Marketing Compost (EAWAG) - The Water, Sanitation and Hygiene

Farmers’ willingness but inability to pay in Bangladesh
A market assessment in Bangladesh revealed that organic farmers, who
require regular compost supplies for their land, are one of the largest potential
markets for compost. Many farmers are keen to switch to organic
methods because of the premium prices fetched by organically grown produce.
They also face health problems associated with the use of chemical
fertilisers and spiralling costs, as the quality of their land deteriorates and
requires more chemical inputs year after year.
During the first year, a farmer switches to organic farming and requires
a very large quantity of compost to improve soil quality. However, this
first year can prove more expensive than buying chemical fertilisers for a
whole year. Despite savings for subsequent years when less compost is
required as the condition of the soil improves, this first year can prove too
great a barrier for many farmers. It is a major disincentive to the adoption
of organic practices in Bangladesh.
Ali, 2004
Farmers’ willingness and ability to pay in Nepal
The NGO ENPHO conducted a market survey among farmers to evaluate
their willingness to pay for compost. During a group discussion, the farmers
expressed their willingness to pay up to 4–5 NRs/ kg for compost. A
comparison with a previous study (2004) revealed contradicting results at
first glance. Here, farmers were willing to pay 0.5 NRs/kg for compost –
a price far below the current production costs. However, these farmers
also stated that they buy raw material for their own compost production
at 1.2 NRs/kg. Accounting for a 60 % volume loss during composting and
production costs, these farmers pay up to 4 NRs/kg for their own compost.
Consequently, effective promotion could turn this ability to pay into willingness
to pay.
Frömelt, 2007
Marketing Compost—Market assessment 47