Model 7: Bio-based Fertilizer for Increased Soil Quality
This cluster is based on four enterprises that specialize in producing compost, biofertilizers, soil improvement products from waste as well as providing know-how, technology and infrastructure for this production.
Value proposition
The value offered to customers is biodegradable waste and fertilizers for improving soil quality and according to the requirements of the customers. Enterprises offer a mix of products (compost, fertilisers, and soil and crop care products) and related services in form of consultations, training, and technology. Products and services help to deliver more efficient, environmentally friendly and profitable ways for using bio-waste.
Infrastructure
The key partnerships are from private sector (raw material suppliers, waste collectors, farmers). Public sector regulates the waste use. Technology providers and international and local industrial partners as well as universities and research centres impact the product development and distribution. These partners, both from industry and academia are global players within recycling, waste processing, forestry and agriculture. Products are developed and evaluated in cooperation with research organisations.
Key activities are producing and selling products (composts and fertilisers) and offering services (garden and park green mass waste collection, waste transport, landfill diversion, mobile brush chipping), consultancy and training. Knowledge development and network for sourcing and distribution are important also.
The tangible key resources are raw material, equipment and technology for waste collection and production and skilled staff. Intangible key resources include the patents, market, and technical and innovation know-how, networks for biomass collection, R&D and marketing.
Keyword ratings for enterprises in Bio-based Fertilizer for Increased Soil Quality Business Model type
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Customer interface
The enterprises established their customer relationships mostly through personal direct (contractual) sales. Production of products has to meet the needs of specific customers. Customers using the collection service might also use the products. The main focus was on B2C and B2B sales and customer segments included farmers, gardeners, florists, garden centres and public entities. The channels through which customers are reached were enterprise owned channels – sales force using both physical store as well as online sales.
Business Model Canvas for Bio-based Fertilizer for Increased Soil Quality Business Model type
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Key partners Farmers Waste collectors Technology providers Industry R&D organizations Regulatory authorities |
Key activities Production of composts, fertilizers and other products Waste collection and transportation Consultancy and training activities R&D Distribution Sales of compost, fertilizers and other soil products |
Value propositions Provision of biodegradable waste and fertilizers from bio-waste |
Customer relationships Personal direct sales |
Customer segments B2C, B2B Farmers Tree nurseries Gardeners Florists Garden centers |
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Key resources Raw material Equipment and technology Technical know-how Patents Networks Staff |
Channels Sales force Online selling Wholesale network Retail network |
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Cost structure Production costs Equipment and technology costs Maintenance costs Distribution costs R&D costs Labor costs |
Revenue streams Sales of compost and fertilizers Sales of services (biomass collection, etc.) Training, consultancy fees |
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Financial viability
The cost structure includes operating costs of the machinery, production costs, maintenance of infrastructure and distribution, personnel costs and R&D.
The revenue stream comes from selling the different products to the various market segments – organic fertilizers, soil additives, as well as biorefinery packages, etc., and waste utilization services and consultancy and training fees.
Socio-economic aspects and novelty
The activities of companies meet the demands of society for reducing waste and more environmentally friendly production. Utilization of biodegradable waste from landscaping and plant growing as a valuable local resource provides sustainable jobs for local community, additional income streams and cost savings from waste handling for local producers. Waste is collected from customers, who do not have the opportunity to recycle it themselves. Replacing mineral fertilizers with organic fertilizers has a positive effect on environment and health. Besides waste reduction, the environmental benefits include soil quality improvement, reduction of air and water pollution, higher biodiversity. This Business Model is transferable, but requires specific technical knowledge for replication.
The novelty of companies is at an average level as this type included both companies that were research intensive actively developing new waste management and processing approaches and variety of soil amendment products as well as smaller companies focusing mainly on using waste for compost.
Other related Business Models
Archetype of waste recycling includes both Business Models of processing municipal and agricultural waste and residues into bioenergy as well as Business Models based on utilizing the waste for new product offerings. The Business Model innovation lies in finding new value offering from previously discarded waste and establishing new activities, finding new relationships, resources, markets, etc. for it. The model of recycling of waste into bioenergy is easily transferable. Reuse of waste extends the use of already collected bioresources, contributes to better waste management and reduction of environmental impacts, while offering new income streams and reducing costs.
Model 9: Sustainable and Novel Bio-based Products from Food Waste and Biomass
Model 12: Utilization of Municipal Waste and Sewage