The document proposes a community-based compost production business model in Egypt. Agricultural waste amounts to 30-35 million tons annually in Egypt but only a small portion is utilized. A cooperative model is proposed where members voluntarily join a community development association (CDA) that collects agricultural waste from farms to produce compost. The CDA would sell the partially processed compost locally, prioritizing members. The business aims to benefit 200 farmers annually and add value to 250 tons of agricultural waste by producing compost and animal fodder to reduce input costs for farmers. Risks include lack of community interest but can be mitigated by community awareness activities and strong leadership.

1. Othman Elshaikh
Community-based Compost production unit

2. Agenda
The objectives
Business value chain
Business model
Potential risks and mitigation
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3. Introduction
the community-based cooperative model offers
opportunities to address these limitations as small
communities can mobilize their resources by encouraging
members to join the local CDA voluntarily and raise their
funding through membership fees. The CDA initiates this
business model – a distinct form of enterprise that
provides services and/or products to the members, by the
members, and for the members at a cost and divides the
profits, known as surpluses in a cooperative, among the
members pro rata to the amount of business each
member did with the CDA
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4. Current Situation
Agricultural wastes in Egypt amount range
from 30-35 million tons a year of which
only 7 million tons as animal feed and 4
million as organic manure are being
utilized. These crop residues results after
harvesting in the farm of leaves, stem and
shelves which are characterized as Coarse
plant by- products and big size, chemically
low in protein and fat.
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6. Agriculture residues
in tagged village
Sugar cane straw (one ton per acre)
Sorghum straw (1.5 ton per acre)
Maize straw (1 ton per acre)
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Village – Crop
Area(Acre)
Sugar cane Sorghum Maize
Elzanakta 20 200 120
ElBoghdady 150 850 450

7. The objective
* Target number of beneficiary
200 Farmers annually
Adding value for 250 ton agriculture
residues annually
1- providing alternative source of fertilizers
2- add value for the agriculture reduces (Maize- Sugar Cane)
3- reducing the agriculture input costs 10 to 15 %
4- provide alternative souse of animal fodders

8. Timeline
Providing the needed ToR and related
community consultation
1st Q 2022
Starting the procurements
Training on the compost and silage
production
2ed Q 2022
Training on the positive impact of using
the agriculture residues
Starting the actual compost and silage
production
3th Q 2022
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9. BUSINESS MODEL
• CDA collects waste from farms . the local
government may provide land for plant
operation.
• The partially processed compost is sold to
the local farmers. The priority for CDA
members.
THE UNIQUE FEATURES OF THIS
BUSINESS MODEL ARE:
The unique features of this business model are:
A) no recurrent governmental subsidies are
required;
B) assured monetary benefits accruing to all
economic actors create incentives that underpin
success;
C) CDA have an assured market ( local farmers ) for
their product;
D) product quality and price dependency ensures a
high-quality product.
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10. The way to get started
is to quit talking and
begin doing.
Walt Disney
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11. Expected Risks And mitigation
COMMUNITY MARKET
The model has a very low
input supply risk as supply is
assured from its members
TECHNICAL
• Technology performance
risks: The composting
technology typically used
(windrow composting) is a
relatively mature and
simple technology.
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• Lack of community
awareness and interest.
There is a need for a reliable
leader among the
community, which is a
prerequisite to prevent falling
into a ‘failed CDA’ trap. The
management structure can
be fairly complex and this can
affect the sustainability of
the enterprise.

12. Summary
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Type Costs EURs Support
Machineries (chopper – tractor ) 50,000 SUPMED
Operation annual 5,000 EASD
Land rent Annual 2,000 EASD
Total 60,000
Profits
Years 1 2 3 4
Operation
cost
12.000 12.000 12.000 12.000
Total revenue 13.500 14.500 14.500 14.500
Net profit 1.500 1.500 1.500 1.500
Net profit (%) 12% 14% 14% 14%

14. Thank You
Presenter Name
Email
Website
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