Is organic fertilizer business profitable?

 Is the organic fertilizer business profitable? Yes, the organic fertilizer business is profitable, mainly due to the following factors:

1. Strong market demand: The global organic fertilizer market is enormous, driven by strong policies. The county-wide promotion project for the resource utilization of livestock and poultry manure covers over 800 major agricultural counties. The application rate of organic fertilizer in cash crops is increasing, with fruits, vegetables, tea, and medicinal herbs becoming the main consumers. The penetration rate of organic fertilizer in greenhouse vegetable cultivation is approaching 60%.

2. Strong policy support: More than 50 policies and regulations related to organic fertilizers were released globally between 2024 and 2025. China exempts the production and sale of organic fertilizers from value-added tax, and also provides subsidies for fertilizer equipment purchases (up to 30%), tax reductions, etc. Some regions offer subsidies based on output (e.g., up to 50 yuan/ton in Shenyang). The carbon trading mechanism is beginning to influence the industry landscape, and some companies have already gained additional revenue through carbon trading.

3. Controllable costs: The total investment for setting up a small organic fertilizer processing plant (annual output of approximately 5,000 tons) is approximately 600,000 to 1.5 million yuan, including costs for equipment, factory buildings, raw materials, and labor. Production costs are approximately 240-310 yuan/ton, while the market price for powdered organic fertilizer is about 600 yuan/ton, and for granular organic fertilizer, it's 800-1000 yuan/ton. Profits per ton can reach 200 yuan and 300 yuan respectively.

4. Broad Profit Margin: Based on a production capacity of 5000 tons, annual profits can reach 1 million-1.5 million yuan, with an investment payback period of approximately one year. Furthermore, with technological upgrades, the application of intelligent equipment and advanced processes in organic fertilizer produciotn lines can improve production efficiency, reduce costs, and further enhance profit margins.



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