THE Business Concept: "Reuse of slurry from cattle for the manufacture of containers for plants"
Team
In 2009, the entrepreneur Esther Pascual completed her studies of biology at the University of the Basque Country in Spain. She has been involved with environmental and rural development for several years and has recognised the social, economic and environmental challenges and opportunities associated with ecologically sustainable production. In addition she has worked extensively and creatively in various organizations. In this project shecooperates with an economist and a geographer.
Product
Biodegradable containers are produced from the dehydration of cattle droppings forforest and horticultural plants These containers are made of organic material that do not smell, avoid pathogensand release a large percentage of nitrogen.
Three types of packaging exist:
- Pack of 5 liters
- Pack of 32 alveoli with 250cc capacity.
- Pack multialveolar seed (for plant germination and planting vegetables) with 150 alveoli.
Advantages
1. It is biodegradable (does not generate waste)
2. It has less weight than corresponding plastic containers, which lowers transportation costs
3. It is introduced directly intothe ground with the plant, thereby avoiding disposal of plastic
4. The plant does not suffer during the transplant
5. Provides naturally additional quantities of N, P and K, necessary for development, rooting and fruiting of plants. This reduces the cost of investment in chemical fertilizers
6. Easily storable and durable under optimal conditions
7. The raw material is generally acknowledged as a source of natural fertilizer
8. In addition the productassist in the management of livestock wastes, relieving the farmer of the responsibility of waste disposal and assists in the possible improper disposal of such waste.
9. The product can thus contribute to the socio-economic development in rural areas.
The team is currently working on extending the characteristics of the product in order to take better account of the nutritional needs of plants from different families. Regarding the size of the product, there is a possibility of making pots virtually "on demand" since the cost of the molds is not excessive and such ramifications may better meet market demand.
Competitors
A number of competing products have been identified that, while not identical with regards to product composition, are also biodegradable. Among them are companies such as CocoPot Produktions, Fertil, Colent BV, Jiffy Products, Wibmer, Napac, GroenCreatie, Biopolymers, Compopure Stärke, Pöppelmann. However, in contrast to these competitors, this product uses exclusively cow dung which has the unique advantage listed above (especially points 5-9).
Market trends
Market trendshave in general emphasized the need to produce goods that are “organic”. The product is in line with this trend: not only is the product organic in nature, the entire production system guarantees the traceability of the end product, ranging from collection, process, production through to marketing.
Potential clients
Potential clients includehousehold gardeners, forest plant nurseries, producers of ornamental and / or horticultural plants, garden centers, greenhouses, florists, organic producers, gardening associations and training centers.
The price and marketing strategy
The strategytaken in this project is a focus on product differentiation which emphasizes product quality and exclusive use of organic compounds. This will distinguish it from competitors and assure price inelasticity. Differentiation will imply a renewed focus by the team on activities such as research, product design, use of quality materials andgood customer service.
Based on the team’s initial market analysis, the estimates of production costs and profit margins, as well as on the pricing strategy of competitors, the following prices are conceivable for this product:
5 liter pot: 0.4 € / 32 alveoli pot: 1.20 € / 150 alveoli pot: 1.8 €
The promotion of the product will be undertaken:
- using 2.0 (website, blog and social networks): this will provide the opportunity to increase brand awareness, link and interact with potential customers, build a better reputation for the online business, and use it as a platform marketing campaign.
- Active support in lectures, exhibitions, conferences, symposia related to our target market.
The distribution channel is an interactive system that involves manufacturers, dealers and consumers.
Three types of channels are envisioned:
- Direct Channel: from manufacturer to consumer (e.g. tree planting nurseries)
- Indirect Channel:from the manufacturer to a wholesaler or retailer and then to the final consumer (e.g.center for horticultural products)
- Sales over the internet
Production
The production of the pots is a multi-stage procedure:
1. Raw material has to be gained and treated. For this purpose, a corresponding tank for the raw slurry must be installed.
2. From this tank the slurry passes to a pump centrifuge shredder that will facilitate the homogenization of the slurry.
3. After grinding, the slurry passes to the digester in which an anaerobic chemical reaction takes place.
4. From the digester, the material must go back to a "screw press", which removes excess water.
5. Inorganic fertilizer obtained from the “screw press” is mixed with pulp and natural wax in an industrial mixer. The result is a mouldable product with greater rigidity to maintain the desired container form.
6. The paste obtained passes through a hand press which produces the molds of the pots.
7. The last step before having the product ready for packaging is the drying of the molds.
In general, the product has the following composition:
- Solid residue
-Recycled cellulose supplements
- Bee wax or vegetable wax .
The production volume is based on two considerations: First, the volume of production will beinfluenced by market demand. Second, sales must be sufficient in order to guarantee a minimum return on investments. The estimated production volume is estimated to beapproximately 300 kg per day, i.e. sales of approximately 90 tons per year.
Concluding comment
This product embodies current and future consumer and societal preferences; most notably it fosters environmental sustainability, provides a natural plant nutrient, and, importantly, supports local rural development. The next step in the realisation of this project is the acquisition of an investment partners combined with the support of a research laboratory. The project team is confident that this next step can be implemented within the next few months.