ESTABLISHING A VERMICOMPOSTING

PROGRAM IN GONZAGA, CAGAYAN

Joshua Wayland, PCV

Bennyfred G. Sandi, MENRO
LGU Gonzaga
BACKGROUND- GONZAGA, CAGAYAN

 First Class Municipality with a

population of 34,360

 25 Barangays, including 11 Coastal

Barangays

 First municipality in Cagayan to

approve a Coastal Resource
Management Plan

 First municipality in Region II to open a

Sanitary Landfill for the disposal of
solid waste
SUMMARY
 Vermicomposting: The use of earth worms to break
down organic wastes and produce nutrient-rich compost
or ‘worm casings’
 Project Description: Five vermicomposting facilities
will be constructed and managed to process the
biodegradable wastes from the municipal Public Market
and other sources
 Total Project Cost: Php1,490,00
 Funding source: grant, local counterpart funding
DEMONSTRATED NEED
 Solid Waste Management
 No safe, effective means of disposing of biodegradable
wastes in urban area
 Poverty Alleviation
 Municipal-wide survey demonstrated that high input costs
are the leading problem for farmers, and pose a serious
barrier to entry
 Alternative Livelihood
 Capture fisheries under pressure in coastal areas due to
lack of secondary income sources
 PROJECT MECHANICS:
THE VERMICOMPOSTING FACILITY

Biodegradable
Finished
Waste
Compost
8 meters

Migration
of worms

10 meters
RATE OF COMPOSTING
Months in Biomass of No. of Rate of Overall Rate of Total Compost
Operation worms Worms Composting Composting Produced
(1 facility) (1 facility) (kilos/day) (x5 facilities) (kilos/day)
0 50 kilos 100,000 25 125 62.5

3 100 kilos 200,000 50 250 125

6 200 kilos 400,000 100 500 250

9 400 kilos 800,000 200 1000 500

12 400 kilos 800,000 200 1000 500

18 400 kilos 800,000 200 1000 500

24 400 kilos 800,000 200 1000 500

36 400 kilos 800,000 200 1000 500

48 400 kilos 800,000 200 1000 500

TARGET MARKET
 There is a demonstrated existing market among rice and
vegetable farmers for organic alternatives to chemical
fertilizers
 New markets will be created through skills trainings
that will encourage organic gardening as an alternative
livelihood among fisherfolk
 High value liquid organic fertilizer, or compost ‘tea’
will be produced in addition to solid worm casings
 Excess worms may be marketed as breeder stock or as
feed supplement in aquaculture ventures
PROJECT COSTS- START UP COSTS

Item Cost per Unit No. of Units Total Cost

Shed w/ Worm Beds Php200,000 5 Php1,000,000

Shredder Machine Php180,000 1 Php180,000

Worm Breeding Stock Php1000 250 Php250,000

Equipment/Materials Php60,000 1 Php60,000

Total Php1,490,000
PROJECTED COSTS- OPERATIONAL COSTS

Item Cost per Unit No. of Units Total

Labor Php180/day 5 Php216,000/year

Transportation of Php50/day 1 Php17,500/year

biodegradable wastes
Transportation of finished Php50/day 1 Php17,500/year
fertilizer to market
Total Php251,000/year
PROJECTED CASH FLOW
 Selling price of fertilizer: Php200 per 50 kilo bag
 Pay Back Period: the cost of the project will be recouped during the fourth
year of operation
 The Internal Rate of Return for the project is 26%
 Note: These estimates do not consider potential markets for high value
liquid organic fertilizer, or excess worms
Year Cost Income Cash Flow

0 -Php1,500,000 Php0 -Php1,500,000

1 -Php251,000 Php337,500 Php86,500

2 -Php251,000 Php730,000 Php479,000

3 -Php251,000 Php730,000 Php479,000

4 -Php251,000 Php730,000 Php479,000

POTENTIAL RISKS
 Risk: Pests such as red ants  Solution: Keep facilities
prey on worms clean and well maintained

 Risk: Environmental  Solution: Regular monitoring

factors such as high of temperature, moisture, and
temperatures may kill other factors
worms
 Solution: Multiple potential
 Risk: Market for organic products, creation of new
fertilizer might become markets, and use of
non-viable in the future incentives
ADDITIONAL BENEFITS

 Improved efficiency of Ecological Solid Waste

Management Program
 Decreased price of inputs for farmers
 Access to alternative livelihoods for fishers
 Direct and indirect environmental benefits from
organic fertilizer
 Increases health and fertility of soil
 Decreases pollution and improves human health
 Mitigates climate change