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Organic Fertilizer Production Project Report, Cost, Profits

Organic Fertilizer Production Project Report, Cost, Profits

Introduction – Organic Fertilizer Production Project Report:

The following content details about Commercial Organic Fertilizer Production Project Report.

Organic fertilizer production summarizes on ‘feed the soil to feed the plants’. One of the largest industries throughout the whole world is the agriculture industry.  It accommodates huge employment both for skilled and unskilled labor. This industry is a bundle of many money making business opportunities in the agriculture sector and serious entrepreneur can leverage on them to make huge profits. In this vast agriculture business opportunity side, one can think about starting this fast-growing manufacturing of organic fertilizer in any part of the world.

To increase soil fertility organically, biological materials such as farmyard manure, green manure, compost and other biological materials are used to improve soil organic matter content. It is estimated about 120 to 130 kg/hectare/annum of NPK nutrients in the soil are lost after crop production. A nutrient reserve of soil is consistently losing, while an annual addition of nutrients is not more than 75kg. Soil health problems are increasing due to excessive use of chemical fertilizers leading to poor agricultural production. Organic matter promotes biological activity in the soil and is the key to boost soil fertility and productivity. Recycling of organic wastes into the soil is the best way of maintaining the highest levels of soil organic matter. Modern agriculture practice completely ignores the recycling of organic matter in the soil, but depends mostly on chemical fertilization. Ancient and traditional agricultural farming followed using green manure and animal waste manures to retain soil fertility.

Organic Fertilizer Production Project Report – Organic vs. Inorganic Fertilizer

To promote vigorous growth of plants, nutrients are supplied by either organic or inorganic fertilizer or at times combination of both materials. Plants absorb nutrients from soil without knowing if it is from organic or inorganic fertilizers. It is recommended to undertake a soil test for determining nutrient needs in the soil. Soil test helps in determining which nutrients are required and in what quantities. Soil nutrient varies with soil conditions, types of plants previously grown, and previous fertilizers used. A general misconception everyone is that organic fertilizers are safer and environmentally friendly than inorganic fertilizers. Pollution of soil surface and groundwater might also happen with the improper use of organic fertilizers. Both organic and inorganic fertilizers, when used properly will become safe for plants and the environment.

Different types of organic fertilizers release different NPK ratios in the soil such as, cow manure (2.5:1:1.5), blood meal (12:1.5:0.5), bone meal (4:20:0), vermicomposting (2:1:1), poultry manure (3.5:1.5:1.5), etc. Right amounts of organic fertilizer need to be applied depending on the type of crop farming; even though any organic fertilizer can be used. Inorganic fertilizers contain high levels of salts; soils turn acidic over the time that can burn plants and keep beneficial earthworms away. Over a period of time, inorganic fertilizers degrade the quality of soil while organic fertilizer sustains the soil.

Organic fertilizers encourage soil life by providing organic matter to the microorganisms in the soil. Organic matter releases nutrients into the soil at a natural rate without over-concentration of any element. It provides balanced nutrition without harmful residues. Results of inorganic fertilizer can be seen within one or two weeks, but have a short life span. Chemical fertilizers cannot enhance but may decrease soil fertility. Regular use of inorganic fertilizers over a period of time may cause soil and environmental pollution problems due to the accumulation of salts and chemical run-off.

Organic Fertilizer Production Project Report – Organic Fertilizer and its Major Nutrients to the Soil

Organic fertilizer contains natural chemical elements that help the plant grow vigorously and productively. They enhance the fertility of soil, water retention, and replace nutrients taken from the soil by previous crops. Organic fertilizer contains both Macronutrients and Micronutrients and their content value varies depending on the materials produced from.


Nitrogen (N):
It helps in leaf and shoot growth giving their greenness. Excess presence of this nutrient will make the plant grow fast, soft, and sappy. Lack of nitrogen content in the soil will make plants stunted and pale.

Phosphorus (P): Helps overall growth of the plant including the roots. Plants have stunted growth in phosphorus deficit soils.

Potassium (K): This chemical nutrient helps in protecting plants from pests and disease. Plants growing in soils with adequate potassium content will have quality flowers and fruits. The deficit in the soil will yield small flowers and fruits. Leaves turn yellow or brown in color.

Magnesium (Mg): Plants growing in soils with inadequate magnesium will have leaves with yellowing starting from veins. It helps in foliage growth.

Calcium (CA): Helps in the development of a protein.

Sulphur (S): Helps in the formation of chlorophyll and plant protein.


Iron (Fe):
Minimum quantity is required for plant growth and is present in almost all soils. Chalky soils have iron deficiency and the plant leaves are pale with grown edges.

Copper (Cu) and Zinc (Zn): These nutrients help to activate enzymes.

Manganese (Mn): Plants growing in soils with adequate manganese content help in chlorophyll and protein making, a deficit will stunt growth with yellowing of new leaves.

Boron (B): This is an important nutrient which helps in tissue growth. ‘Corkiness’ in fruits and vegetables are observed in plants that grow in soils with inadequate quantity.

Molybdenum (Mb): Helps to produce the protein in plants.

Carbon (C), Hydrogen (H), and Oxygen (O): Plants take these nutrients from the air, sunlight, and water.

Organic Fertilizer Production Project Report – Manufacturing of Organic Fertilizers

Organic fertilizer can be produced from organic materials that include farmyard manure (FYM), animal waste, organic waste, crop residue, decomposed plants or vegetables, and other. The most common raw material used for the production is animal manure. Manure and compost supply many macro and micronutrients thereby improving the soil structure. Organic manure is prepared from organic matter through the microbial conversion process. Prepared organic fertilizer is free from foul smell, weeds, and free from inorganic substances such as glass, plastic.

Organic Compost:

Compost Materials: Compost is prepared from any organic materials; after complete decomposition, the organic matter is finely divided becoming a loose soil material.Materials for composting can be chopped branches from pruning, leaves, grass, hay, crop residue, animal excreta, egg shells, and organic waste from the kitchen, vegetable market, and fruit market.

Compost Bio Pile: When abundant organic waste is gathered, it is spread in the open into pile or heaps. The height of the bio pile can be up to 1.5 meters with a 2-meter base and the length can be any length or up to space availability.  Depending on weather conditions the place is to be chosen, it is preferable to do it under thatched or under shaded region. The place chosen should be away from water resources and protected from strong winds. This system of elongated bio piles also called windrows is the most simple and economic composting process.

Pile Turning System: Once an elongated pile of organic material is laid do not add fresh organic materials in the coming days as it will contaminate the process. During the first month, usually turning of the elongated bio pile is undertaken on a weekly basis. Turning process can be done manually with workers using shovels or can be done mechanically with machines. The proper turning of the elongated bio pile will ensure proper aeration that helps more microbial activity. Water is sprayed making the organic materials in the elongated bio pile reach 65% moisture at the time of turnings.

Composting Phases: Composting is an organic procedure that happens under oxygen-consuming conditions (aerobic conditions). With sufficient dampness and temperature; the organic wastes change into a homogeneous and plant accessible soil material.While decomposing of Carbon, Nitrogen and all organic matter, microorganisms discharge measurable warmth through temperature variations after some time. The temperature generated during the conversion process is broadly classified into three phases, namely Mesophilic phase, Thermophilic&Hygienization phase, the cooling phase, and Maturation phase. In the first phase, the composting process starts at normal temperature and goes up to 45° C. Sugar and other soluble compounds decompose producing organic acids, at this time the pH valve will be 4.0 to 6.0. This mesophilic phase lasts from three to 14 days. In the second phase, the temperature rises to 60° C as the rate of decomposing increases with the breaking down of complex carbon sources (cellulose and lignin). Microorganisms convert nitrogen to ammonia increasing the pH value to 8.0 – 9.0. Due to the high temperature inside the materials, Escherichia coli, Salmonella spp, weed seeds, fungi, and other bacteria that are found in animal excreta gets destroyed completely. This phase may last from 18 to 21 days. In the third stage, all the carbon and nitrogen materials are over leading to less microbial activity. The temperature drops down from 60° to 40°-45° C and even pH comes down to 7.0-8.0. At this stage, fungi produce visible plant-like structures and this phase may last up to 30 to 35 days. The final maturation phase will end in 80 to 84 days from the process start day. This phase takes place at ambient temperature with condensation and polymerization of carbon compounds to form humic and fulvic acids. The pH will vary 6.0 to 8.0. The final end product will be soil-like material ready to be given to plants.

Physical Compost Properties: The finished compost texture and color is influenced by raw materials and feedstock. Mostly the compost is dark in color and comes in shades of dark grey, very dark brown, and black.

25% pure compost mixed with 75% topsoil by volume or in the ratio of 1:3 (called compost manufactured topsoil) can be used directly into pots. Compost that is required to fertile barren lands is prepared by mixing 50% pure compost with 50% untreated wood chips or in the ratio of 1:1 (called an erosion control compost). And compost without any blending with any soil or any material can be directly used for crops and plants as organic fertilizer (called as general use compost).




Animal Urine

Avg/day (ml / kg 


(Kg / day)

Dung (mg/g) Urine (%)
Cattle 8-42 17-28 22-44 5-10 6-24 1.2 .01 1.3
Buffaloes 18-44 24-38 18-40 4-10 6-24 1.1 .01 1.2
Sheep & Goats 12-38 1-2 22-44 5-10 18-28 1.5 .05 1.9
Horse 10.5 12 20-40 6-9 5-21 1.2 .01 1.2
Poultry 2-3 30-60 9-25 9-28
Pigs 6-28 3-4.5 22-44 7-11 14-46 0.4 0.1 1.0

Organic Fertilizer Production Project Report – Vermicomposting Organic Fertilizer

The raw materials required are collected from the vegetable and fruit market with the help of laborers. Biodegradable agro-waste is transported to the vermicomposting project site. Biodegradable materials include crop residues, weed biomass, forest litter, animal excreta, and agro-industries waste. Cool, shady, and moist conditions are favorable for vermicomposting. Chopped dried leaves or crop residue materials are mixed with farmyard manure in 1:3 proportion and kept for partial decomposition for two to three weeks. On the concrete beds of the pit, a layer of 14 to 20cm of chopped grasses is laid as a bedding material. The partially decomposed material is dumped in the pit loosely. Ensure the pits with partially decomposed materials contain moisture before the worms are released. Each pit can have 150 to 200 kg of partially decomposed biodegradable waste. As soon as worms are released sprinkling of water should be done. For aeration and proper decomposition, the beds are turned once in 30 days. Cow dung helps in promoting earthworm population and microbial activity.  By 45 to 55 days, the compost will be ready with earthworm excreta which are rich in humus and nutrients. The process of turning biodegradable materials into worm casting is vermicomposting. The final vermicomposting will be 3/4th of the raw materials used. At the time of harvesting, the sprinkling of water should be stopped. The compost will appear black and granular. To separate earthworms from compost can be done manually and the most effective way is to keep the finished compost over partially decomposed next batch biodegradable material. This will allow earthworms to migrate for feeding. The compost is dried for two days in the shade and sieved for use.

Cost and Profits in Organic Fertilizer Production / Economics of Organic Fertilizer Production / Organic Fertilizer Production Project Report

Economics of Organic Fertilizer Production.
Economics of Organic Fertilizer Production( (Pic Source Wikimedia Commons).

Organic Farmyard Manure:

Organic Fertilizer Production Project Report – Fixed Cost in Organic FYM Compost Pit System:

S.No Particulars Cost Rs.
1. Compost pit Cost (8x4x5 ft) 5,000/-
2. Compost pit shed Cost 1,500/-
3. Superphosphate 84/-
4. Labor Charges 3,000/-
Total 9,584/-

Assuming one cow produces 20 to 25 kg of dung per day and the farm contains 10 adult buffalos. Then in a day, the farm produces approx. 250 kg of fresh / wet dung and urine per day. Based on this analysis, it takes about 40 days to produce 10tonnes and 4 days for 1tonne. It takes about two months for fresh dung to turn into compost manure with a loss of 50 to 60% of actual weight. So 1-tonne of fresh farmyard manure will produce about 450 kg of organic farm manure. Selling compost @ 2.5/- per kg will generate an amount of 1125/- per ton. An additional income can be generated from a dairy farm by composting the daily animal excreta, by removing fixed expenditure and utilizing the existing dairy farm labor; a farmer can make a profit of Rs. 1100/- on a monthly basis from second month onwards. In case of an open, elongated pile system, it is more convenient with no fixed investment cost. Profits more than one lakh can be achieved in the elongated organic pile system, depending on the procurement quantity of organic raw materials.

Organic Fertilizer Production Project Report – Elongated Biodegradable Pile System:

S.No Particulars Cost Rs.
1. Cow dung @ 3,008/- kg per m3 1,25,000/-
1. Sale of compost @ 3,500/- per tonne 3,50,000/-
Total Profit 2,25,000/-

Organic Fertilizer Production Project Report –  Vermicompost Organic Fertilizer:

Organic Fertilizer Production Project Report – Vermicompost Unit Fixed Cost:

S.No Particulars Cost Rs.
1. Compost pit Cost (8x4x5 ft) 5,000/-
2. Compost pit shed Cost 1,500/-
3. Eiseniafetida / red wiggler worms 600/-
4. Labor Charges 3,000/-
5. Dung fork, baskets, spades, shovels, buckets 2,600/-
6. Farm Waste Shredder 25,000/-
7. Sieving mesh 450/-
8. Weighing machine 2,500/-
9. Bag closer 3,500/-
Total Cost 44,150/-

Organic Fertilizer Production Project Report – Vermicompost Unit Operational Cost:

S.No Particulars Cost Rs.
1. Agri waste @ 325/- kg per m3 11,540/-
2. FYM dung 4,060/-
3. Market Waste 750/-
4. Packing 1,800/-
Total Cost 18,150/-

Organic Fertilizer Production Project Report – Cost and Profits in Vermicompost Unit:

S.No Particulars Cost Rs.
1. Investment cost 62,300/-
1. Sale of Vermicompost @ 2,850/- per tonne 1,42,500/-
2. Sale of Worms @ 150/- per kg 3,000/-
Total Profit 83,200/-

Vermicomposting is advantageous to already existing dairy and agriculture farming. This can be started on any scale, but it is recommended to start with 10-tonne production. With a 50 tonne vermicomposting production, an entrepreneur can make above 40,000/- profit on a monthly basis. A farmer with dairy and agriculture will have reduced operational cost. The above figures are not actuals but to give an understanding of the investment and returns on the farming project.

Conclusion of Organic Fertilizer Production Project Report

Organic Manures are dynamic substances which can be produced by farmers with less investment for organic fertilization of soils. The source raw materials and fertilizing the soil techniques vary by geographic area, yet assume an important part in a sustainable agricultural production. Those farmers can recycle the waste produced from the previous crop residue and livestock excreta. Not only he can sustain the land fertility, but also can save in purchasing of chemical fertilizers. The production of agricultural produce under organic fertilizer will boost the yield of the crop compared with inorganic fertilizer.

Read: Organic Farming Advanatges.

Last Updated: August 23, 2018
Author: Jagdish


  1. I need up to date project report of a small scale plant for manufacturing of organic fertilizers along with all details like cost of the project report ,availability of raw material, market demand and its grades etc.,

    I also wants to contact exact technical know how person.

    Thanks with regards

  2. Requesting a detail project report on Organic Fertilizer of capacity 1 MTPD.

    Please mention your contact detail

  3. Need techenical fesiblity report of orgnic fertiliser unit one tone let me know the cost of peoject report. machinaries required investment cost please.

  4. Hi Jagdish,

    Excellent info……need little more details.

    Can I have your mail id….need to clear some doubts as I am trying or rather planning to get into farming business. I own land in Nizamabad district.


  5. Hello Sir / Madam,

    Would like to set up a unit where organic compost which has capacity of 1MTPD. Like to understand the project cost which will make me to take further steps.

  6. Is there any trainer/counselor for, guidance, on how to exactly start the production business of organic fertilizers in Pune? Which location will be fit to start this business. A rough idea of how much investment is required. Whether Any LAND can be Leased/purchased in Pune.

    If possible, provide contact number of the concerned trainer/counselor.

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