Sunday, June 24, 2012

Worm Management


It defines the thrilling potential for waste reduction, fertilizer production, as well as an assortment of possible uses for the future. Vermiculture enhances the growth of plants that provide food along with producing prosperous and financially rewarding fertilizer.
The earthworm is one of nature’s pinnacle “soil scientists.” Earthworms are liberated, cost effective farm relief. The worms are accountable for a variety of elements including turning common soil into superior quality. Worms facilitate the amount of air and water that travels into soil. They break down organic matter and when they eat, they leave behind castings that are an exceptionally valuable type of fertilizer.
Charles Darwin’s primal struggle to survive and reproduce entailed the terminal disappearance called extinction (extinction being the death of the species and so the death of deaths). Darwin was haunted by irredeemable loss and studied the benefits of worms over one hundred years ago. Today, his foresight on the topic of Vermiculture (worms) has influenced the profit margin for many farmers across the country.
About vermiculture
The art of composting has been part of our global culture since ancient times. The basic principles are quite simple, and adhering to them will result in an efficient and successful outcome. Studies have shown that home composting can divert an average of 700 lbs. of material per household per year from the waste stream. Municipal composting carries a greater environmental cost, but not nearly as high as if leaf and yard waste are disposed of by conventional means.
Today there are several different reasons why composting remains an invaluable practice. Yard and food wastes make up approximately 30% of the waste stream in the Philippines. Composting most of these waste streams would reduce the amount of Municipal Solid Waste (MSW) requiring disposal by almost one fourth, while at the same time provide a nutrient-rich soil amendment. Compost added to gardens improves soil structure, texture, aeration, and water retention.
When mixed with compost, clay soils are lightened, and sandy soils retain water better. Mixing compost with soil also contributes to erosion control, soil fertility, proper pH balance, and healthy root development in plants.
The standard means of disposal for most yard and food waste include landfilling and incineration. These practices are not as environmentally or economically sound as composting. Yard waste which is landfilled breaks down very slowly due to the lack of oxygen. As it decomposes, it produces methane gas and acidic leachate, which are both environmental problems
Vermicomposting is the easiest way to recycle food wastes and is ideal for people who do not have an outdoor compost pile. Composting with worms avoids the needless disposal of vegetative food wastes and enjoy the benefits of a high quality compost. It is done with “redworms” (Eisenia fetida) who are happiest at temperatures between 50o and 70o F and can be kept indoors at home, school, or the office. Worms process food quickly and transform food wastes into nutrient-rich “castings.”
The worms will gradually reproduce or die according to the amount of food they receive. A sudden addition of a large amount of food waste may attract fruit flies, so increases should be made gradually.
Vermiculture is easy to practice, and uses only indigenous worms. The farmer rears them in pits 3m long, 1m wide and 1m deep, which can be easily dug with family labor. At the bottom of the pits, broken bits of earthen pots and broken bricks are laid to provide adequate drainage. Over that a 2.5cm layer of soil is spread and spats of fresh cowdung sprinkled. About 500 earthworms (all collected locally) may then be introduced in the pit, and covered with a thin layer of rice straw. Water should be splashed evenly over the last layer, and the pit covered with coconut fronds to protect the worms from sun and predatory birds.
“We recommend a composite culture of worms, which include burrowing types, surface feeders and column feeders. They do not compete with each other for food, and water, but on the contrary they are complimentary in nature” explains Dr. Ismail.
After an incubation period of 30 days, when the worms should have multiplied several fold, the farmers can start charging the pits with all kinds of organic residues. Each time a layer of 5 cm can be added and, after spreading them evenly, a thin layer of soil should be used to cover the organic residues. The pits can be charged once in three days till the level reaches to just a few centimeters from the top. Regular watering should be done to keep the right amount of moisture in the pits. In another 90 days, the worms would have done their job well, as indicated by the earthworm castings on the topmost layer of the bed.
Farmers can collect the vermi-compost by digging out all the material from the pit. They should keep the material in a heap in the sun so that all the worms move down to the cool base of the heap. The farmers can then remove the top portions safely, powder the compost and sieve before applying to the fields. The worms collected at the base can be used for inoculating new vermi-composting pits. The quality of vermi-compost is far superior to other composts in terms of nutrients and other plant growth promoting substances.
Worm Supplier:
CRTD-PBSP
Brgy. San Isidro, Calauan, Laguna
Phone: (049) 568-0168, Fax: (049) 568-0265

Saturday, June 23, 2012

VERMICULTURE AND VERMICAST PRODUCTION



RATIONALE
Organic farming is practiced by farmers  nowadays because it is considered as healthiest way of    growing food crops. It is an emerging farming   system that most of the farmers observed not only in the Philippines but even overseas.     Organically grown food crops are increasing in market demand. Organic fertilizer has likewise increased in use as imported commercial fertilizer have been increasing its prices. Vermi-casting of humus is one of the organic fertilizers that revives the soil fertility level and brings back life to soil environment, improves soil texture and enriches water holding capacity. Humus has shown its potency in   inducing higher crop yield for a longer period.
For organic farming, castings of earthworms also known as vermicomposting is an excellent soil enhancer and bioactive high quality fertilizer. This is a good alternative in using chemical fertilizers and this has been proven in field tests. Vermicomposting is environment-friendly since earthworms feed on anything that is biodegradable and it aids the disposal problem. No imported inputs required given that worms are now locally available and the materials for feeding are abundant in the locality. Like market wastes, grasses, used papers and farm wastes.
Vermiculture and vermicast production industry have potentials in the domestic market especially in Region12 since it is an agro-based industry area. It now becomes a major component of agri-business models across the country. It can be easily produced and maintained by any investor who wishes to engage in this kind of industry. This    venture is highly profitable since both the worms and castings are saleable.

OBJECTIVE
This project aims to provide sufficient organic fertilizer (vermin-based) as well as to promote organic fertilizer application to local farmers.

PROJECT DESCRIPTION
Vermicuture is a process of propagating earthworms for fast production and sold to customers who use them for the same or other purposes. Vermicasting otherwise known as vermicomposting is the process by which worms are used to convert organic materials (usually wastes) into a humus-like material. African Night Crawlers (ANCs) are the agents used in creating vermicast. It falls under the classification of compost worms which live on the upper surface of the earth and they eat compost, not the soil. Earthworm mass is basically a by-product of vermicomposting.
The population of ANC multiplies, 2 times per cycle. These are sold Php 500.00 per kilo after every vermicast harvest which is when they have already multiplied. Vermicast are sold Php 200.00 per 40 kilo bag. Based on the projected sales, the project will generate Php 3,000.00 on the first cycle and approximately     doubled on the following cycles. Vermin culture and vermin composting are rapidly gaining recognition and use in agricultural   production today, so, it will be easier to promote.
General Santos City, South and North Cotabato were among the areas in the region that were found to be the preferred location of the project due to the presence of growers of fruits and vegetables who are  said to be primary markets of the product. However, Vermi-composting technology is simple and inexpensive because it is entirely    organic. Initially, ten (10) worm bins will be used in the project with two (2) kilograms of African Night Crawlers (ANC) per worm bin. Preparation of raw materials starts by cutting the materials for use as substrate (rice straw) into smaller pieces by chopping with a bolo or cutting with a scissor. Mixed raw materials (rice straw + manure) are put in the decomposition chamber.  Materials are then moistened and composting bin is  covered to initiate anaerobic decomposition. It takes 10 to 15 days to complete anaerobic decomposition and only then that they are ready for worm consumption. After the anaerobic decomposition, earthworms are introduced into the substrate. Aerobic decomposition lasts for 40-60 days depending on the materials used and the ratio of the worms to the substrate. Within the period, moisten (not soggy) the substrate regularly to provide the right moisture (60-80%) for the earthworm to grow and multiply. Harvesting will commence 45 days after stocking of worms. Prior to harvest, watering the substrate for 1 week is refrained to ease the separation of castings from worms and likewise preventing the castings to become compact. Then the breeder worms are  segregated from juvenile/baby worms by placing them in different containers or bins.
The total project cost of the vermiculture and vermicasting project is Php 15,595.00 in which Php 1,195.00 is the working capital for the first cropping cycle and expected to increase on the succeeding cycle since the production increases. The net income before tax on the first two cycles is Php 2,040.00 and Php 4,375.00 respectively. Income is doubled after first cycle since production is also doubled due to the multiplication of the worm. Financial ratios show that Gross Profit Rate (GPR) and Net Profit Rate (NPR) are 77% and 68% respectively. The return on investment is 105%. The cost of investment will be recovered approximately after 10 months and 9 days of operation.  This means that the project is worthwhile to embark on. On the other hand, if the project is        managed well, it could easily double its return.

MARKET TRENDS AND OPPORTUNITIES
Due to several crises arising like expensive cost of commercial fertilizer, poor soil fertility, and low income, farmers seek a more cost efficient type of fertilizer which is  the organic fertilizer.
Presently, farmers in Region 12 have reduced their area of production due to the high cost of inorganic fertilizer in the market. Without the needed fertilizer requirement, their land would never give a good yield which will in turn, cause the reduction of the  farmer’s production volume.
The sources of raw materials needed in producing the organic fertilizer are cheaper and always available in the area. With its low production cost, its selling price can be cheaper compared to non-organic ones, making it more competitive in the market.  As a result, farmers will be able to buy their farm’s  needed fertilizer and increase their    production volume.
FACILITIES NEEDED AND OTHER REQUIREMENTS
A.   Site Selection - select a site that is shaded and well-drained with available
water  supply. Temperature requirement is 25C-29C under
shade. Worms die when direct  to sunlight.
1. Small Scale Production - Fixed capital needed would consist of Hoes and
Spade,  bolos and scythes and the worm bins.
2. Commercial Production - provision of working space for drying and
bagging
B.  Materials
1. Worms – African night crawlers
2.  Worm bins or worm beds - used worm bins/worm beds which are
made of any material available whether iron bars with plastic lining,
old plastic basins, bamboo slats or hollow blocks. Precautions are
taken to ensure that they are protected from direct sunlight, too much
water  and natural predators.
FINANCIAL REQUIREMENT
VERMICULTURE AND VERMICAST PRODUCTION
Total Project Cost
Particulars
Amount
Fixed Assets

10 Hoes and Spades
400.00
10 Bolo and Scythe
2,500.00
10 Worm Bins
1,500.00
Biological Asset

African Night Crawlers (20 kilos @ Php 500.00/kilo)
10,000.00
Total
14,400.00
WORKING CAPITAL (1st Cropping Cycle = 45 days)

Production Inputs
510.00
Direct Labor
200.00
Overhead Expense
210.00
Operating Expenses
275.00
Total
1,195.00
Total Project Cost
15,595.00
Note: TPC excludes the land and production area cost
Underlying Assumptions:
v  Initially, two kilos of African Night Crawler will be put in each worm bin.

v  The number of African Night Crawler is doubled every cycle.
v  One (1) kilo of African Night Crawler contains 1,000 pieces.
v  10% of the multiplied African Night Crawler (ANC) are sold every after vermicast harvest.
v  No. of Cycles in a year is 8 cycle.

v  Substrate requirement is 10kilos/worm bin on first cycle.
v  Additional 10 kilos on substrate requirement on the succeeding cycle.
v  Substrate Proportion Requirement (70% rice straw: 30% manure).
v  Vermicast Recovery Rate is75%.
VERMICULTURE AND VERMICAST PRODUCTION
Projected Sales & Income
Particulars
1st Cropping Cycle
2nd Cropping Cycle
Sales


Vermicast


(5 bags @ Php 200.00 per 40 kilo bag)
1,000.00
(10 bags @ Php 200.00 per 40 kilo bag)
2,000.00
African Night Crawlers
(4 kilos @ Php 500.00 per kilo)
2,000.00
(7.2 kilos @ Php 500.00 per kilo)
3,600.00
Total
3,000.00
5,600.00
Less: Cost of Sales
Production Inputs
Rice Straw ( 7 kilos/ wormbin @ Php3.00)
210.00
420.00
Cow Manure (3 kilos/ wormbin @ Php10.00/kilo)
300.00
600.00
Direct Labor
(2 workers @ Php20/harvested bag)
200.00
400.00
Overhead Expense
Water (Php100.00/cycle)
100.00
100.00
Depreciation (Fixed Asset/EUL*/Working Capital Cycle)
110.00
110.00
Amortization (Biological Asset/EUL*/Working Capital Cycle)
125.00
125.00
Miscellaneous Expense
150.00
150.00
Total
685.00
885.00
Gross Income
2,315.00
4,715.00
Less:  Operating Expenses
Pre-Operating Expense (Pest Control)
100.00
100.00
Bags (Php10.00/pc)
50.00
90.00
Delivery Cost (Php5.00/bag)
25.00
50.00
Repair & Maintenance
100.00
100.00
Total
275.00
340.00
Net Income Before Tax
2,040.00
4,375.00
Return on Investment (Ave. Net Income/TPC)
105%
224%
Payback Period (TPC/Ave. Net Income + Amort. + Dep'n)
10 Months and 9 Days
Gross Profit Ratio (Gross Profit/Total Sales)
77%
84%
Net Profit Ratio (Net Profit/Total Sales)
68%
78%
*EUL – Estimated Useful Life
For Inquiries, please contact:
National Economic Research and Business Assistance Center
SOCCSKSARGEN (Region 12)
Ground Floor, RA Bldg., South Osmena St., General Santos City
Telefax No. 083-5528250 & Email Address: nerbac@dti12.org.
Visit: www.investinr12.net