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Commercial organic compost farm in Eastern Cape(South Africa), investment, and profit margin with project report

Currently, organic farming is not established in South Africa. People are moving towards organic farming. There are not so many popular brands that sell high-quality organic compost in the market. This is the right time for organic farmers to establish an organic compost-making farm. 

Let's understand the requirements and estimation of investment and profit in a 5,000 square meter area.

Organic compost making farm in Eastern Cape(South Africa)

Requirements to make an organic compost farm in a 5,000 square meter area

Land requirement

You can easily make organic compost on non-agriculture land. It will cost you less than agricultural land. To start an organic compost farm, you need space for making, managing, and for storing organic compost. 

Organic compost farm project report in Eastern Cape in South Africa

So, you need a 5,000 square meter non-agricultural area. 

Open walls but roof shelter

It is better to make organic compost in the open air. To save the compost from heavy sunlight and rain, you need at least a roof over the compost collection.  

You can make this shelter by following the same traditional method of making a roof. You need to make a structure first, then fix the sloppy metal sheets. From the inside, you can fix timber wood just below the tin sheets to prevent heavy temperatures in summer.

Various sections

Now, you need to make multiple divides on your land to make organic compost. You can distinguish them with the help of thin metal net wires. You can also use cement and bricks to make a permanent structure. The cement structure will cost an unnecessary amount of money. 

It will be easy to pick and make some changes in a particular section. If any compost pit gets waste then you can reduce the damage to a few sections. 

In a 5,000 square meter area, you can make 2x2 square meter sections in 60% of the area. It means, in a 3,000 square meter area, you can make 750 sections of 2x2 measurement to make organic compost. The rest of the area stores organic compost. For that purpose, you need containers that can be covered later and be unaffected by heat outside.

Type of containers to store organic compost-

You need isothermal containers to store organic compost. Plastic containers will not make too much difference, wooden containers also can be used. 

Either containers can be built or you can directly buy them from the market.

The size of containers depends on your choice but bigger containers give compost space to lose extra heat from it.

Plastic bags to sell organic compost

The general measurement of market compost is 10kg bags. So you need thick 10kg plastic bags to sell organic compost.

In one batch of compost, you need 12,000 plastic bags.

Plastic bags should have zip closing otherwise it consumes time to use thread to bind them. 

Registration of organic farm

Here is one of the most important points of an organic compost-making farm. Without registration of organic farms, your farm come an illegal business. To legalize your business you need to register your entry in government offices. 

To understand the entire process of how registering as an organic farmer, you can click the link.

Project report of making an organic farming in Eastern Cape

Investment in making an organic compost farm in a 5,000 square meter area in South Africa

One-time investment

  • Land buying cost- R50,000
  • Roof cover cost-  R60,000
  • Sections making cost- R2000
  • Storage containers cost- R8,000

Total cost- R1,20,000

Organic compost making cost per batch

  • Organic material cost- R2,000/batch
  • Transportation cost-R2000/batch
  • Marketing cost-R500
  • Labor cost- R3500

Total cost- R8,000

  • Total investment in the first year- R1,28,000
  • Total investment in the second year-R9,000
  • Total investment in the third year- R9,500

Profit margin from an organic farm in a 5,000 square meter area in South Africa

  • Time to make the first batch of organic compost- 8 to 12 months
  • The market price of 10kg of organic compost- R60
  • The market price of total organic compost of one batch- R1,20,000

  • Total profit margin in the first year- No profit(because of including investment cost), -R8,000
  • Total profit margin in the second year- R1,20,000
  • Total profit margin in the third year- R1,22,000

Marketing to sell organic copost

There are two basic but effective ways to advertise a new business in the market. Either advertise in the established companies or advertise through social media ad run.

  • Advertisement through established farms

You can make a list of already estabished running agricultural farms. If it is easy to contact them then try to make a deal with them for pasting your advertisement banners or posters in their farms. Offer them some money and then follow the process with other farms too. You can also paste your posters at public gathering stations like bus stands and crossroads holding by taking permissions. 

  • Online advertisement

The easiest and less money investing method to advertise something is online advertisement. These days, social media add running campaigns are so popular and they help to popularise or advertise a new brand. 
You can list your local areas according to your reach and then run the ads through social media. Provide a contact email and number so that they can contact you and ask their query.

Selling of organic compost

  • Online selling of organic compost

In online selling, you can register with any trustworthy online platform. Make negotiations and fix the deals with them. It will reduce your workload. People will search online and they will order you directly through online portals. You just have to deliver them and they will pay your direct in your bank account. 
Sometimes, these platforms provide you with transportation and charge a small portion of your overall selling. 
There is a third party involved in this method of selling organic compost.

  • Offline selling of organic compost

In offline selling, people will directly contact you. First, they will see your sample, and then consider buying it or not. For this, they will come to your farm and place the order. In this offline selling, you need to arrange transportation manually. There is no participation of third parties in from placing an order to buying and transportation. 
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