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 
Research and Development$10,000
Expensed Equipment$28,000
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 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 
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
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$382,200
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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Organic Farmers33%40,00048,00057,60069,12082,94410.00%
    Inorganic Farmers32%35,00042,00050,40060,48072,57610.00%
    Estate Owners15%15,00018,00021,60025,92031,10411.00%

    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 SalesYear 1Year 2Year 3
    Manufacturing & Setting Up Solar Cells5,0005,3005,618
    Organic Farmers1,5001,5901,685
    In-organic Farmers9009541,011
    Awarness campaign3,3003,4983,708
    TOTAL UNIT SALES10,70011,34212,023
    Unit PricesYear 1Year 2Year 3
    Organic Farmers$985.00$1,142.60$1,325.42
    In-organic Farmers$1,540.00$1,786.40$2,072.22
    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
    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 CostsYear 1Year 2Year 3
    Organic Farmers$974.00$1,071.40$1,124.97
    In-organic Farmers$1,490.00$1,639.00$1,720.95
    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
    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.

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    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 1Year 2Year 3
    Field Staff$75,000$82,500$90,750
    Supporting Staff$100,000$110,000$121,000
    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 1Year 2Year 3
    Plan Month123
    Current Interest Rate7.11%7.11%7.19%
    Long-term Interest Rate7.35%7.35%7.44%
    Tax Rate23.01%23.01%23.09%

    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-even5339
    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 1Year 2Year 3
    Direct Cost of Sales$11,519,500$13,431,737$14,949,523
    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%
    Sales and Marketing and Other Expenses$133,000$136,000$138,000
    Leased Equipment$0$0$0
    Payroll Taxes$22,000$23,000$24,000
    Total Operating Expenses$637,400$688,900$744,220
    Profit Before Interest and Taxes($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 ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$25,877$28,982$32,576
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth6.26%6.94%7.69%3.00%
    Percent of Total Assets    
    Accounts Receivable8.25%9.14%10.13%9.80%
    Other Current Assets2.25%2.49%2.76%2.40%
    Total Current Assets140.30%151.00%152.00%158.00%
    Long-term Assets12.58%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.58%4.62%4.66%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.51%7.57%7.64%7.38%
    NET WORTH100.03%100.83%101.76%110.00%
    Percent of Sales    
    Gross Margin91.65%94.12%96.76%99.00%
    Selling, General & Administrative Expenses93.80%96.33%99.03%97.80%
    Advertising Expenses1.44%1.48%1.52%1.40%
    Profit Before Interest and Taxes38.90%39.95%41.07%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth72.68%74.24%75.00%75.00%
    Pre-tax Return on Assets96.88%101.72%106.81%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin35.51%36.61%37.75%N.A.
    Return on Equity57.20%58.97%60.80%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.77.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover28.329.71532N.A.
    Accounts Payable Turnover14.91616.3N.A.
    Payment Days282727N.A.
    Total Asset Turnover2.62.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$238,000$251,328$265,402N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test28.0628.1328.77N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.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.

    Download Organic Fertilizer Business Plan Sample in pdf