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fertilizer

Production of compost and biofertilizers from food waste

Photo by Shutterstock

Production of compost and biofertilizers from food waste

Compare IOA
Country
Paraguay
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Life on Land (SDG 15)

Business Model Description

Invest in the removal of raw materials (fruit and vegetable waste, bovine excrement) for the production of organic fertilizer and biofertilizers for agriculture. Within this model it is necessary to consider:> Alliances with municipal markets, food markets in order to remove organic waste (fruits and vegetables not suitable for sale)> Alliances with companies that raise livestock in order to remove animal excrement

Expected Impact

Increase the use of sustainable organic inputs and provide a means of living to rural population while benefiting the environment

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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Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Paraguay
Region
  • Paraguay: Asunción
  • Paraguay: Canindeyú
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Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
76% of the total area of ​​the country is used for agricultural activities. The agro-livestock sector is critical in Paraguay since, in 2010, this sector represented 28% of GDP (I).

Policy priority
The Ministry of Agriculture and Livestock made a Strategic Agrarian Framework in 2013. The objectives are, among others: strengthen the capacity of the agricultural sector and increase competitivity (II).

Gender inequalities and marginalization issues
Rural poverty disproportionately affects women and indigenous communities. Key factors contributing to poverty among family farmers include fluctuating prices, insufficient wages, low productivity, limited technology adoption, declining soil fertility, lack of access to financial services, among others (III).

Investment opportunities introduction
The opportunity to modernize family farming in Paraguay using more inclusive business models can accelerate poverty reduction, increase the productivity of the sector and help close inequality gaps (IV).

Key bottlenecks introduction
Paraguay faces infrastructure gaps that include high transport costs, limited connectivity, disparities in regional development, and health-related impacts (V).

Sub Sector

Food and Agriculture

Development need
76% of the total area of ​​the country is used for agricultural activities. The agro-livestock sector is critical in Paraguay since, in 2010, this sector represented 28% of GDP (I).

Policy priority
The Ministry of Agriculture and Livestock made a Strategic Agrarian Framework in 2013. The objectives are, among others: strengthen the capacity of the agricultural sector and increase competitivity (II).

Gender inequalities and marginalization issues
Rural poverty disproportionately affects women and indigenous communities. Key factors contributing to poverty among family farmers include fluctuating prices, insufficient wages, low productivity, limited technology adoption, declining soil fertility, lack of access to financial services, among others (III).

Investment opportunities introduction
The opportunity to modernize family farming in Paraguay using more inclusive business models can accelerate poverty reduction, increase the productivity of the sector and help close inequality gaps (IV).

Key bottlenecks introduction
Paraguay faces infrastructure gaps that include high transport costs, limited connectivity, disparities in regional development, and health-related impacts (V).

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Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Production of compost and biofertilizers from food waste

Business Model

Invest in the removal of raw materials (fruit and vegetable waste, bovine excrement) for the production of organic fertilizer and biofertilizers for agriculture. Within this model it is necessary to consider:> Alliances with municipal markets, food markets in order to remove organic waste (fruits and vegetables not suitable for sale)> Alliances with companies that raise livestock in order to remove animal excrement

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Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

According to the Central Bank of Paraguay (BCP), in the area of ​​fertilizers, in 2016, imports had a FOB value of 429,510,488 dollars (3).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

> 25%

A business plan for creating an organic fertilizer processing company from biodegradable waste in the municipality of Barrancabermeja, Santander, Colombia, in 2017, presented an IRR of 33.11% in an analysis period of 6 years (4).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

A business plan for the creation of an organic fertilizer processing company from biodegradable waste in the municipality of Barrancabermeja, Santander, in the year 2017, an investment payback period of approximately 4 years was calculated (4).

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Limited input supply of organic fertilizers
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Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

The northern supply is located in the central department, which mobilizes around 450,000 customers per month and generates more than 30 garbage containers monthly (5).

Around 120 families grow organic products in Canindeyú (2). > In Canindeyú, 60% of the economically active population is dedicated to the primary sector, many of which are small producers

Gender & Marginalisation

41.7% of the employed population in rural areas is dedicated to family farming. Half of the population employed in family farming is in a situation of poverty (49.4%), with a higher incidence among women (6).

Expected Development Outcome

Reduce the deterioration of the atmosphere due to greenhouse gases and the weakening of the ozone layer caused by poor waste management (7).

Reduce water and air pollution and improve solid waste management and delay the use of the maximum capacity of the sanitary landfills (7).

Promote production free of pesticides and sustainable agriculture

Gender & Marginalisation

Create new job opportunities for vulnerable rural population and women

Primary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.4.1 CO2 emission per unit of value added

Zero Hunger (SDG 2)
2 - Zero Hunger

2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size

Responsible Consumption and Production (SDG 12)
12 - Responsible Consumption and Production

12.5.1 National recycling rate, tons of material recycled

Secondary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action
Life on Land (SDG 15)
15 - Life on Land

Directly impacted stakeholders

People

Producers in the fruit value chain

Planet

The environment due to the reduction of greenhouse gases and the mitigation of climate change

Corporates

The farmers who will have a greater variety and better prices of organic inputs, the owners of perishable products collected from their facilities.

Indirectly impacted stakeholders

Public sector

Benefited by increased production, foreign currency, and food security

Outcome Risks

Noise pollution, in the event, that noisy machinery is used.

In the case of not having adequate hygiene in the production processes and/or storage of final products, they can be sources of bacteria, viruses, etc., and affect the population.

Air pollution due to bad odors generated by the processing plant.

Impact Risks

Execution risks: Depending on the composition of the fertilizers and the particularities of the crop, organic fertilizers may not offer the same control and flexibility as chemical fertilizers (8).

Stakeholders risk: A change in cultivation methodology is required, which first requires a change of culture of acceptance towards natural products (8).

Drop off: The price factor of organic products can be a limiting factor for scalability (9).

External risks: The high competitiveness of chemical products (9).

Unexpected risks: There could be reductions in these inputs' effectiveness if an adequate formulation is not carried out (8).

Impact Classification

B—Benefit Stakeholders

What

The result is likely to be positive because it has a direct impact on the environment, it promotes the circular economy and the practices of a sustainable agriculture

Who

The environment that is neglected due to the high level of food waste and also due to the high use of chemical products in the plantations

Risk

The model is based on the use of products whose main components are generally discarded in industries and can be easily obtained

Impact Thesis

Increase the use of sustainable organic inputs and provide a means of living to rural population while benefiting the environment

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Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

National Development Plan 2030 - Its goals include, among others, strengthening the Paraguayan position among the world's leading food exporters (10).

Ministry of Agriculture and Livestock (MAG) - at Expo 2019, the MAG started with an interesting dissertation on the "Situation and Potentials of Organic Production in Paraguay (11)".

National Strategy for the Promotion of Organic and Agroecological Production of Paraguay, during 2007/2008. This seeks to promote the development of organic and agroecological production in the country (12).

Financial Environment

Exclusive credit for financing the national program of prioritized items for agriculture of the Ministry of Agriculture and Livestock (MAG). For investments directly related to productive activity, operating and marketing expenses at a rate of 10% per year on balance (15).

Credit Agrícola de Habilitación (CAH) is a public entity that provides financial services and promotes technical assistance and marketing through alliances with the public and private sectors (16).

The Development Finance Agency (AFD) - PROCRECER - Financing for investment projects. It finances projects such as - Rural, industrial, commercial, and service development projects (17).

Regulatory Environment

Paraguayan Organic Production Standard. Production and marketing chain (13).

Resolution 670/13. Establishing and regulating the participatory guarantee system in organic production of plant origin and its processes within the framework of Law No. 3.481/08 on the Promotion and Control of Organic Production and its regulations (13).

Resolution 250/13 "Establishing registration and maintenance forms for operators and certification companies involved in the organic production system (14).

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Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

Organitec (Paraguay), Bio Tech Organic (Paraguay), Chemtec (Paraguay), Tierra Buena (Paraguay)

Government

Ministry of Agriculture and Livestock (MAG), Ministry of Environment and Sustainable Development (MADES), SENAVE

Multilaterals

IDB, Development Bank of Latin America (CAF), World Bank (WB)

Non-Profit

Moises Bertoni Foundation, WWF, Avina Foundation, Organic Paraguay Association, Alter Vida.

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Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map

Paraguay: Asunción

The supply of Asunción, it is estimated that 15 million kilograms of fruit and vegetable products enter this market per month and generate between 30 to 40 tons of waste per day (1).

Paraguay: Canindeyú

Around 120 families grow organic products in Canindeyú (2).
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References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.
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