Production and Distribution of Organic Fertilizers

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Production and Distribution of Organic Fertilizers
Production and Distribution of Organic Fertilizers
From Animal Byproducts and Waste
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Invest in B2B / B2C models engaged in the manufacturing and distribution of sustainable agricultural products, specifically fertilizers produced from livestock byproducts that are usually discarded as waste. Examples of companies active in this space are:

Founded in 2014, Monpellets is producing ecological and environmentally friendly premium quality organic fertilizer (Pellets) from 100 percent Mongolian sheep wool since 2018. The company has the capacity to produce 2500 tons of high-performing fertilizers a year and is currently exporting to the EU and Australia. The production uses minimal water and the product reduces water usage in farming by 25 percent.

Tumen Shuvuut JSC is engaged in the provision of egg production, chicken meat and organic fertilizer. In 2020, the company started producing organic fertilizers with 4 percent nitrogen using chicken manure. The factory capacity is 4000 tons a year.

"PromonTrade" LLC was established in 2010 and currently owns several factories that produce oil, fertilizer, and bone meal from waste animal bones from slaughterhouses. The fertilizer factory has the capacity to produce 4900 tons of organic fertilizer using Italian technology. Factories are standardized with ISO 9001:2015.

Expected Impact

Increase the use of sustainable organic inputs and provide a means of living to the rural population while benefiting the environment.

How is this information gathered?
Updated: 8 Jul, 2023 Date of Production: 9 Jul, 2023
Mongolia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in GPM)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 500,000 - USD 1 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Life on Land (SDG 15) Good health and well-being (SDG 3) Gender Equality (SDG 5)

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Sector Sources
  • (1) Food and Agriculture Organization in Mongolia (FAO). (2020). FAO in Mongolia Programmes in Projects. Retrieved on March 19, 2023. https://www.fao.org/mongolia/programmes-and-projects/fr/ (2) Government of Mongolia, (2020). Vision 2050; Government of Mongolia (2020). Mongolia's five-year development plan guidelines 2021-2025 (3) United Nations Mongolia. (2022). The United Nations Sustainable Development Cooperation Framework (UNSDCF 2023-2027) https://mongolia.un.org/sites/default/files/2022-07/SF%20Eng%20last%20version7-14.pdf (4) World Bank. (2020). Mongolia’s 2020 Poverty Rate Estimated at 27.8 Percent. Retrieved on March 20, 2023. https://www.worldbank.org/en/news/press-release/2021/12/30/mongolia-s-2020-poverty-rate-estimated-at-27-8-percent (5) Asian Development Bank (ADB). (2020). Vegetable Production and Value Chains in Mongolia (6) World Bank. (2021). Covid Survey https://www.worldbank.org/en/country/mongolia/brief/monitoring-covid-19-impacts-on-households-in-mongolia (7) Government of Mongolia. (2022). National Movement on Ensuring Food Supply and Security 2022-2027 (8) Food and Agriculture Organization (FAO). (2019). Gender Analysis in Livestock Management and Interventions
IOA Sources
  • (9) Mongolian Customs General Administration. (2021). Customs statistics. https://gaali.mn/statistic (10) Mordor Intelligence. (2022). EUROPE BIOLOGICAL ORGANIC FERTILIZER MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2023 - 2028). https://www.mordorintelligence.com/industry-reports/europe-biological-organic-fertilizers-market (11) BusinessWire. (2022). The Global Organic Fertilizers Market is Expected to Reach Profits of $15.9 Billion by 2030. https://www.businesswire.com/news/home/20220215005892/en/The-Global-Organic-Fertilizers-Market-is-Expected-to-Reach-Profits-of-15.9-Billion-by-2030---ResearchAndMarkets.com#:~:text=The%20market%20is%20projected%20to,fertilizers%20help%20with%20water%20retention. (12) PS Intelligence. (2022). Organic Fertilizers Market Size and Share Analysis. https://www.psmarketresearch.com/market-analysis/organic-fertilizers-market-report (13) UB Post. (2022). Shinebayar: Mongolia imported only 30 of its fertilizer Needs. https://theubposts.com/sh-shinebayar-mongolia-imported-only-30-of-its-fertilizer-needs/ (14) Food and Agriculture Organization (FAO). (2019). Organic Agriculture and the Sustainable Development Goals. Available at: https://www.ifoam.bio/sites/default/files/nm19_329_report_sdg_lr.pdf (15) Government of Mongolia. (2019). Voluntary National Review Report (16) Government of Mongolia. (2019). Nationally Determined Contribution (17) Ministry of Food, Agriculture and Light Industry (MOFALI). https://mofa.gov.mn/exp/blog/10/84 (18) Parliament of Mongolia. (2012). Law on Ensuring Food Safety. https://legalinfo.mn/mn/detail?lawId=8911 (19) Government of Mongolia. (2019). Regulation on monetary incentives for herders who sold their sheep and camel wool to domestic producers. https://legalinfo.mn/mn/detail?lawId=210140&showType=1