Why should I start a composting business?

Composting is a great opportunity for new and existing business owners. From making an environmentally friendly product for the community, to adding an extra revenue stream to your business. There are many reasons to start a composting business.

But why should you start one? And what are the pros and cons of getting compost businesses off the ground? In this blog, we look at why starting a compost business is a good idea and what you should look out for when launching one.

What is compost?

Compost is made up of organic matter which is in the process of breaking down. It is full of all the things that plants and crops need to grow. Anything organic can be made into compost, including plant trimmings, manure, food scraps, wood, and even animal products or paper.

Composting processes can be divided into three types:

• Aerobic composting – Where oxygen from the air is added, allowing the matter to break down naturally. This type of composting needs to be turned and mixed up to allow air to flow through the compost pile.
• Anaerobic composting – This is where bacteria does all the breaking down instead. Airflow isn't as important for this type of composting.
• Vermicomposting – Uses worms to break down organic matter into compost. This kind of compost is full of nutrients, as the worms break down organic material into castings. These are full of plant food and are more easily taken up by plants.

What makes compost valuable & what is it used for?

Compost is mainly used as a powerful natural fertilizer to speed up plant growth. Since the composting process is a simple one, with low starting overhead costs, many people make their own compost at home. You can start by using yard trimmings and kitchen food scraps.

Farmers, landscapers, and local food producers have a huge demand for compost. Composting businesses can collect material used for composting by working with local businesses. Restaurants (food scraps), gardening businesses (plant materials), local residents (garden trimmings), and even farmers (manure) make lots of ‘feedstocks’ that can be used for compost. You can even sell the end product back to some of the businesses as finished compost.

Apart from the profit you could make, selling compost is a valuable community service. Compost businesses remove waste and turn it into a natural, organic fertilizer for people to use to improve their gardens and grow healthy food.

The pros and cons of composting

Starting a composting business is a great way to earn extra money. You don’t even need to invest a lot of money in the start-up. Before you start your business, there are some composting pros and cons. Let’s explore a couple of them:

Pros of starting a compost business

• Generating extra revenue – by starting a compost business as a side business. You might already grow plants and vegetables for your local farmer's markets - composting would be a great side business!
• Providing a “green” service to your community – this is a great way to give back to your community.
• Assisting in plant and food waste removal – this keeps food waste and other compostable things from landfill. It will also help keep your local area clean and tidy.
• Improving the local quality of the soil – by selling compost that is high-quality you can improve the quality of the food grown in it.
• Provide jobs - You might need help with your business as it grows, and be able to offer jobs to local residents.

Cons of starting a compost business

• Can be risky – Not all businesses will end up doing well. You should think about the market in your area - are there enough people to buy your compost? Is there enough compost feedstock near you to make compost? Check out our blog post on compost markets including supply & demand for more information!
• Could lead to complaints about the smell – Depending on your composting method, the process can be smelly, which might annoy local residents.
• You’ll need to handle transport and other logistics – This might mean renting or buying trucks to haul composting materials, equipment to mix and load the finished compost, and people to package it.
• Local regulations and laws – Depending on your region, local authorities may have strict laws around how, when, and where you may be permitted to run your composting business. Check out our blog post on composting permits and restrictions for more information.

How can I make money from compost & who will buy it?

Compost is a product that people almost always need. From growing food to decorating and landscaping their gardens - it’s in high demand.

There are many different customers you could sell your compost to:

• Hospitality industries – Hotels, bed and breakfasts, guest houses, and long-term rentals all depend on their gardens looking good.
• Landscapers – Garden services and landscaping services lay new gardens & they need lots of compost to help new yards settle in and take root.
• Homeowners – People who take pride in their home gardens are always looking for good quality, affordable compost.
• Farmers – From livestock to crop farmers, compost is always in high demand in the farming community.
• Golf Courses – With nine or eighteen holes to keep in perfect condition, golf courses use large amounts of compost to keep their fairways and greens in top condition.
• Schools & businesses – Companies and educational institutions require compost to keep their respective office gardens and sports fields green and healthy.

How much can I earn for my compost?

There is no fixed base price for selling compost. You can work out how much to charge depending on your cost of production and how much other businesses in your area are selling theirs for. Demand for compost is generally relatively high, though seasonal changes and competition may affect your prices. For more information on compost supply & demand check out our blog post!

Composting can be a profitable business, provided you’re using the right equipment. Investing in equipment can cut production times and make the whole process quicker and easier. Trommels or excavators are excellent options, and if you’re planning on growing your composting business into a large enterprise, you may even be able to take advantage of conveyors and larger excavators to help move materials.

Thinking of starting a composting business?

Starting a composting business and selling compost is an excellent way to earn additional revenue, especially if you already have access to the materials you need to make it.

Speak to us to find out more about the equipment for composting or how to finance machinery. At Machinery Partner, we're always here to help so if you are thinking of starting a compost business, get in contact today!