www.compostnetwork.info josef barth, ecn and informa, germany "using and marketing compost:...

www.compostnetwork.info

Josef Barth, ECN and INFORMA, Germany

"Using and Marketing Compost: Strategies and Trends"


"Compost Marketing is Based on Local Confidence"

How to create confidence of customers:

• Competent staff and adviser (with green thumb)

• Brown nose marketing (customers must smell compost)

• Standardised and quality assured products

• Based on clean products from separate collection

• Trustworthy recommendations for compost use

• Marketing like the peat and bark industry


Expectations of Compost Users

94 % of the commercialcompost userswant to have:

A uniform, high quality product that is independently monitored and accompanied by product use specifications

=> Quality assurance for compost production


Quality Assurance and Labels for Compost and Digestion Residues

UK

QAS Monitoring in total:

620 plants with capacity of9 million tons composting

and 2 million tons digestion

QAS Monitoring in total:

620 plants with capacity of9 million tons composting

and 2 million tons digestion


Quality Assurance and Marketing

= compost with defined product properties is marketable on a large scale


EU Market Shares of compost Sales and Market size

[in %] 1998/99

Au- stria

Bel- gium

Ger- many

Den- mark

Nether- lands

Italy

Market- size

Landscaping 30 24 19 30 30 Large

Landfill + Restoration

5 5

25 13 - Small

Agriculture + Special culture

351) 5 43 10 40 20 Very big

Horticulture 5 6 5 3 - Medium

Earth works 5 33 10 - - Medium

Hobby gardens 20 18 14 48 20 50

Large

Export 9 - - - Very small

Miscellaneous - 3 7 10

Good EU Average


Main Markets:No. 1: Agriculture

• Standard qualities, often fresh compost (D) or digestion residuals (D/SWE)

• No compost = official recommendation

• Individual farmers can be convinced


Signs of a Future Approach?

Value of compost for soil quality and fertility increasesin agriculture – here example of Italy :

• Region Emilia Romagna pays 220 A$/ha to use compost and promote a build-up of carbon in depleted soils

• Region Piemonte pays 290 A$ € /ha to use up to 25 tonnes dry matter/ha in depleted soils over a 5 years’ time frame on arable land


Main Markets:No. 2: Landscaping

• High quality product for e.g. potting soils, growing media

• Product development is necessary in accordance with end-user requirements

• Solutions are required, not only compost

• Strong competition with peat and bark based products


Main Markets:No. 3: Private Gardens

• Standard qualities and specialproducts

• Large target group (= the Public)

• Important for compost image

• Expensive public relation

• Expensive packaging and distribution

• BUT! Compost is supplied to raw material suppliers


Main Markets:No. 3: Private / Hobby Gardens

Examples for cost reduction in sales to private customers

No work – no money - no dirt

Self service with multiway bin


Main Markets: No. 4: Reclamation outlet

• Till now:• very big outlet for compost

• for lower qualities too (landfill covers)

• But for the future as a reaction of

the "compost landfilling":• => compost according to the needs

= poor soils (limitation of K an P nutrients)


EU Quality Ranges and Sales Prices for Compost

Standard qualities

Additional specifications

High quality compost

Greenhouses EUR 20-40

Sports turf

EUR 15-40

Landscaping

EUR 10-20 Top soil mix EUR 10-15

Nurseries EUR 15-35

Hobby . gardens EUR 5-20

Landfill cover EUR 0-4

Wine and fruit EUR 2-4

Organic farms EUR 2-6

Agriculture EUR 0-4

High price market Low price market

Greenhouses30 – 70 A$

Quality composts

Sports turf25 – 70 A$

Top soil mix15 - 25 A$

Hobbygardens7 - 30 A$

Landscaping25 - 40 A$Nurseries

25 - 60 A$

Org. farms3 - 10 A$

Landfill cover0 - 6 A$

Agriculture?0 - 6 A$

Wine + fruit3 - 6 A$


Two Marketing Trendsfor Compost

Little or no marketing for high volume markets that require only standard product quality, such as agriculture

► Organic waste treatment plant

Specialised marketing for high quality compost products supplied to high value markets e.g. growing media- large range of value added products- specialised, tailor-made mixtures

► Humus and soil production plant► SMS points (Saturday Morning Service)

or


Large Range of Compost Products

Provide a large range of different compost / bark products

Bagged for residents Bulk for commercial clients


SMS = Saturday Morning Service

SMS at sites provides everything what gardeners need on a Saturday morning e.g. compost, bark, sand, stones, gravel

Bulk supply Drop-off area for garden organics Compost super market


Recommandations and Specifications for Use

Basic tool to develop compost markets if properly done. In co-operation with end-user organisations!


Marketingwith posters

Blühende KaffeefilterBlooming Coffee Filters

creates benefit

Our soilTasty Green Cuttings

creates benefit

Our soilSpace forlogo & address


Marketing: Advertisement

T h e P o w e r o f C o m p o s t

Combined advertisement by several producers/plants

The more healthy the soil, the better the harvest


Professional Marketing - Competitive to Peat/Bark Industry

FLORATOP compost products presentation in a supermarket chain. Return of up to 70 Euro/cbm!!!!


Marketing lessons learnt

It should comprise:

• Market research and analysis of the regional market

• Establishment of a market profile, regionally modified

• Development of various product types and qualities

• Sales activities and sales promotion

• Information and advice regarding product use

• Public relations work to raise awareness and image

► This can't be supplied by each individual plant Support and co-operation is required!

► Marketing must be competitive with peat/bark


Producers Co-operative VKN

Transport distances up to 50 km

Advantages of Central VKN Office

1. Cost savings by bundling of activities for

- Application advice

- Acquisition of customers

- Purchase and sales

- Production control

- Authority contracts

2. Uniformity of products and prices

3. Common PR and advertisement

3 Bio- + 6 Green waste plants - 100 x 150 km area 40.000 t of compost - 70 % to agriculture,

20 % for landscaping, 10 % for residential gardens


Conclusions of European Experiences

• Compost can be marketed on a large scale, if

• end-user needs are met,

• adequate quality assurance is provided

• local or regional marketing aspects are utilised,

• similar product development and marketing efforts are undertaken as is the case in the peat and bark industry

• and co-operations are realised.


It is never too early tostart with compost marketing

Thank you!

www.compostnetwork.info josef barth, ecn and informa, germany "using and marketing compost:...

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