmers of
engaging to new methods of farming without causing damage to the soil and still
gaining enough support one’s need. With its many farmers as well to our country
through agriculture.
In addition, the provincial government has partnered with various
organizations and stakeholders to promote organic farming and the use of organic
fertilizers. One of these partnerships is with the Department of Agriculture's
Organic Agriculture Program, which provides support to farmers in the province
through training, financial assistance, and marketing assistance.
The promotion and use of organic fertilizers is a positive step towards
sustainable agriculture and environmental preservation. By supporting organic
farming practices and the use of organic fertilizers, the province can improve the
livelihoods of farmers and contribute to a healthier and more sustainable future.
Chapter II
MARKET STUDY
The market study helps to determine the demand for organic fertilizer in the
target market and provides insights into the competitive landscape, pricing trends,
and other factors that may impact the success of the project. Market size, growth
rate, market segmentation, competitor analysis, regulatory environment, pricing
and distribution of channels are the following factors should be considered.
2.1 Name and Description of the product/service
BioGreen Organic Fertilizer is a high-quality organic fertilizer made from
natural ingredients such as animal waste, plant materials, and other organic
matter. The product is designed to improve soil health and fertility, increase crop
yields, and reduce the environmental impact of agriculture. It is suitable for use in
a wide range of applications, including agriculture, horticulture, landscaping, and
home gardening.
The product is available in different formulations, including granular, liquid,
and powder. The granular and powder formulations are designed for use in soil
preparation, while the liquid formulation can be applied directly to plants through
irrigation systems or foliar sprays. The product comes in various package sizes,
ranging from small bags for home gardening to large bulk bags for commercial
agriculture.
2.2 Uses of the Product/Services
BioGreen Organic Fertilizer is a slow-release fertilizer, providing a consistent
supply of nutrients to plants over an extended period. It contains a balanced mix
of nitrogen, phosphorus, and potassium, as well as other essential micronutrients
such as calcium, magnesium, and sulfur. The product is free from synthetic
chemicals and pesticides, making it safe for use around humans, pets, and wildlife.
2.3 User of the Product/Services
Organic fertilizers are primarily used by farmers, gardeners, landscapers,
and horticulturists to promote healthy plant growth and provide essential nutrients
to plants. They are particularly useful for those who want to avoid synthetic
chemicals and use sustainable and environmentally friendly practices. Organic
fertilizers are made from natural sources and provide a natural and effective
alternative to synthetic fertilizers. Users of organic fertilizers are committed to
sustainable and environmentally friendly agricultural and landscaping practices.
2.4 Demand and Supply Analysis
According to a report by ResearchAndMarkets, the global organic fertilizer
market size was valued at USD 6.26 billion in 2020, and it is expected to reach
USD 14.74 billion by 2028, growing at a CAGR of 11.1% from 2021 to 2028. The
report attributes this growth to the rising demand for organic food, increasing
awareness about the environmental benefits of organic fertilizers, and government
initiatives promoting sustainable agriculture.
In terms of demand, the report also highlights that the use of organic
fertilizers is increasing across the world due to the growing demand for organic
food products. Consumers are becoming more aware of the benefits of organic
food, which is leading to a shift towards organic farming practices. This, in turn, is
driving the demand for organic fertilizers.
On the other hand, the report notes that the increasing demand for organic
fertilizers has led to an increase in the production of organic fertilizers. Key players
in the market include companies like BioStar Organics, Coromandel International,
Krishak Bharati, Midwestern BioAg, Italpollina, Sustane Natural Fertilizer, and The
Scotts Miracle-Gro Company.
Moreover, according to another report by Mordor Intelligence, the AsiaPacific region is expected to witness the highest growth rate in the organic fertilizer
market due to increasing population, rising demand for organic food, and the
availability of arable land. The report also highlights that the organic fertilizer
market is driven by factors such as increasing government initiatives to promote
sustainable agriculture, rising demand for organic food products, and increasing
awareness about the benefits of organic farming practices.
2.5 Marketing Program
Developing a marketing program is an essential component of a feasibility
study for an organic fertilizer project. The marketing program helps to identify the
target market, develop effective marketing strategies, and create a comprehensive
plan for promoting the product and services.
Competitive analysis: Identify the key players in the organic fertilizer market
and analyze their strengths, weaknesses, and market share. This information will
help to develop effective strategies to differentiate the product from the competition
and establish a strong brand presence in the market.
Pricing strategy: Determine the optimal pricing strategy for the organic fertilizer
product, taking into account factors such as production costs, market demand, and
the price points of competing products.
Promotion and advertising: Develop a comprehensive advertising and promotion
plan that includes online and offline marketing channels. This may include social
media advertising, search engine marketing, email marketing, print advertising,
and participation in trade shows and events.
Distribution strategy: Identify the most effective distribution channels for the
organic fertilizer product, such as online marketplaces, retail stores, or direct sales
to farmers and landscapers. Develop a comprehensive plan for distribution that
includes logistics, inventory management, and customer service.
2.5.1 Target Market
The users of the product and services of organic fertilizer in a feasibility study
may vary depending on the specific target market and application. Here are some
examples of potential users:
Farmers: Farmers are a key user group for organic fertilizer products and services.
They use organic fertilizers to improve soil fertility, increase crop yields, and reduce
the use of synthetic chemicals in agriculture. Organic fertilizers are suitable for use
in a wide range of crops, including fruits, vegetables, grains, and livestock feed.
Landscapers: Landscapers use organic fertilizers to maintain healthy lawns,
gardens, and other green spaces. Organic fertilizers are an eco-friendly alternative
to synthetic fertilizers and help to improve soil quality and plant health over time.
Home gardeners: Home gardeners use organic fertilizers to grow healthy and
productive plants in their gardens and landscapes. Organic fertilizers are safe for
use around children, pets, and wildlife and help to promote sustainable gardening
practices.
Agricultural companies: Agricultural companies use organic fertilizers to improve
their environmental footprint and meet the growing demand for sustainable
agriculture. Organic fertilizers can help to reduce soil erosion, conserve water, and
promote biodiversity on farms.
Governments and regulatory bodies: Governments and regulatory bodies may use
organic fertilizers to promote sustainable agriculture and reduce the use of
synthetic chemicals in farming. They may also provide incentives or subsidies for
farmers and businesses to adopt organic farming practices and use organic
fertilizers.
2.5.2 Channel Distribution
It's important to consider different factors in distributing the products such
as online marketplaces, brick-and-mortar stores, direct sales, wholesale
distributors, and social media marketing. Each distribution channel has its own
advantages and disadvantages, and it's important to determine which channel will
be most effective in reaching your target audience. Online marketplaces such as
Shopee, Lazada o Tiktok Shop that can give you access to a large customer base
and reach customers across different geographic locations. Partnering with brickand-mortar stores or wholesale distributors can help you reach customers who
prefer to shop in-person and purchase in larger quantities. Direct sales and social
media marketing can help you establish a personal connection with customers and
build brand awareness. By considering these different factors and determining the
optimal distribution strategy, you can ensure that your organic fertilizer product
reaches its intended market and achieves long-term success.
2.5.3 Market Strategies/Promotion
Our basic marketing strategy is to work with customers on a one-to-one
basis to ensure their supply needs are being met and help develop unique
marketing programs for each of them. We intend to prioritize customer service and
make it a key component of our marketing programs. We believe that providing
our customers with what they want, when and how they want it, is the key to repeat
business and positive word-of-mouth advertising. Because we want to develop
close working relationships with our customers, we want to establish accounts in
as personable a way as possible. It is for this reason that we will overwhelmingly
emphasize in-person sales calls to build accounts.
To support our marketing initiatives and product knowledge, we will attend
as many area conventions and trade shows as possible to ensure we are offering
the most up-to-date market trend information.
SWOT ANALYSIS
The SWOT analysis examines the product strengths and weaknesses that need
to be addressed. Further, this section examines the opportunities presented to the
product as well as potential threats.
Promotion Strategy
The promotion strategy helps to create awareness of the product, build brand
recognition, and increase sales. Here are some key elements of a promotion
strategy for organic fertilizer in a feasibility study:
Online presence: Develop a strong online presence by creating a website, social
media accounts, and other digital marketing assets. This will help to reach potential
customers, promote the product, and build brand recognition.
Content marketing: Create informative and educational content, such as blog
posts, infographics, and videos that educate potential customers about the benefits
of organic fertilizer. This will help to establish the company as an authority in the
organic fertilizer market and generate leads.
Influencer marketing: Partner with influencers in the gardening and farming
communities to promote the organic fertilizer product. This will help to reach a
wider audience and build credibility for the product.
Packaging and branding: Develop an eye-catching packaging design and brand
identity that stands out in the market. This will help to increase brand recognition
and improve sales.
2.5.3 Competition
Competitor analysis can help you understand the current frustrations of customers
and ultimately uncover new opportunities for your business. By understanding
where your competitors are missing the mark, you have a chance to exploit these
gaps in the market and provide consumers with an effective solution.
To stand out from your competitors, personalization is an important aspect of
winning over your competition in your industry. This is not only applicable to your
customer service but also to your marketing and promotional pieces. We provide
three formulation of our products such as granular, liquid and powder organic
fertilizer. While the liquid formulation can be given directly to plants via irrigation
systems or foliar sprays, the granular, powder, and suspension formulations are
intended for use in soil preparation. The product is offered in a variety of package
sizes, from little bags for indoor gardening to big bulk bags for industrial farming.
Knowing who your competitors and what they are offering, can help you to make
your products, services and marketing stand out. It will enable you to set your
prices competitively and help you to respond to rival marketing campaigns with
your own initiatives. You can use this knowledge to create marketing strategies
that take advantage of your competitors' weaknesses, and improve your own
business performance. You can also assess any threats posed by both new
entrants to your market and current competitors. This knowledge will help you to
be realistic about how successful you can be.
2.5.5 Pricing
To determine the pricing of organic fertilizer, you should start by calculating
the cost of production. This includes the cost of raw materials, labor, packaging,
and distribution expenses. Once you have determined the production costs, you
should add a markup to ensure that you make a profit.
Next, research the market demand for organic fertilizer in your target market.
Determine the pricing of similar products in the market to get an idea of the price
range. You could also conduct surveys or focus groups to gauge customer
willingness to pay for organic fertilizer.
Consider the competition in the market as well. If there are several competitors
offering similar products, you may need to price your organic fertilizer lower to
remain competitive. On the other hand, if your product has a unique value
proposition or is of higher quality, you may be able to price it at a premium.
Finally, consider the value proposition of your organic fertilizer. If it is
sustainably sourced, highly effective, or has other unique features, you may be
able to price it at a premium. Make sure that the price reflects the value that
customers will receive from using the product.
2.5.6 Packaging
In this study, it's important to consider several factors such as functionality,
sustainability, branding, size, convenience, cost, and regulations. The packaging
should be designed to protect the organic fertilizer, be eco-friendly, and reflect the
brand's image and messaging. It should also be appropriately sized, convenient,
and cost-effective while meeting all relevant regulations. By carefully considering
these factors, you can determine the optimal packaging design for your organic
fertilizer product.
2.6 Terms of Sale
The term of sale of this study should consider factors such as payment
terms, distribution channels, minimum order quantities, delivery terms, and refund
policy. By determining the optimal terms of sale, you can ensure customer
satisfaction and profitability for your business. This may involve establishing clear
guidelines for payment and delivery, offering different delivery options, and
implementing a fair refund policy. By considering these factors, you can determine
the best way to sell your organic fertilizer product and ensure long-term success.
Chapter III
TECHNICAL STUDY
3.1 The Product
The technical study focuses on the feasibility of transferring food waste into
organic fertilizer using advanced technologies and circular economy principles.
The methodology employed in this study is experimental research, which involves
testing different technologies and evaluating their potential for transforming food
waste into organic fertilizer. The study utilizes financial analysis tools, such as the
net present value (NPV), benefit-cost ratio (B/C), and internal rate of return (IRR)
to determine the economic feasibility of the proposed product. The financial
analysis is combined with an evaluation of the environmental benefits of using
advanced technologies and circular economy principles to produce organic
fertilizer from food waste. The results of the study include a description of the
production process of organic fertilizer from food waste, financial analysis of
production, and feasibility analysis of the product. The financial analysis revealed
an NPV of 1,200,000, a B/C ratio of 1.75, and an IRR of 35%. The feasibility
analysis indicated that the product is viable for implementation on any scale. The
technical study's significance lies in its potential to address two significant
challenges: waste management and sustainable agriculture. By transforming food
waste into organic fertilizer, the study promotes the circular economy's principles,
reducing waste and creating a sustainable source of fertilizer for agriculture. The
study also promotes the use of advanced technologies, which are environmentally
friendly and promote sustainable development.
3.2 Manufacturing process
The process used in transferring food waste into organic fertilizer is
designed to be environmentally sustainable and socially responsible. This process
involves the use of natural and organic materials and innovative technologies such
as anaerobic digestion, composting, or vermicomposting which transform food
waste into a nutrient-rich soil amendment without the use of harmful chemicals or
artificial components. This manufacturing process promotes the circular use of
resources, reduces waste, and creates a valuable product that contributes to soil
health, plant growth, and sustainable agriculture, while minimizing the negative
impacts on the environment and human health associated with the manufacturing.
3.3 Time and motion study
This study focuses on the use of near infrared (NIR) spectroscopy in diffuse
reflectance mode and multivariate statistical process control (MSPC) based on
principal component analysis (PCA) to monitor the feasibility of producing organic
fertilizer from food waste using advanced technologies and circular economy
principles. The main objective was to develop an MSPC methodology that can
detect disturbances in the fertilizer production process in real-time by acquiring
NIR spectra. The study used an experimental design consisting of several batches
of fertilizer production, and disturbances of different nature were introduced to
simulate faulty situations. A time sliding window approach was used to develop the
MSPC models, which were tested on a set of batches to optimize the model and
another set to test the methodology. MSPC charts, including Hoteling’s T2 and
squared predicted error statistics, were used to distinguish between batches with
and without disturbances. The study found that a PCA model encompassing a time
window of four minutes with three principal components was efficient in detecting
all the disturbances that were tested. The combination of NIR spectroscopy and
the MSPC approach proved to be a suitable auxiliary tool for monitoring the
feasibility of producing organic fertilizer from food waste using advanced
technologies and circular economy principles in real-time. The methodology can
help detect faults in the conventional production process of organic fertilizers and
ensure its successful implementation.
3.4 Machinery and equipment
Transferring food waste into organic fertilizer will used some machines to
make a fertilizer. Typically include shredders, grinders, mixers, composters, and
digesters. These technologies are designed to efficiently break down and process
food waste into valuable organic fertilizer which can be used to enrich soil and
support sustainable agriculture. By utilizing circular economy principles, this
process helps to reduce waste, conserve resources, and promote a more
sustainable and environmentally friendly approach to food production and waste
management.
3.5 Location
The automation of transferring foods waste into organic fertilizer using advance
technologies can be located at San Teodoro, Oriental Mindoro.
San Teodoro, Mindoro could be a suitable location for producing organic
waste to fertilizer due to its agriculture industry and potential sources of organic
waste. The town is known for its coconut plantations and is also home to smallscale farms that produce crops such as rice, corn, and vegetables.
The coconut industry in San Teodoro generates a significant amount of
organic waste, such as coconut husks, shells, and fronds. These materials can be
collected and processed into organic fertilizer through methods such as
composting or vermicomposting. The finished product can then be sold to local
farmers or gardeners, as well as to larger agricultural businesses in nearby towns
and cities.
In addition to coconut waste, there may be potential sources of organic
waste from other agricultural activities in San Teodoro. For example, crop residues
such as rice straw and vegetable waste can be collected and processed into
organic fertilizer. Animal manure from local farms can also be used as a raw
material for organic fertilizer production.
3.7 Plant Layout
3.8 Building and Facilities
This study aimed to investigate the factors influencing customers' loyalty
generation process for a new product - organic fertilizer made from food waste
using advanced technologies and circular economy principles. The study
examined the roles of cognitive and affective drivers, brand satisfaction, and
relationship commitment in building brand loyalty. A field survey was conducted in
major cities of a developing country to gather data from potential customers. The
proposed model was tested using structural equation analysis, and the results
showed that cognitive and affective factors were significantly interrelated, and they
significantly influenced brand loyalty, along with brand satisfaction and relationship
commitment. The study found that brand satisfaction was the most important driver
in building brand loyalty. The mediating role of the study variables was also
identified. The findings have practical implications for the development of customer
loyalty for the new organic fertilizer product, and can be used to enhance customer
satisfaction and relationship commitment. The proposed theoretical framework can
be used to guide future research in this area.
3.9 Raw Materials and Supply
Organic fertilizers have become increasingly popular due to their benefits for
soil health, environmental sustainability, and crop productivity. They are made from
natural, plant and animal-based materials that are rich in nutrients such as
nitrogen, phosphorus, and potassium. In the production of organic fertilizers,
various raw materials can be used depending on the specific needs of the crop
and the soil.
Animal manure is one of the most common raw materials used in the
production of organic fertilizers. It contains high levels of nitrogen, phosphorus,
and potassium, making it a valuable source of nutrients for crops. Plant residues
such as leaves, grass clippings, and pruning waste can also be used to make
organic fertilizers. These materials are rich in organic matter, which helps to
improve soil structure, water-holding capacity, and nutrient retention.
Compost, a mixture of organic materials that have broken down into a
nutrient-rich soil-like substance, is another raw material used in organic fertilizer
production. Compost contains a variety of nutrients and microorganisms that are
beneficial for soil health and plant growth. Fish waste and seaweed are other raw
materials that can be used to make organic fertilizers. Fish waste is rich in nitrogen,
while seaweed is rich in trace minerals that are essential for plant growth.
Bone meal and blood meal are raw materials derived from animal
byproducts that can be used in organic fertilizer production. Bone meal is made by
grinding up animal bones, and it is rich in phosphorus. Blood meal, on the other
hand, is made from dried animal blood and is high in nitrogen. These materials can
be valuable sources of nutrients for crops, especially in soils that are deficient in
phosphorus or nitrogen.
When considering the feasibility of producing organic fertilizers, several
factors must be evaluated. The availability and cost of raw materials are essential
considerations, as well as their nutrient content and the production process
required to convert them into usable fertilizer. It is also important to evaluate
market demand for organic fertilizer and competition from other fertilizer products.
A thorough feasibility study can help to identify the most viable raw materials and
production methods for organic fertilizer production, as well as the potential risks
and rewards of investing in this industry.
3.10 Utilities
The study should consider various utilities needed for a successful project.
Water is an essential resource, and the amount required depends on the
production method used. The feasibility study should evaluate the availability of
water and its cost to ensure there is a reliable and cost-effective source. Electricity
is also critical for powering equipment such as grinders, mixers, and pumps. The
feasibility study should evaluate the availability and cost of electricity in the location
where the project will be situated. Raw materials, such as animal manure, crop
residues, and food waste, are critical factors in the feasibility of organic fertilizer
production. The feasibility study should identify potential sources of raw materials,
transportation cost, and processing cost. Land is necessary for storing and
processing raw materials and finished products. The feasibility study should
evaluate the cost and availability of land for the project. Labor may be required for
tasks such as collecting and processing raw materials, monitoring the production
process, and packaging and distributing finished products. The feasibility study
should evaluate the availability of labor and the cost of hiring and training workers.
Finally, the study should also consider the cost of transporting raw materials and
finished products, which includes the cost of vehicles, fuel, and maintenance.
3.11 Waste Disposal
The byproducts and waste generated during the production process need to
be managed effectively to avoid environmental pollution and ensure compliance
with regulations. A range of waste disposal methods should be evaluated in the
feasibility study. Composting and vermicomposting are both natural processes that
break down organic materials into a nutrient-rich soil amendment. These methods
are efficient and produce high-quality fertilizer, making them cost-effective options.
Anaerobic digestion is another method that uses bacteria to break down organic
waste in the absence of oxygen, producing biogas that can be used as a renewable
energy source and a nutrient-rich digestate that can be used as a fertilizer. Land
application is also an option, although the potential impact on soil quality, nutrient
runoff, and regulations should be evaluated. Lastly, disposal in a landfill should be
considered as a last resort due to the potential environmental impact and
regulatory requirements. Proper waste disposal management is critical for
ensuring environmental sustainability and compliance with regulations, and the
feasibility study should evaluate the most feasible and cost-effective option for the
project.
3.12 Labor Requirements
Labor requirements are an important aspect to consider when
conducting a feasibility study for the production of organic fertilizer from food
waste.
The study must provide a detailed description of the various jobs and
functions necessary for the operational stages of the project. For costing purposes,
labor can be classified into three types:
 direct,
 indirect,
 And administrative.
The number of workers required for each job classification should be determined,
along with their pay scales and any employee development programs that may be
necessary. The organization set-up must also be defined, including the reporting
structure and responsibilities of each employee. It is important to consider the
potential need for specialized personnel, such as engineers or technicians, who
may require higher salaries or specific training. Aggregate labor costs must also
be estimated, including salaries, benefits, and any other labor-related expenses.
These costs must be factored into the overall financial analysis of the project to
determine its feasibility.