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"Bone Fertilizer Business": How To Get Started

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The agricultural industry has often been overlooked especially by younger entrepreneurs. Although agriculture is seemingly not glamorous, the industry offers a lot of viable business opportunities that promise not only high earning potentials but also a sustainable business both financially and environmentally.

Today, we will be discussing another opportunity in the agriculture industry: dry bones fertilizer. Bones are often thrown away as waste by restaurants, butcheries, hotels, and even households, and you can use it as a cheap material to make fertilizers with a high-profit margin potential.

Starting this business will require a relatively low startup investment, as well as low skills and experience requirement. With the low entry barrier of this business, this can be an interesting opportunity for anyone.

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Interested to start this business? Here are a few things to help get you started:

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1. The Process
Dry bones are piled inside a 5' deep pit on top of burning charcoal or woods. The bones are burnt until they are brittle and spongy, and then removed and crushed with a mortar or similar tools.

A very simple process requiring very simple tools, the fertilizer is ready to be packed.

2. Startup Investment
You can start this business at home to eliminate the need to rent a space. Necessary equipment will be axes, wood splitting machine, mortar, basic digging equipment like spades and hoes which are relatively easy to acquire. You can start with as low as $5,000

You might also need a packaging tool and a delivery vehicle depending on your scale of operations.

3. License and Permit
Depending on your location, you might be required to apply for a zoning permit before you can engage in the business. Other licenses, permits, and insurance might also be required. Consult your local authority to get a better information regarding the legal requirements for your business.

4. Marketing
Your main target market is farmers, and you can invest on a small research to develop a fact sheet of how using your fertilizer can be beneficial to increase yield, efficiency, etc.

Join local farmers community to offer your products, and consider giving out free samples.

5. Maintaining Cost
Cost efficiency will be a very important factor for this business, and you should plan and build your business with the focus of efficiency.

As your production capacity grows, generally you can reduce your expenses. Also, manage your labor costs well, as this business can be labor heavy especially on a larger scale.

Do enough marketing research so you can determine a pricing strategy that is well-balanced with your operational expenses and production costs.

Earning Potential

A pound of dry bone fertilizer can be sold for $0.25. By producing 200 lbs of packaged fertilizer a day, you can make $1,500 a month, or $18,000 a year. As your production capacity grow, so will your earning potential. For example, increasing your production to 500 lbs a day can increase your annual earning to $45,000.

The key to the success of this business will be maintaining your cost efficiency and the quality of your product.