The Start Up Of A Lucrative Organic Fertilizer Production Business In Nigeria: A Simplified Approach

Lucrative Organic Fertilizer Production Business In Nigeria

The Start Up Of A Lucrative Organic Fertilizer Production Business In Nigeria: A Simplified Approach:

Lucrative Organic Fertilizer Production Business In Nigeria

Organic fertilizer production in Nigeria is a growing industry because of the widespread clamour for increased agriculture in the country, and the government’s efforts to promote local content development over imported brands.

Beyond just the clamour for widespread agriculture, there are rising concerns over the side effects of various inorganic chemical and synthetic products, causing the demand for organic fertilizer use to grow rapidly.

Presently Nigeria consumes over 7.5 million metric tons of fertilizer annually, but only like 30% of this is said to be organic.

With the high sensitization on the importance of organic fertilizer, there is a constant increase in the consumption of organic compost over the chemicalized ones.

What Is An Organic Fertilizer? 

Organic fertilizer is manure which contains a significant amount of biological material, plant and animal residues, and waste material.

What Is Organic Fertilizer Production About?

This is the process by which organic fertilizer is made. Organic fertilizer is usually made from plant or animal waste or powdered minerals. 

Business Opportunities In Fertilizer Production

The primary business opportunity in organic fertilizer production is crop growth and soil enhancement as organic fertilizer helps to improve soils with a low nutrient level of depleted nutrients. It also helps increase the crop yield and the quality of the produce the farmer yields.

Facts And Benefits Of Organic Fertilizer

  • Organic fertilizers improve soil structure
  • It is near impossible to overuse and harm plants
  • Organic fertilizers are renewable and environment-friendly
  • Organic fertilizers promote natural nutrient storage mechanisms in the soil.
  • Organic fertilizers help prevent erosion
  • Organic fertilizers increase production output
  • Organic fertilizers contain varieties of minerals and vitamins
  • Organic fertilizers help the soil remain moist and save water
  • Organic fertilizers ensure slow but steady growth

Types Of Organic Fertilizers

There are three major types of organic fertilizers. These include:

1). Dry Fertilizer:  

The application of this fertilizer comes in both in-ground gardens and container-grown plants. These types of fertilizers generally encourage long-term growth in seedlings, transplants, and crops.

2). Liquid Fertilizer: 

These fertilizers are nutrients in the form of liquid. They sometimes additionally use a form of binding agent to help the plant in question better absorb them. These fertilizers could be poured onto the soil surrounding the plant so that the roots can easily absorb them, or they could be sprayed on the leaves instead.

Liquid fertilizers are considered suitable for plants that are rapidly growing and should be applied monthly. However, the crops that the compost is being sprayed on the leaf is best done on a biweekly basis.

3). Growth Enhancing Agents:

These aren’t precisely fertilizers; these substances help plants absorb nutrients that they receive from other sources. Plants such as kelp, are also a great source of trace elements.

How To Start Organic Fertilizer production In Nigeria

Organic fertilizer which is also known as manure is produced from human excreta, animal matter or decomposed vegetables/plants.

The basic requirements for starting productions of organic fertilizers are;

1). Conduct Detailed Research:

When Starting organic fertilizer production, you must conduct a detailed market research to gather as much information as possible on all you would need to set up the organic fertilizer production plant, how to leverage the existing market to sell your products, and also how to create marketing channels.

Also, if you plan on exporting the goods, you must research the standard packaging of the various countries and the standard requirements.

2). Purchase Or Lease A Facility In A Suitable Location: 

It is vital to set up an organic fertilizer production facility in a predominantly farming area as this gives you nearness to market advantage.

Nearness to farm areas also provides an easy means of transporting the organic fertilizer if you plan to export or distribute them outside of your area.

4). Source For The Supply of Raw Materials:

During your research, it is important to know the type of raw materials available and how to source them.

You can make arrangements with the management of abattoirs to collect animal matters, talk to poultry farmers to get the waste from their birds, and also negotiate with the sewage management authority to collect sewage from them. 

5). Packaging And Distribution:

The foul smell from manure can be taken care of when proper packaging is done. The packaging is one of the most important aspects of composite production. This is very important if you plan to export or produce for local delivery.

Challenges Of Organic Fertilizer Production In Nigeria

Here are some challenges that can affect starting organic fertilizer production in Nigeria, Africa, or many other places around the world:

  • Lack of sensitization and awareness
  • Lack of funds for investments
  • Lack of consistent availability of basic amenities like water supply, power supply and good roads
  • Bad government policies 
  • Over dependency on synthetic fertilizer
  • Exessive importation of fertilizer
  • Poor funding of research activities
  • Lack of highly efficient storage facilities
  • Lack of capital for large scale production
  • Lack of easy access to the international market
  • Instability of the international market price
  • Lack of adequate government assistance
  • Lack of adequate widespread knowledge on how to produce high-quality fertilizers
  • Lack of funds to import international standard processing machinery
  • Thieves and criminals

Business Overview

The Nigerian agricultural sector presents a lot of opportunities for personal and national development through employment. In this sector, both skilled and unskilled labour are integrated.

One aspect of the Nigeran commercial agriculture industry is fertilizer business. there are many aspects if this business such as fertilizer sales and distribution. Also, we have organic and inorganic fertilizer production.

Organic fertilizer business is concerned with the conversion of compost or manure derived from decomposed vegetable or plants.

You can also get this from animal matter or human excreta. The requirement for this business is serious-mindedness, dedication, and hard work.

This business, although a money spinner, is capital intensive. But since it is a well-recognized business, it is always open for support by the government by way of loans and grants. You can also get sponsorship from private firms and the corporate sector.

Basic Requirements For Starting Fertilizer Business

Sound knowledge of fertilizers production and general agriculture is a basic requirement for starting fertilizer business in Nigeria. There are many ways to achieve this, but the most recommended is to network agriculturalists and fertilizer exerts in your locality.

This is followed by a good business plan and a sound understanding of the laws and customs regulating the business. Also, get necessary licenses from the Ministry of Agriculture before you start this business.

Basic Raw Materials For Fertilizer Production

The basic raw materials for producing fertilizer in Nigeria include:

1. Ammonia gas

2. Calcium carbonate

3. Clay and fillers.

4. Phosphate powder

5. Phosphoric acid

6. Potash

All these fertilizer raw materials may be gotten in Nigeria.

Fertilizer Business Tools and Equipment

Below are the tools and materials for starting a fertilizer business in Nigeria:

1. Different types of fertilizer

2. Extension cords

3. Fertilizing stakes

4. Fuel Cans

5. Ground spikes

6. Hose end ready containers

7. Hoses

8. Plug aerators

9. Radius mower

10. Soil balancer

11. Spiked aerators

12. Water Cans

13. Weeds controllers

Specializations In Fertilizer Business In Nigeria

There are different kinds of fertilizers for different kinds of crops. Fertilizers for crops and flower, for example, are not the same. That is why it is necessary to ask around to know the most wanted type of fertilizer you should go into.

Types of Fertilizers You Can Market In Nigeria

Fertilizers come in two broad varieties or types. We have organic fertilizers and inorganic fertilizers. Organic fertilizers are derived from organic sources such as bat guano, cow manure, bone meal, organic compost and green manure crop.

We also have inorganic, synthetic or chemical-based fertilizers which are made from different chemical formulations to suit several needs. NPK is one of the varieties of inorganic fertilizers. N.P.K stands for Nitrogen, Phosphorus, and Potassium.

The Need For Proper Feasibility Study

You need to properly research and study the market before going into this business. This will give you the necessary startup guides on fertilizer business operations and management.

It is from here that you will discover your marketing channels. You will also get to know the banned toxic substances for fertilizer production.

Business Planning Phase

Then comes the business plan. This is a documented report which will guide you in establishing his business. it itemizes the needed modalities for functional business operations. It gives a succinct blueprint of the business undertakings.

Business Registrations & Licensing

Being a highly regulated sector, you need proper licensing from the Ministry of Agriculture before you can start this business.

It is also advisable to register this business with the government. In Nigeria here, it is the Corporate Affairs Commission of Nigeria (CAC) that handles that.

However, the fertilizer department of the Ministry of Agriculture in your state of operations will give you the business permit and the operating license. This could be revoked if you are found to have violated the terms of the license.

Renting Your Business Premises

The immediacy of your business to the target market should govern your objectives while scouting for a suitable location. It should also support effective transportation and marketing.

Sourcing For Raw Materials

There are various sources for the raw materials used in the manufacture of organic fertilizer(s). You can easily get these from abattoirs who custody animal matters.

You can also get the products from poultry farmers as well as sewage management companies. You need a steady flow of these raw materials to stay out of the business.

Packaging and Distribution

Effective packaging is a must in the fertilizer business. this is necessary because of the offensive odour emitted from the product. It is also necessary to guard against spoilage during transportation and movement from place to place.

Marketing, Promotion and Trade Unionism

There are many means of marketing your fertilizer business. you can place adverts on agro-related magazines, workshops, and expos for products promotions.

Additionally, you can advertise on the social media such as Facebook, Twitter, Instagram etc.

You may consider joining some fertilizer bodies in Nigeria such as Fertilizers Producers And Suppliers Association of Nigeria (FEPSAN). This comes with several Membership Benefits some of which are highlighted below.

Become A Member of FEPSAN – Services/Benefits

1. Provides various forms of data for members. This includes but not limited to industry trend data, monthly trade, and market data.

They also provide other priceless pieces of information which assists members to forecast impending fluctuations in the fertilizer industry. With this, members can effectively plan their businesses.

2. provides business development services to members.

3. Provides valuable, timely and reliable pieces of information to members.

4. Builds the capacity of its members, who are company staffs

5. Links members with sources of raw materials as well as markets for selling or obtaining the finished products

6. Helps in collaborative fertilizer publicity, adverts and other forms of promotions

7. Represents the interest of FEPSAN at the Federal, State and local levels

8. Represents FEPSAN at trade fairs, exhibitions, and shows.

9. Helps to develop the database for the Nigerian fertilizer industry

Membership Categories in FEPSAN

Category A: Executive Members

This includes fertilizer manufacturers, importers, and bending plants be they corporate bodies or sole proprietors.

Category B: Regular Members

This class of FEPSAN members includes fertilizer distributors and dealers including individuals, the corporate bodies, and sole proprietors.

Category C: Affiliate Members

This is the category that includes other associations and individuals who are involved in other forms of Agric input supply and marketing.

Amongst these include seeds, agrochemicals, credit, farm tractors, machinery, and equipment, etc. another sector includes bulk handlers; clearing agents; transporters; farmers’ organizations, Agric-commodity trade associations, NGOs, and CBOs.

In this class, we also find the public and private organizations as well as individuals who are involved in the regulation, control, registration, research, development, testing, and use of fertilizer.

Category D: Honorary Members

These are corporate entities or persons who in the opinion of the Executive Committee, help to promote the cause and interest of FEPSAN.

Summary

The organic fertilizer production business in Nigeria can be a lucrative and profitable venture to start up, due to its vast market demands and on your own ability to build a wide supply chain network. If you’re looking for a business to venture into, the organic fertilizer production business in Nigeria is a great option to explore.

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