Table of Content

    1. Organic fertilizer production business plan for starting your own organic fertilizer business

    The agriculture industry is a vast industry and investing in it brings good fortune. This bio-organic fertilizer business plan sample will help you take the best steps for initiating your own business. Firstly you can decide which product you want to produce. For this, you can get an idea through market research and analysis. Secondly, you will work on market strategies in order to penetrate the market and get the maximum business share.

    Thirdly, budgeting is a mandatory part of the organic farm business plan and this plan helps you make an excellent financial plan to map out all the transactions. Lastly, you can obtain a profitable market plan to confidently enter the agriculture market. You can find more samples too like Garlic Farm Business Plan.

    2. Executive Summary

    The Business

    The Greenpro Organic Fertilizer is starting a fertilizer business for producing organic fertilizer through the process of daily food waste recycling. This idea reduces the utilization of chemical fertilizers ultimately protecting the ecosystem from the harmful impact of toxic chemicals.

    Organic fertilizers, produced by Greenpro Organic Fertilizer, not only make the environment clean but also resolve problems aroused by food waste produced by our daily consumption and food industries.

    Technically, our raw material source is food waste for producing organic fertilizers. So our business will be producing cash practically from the trash. It significantly decreases the material production cost.

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    Business Target

    The development of an Agriculture Farm Business Plan for organic animal feed and organic fertilizer manufacturing will serve a multitude of markets such as small-scale to large-scale farm producers, farming cooperatives, gardeners, and institutional agricultural departments.

    The plantation and agriculture sectors are the major clients who require huge amounts of fertilizers to boost their productivity. We will also put our efforts into educating farmers as well as household individuals to expend organic fertilizers for the purposes of plantation and all houseplants.

    The Greenpro Organic Fertilizer’s financial projections show a viable business having the potential of generating significant profit in the upcoming years.

    Organic Fertilizer Business Plan - Business Target

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    3. Company Summary

    The Greenpro Organic Fertilizer will be established as a manufacturer for transforming food waste into organic fertilizers through the fermentation method. We ensured our business location in an accessible area that enables us to grow and offer better services than existing similar businesses.

    We will always go the extra mile to make our customers satisfied with our services and products. We will promote our business by conducting seminars, conferences, TVC ads, and distributing pamphlets and advertising boards all across the country.

    Our IT department will maintain our website with all the necessary information available on it. We will strengthen our presence on Social media channels such as Facebook, Instagram, Twitter, and LinkedIn.

    Company Owner

    Greenpro Organic Fertilizer is owned and managed by Mr. Alex Mag. He holds a Masters’s degree in agriculture as well as Masters’s degree in Business Management. He has worked for almost 18 years in the field of agriculture with different companies.

    Why the fertilizer business is being started

    Mr. Alex Mag, based on his interest and extensive experience, took the initiative of starting his own business organic fertilizer. He has a good understanding of how to start a manure business or organic fertilizer business, and how it can contribute to making our environment safe for humankind.

    How the fertilizer company will be started

    This organic fertilizer production project will be started as an environment-friendly business to provide chemical-free organic products to clients & educate people about organic fertilizer significance.

    The company hierarchy outlines all employees such as the General manager, Production Manager, Operations Manager, Engineering head, and workers. They will be responsible for the production of high-quality organic fertilizers meeting customer needs.


    IT and Marketing department will promote our business and products through online or print media, Word of mouth & seminars, to attract a huge number of clients.

    The finance department will maintain all startup costs, budgets, marketing expenses, and profits. This organic fertilizer business plan template includes all the details to successfully initiate a business.

    Organic Fertilizer Business Plan - startup costs

    Start-up Expenses  
    Legal $116,800
    Consultants $0
    Insurance $12,000
    Rent $30,000
    Research and Development $10,000
    Expensed Equipment $28,000
    Signs $3,000
    Start-up Assets $250,000
    Cash Required $165,000
    Start-up Inventory $40,000
    Other Current Assets $220,000
    Long-term Assets $235,600
    TOTAL ASSETS $910,600
    Total Requirements $1,110,400
    Start-up Expenses to Fund $199,800
    Start-up Assets to Fund $910,600
    Non-cash Assets from Start-up $1,200,600
    Cash Requirements from Start-up $296,500
    Additional Cash Raised $48,000
    Cash Balance on Starting Date $36,000
    TOTAL ASSETS $1,581,100
    Liabilities and Capital
    Liabilities $18,500
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $70,000
    Other Current Liabilities (interest-free) $0
    Planned Investment $1,110,400
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $382,200
    TOTAL CAPITAL $1,492,600
    Total Funding $1,110,400
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    4. Services of Fertilizer Company

    This sample business plan for organic fertilizer highlights various services offered by the Greenpro Organic Fertilizer.

    • Bulk and Bagged Fertilizer Blending and Delivery: Providing custom blended fertilizer and soil amendment mixes to meet customer needs, delivered in bulk or in bags, to farms, turf and landscape, nurseries, and commercial sites.
    • Soil Analysis, Recommendation and production: Conduct soil tests and recommend the best fertilizers, soil amendments, and cultural practices for each site and crop and production of organic manure.
    • Plant Tissue Analysis: Taking and analyzing plant samples to determine nutrient deficiencies and other problems and recommending corrective action.
    • Nutrient Management Planning: Develop nutrient management plans to meet the specific needs of each crop and site.
    • Nutrient and Weed Control: Recommending and supplying the most appropriate fertilizers and herbicides for each crop and site.
    • Fertilizer Application: Applying fertilizer to crops, turf, and landscape sites.
    • Custom Blending: Creating custom fertilizer blends for specific crops, soils, and sites.
    • Fertilizer Mixing: Mixing and blending different fertilizer products to create a custom mix.
    • Soil Conditioning: Applying soil amendments to improve soil structure, fertility, and drainage.
    • Organic Fertilizers and Amendments: Supplying organic fertilizers and amendments to meet customer needs.
    • Environmental Protection: Ensuring safe and responsible use of fertilizers and other products to protect the environment.

    5. Marketing Analysis

    Marketing analysis discovers the needs of the people, the trend of the market, and tells how to make commercial organic fertilizer, the target market & segments, competition strategy, and pricing trend.

    Marketing analysis is an important part of the marketing plan for organic fertilizer that gives insights into how many customers can be attracted at a time and how our products can compete with the market-leading brands.

    Market Trends

    Linda K.

    Very professional

    Had a great experience with OGS, especial ly Alex. Understood exactly what I wanted and did the job when promised. I was little skeptical about them at first but they definitely were amazing. Very happy with the work. I highly recommend them!

    ∙ Linda K.

    Organic products and organic fertilizer is rising day by day. The focus of nutritionists on organic food has sparked the fortune of organic fertilizer industries. Organic fertilizers have a huge importance for organic crop cultivation.

    Marketing Segmentation

    Our Greenpro Organic Fertilizer has categorized the targetted customers of organic fertilizers into four segments organic farmers, inorganic farmers, estate owners and retailers. Estate owners are selected because of the huge plantation and they need fertilizers in bulk.

    Organic Fertilizer Business Plan - Marketing Segmentation

    Market Analysis              
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Organic Farmers 33% 40,000 48,000 57,600 69,120 82,944 10.00%
    Inorganic Farmers 32% 35,000 42,000 50,400 60,480 72,576 10.00%
    Retailers 20% 25,000 30,000 36,000 43,200 51,840 10.00%
    Estate Owners 15% 15,000 18,000 21,600 25,920 31,104 11.00%
    Total 100% 115,000 138,000 165,600 198,720 238,464 10%

    Business Target

    The organic fertilizer market is undoubtedly huge as it has uses in various segments. Based on our market research we will be providing organic fertilizers to organic and non-organic crop farmers and estate owners through retailers and wholesalers.  This is because the major business chunk lies here.

    Product Pricing

    Like other markets, the pricing trend also keeps on changing in the organic fertilizer industry. Greenpro Organic Fertilizer has also designated the prices based on the sizes and packages.

    We will be following the penetration pricing strategy initially for at least 12 months. This will lower our profit margins but it will greatly help us to maintain shelf level in the market.

    6. Marketing Strategy of Fertilizer Company

    The marketing strategy for how to sell fertilizer to farmers, gardeners, and other related customers is derived from marketing analysis. Marketing strategy helps to gain our desired results by properly focusing on the set targets.

    Competitive Analysis

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    The organic fertilizer commercial industry has become notably competitive. You must come up with an innovation in order to gain a good share of the market. Moreover, keep a constant eye on the competition so that they will not engage your customers.

    Sales Strategy

    Sales Strategy includes selling our products into properly packaged fertilizer bags such as 10kg, 25kg,50kg, and above based on targeted customers.  These will be sold to different retail stores/wholesalers of organic fertilizers. Furthermore, engage customers through social media accounts. A compensation plan can be offered to attract more clients such as bonus on bulk purchases.

    Sales Monthly

    Targeted Monthly sales should be maintained as follows;

    Organic Fertilizer Business Plan - Sales Monthly

    Sales Yearly

    Targeted yearly sales should be maintained as follows;

    Organic Fertilizer Business Plan - Sales Yearly

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    Sales Forecast

    Following is the sales forecast

    Organic Fertilizer Business Plan - Sales Forecast

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Manufacturing & Setting Up Solar Cells 5,000 5,300 5,618
    Organic Farmers 1,500 1,590 1,685
    In-organic Farmers 900 954 1,011
    Awarness campaign 3,300 3,498 3,708
    TOTAL UNIT SALES 10,700 11,342 12,023
    Unit Prices Year 1 Year 2 Year 3
    Organic Farmers $985.00 $1,142.60 $1,325.42
    In-organic Farmers $1,540.00 $1,786.40 $2,072.22
    Retailers $2,000.00 $2,320.00 $2,691.20
    Awarness campaign $800.00 $928.00 $1,076.48
    Organic Farmers $4,925,000.00 $6,055,780.00 $7,446,187.09
    In-organic Farmers $2,310,000.00 $2,840,376.00 $3,492,526.33
    Retailers $1,800,000.00 $2,213,280.00 $2,721,449.09
    Awarness campaign $2,640,000.00 $3,246,144.00 $3,991,458.66
    TOTAL SALES $11,675,000.00 $14,355,580.00 $17,651,621.17
    Direct Unit Costs Year 1 Year 2 Year 3
    Organic Farmers $974.00 $1,071.40 $1,124.97
    In-organic Farmers $1,490.00 $1,639.00 $1,720.95
    Retailers $1,990.00 $2,189.00 $2,298.45
    Awarness campaign $795.00 $874.50 $918.23
    Direct Cost of Sales
    Manufacturing & Setting Up Solar Cells $4,870,000.00 $5,678,420.00 $6,320,081.46
    Organic Farmers $2,235,000.00 $2,606,010.00 $2,900,489.13
    In-organic Farmers $1,791,000.00 $2,088,306.00 $2,324,284.58
    Retailers $2,623,500.00 $3,059,001.00 $3,404,668.11
    Subtotal Direct Cost of Sales $11,519,500.00 $13,431,737.00 $14,949,523.28

    7. Personnel Plan of Fertilizer Company

    Company Staff

    Based on Greenpro Organic Fertilizer’s hierarchy all the professional staff will be hired based on their competency and experience.  Based on the sample business plan for biofertilizer company following employees will be hired.

    1. CEO
    2. COO
    3. CFO
    4. Director Operations
    5. Director of Sales & Marketing
    6. Plant Director
    7. Plant Manager
    8. Head of HR & Administration
    9. Head of IT department
    10. Financial Analyst

    OTher supporting staff includes

    1. Accounting clerks
    2. Marketing Managers
    3. Receptionist
    4. Office Assistants
    5. HR managers/officers
    6. IT managers/officers
    7. Admin officers and experts
    8. Janitorial Staff

    Moreover, there must be a field staff of the company as follows;

    1. Project Managers
    2. External Auditors

    This hierarchy can be used for multiple businesses such as State Farm Agent Business Plan.

    Any questions? Get in Touch

    Average Salary of Employees

    The average salary for sports agency employees is $60,000. The salary is based on the average salary of all employees, including those in administration, marketing, and sales.

     Personnel Plan      
    Year 1 Year 2 Year 3
    CEO $40,000 $44,000 $48,400
    CFO $38,000 $41,800 $45,980
    COO $39,000 $42,900 $47,190
    Management $150,000 $165,000 $181,500
    Field Staff $75,000 $82,500 $90,750
    Supporting Staff $100,000 $110,000 $121,000
    Drivers $30,000 $33,000 $36,300
    Total Salaries $472,000 $519,200 $571,120

    8. Financial Plan for Fertilizer Company

    Financials of the organic fertilizer production business plan should be calculated carefully in order to correctly estimate the costs, expenses, and profits. Financial reports should be regularly generated to keep proper records. CEO will monitor the financial statements on monthly basis to check all transactions.

    Important Assumptions

    An organic fertilizer company’s financial plan is based on the following assumptions:

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 7.11% 7.11% 7.19%
    Long-term Interest Rate 7.35% 7.35% 7.44%
    Tax Rate 23.01% 23.01% 23.09%
    Other 0 0 0

    It is expected that variances will be kept to levels that will not negatively impact the organic fertilizer company’s major financial goals.

    Brake-even Analysis

    The following is a breakdown of the iorganic fertilizer company’s fixed and variable costs:

    Organic Fertilizer Business Plan - Brake-even Analysis

    A monthly break-even analysis of an organic fertilizer company is shown in the following table.

     Break-Even Analysis  
    Monthly Units Break-even 5339
    Monthly Revenue Break-even $131,850
    Average Per-Unit Revenue $233.00
    Average Per-Unit Variable Cost $0.68
    Estimated Monthly Fixed Cost $166,200

    Projected Profit and Loss

    A fertilizer made from organic materials will make the following profits and losses.

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $11,675,000 $14,355,580 $17,651,621
    Direct Cost of Sales $11,519,500 $13,431,737 $14,949,523
    Other $0 $0 $0
    TOTAL COST OF SALES $11,519,500 $13,431,737 $14,949,523
    Gross Margin $155,500 $923,843 $2,702,098
    Gross Margin % 1.33% 6.44% 15.31%
    Payroll $472,000 $519,200 $571,120
    Sales and Marketing and Other Expenses $133,000 $136,000 $138,000
    Depreciation $2,100 $2,200 $2,400
    Leased Equipment $0 $0 $0
    Utilities $2,800 $2,900 $3,000
    Insurance $2,100 $2,100 $2,100
    Rent $3,400 $3,500 $3,600
    Payroll Taxes $22,000 $23,000 $24,000
    Other $0 $0 $0
    Total Operating Expenses $637,400 $688,900 $744,220
    Profit Before Interest and Taxes ($481,900) $234,943 $1,957,878
    EBITDA ($481,900) $234,943 $1,957,878
    Interest Expense $0 $0 $0
    Taxes Incurred ($96,380) $46,989 $391,576
    Net Profit ($385,520) $187,954 $1,566,302
    Net Profit/Sales -3.30% 1.31% 8.87%

    Profit Monthly

    Organic Fertilizer Business Plan - Profit Monthly

    Profit Yearly

    Organic Fertilizer Business Plan - Profit Yearly

    Gross Margin Monthly

    Organic Fertilizer Business Plan - Gross Margin Monthly

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    Gross Margin Yearly

    Organic Fertilizer Business Plan - Gross Margin Yearly

    Projected Cash Flow

    Below is a chart showing cash flow projections.

    Organic Fertilizer Business Plan - Projected Cash Flow

    An organic fertilizer company’s pro forma cash flow is shown in the following table. General assumptions are included in the cash flow statement.

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $50,000 $54,000 $58,320
    Cash from Receivables $25,000 $27,000 $29,160
    SUBTOTAL CASH FROM OPERATIONS $75,000 $81,750 $88,290
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $80,000 $87,000 $93,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $37,000 $38,000 $40,000
    Bill Payments $24,000 $27,000 $28,000
    SUBTOTAL SPENT ON OPERATIONS $61,000 $65,000 $68,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $62,000 $66,960 $72,317
    Net Cash Flow $21,000 $24,000 $25,000
    Cash Balance $27,000 $30,000 $32,000

    Projected Balance Sheet

    As shown in the following balance sheet, the pro forma balance sheet of the anorganic fertilizer company shows the total assets, total liabilities, current subtotal liabilities, total capital, and total liabilities.

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $291,142 $326,079 $358,687
    Accounts Receivable $25,877 $28,982 $32,576
    Inventory $6,511 $7,292 $4,900
    Other Current Assets $2,907 $2,507 $2,507
    TOTAL CURRENT ASSETS $326,437 $364,861 $398,670
    Long-term Assets
    Long-term Assets $9,755 $9,755 $9,755
    Accumulated Depreciation $18,222 $20,409 $22,960
    TOTAL LONG-TERM ASSETS $28,300 $31,696 $35,658
    TOTAL ASSETS $354,737 $396,557 $434,328
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,800 $22,176 $24,926
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,800 $22,176 $24,926
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $16,700 $18,704 $21,023
    Paid-in Capital $49,237 $61,372 $63,662
    Retained Earnings $58,500 $63,765 $70,142
    Earnings $174,000 $189,660 $208,626
    TOTAL CAPITAL $338,037 $377,853 $413,304
    TOTAL LIABILITIES AND CAPITAL $354,737 $396,557 $434,328
    Net Worth $298,760 $325,648 $358,213

    Business Ratios

    An organic fertilizer company’s business ratios, ratio analysis, and total assets are shown in the following table.

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 6.26% 6.94% 7.69% 3.00%
    Percent of Total Assets
    Accounts Receivable 8.25% 9.14% 10.13% 9.80%
    Inventory 5.00% 5.54% 6.14% 9.90%
    Other Current Assets 2.25% 2.49% 2.76% 2.40%
    Total Current Assets 140.30% 151.00% 152.00% 158.00%
    Long-term Assets 12.58% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.58% 4.62% 4.66% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.51% 7.57% 7.64% 7.38%
    NET WORTH 100.03% 100.83% 101.76% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 91.65% 94.12% 96.76% 99.00%
    Selling, General & Administrative Expenses 93.80% 96.33% 99.03% 97.80%
    Advertising Expenses 1.44% 1.48% 1.52% 1.40%
    Profit Before Interest and Taxes 38.90% 39.95% 41.07% 33.90%
    Main Ratios
    Current 33 34 35 33
    Quick 32 33.2 34.03 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 72.68% 74.24% 75.00% 75.00%
    Pre-tax Return on Assets 96.88% 101.72% 106.81% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 35.51% 36.61% 37.75% N.A.
    Return on Equity 57.20% 58.97% 60.80% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.7 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 28.3 29.715 32 N.A.
    Accounts Payable Turnover 14.9 16 16.3 N.A.
    Payment Days 28 27 27 N.A.
    Total Asset Turnover 2.6 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $238,000 $251,328 $265,402 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 28.06 28.13 28.77 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    9. FAQ

    • Is the organic fertilizer business profitable?
      Yes, organic fertilizer businesses can be very profitable. The increasing demand for organic fertilizer due to its environmental benefits and the availability of government grants and incentives to promote organic agriculture make this a potentially lucrative business opportunity. Additionally, organic fertilizer businesses typically have high margins and benefit from repeat customers.
    • What raw materials are used to make fertilizer?
      The raw materials used to make fertilizer vary depending on the type of fertilizer being made. Generally, fertilizer is made from various forms of nitrogen, phosphorus, and potassium, which can be derived from both organic and synthetic sources. Organic sources of these nutrients may include animal manure, compost, bone meal, blood meal, and seaweed. Synthetic sources may include ammonium nitrate, urea, and potassium chloride. Other raw materials may include limestone, magnesium, and sulfur.

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