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How To Start A Biofertilizer Manufacturing Business

Do you want to start a small-scale biofertilizer manufacturing business? If yes, you have landed at the right place. In this article, we will walk you through the steps to follow to launch a biofertilizer-making company with low investment.

Biofertilizer is a special type of fertilizer that contains living organisms. Generally, these are living microorganisms of bacterial, fungal, and algal origin. And every type of biofertilizer comes with carrier materials like peat, and lignite powder in such a way that they will have a sufficient shelf life.

Biofertilizer helps plants to absorb nutrients. Additionally, biofertilizers enhance the nutrient availability to crop plants by processes like fixing atmosphere N or dissolving P present in the soil. However, it doesn’t create any soil and water pollution like chemical fertilizers. Therefore, biofertilizers are essential items for organic farming and sustainable agriculture.

Is Biofertilizer Manufacturing Business Profitable?

Excessive application of agrochemicals on crops leads to soil contamination and other environmental hazards. Industry experts expect this to be a key market driver for the increasing demand for biofertilizers. In addition to being an eco-friendly option, the product also helps to maintain soil and crop health.

Global biofertilizer’s market share is fragmented with a large number of domestic companies focusing on regional markets. The Asia Pacific region, mainly India and China hold the major share in exporting biofertilizers to North America and Europe.

The low cost of these products as compared to their synthetic counterparts is expected to propel demand over the next seven years. However, lack of awareness among farmers particularly in emerging economies is the major potential challenge for industry growth.

Different Types Of Biofertilizers & Applications

There are different types of biofertilizers available in the market. Additionally, they all have different effects and applications. Nitrogen-fixing fertilizers are the most popular and hold 75% of global revenue. These are rhizobium, Azospirillum, Acetobacter, and Azotobacter which help to improve nitrogen content and the organic and microbial population of the soil.

Phosphate solubilizing bacteria holds the second position in world trade. Additionally, it accounts for 15% of global revenue.

The major application of biofertilizers is seed treatment globally. Seeds treated with biofertilizers help them sustain bacteria and virus attacks and also aid in increasing the yield.

Read: Top Biofertilizer Manufacturing Business Ideas

Soil treatment helps in increasing the fertility of the soil. Additionally, it improves the yields of the planted crop. There is an increased activity of rising fertile land for agricultural practices in various countries including China, India, Brazil, Italy, and the U.S. we can expect a positive impact of the increasing demand for biofertilizers on the market.

Who Can Start Biofertilizer Manufacturing Business?

This is one of the best business opportunities for biotechnology students. Additionally, individuals who have an educational background in microbiology can start this business. Furthermore, if you have experience working in a biofertilizer manufacturing unit, then also you can start this business.

Apart from these, if you have already a business in the fertilizer industry, then you can enhance your product line with biofertilizer. However, any individual can start this business with the proper manpower and infrastructure the business demands.

Here are the Steps to Start Start Biofertilizer Manufacturing Business

1. Craft A Business Plan

This is the most important step in starting this business. Do some market research. Try to identify the products that have the major demand in your locality. Additionally, try to find out new opportunities for biofertilizer applications.

First of all, craft a biofertilizer manufacturing business plan including an investment and marketing plan. Determine your business size. Identify what are the products you will produce. Who will be your target consumers? And how will you promote your product? Additionally, how much net profit you will be earning?

2. Source The Technology

You can source the manufacturing technology from reliable institutes. However, it is always better to procure the technology from the Govt. departments. Check your state laboratories. Additionally, you can also procure the technology from other states or countries.

3. Learn Biofertilizer Manufacturing Process

Generally, biofertilizer manufacturing includes three different steps. The first step is the selection of the suitable strain of the organism for which market demand is identified. Next, is mass multiplication. and the last step is mixing the culture with a carrier material and packing it.

4. Registration & Licensing

This business demands specific registration and licensing. First of all, determine the form of organization and register the company. Additionally, you will need to check the licensing and tax liabilities issues. These completely depend on the location where you are initiating the business. It is advisable to consult with a business expert.

5. Secure A Space

According to your business plan and size, you have to secure a space for the manufacturing operation. Additionally, you will need to have space for the office operation too. A small-scale factory that can produce one or two products, demands at least 1000 Sq Ft built-up area. You will need to accommodate the space for lab operation, manufacturing, packaging, and storage.

6. Establish The Factory & Laboratory

It is advisable to have a floor plan. Additionally, you will need to arrange water and electricity connections. You have to specify the space for a laboratory, carrier preparation and enrichment, sterilization, Inoculation, and quality control, maturation of culture, mixing, and packing, storage/ staff, etc.

7. Arrange Utilities

Normally, you will need to have three-phase electrical power. Depending upon the position of the power supply, you may need to have a diesel generator.

A Biofertilizer production unit requires water mainly for steam generation for sterilization of carrier, broth preparation, and cleaning of equipment. Accordingly, you can arrange for a well or borewell to meet the requirements.

Additionally, you will need to require a controlled air supply to fermenters, sterilization/cleaning operations, etc.

8. Plant & Machinery

According to the specific product, you have to arrange the machinery. It is advisable to procure the machine from reliable suppliers. Additionally, check the maintenance and warranty issues. Also, you can check the customer feedback of that company before placing the final order.

Here we put a list of basic requirements of machines.

  • Boiler/steam generator 1 big or 2 small to generate steam for sterilization
  • Autoclaves – Horizontal 1 For carrier sterilisation. Vertical 2-4 For smaller quantities and small containers.
  • Rotary shakers
  • Fermenters
  • Laminar airflow – workstation for inoculation purposes
  • BOD incubator for culture growth sterilization
  • Hot air oven for dry glassware
  • Air conditioner
  • Refrigerator
  • Microscope
  • Balances
  • Dispensers or Semi-automatic mixing machines with automatic injection systems
  • Sealing machine
  • Lab equipment for quality control and microbial works etc.
  • Manpower

After setting up the unit, you will need to hire quality manpower. It is advisable to set up a small HR department. Identify the position and craft the JD first. Then only start hiring. Keep only skilled and experienced employees. It is highly important for the new manufacturing business.

9. Raw Materials

The raw material list varies depending upon the product or products you want to produce. However, the quality of the finished biofertilizer highly depends on the quality of the raw materials. In addition, you have to arrange the packaging materials.

Therefore, procure quality raw materials from reliable suppliers. Additionally, you must ensure the regular supply of raw materials to your factory.

Related: How To Start Agrochemical Manufacturing Business

10. Promote Your Product

You must promote your products both offline and online. However, a local distribution channel is the best option for starting the business.

Additionally, you can sell the items from your own company website. And you can also sell the products from online marketplaces like Amazon and eBay.

Furthermore, you must do some sales promotion activity. Also, you can do some activities for increasing awareness and creating demand for the product. And in that case, farmer’s training is the best option to tap the agriculture market.

For long-term success in the biofertilizer manufacturing business, you must put extra emphasis on brand awareness and marketing.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.