Definition of vermiculture
Vermiculture is a TECHNOLOGY that uses a domesticated species of earthworm as a work tool. It recycles all kinds of organic matter and obtains as a result of this work basically two products: humus and meat.
Humus
The worm humus produced is a 100% natural organic compost, obtained from the transformation of composted organic waste, by means of the California Red Worm. It is totally natural, improves porosity and moisture retention, increases bacterial colony and its overdose does not cause problems. It has the best qualities and no contraindications.
All the nutrients are present in its composition: nitrogen, phosphorus, potassium, calcium, magnesium, sodium, manganese, iron, copper, zinc, carbon, etc., in sufficient quantity to guarantee the perfect development of the plants, in addition to a high content in organic matter, which enriches the soil.
It favors the circulation of water and air. Soils rich in Humus are spongy and less sensitive to drought.
Facilitates the absorption of fertilizer elements immediately.
It has plugging capacity, so that in its presence slightly acidic or basic soils tend to be neutralized.
Its neutral pH allows it to be applied in contact with the root, so that it avoids 100% transplant shock and facilitates seed germination.
It contains phyto-regulating substances that increase the immune capacity of plants, thus helping to control the appearance of pests.
The set of all the properties described, make that with its application, improve the structure and balance of the land and increase its production capacity.
In addition to plant nutrients and hormones, this humus has a significant bacterial load that degrades nutrients to forms assimilated by plants. The amount of humic acids is also increased.
The manure of these worms has four times more nitrogen, twenty-five times more phosphorus, and two and a half times more potassium than the same weight of bovine manure.
Earthworm meat
The possibility of transforming organic waste into high protein meat, which in many cases today constitutes an ecological problem, is perhaps one of the most fascinating aspects of Vermiculture. The composition of the earthworm meal, with more than 70% of proteins of high biological value, makes this annelid appear as one of the great solutions to the nutritional problems that humanity has.
If important is the high protein content in earthworm meat, even more important is its amount of essential amino acids. The high reproductive rate (it doubles its population every 90 days) and the rapid growth rate of the worm (it eats the equivalent of its own weight daily), allows it to produce tons of meat per hectare at a cost that no other zootechnical activity achieves.
In addition to collagen, other base products can be extracted for the pharmaceutical industry. From the coelomatic liquid, contained in the coelom, antibiotics for human use have been produced to combat diseases such as typhus, among other things.
Characteristics such as not bleeding when the body is cut and being totally immune to the contaminated environment in which it lives, as well as the high capacity for tissue regeneration, are reason for research to be applied to humans.
With this we are stating that in the face of possible satisfactory results obtained from these investigations, there would be a demanding market for our products, leaving us strongly positioned.
Breeding and Reproduction
It has been experimented with in all countries, in different climatic and altitude conditions, and it lives in captivity without escaping from its bed.
It is extraordinarily prolific; Sexually mature between the second and third month of life. Every 7 to 10 days a capsule or egg with a content that fluctuates from 2 to 20 embryos is deposited, which in turn hatches after 14 to 21 days of incubation, causing worms capable of moving and feeding immediately.
He eats, very voraciously, all kinds of agricultural waste (manure, crop stubble, vegetable and fruit residues, weeds, etc.). You can also use organic waste from industry, the city, slaughterhouses and others.
The digestion of the products mentioned above produces huge amounts of HUMUS, which is the basis of soil fertility.
The extraordinary productive capacity of Eisenia foetida, allows you to quickly amortize your invested capital, and find ourselves in a short time with a highly productive activity. An expanding worm farm doubles every three months, that is, 16 times in one year, 256 times in two years and 4,096 times in three years!
Corporate Plan
Business Area
- Production of vermicompost humus to cover the need for biotechnological fertilizers for agricultural producers, nurseries, horticulturists and individuals who favor products free of chemical compounds. Production of protein supplement through the rearing of worms for the pharmaceutical industry and animal feed.
Market study
Market analysis
After conducting an exploratory market research, we have found that there is a significant demand from abroad for humus and flour, especially the European market.
In the domestic market, sales volumes are growing by 12% annually, especially in the most disadvantaged areas in terms of soil quality, such as Patagonia and Northeast Argentina.
Fields that have been exploited with artificial fertilizers for a long time and / or have suffered from both wind and water erosion.
Flour can also be used to lower the price of concentrate, to feed cattle and others. Experiences from neighboring countries indicate that using from 4% to 10%, very satisfactory results are obtained, reducing both the use of high-cost minerals and the need for deworming.
Competitor analysis
Regarding the competition, we were able to differentiate:
For the humus
- Producers who use common soil with the addition of nitrogen, phosphorus, potassium and pine undertow Producers and marketers of chemical fertilizers (Multinationals) Producers of vermicompost humus.
For protein
- Protein producers from organic waste (cattle, poultry, pork) Protein producers based on oilseeds (soy) Protein producers by vermiculture.
While competitors in both segments may produce volumes greater than ours, we have a distinct advantage in the excellent quality of our products. In the case of multinationals (Dow Chemical and others), these are aimed at the sector of agricultural operations that have traditionally used this type of chemical fertilizers, they already have specialized distribution channels in parallel to the seeds, in addition, the industrialization of machinery fields, like seeders, are adapted to this type of input. For this reason, we do not believe that it would be convenient to compete with multinationals since we will find ourselves with great technological and capital impediments.
One of the solutions would be to develop a planter that could administer exact doses of vermicompost during planting, which of course is not within our reach and if we had it, we would not be able to compete due to the scarcity of resources.
The strategy adopted by our farm is not to compete with multinationals and to deal with the markets described in the previous section (export, nurseries and horticultural producers, animal feed and individuals).
Strategic Business Units
The SBUs are defined according to the type of production, in turn they are subdivided according to the type of customer and the distribution channels.
UEN Humus:
Biotechnological fertilizers intended for agricultural producers, nurseries, horticulturists and individuals who favor products free of chemical compounds. This UEN is subdivided into two areas, one that will direct its actions to fruit and vegetable producers and nurseries; the second area will cover the retail market.
UEN Protein:
Protein supplement for the pharmacological industry and animal consumption (hatcheries)
This UEN is subdivided into two sectors due to the different profile (target) of the consumer to which the product is oriented.
SWOT Analysis
Strengths
- High productivity, technological level and permanent training. Technical assistance from official bodies (INTA.) Extensive knowledge of Marketing. Diversity of products and clients. Low cost of inputs and production. Business commitment. Products of excellent quality.
Weaknesses
- Little or no bargaining power Lack of incentive for production Unfair competition due to tax evasion Difficult access to credit Poor distribution channels Non-existent promotion and dissemination campaigns Low initial production quantity Low quality differentiation appreciated by consumers.
Surrounding analysis
Opportunities
- New markets. Demand growth. Challenge posed by globalization. Support from agrotechnical organizations (INTA, WORMS ARGENTINA). Availability of inputs at low cost. Development of products with added value. Demand for ecological products.
Threats
- Foreign trade policies (subsidies and tariff barriers.) Transportation costs and deficiencies in service. Difficulties in accessing credit. High interest rates. Impossibility of influencing prices. Recessive context of the national economy.
Strategies for the foreign market.
As there is a real demand from abroad for vermicomposts and derivatives for human consumption, we believe that it is an attractive place to exploit. The drawback that arises are the volumes required by those markets and the difficulty of customs processing and tariffs that would imply a certain specialization in the subject, in order to be able to export directly.
In this first stage, to reach the foreign market it is convenient to adopt the strategy of alliances with other producers in order to be able to reach the necessary volumes and reduce export costs. There is a company in the country dedicated exclusively to exporting these products, to which we can also turn to place our production.
Strategies in the current economic situation
In times of recession where there are major problems in the payment chain and consumption restriction, and where companies tend to eliminate marketing from their budgets, especially when they observe that their competitors cut their expenses. The strategy adopted by our exploitation is the opposite, that is, we will include a good part of our budget in promotional, communication and public relations campaigns, as well as in offering our products to the market with lower profit margins. This can give us the opportunity to gain market share and position against our local competitors. This strategy is accompanied by a permanent re-examination of the composition of customers, markets, channels, products and the corporate plan.
Strategies in the economic situation of inflation
Inflation is the loss of value of money in terms of goods. This means that during it, a greater number of monetary units are needed to buy the same physical units of goods. In an inflationary economy it is very difficult to determine the cost and price structure due to permanent devaluations. As our exploitation does not require a large amount of inputs and our production costs are low, the strategy to adopt would be to first increase the profit rate (mark up) and bring prices to dollars. This resource is in order to avoid permanent price changes and possible devaluations of our products.Another of the measures commonly adopted in these cases is to reduce production since increasing it will require investment expenses that will not be possible to meet due to the high bank interest rates.
Strategies in an ideal economy
In the context of an ideal economy there are two variables to highlight, which are: market growth and low interest rates. Then the strategy to adopt would be to resort to financing to invest and increase production and reach a larger scale exploitation.
Increasing in this way our profit due to higher sales volumes.
Communication plan
Infrastructure
Physical Space
Land:
To start an exploitation with a commercial future we will require a land of no less than one hectare. It must be fenced and have non-brackish mains or well water. The land must be located in a place accessible to the trucks that will transport the raw material and remove the processed humus.
We will take into account that 50% of the surface of the land is used for beds and roads and the other half for the storage of manure, undisturbed humus and sheds for packaging and storage.
Trees and streets:
Trees are placed in the middle of the row of cradles (1.20 m from each) the streets should be no less than 4 meters wide so that trucks and tractors can maneuver without problems. Each row has 9 cradles (30 m).
Resources and investments
Machines and tools:
The tools are not standard. They are manufactured by Vita-Fértil on request.
- Grinder to grind raw material (manure and fiber) = $ 500 Lump breaker to grind raw humus. = $ 500. Motorized zaranda (small) with removable mesh with different openings (6, 7 and 8 mm) to use with the different degrees of humidity of the material and avoid fillings. It gives the humus (previously aired and dislodged) a finer granulometry that favors its application to crops and adds commercial value. = $ 600 Polyethylene bag sealer = $ 200.2 Wheelbarrows to transport manure to the cribs and to extract the vermicompost (until you buy a power shovel) = $ 100.2 rakes with long and rounded tips to remove manure (or organic matter that is use) during the composting stage also called the thermal or degradation phase = $ 30.2 long-handled forks 4 rounded tips (to avoid harming worms) to feed cribs = $ 302 15-tooth charcoal forks to remove worms. = $ 1402 wide blades = $ 40 ¾ (25 mt) irrigation hose = $ 25.
Coverage for the floor of cribs:
The crib floor does not require a polyethylene covering as is often recommended, but when power shovels are used it is helpful if the crib rows have a concrete floor. This should be a little wider and longer than the crib (for a crib of 1.80 by 3.60 m it should be 2 by 4 m) and be level (even if the terrain has a slight slope). take into account is to manufacture a frame to standardize the construction of the stalls. Subfloor Cost = $ 40
Coverage for top of cribs:
- 1 roll of half shade 5m wide (100m long) Placed over the crib to provide protection against predators and conserve moisture = $ 40. 30cm wide boards of veneer, wood (not suitable for bricks anymore that cannot be mobilized) = $ 40 Warehouse In it the final tasks of dislodging the raw humus and its subsequent shaking and bagging are carried out. A 20-wide warehouse (300 m2) allows working on both sides, leaving a space to circulate in the center. A smaller width implies working on only one side and therefore the length will be greater.
Worms:
- For an area of 10,000 m2, wishing to get to install all the cribs and the maximum occupancy of the land (about 5,000 m2 of cribs not including paths) in a year, you can start with two cribs (1.80 by 3, 60 m) that will start with 20 nuclei (of about 15,000 visible worms each) = $ 1200-1400 (VAT included).
Fixed costs
- In general, the raw material (manure from dairy farms, slaughterhouses, pig farms, poultry farms, vegetable waste) is free, is obtained by exchange or its collection implies a cost for the supplier source. The biggest expense is transportation. If it is produced on the farm itself, the cost will be almost zero with the consequent savings in waste collection services. A truck that can transport about 6-8 m3 of manure has a cost of 50 to 100 pesos per trip.
Personal:
- The personnel necessary to maintain a commercial farm is a permanent employee and a day laborer for the activities of cradle and harvest assembly.
Other expenses
Records, inscriptions and analysis:
- When the decision has been made to install a commercial farm, it is advisable to have a technical consultant, usually an agronomist. The registration of the company as a producer, fractionator and distributor of organic amendments and the registration of three products, can cost about 1,200 pesos.In the Argentine Institute of Plant Health and Quality (IASCAV) whose headquarters is located in the extension of Av. Belgrano, dock 2, west side, 1st floor Registries Area. Telephone 4312-4015 / 4050, a fee of 380 pesos is paid the first year and a little less the following. In addition, each year about 200 pesos are paid by the company. Trademark registration costs $ 100 if the procedure is carried out by the interested party (it is very simple, you only have to fill out some forms). SENASA requires an official analysis of the product:
Fertility analysis.
Microbiologic analysis.
Analysis of parasitoids (worms, helminths, tapeworms)
Analysis of microelements.
If the raw material is standardized, the analyzes are done only once and cost about 150 pesos.
Packaging:
- Lumbric Composite is generally sold in packs of 1, 5, and 60 dm3. Its cost is approximately 1% of the wholesale price of the product. For example: 5,000 bags of 5 dm3 (5 liters) each cost $ 0.2 each = $ 1,000.
Total. $ 7925
Technical Feasibility
Testing and market research.
In this regard, experiences were taken from other producers who managed to recover the investment between 10 and 14 months after the activity began. A growing annual demand for the products was also detected, observing that the volumes required by the market amount to 12% year after year.
In the market research carried out to evaluate the buying behavior of consumers in this area, 57% say they choose organic products and 62% consider that vermicompost is a superior product to chemical fertilizers.
Raw Materials
Regarding the raw material necessary for feeding the schools, an agreement was reached with the Municipal Department of Parks and Walks on the acquisition of sweeping and weeding leaves at no cost. This raw material will be deposited 2 times a week at our farm. Therefore, the raw material will not demand purchase or mobility costs, notably influencing variable costs.
Production Scales
Three months after starting the activity, the worms are harvested and after extracting the humus from the cradles, they can be multiplied. This consists of using the extracted worms to start a larger number of cradles. If a crib is divided in two, it will take twice as long to achieve the same results as with an entire population. The calculation is easy to perform: if you have 6 cribs and take them to 8 (30% increase), the processing time will increase by 30%.
In other words, in the first three months, a production for retail placement may be obtained, due to the low production volumes. But in any case, the dedication of a full semester in the multiplication of the species could be defined, and after this period a slow start with the placement on the market.
Financial analysis
Cost effectiveness
- The profitability of the exploitation is approximately 100%, that is to say that if in a year there is a gross income of 20,000 pesos, about 10,000 will be of expenses.The rate of return on the investment (without considering the plot of land) is one When calculating the investment, the gradual increase in costs due to business expansion (increased volumes of raw materials, labor, etc.) must be taken into account.
Market prices
To get an idea of the price of humus, the values on a wholesale scale (excluding VAT) are:
1.3dm3 container = $ 0.75 5dm3 container
= $ 1.75
60 dm3 bag = $ 9
Ton (1.8 m3) = $ 270
The following investment calculation is partly empirical and partly the result of some arithmetic calculations. Therefore you have the best and the worst of each of these approaches.
Actual results may disagree with projected numbers. The values are expressed in pesos of the Argentine Republic, which in theory have a parity with the dollar.
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