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Q & A

What’s Composting?

It is a natural process of decomposition, i.e. the breakdown of raw organic materials into finished compost. It is a gradual and complex chemical and biological process where organic matters are decomposed into compost.

Composting process is generally divided into two:-

i) AEROBIC (with oxygen) decomposition and stabilization.

ii) ANAEROBIC (without oxygen) decomposition.

In both of these processes, bacteria, fungi, molds, protozoa, actinomycetes, and other saprophytic organisms feed upon decaying organic materials initially, while in the later stages of decomposition mites, millipedes, centipedes, springtails, beetles and earthworms further breakdown and enrich the composting materials.

Technological control over temperature and its environment will produce varying levels of biological activities and types of organisms. The goal of technological intervention is to create the most favorable environment possible for the desired organisms.

Why Composting?

Compost as soil conditioner has the following advantages:-

§         Preserve and recycle nitrogen, phosphorus, and potassium.

§         Provides essential plant micronutrients.

§         Can reduce the need for pesticides.

§         Increases water holding capacity.

§         Increases aeration and drainage for clay soils

Why Organic Fertilizer?

Global Market Trend

(i) International Fertilizer Supply and Demand is increasing drastically especially in Asia and Latin America 

The global economic conditions throughout 2007 remain in firm footing despite the threat of the weakening housing market in the USA. This is to a large extent supported by strong growth in the emerging Asia. Growth of world GDP is assessed at 4.9% for 2008. 

         In the medium term, global economic growth remains firm, with annual rates lower than those observed since 2004, but is expected to harbor above 3%.

The favorable economic climate appears to have a positive bearing on global fertilizer consumption scenario.  According to the International Fertilizer Industry Association, France (IFA), the fertilizer industry has started a new demand-driven cycle, supported by an exponential growth in bio-fuels crops and a recovery in fertilizer use in the main consuming regions. Grain consumption is rising, driven by strong demand for food, feed and bio-fuels production, leading to very tight grain market conditions and a severe contraction of the world stock-to-use ratios well below critical levels. 

From 2001 through 2006, global nitrogen demand has increased by 14 percent, phosphate demand grew by 13 percent and potash demand grew by 10 percent. 

In 2006 alone, global fertilizer consumption expanded by a massive increase of 6 million tons nutrients, providing a strong foundation for a sustained 2.7 per cent annual growth rate between 2007 and 2011. The bulk of the increase in demand is occurring in Asia and Latin America. 

India, China and Brazil are leading the pack as the largest contributors to the growth in global nutrient demand. This growth is being driven by rising incomes in these countries, as people spend more to improve their diets by way of food diversification towards more meat, fish, fruits, vegetables, sugar and vegetable oils and less cereals and pulses per capita. More meat production will require greater amounts of coarse grains and oilseed meals. Fruit and vegetable production expands also very quickly. For instance, in China, the area planted with fruits and vegetables increases on average by more than one million hectares (Mha) every year, reaching today some 32 Mha. Production of fruits, vegetables and other labor-intensive cash crops expands quickly in India as well.

This increase in international demand for fertilizer has been a major factor in the rising cost of fertilizer.

(ii) Bio-fuel Factor

The surge of crude oil prices to record high over the last few years has a dual effect on fertilizer demand:

§         It impacts fertilizer prices on one hand, and

§         Stimulates bio-fuel production on the other hand

.

In the United States, the ethanol sector that uses corn as its main feedstock is expected to double in the coming years. Higher corn prices are encouraging farmers to plant even more corn and use more fertilizer to enhance production. All grain prices have risen as a result.

Current estimate put it at 17% of the domestic maize output are now served for ethanol production in 2005/06, and that this share would jump to almost one third in 2007/08.

Because of the very fast expansion of the US ethanol industry, and the European biodiesel industry, and of the huge amounts of feedstock required to achieve the regulated objectives, this growing trend is having a significant impact on fertilizer prices. 

(iii) Climate Change and Carbon Lifecycle Assessment

The pressure to go for “green” is pushing every fabric of the manufacturing process to adapt to this new market environment. Consumers today are demanding minimal carbon footprint on every vegetative products they consume. This is forcing plantation owners to use more and more bio-fertilizer as part of their farm input. Bio-fertilizer being carbon neutral has far superior carbon footprint compare to mineral fertilizer which is a products of petro-chemical industry.

NPK compound fertilizer generates high volume of greenhouse emission. For instance, the mineral nitrogen fertilizer industry is an energy intensive industry, producing CO2 from both process (feedstock) and fuel sources. According to the latest IFA benchmarking exercise, the CO2 generation from ammonia production ranges from 1.52 to 3.06 tonnes of CO2 per tonne of ammonia produced for the 66 participating ammonia plants.* On average, one-third of CO2 emissions is from burning fuel and two-thirds are from the use of hydrocarbon feedstock. Natural gas is the dominant feedstock. *Source: (PSI, 2004) 

(iv) Technology Trend Towards ‘In-situ” Production to Achieve Material Efficiency

The technology trend since the 90’s has been decentralized production of resource based industry. The clear example is small renewable power plant spreading across the land will reduce overall delivered power cost even though bigger (centralized) power plant has lower generation cost at production floor.

The same goes with resource based bio-fertilizer industry. The trend is to produce bio-fertilizer “in-situ” i.e. production of end-product (bio-fertilizer) at the place of feedstock and place of consumption. This technology trend allows cost efficiency to compete with bigger multinational producer located far away from place of feedstock and consumption.

(v) Fast Growing Global Market Size

Driven by strong demand for bio-fuels crops and higher demand of fertilizer use in the main consuming regions, global fertilizer consumption in calendar year 2006 raised 6 million tons (Mt) nutrient over 2005, to 161.8 Mt, followed by another projected increase of 6 Mt nutrients in 2007, to 167.6 Mt. This has set the foundation for a sustained 2.7 per cent annual growth rate between 2007 and 2011, to reach 183.4 Mt in 2011.

Fertilizer consumption has direct link with population and income per capita growth. With Asia being the engine of global growth, it is not surprising to see strong fertilizer demand is anticipated to remain very strong in Asia (4.8 per cent growth annually) as greater amounts of fertilizer are needed to achieve food self-sufficiency policy objectives. 

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