COMPOST MARKET ASSESSMENT -- EXAMPLES
Unpublished -- from Case Studies by Sandra Cointreau
Composting is a natural process wherein micro-organisms present in waste’s organic matter are
encouraged to grow and eat waste. These micro-organisms, various common bacteria and fungii found
in soil, need air, proper moisture, and access to clean non-toxic food in order to eat and grow. As they
eat, they use of the air in their immediate area and eat all of the waste near them. They can not walk
around inside the pile, so the waste piles must be periodically turned so that they are again placed in an
area with access to air and food. Eventually, after about 6 to 7 turnings of the waste piles, or after about
6 to 8 weeks of time, they will have eatten all the good waste and they will die. Compost is their dead
bodies, small spongy black particles that feel soft and smell sweet and earthy.
Sometimes, partially composted (about 30 to 45 days old) is put in small piles with special earth
worms. They will eat the waste in the small piles and move around. After about 30 days, they will
complete their eatting and will need to be screened and put on new piles. The material which is left is
their “casting”, or their excreta. This too feels soft, spongy, and is a rich black color with a good smell.
This is called vermi-compost.
In all countries, some of the solid wastes generated within urban areas are technically and
environmentally suitable for purposes of producing compost. In lower income countries, the municipal
solid waste is better for composting than the waste in high income countries; because it is higher in
putrescible vegetable material, higher in moisture, lower in non-compostable materials such as paper,
plastic, metal, and glass, as well as lower in hazardous elements such as heavy metals and pesticides. For
a comparative perspective on the greater amenability of wastes from lower income countries to be
composted see Table 1.
A large portion of the municipal solid wastes in developing countries could be converted into a
compost of high quality and farmers in the agricultural area around cities would welcome receipt of high
quality compost -- particularly if it is made from food wastes from restaurants, hotels, markets, and
slaughterhouses, as well as garden wastes from parks and yards. However, this fact alone does not
provide justification for implementing composting facilities.
Sanitary landfill is the lowest cost disposal option in all low income countries, except in those
rare instances where land acquisition costs (including resettlement costs) are inordinately high.
Composting costs are usually more expensive than sanitary landfilling by a factor of 2 to 3 in low income
countries, as indicated in Table 2. In the USA (1998), costs for composting were reported as 36
$US/tonne of food and yard waste in Hutchinson, Minnesota (where tipping fees at the sanitary landfill
are 46 $US/tonne) and 22 $US/tonne of food waste in Redondo Beach, California (where tipping fees at
the sanitary landfill are 38 $US/tonne)1.
To break even, compost needs to sell for the cost of production, minus the tipping fee received
(which is typically equal to the cost or tipping fee of sanitary landfill. In the USA, compost costs are
1
World Wastes, August 1998
COMPOST MARKETS
1
now roughly equivalent or lower than the cost (or contractor price) of sanitary landfill. Therefore, any
income would be a profit. When bagged and enhanced with chemical fertilizers or enzymes, compost
sells (to urban gardeners) for a markedly higher price than when sold in bulk. For example, 1998 prices
in Connecticut, USA are 15-16 $US/18 kg bag for composted dehydrated poultry manure -- or about 860
$US/tonne.2 Similarly, 1998 prices in Mauritius for imported bagged and enhanced compost from food
and yard waste were 23 Rupiahs/2.3 kg bag -- or about 434 $US/tonne.3
While compost fetches a higher price when bagged, only a small market wants such small
quantities of compost. Most farmers want large amounts, purchased by truck load. Enhanced compost
product sold in bulk in Bangalore, India in 2001 sells for about 1,600 Rs./tonne – or about 34 $US/tonne,
while vermicompost sells for about 2,750 Rs./tonne – or about 58 $US/tonne. Unenhanced compost in
bulk sells for only 900 Rs./tonne – or about 19 $US/tonne. (Vermicomposting requires much more land
than composting, because the piles can be not high or they would crush the worms. Area requirements
are 5 to 10 times greater. Therefore, at large plants, vermicomposting should be only a final stage,
wherein worms eat partially composted product.). Fresh cow manure sold locally is available for only
300 Rs./tonne – or about 6 $US/tonne.
In most developing countries, the cost of implementing sanitary landfill probably would be $US
5 to 10/tonne. On the other hand, the cost of composting probably would be $US 10 to 20/tonne
(depending on the level of mechanization utilized to speed up the process). At a composting cost of $US
10 to 20/tonne of refuse being composted, the cost of compost product would be at least $US 30 to
60/tonne because it takes a minimum of 3 tonnes of refuse to produce 1 tonne of compost (unless there is
minimum segregation of non-compostables before the waste arrives at the composting plant, in which
case it could take 4 to 5 tonnes of waste arrivals to produce 1 tonne of compost).
Only if the cost differential between composting and sanitary landfilling can be covered by the
sale of compost would it be appropriate for composting to be implemented. The key question to be
answered is whether the demand for compost exists or can readily be developed, and whether the
prospective compost purchasers have adequate income or access to investment financing to cover the cost
differential for composting.
One way to quickly assess the market demand is to examine the local price for animal manure. If
compost production can achieve a price below the sale price of manure, the compost will be marketable if
its quality can be maintained. Manure from cows and chickens is generally considered a more attractive
organic soil amendment than compost, because its quality is consistent and there is no risk of hazardous
constituents, such as heavy metals or pesticides. In general, animal manure has an NPK value of about
1.6/1.3/3.3. Compost NPK varies from a low of 0.1/0.1/0.1 to a high of 1.8/1.7/2.3.
Compost needs to be matured before application to soils. Application of immature compost
(characterized by a C/N ratio over 30:1) can cause decompostion to continue in the soils and lead to
anaerobic conditions and anaerobic decomposition by-products, including phytotoxic levels of organic
2
3
Retail price at the Blue Feed Barn, Roxbury, CT, USA
Retail price at the Continent super market, Vacoas, Mauritius.
COMPOST MARKETS
2
acids, ammonia and nitrite. Compost with a C/N ratio of about 20:1 is desireable. Most compost plants
hold compost for a 30 day period, after the nearly two months of composting, in order to obtain mature
safe compost that is ready for soil application. Based on the published literature, the typical composition
of compost is described below:







Moisture -- 30 to 50% by weight
Inert Matter -- 30 to 70% by weight
Organic Matter -- 10 to 30% by weight
Particle Size -- 2 to 20 mm
Nitrogen -- 0.1 to 1.8%
Phosphorus -- 0.1 to 1.7%
Potassium -- 0.1 to 2.3%
The quality of compost needs to be assured by source segregation of wastes which would be
harmful to soils and crops. Heavy metals are of special concern. Based on standards provided by the
Council of European Communities, the concentration of heavy metals in any soil amendment (including
compost or treated wastewater) should be low enough that regular applications of appropriate compost
quantities would be below the following maximum annual loadings on soil (in kg/hectare/year) :






Cadmium -- 0.15
Copper -- 12
Nickel -- 3
Lead -- 15
Zinc -- 30
Mercury -- 0.1
COMPOST MARKETS
3
While soil loadings annually are the preferred way of managing compost, it is easier to simply
monitor the compost composition at the plant. The India Gazette published solid waste management
regulatory guidelines in 1999, which included maximum permissible limits for heavy meals in compost
product, as noted below:
 Arsenic
20ppm maximum
 Cadmium
20 ppm “
 Chromium
300 ppm “
 Copper
500 ppm “
 Lead
500 ppm “
 Mercury
10 ppm “
 Nickel
100 ppm “
 Zinc
2500 ppm “
Composting does not negate the need for sanitary landfill. Some wastes are not compostable, and
should not be sent to the plant. Also, after composting, there are residuals from the process. These
residuals are the hazardous, noncompostable or recyclable items removed from the initial sorting stage,
as well as the items screened and density separated from the compost product after composting (such as
sand, stone, broken glass, and ash). The Bangalore compost plant in India reports that there 2001
residuals comprise 10-15% of the incoming weight of waste, and 70% of the incoming volume, which
indicates an appreciable landfill space is required for residuals disposal. The volume is high because
these are often light density residuals, such as plastics and paper.
Controlled landfill of compost residuals should be acceptable, as they have been subjected to
treatment by composting. Nevertheless, collection and treatment of the contaminated drainage is
necessary. Recirculation of treated leachate can be conducted to avoid discharge, otherwise the
discharge must meet government’s discharge regulations for the size and quality of local receiving water.
COMPOST MARKETS
4
GLOBAL PERSPECTIVE ON
REFUSE DIFFERENCES
KG/CAPITA/DAY
LOW
INCOME
COUNTRY
0.4 to 0.6
MIDDLE
INCOME
COUNTRY
0.5 to 0.9
HIGH
INCOME
COUNTRY
0.7 to 1.8
PUTRESCIBLES %
PAPER %
PLASTIC %
METAL %
GLASS %
RUBBER,MISC.%
FINES %
40 to 85
1 to 10
1 to 5
1 to 5
1 to 10
1 to 5
15 to 60
20 to 65
15 to 40
2 to 6
1 to 5
1 to 10
1 to 5
15 to 50
20 to 50
15 to 40
2 to 10
3 to 13
4 to 10
2 to 10
5 to 20
MOISTURE %
40 to 80
40 to 60
20 to 30
DENSITY KG/C.M.
250 to 500
170 to 330
100 to 170
LOWER KCAL/KG
800 to 1100
1000 to 1300
1500 to 2700
Notes:
1. Country categorization by income is based on 1992 GNP data from the 1994 World Development
Report published by the World Bank. Waste data based on a wet, "as received", condition (i.e, not oven
dried).
2. Compaction trucks achieve load densities of 400 to 500 kg/c.m. in both developing and industrialized
countries, based on their hydraulic mechanism designs. Higher densities result from high soil and water
contents present at high levels in the wastes of some countries.
3. For self-sustained incineration, a year-round minimum of 1300 kcal/kg lower calorific value (i.e., as
received) is needed. For waste-to-energy plants, 2200 kcal/kg is the minimum calorific value desired.
4. Some Eastern European cities within middle income countries have marginally suitable levels
calorific value for incineration of 1300 to 1600 kcal/kg.
Source: Sandra Cointreau 1993
COMPOST MARKETS
5
DISPOSAL COSTS BY ALTERNATIVE TECHNOLOGIES
AVE. INCOME FROM
GNP
OPEN DUMPING
SANITARY
LANDFILL COST
TIDAL LAND
RECLAMATION
COMPOSTING
LOW
INCOME
COUNTRY
MIDDLE
INCOME
COUNTRY
HIGH
INCOME
COUNTRY
370 $/cap/yr
0.5-2 $/m.t
2,400 $/cap/yr
1-3 $/m.t.
22,000 $/cap/yr
5-10 $/m.t.
3-10 $/m.t.
5-12 $/m.t.
20-50 $/m.t.
3-15 $/m.t.
10-40 $/m.t.
30-100 $/m.t.
5-20 $/m.t.
10-40 $/m.t.
20-60 $/m.t.
40-60 $/m.t.
30-80 $/m.t.
70-100 $/m.t.
INCINERATION
Note:
1. Income based on 1992 Gross National Product data from the 1994 World Development Report
published by the World Bank. Costs are estimated from 1992 information.
2. Composting costs in 1990 in Delhi, India and Bandung, Indonesia, by labor intensive systems of
lowest costs were about 7 $/m.t. Composting costs in Bangkok, Thailand for a slightly more mechanized
system are about 36 $/m.t.
3. Incineration costs in 1992 in Surabaya, Indonesia (without pollution control) were about 43 $/m.t.,
for refuse at a calorific value of 1100 kcal/kg at the source and 1200 kcal/kg after 5 days of drying in the
pit. Fuel must be added daily, even during the dry season and even after 5 days drying in the pit, in order
to sustain combustion.
4. Incineration costs in 1992 in Japan were about 90 $/m.t., for refuse at a calorific value of 1600
kcal/kg at the source and 2000 kcal/kg after source segregation of dry wastes. No fuel is required as the
refuse is well above the 1300 kcal/kg minimum year-round to sustain combustion.
5. $/m.t means US Dollars per metric tone, and $/cap/yr means US Dollars per capita per year.
6. There are significant economies of scale in landfills. Landfills below 300 tonnes/day lose economies
of scale and cost 2 to 3 times more than landfills of over 500 tonnes/day.
Source: Sandra Cointreau, 1993
COMPOST MARKETS
6
Discussion from Izmir, Turkey report, 1994, on the market for compost:
(Note: 1$US = 30 TL in 1994)
The Izmir compost plant keeps no records of its customers, their agricultural products, their
compost application rates, or their transport distance. There is no information on customer satisfaction
with the compost product, the price and availability of competitive products (such as animal manure)
available to the customer, or amount which customers could afford and would be willing to pay for the
product. Given the paucity of information on market demand potential, prices are arbitrarily established
by Izmir City's Council. At the prices being charged, not even recurrent expenditures are being recovered
and Izmir City is subsidizing the rural agricultural community.
As part of the study, there were discussions held with agricultural experts in state government.
There are 379,442 hectares (ha) of land in Izmir Province in agriculture. More than half of the land is in
vegetable farming. About one-fourth is in production of trees for pulp and paper use. Field and fruit
crops make up most of the remainder of agricultural land use. It is generally accepted by local
agronomists that vegetable cropland would benefit from application of an average of 3 tonnes/ha/year of
compost. Therefore, there is theoretically a market for about 600,000 tonnes/year of compost -- much
more than the amount being produced by Izmir.
According to the information available, most of the farms are small -- 68% are less than 20 ha,
and about 20% are between 20 and 50 ha. The farmers' yields and costs for production of key crops is
4,380 kg/ha and 1,678 TL/kg of wheat; 1,075 kg/ha and 7,113 TL/kg of cotton; and 867 kg/ha and
37,955 TL/kg of tobacco. For these crops, costs range from 7.3 million TL/ha to 32.9 million TL/ha.
Given that the cost of compost production is roughly 900,000 TL/tonne of compost product (see next
paragraph), purchase of the recommended 3 tonnes/ha/year would cost 2.7 million TL/ha and could have
a significant impact on farmers' profitability. Much more data needs to be collected to assess this further.
For fiscal responsibility, it is inappropriate for a City to use its revenues to subsidize a
commercial product used by the rural communities outside of the City. Izmir has an obligation to its
citizenry to provide disposal by the most cost-effective system. If composting costs more than the lowest
cost system, those benefitting from it must pay the difference. Therefore, farmers should pay the full
cost differential between the costs of sanitary landfill and the costs of composting. For purposes of this
discussion, using current costs, controlled landfill in Izmir costs about 4 $US/tonne of refuse and
composting costs about 10 $US/tonne of refuse. The cost differential is about 6 $US/tonne, or 180,000
TL/tonne of refuse. It takes about 5 tonnes of refuse to make 1 tonne of compost at the existing plant.
Therefore, the compost product would need to be sold for about 30 $US/tonne, or 900,000 TL/tonne of
compost. The current price paid by farmers for compost is only 50,000 TL/tonne.
COMPOST MARKETS
7
Discussion from Greater Montego Bay (GMB), Jamaica report, 1994, on the market for compost:
(Note: 1$US = 30 $JA in 1994)
A high portion of the farm land in Jamaica produces extensive (i.e., low revenue) crops. The
revenues from extensive crops generally would not be adequate to significantly create a market demand
for compost. Major extensive crops include sugar cane, root crops, and maize. However, there are also
intensive (i.e., high revenue) crops such as tomatoes, bananas, coffee and flowers. Whether the revenues
from these intensive crops are sufficiently high to enable farmers to invest in compost needs to be
explored in some detail. It also needs to be explored whether these crops exist within an economic
transport distance (i.e., about 50 km by road) from the GMB. However, to illustrate the potential,
farmers growing bananas have a gross revenue of $JA 120,000/hectare, $JA 125,000/hectare for coffee,
and $JA 300,000/hectare for vegetables. The net revenue for these crops is expected to be about 25% of
gross revenue, based on local agricultural extension service experience. The coffee and banana farmers
are not generally operating at a subsistence level and are expected to be able to reinvest in their land for
improved production yield and higher quality fruits. On the other hand, most of the vegetable farms are
considered to be operating at a subsistence level because of the high fertilization requirement of their
crops, and ability to reinvest would be limited.
If we look at compost costs in terms of whether they fall within the current investment levels
made by farmers, we can see that the potential for selling the product at a price which covers cost does
exist -- so long as transportation costs are minimal. The closest agricultural areas providing a potential
market for compost are Cambridge and Catadupa, where bananas, coffee, and cocoa are grown.
Most farmers producing intensive crops now spend about 8,000 $JA/hectare on chemical
fertilizer. According to rural agricultural experts in the GMB area, local application rates for compost
are 3 to 10 metric tonnes/hectare at establishment (i.e., during the initial planting year for coffee and
banana) or about 3 metric tonnes/hectare for maintenance (i.e., for vegetables and flowers). For an
application rate of only 3 metric tonnes/hectare, the compost cost would be $JA 2,700-5,400/hectare
(plus transportation costs which can be substantial because compost is bulky and 1 tonne takes up 3-4
cubic meters of truck capacity). Because compost could conceivably reduce the farmers dependence on
chemical fertilizer (by complexing and adsorbing the chemical nutrients so that they are more available
over a longer period of time), a $JA 4,000/hectare reduction in costs for chemical fertilizer would nearly
compensate for the costs of adding compost.
The product which would compete with compost as a soil conditioner is manure from animals or
poultry. Poultry farming is the major supplier of manure in Jamaica. There are two poultry processing
plants located on the South Coast of Jamaica, and related poultry farms are near. No poultry farms are
within the GMB area. Currently, coffee farms provide a demand for poultry manure and within St.
Catherine Parish poultry manure is priced at $JA 280 to 300/ton (or $JA 309 to 331/metric tonne).
Therefore, manure is priced much lower than the cost of compost would be.
From 1957 to 1974, Jamaica was the world's largest producer of bauxite. While Jamaica's
position as the world's leader has been lost to Australia and Guinea, Jamaica still has a significant
production of bauxite. Bauxite is removed from the ground through open strip mining. Upon completion
COMPOST MARKETS
8
of mining, the land is reclaimed by return of the original top soil material and then planted with crops or
trees. Land reclamation activities provide one potential market for compost. In 1992, bauxite accounted
for roughly 85 percent of the mining in Jamaica, at 11,367,000 tonnes mined. Country-wide, bauxite
mining companies reclaim about 100 hectares annually, according to the Jamaica Bauxite Institute, and
reclamation costs average US$ 11,115/hectare.
Currently most reclaimed lands are seeded for purposes of providing pasture land for cattle
raising. Application of 10 tonnes/hectare initially would be needed to substantially alter the ability of
these lands to support agriculture of potentially higher revenue potential, followed by maintenance
applications of about 3 tonnes/hectare. If 10 tonnes/hectare of compost were applied, the 9,000-18,000
$JA/hectare costs would add about 4% to reclamation costs. For 100 hectares of reclamation annually, a
potential market for initial compost application would be about 1,000 tonnes/year.
Unfortunately, the closest bauxite mining area to GMB is about 90 miles away, southeast, at
Kirkvine in Manchester Parish. There are bauxite reserves at Maggotty in St. Elizabeth Parish, about 40
miles inland. However the mining rights to these lands were held by the Revere Alumina Company
which ceased operations in 1974. Mining rights to these areas have not been reissued and there are no
immediate plans to commence bauxite mining in the area in the near future.
Transport costs would be about $JA 16/tonne/mile for trucking. Because compost is bulky (one
tonne occupies about 3 cubic meters), transportation costs by road to Kirkvine could negate the viability
of selling compost for land reclamation. Theoretically, it might be economic to transport compost by
rail. The use of rail to transport compost from GMB will ultimately depend on the pricing policies
established by the future owners/operators of the railway system. Presently, the Jamaica Railway
Corporation is not offering rail services to the public and the corporate holdings are being divested by
GOJ. To date, no offer has been accepted by the GOJ and the outcome of the divestiture can not be
predicted.
COMPOST MARKETS
9
Discussion from the Brasov, Romania, 1994, report on compost market:
(Note: 1 $US = 1700 Lei in 1994
Brasov has a history of composting its garden waste into compost and using it in the greenhouse
production of flowers. However, flower production is currently suffering the loss of state subsidies and
downturn in the market demand. Also, privatization of street cleaning activities has resulted in
distribution of garden waste among private companies not involved in the composting activity and
therefore a reduction in the feedstock for the compost plant.
Romania has a strong agricultural community. Country-wide, agriculture employs about 30% of
the country's total employment and is about 24% of the gross domestic product (GDP). The agricultural
sector was the first to be privatized on a major scale when Romanian land reform returned over 80% of
arable land to former owners or heirs. As a result, about 85% of employment in agriculture since 1992 is
in the private sector.
Many of the state-owned collectives for agriculture and animal raising are continuing to work
without significant change. In Brasov, 70% of privatized farms are working in association as
cooperatives. Because the individually-owned parcels are small (i.e. 0.5 to 2.5 ha), economies of scale
are not available and arrangements require innovative approaches to the sharing of resources (financial,
equipment and human resources).
Brasov District has extensive agricultural production and much of it is in crops with good
revenue generation capacity (e.g., potatoes). Whether the revenues from these intensive crops are
sufficiently high to enable farmers to invest in compost needs to be explored in some detail. If compost
purchase is affordable, it also needs to be explored what the level of demand might be relative to other
available organic conditioners in the region (such as animal manure). For purposes of this study, it is
assumed that the economic radius of transporting compost would be within 50 km.
There are about 250,000 ha of agricultural land in Brasov District -- 118,000 ha in crop
production and 132,000 ha in pasture land. The main crops are cereals (50,000 ha), potato (15,000 ha),
and sugar beet (4,000 ha). Animal production involves about 100,000 cattle, 300,000 sheep, 250,000
pigs and 2,000,000 chickens.
Soils in the area need organic conditioning on a regular basis. Roughly 70,000 ha have clayey
soils and 40,000 ha have only a thin mantle of top soil over sandy/gravely soils. To improve soil density,
moisture retention, and acidity, as well as to reduce soil erosion, organic conditioning is essential.
Locally, crop residues are used for feeding animals and almost nothing is left for production of an
organic condition.
Globally, recommended rates of compost application range from 2 to 10 tonnes/ha/year for cereal
crops, 5 to 25 tonnes/ha/year for root crops, and 10 to 50 tonnes/ha/year for vegetable and fruit orchard
crops. In poor countries, farmers typically apply no more than 10 tonnes/ha/year for the highest revenue
vegetable crops and average an application of only 3 tonnes/ha for root and other medium revenue crops.
COMPOST MARKETS
10
In Brasov District, for the range of crop and soil conditions locally prevalent, agriculture experts
recommend application of at least 10 tonnes/ha/year.
The amount of organic material available is widely agreed to be inadequate to meet the demand.
Agricultural experts estimate that there are from 2-400,000 tonnes/year of animal manure being locally
generated. Given a recommended average rate of 10 tonnes/ha/year of organic conditioner for local crop
and soil conditions, the total demand is about 1,180,000 tonne/year. Therefore, animal manure
production meets only 17-34% of demand.
Animal manure currently sells for 20-60,000 Lei/tonne after fermentation, with pig manure
selling at the lower levels because of its lower nutrient value and lower pH. At 10 tonnes/ha, the cost is
200-600,000 Lei/ha. Peat, an organic soil conditioner with little fertilizer value, is available for only 500
Lei/tonne; and is commonly used in 50:50 mixtures with sand in greenhouses, resulting in a cost of
roughly 1,000,000 Lei/ha.
Chemical fertilizer of Nitrogen/Phosphorus/Potassium (NPK) value of 15/15/15 quality sells for
about 320,000 Lei/tonne; and is used in applications of about 0.1 tonne/ha, resulting in a cost of 32,000
Lei/ha. Farmers receive subsidies covering about 50% of the cost of using chemical fertilizer on corn,
beet, and grain crops.
Chemical fertilizers locally are reported to have recently been limited in Potassium. As a result,
some local soils have become acidic and need amendment. Compost (which generally has a pH about 7,
depending on the level of fermentation) could remediate this condition, as well as provide organic
conditioning and fertilizer value.
Metals levels in compost depend on the level of industrialization in the area from which the solid
waste is derived. Generally, with separate collection of industrial wastes, sorting at the compost plant for
known hazardous wastes (i.e., batteries, paints, solvents, pesticides), and elimination of any pre-compost
grinding steps, the quality of the compost is likely to meet criteria to protect against phyto-toxicity.
Looking at compost costs in terms of whether they are affordable by farmers, the potential for
selling the product at a price which covers cost does exist -- so long as transportation costs are minimal
(i.e., preferably less than 20 km distance one way between the compost plant). Compost of refuse is
likely to cost at least 25-30,000 Lei/tonne of refuse (it could be higher if mechanization is used to entrain
air in the refuse, and mix and pulverize the refuse, in order to accelerate biodegradation by about 15%).
Subtracting for the "saved cost" for sanitary landfill which the City would have otherwise had to
bear, the cost of composting which the farmer would need to cover is 9-15,000 Lei/tonne of refuse, or 3660,000 Lei/tonne of compost since 4 tonnes of refuse typically make 1 tonnes of compost in middleincome countries.
From the most optimistic view, farmers with good yields from their seed potato crops had net
revenues in 1994 ranging from 35-180,000,000 Lei/ha. Application of 10 tonne/ha/year of compost
would cost 360-600,000 Lei/ha/year. Therefore, covering the cost of compost would consume only 1-2%
COMPOST MARKETS
11
of net revenues. Revenues from seed potatoes are expected to increase because Romania is expected to
hold and expand on its strong position to provide seed potatoes for all of Europe. Because of Romania's
strength in this area, the Government of the Netherlands is providing several million $US to the Institute
for Potato Research programs of training and development.
From a more conservative view, taking into consideration the range of crops grown and the fact
that potatoes can be grown only every fourth year, most farmers averaged revenues closer to 3,000,000
Lei/ha/year. At this level, compost application of 10 tonnes/ha/year would consume 12-20% of net
revenues.
Composting markets appear likely but would not be able support a high price. Therefore,
composting of wastes from public market are recommended with only minimal mechanization
recommended as a pilot program at the landfill. The pilot would have a conveyor, trommel screen,
windrow pile system, and final vibrating screen -- nothing more. As the market develops and the ability
and willingness of farmers to pay increases, the pilot can be expanded to handle only those organic
wastes which are safe from hazardous waste contamination, namely, restaurant, market, slaughterhouse,
and garden waste.
COMPOST MARKETS
12
Discussion from report for Ho Chi Minh City, Vietnam, 1992:
(Note: 1 $US = 10,000 Dong in 1992)
Ho Chi Minh City has developed a reasonable proposal to utilize portions of the existing facility at
HMRC Plant for composting by a relatively labor-intensive and economic method. The City's proposal also
includes improvement of the compost by fine screening and grinding, as well as by addition of chemical
fertilizer and pelletization. The cost of producing high quality compost product produced by this method
appears to match the willingness and ability of some farmers to pay.
For example, about 10,000 hectares of existing rice cropland could be converted to vegetable
cropland during the rainy season with a second season of cereal crops during the dry season. Such land
would change from generating revenues of only 5 million dong/ha for rice to revenues of 15 to 35 million
dong/ha (i.e., 10 to 30 million dong/ha for vegetables plus 5 million dong/ha for cereals) -- a 3 to 7 fold
increase in revenues per hectare. To enable such an increase in revenues, the farmer would need to apply 20
to 40 tonnes/ha/year of compost.
Assuming that an average farm is 2 hectares and supports 7 family members at an average family
living expense of 10 million dong/year, the farmer wishing to grow a vegetable and cereal crop annually
with revenues of 20 million dong/ha probably would be able to spend no more than 30% of his/her revenues
(i.e., 6 million dong/ha) on N-P-K and compost. For locally recommended application rates on vegetable
cropland of 200 kg/ha/year of urea, 60 kg/ha/year of phosphate, 50 kg/ha/year of potash, and 30
tonnes/ha/year of compost, an affordable cost to farmers (delivered cost) for high quality compost is
estimated as follows:
Component of NPK-Compost
Cost/tonne (Delivered) Cost/ha
Nitrogen (urea)
Phosphorus (phosphate)
Potassium (potash)
Sub Total
MAXIMUM AFFORDABLE COST
Compost (high quality)
2,600,000 D/t
800,000 D/t
1,500,000 D/t
178,567 D/t
520,000 D/ha
48,000 D/ha
75,000 D/ha
643,000 D/ha
6,000,000 D/ha
5,357,000 D/ha
The City estimates that an upgraded HMRC Plant would be able to produce high quality compost
(i.e., finely screened, pulverized, and pelletized) for approximately 160,000 D/t F.O.B. (See pg. 40 of the
City's December 1991 project proposal.) For full cost recovery by compost sales, this indicates that
transportation costs would have to be nominal to stay within the farmers ability to afford about 178,000 D/t,
as estimated above.
However, it is not reasonable to assume that the HMRC Plant should have to cover all of its costs
through sales. The City should be prepared to pay a "tipping fee" to the HMRC Plant in return for the
disposal service which it provides. Based on current refuse character in the City, composting 1 tonne of
refuse produces approximately 0.33 tonnes of compost. Assuming the cost of safe disposal of refuse by
COMPOST MARKETS
13
sanitary landfill would be about 10,000 D/t, a tipping fee of 10,000 D/t of refuse could offset the price of
compost product by about 30,000 D/t. This would result in a net cost to produce high quality compost of
approximately 130,000 D/t F.O.B. The transport costs within the region are 500 D/t-km. To stay within a
farmer's ability to afford about 178,000 D/t for compost "delivered, an affordable transport distance could
be no more than 96 km.
With the cost of adding N-P-K, the City estimates that the cost of 8-8-4 N-P-K-Compost would be
about 985,000 D/t F.O.B. Assuming that the farmer might have only 6 million dong/ha available for
purchase of N-P-K-Compost, this would enable application of no more than 6 tonnes/ha. As a farmer's
revenues increase, the farmer's ability to buy high quality compost or N-P-K-Compost would increase. At
this time, it is difficult to project what the actual demand for high quality compost versus N-P-K-Compost
could be. However, it is notable that N-P-K-Compost which is currently being produced in another region
from night soil and septic tank sludge is reportedly selling readily for 1,100,000 dong/tonne.
The City proposes to increase compost production by screening, adding chemical fertilizer, and
pelletizing matured refuse mined from the open dump. However, the mission has not evaluated the
appropriateness of this part of the proposal for two reasons. First, review of this part of the proposal was
not included within the terms of reference of the mission and adequate time was not available to make the
review. Second, and more important, the mission believes it is premature to consider compost production at
another site prior to completion of the recommended program at the HMRC Plant. The mission
recommends that the project proposal be revised to focus on upgrading the HMRC Plant and whatever conditions might be necessary to ensure its successful implementation.
While market demand analysis supports the potential for marketing the high quality compost
product to some farmers, it is not yet known how many farmers would have adequate finance to support
initial investments in the improvement of their cropland through compost application. During the First
Stage of the proposed project, farmers would be surveyed for their perceptions and a market survey would
be conducted to enable estimating the product's affordability and demand, as well as the farmers' ability to
secure finance.
The upgraded HMRC Plant would handle only 15-30% of the city's refuse, depending on the final
design of the plant's flow-through capacity. Disposal of the remainder of the refuse would continue to be
done by open dumping and direct provision of fresh garbage to farmers, which is not environmentally
acceptable. Therefore, the City needs to develop a plan to address its remaining disposal needs.
Approximately 85% of the City's land is rural, and most of it is being cultivated. The lands
producing crops total 95,000 hectares. Most of the demand for organic soil conditioner would come from
the approximately 25,000 hectares where vegetables and cash crops are being grown, because these crops
require from 5-30 tonnes/ha/yr of organic supplement. To a lesser extent, there could be demand from the
approximately 80,000 hectares where rice is grown, because rice requires only about 1 tonne/ha/yr of
organic supplement. In addition, approximately 25,000 hectares could be converted to vegetable farming if
30 tonnes/ha/yr were applied. The mission's estimates that demand exists within the City's jurisdiction for
approximately 1 million tonnes/year of affordable high quality compost during the initial "establishment"
COMPOST MARKETS
14
years of soil improvement, followed by a demand of approximately 0.3 million tonnes/year for
"maintenance" of soil quality.
The HMRC Plant if fully utilized would supply less than 10% of the City's "establishment" demand
for compost, and less than 30% of the City's "maintenance" demand. Additional demand is located outside
of the City's borders and compost is already being sold exported from the City to surrounding Provinces.
The only issue blocking farmers from purchasing compost to improve their soils and thus obtain higher
revenues is their lack of finance. Presently, the Agricultural Development Bank has limited funds to
provide credit to the farmers for this purpose. Perhaps more importantly, the procedures for obtaining
credit are cumbersome and farmers typically do not have the credit history and assets enabling them to
quality for credit. For the project to be successful, development of a credit line with appropriate procedures
enabling farmers to borrow would be essential.
The benefits of composting would accrue indirectly to the city, in the form of higher quality and
greater quantity of agricultural produce for urban markets, as well as higher revenues to farming residents
that are consumers of city goods. In addition, composting by appropriate technology would provide
environmentally acceptable and economically viable disposal for the City's refuse. The benefits to the
country would accrue from improved crop utilization of imported nitrogen, phosphorus and potassium
fertilizers.
COMPOST MARKETS
15
Discussion from the Hue and Nam Dinh, Vietnam report on compost market:
(Note: 1 $US = 11, 000 Dong in 1996)
Of Vietnam's total land area of 325,360 sq. km., 71,579 sq. km. is arable and 18,300 sq. km. is
irrigated (1989 estimate). Agriculture accounts for 36% of the gross domestic product of Vietnam.
Paddy rice, corn, and potatoes make up 50% of the country's farm output. Commercial crops (such as
rubber, sugar cane, coffee, tea and soybeans) and animal products make up the other 50%. Crop
distribution for the provinces wherein Hue and Nam Dinh are located are estimated in Table below,
based on interviews with local agricultural experts.
Table
1995 CROP DISTRIBUTION IN THE PROVINCES
(Hectares)
Crop
Total agricultural land in production
Rice
Cash crops (i.e., potato, groundnut, sugar cane)
Vegetables
Flowers
Fruits
Rubber
Hue
102,000
50,000
29,000
n.a.
10,000
3,500
Nam Dinh
150,000
120,000
11,000
10,000
500
7,000
n.a.
Source: Data collected from agricultural experts by the Scoping Mission
Vietnamese experience shows that crop yields are higher, fruit quality is better, and immunity
from disease and insect damage is improved when compost or other organic soil amendments are used.
The demand for organic soil amendment is much higher than the supply. For extensive crops, there is
limited revenue per hectare to allow investment in the soil. Also, for rice, the amount of organic
amendment should be controlled because the resulting decrease in pH from organic acids has an adverse
effect. Nevertheless, farmers would like to use about 3 tonnes/hectare for rice and up to 10
tonnes/hectare for other extensive crops. For intensive crops, farmers would like to use about 30
tonnes/hectare of organic amendment. Farmers currently use an average of only 8 tonnes/hectare in Hue
and 10 tonnes/hectare in Nam Dinh due to supply limitations.
Supply limitation involves three issues: (1) quantity, (2) quality, and (3) cost. Animal manure is
limited in quantity, but its quality is excellent and its cost is reasonable (only 50,000 to 130,000
Dong/tonne, 5-12 $US/tonne). Peat is limited in quality, buts in quantity is high and its cost is reasonable
(only 100,000 to 300,000 Dong/tonne, 9-27 $US/tonne). "Biofertilizer", a special mix of peat, NPK, and
soil microorganisms which is sold in bags, is high in quality and expensive (750,000 to 1,000,000
Dong/tonne, 68-91 $US/tonne). Compost is comparable in quality to the mixtures currently used by
most Vietnamese farmers, which involve on-site composting of animal manure from their own livestock
with their own crop residuals and human wastes. Table below indicates the range of compost possible
COMPOST MARKETS
16
from municipal solid waste, depending on the level of source segregation and preliminary classification
conducted prior to composting.
Farmers want to invest in organic amendment to upgrade their land from extensive to intensive
crops, so that they could double or triple their income. However, their means to invest are limited.
Revenues from crops in Vietnam are limited. Rice grosses only 16 Million Dong/hectare/2 annual crops;
corn grosses 16 to 26 Million Dong/hectare/2 annual crops; sugar cane grosses 16 to 24 Million
Dong/hectare/ crop; and vegetables gross 20 to 50 Million Dong/hectare/crop.
The average gross income of a 4 member farming family in the Nam Dinh area is only about
7,920,000 Dong/year, 720 $US/year for an average farm size of only 0.23 hectares. If such a farmer
were to invest 20% of his/her gross earnings in organic soil amendment, to achieve the recommended rate
of 30 tonnes/hectare of amendment, the farmer could pay no more than 230,000 Dong/tonne, 21
$US/tonne (delivered) of organic amendment. (Note: Average net income is reportedly only 930,000
Dong/year after all investments in farming are made.)
For a farmer producing intensive, high revenue crops, such as flowers or vegetables, gross
income could be 2 to 3 times higher. These farmers could afford to pay 2 to 3 times more for organic
amendment, or as high as 690,000 Dong/tonne, or 63 $US/tonne. Less than 20% of the agricultural land
around each city is in high revenue crop production. However, the demand from farmers growing
intensive crops could be more than 400,000 tonnes/year of compost -- a demand greater than the each
city could meet, even if all of the organic waste produced were composted.
Typically, compost can not be produced at a price which farmers growing extensive crops could
afford. However, with good cost and quality control, compost can be produced at a price affordable to
farmers producing high revenue intensive crops. It takes at least 3 tonnes of solid waste to make 1 tonne
of compost. Therefore, composting would have to cost less than 77,000 Dong/tonne of solid waste, 7
$US/tonne to be affordable by average farmers with extensive crops such as rice. On the other hand,
composting would have to cost less than 231,000 Dong/tonne of solid waste, or 21 $US/tonne to be
affordable by vegetable farmers and horticulturists.
The cost of composting typically ranges from 5-20 $US/tonne of solid waste, as shown in Table
5 above, depending on the level of mechanization and forced aeration. This would result in a cost of
compost product (assuming 3 tonnes of solid waste make 1 tonne of product) ranging from 15-60
$US/tonne of compost. Therefore, only a subsidized composting operation, or one which is operated in a
very low-cost labor-intensive manner could result in a product affordable to most farmers.
The composting operation in Hanoi confirms these more global estimates of costs are relevant for
Vietnam. Hanoi has a compost plant built in 1990 with UNDP grant financing and local contributions.
The plant design capacity is to process 30,000 tonnes/year of solid waste, with an output of 7,500
tonne/year of compost. The overall value of the investment was 650,000 $US. Over a life of 10 years,
this would mean a depreciation cost of about 65,000 $US/year for the investment. The actual use of the
facility is for only 10,000 cu.m./year -- or about 5,000 tonnes/year. Which means the investment
depreciation cost per tonne of actual use would be 13 $US/tonne of solid waste. If, however, the plant
COMPOST MARKETS
17
were used to its full design capacity of 30,000 tonnes/year of solid waste, the investment depreciation
cost would be as low as 2 $US/tonne of solid waste.
The recurrent expenditures for this 5,000 tonnes/year of actual use at the Hanoi compost plant
are 800,000,000 Dong/year, or 72,727 $US/year. This means a recurrent cost per tonne of 15 $US/tonne.
Therefore, the total cost for composting solid waste currently, given the underutilization of the facility,
can be estimated as 28 $US/tonne. In Hanoi, it takes 4 tonnes of solid waste to make 1 tonne of compost.
Therefore, to fully recover total depreciation and recurrent costs, the compost product would have to sell
for 112 $US/tonne of compost. If only the recurrent costs need to be recovered and no renewal is
considered, the compost product from Hanoi could sell for as low as 60 $US/tonne.
The actual bulk price of compost at the plant is 100 $US/tonne. When the compost is amended
with addition of chemical fertilizer, depending on the NPK ratios added the compost sells for up to 136
$/tonne. Most of the demand for this compost comes from farmers growing high revenue vegetable crops
and from horticulturists. For full cost recovery, which would enable facility renewal, the product is
clearly not affordable by the average farmer.
It is recommended that Hue and Nam Dinh operate a labor-intensive low-cost compost facility
adjacent to or near the landfill. This would enable composting and landfill equipment, drainage,
weighbridge, worker comfort stations, record-keeping, supervision to be shared, and thus potentiall lower
the cost of composting. Also, transport of residuals to disposal would not be required, thus eliminating
one cost element.
COMPOST MARKETS
18
Discussion from Brasilia Mission Report
(Note 1 $US = 1.1 Reais in 1997)
There are nearly 1,400 TPD of mixed municipal solid waste generated in Brasilia. Brasilia has 3
treatment facilities where materials recovery and composting are conducted, with an incinerator at one of
these treatment facilities. They are defined as follows:



a 600 TPD design capacity Dutch "TRIGA" compost plant (with pre-sorting) built in 1986 at
Ceilandia with a 30 TPD incinerator built in 1984,
a 250 TPD design capacity Danish "DANO" compost plant (with pre-sorting) at Aso Sul, and
a 20 TPD design capacity open air labor-intensive compost plant at Brazilandia with a new
(July 1997) 150 TPD sorting area for materials recovery.
Despite the potential for 870 TPD of waste to be handled at these facilities, only about 300 TPD were
being processed at the time of the Consultant's visit (180 TPD composted at Ceilandia, 90 TPD
composted at Aso Sul, 20 TPD incinerated at Ceilandia). Out of the total amount of mixed municipal
waste collected, about 22% were treated by composting and/or materials recovery, or incineration. While
there are parallel processing lines at each plant, at least one line is typically out-of-service, because it is
being cannibalized for spare parts for the lines in operation.
Currently the cost for composting, including pre-sorting of recyclable secondary materials, is very high -about 75 $US/tonne of compost produced. Most of the compost is sold for a very low price -- only about
7.5 $US/tonne, or 10% of the cost, to subsidized small-scale farmers. Given that substantial quantities of
low cost and high quality poultry and animal manure is available within agricultural zones, market
demand for compost is very low. Also, SLU's compost quality is not good, because there is significant
contamination of the product with miscellaneous soil particles, glass and ceramic fines, heavy metals
(from batteries, broken thermometers), old medicines, and complex efractory organics (from solvents,
adhesives, paints, spent oils, and discarded pesticides). All around the world, older compost plants such
as the main two Brasilia plants, employed grinders and aerating drums that mixed such contaminants into
the compost, broke them into fine particles, and subsequently rendered them impossible to remove in the
final screening – resulting in poor quality compost.
Compost Market Potential.
Of the federal district's total land area, there are about 6,280 hectares planted in vegetables (including
strawberries), and about 2,570 hectares in fruit trees. This total of about 8,850 hectares in intensive
crops (i.e., high revenue crops) would be the primary market for any soil conditioner with NPK (nitrogen,
phosphorus and potassium) fertilizer content. The farm size in the federal district ranges primarily from
5 to 20 hectares, with an average farm being only 10 hectares.
Because local soils are not rich in organic material, they need soil conditioning and fertilizers in order
produce intensive crops. Local agricultural experts tell farmers to add 10 tonnes/hectare of organic solid
conditioner if they are using animal manure for soil conditioning. If they are using SLU compost,
because the quality is quite poor (with high soil and miscellaneous inert fines and low NPK value), the
COMPOST MARKETS
19
local agricultural experts recommend adding 30 tonnes/hectare of compost. For the 6,280 hectares in
crops requiring organic amendment, the market demand ceiling would therefore be 180,840 tonnes/year
or 5160 TPD. If all suitable waste in the federal district's were composted, the 1,369 TPD of waste
would product about 450 TPD of compost. Therefore, in theory, the market is large enough to provide
adequate demand. However, the question to resolve is whether the market is willing and able to cover
the costs to produce compost, as discussed below.
An average 10 hectare farm would require about 300 tonnes/year of compost. There is a 20 to 30
tonne/hectare crop yield each season (given 2 seasons of harvest) from vegetable crops. Therefore, an
average 10 hectare farm would bring in about 300,000 to 450,000 R/year of gross income and about
180,000 to 270,000 R/year of net income (not counting labor costs). Assuming that no more than 5% of
the net income could be spent on buying and transporting compost, compost should no more than a range
of 30 to 45 R/tonne.
Supply limitation involves three issues; namely the quantity, quality, and cost of compost and any
competing soil amendment products. In the federal district, animal and poultry manure are the primary
competing products against compost.


Poultry manure is the richest in NPK. The available supply of poultry manure in the federal
district is plentiful, given that there are more than 5.6 million chickens in industrial-sized
breeding farms. All chicken manure is sold and the average price is 50 R/tonne. Poultry
manure mixed with bedding has a lower quality than poultry manure alone and sells for only
25 R/tonne.
Cow manure is less plentiful than poultry manure, because the cows roam. Also, the NPK
and organic content of cow manure is not as good as poultry manure. It sells for only 10 to
12 R/tonne.
Because manure is amply available, compost would need to be priced lower than cow manure or poultry
manure mixed with bedding, since its quality is not as good. Brasilia's compost has glass shards from
grinding and poor sorting, small pieces of pulverized plastics, significant soil particles and ash content, as
well as heavy metals from disposal of batteries, paints, used engine oils, and other hazardous wastes.
If the market demand survey indicates that farmers can afford compost which is produced efficiently, it is
recommended that SLU operate a labor-intensive low-cost compost facility at the landfill.
COMPOST MARKETS
20
Discussion from Bangkok, Thailand Master Plan
(Note 1 $US = 25.64 Baht in 1987)
Compost has value as an organic fertilizer and soil conditioner. As an organic fertilizer, it contains valuable
concentrations of major nutrients such as nitrogeitioner. As an organic-fertilizer, it contains valuable
concentrations of major nutrients such as nitrogen, phosphorus and potassium, as well as minor nutrients
such as zinc, boron, and copper. Since the nutrients are bound in an organic matrix, their release into the
soil and to the plant root system is relatively slow as compared to the rapid dissolution and leaching of
nutrients which occurs following chemical fertilizer application. When used in concert with chemical
fertilizer, compost reduces the speed with which chemical fertilizer's constituents leach from the root zone,
thus making the chemical fertilizer application more effective.
As a soil conditioner, compost lightens the bulk density of the soil thus enabling seeds to germinate more
easily, soil moisture to be better retained and aerobic soil conditions. Furthermore, compost helps to
neutralize acidic soils and induces soil micro-organisms to increase in numbers.
Market demand for any product arises from either a real or imagined need for the product. When discussing
a product like compost, of which potential merits are not necessarily known and appreciated by possible
users, market demand typically does not exist but, rather, must to be developed. Compost market
development requires demonstration of the compost product's potential value, dissemination of information
to potential users, and persuasion of potential users to try the product. Market development also might
require adjusting the compost product's quality, related production cost and pricing structure so that it
becomes affordable to possible users.
One potential market for compost product is agriculture, because agriculture annually requires fertilizer
additives and soil conditioners to produce crops of optimum yield and quality over the long term. Another
potential market is the one-time site-by-site improvement of agricultural lands such that they would be able
to change from low-value extensive crops (e.g, rice, corn, cotton, cassava and sugar cane) to high-value
intensive crops (e.g., vegetables, flowers and fruit trees). Of Thailand's 320 million rais of total land area,
more than 105 million rais of land are presently producing extensive crops, and only about 14 million rais
are producing intensive crops (Agricultural Statistics, 1987).
Landscaping (e.g., parks and golf courses, residential and commercial development etc.) and land
reclamation projects (e.g. , upgrading eroded, sandy, sodic or saline-sodic soils) provide a one-time, site-bysite market demand. More than 30 million hectares of land in Thailand have soils with a very low organic
content and a comparably low productivity potential (Khun Prachya and Vanlada, 1987).
Agricultural Production
Because the production of extensive crops such as cereals (e.g. rice), fibers (e.g., cotton, kenaf), staple foods
(e.g., maize, cassava, sugar cane) and oil seeds (e.g., soybean and groundnut) involves the largest portion of
agricultural land, one might assume that the largest potential market for compost would be extensive crop
farms. However, this is not the case. The revenues per unit land area which extensive crop farms are able
COMPOST MARKETS
21
to achieve are markedly lower than the revenues per unit land area which intensive crop farms are able to
achieve.
The World Bank reports that net incomes for extensive crops in developing countries typically range
between 200-500 $US/hectare, while net incomes for fruits and vegetables reach to 1,200 $US/hectare
(Obeng, 1987). Although net incomes/rai are not specifically reported in Thailand, average prices for some
typical extensive crops are estimated from reported information (Agricultural Statistics, 1987), as follows:
rice, 790 Baht/rai; maize, 610 Baht/rai; cassava, 2,170 Baht/rai; and sugar cane, 2,200 Baht/rai.
Furthermore, average fixed and variable production costs are reported (Agricultural Statistics, 1987), as
follows: rice, 167 and 705 Baht/rai; maize, 110 and 605 Baht/rai; cassava, 123 and 748 Baht/rai; and sugar
cane, 247 and 1,532 Baht/rai; respectively. Therefore, net incomes from Thai extensive crop farming
apparently range from about 0-1,300 Baht/rai (i.e., 6 - 16 0-325 $US/hectare), the upper range of which
compares well with the international averages reported by the World Bank.
There are roughly 105,000,000 rais in extensive crop production in Thailand. For crop production year
1986/87 the predominant agricultural land areas producing extensive crops are shown below (Agricultural
Statistics, 1987):
Crop Type
Harvested Area (in rais)
in Whole Kingdom
in Central Province
Rice
Maize
Cassava
Sugar Cane
Mungbean
Sorghum
Cotton
Kenaf
Soybean
Groundnut
57,463,000
11,345,000
8,567,000
3,251,000
3,081,000
1,148,000
305,000
1,263,000
1,763,000
781,000
14,515,342
2,806,043
2,892,640
2,292,141
341,914
533,105
102,208
43,218
144,640
105,315
To a lesser extent, relatively large areas of land were involved in producing the following crops during crop
production year 1986/87 (Agricultural Statistics, 1987):
Crop Type
Planted Area (in rais)
in Whole Kingdom
Cocoa Bean
Chile
Shallot & Onion
Garlic
Tobacco Virginia
Para Rubber
1,406,000
137,500
93,800
176,700
174,500
10,346
COMPOST MARKETS
22
In all of Thailand, only about 13,500,000 rais are in fruit tree and tree crop production and only about
474,000 rais are in vegetable and flower production (Agricultural Statistics, 1987). The extent of fruit and
vegetable production in Thailand is reportedly limited by land drainage and soil productivity conditions. To
alter these conditions would require a capital investment in drainage and soil conditioner.
Since the net income potential per rai of fruit and vegetable farming is estimated to be several times higher
than extensive crop farming (based on Obeng, 1987), a capital investment in drainage and soil conditioners
could be warranted. Based on existing farm incomes for extensive crops, a combined annual amortized
investment for drainage and operating investment for soil conditioner totaling up to about 1,000 Baht/rai
could be justifiable. However, many farmers in the area around Bangkok do not own their land and do not
have a sufficient credit-rating to obtain loans under present loan conditions (Khun Kukiat and Somsatt,
1987). To assist farmers in making land improvements may require special incentives and credit-lines to be
developed by government.
Compost Application Quantities
The approximate nutrient values of various fertilizing additives are listed below (JICA, 1982; Khun Prachya
and Vanlada, 1987; Obeng 1987):
Percent by Dry Weight
Nitrogen
Phosphorus
Fertilizing Additive
Agro-industrial compost
BMA compost
Pig manure
Chicken manure
Urea
Muriate of potash
Super phosphate
0.8
1.0
2.7
0.2
1.0
3.3
1.7
46.0
46.0
Potassium
1.0
1.1
1.0
3.3
-
2.4
60.0
Nitrogen/phosphorus/potassium (NPK) requirements vary by crop type, with some examples of crop
requirements reported below (by Diaz, 1982, after others):
Crop
Rice
Maize
Sorghum
Cassava
Soybean
Groundnut
Leafy vegetable
Tomato
Nutrient Requirement in Kg/ha
Nitrogen
Phosphorus
Potassium
60
80
80
30
30
30
160
30
30
130
90
0
30
30
80
40
60
60
60
80
40
30
60
60
COMPOST MARKETS
23
Onion
80
80
80
Recommended compost application rates reported (from Obeng, 1987, after others) are summarized as
follows: cereal crops, 3-10 tonnes/rai/year; maize, 16-32 tonnes/rai/year; vegetables, 8-24 tonnes/rai/year;
land reclamation, up to 80 tonnes/rai initially to reclaim land.
Application rates typically used in Thailand are relatively low when compared to the above recommended
rates. Based on existing agricultural practices in Thailand, compost, when used alone, is applied at the rate
of about 3 tonnes/rai/year to vegetable and flower crops. Fruit tree application ranges between 20 and 100
kg/tree as a function of the size of tree, and the density of trees ranges from about 40 to 70 trees/rai with the
higher density for the smaller tree sizes. Thus, the application rates for fruit tree crops range from 1-4
tonnes/rai/year and average about 2.5 tonnes/rai/year. On extensive crops such as rice and sugar cane,
compost application is 1-2 tonnes/rai (Khun Prachya and Vanlada, 1987).
Application rates comparable to those above for compost are used for manure application. Chemical
fertilizer, when used alone, is applied at the rate of about 20 kg/rai/year for cereals and about 30 kg/rai/year
for vegetables.
It has been shown in Thai demonstration plots that the highest crop yields and qualities occur when compost
(or manure) and chemical fertilizer are applied jointly (Khun Prachya and Vanlada, 1987). For example, in
one set of demonstration plots growing rice crops in sandy soil in Thailand, it was shown that application of
3 tonnes/rai of compost alone resulted in 450 kg/rai of rice. Application of 20 kg/rai of chemical fertilizer
alone (i.e., NPK of 15-1515) resulted in 520 kg/rai of rice. Application of 3 tonnes/rai compost and 10
kg/rai chemical fertilizer resulted in 600 kg/rai of rice. For comparison, the control plot on which no
compost or chemical fertilizer was applied produced only 300 kg/rai of rice. The same set of plot tests was
conducted on clay soils, with comparable results. (Similar results were found in Kanpur, India during the
late 1970’s).
In a separate set of Thai demonstration plots for corn crops, it was shown that applications of compost and
chemical fertilizer together resulted in the highest plant heights and the highest concentrations of nutrients
within the corn plant (Khun Prachya and Vanlada, 1987). Nutrient levels within crops are an indicator of
the quality of color and taste (Diaz, 1982; Cointreau, 1987).
Optimum application rates for a mix of compost and chemical fertilizer would vary by crop and soil type.
However, for purposes of estimating potential compost market demand, it is apparent to agricultural
specialists locally that minimum rates of about 3 tonnes/rai of compost with 10 kg/rai of chemical fertilizer
are needed to show improved crop yield and quality for any type of crop.
For landscaping and land reclamation, recommended compost application would be equal to at least onethird of the volume of the root zone (i.e., one-third of volume within the top 15 cm of the land surface).
This amounts to a minimum compost application rate of 80 tonnes/rai.
Competing Products
COMPOST MARKETS
24
Chemical fertilizer, livestock manure, compost from agroindustrial residues, and compost made on-site at
farms producing extensive crops are products which compete with BMA compost. Based on discussions
with Thai agricultural specialists, it would be reasonable to consider 100 km as a viable transport distance
between the compost source and a regular compost user. Therefore, for all competing products except
chemical fertilizer (which is concentrated and inexpensive to transport) a radius of 100 km around BMA
defines the assumed market area for most compost applications. Only in the case where compost is used in
a single major application to reclaim poor soils is the whole of Thailand considered a potential market area.
Thailand imports about 1.6 million tonnes/year of chemical fertilizer at an import price of about 5,600
million Baht, or about 3,500 Baht/tonne. There is no subsidy of chemical fertilizer in Thailand. After
local dealers provide packaging and handling, the local price to farmers is about 6 Baht/kg (Khun Kukiat
and Somsatt, 1987). Considering a minimum application rate of 20 kg/rai for chemical fertilizer when used
alone, this would amount to a price of 120 Baht/rai.
Over 65 million tonnes/year of manure (wet weight basis) are produced from livestock in Thailand (Khun
Prachya and Vanlada, 1987). Based on numbers of 227,488 buffalo, 313,385 cattle and 699,181 swine
within a 100 Ian radius of BMA, and typical daily manure production values of about 35 kg/buffalo and
cattle head and 3 kg/swine head, about 7.6 million tonnes/year of animal manure are produced within the
BMA compost market area. Based on estimating that about 30 percent of poultry head in Thailand are
raised in the BMA compost market area, there are about 28.3 million birds. Typical daily manure
production values are about 0.2 kg/bird, which translates to about 2.1 million tonnes/year of poultry manure
within the BMA compost market area.
COMPOST MARKETS
25
Discussion from Mauritius Country-Wide Strategic Plan, July 1998
(1997 exchange rate 530 Rupiahs = 1 $US)
From an environmental perspective, compost is the best solid waste treatment technology for Mauritius.
Mauritian soils would benefit dramatically from compost application, as follows:









resulting in decreases in erosion of top soil,
reduced requirements for chemical fertilizer,
reduced leaching of nitrates and nitrites into groundwater,
reduced irrigation requirements,
easier seed germination,
higher crop yields,
higher sucrose production in cane,
more colorful and better tasting vegetables and fruits, and
greater crop resistance to disease.
There does not appear to be a shortage of organic material available to meet demand. Farmers are
amenable to using compost, as well as other organic soil amendments, provided that the cost is within the
range of competitive product prices and the risks of soil contamination and phytotoxicity are minimal.
Some organic amendments are not considered viable in Mauritius, because they would not be accepted
by the public, which is largely Hindu and Moslem (including pig manure and human waste, even if
treated). Products that would be competitors of compost, such as chicken manure mixed with bedding,
and manure alone, respectively sell for 75 to 200 Rs/tonne.
Mauritius crops considered by local agricultural specialists as most attractive for compost application are
tomato, onion, cabbage, cauliflower, and coffee. The total costs of crop production for these crops are
outlined below, including the current cost for manure or other organic soil amendment.
(Rs/hectare)
Crop
Total Cost
Soil Amendment Cost Gross Margin
Tomato
84,472
5,500
55,528
Cauliflower
155,822
14,375
210,178
Onion
128,940
11,000
161,500
Cabbage
92,084
13,775
92,916
Sugar Cane
27,970
1,600
n.a.
Composting is simply biodegradation of the organics fraction of solid wastes, accomplished through the
metabolic functions of micro-organisms already present in wastes. Obtaining good quality compost
requires that unsuitable wastes be removed prior to composting, particularly hazardous wastes
containing heavy metals (i.e., batteries, light bulbs, paints, dyes) and toxic refractory organics (i.e.,
solvents, pesticides, PCB's), as well as miscellaneous inerts (i.e., glass, metal, rubber, plastic, textile).
For lowest cost composting, these unsuitable wastes are removed at the source of waste (i.e., through
COMPOST MARKETS
26
source segregation) and at the compost plant (i.e., through hand sorting at a conveyance belt and rotating
trommel screening).
Mechanized facilities for sorting (i.e., cyclone or air separator screening, magnetic separators) tend to be
much more costly that hand sorting. Even the United States relies heavily on hand sorting as most costeffective, despite the high cost of worker salaries. Furthermore, grinding, shredding, and pulverization
equipment tend to be energy and maintenance intensive, and therefore costly. Therefore, simple laborintensive composting is economically preferable. Composting costs were well estimated by Scott,
Wilson & Kirkpatrick in 1996 and indicate a cost of 1,500 Rs/tonne of solid waste. Given that one tonne
of solid produces about 1/3 tonne of compost, compost product would cost about 4,500 Rs/tonne.
Subtracting the cost of sanitary landfill, from the cost of composting, farmers would need to pay the
difference -- i.e., 1,200 Rs/tonne of solid waste processed, or a price of 3,600 Rs/tonne of compost
product.
Simple composting is most cost-effectively done at sanitary landfills, especially if those landfills are
located near to agricultural lands. Initially, composting would be conducted in a unused area of a landfill
site, where filling has not yet commenced. Over time, it would be conducted on completed landfill cells,
which have received their final soil cover. If located at a sanitary landfill, the composting facility would
benefit from cost-sharing with landfill facilities, including: access road, perimeter fencing and security,
gate control, water supply, utilities, leachate treatment, environmental laboratory, mobile equipment (i.e.,
wheeled loaders and lorries), and worker sanitation facilities. Waste hauling vehicles arriving at the
landfill, which have wastes suitable for composting, can be directed to the composting operation during
those seasons when there is a demand for compost product, or otherwise diverted to the landfilling
operation. Compost product which can not be sold could be used for final cover and landscaping at the
landfill, provided that the cost of production was competitive with the cost of obtaining good top soil
from other sources.
There could be adequate demand for compost from farmers, provided they were educated on the potential
benefits. Such education would typically include demonstration plots showing the results in yield
between various crops grown with chemical fertilizer alone, versus those grown with a mixture of
chemical fertilizer and compost. Recent studies conducted at the University of Mauritius, with the Rose
Belle Sugar Estate, indicate yield increases in cane of about 25% due to compost application, and
comparable increases in sucrose levels. Compost use at globally typical application rates of 3-10
tonnes/hectare on extensive, low-revenue crops and 10-30 tonnes/hectare on intensive, high-revenue
crops could allow all of Mauritius' solid waste to be composted and sold to farmers.
It is recommended that the project include a small simple composting facility (i.e., tub grinding of large
wood items, composting of mixed waste in windrow piles, windrow turning with a wheeled loader,
portable trommel and vibration screening of compost product) at Mare Chicoise for yard waste only.
This would involve a contract modification with the existing landfill operator.
A more mechanized composting facility (i.e., plastic bag openers, conveyance belt for hand sorting,
shredding (optional), tub grinding of large wood items, windrow piles, portable trommel, magnetic
separator, and vibration screening) is recommended at the proposed new sanitary landfill in the North.
COMPOST MARKETS
27
COMPOST MARKETS
28