Market Feasibility of Faecal Sludge and Municipal Solid Waste-Based Compost as Measured by Farmers’ Willingness-to-Pay for Product Attributes: Evidence from Kampala, Uganda

Abstract

There is a great potential to close the nutrient recycling loop, support a 'circular economy' and improve cost recovery within the waste sector and to create viable businesses via the conversion of waste to organic fertilizers. Successful commercialization of waste-based organic fertilizer businesses however largely depends on a sound market. We used a choice experiment to estimate farmers' willingness-to-pay (WTP) for faecal sludge and municipal solid waste-based (FSM) compost in Kampala, Uganda and considered three attributes-fortification, pelletization and certification. Our results reveal that farmers are willing to pay for FSM compost and place a higher value on a 'certified' compost product. They are willing to pay US $0.4 per kg above the current market price for a similar certified product, which is 67 times higher than the cost of providing the attribute. Farmers are willing to pay US $0.127 per kg for 'pelletized' FSM compost, which is lower (0.57 times) than the cost of providing the attribute. On the other hand, farmers require US $0.089 per kg as a compensation to use 'fortified' FSM compost. We suggest that future FSM compost businesses focus on a 'certified and pelletized' FSM product as this product type has the highest production cost-WTP differential and for which future businesses can capture the highest percentage of the consumer surplus. The demand for FSM compost indicates the benefits that can accrue to farmers, businesses and the environment from the recycling of organic waste for agriculture.

Faecal Sludge Derived Products as Fertilizer for Lettuce Cultivation in Urban Agriculture

“…The faecal coliform log10 numbers are higher than those considered acceptable levels in Canada [38] or the USA [39], where standards stipulate faecal coliforms <1000 CFU g−1 (= 3 as Log10 numbers). We, anyhow, did not further analyse if the colonies found belonged to Escherichia coli or to some other species.…”

“…Furthermore, waste-based fertilizer could allow for poor farmers a possibility to save money since mineral fertilizers have high prices. Faecal sludge-based fertilizer could be commercialized as it has been successfully done in Uganda [38] and in Haiti and Kenya [39]. In these areas, farmers are willing to pay a reasonable price for these fertilizers and they can then sell their yields.…”

Fecal Sludge Derived Products as Fertilizer for Lettuce Cultivation in Urban Agriculture

“…Furthermore, waste-based fertilizer could allow poor farmers a possibility to save money, since mineral fertilizers have high prices. Faecal sludge-based fertilizer could be commercialized as it has been successfully done in Uganda [40] and in Haiti and Kenya [41]. In these areas, farmers are willing to pay a reasonable price for these fertilizers, and they can then sell their yields.…”

Realizing the Circular Economy for Sanitation: Assessing Enabling Conditions and Barriers to the Commercialization of Human Excreta Derived Fertilizer in Haiti and Kenya

“…Modifying the properties of the final product can also have significant effects on its profitability. Danso et al [30] showed the potential effect of modifying compost attributes in Uganda: farmers' willingness to pay was US$0.40 more if the fertilizer was certified, which gave an overall price 67 times higher than the cost of providing it. If the compost was pelletized, they would be willing to pay $0.127 more, but this meant the sale price was less than the price required to produce the compost.…”

“…Certification could be beneficial for improving commercialization of human excreata derived fertiliser, potentially increasing its market value [30]. The value in creating certifications and standards for sanitation is recognized, with several ISO standard-setting processes currently under way.…”