How To Start A Biofertilizer Manufacturing Business

Do you want to start a small-scale biofertilizer manufacturing business? Find here a sample biofertilizer business plan template.

Biofertilizer is a special type of fertiliser that contains living organisms. Generally, these are  living microorganisms of bacterial, fungal and algal origin. And every type of biofertilizer comes with carrier materials like peat, lignite powder in such a way that they will have sufficient shelf life.

Biofertilizer helps plants to absorb nutrients. Additionally, biofertilizers enhance the nutrient availability to crop plants by processes like fixing atmosphere N or dissolving P present in the soil. However, it doesn’t create any soil and water pollution like chemical fertilisers. Therefore, biofertilizers are the essential items for organic farming and sustainable agriculture.

Biofertilizer Manufacturing Market Potential

Excessive application of agrochemicals on crops leading to soil contamination and other environmental hazards. Industry experts expect this is to be a key market driver for the increasing demand of biofertilizers. In addition to being an eco-friendly option, the product also helps to maintain soil and crop health.

Global biofertilizers market share is fragmented with a large number of domestic companies focusing on regional markets. The Asia Pacific region, mainly India and China holds the major share in exporting the biofertilizer to North America and Europe.

Low cost of these products as compared to their synthetic counterparts is expected to propel demand over the next seven years. However, lack of awareness among farmers particularly in emerging economies is the major potential challenge for industry growth.

Different Types Of Biofertilizers & Applications

There are different types of biofertilizers available in the market. Additionally, they all have different effectivity and applications. Nitrogen fixing fertilisers are most popular and it holds 75% global revenue. These are rhizobium, azospirillum, acetobacter and azotobacter that help improve nitrogen content, organic and microbial population of the soil.

Phosphate solubilizing bacteria holds the second position in the world trade. Additionally, it accounts for 15% of global revenue.

The major application of biofertilizer is seed treatment globally. Seeds treated with biofertilizers help them sustain bacteria and virus attacks and also aids in increasing the yield.

Soil treatment helps in increasing the fertility of the soil. Additionally, it improves the yields of the planted crop. There is an increasing activity of rising fertile land for agricultural practices in various countries including China, India, Brazil, Italy and the U.S. And we can expect a positive impact of the increasing demand for biofertilizer on the market.

Who Can Start Biofertilizer Manufacturing Business?

This is one of the best business opportunities for the biotechnology students. Additionally, individuals who have an educational background of microbiology can start this business. Furthermore, if you have an experience of working in a biofertilizer manufacturing unit, then also you can start this business.

Apart from these, if you have already a business in the fertiliser industry, them you can enhance your product line with biofertilizer. However, any individual can start this business with proper manpower and infrastructure the business demands.

Step-by-step Guide For Starting Biofertilizer Manufacturing

Craft A Business Plan

This is the most important step in starting this business. Do some market research. Try to identify the products that have the major demand in your locality. Additionally, try to find out new opportunities for the biofertilizer application.

First of all, craft a biofertilizer manufacturing business plan including investment and marketing plan. Determine your business size. Identify what are the products you will produce. Who will your target consumers? And how will you promote your product? Additionally, how much net profit you will be earning?

Source The Technology

You can source the manufacturing technology from the reliable institutes. However, it is always better to procure the technology from the Govt. departments. Check your state laboratories. Additionally, you can also procure the technology from other states or countries.

Registration & Licensing

This business demands specific registration and licensing. First of all, determine the form of organisation and register the company. Additionally, you will need to check the licensing and tax liabilities issues. These completely depend on the location where you are initiating the business. It is advisable to consult with a business expert.

Secure A Space

According to your business plan and size, you have to secure a space for the manufacturing operation. Additionally, you will need to have space for the office operation too. A small-scale factory that can produce one or two products, demands at least 1000 Sq Ft built up area. You will need to accommodate the space for lab operation, manufacturing, packaging and storage.

Establish The Factory & Laboratory

It is advisable to have a floor plan. Additionally, you will need to arrange water and electricity connections. You have to specify the space for a laboratory, carrier preparation and enrichment, sterilisation, Inoculation and quality control, Maturation of culture, Mixing and packing, storage/ staff etc.

Required Utilities

Normally, you will need to have a three phase electricity power. Depending upon the position of the power supply, you may need to have a diesel generator.

A Biofertilizer production unit requires water mainly for steam generation for sterilisation of carrier, broth preparation and cleaning of equipment. Accordingly, you can arrange for a well or borewell to meet the requirements.

Additionally, you will need to require a controlled air supply to fermenters, sterilisation / cleaning operations etc.

Plant & Machinery

According to the specific product, you have to arrange the machinery. It is advisable to procure the machine from the reliable suppliers. Additionally, check the maintenance and warranty issues. Also, you can check the customer feedback of that company before placing the final order.

Here we put a list of basic requirements of machines.

  • Boiler/steam generator 1 big or 2 small to generate steam for sterilisation
  • Autoclaves – Horizontal 1 For carrier sterilisation. Vertical 2-4 For smaller quantities and small containers.
  • Rotary shakers
  • Fermenters
  • Laminar air flow – workstation for inoculation purposes
  • BOD incubator for culture growth sterilisation
  • Hot air oven for dry glassware
  • Air conditioner
  • Refrigerator
  • Microscope
  • Balances
  • Dispensers or Semi-automatic mixing machine with automatic injection systems
  • Sealing machine
  • Lab equipment for or quality control and microbial works etc.


After setting up the unit, you will need to hire quality manpower. It is advisable to setup a small HR department. Identify the position and craft the JD first. Then only start hiring. Keep only skilled and experienced employees. It is highly important for the new manufacturing business.

Raw Materials

Raw materials list varies depending upon the product or products you want to produce. However, the quality of the finished biofertilizer highly depends on the quality of the raw materials. In addition, you have to arrange the packaging materials.

Therefore, procure the quality raw material from the reliable suppliers. Additionally, you must ensure the regular supply of raw materials to your factory.

Biofertilizer Manufacturing Process

Generally, biofertilizer manufacturing includes three different steps. The first step is the selection of the suitable strain of the organism for which market demand is identified. Next, mass multiplication. and the last step is mixing of the culture with a carrier material and packing.

Related: How To Start Agrochemical Manufacturing Business

Promote Your Product

You must promote your products both in offline and online. However, a local distribution channel is the best option in starting the business.

Additionally, you can sell the items from your own company website. And you can also sell the products from the online marketplaces like Amazon and eBay.

Furthermore, you must do some sales promotion activity. Also, you can do some activity for increasing the awareness and creating the demand for the product. And in that case, farmers training is the best option to tap the agriculture market.

For a long term success in biofertilizer manufacturing business, you must put extra emphasis in brand awareness and marketing.