Provide a proven, cost-effective option for dealing with organic waste.
Organic waste comprises 10-20% of the waste stream.
Organic waste is heavy, odorous, and a lead cause in vector attraction at landfills and transfer stations.
Organic waste is the largest untapped portion of the waste stream for increased recycling.
Expired/Spoiled Goods from Market Become Food Waste Fertilizer Sold to A griculture , r etail lawn & garden, and turf markets Crops Sold at Market Converted Organics processes foods waste into fertilizer Agriculture Fertilizer Food Waste Market Lawns ORGANIC FERTILIZER BUSINESS MODEL Crop Production
ORGANIC FERTILIZER BUSINESS MODEL Food waste diverted from landfills Convert food waste into organic fertilizer using an advanced “green” process Sale of organic fertilizer Retail Professional Turf Agribusiness
% Crop Yield Increase Conducted in 2010 by one of largest U.S. agriculture retailers CONVERTED ORGANICS CROP TRIALS
AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER Millions of Tons Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation Converted Organics target markets Market Product Type 1 58 Dry Bulk Liquid (includes anhydrous ammonia) 57 29 23 6 58 Dry Bagged Agriculture Non-Agriculture (Lawn & Garden, Professional Turf, Other)
TOTAL LIQUID FERTILIZER CONSUMED (2007) BY REGION Millions of Short Tons – Total = 22.5M Short Tons New England 0.0M Tons 0% of U.S. Total Mid-Atlantic 0.40M Tons 2% of U.S. Total East North Central 5.1M Tons 23% of U.S. Total South Atlantic 1.5M Tons 7% of U.S. Total East South Central 0.7M Tons 3% of U.S. Total West South Central 2.7M Tons 12% of U.S. Total West North Central 8.0M Tons 36% of U.S. Total Mountain 1.3M Tons 6% of U.S. Total Pacific 2.8M Tons 12% of U.S. Total Other 0.1M Tons 0% of U.S. Total Source: Commercial Fertilizers, 2007 – The Fertilizer Institute MONTANA WYOMING IDAHO WASHINGTON OREGON NEVADA UTAH CALIFORNIA ARIZONA NORTH DAKOTA SOUTH DAKOTA NEBRASKA COLORADO NEW MEXICO TEXAS OKLAHOMA KANSAS ARKANSAS LOUISIANA MISSOURI IOWA MINNESOTA WISCONSIN ILLINOIS INDIANA KENTUCKY TENNESSEE MISS ALABAMA GEORGIA FLORIDA SOUTH CAROLINA NORTH CAROLINA VIRGINIA WV OHIO MICHIGAN NEW YORK PENN MARYLAND DELAWARE NEW JERSEY CONN RI MASS MAINE VT NH ALASKA HAWAII
THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR Source: Organic Farming Research Foundation
U.S. ORGANIC FARM SEGMENT IS A CAPTIVE MARKET FOR CONVERTED ORGANICS, BUT IT IS A SMALL PERCENTAGE OF TOTAL FARM ACREAGE U.S. Conventional Cropland Acreage Millions of Acres Source: USDA, National Agricultural Statistics Service (2007) U.S. Organic Acreage CAGR 1992-2005: +12% per year 2005 1992 1997 2002 2003 2004 1993 1995 1994 2000 2001 0.9 1.3 1.8 2.1 1.9 2.2 3.0 4.1 1.0 1.0 0.9
NATURAL ORGANIC MATERIALS REPRESENT LESS THAN 1% OF TOTAL FERTILIZER USED IN THE U.S. Multiple Nutrients (NPK) Phosphate Materials Natural Organic Materials Nitrogen Materials Millions of Short Tons (100% = 57.6M Tons) Source: The Fertilizer Institute (2007) Secondary & Micronutrients Potash Materials Converted Organics product category
EIGHTY PERCENT OF CERTIFIED ORGANIC CROPLAND ACREAGE IS CONCENTRATED IN 15 STATES Number of acres AK HI CA WA MT ID NV WY UT CO AZ NM OR ND TX OK KS NE MN IA LA AR MS AL FL GA TN SD WI IL MO KY IN OH MI SC NC VT ME NY PA MD NH DE MA NJ RI DC VA WV
If our highest priority Agriculture Market is the organic farm market, we should focus our sales effort on those states that have the greatest number of certified organic acres
The shaded states represent high priority markets for organic fertilizers
When we move forward with changing the Biolizer brand name, we should prioritize the states accordingly for re-certification
Source: USDA Census – Published February, 2009 > 200K acres 100K - 200K acres 40K-100K acres < 50K acres CT AK