Biofertilizer Production
Biofertilizer Production
Business Model Description
Produce biofertilizers based on living micro-organisms, such as phosphate solubilizing bacteria, to be used in seed, root and soil treatment as local agri-inputs.
Expected Impact
Advance sustainable agricultural practices with greater yields and lower negative impacts on the environment and human health.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Mauritius: Countrywide
- Mauritius: Rodrigues
- Mauritius: Savanne
- Mauritius: Grand Port
Sector Classification
Food and Beverage
Development need
Mauritius' agro-industry mainly relies on sugarcane and tuna production (1, 26). Regarding climate change threats on food security and SDG 2, as well as environmental degradation, diversifying the agricultural production is key (25, 1). Thus, whole agro-industry value-chain should be re-envisioned through the promotion of sustainable, local production and consumption (1, 2).
Policy priority
Through its Strategic Plan 2016-2020, the Ministry of Agro Industry and Food Security aims to redirect the agricultural and agro-industry towards an efficient and profitable sector and rendering it more sustainable (3). The Government Programme 2020-2024 supports a cane industry reform, encouraging the shift to modern harvesting practices (6).
Gender inequalities and marginalization issues
Overall, 50% of agricultural production is estimated to come from the corporate sector (2), when small-scale, family exploitations constitute the majority of farmers. Yet, they only represent 17% of the total agricultural land while 83% of the lands are exploited by big companies, which are often active in the cane industry (1).
Investment opportunities introduction
Several markets offer untapped export potential, such as China, Indonesia, Japan, Brazil or the Philippines, including for agricultural and agro-processed products (3). The tourism industry also presents some local untapped potential, especially for agro-processed food (2).
Key bottlenecks introduction
There is a lack of norms and enforcement in the agricultural sector, inadequate investment in research and lack of preparedness to face climate change impacts (2). Mauritius also has a strong dominance of the sugarcane industry in the sector, increasing competition for land to produce other crops and a lack of appropriate storage facilities (e.g. cold storage) (1, 2).
Food and Agriculture
Development need
Developing sustainable agriculture and fishing practices is key to address import-dependency, price fluctuations, pressure on stocks and enhance small scale farmers' resilience (2). Considering the sector's GHG emissions and the high pesticides residues on soils and locally produced agricultural products, sustainability and innovation principles are needed in the sector (1, 4).
Policy priority
The 2019 Voluntary National Review and Strategic Plan 2016-2020 include improving national food security through sustainable agriculture, bio-farming practices, sustainable fisheries and aquaculture (2, 27). The Government Programme 2020-2024 and the Ministry of Blue Economy's mission statement entail the industrialization of fisheries to render Mauritius a seafood hub (6, 36).
Gender inequalities and marginalization issues
In 2018, the gender pay gap in the primary industry, which includes agriculture and fisheries sector, was 43% (37). The female employment rate in the fisheries industry was 4%, while the female employment rate in the aquaculture sector was 18% (26).
Investment opportunities introduction
In 2019, the export of fish and fish products generated USD 342.6 million, contributing 19% of Mauritius exports and the fish sector reached USD 810 million turnover in 2018 (36, 27). 3.4% of GDP was contributed by the agricultural sector in 2013, and the sector is promoted by various incentives and schemes (2, 27).
Key bottlenecks introduction
As an island, agricultural space is limited and agricultural development may interfere with other land use options (38). High cost of labor and agricultural inputs, unfavourable agronomic conditions, aging farming community and unfavourable environment for aquaculture development are decreasing Mauritius' competitiveness compared to neighboring islands (2).
Agricultural Products
Pipeline Opportunity
Biofertilizer Production
Produce biofertilizers based on living micro-organisms, such as phosphate solubilizing bacteria, to be used in seed, root and soil treatment as local agri-inputs.
Business Case
Market Size and Environment
> USD 1 billion
10% - 15%
Mauritius experienced a 22.3% increase of pesticides and fertilizers users in the past three years
Globally, the use of conventional fertilizers reached 198.2 million tons of nutrients in 2020-2021. This rate is expected to grow at around 1% per year, reaching 208 million tons in 2025-2026 (9).
From 2016, the bio-fertilizer market globally is expected to grow at a CAGR of 14.08%, and reach USD 2,305 million by 2022 (19).
Mauritius is one of the biggest pesticides and fertilizers users, with 3,418 kg/km2 of croplands, representing a 22.3% increase in the past three years (15).
Indicative Return
EBITDA margin of 10%
A 600 tons per annum biofertilizers and pesticides manufacturing plant in India indicates an EBITDA margin of 10% (34).
Investment Timeframe
Short Term (0–5 years)
A 600 tons per annum biofertilizers and pesticides manufacturing plant in India indicates an investment timeframe of 3.4 years (34).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - High Level of Competition
Impact Case
Sustainable Development Need
Agriculture contributes to one third of climate change in Mauritius and conventional fertilizers represent the majority of nitrous oxide (N2O) emissions. Agricultural sector and the use of chemicals inflict harm on soil, underground waters and lagoons (2, 15).
Mauritius' agricultural production may decrease by 20-30% in the medium- to long-term due to adverse climatic events, associated supply shocks, and the foreseen 13% water shortage by 2030 (2, 20).
Mauritius imports more than 50,000 tons of fertilizers annually. Imported chemical fertilizers are a huge financial burden for Mauritian farmers (11, 35).
Gender & Marginalisation
Small-holder farmers’ defining role in food security is undermined by climate change and limited access to resources. In 2014, 18,260 family farmers had an average surface of 0.62 ha, covering 17% of the agrarian lands in Mauritius, compared to 90 non-family farms’ average surface of 594 ha (1, 16)
Women are the primary victims of cancers, especially breast cancer, which causes are known to be correlated to chemicals used in pesticides and fertilizers (11, 15).
Expected Development Outcome
Biofertilizer production provides access to alternative to chemical fertilizers, which improves soil microbial community diversity and health, enabling its regeneration while bringing the necessary nutrients to enhance plants growth (10).
The use of natural inputs like biofertilizers and compost can enhance yields by 10-30% (10, 16), significantly increasing farmers' revenue, total agricultural output as well as industry’s contribution to GDP.
Biofertilizer production enables a reduction of waste, especially through the use of organic waste (12). In 2030, Mauritius seeks to redirect 70% of waste from landfill through composting, biogas and waste-to-energy facilities (13).
Gender & Marginalisation
Increasing yields and enhancing cost efficiency, biofertilizers increase the resilience of farmers, especially the most vulnerable, including small-scale, family-owned and subsistence-level farmers, and contribute to higher living standards and greater food security (16).
Biofertilizers reduce the use of chemicals partially responsible for certain types of cancers, thus improving public health especially for women (16, 15).
Primary SDGs addressed
2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)
2.3.2 Average income of small-scale food producers, by sex and indigenous status
2.4.1 Proportion of agricultural area under productive and sustainable agriculture
24.2% of adults (24.1% for female and 20.7% for male) (2019) (18).
N/A
In 2018, areas grown organically is 3 hectares in Mauritius (17).
N/A
N/A
Objective to reach 50% of organic farming by 2030 (24).
8.5.2 Unemployment rate, by sex, age and persons with disabilities
6.3% (9.7% for female and 4.1% for male) (2019) (18).
N/A
15.3.1 Proportion of land that is degraded over total land area
27% (2015) (18).
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
If not used appropriately, biofertilizers may result in lower yields than with conventional fertilizers, especially in the short-term.
If the transition from conventional fertilizers to biofertilizers is not managed carefully, the introduction of new products may disrupt extensive value chains.
Impact Risks
If biofertilizers are not available at affordable prices compared to conventional ones, resource-constrained farmers, especially those operating on a small scale, may not afford the product.
If poorly stored or packed, biofertilizers may be compromised and not result in the expected positive impacts on people and the planet.
Impact Classification
What
Biofertilizer production supports the development of sustainable agricultural practices, with greater yields, and decreases negative impacts on the environment and human health.
Risk
Biofertilizer storage conditions and affordability compared to imported chemical fertilizers are concerns for delivering impact.
Contribution
In addition to agri-tech and smart agriculture developments, biofertilizers enhance food security, local bio- food products supply and overall health conditions of the country.
Impact Thesis
Advance sustainable agricultural practices with greater yields and lower negative impacts on the environment and human health.
Enabling Environment
Policy Environment
Strategic Plan For the Food Crop, Livestock and Forestry Sectors 2016-2020: Emphasizes the need for biotechnology to focus on the development of inputs based on renewable biological resources, such as biofertilizers, in order to support the sector's sustainability (2).
National Climate Change Adaptation Policy Framework, 2012: Highlights the need to adapt the agricultural practices to the changing environment and to move towards sustainable ones (20).
National Environmental Policy, 2007: Highlights the need to promote sustainable consumption and production patterns, including for the agricultural sector through the development of organic farming (21).
Health Sector Strategic Plan 2020-2024: Highlights the need to better monitor and reduce the use of pesticides for a more effective food safety system (30).
Financial Environment
Financial incentives: Locally produced biofertilizer purchases are provided with a 75% subsidy (41). The Compost Subsidy Scheme offers 30% vouchers for compost purchases to small planters for locally produced compost to promote use of organic inputs (2).
Fiscal incentives: The Bio-farming Scheme offers income tax holidays for 8 years, VAT exemption on production equipment and inputs, including biofertilizers, and loan facilities up to 90% of the project value with 1% interest rate (23).
Regulatory Environment
Use of Pesticide Act, 2018: Regulates, controls and monitors the importation and use of pesticides (22).
Chemical Fertilizers Control Act, 1980: Imposes the granting of a license to be authorized to sell chemical fertilizers, lays down certain conditions regarding their sale, and regulates the sampling and analysis of chemical fertilizers (28).
Chemical Control Fertilizers (Licensing) Regulations implements provisions of the Chemical Control Fertilizers Act, 1978 regarding the license necessary for the sale of chemicals (29).
Food Act, 1998: Regulates the control of food safety and hygiene, and determines the fitness of food and measures if food is considered fit for human consumption (31).
Marketplace Participants
Private Sector
Médine Group, Aadicon Biotechnologies Ltd, Mauritius Cooperative Agricultural Federation Ltd (MCAF).
Government
Ministry of Agro Industry and Food Security, Food and Agriculture Research and Extension Institute (FAREI), Agricultural Marketing Board (AMB), Mauritius Agricultural Certification Body, Ministry of Industrial Development, SMEs and Cooperatives, Dangerous Chemical Control Board.
Multilaterals
United Nations Food and Agriculture Organization (FAO), United Nations Development Programme (UNDP), European Union (EU), Global Environmental Facility (GEF).
Non-Profit
Mauritius Chamber of Agriculture, Resources and Nature Foundation (FORENA), Small Farmers Welfare Fund.
Target Locations
Mauritius: Countrywide
Mauritius: Rodrigues
Mauritius: Savanne
Mauritius: Grand Port
References
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