Organic Fertilizers: An Agroecological and Commercial Bet On Smallholders in the Sumapaz Region

Abstract

The feasibility of an agroecological project is supported, among other factors, by the cost-benefit relationship, which tends to shift profitability paradigms on organic fertilizers within the context of long-term finances. For this purpose, the objective of this paper is to carry out a financial study to market organic fertilizers (compost and vermicompost) in the Sumapaz region. An initial analysis of the production zones is conducted, starting with the qualification of 11 farms with livestock and agricultural production obtained through a stratified random sampling. Later on, this is translated into a financial analysis of the cost-benefit ratio in the marketing and agricultural use of organic fertilizers. In order to develop the project, four stages are designed: A description of the operating cost performance of the fertilizer production process; project’s initial investment; projected financial statements; and cost-benefit ratio analysis of organic fertilizer's marketing and agricultural use. Finally, the results of this study will show the profitability. Through a Net Present Value of COP $442.067.710 (USD $110,000), will be obtained an Internal Rate of Return of 136% and a cost-benefit ratio of 11.58, which represent economic and environmental benefit compared to agrochemical inputs, through a workable system for small holders.