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SWM2 - Feasibility study on green compost production by using waste from urban markets

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Feasibility Study

Sustainable practice for the production and the viable marketing of compost

by using waste from HH and urban markets

Conducted by:

Shwe Phue San

Master of Science in International Horticulture

Yangon, 10 January 2014


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Acknowledgement

First of all, I would like to convey my special thanks to CESVI Solid Waste Management Project

Operational Coordinator and the team for giving me the opportunity to collaborate to this feasibility study

on the green compost production. I would like to express my deep gratitude to PCCD Officers and

Supervisors for sharing the relevant information that allowed me to complete my task and for introducing

me to the market committee members and the market vendors. I also would like to extend my gratitude to

the market committee managers I have interviewed for the extensive data they were willing to share with

me.

I especially thank Dr. Than Than Sein, visiting professor, Department of Biosciences, Mandalay

Technological University, for her precious guidance on the composting process, U Khin Maung Than, director

of Research and Development, Bio-Supreme Company and U Nyan Lin, managing director of Shan Maw

Myay for their time and the invaluable discussion on many aspects of the production, marketing and future

development of the green compost. My special thanks to Bryan Berenguer, head of projects, Htan Ta Pin,

Welthungerhilfe, for his interest in the composting project and also for his commitment in promoting the

product. Thanks also to Marco Guercio from AMIAT for sharing his knowledge and experience on the

environment impact of the composting plants.

I am grateful to the gardeners, growers, farmers and all other people that kindly participated in the

discussions and interviews.

Finally but deeply, I owe my gratitude to Miss Thi Mar Win, M.Sc candidate of Kyushu University,

Japan, for her kind support at the beginning of this study.

Shwe Phue San

Biography Ms. Shwe Phue San, is a young active and promising professional with several years professional experience in Science and Agriculture. She attained a BAgrSc degree from Yezin Agricultural University in 2005 and qualified MSc in International Horticulture degree from University of Essex in 2008. During her MSc study period, she volunteered at the Royal Botanic Gardens Kew in London. Shwe Phue San worked at the Alexander Technological Education Institute (ATEI), in Greece as a research assistant for a National Plant Protection Project on molecular identification of brown rot fungus and from June 2010 to May 2013, she worked at Centre for Agriculture and Biosciences International (CABI-Europe, UK center) as a Bioservices Screening Technician. From May 2013 to September 2013, she worked as a Senior Agronomist and Township Coordinator with CESVI-Northern Shan team for LIFT funded projects.


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Table of contents List of acronyms page 4 Executive summary page 5 1. Background of the feasibility study and rationale page 7 2. Objectives of the feasibility study page 8 3. Methods of the study page 9 4. Compost production process analysis page 10

4.1. Methodology of the analysis 4.2. General information on availability and quality of raw material of 3 selected markets 4.3. Analysis of the waste separation for the markets in the target townships 4.4. Possible options for the green composting process 4.5. Estimated composting schedule for both options 4.6. Comparison on necessary input of production options 1 and 2 4.7. Estimated cost analysis for compost production process option 1 and 2

5. Stakeholder analysis page 22 6. Economic analysis on the initial small scale production: cost and revenues page 29 7. Market Analysis page 30

7.1. Estimating compost market size

7.2. An overview on fertilizer application in Myanmar

7.3. Estimation on constraints of organic fertilizer market

7.4. Compost market segmentation

7.5. Target market penetration strategy

7.6. Market needs in terms of natural fertilizer and competitors

7.7. Compost market trends and product development in Myanmar

7.8. General overview on compost market

7.9. PESTLE Analysis

7.10. Analysis of the potential of supply based on the production process

7.11. Types and prices of common fertilizers used in Myanmar (2012 and 2013) 7.12. Estimated potential of demand analysis

8. Recommended steps for compost marketing page 40

9. SWOT analysis for compost marketing page 40

10. Developing the compost value chain and value chain analysis page 41

10.1. Value chain mapping

11. Analysis of the environmental impact of the production of compost page 43

12. Conclusion and recommended activities for pilot composting page 46

13. Literature page 48

Annex 1: Composting manual for small scale and large scale production Annex 2: List of people interviewed for the feasibility study Annex 3: Questionnaires used for the study Annex 4: Photos


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List of acronyms

AMIAT Azienda Multiservizi Igiene Ambientale Torino

BOD Biological Oxygen Demand

CESVI Cooperazione E Sviluppo

CF Community Facilitator

CM Community Mobilizer

cm Centimeter

C: N Carbon to Nitrogen ratio

EM Effective Microbes

IEC Information, Education and Communication

INGO International Non-Government Organization

ITHACA Information Technology on Humanitarian Assistance, Cooperation and Action

JICA Japan International Cooperation Agency

K Potassium

Kg Kilogram

Kyat Currency used in Myanmar

LA Local Authorities

LC Local Community

LNGO Local Non-Government Organization

M Meter

MAS Myanma Agriculture Service

MGG* Market Green Group

N Nitrogen

Natural fertilizer a fertilizer that is derived from natural product such as plant residues

Organic fertilizer a fertilizer that is derived from animal or vegetable matter P Phosphate

PESTLE an analysis on Political, Economic, Social, Technological, Legal and Environmental

pH power of Hydrogen

PCCD Pollution Control and Cleansing Department

PPE Personal Protective Equipment

QC Quality Control

SWM Solid Waste Management

UN United Nations

UN-HABITAT United Nations Habitat

WHH Welthungerhilfe

YCDC Yangon City Development Committee

(MGG* does not exist yet in Yangon City. It is an imaginary name of a potential group to be formed) NB. Natural fertilizers include green manure such as wild sunflower, farm yard manure such as cow dung and compost. In this report, the terms compost, natural fertilizer and organic fertilizer are often used interchangeably and their meaning is used distinctly only when it is needed by the context.

All prices referred in Myanmar Kyats are related to the time the research was conducted, i.e. October-December 2013. Indicatively 1 USD = 1,000 Myanmar Kyats.


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Executive Summary

The production of green compost using green waste from urban markets can: (a) reduce the amount of

waste to be disposed or incinerated, (b) make available a product that would help farmers to improve the

conditions of the soil and (c) create an income source for those groups interested in marketing this kind of

product.

In chapters 1 and 2, the study frames the research within the boundaries of the SWM2 project and

demonstrates that Yangon is a suitable place for the production of green compost because of (a) sufficient

availability of the raw material and (b) vicinity of rural areas where the compost could be used. The

objectives of the study are:

To promote good solid waste management practices by reducing landfill overfills in Yangon City; To encourage good soil fertility management practices in Myanmar particularly by providing low cost

compost/organic fertilizer; To increase community awareness of best practices on SWM in targeted townships in Yangon City. In order to reach those objectives, the study explores the feasibility of potential pilot projects for the

production of compost.

In chapter 3, the methodologies adopted for the research are described. The methodology is based on a

substantial number of interviews conducted to validate or invalidate concepts, experiences and options for

pilot projects around the idea of green compost from urban market waste.

In chapter 4, the production process of the compost is analyzed. After analyzing the data and the conditions

of three big markets in Yangon city, the study ascertains that in Yangon markets there is enough quantity

available of raw material for a sustainable production of green compost. The quality of the waste is also

good, provided that the separation of the green waste is conducted at the market level. The green waste

from markets is definitely preferable to household green waste for compost production as households do

not practice proper yet separation. Given Yangon context, simple technologies for the production of

compost are recommended. Two options for the production processes are identified. Option 1 analyses a

large scale windrowing process and option 2 analyses community based small scale compost production

process. The production analysis recommends the adoption of the aerobic process on a rotation schedule of

17 weeks for the production. The analysis also provides practical details on the input, human and financial

resources needed for the production. A SWOT (Strength / Weakness / Opportunity / Thereat) analysis shows

that the two options are both viable, though the community based small scale production seems to be more

promising in terms of long term sustainability.

In chapter 5, the role of the different stakeholders is analyzed. Based on a XY axis analysis, potential

producers, customers, market vendors and PCCD are identified as the most affected and, at the same time,

the most influential stakeholders in relation to the compost production. In the following sections of the

feasibility study, those stakeholders and their approach to the compost is constantly taken in account to

draw the final recommendations.

In chapter 6, the economic analysis (costs and revenues) of the small scale production is carried out. The

economic analysis shows that potential small scale producers can establish a profitable business from the


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production and sale of the compost. Being the scope of the research limited, a similar analysis for the large

scale production (option 1) was not conducted.

In Chapter 7, the market analysis, including the aspects to consider when a new product has to be launched

on the market, is conducted. The analysis includes: the market size estimation, market segmentation and

penetration, market needs and market trends, potential competitors, constraints and opportunities of the

supply and demand and price setting. The analysis stresses the need to involve potential collaborators for

the market of the compost and identifies a number of possible synergies with bio-fertilizers companies and

development agencies. The PESTLE analysis indicates that the project partners are unlikely to encounter

major obstacles in piloting the production by the political, economic, social, technological, legal and

environmental points of view.

In Chapter 8 and 9, recommended steps for the compost marketing such as packaging, branding, delivery options and promoting the product through media are described. The SWOT analysis for the compost marketing indicates that there are more strengths and opportunities than weaknesses and threats. Therefore, developing the compost product market on a small scale could be successful in terms of a sustainable long term production.

In Chapter 10, a value chain mapping is developed with the definition of the characteristics of individual value chain actors starting from primary source of raw material suppliers to final product users. The mapping shows that the establishment and growth of the compost market depends on a number of relevant factors, including:

the identification of both a steady and growing supply of raw material and a growing end market;

increasing number of end-users and suppliers and awareness of the potential value of the compost market;

interest and support from local authorities to regulate and encourage the development of the market.

The following steps in the chain are identified: (a) the establishment of pilot composting facilities; (b) pilot initiatives for the waste separation at the source; (c) technical assistance; (d) compost testing and demonstration; (e) end market linkages.

An environmental impact analysis is conducted in Chapter 11. As the aerobic composting methods (large scale and small scale) are recommended, the negative impact of the production on the environment is limited. Four types of environmental risks resulting from the composting process are analysed: air pollution and greenhouse impact, water pollution, soil contamination and fire and other hazards. The feasibility study establishes that if odours and proliferation of insects, rodents and birds are kept under control and correctly mitigated, the environmental impact of a plant for the production of compost is certainly positive because the organic compost contributes to increasing the quality and the moisture of the soil and to reducing the use of chemical fertilizers.

Chapter 12 reports the final recommendation and the conclusions of the study. As a conclusive finding of the feasibility study, community based small scale composting is identified as the best option for valuing green waste. Local authorities are making an effort to improve existing solid waste management practices with the support of international partners and it should not be difficult for them to build consensus and a commitment for long term support of green composting. In parallel to the awareness campaign, capacity building of the actors eventually involved in the production and market of the compost is necessary because all actors involved need to have a thorough understanding on community facilitation as well as on every single step of composting and its related impact.


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1. Background of the feasibility study and rationale Yangon City, former capital of Myanmar, consists of 33 townships with a total area of about 680km2. In 2000, total population in Yangon City was approximately 5.5 million with its increase rate of 2% per year. Yangon City today is facing with significant urban sanitation problems because of lack of systematic solid waste and sewage management practices. Most of non-differentiated households and markets waste management system in Yangon City needs some improvements in order to minimize serious consequences on the health of citizens and on the environment. (See Picture 2) According to the data provided by YCDC, the waste collection in Yangon is estimated around 1,700 tons per day, while the daily production of waste is forecasted to reach a total of 2,900 tons by 2020. According to PCCD report in 2007, contribution of organic waste (fruits, vegetables, cane, bamboo, tree branches and leaves etc.) was approximately 60% of total portion of solid waste. In 2013, composition of organic waste is increased up to 75%. There has been a remarkable increase in percentage of organic waste within a decade. Obviously, the amount of daily production of organic waste in Yangon City provides tremendous potential for green composting. In order to restrain waste management and environmental protection, systematic and up-to-date protocols for waste generation methods such as recycling and composting of green waste are urgently needed in Yangon City.

Myanmar is an agro based country which needs to encourage the production and nationwide application of natural fertilizer, such as the compost, for sustainable crops production practices. Chemical fertilizers are largely used in Myanmar and, actually, the agricultural production for commercial purposes in Myanmar could not be sustained without the use of chemical fertilizers. However, the chemical fertilizers have a number of undesirable side-effects, including the deterioration of the soil. Integrating the use of chemical fertilizer and possibly compensating the quantity used, with compost or natural fertilizers, would help reducing the environmental risks linked to the chemical fertilizers. Like in many other cities throughout the world, composting was introduced in Yangon in 1999 in order to make wealth (compost) from municipal waste and to provide low cost natural fertilizer for farmers. The compost plant located in Padamya Myo Thit in Mingaladon Township is operated under Ministry of Agriculture and Irrigation. In the process of composting, raw materials such as waste taken from old disposed piles at the final dumping sites, market vegetable waste and mixed municipal waste were used to compost. From the year of 1999 to 2000, during fifteen months period, the plant in Yangon produced 4,921 tons of organic fertilizer. The plant produced 200,000 bags of composts (25kg/bag) during of previous years. The compost bags were sold and distributed to nine states and divisions including Yangon, Bago, Kayin, Rakhine, Mandalay and Sagaing. (Thant Zin, 2010). The production was terminated for the difficulties of conducting proper quality tests and the unsustainable costs of production. The project “Environmental protection and sustainable development: building local capacities on solid waste management in Myanmar Yangon” co-implemented by Yangon City Development Committee - Pollution Control an Cleansing Department [PCCD], The City of Turin [CdT], ITHACA and CESVI, is investigating the feasibility of producing compost with organic wet waste from market waste. The purpose of the feasibility study is (1) to contribute to piloting projects that could lead to reducing waste delivered to the dumping sites and (2) to promote activities that can produce income by the re-use of waste for poor. The three-year project started in March 2013 and entered the implementation phase in June 2013.The project explores innovative ways to improve the quality of solid waste management in Yangon and integrate principles of environmental protection into existing policies and practices. The project aims at: strengthening the institutional and technical capacity of local authorities; developing an information system for solid waste management; increasing community awareness of best practices in solid waste management.


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The project partners selected Tarmwe, Thingangyun and HlaingHtaYar townships based on criteria for pilot initiatives. The feasibility study on sustainable practices for the production and the viable marketing of compost by using waste from households and urban markets is part of the third component of the project and aims at collecting, analysing and presenting the relevant information that the project team has to take in account in the preparation of a pilot project for the production of compost with household and urban markets wet waste. The purpose of this feasibility study is to provide advice and guidance on: understanding if the composition of the wet waste allows the production of organic compost and what

quantity is necessary to pilot a test; setting up the pilot project considering all the related technical aspects; analyzing if there is an economically viable market for the compost produced; Promoting proper segregation of dry and wet waste at HH level and in markets to encourage separate

collection of the wet waste. In-depth information on value chain and market analysis on composting in Yangon City is necessary to orient the pilot initiatives foreseen in the project. Presently and in PCCD knowledge, no comprehensive data are accessible on feasibility and profitability of compost production initiatives on a small scale in Yangon. The analysis will also contribute to feed the development of topics to be dealt by the awareness campaigns. The analysis consists of the following activities: Participatory workshops conducted in July 2013 with the PCCD to orient and analyse the study. Development of the value chain and market analysis of the compost production according to the

following criteria: a) Involve poor people in the implementation of pilot activities generating income; b) Improve working conditions of people involved in waste segregation; c) Increase awareness of population through implementation of demonstrative activities; d) Low hardware/equipment investment and maintenance requirements; e) Short term time for start-up; f) Highest income generation opportunities – market demand; g) Coherence with SWM strategy of PCCD and the project objectives and procedures; h) Potential and interest of replicability.

Commercial composting of urban organic waste in Yangon is not properly yet developed. Various issues concerned on composting are fulfilment of sorting, improvement of technical knowhow, lack of monitoring instruments and quality control protocols. Therefore, it is still needed to take measures for significant progress from pilot scale to compost industry. In order to meet the needs of project component three, CESVI is studying the feasibility level of compost production with its market potential and value chain in Yangon City. 2. Objectives of the feasibility study

Overall objective To promote good solid waste management practices by reducing landfill overfills in Yangon City,

Myanmar; To encourage good soil fertility management practices in Myanmar particularly by providing low cost

compost/organic fertilizer; To increase community awareness of best practices on SWM in targeted townships Yangon City.


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Specific objectives To evaluate level of support and opinion of potential stakeholder; To identify commercial green compost production process and its options with quality control

protocols; To develop a possible value chain mapping for compost; To develop market analysis of green compost; To assess environmental impact of green compost production; To evaluate the feasibility of commercial compost production in Yangon City.

3. Methods of the study Discussions and interviews with project partners; YCDC-PCCD officers at head office level and

targeted townships supervisors, market committee members, market vendors. Professionals from AMIAT, CESVI Senior Management Team;

Telephone discussions and face to face interviews with Composting Resource persons, Bio-fertilizer producers ( Bio-Supreme companies and Shan Maw Myay Agro Industry) and potential buyers (INGOs such as WHH, vegetable growers and fruit and nurseries growers);

Development of individual/ in-depth survey questionnaires for producers, buyers and market vendors and stakeholders;

At least 30 growers from Yangon and Greater Yangon areas were interviewed; Visual Observation, Voice recording, Note and photo taking, Analysis with MS excel; Analytical tools (such as XY axis diagram for Stakeholder positioning, stakeholder analysis table,

SWOT analysis, PESTLE analysis for economic and market analysis); Telephone queries on quality control tests of compost; Accessing secondary data concerning the utilization of organic and inorganic fertilizer and, for the

inorganic fertilizers, the amount of quantities imported from abroad; Literature citation for all analysis particularly for Environmental Impact Analysis.


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4. Compost production process analysis

Composting is a process that involves the natural biological decomposition of organic matter in the presence or absence of oxygen. Compost production of urban waste starts from the effective separation of pure organic waste to achieve the final product, which is the compost. Considering the availability of raw material, green market waste is classified as the only suitable source, at the moment, because of the extremely low degree of awareness on separation at individual household level. According to the township PCCD officers, less than 10% of individual household in local communities separate wet waste and dry waste in target townships. Therefore, awareness campaigns should be conducted before considering the utilization of household wet waste for green compost. For the pilot initiatives on composting, the best option is to start with green waste from markets because of its steady supply amount and convenient nature of separation. Depending on the scale of the composting program, potential processing technologies range from simple backyard decomposers to more advanced procedures requiring mechanical mixers. Given the goals of the project, (a) sustainability, (b) creating many job opportunities for local poor and (c) minimizing the initial setup cost, it is strongly recommended to use simple and labor intensive methods with less advanced machines for pilot composting in Yangon City. The quality of the final product largely depends on the quality of raw material, adequate environmental conditions, such as suitable temperature and pH, together with the right ratio of carbon and nitrogen sources. For this reason, effective separation of organic waste from inorganic waste is imperative to ensure these decomposition conditions as well as to prevent the final product from contamination. Prior to the development of a composting program, a number of factors affecting the program’s feasibility need to be examined. These are: The availability and quantity of organic waste produced for the process; The manner in which this waste would be separated, and transported to a composting facilities; The location of the facilities; The method for processing the organic waste into useable compost; The delivery and potential marketing of the final product to the potential users of compost.

Information about each of these factors and their related economic costs and benefits would then enable decision makers to make informed decisions towards the development of a permanent composting program with a sustainable future. The markets in the target townships in Yangon City range in size from small commerce of vegetables to larger scale markets for fish and meat products, packaged goods, prepared food, clothing and others. Markets with majority of green market vendors were the main focus of this study as they produce a larger quantity of organic waste and the market committee members show their interest in participating in potential pilot projects. The mode of separation chosen for compost making can have a great effect on efficiency of the composting process. Studies conducted on composting in developing countries indicate that source separation is the only feasible method for profitable and sustainable composting. (Wong, 2004) The information on the current waste management practices in the markets of the target townships was collected by interviewing potential stakeholders such as township PCCD supervisors, market managers, market vendors and cleaners currently in operation.

4.1. Methodology of the analysis Production process and separation options are considered for each of the markets analysed in the study and are based on information gained through observations, interviews and discussions. Market Selection for the feasibility study Three major markets: (1) Pa Dauk Mying market so called Mee Khwat Zay in Hlaing Tha Yar Township, (2) Nga Moe Yeik San Pya market in Thingangyun Township and (3)the temporary market so called Yar Yee Zay in Tarmwe Township, were selected for the feasibility study based on the great amount of organic waste,


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high number of green products vendors and a high degree of support from township PCCD and market committee members. The markets operate from 6am in the morning until 6pm in the evening. All markets are open seven days a week. Observations, interviews and survey questionnaire Informal discussions and interviews proved to be the most appropriate means of gathering information relating to the points of view on waste separation as well as composting process. At each of the examined markets, visual observations of the daily market life and waste movement took place. Observation allowed the collection of information on the existing methods of waste separation, collection and transportation to be aggregated for the delivery to the final destination (dumping site), along with the collection and transportation frequency. The survey questionnaire was conducted in Burmese verbally and the summary of the answer was translated in English. With the kind support of the township PCCD supervisors, the selected market committee members and market vendors were met and interviewed.

Baseline data of PCCD capacity and types of wastes in target townships

(Source: Full Project Proposal)

4.2. General information on availability and quality of raw material of 3 selected markets As stated, organic market waste is the only available source of raw material for green composting because of the easy separation on site. It should be checked that the raw material source is purely organic, which is free from pesticides and chemicals. On the other hand, waste from other sources such as households, hospital, restaurants and industrial zones are not qualified yet for composting. As less than 10% of people separate dry waste and wet waste, it is labor extensive –and therefore impossible for the time being- thinking to separation and hence composting of waste from those sources. In each market, there are at


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least 30-50 small scale vegetable vendors. Each vendor produces 2-3 baskets of pure green waste per day. The basket size is approximately 30cm wide and 90cm long. The weight of the organic waste (in kg) produced by each market vendor varies greatly according to the produce they sell. The majority of the green waste is composed by cabbage, cauliflowers and leafy vegetable such as lettuce. (See picture 4) In the table below, information collected in the selected markets is summarized:

Market Name Pa Dauk Mying (Mee Khwat Zay)

Nga Moe Yeik San Pya Market

Yar Yee Zay (Temporary market)

Area of Market 8343.4m2 9293.7m2 24686.4m2

Hours of Operation 6am to 6pm 6am to 6pm 6am to 6pm

Total no. of spaces For Shops

483 1152 NA

Estimate degree of Awareness

Very Low Low Low

Items selling

Fruit, Vegetable, Meat, Fish, Food and other



Estimate amount of waste (ton)/day

8-10 2-4 2-3

No of cleaners

6 people 12 people 10 people

Salary of Cleaners

240000 Kyats 170000 Kyats Contracted to cleaning company

Mode of waste transport In concrete tank first. Then, to FDS by track

Container directly connected by tract

Container directly connected by tract

Final Dumping Site (FDS)

Htein Pin Htein Pin Dawei Chaung

(Source: Market Information Leaflet provided by market committee)

4.3. Analysis of waste separation for the markets in the target townships

In general, market cleaners clean twice daily; morning shift and evening shift. PCCD is responsible for collection and transport of the market waste to the final dumping site daily. The waste management system is more or less the same in the three markets visited. Also, the quality of waste does not differ much. The management of Mee Khwat Zay in Hlaing Tha Yar Township needs some improvement. The first thing to improve is to cease using the concrete tank for waste disposal because the tanks cannot be cleaned regularly to reduce and eventually remove bad smell, flies and insects. In Thingangyun and Tarmwe, the waste containers in use are able to be connected to track cars. Hlaing Tha Yar Township produces approximately three times more organic waste than Thingangyun and Tarmwe. To sum up, the selected markets have a very good potential to pilot the composting project. The best separation option for the time being is that the green vendors are to be provided with awareness trainings, practical exercises for separation as well as provision of baskets or bags designated for organic waste alone. Besides, visibility items such as calendars, T-shirts could be useful for effective motivation. The bags to be provided for the collection of the green waste should be re-usable several times. Instead of bags, the supply of baskets is more suitable for long term sustainability because bags will not last as long as baskets. 2-4 baskets for each vendor seems to be a good option. The number of basket provided also could depend on the type of vegetable items they sell. Coconut and banana vendors will need more baskets than


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ordinary vegetable (lettuce, carrot, bean sprouts) vendors because of the different nature (density, size and weight) of the waste they produce.

Separation analysis on Pa Dauk Chaung Market in Hlaing Tha Yar Township Pa Dauk Mying market, located in a prime location in Hlaing Tha Yar Township, was established in 1989. The market committee members stated that approximately two tons of organic waste are collected and transported to the final dumping site daily. (See picture 1) Organic waste mainly consists of outer layers of cabbage and cauliflowers, banana stalk, coconut shell and rotten green leafy vegetables such as morning glory, Kai Lan, lettuce and other varieties. A few baskets of cabbage and cauliflower wastes are taken away by those people who have cows and buffalos to feed. The market basically is cleaned twice by the market cleaners. A cleaning schedule on a daily base includes one shift in the morning and another one in the evening after the market closes. Prior to the disposing at the final dumping site, Htein Pin, the waste from market vendors as well as from households nearby are kept in the concrete tank within the market compound until PCCD track collects it. (See picture 3) The unwanted remaining of white meat such as fish and chicken as well as red meat such as beef and pork are kept in plastic bag first and then are thrown in the tank. The tank contains both organic and inorganic waste. Separating green waste from the rest is too much labor extensive. According to the township supervisors, PCCD is planning to cease the use of the concrete tank system for temporary waste disposal. In any case, the best option for separation is to provide bags to individual vendors for green waste only.

Separation analysis on Nga Moe Yeik San Pya Market in Thingangyun Township

San Pya market which is a higher class market to compare with Pa Dauk Mying, was established in 1975. The market is relatively more systematic and clean in comparison with Pa Dauk Mying market. The market committee members stated that approximately two to four tons of organic waste are collected and transported to the final dumping site daily. Like in Pa Dauk Mying market, organic waste mainly consists of outer layers of cabbage and cauliflowers, banana stalk, coconut shell and rotten green leafy vegetables such as morning glory, Kai Lan, lettuce and varieties. (See picture 9) A few baskets of cabbage and cauliflower wastes are taken away by those people who have cows and buffalos to feed. The market basically is cleaned twice a day. Prior to the final collection for the disposal at the final dumping site, the waste from market vendors as well as from households nearby is kept in a container which can be downloaded by PCCD track cars. (See picture 6) Unlike Pa Dauk Mying market, waste is not temporarily kept in concrete tank. Apart from that, waste operating system is more or less the same as in Hlaing Tha Yar. The waste container stores both organic and inorganic waste. Therefore, providing bags or baskets to green vendors is the best separation option. As shown in picture 5, a market vendor separates bean sprout waste which is rich in N content from other inorganic waste. PCCD officers and market committee members of Thingangyun Township suggested that almost 100% pure organic wet waste can be accessed from Taw Zay Market which operates from 2am to 6am in the very early morning in Thingangyun Township. At that market, the vendors themselves are vegetable growers and wholesalers. On a daily base, nearly five tons of fruits and vegetables waste are collected by PCCD staff and then disposed at the final dumping site. Separation analysis on Yar Yee Zay (Temporary Market) in Tarmwe Township Yar Yee Zay is also known as temporary market located next to Tarmwe PCCD office. It is ranked as a high class market but the upgraded construction of the market facilities was not been yet completed at the time of the study. The market is the biggest in that township and hence the biggest producer of waste. The market committee members stated that approximately two to three tons of organic waste are collected and transported to the final dumping site daily. Organic waste composition is more or less similar to the other markets analysed. Wheelie bins are placed inside the market for waste disposal. (See picture 20)


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Like other markets, a few baskets of cabbage and cauliflower waste are taken away for feeding domestic animals. The market basically is cleaned twice by the market cleaners similarly to the other two markets. (See picture 7) Unlike other markets, market waste is not mixed with households waste and it is managed separately. The final dumping site for Tarmwe Township as well as Thingangyun Township is in Dawei Chaung. 4.4. Possible options for the green composting process As mentioned below, two options are identified as feasible for the composting process. Option 1 for large scale windrowing production process As shown in the diagram below, the composting option (1) should start with the market vendors who are responsible for the separation of pure green waste in the market. Before doing so, each vendor in the market should receive awareness trainings and IEC materials on effective waste management practices. After that, participatory exercises for practical separation should be done with the facilitation of community facilitators. The vendors may be well motivated by receiving visibility items such as calendars, raincoats, handbags etc. The vendors should be provided with at least 3 ordinary size bags or baskets. For coconut and banana vendors, it is necessary to supply initially at least either 3 baskets or 3 bags which are thicker and bigger than the ordinary size bags because of the heavy density and weight of their waste. At the next step, market cleaners will collect the waste bags from the vendors and keep them at designated area which is permitted by local authorities. Market cleaners need to be trained to take care of their own health and safety. Personal Protective Equipment (PPE) such as gloves, aprons, visors, masks and safety shoes should also be provided. In order to achieve the good participation of market cleaners, they should receive visibility items such as clothing for dry season and wet season, bags as well as performance appraisals and rewards. PCCD staffs will collect and transport the waste bags from the markets to final dumping site. With the permission of the local authority, windrowing composting should be done at the final dumping sites (Htein Pin for Hlaing Tha Yar Township and Dawei Chaung for Thingungyun and Tarmwe Townships). PCCD has past experience in composting of green waste by windrowing method which is the most suitable method with low initial setup cost for large scale composting. PCCD already owns the facilities including the loaders (front ended bucket loaded tractors) for turning the compost. An agronomist will be fully responsible for the composting process at both final dumping sites as well as for reporting to the local authorities and the project partners. Furthermore, the agronomist will organize field trials at small scale with the collaboration with local authorities, trainings and capacity building for assistants and others as necessary. Two technical staff will be needed to assist the agronomist in both sites in terms of monitoring the process such as measuring temperature, moisture, pH and any kind of anomaly (such as extremely bed smell) which are likely to occur during the process. Once the final product is produced, a numbers of QC tests such as pH, moisture, temperature, organic materials, pathogens, chemical residues and heavy metal presence are needed. pH, moisture and temperature can be tested on site but organic nutrients, pathogens and heavy metal composition will be tested at a reputable laboratory, such as the one in Insein, Yangon. In order to approve the effectiveness of compost, field trials will need to be done by the agronomist with the support of the local authorities, farmers and vegetable growers. (See the manual for details) Once the QC tests are passes, the compost is ready to be sold. Packaging will or will not be needed according to the demand and nature of the customers. Branding and value adding can also be done according to the customer demand. Before delivery to the customers, a storage place will be needed and has to be rent unless the local authorities provide it. Otherwise, a large sum of money will be needed for sky high storage rental fees and transport charges from the composting site to the storage facility. Temporary workers will also be needed when PCCD staffs are not available. Delivery to customers may be carried out under different


15 | P a g e

conditions, including, for example, free delivery to those who buy more than ten tons. On the other hand, those who order less than ten tons might be expected to pay delivery charges. A brief outline diagram and SWOT analysis for this production process option 1 can be seen below at 4.4.2 and 4.4.3. Brief outline of green compost production process: option 1

Capacity building for staffs,

provision of PPEs,

Performance appraisal,

Rewards, Visibility items

provision

Training on Health and Safety,

Provision of personal protective

equipment (PPE) such as gloves,

visors, aprons and masks,

visibility items such as Rain

coats, clothing for summer and

winter, safety shoes

Training, participatory

exercises and IEC materials and

Provision of visibility items

such as calendars, hand bags,

rain coats, posters

Negotiate with customers

whether or not to pay for

transport charges

An agronomist and

assistants need to be hired

for aerobic composting

(wind rowing method) with

monitoring.

Local Committee to decide

designated area for green

waste bags temporary

storage

To supply bags and

containers to each green

vendors for effective

separation

Motivation

Markets Vendors

Separate Green Waste

in the market

Staffs compost the

green waste and

packaging is done at

final dumping site

Market Cleaners

Collect the bags and

keep at temporary

storage in market

Action Required Production Process

Staffs transport the

compost to

designated storage for

QC tests & Field trials

before selling

Staffs deliver the final

product to customers

Track cars for transport

and storage need to be

hired. QC tests will be for

pathogens, heavy metal

contents, temperature,

moisture content, pH,

organic nutrients.


16 | P a g e

SWOT analysis for composting process option 1

•PCCD and market committee staffs have positive view on composting project and they are interested in the activities

•CESVI is proactive on piloting the compost project

•Availibility of Composting Site

•Availibility of waste transport to composting site

•Low initial setting up cost

•PCCD has similar past experience

•CESVI will provide technical staff for sustainability

Strength

•Market vendors might not separate green waste properly

•Market committee may find it difficult to allocate temporary storage for separated waste bags

•Misoperation of separated waste might occur

•PCCD staffs will need more time and resouces for transport of separated waste

•Starting with large scale production might become heavy workload for PCCD staffs

•High cost for final product storage and car rental

Weakness

•Less risk on poor community participation

•Collaboration with external producers is less complecated

•Local authorities (PCCD, Myanma Agriculture Service, Forestry Offices and Local Authrity Departments) may support

•A good option for reducing landfill overflowing

•Less risk on complaints from neighbours

Opportunity

•Skyrocket transport charges

•Extra care on all aspects is necessary as similar experience in the past was not successful.

•Too expensive to do quality control tests locally

•Limited resource person for technical knowhow of windrow composting

Threat


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Option 2 for community based small scale compost production process As stated in the diagram below, the composting option (2) should also be taken in consideration starting with analyzing the role of the market vendors. Effective separation by vendors as well as collection and keeping bags at designated area by the market cleaners is the same as that of option 1. Unlike a large scale production, option 2 is community focused small scale production in the markets (with the permission of local authorities). At the very beginning, CESVI will recruit the agronomists, agronomist assistants and community facilitators (CF). Before starting the pilot projects, induction training and capacity building training as well as a technical skills assessment will be conducted for each staff. The agronomists will be responsible for compiling training manuals, setting up trainings and workshops as well as participatory exercises and field trials with the assistance of other staffs and support of CESVI and local authorities. Before starting any production activities, CESVI’s community facilitators will identify and select individuals who are interested in trialing composting of market green waste. These individuals can be of any backgrounds including market vendors themselves but possibly those needy people living locally. After selecting a number of people (preferably 8 to 12), the market green groups will be formed and they themselves will select a leader. After having the permission from the local authorities for a designated composting site in the market, CESVI will provide at least three concrete composting structures for each market. These structures should be 8-10 m in length and width and 1m in height with two to three compartments for easy turning. Once well organized groups are formed for each market in the townships, the agronomists will set up training and participatory workshops and exercises for the group so that group members will become small scale composters. At the same time, the responsible agronomists will start listing down necessary tools and equipment so that procurement can begin before starting actual activities. After receiving tools and other necessary items, small scale composting with community participatory approach will commence. (How doing it practically is reported n the manual attached in the annex). QC tests will be conducted similarly to the option 1. At the beginning, the agronomists will be responsible for carrying out the tests as well as for sending the sample to the labs as part of QC. The agronomists will also explain the test results to the groups so that the group members will gradually become competent to do the tests by themselves. The agronomists will have to ensure the replicability of composting practices and the effectiveness of the final product. To do so, field trials are recommended. In terms of sharing the benefit of end product, some group members may have their own small garden. Therefore, they are eligible to take their own compost ratio to home. Others may sell and share profit. Group members may also need to be connected to agricultural product distributors and NGOs launching good agricultural practices projects locally and nationwide, possibly with the facilitation of CESVI, so that the group members may have a good chance to extend the scope of their composting scale. The motivation necessary for market vendors and cleaners follows the same steps described in the option 1. Group members will be well motivated when they receive ongoing trainings and IEC materials, participatory workshops and visibility items as well as sharing profit of selling end product. With the facilitation of community facilitators, the group members will have their own meetings and discussions with the aim of improving the mode of composting as well as for troubleshooting. It can even be expected that market green group members extend their scope of composting by including restaurants waste and household kitchen wastes later on. A brief outline diagram and SWOT analysis for this production process option 1 can be seen below at 4.4.5 and 4.4.6.


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Brief outline for required actions and compost production process: option 2

Required Actions

CESVI's community mobilizers (CMs) will identify interest person on green composting at township

level

Market Green Groups (MGGs) for each market will be formed with the facilitation of CMs in target

townships

Patron and leaders selection for each market by MGG members and local authorities (LA)

Site selection and identifying the needs of composting facilities by MGGs with the support of

LA and CESVI

Technical Training, IEC and input provision and participatory exercises at pilot sites by agronomist

and CMs

Ongoing trainings and monitoring activities by agronomist &CMs for production process, basic

Quality Control tools at pilot project areas

Contacting potential buyers and future collaborator for market development and R&D

Production Process

Market vendors separate organic waste and keep waste in bags in the market

Market Cleaners Collect the bags and keep at temporary storage in market

MGGs will compost the green waste at designated area that may be at market or somewhere else

permited by LA

Pacakging and storage will be done by MGGs onsite or offsite according to their decision

MGGs will develop compost market locally . After QC tests, MGGs deliver the final products to

customers

Motivation necessary for the market vendors and cleaners is the same as mentioned in option 1. For the motivation of composting group members, well trained community facilitators (CESVI staff) will identify the tools based on the needs, preferences and degree of knowledge of the group members.


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SWOT analysis for composting process option 2

4.5. Estimated composting schedule for both options

Estimated composting schedule can be seen as illustrated in below tables 5.6.1 and 5.6.2. Often, the technical literature states that aerobic composting with frequent turning will fasten the composting process and the end product can be ready in two months. In this study, it is estimated that an aerobic composting process (including QC tests and packaging) may be completed in 15 weeks.

•PCCD and market committee staffs have positive view on composting project and they are interested in the activities

•CESVI is proactive on piloting the compost project

•Availability on Composting Site and transport

•Good market waste management by forming market green groups

•Low initial setting up cost with more participation of local community

•Good income generating activities for local poor

Strength

•Market vendors might not separate green waste properly

•Local authority may find it difficult to allocate composting site

•Limited spaces for construction of compost structures

•Poor community participation

•Weak in team spirit

•Weak in setting rules and regulations by MGG leaders

•poor management of leaders

Weakness

•If pilot initiative activities are successful, participation of local community will gradually be increased

•As yet, there is no similar experience developed

•A good option to development of community based long term good solid waste management pracrice.

•Local authorities (PCCD, Myanma Agriculture Service, Forestry Offices and Local Authrity Departments) may support

•If the pilot activities are successful, not only direct beneficiaries but indirect beneficiaries will also be interestesd in involvement

Opportunity

•Limited resource person on technical knowhow of efficient composting and trouble shooting

•Collaborating with external companies might be complicated

•Too expensive to do quality control tests locally.

•Skyrocket transport charges

•People living nearby composting site may complain on smell because of improper operation

Threat


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Small scale composting schedule W

eek

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Stru

ctur

e1

Accu

mul

atin

g

raw

mat

eria

l

Pilin

g/Fi

lling

the

stru

ctur

e

Stru

ctur

e2

Accu

mul

atin

g

raw

mat

eria

l

Pilin

g/Fi

lling

the

stru

ctur

e

Stru

ctur

e3

Accu

mul

atin

g

raw

mat

eria

l

Pilin

g/Fi

lling

the

stru

ctur

e

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

QC

test

s an

d

pack

agin

g

QC

test

s an

d

pack

agin

g

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

QC

test

s an

d

pack

agin

g

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

Mon

itor

ing/

Trun

ing

As shown in the table, accumulation of raw material such as organic market waste and soil to form layers in the structure should be done in a week. After that, filling up the structure should be done. Two weeks after filling the structure, turning to another compartment needs to be carried out. While turning, monitoring of temperature, moisture, pH and other anomalies are necessary. Turning and monitoring on every two weeks intervals should be carried out on until the final product is achieved. After filling structure 1, raw material collection for structure 2 and 3 is needed so that subsequent composting will be accessed. Once all structures are fully occupied, the raw material may also be piled on the ground by digging a 60-90cm storage pits beneath the ground. For pilot scale, only three structures are enough. Later on, according to the degree of success, the organizational management of composting may be extended. Large scale composting schedule

Wee

k

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Stru

ctur

e1

Accu

mul

atin

g

raw

mat

eria

l

Form

ing

win

drow

s

Stru

ctur

e2

Accu

mul

atin

g

raw

mat

eria

l

Form

ing

Win

drow

Stru

ctur

e3

Accu

mul

atin

g

raw

mat

eria

l

Form

ing

Win

drow

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

QC

test

s an

d

pack

agin

gQ

C te

sts

and

pack

agin

g

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

QC

test

s an

d

pack

agin

g

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

Mon

itori

ng/

Trun

ing

As stated in the table above, long narrow windrows can be formed by accumulating raw material. As windrowing is for large scale and hence less staff are needed because turning will be done by front ended buckets, loaded tractors or embedding pipes for good aeration. If turning is done at regular interval (14 days is optimum), the composting process can be finished in 75 days. Windrows can be formed as raw material accumulated as long as the space is available. Monitoring by technical staff is needed in order to check the composting stages and potential anomalies.


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4.6. Comparison on necessary input of production options 1 and 2

Option 1 Option 2

Staff Facility Equipment/ Materials

Staff Facility Equipment/ Materials

Agronomist ×1

Transport to composting site

Bags and baskets for vendors

Agronomist ×3 (For each Township)

Composting Site

Bags and baskets for vendors

Assistant Agronomist ×2

Composting Site

IEC and visibility items for everyone involved

Assistant Agronomist ×3

3×concrete tanks with compartments

IEC and visibility items for everyone involved

Community Facilitators × 3

Compost Storage

PPEs for everyone involved

Community Facilitators × 6

Compost Storage

PPEs for everyone involved

Temporary workers ×10

Transport to Storage

Composting Tools (eg. Spades, forks)

Market Green Group members

Transport to storage

Soil, animal dungs, (Optional: EM, chemical N and P)

PCCD Staff Packaging and QC tests

Windrow pipes Market Cleaners

Packaging and QC tests

Composting Tools (eg. Spades, forks)

Market Cleaners

Delivery to customers

Front end buckets loaded Tractors for turning (Optional)


Concrete Compost structures

As shown in the comparison table, option 1 needs less technical staff than option 2. For both options, funding will be necessary unless composting sites and transport facilities are provided by the local authorities. Packaging is not mandatory for both options if private companies are interested in collaborating. These private companies may also be responsible for packaging, labeling, branding and delivery to customers. Unlike the past experience of PCCD who tried to implement the option 1 for some time, ad-hoc agronomists and assistants will ensure the quality control and will help developing the market with the facilitation of the community facilitators for awareness on effective waste management practices. In terms of sustainable solid waste management, option 2 is preferable because it involves community participation. If the groups are successfully formed, small scale production is the most suitable for the group members at the initial stage. Later on, composting not only of market waste but also from other sources such as restaurants, schools and parks might be carried out. Although option 2 seems more expensive to implement, if funding is available, it is strongly recommended. In any case, composting pilot projects should not be started unless awareness campaigns are conducted for the market vendors, the market cleaners and the group members responsible of the production.


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4.7. Estimated cost analysis for compost production process option 1 and 2

Sr. Input Name Option1 Option 2

1 Agronomist

(350000 Kyats per month)

350,000 K 1,050,000 K

(3 agronomists)

2 Assistant Agronomist (250000 Kyats

per month)

500,000 K

(2 assistants)

750,000 K

(3 assistants)

3 Community facilitators

(150000 Kyats per month)

450,000 K

(3 community

facilitators)

900,000 K

4 Temporary workers

(3500-5000 Kyats per person per day)

35,000-50,000 K

(10 workers)

NA

5 Storage Rental per month

(Depend on size and location)

600,000 K-1,500,000 K 600,000-1,500,000 K

6 Bags for separation

(60cm×90cm) 160 Kyats

48,000 K (for 100

vendors. 3bags for

each)

48,000 K (for 100 vendors.

3bags for each)

7 Baskets (45cm in diameter, 60cm in

height)

1200 K

240,000 K

(for 100 vendors. 2 for

each)

240,000 K

(for 100 vendors. 2 for

each)

8 Concrete Compost Structure

(150,000 for each)

NA 1,350,000 K (for 9

structures)

9 Refreshment Cost at Trainings &

Workshops(300-500 K/Person)

NA 390,000-650,000 K

10 sessions for 130 people

10 QC cost for laboratory tests

(Pathogens, Heavy metal and Organic

N,P, K&C:N)

450,000 450,000

11 50Kg Packaging Bags(200-600 K)

Depend on quality & design and size

60,000-180,000 K

(for 300 bags)

60,000-180,000 K

(for 300 bags)

Estimated Total Cost 3,048,000-4,218,000 K 5,838,000-7,118,000 K

Main costs related to the set up of the production are reported in the table. Other items not listed such as composting tools, equipment and materials (spades, shovels, thermometer, pH meter and so on) are to be considered but at this stage they do not need to be accounted. In addition, training, workshops, IEC materials, visibility items and personal protective equipment costs will have to be considered for both options based on the existing knowledge of the target beneficiaries. Among these, transport charges are difficult to estimate because charges are extremely variable according to weigh and type of the product, distance and frequency, number of days needed etc. Generally speaking, the estimated cost for the option 1 are lower than those of the option 2. Therefore, if funding is limited, option 1 should be preferred. On the other hand, whether it is economically feasible or not, the biggest benefit expected from the option 2 is active community participation and involvement in sustainable solid waste management practices.


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5. Stakeholder analysis In this chapter, the main stakeholders related to the production of the green compost are listed, described and analyzed. The stakeholders considered in relation to production of green compost are the following: Primary stakeholders (Township Level)

Individual Households, restaurants and Markets in target townships

Market Managers in Target Townships

Market Vendors in target Townships

Market Cleaners in target Townships

YCDC-PCCD Staffs of targeted townships

Township Community Facilitators (CESVI-Staffs)

Township MAS Officers

Township Forestry Officers

Township Administrative Officers Stakeholders at Yangon City Level

YCDC-PCCD Senior Staffs

CESVI Senior Staffs

City of Turin (AMIAT)

ITHACA

JICA

UN-HABITAT

Multimedia for awareness on separation of waste Stakeholders at National Level

Individual Growers

INGOs/LNGOs/UN implementing good agricultural practices

Government Departments (many of them have their own gardens and farms)

Agricultural Extension Agents

Compost wholesalers

Compost Sale Representative

Potential High Scaled Organic Fertilizer Producers

Potential Low Scale Organic Fertilizer Producer

Multimedia as marketing tools

Allocation of all stakeholders based on five different types of participation The stakeholders were classified into five different categories based on the degree of involvement in the activities of the project related to the production of green compost. The informative stakeholders are those who have either experience in composting or affiliation with the activities of green compost production in Yangon City but are not going to take an active part in the SWM project. The consultative stakeholders are those who could provide specific and relevant input to the research but, for different reasons, are not considered to have a potential role in the next phases of the green compost even though participate in other activities of the project. The involved stakeholders have a potential relevant role in the green composting and were contacted for the feasibility study. They might intervene at different levels in the production/marketing chains of the compost. The implementers are expected to be involved in one or another stage of the activities related to the composting. The decision makers are those who are expected to lead the process related to the green composting and the pilot projects that might follow this feasibility study.


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Stakeholders allocation table according to their level of involvement in the project

Informative Consultative Involved Implementers Decision Makers

1.Township Officers (Department of Agriculture / Myanma Agriculture Service) 2.Township Forestry Officers 3. Township Administrative Officers 4.JICA 5.UN-Habitat

1.AMIAT 2.ITHACA

1.Natural Fertilizer Industries (Low Scaled and High Scaled) 2.Potential Buyers 2.1.INGO (WHH) 2.2.Local Growers 2.3.Organic Farmers 3.Multimedia (awareness and marketing)

1.Project Awareness Coordinator 2.CESVI-Short Term Experts 3.Community Facilitators 4.Township PCCD staffs and market managers 5.Market Vendors 6.Market Cleaners

1.YCDC-PCCD Senior Staffs (Head Office) 2.CESVI Senior Management Team

Informative stakeholders - Some stakeholders such as the Department of Agriculture DOA (former Myanma Agriculture Service / MAS), Forestry Officers, Administrative Officers at Township level, JICA and UN-habitat at Yangon City level are expected to have a very low degree of direct involvement in the project activities. JICA (Japan International Cooperation Agency) and UN-Habitat are currently co-implementing a urban planning capacity building program with the YCDC which include the preparation of the Yangon Development Master Plan (up to 2040). The Master Plan needs to be taken in account in the final phase of the pilot projects that could be developed on the base of this feasibility study. In order to avoid overlapping of certain activities, it is worthwhile sharing the project information with the informative stakeholders as well as accessing their information on their current implementation activities in Yangon City. Sometimes DOA/MAS conducts field trials for practical composting. They might be contacted for some general advice during the production process. Also the Forestry Department may need to be contacted for environmental regulations as they are in charge for this regulatory aspect. Even though these experiences are relevant to the feasibility study, there are the following limitations:

(a) They don’t use waste from urban origin; (b) The quantity of compost is just enough for internal use of those departments.

The activities conducted in each township have to be shared with the Township Administrative Departments and other local authorities in order to strengthen synergies with similar programs that might be initiated in the next few years. Consultative stakeholders - AMIAT (Azienda Multiservizi Igiene Ambientale Torino) the public waste management service provider of the City of Turin is willing to advice on green composting pilot activities in Yangon City. AMIAT has several years of experience on similar activities in City of Turin in Italy. In relation to the project, AMIAT conducts a field analysis to improve the SWM existing strategy of YCDC, the design of draft guidelines to detail existing regulations and participatory workshops for capacity building. ITHACA (Information Technology on Humanitarian Assistance, Cooperation and Action) is a project partner with the responsibilities of training local PCCD staffs on analysis of the SWM context and training on GIS basic concepts, design of Database and Forecasting model and advanced GIS training to PCCD staff (thorough missions to Myanmar and remote assistance from Italy). Despite a limited degree of involvement in the pilot projects developed after the feasibility study, those stakeholders can be very useful in providing technical assistance to some activities as they contribute transversally to the improve the quality of all the activities of the project.


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Involvement of potential stakeholders

Involved stakeholders - For the composting process, possible collaborations with small and high scaled potential producers are necessary and need to be discussed. The potential degree of involvement of those stakeholders is high. Natural fertilizer industries as well as potential customers play an important role in commercial composting. In order to assess the production process, the market size, nature and the potential of demand and supply, pricing setting and changing, storage and transport, it was necessary to organize face to face discussions with organic fertilizer producers. For example, a meeting with U Khin Mg Than of Bio-supreme Company, Research and Development Director, was organized during the feasibility study to assess their interest in being involved in experimenting commercial composting by urban market waste. At the moment of the feasibility study, though, Bio-supreme expressed little interest in a potential collaboration of commercial production in Yangon City because they do not have yet enough information on the quality and the effects of the product. Likewise, consultation with potential partners in assessing the quality of the project as well as in the initial phases of marketing is viable. Welthungerhilfe (WHH), an INGO, which implements sustainable development projects with good agricultural practices in Myanmar, including in Htan Ta Pin Township in Yangon City might be a very suitable external partner. At a meeting with Bryan Berenguer of WHH, the head of project in Htan Ta Pin, facts and figures on amount of compost bags needed for the project, ways to promote compost, pricing, etc. were discussed. Although Htan Ta Pin project is supposed to be concluded by the end of April, 2014, there might be a possible extension of three additional years. In this case it is advisable to ensure the involvement of WHH in the composting project. Once the project is formally extended, WHH in Htan Ta Pin is likely to become potential customer because WHH agreed to promote composting through:

(a) Field trials; (b) Subsidizing to local farmers.

Multimedia such as newspaper, radio and television program can also play as a major role because of their capacity to raise awareness among the citizen citizens as well as to ensure market penetration tools for commercial composting.

Collaborative stakeholders - PCCD staffs at target Township level, CESVI’s Awareness Coordinator, short term experts, community facilitators, market vendors and local community are likely to be involved and collaborate for the compost production. We refer to local communities as a group of individual household


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living close to the markets in the target townships. They might an important role in generating participation through the establishment of working pilot groups. Raising awareness on separation of dry and wet waste is considered as urgent matter. Because of the limited practice of waste segregation (wet from dry waste) at household level, CESVI’s Awareness Coordinator is taking responsibility on it in collaboration and with the support of PCCD staff that have capacity to influence the local communities. After achieving considerable level of community’s awareness, composting of household waste will need to be re-assessed. More than twenty market vendors were interviewed and discussed on efficient daily waste generating options. Once CESVI provide IEC materials, the percentage of waste separation is likely to increase gradually. Local community need to learn to comply with the rules and regulations on good solid waste management set by the local authorities. Experts in recycling will be working with CESVI for reducing recyclable solid waste and if recycling awareness activities are successful, there will be a side advantage for an effective waste separation. CESVI’s community facilitators (CF) will become key persons for the delivery of key messages and IEC material to the target beneficiaries. CFs will become the focal persons in the target townships for community facilitation. Decision Makers - YCDC-PCCD senior management staff at head office level and CESVI senior management team are the decision makers. So far, YCDC senior staff have demonstrated to be supportive, attentive and responsive to any concern related to the green compost. Further discussions with senior decision makers will be needed after the completion of the feasibility analysis of each township. YCDC-PCCD are the principal actors dealing with most of the decision making, supervision, management and financing of governmental sanitation activities in urban areas. As solid waste management is widely perceived as a municipality responsibility it lays on the priority list on the local authorities’ agendas being its improvement in the mandate of the municipal committee. A number of interviews were conducted with PCCD’s senior staff member including the deputy head of department, the executive engineers, each township supervisors and staff members at township level. CESVI is proactive in liaising with the YCDC-PCCD at the local level, the City of Torino and ITHACA. CESVI is also cooperating with project partners in the information sharing and in the definition of strategies for implementation of joint initiatives. Increasing the people awareness on good practices of dry and wet waste separation can have very positive impact not only on the PCCD services but especially on the sanitation and health conditions of the citizens. Raising awareness and concerns on these topics makes the population more conscious about environmental and health risks connected with an improper disposal of household, market and industrial waste. Besides, individuals in target townships will gradually get to know the economic value of green waste. The awareness activities will be carried out by CESVI in cooperation with PCCD. They include production of IEC material and use of multimedia as an efficient tools for raising awareness and for market penetration. CESVI is currently collaborating with local and international experts for promoting the reduction of solid waste management systematically by promoting the composting of the green waste and reusing and recycling everything reusable and recyclable. Therefore, CESVI is standing as an influential partner on green composting of market waste in the target townships. Besides that, CESVI is fully responsible for piloting the project by collaborating with short term experts for the feasibility analysis and development of suitable methodologies. In terms of green composting, if the pilot project activities seem promising, CESVI will again further its steps towards replication and scaling up. Stakeholder analysis As it is possible to see in the table in the next page, if the experience with the green composting produces a promising result, all Myanmar local stakeholders will increase their interest in such a kind of experience.


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Stakeholders allocation table according to their level of interest and influence in the project

Name Class Scale Group Interest Level Degree of

Involvement Affected Influence

Now Future

YCDC-PCCD Government Local Staffs High High Decision makers

Most High

Market Committee

Government Local Staffs High High Collaborative Most High

CESVI INGO International Staffs High Moderate Decision makers

Moderate High

Multimedia Private/Public National Radio, TV, Journals

Moderate Moderate Involved Moderate High

AMIAT Public Foreign Staffs High Moderate Collaborative Low Moderate

ITHACA INGO International Staffs Moderate Low Collaborative Low Low

Markets Local

Community Local

Market Vendors

Low High Collaborative High High

Households Local

Community Local Individuals Low High Collaborative Moderate Moderate

Low and High scale Producers

Private/Public Local Companies Low Moderate Involved Moderate Low

Organic Farmers

Private/Public Local Individuals Low Moderate Involved Moderate Low

e.g. WHH NGOs/UN International/Local Organizations Moderate High Involved Moderate Low

It is possible to analyse the stakeholders from a different perspective. As illustrated in XY axis diagram, in quadrant 1, the most affected stakeholders with low influence are allocated. They are local community such as individual households, restaurants, schools and parks and natural fertilizer producers as competitors. It is necessary to ensure that their voices are listened on what and how they think on composting of urban waste. Most affected stakeholder with high influence are of local authority including YCDC-PCCD and market committee members, market vendors, potential small scale producers and customers stated in quadrant 2. Their opinion and willingness on participation are of prime importance in this pilot study. Similarly, high influenced stakeholders are CESVI, AMIAT and multimedia such as radio, television program, journals, newspapers etc and are listed in quadrant 3. The positive influence of these stakeholders is necessary for the activities. In quadrant 4, least affected stakeholders with very little influence are listed. They are ITHACA, JICA and UN-HABITAT. Relevant information need to be shared with these stakeholders. Based on the XY axis analysis, potential producers, customers, market vendors and PCCD are identified as the most affected and, at the same time, the most influential stakeholders in relation to the compost production. In the following chapters of the feasibility study, those stakeholders and their approach to the compost is constantly taken in account to draw the final recommendations.


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XY axis analysis to reveal the standing point of the potential stakeholders


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6. Economic analysis on the initial small scale production: cost and revenues The compost production cost can be budgeted into three categories:

(a) Initial setting up cost for composting facilities; (b) Salary of employees; (c) Costs of equipment/tools for continuous production and QC.

Production Cost Amount in Kyats (estimation)

(a) Initial setting up cost

Building compost structure×9 1,350,000

Provision of bags and baskets (100 vendors) 300,000

Refreshments for Trainings and workshops (10 sessions for 130 people) 500,000

IEC and visibility items (150 people) 1,500,000

Personal Protective equipment for those practically involved people (100) 100,000

(b) Salary of employees

Salary of 3 agronomists × 12 months 12,600,000

Salary of 3 agronomist assistants × 12 months 9,000,000

Salary of 6 CFs × 12 months 10,800,000

(c) Cost of QC, equipment and materials

QC (Laboratory tests) 450,000

Equipment and tools (spades and packaging bags etc.) 300,000

Miscellaneous costs 500,000

Estimated total amount* 37,400,000

The estimated amount* is calculated by assumptions which closely reflect actual market costs. The amount of the estimated costs may vary according to the inflation rate and the market prices at the time the activities are undertaken.

Estimation on net revenue per year Estimated production potential= 3 tons per day (10-12 tons of market organic waste will be needed daily) (1095 tons per year) Estimated net production* = 700 tons per year Estimated market price = 70,000 Kyats per ton Total revenue = 70,000 Kyats × 700 tons = 49,000,000 Kyats per year = 49,000,000-37,400,000 = 11,600,000 As shown in the above calculation, the net revenue of the community based small scale composting is more than 11 million Kyats. In the above estimation, transport and storage rental charges are not calculated because they are likely to be provided by local authorities for the pilot project period. The cost and benefit analysis for large scale production option 1 is not be calculated because, if the option 1 is chosen, the figures may vary largely depending on the way the interested body (PCCD, a private company, etc.) would implement the pilot project.

Net revenue = Total revenue- Total production cost

Net production* is estimated equal to 700 tons because of unforeseen factors affecting the production

such as weather, quality of raw materials, duration of the operation and QC tests etc.)


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7. Market analysis There are producers and customers at both ends of the supply chain that will benefit from the green composting. YCDC-PCCD will benefit from the service by having alternative means of waste disposal with the support of CESVI. The PCCD reports that the cost of solid waste management in Yangon City is rising. Therefore, the department is subsiding operation costs at some extent. Composting of green market waste is identified as one of the best options for minimizing landfills overflowing as well as for local organic growers and for those farmers who are interested in maintaining their soil healthy. The information on organic fertilizer applications and its market databases are extremely limited in Myanmar. According to the estimation of U Nyan Lin, Shan Maw Myay, the contribution of organic fertilizers in the whole fertilizer market is less than 5%. There are two types of fertilizer trades in Myanmar, namely (a) traditional trade mainly with partners from Malaysia, Germany and Israel and (b) border trade mainly from China and Thailand. In 2012, 800,600 tons of chemical fertilizer were imported from foreign countries via normal trade. 35,000 tons of urea fertilizer was produced in the nation. As shown in the table in the next page, the utilization of inorganic fertilizer in 2012 was nearly 4million tons. Therefore, it seemed that the tons of chemical fertilizer imported via border trade are far more significant than those related to normal trade. For many cash crops, the Department of Agriculture (former Myanma Agriculture Service) recommends applying approximately 1 to 1.5 tons of natural fertilizer per acre. Lower quantities also can highly improve the quality of the soil. The local farmers utilize various types of natural fertilizers such as Farm Yard Manure (FYM), green manure, compost, bio-charcoal, neem cake, sugarcane residues, sugarcane filter cake etc. Three well known bio-fertilizer companies in Myanmar are Bio-Supreme, Shan Maw Myay and June Industries. These producers utilize different sources of raw materials. None of them, however, use urban green waste as raw material for compost production. Also, their products are enhanced with effective microbes. In summary, there is not yet a well-developed compost market of urban green waste in Myanmar. Recommended cow dung and compost rate per acre to achieve the target yield of popular crops in Myanmar:

Sr. Crop Target Yield Soil pH Recommended rate

1 Rice 100 basket/acre 5.5-7.0 3 (ton/acre)

2 Corn 80 basket/acre 5.5-7.5 3 (ton/acre) 3 Sesame 20 basket/acre 5.8-7.0 3 (ton/acre) 4 Groundnut 50 basket/acre 5.5-7.0 3 (ton/acre) 5 Sunflower 50 basket/acre 6.5-8.0 3 (ton/acre) 6 Green gram 20 basket/acre 5.5-6.5 3 (ton/acre) 7 Pigeon Pea 25 basket/acre 5.0-8.0 3 (ton/acre) 8 Black gram 20 basket/acre 5.5-6.0 3 (ton/acre) 9 Cotton 400 viss/acre 5.5-6.0 3 (ton/acre) 10 Sugarcane 30 ton/acre 6.0-8.0 3 (ton/acre)

(Source: Technical facts for crop production by Myanma Agriculture Service, 2009) 7.1. Estimating compost market size It is interesting to calculate the estimated market size which basically depends on the market volume and the market value. These calculations were made on estimations with reference to single cropping season.


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The most common way to measure the market value in the agronomy literature is based on the following formula: (a) Market Volume:

Market volume = Number of target customers × Penetration rate

It can be assumed as estimated target customers: 5,000 Local growers Estimated Market Penetration Rate: 70% Estimated Market Volume= 5,000×70%=3,500 Local growers A market penetration rate of 70% can be achieved by promoting the compost through visibility items provisions, trainings, marketing support of UN/INGOs and advertisements on newspapers, radios and journals. (b) Estimated market value

Estimated market value = Market volume × Expected average value

Estimated market volume= 3,500 Local growers Expected average value= 4,000 Kyats × 3 bags for each local grower= 12,000 kyats Estimated market value= 3,500 Local growers× 12,000 kyats= 42,000,000 Kyats 7.2. An overview on fertilizer application in Myanmar Fertilizer Utilization in Myanmar (Metric Ton)

Region/Division Organic Inorganic

Union of Myanmar 4,415,732 3,930,370

Kachin 106629 54689

Kayah 21390 27064

Kayin 49579 34500

Chin 14779 1350

Sagaing 711798 579131

Taninthari 73663 61730

Bago East 225786 210640

Bago West 270297 265198

Magway 573633 525221

Mandalay 694618 597009

Mon 142108 144554

Rakhine 268604 189919

Yangon 190013 195688

Shan South 213552 196818

Shan North 223856 201856

Shan East 39959 38704

Ayeyarwaddy 595468 606299

Source: Myanmar Agriculture Census, 2012

As shown in table, the utilization of

organic fertilizer in the whole country is

higher than the one of inorganic

fertilizer. In the Ayeyarwaddy delta

region including Yangon and

Ayeyarwaddy divisions, the rate of use

of inorganic fertilizer is slightly higher

than that of organic fertilizer.

Therefore, there is space to encourage

the use of organic fertilizer among

farmers in Yangon and Ayeyarwaddy

Regions. As in the Ayeyarwaddy delta

the paddy production is very high, the

need of organic fertilizer is massive.


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7.3. Estimation on constraints of organic fertilizer market

Indicators

Issues/Constraints

Price Unfavourable fertilizer/output ratio High production cost Uneconomic use of compost Low output price Low crop response

Accessibility Lack of market information on national, regional and local prices and quantities

High inland road freight rates Limited quantity and use knowledge by farmers

and public Not all wholesalers want to distribute compost

because of low popularity

Quality of Compost Used at Farm Level Lack of legal and regulatory framework for monitoring product quality

High risk on presence of plant pathogens in the compost

Market Development Inadequate financial availability for long term Limited resource person on technical knowhow

of research and development

Because of the absence of a proper compost market in Myanmar, there are serious challenges and limitations in the compost market development, as shown in the table above. Therefore, the best option is starting with a small scale market. Compost market databases should be developed and shared with the public after achieving some degree of success on proper compost market. In the past, there were a number of compost plants including the ones operating under Ministry of Agriculture and Irrigation and PCCD itself. After a few years, the compost plant ceased production due to a number of various reasons which likely include high production cost, lack of proper quality control protocol and laboratory facilities available at that time. Furthermore, limited crop response to compost is also a major threat. Beside, unless proper branding and packaging, it is not easy to compete with chemical fertilizers and to penetrate fertilizer market. At present, there are many opportunities to upgrade the quality control protocols. More importantly, there are increasing number of organic rice and vegetable growers recently because of a rising number of health concerned consumers and intervention of UN/INGOs in good agricultural practices particularly in relation to sustainable soil fertility management. 7.4. Compost market segmentation Six major market segments for compost have been identified based on buying capacity. The following table shows the types of potential customers in the local target markets:


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Sr. Name Type of business Degree of potential interest

Remark

1. Welthungerhilfe (Htan Ta Pin)

INGO (Livelihoods) High Subsidizing to growers and product promotion

2. Shan Maw Myay Bio-Fertilizer Company

Medium for present High for future

Possible collaboration for future

3. Min Dhamma (Nurseries and ornamental shown in picture 10 & 11)

Nurseries and ornamental growers

Low because of cheaper substitute (Sand and Bio charcoal mixture)

Many growers admit that the effect of compost is better. If the price is reasonable, they will buy.

4. MyayPadaytha (Fruits & Vegetables, nurseries)

Horticultural activities

Low because of cheaper substitute (Sand and Bio charcoal mixture)

Many growers admit that the effect of compost is better. If the price is reasonable, they will buy.

5. Organic Farmers (Tha Ba Wa organic rice producer)

Organic Rice & vegetable Production

High but cheaper options are preferable

Currently using value added compost such as compost and pig dung

6. Government Departments (Eg. PCCD)

Local Authority Medium (PCCD has more livestock activities than gardening)

PCCD has past experience in composting for use of their own farming activities

As reflected in the table, there is a number of potential customers for green compost production. Additionally, many residential houses in Yangon have ornamental plants and / or small gardens. Therefore, it is worthwhile trying to develop a compost supply chain through supermarkets like in many other cities throughout the world. 7.5. Target market penetration strategy The green composting project will target buyers of organic fertilizers and soil enhancers. This market is expected to grow significantly in a few years because of a growing number of organic growers and rice producers locally. This market growth will be fuelled by the interventions of UN/NGOs and local companies such as Shan Maw Myay and more health-conscious consumers. Both growers and local people can be better informed through the agronomists and the community facilitators about the potential side effects associated with chemical fertilizer products both on their health and on the environment. In fact, natural fertilizer companies such as Shan Maw Myay and Bio-Supreme are already organizing awareness campaigns in the form of meetings and workshops so that the growers as well as the consumers can increase their knowledge on undesirable effects of chemicals and their residues in the crops. Another effective tool to penetrate the market is setting up trials plots and sharing the results with farmers. (See picture 14 & 15) 7.6. Market needs in terms of natural fertilizer and competitors As Myanmar is an agro based country, several companies compete in the nationwide fertilizer market. Their major selling points are performance and price. However, health-conscious consumers have created growing competition between chemical and organic products. Therefore, this commercial composting competition can be lead in two directions: towards direct and indirect competitors. The direct competitors would include other organic fertilizer producers such as Bio-Supreme, Shan Maw Myay, Nat Aww Zar and Myint Myat who are capable of producing sufficient product to supply the growers locally. At present, there are few compost producers in Yangon City who still do not meet this need. Furthermore, the compost producers do not sell the compost as an all-in-one product. Instead, compost is sold an enhanced product. For example compost is mixed with beneficial microbes such as Trichoderma. The organic fertilizer companies access raw material from other sources rather than from market green waste. For instance, Bio-supreme Company access raw material from wild rice in Pan Ta Naw Township as well as from river grass in Southern Shan State.


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Considering those differences, the market waste composting project would not be affected by direct competition in Yangon City. Additionally, there are only few organic fertilizer producers in the entire Myanmar and therefore, the direct competition on a local basis is extremely limited. According to U Nyan Lin of Shan Maw Myay, bio-fertilizers producers are not direct rivals because Shan Maw Myay and the other bio-fertilizer producers are both targeting the reduction of the use of chemical fertilizer. Therefore, major competitors for Shan Maw Myay are the chemical fertilizer producers. The indirect competitors are chemical fertilizer companies (who also are a part of the target market) such as Golden Key, Myanma Awwba. However, their products are more costly and do not address the market's trend toward organic, natural soil enhancers. Some companies such as June Industries producing Spirulina (Blue Green Algae) bio fertilizer, Myint Myat which produce compost with pig dung , Nat AwwZar, Bio Supreme and Shan Maw Myay have begun composting operations in an attempt to go organic. Among these competitors, Bio-Supreme is a well experienced producer with very high capacity of organic fertilizer production per year. Bio-Supremes’ production capacity in Pan Ta Naw Township is 50,000 tons per year and 70,000 tons per year in Inle Lake. Likewise, the net production of Shan Maw Myay is 2,000 tons per year. They typically promote natural fertilizer as a value added product. Their market primarily consists of International NGOs including CESVI in the delta region after Cyclone Nargis as well as other INGOs in Chin State, local organic rice and vegetable growers. They also target farmers and growers nationwide. At this feasibility study state, the organic fertilizer manufacturers are not interested in market waste composting but once the product is available commercially, it is worth contacting them again to assess their level of interest on collaboration. 7.7. Compost market trends and product development in Myanmar Current trends in the market greatly favour the start-up of green composting due to sky high prices of chemical fertilizers. Because of intensive mono cropping, soil test result of Htan Ta Pin Township shows extremely low level of organic matter. Therefore, soil amendment with natural fertilizer is urgently required in order to secure food and livelihoods of local people. However, when a comparison is made between organic and chemical fertilizers, because of the slower effect of natural compost, farmers still heavily rely on chemical products in order to achieve their target yield. Despite knowing the side-effects of chemical fertilizers, farmers are not willing to take the risk of producing low yield due to the slower effect of natural fertilizer. Therefore, chemical fertilizers will influence the fertilizer market in the foreseeable future. The demand for compost to use in organic farming and other applications is expected to grow gradually because of the dwindling of soil organic matter. Dr. Than Than Sein, a local sector expert, suggested producing value added compost such as compost with the addition of lime, gypsums or animal dung in order to meet the need of nationwide growers. On the other hand, U Nyan Lin, Managing Director of Shan Maw Myay thinks that if good quality compost can be produced, it is not necessary to upgrade the compost with the advantage of avoiding additional costs and treatments. In any case, in relation to the project, it is recommended the value adding should be considered at the stage of pilot scale production to introduce a qualified product and to meet the needs of the end users. There should also be a major concern on toxic free production (free from pathogenic microbes and heavy metals) compost so that the product will be able to compete with other high tech bio-fertilizers. Proper branding and high quality packaging are of prime importance in developing a new market.


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7.8. General overview on compost market

Explanation of the product and market

Initially, at least 3-4 tons of compost will be produced

only from the three selected markets in target

townships.

Therefore, 60-80 bags (50kg) will be produced daily.

Later on, the production will increase according to the

degree of success and demand.

The price of end the product should be between 3,000-

5,000 kyats per bag before value adding. Value added

compost prices range from 8,000 to 25,000 Kyats,

according to quality and performance. Prices will not be

changed throughout the year.

Before setting prices for next year, a review will be

done based on production cost and sustainability.

Customer survey will be conducted for future product

development.

Currently, there are less than 10 suppliers for organic

fertilizer locally. A marketing team should be

established with proper training.

Later on, merging, consolidation and/or technical

collaboration should be considered.

As Yangon City is strategically located close to giant

vegetable producers in Hle Gu as well as with major

paddy production area of the country, Irrawaddy Delta,

it has a massive potential on market demand.

Main Market Players The compost producer itself is a main market player

because the producer is responsible for quality

control, packaging, price setting, delivery and

promotions.

The direct and indirect competitors should closely be

monitored on types and pattern of seasonal price

changes, promotions as well as on their product

research and development.

The consumers are also major market players as the

compost market will hugely depend on their

preferences and needs.

The role of the brokers should not be underestimated

as they can be very influential in setting the market

prices of the compost.


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7.9. PESTLE analysis

Political

The political situation is not a threat for this composting project because it is co-implemented with local authorities. Therefore, current legislation and government agenda that might have an impact on the current and future activities of the project will be timely taken in consideration.

Economic

Over 70% of the total population of the country largely depend on agricultural production. As organic farming becomes developed, the needs for organic natural fertilizer will also be increased. Once the production is successful, potential low and high tech companies’ interest on merging and collaborating will gradually be raised.

Social

Public awareness on benefit of organic fertilizer is very low nationwide. In some areas, even the farmers realise the side-effects of chemical fertilizer, they do not dare to take risk shifting organic alone. Because of the expensive production costs, farmers make sure to achieve the profitable yield.

Technological

High tech natural fertilizers with beneficial microbes are available in the local market. Therefore, compost alone is not able to compete with those products. As a result, value adding, which requires high technology, and upgrading the production process need to be considered for the future.

Legal

Before the practical compost production starts, it is necessary to inform the local administrative authorities with a detailed plan. If branding and marketing are to be developed, it is necessary to register at Ministry of Economic and Commerce.

Environmental

Aerobic composting which has less environmental constraints than anaerobic method will be carried out in order to reduce methane gas emission and to prevent ground water pollution, concrete structures for small scale production will be set up.

As shown in the PESTLE analysis table, there should be no major constraints in terms of Political, Economic, Social, Technological, Legal and Environmental factors that could affect the commercial green compost production during the project period. After the project intervention is completed, local beneficiaries should carry on the production with their own capacity and hence they are expected to be able to conduct further development as necessary. The project implementing phase should include basic community awareness, compost production and marketing. At the time CESVI’s composting project phases out, there should be in place strong connections between local communities and other urban development project implementing bodies in Yangon City such as ADB, JICA and UN-HABITAT as these organizations are planning to intervene at least until 2040. A major constraint to the success of the project might be community participation because of the limited spare time as well as the limited team spirit that target beneficiaries could show in relation to the production of compost on a sustainable long term base.


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7.10. Analysis of the potential of supply based on the production process

Tons of market green waste/day

Duration of Production

Tons of end product/ day

Price Setting of each compost bag (50kg) in Kyats


10-12 tons (selected market in 3 target townships)

70-90 days 3-4 tons (60-80 bags)

Compost + Animal Dung= 8,000 Compost+ EM= 8,000 Compost Alone= 3,000-5,000

1-3 days in Yangon 5-10 days depend on location

As shown in the supply analysis table, at the initial state, 60-80 bags of 50kg compost may be produced on a daily base if large scale composting is chosen for the pilot project. After adding a number of days for QC test and packaging, the final product can be produced within 70-90 days. Estimated price for final product should not be above 5,000 Kyats because of the availability of cheaper substitute products locally. After receiving orders, two types of delivery options can be considered as: (a) a Standard Delivery Option which takes 1-3 days in Yangon City areas and 5-10 days for out of Yangon City depending on distance and (b) a Advanced Delivery Option which is same day delivery for Yangon City and 3-7 days for out of Yangon City depending on distance. Initially, the supply will only be potentially available for local customers. After achieving some degree of success, the size and scope of composting will be extended. Potential of supply largely depends on production power. Thus, active participation of community somehow influences the efficiency of the compost production. After raising community awareness and active participation, the production power will gradually be increased. The scope of the target market will be then widened accordingly. 7.11. Types and prices of common fertilizers used in Myanmar (2012 and 2013)

Common Name of Fertilizer

Type of fertilizer

Content (N:P:K) Price in 2012(Kyats) Price in 2013 (Kyats)

Urea (Myanmar) 50kg Inorganic 46:0:0 15,000-17,000 14,000-15,500

Urea (Import) 50kg Inorganic 46:0:0 19,000-21,500 17,000-19,500

Compound (50kg) Inorganic 16:16:8 35,000 34,000



Bio-Supreme (50kg) Organic EM based 81,00-21,055 7,300-21,055

Green Leaf Foliar (500cc) Organic Unknown 3,000-4,500 2,600-4,000

(Source: Sale person in Magway, Myint Myat and Awwba Companies, leaflets of organic fertilizer producers) Both organic and inorganic fertilizer can be found in the market in Myanmar. There are more than 100 brand names for all types of fertilizers. The prices vary significantly according to the country of the product’s origin, distributors and components. Generally, fertilizers imported from China are less expensive than those imported from other countries such as Korea, Israel and Thailand. No matter how they differ in brand names and trade names, the most wanted components in the chemical fertilizers bought in Myanmar are N, P and K. Urea and compound fertilizers with various ratios of N, P and K contents are very common. The price of compound fertilizer with high percentage of N:P:K is substantially higher than the local produced urea. There are five urea fertilizer production plants in Myanmar. Among them, only three plants are in operation. Except urea and locally produced organic fertilizer, other compound fertilizers are imported from foreign countries and mainly from China. On the other hand, organic fertilizer is not as popular as inorganic fertilizer due to low crop response in the short term. The majority of farmers and growers prefers inorganic fertilizer to organic fertilizer, because by


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using inorganic fertilizer farmers get a prompt crop response. As a cause and an effect of this, only a handful number of organic fertilizer producers are trying to penetrate the Myanmar market. IN addition, many growers still do not realize the negative side effects of chemical fertilizer yet. The prices of the fertilizers reached a peak in 2012 and then slightly dropped in 2013. The prices are expected to fall remarkably in 2015 because of the establishment of the ASEAN free trade zone in Myanmar. In order to avoid taxes, currently approximately 90% of the imported fertilizer is from China via land border channels. After entering the ASEAN free trade zone, fertilizers are likely to be directly imported from ASEAN countries such as Thailand, Malaysia and Indonesia. In general, the wholesale and retail prices of the chemical fertilizers are the same as the company price. More bags are sold out, more commission fees the wholesalers and retailers can earn (500 kyats for a 50kg bag). In the case of the compost, there will be a limited number of retailers -except supermarkets- because the volume of the compost normally needed in the farm is much higher than that of the chemical fertilizers. At the retailer level, chemical fertilizer can be purchased at 1kg to 50 kg bags. Retailers might not have space for storing a large number of bags of compost. Fertilizers prices depends on foreign currency exchange rate and transport charges. Fertilizers prices are relatively more stable than the prices of pesticides. Usually, only a slight change in price occurs for the inorganic fertilizers from one cropping season to another. The prices of organic fertilizers such as Bio-Supreme and Shan Maw Myay are set at the beginning of the year and do not change throughout the year. The cheapest prices can be accessed by purchasing the product directly at the production plant. For instance, the transport charge of a 50 kg bag from Yangon to Magway is 2,000 Kyats. Transport charges vary widely from region to region according to the distance, the weight of the product, the quality of roads etc. According to U Nyan Lin of Shan Maw Myay, transport charges can be considered the biggest threat in penetrating the organic fertilizer market in Myanmar. As the fertilizer prices are expected to drop by 2015, the natural fertilizers producers will face a serious challenge in finding ways to minimize the production and marketing cost. Comparison on price setting examples (Source: Bio-Supreme & Shan Maw Myay) Bio-Supreme Bio Fertilizer prices in Kyats for 2013

Name of Product

Product Type

Weight Direct Debit Price

Credit Price (Yangon)

Plant Yangon 3 months

6 months

9 months

12 months

Biosupreme

Bio Fertilizer

50 kg 7,300 8,100 8,905 9,345 9,780 10,220

Biosupreme (3in1)

Bio Fertilizer

50 kg 12,600 13,400 14,790 15,545 16,300 17,055

Biosupreme (4in1)

Bio Fertilizer

50 kg 15,700 16,500 18,230 19,170 20,115 21,055

An example of price setting from Bio-Supreme is reported in the table above. Prices are different depending on the sale location as well as the type of payment. Selling price directly at the plants in Pan Ta Naw or Inle Lake region are the cheapest. The price in Yangon is 10% higher than the price at the production plant, probably because of the transport charges and the related labour costs. Bio-Supreme Products can also be purchased with credit payments. The prices differ according to the duration of the repayment. Generally, prices set for the year will not be changed in the middle of the year.


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Shan Maw Myaybio fertilizer prices in Kyats for 2013

Sr. Product Name Content Price for team member Price for non-team member

1. Green Leaf(Tomato) 500CC 2,600 3,000

2. Green Leaf (Melon) 500CC 2,800 3,200

3. Green Leaf (Bio-foliar) 500CC 3,500 4,000

As shown in table, Shan Maw Myay’s price setting is different from the one of Bio-Supreme. Shan Maw Myay recruit people, forms teams and organizes meetings and capacity building training for the team members. The team members are eligible to buy the product at a special price so that they can earn a profit based on the quantity they can sell. Some products of Shan maw Myay afre shown in picture 13. 7.12. Estimated potential of demand analysis

Customer Name Necessary Services

Duration of Demand

Potential Of Demand per year

WHH-Htan Ta Pin and other INGOs

Supplying compost with or without packaging

3-5 years 250-300 tons(Estimated) WHH alone implementing in 19 villages

Government departments with farming activities


Every cropping season

100-150 tons (Estimated) Some government departments have their own farms and gardens

Local ornamental and nursery growers



50-100 tons (Estimated) (because of readily available substitute product locally with very cheap price)

Local Vegetable Growers



100-200 tons (Estimated) (because of readily available substitute product locally with very cheap price)

Organic Farmers Supplying compost with or without packaging


100-300 (Estimated) Locally, the number of organic rice and vegetable growers are increasing due to high concern on chemical residues

Supermarkets Supplying compost with various sizes of packaging

Year Round1 2-5 tons (Estimated) (Many houses in Yangon City have ornamental plants)

As shown in the table above, six different types of buyers can be identified according to the nature and needs of local growers and farmers. UN/NGOs launching agricultural related projects can be major actors in commercialising and promoting compost. If a strong collaboration is created between the compost producers and UN/INGOs, the sustainability of the environment and environmentally friendly crop production will eventually be achieved through widespread application of the compost by local growers and project beneficiaries. Therefore, not only local organizations, but also UN/INGOs in other states and divisions in Myanmar should also be contacted to seek for their potential of collaboration in the pilot project. Government departments may also be potential customers because some ministries have their own farming and gardening activities. Unless they produce enough compost for their farms and gardens, they will need to buy compost from outside. Likewise, an increasing number of organic vegetable and rice growers decides to buy natural fertilizer at each cropping season. Currently, local growers are applying mixture of sand and bio charcoal (in fact, this can be also considered a potential threat for the compost project to penetrate the horticultural production market). The mixture is much cheaper than the compost and readily available. On the other hand, many growers admit that natural compost is far more effective for plant growth than the mixture. Many houses in Yangon City have small garden. As already discussed, the need of compost at the retailer level is high.


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8. Recommended steps for compost marketing

After the production process, marketing options need to be considered: The first step is to consider different types of packaging. Common types of packaging are: 10kg, 25kg

and 50kg bags. For some large scale customers (eg. government farms and organic farmers that buy compost in tons), packaging may not even be needed.

Unless there is a potential collaboration with local manufacturers, branding is the next step to carry out. For branding, the compost product, the producers will need to be registered at the Ministry of Economic and Commerce.

Once the product is branded, advertising through media can be done for achieving a good market penetration rate among other competitors. More importantly all possible potential buyers should be contacted with the support of the media and local authorities.

A price setting should be established based on the production cost and other miscellaneous expenses such as packaging.

Marketing strategies in line with market trend, supply power and demand potential should be figured out. Promotions and delivery options would be effective tools in the initial phase.

9. SWOT analysis for compost marketing

Strength

Weakness

Strong buying potential Strong commitment of WHH project Good environmental option to minimize landfill

overflowing Market development with community based

initiative approach

High production cost Low preference of growers as effectiveness is

not equivalent to the chemical fertilizers Lack of market information Limited resource person for compost market

research and development

Opportunity

Threat

Opportunity to collaborate with potential bio fertilizer producers (eg. Shan Maw Myay)

No direct competitors Compost market price is relatively low and

allows competitions Sustainable approach to get local poors involved

in income generating composting

Products (shown in pictures 12 and 16) cannot compete with rapid response of chemical fertilizers

Foreign natural fertilizers with high quality effects

Skyrocket transport charges

The table above shows that there are more strengths and opportunities than weaknesses and threats. Therefore, developing the compost product market on a small scale could be successful in terms of a sustainable long term production. As an agro based country, Myanmar should have developed a compost market long time ago. The previous experiences in this sector have shown all the challenges that the producers can face but not yet the right formula for an economic sustainable production. However, it is not too late to defy the changes and try to set up a compost market now, in order to go organic as well as to minimize the overflowing of landfills.


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10. Developing the compost value chain and value chain analysis The establishment and growth of the compost market depends on a number of factors, including:

the identification of both a steady and growing supply of raw material and a growing end market;

increased end-users and suppliers and awareness of the potential value of the compost market;

interest and support from local authorities to regulate and encourage the development of the market and opportunities for local volunteers to improve the efficiency of their work within the value chain.

The project should focus on interventions that would facilitate the initial growth of the compost industry in a way that would reduce landfill waste while generating livelihood opportunities for local people in poor neighbourhoods at the same time. The compost project should primarily facilitate training and pilot demonstration activities, supplemented with technical and equipment support for local authorities and interested people especially needy people in target communities. The pilot project should include the following activities: Establishment of three pilot composting facilities: In three different communities in the three target townships, interested poor people who should be identified by CESVI’s community facilitators established compost production facilities. The capacity of each facility will be determined based on the potential market demand and potential supply of organic materials from markets in the adjacent neighbourhoods. The compost facilities are responsible for ensuring collection of raw materials, production of compost, and packaging and sales. Pilot initiative for source separation: Target market vendors must be provided with bags or baskets and basic information on what materials to place in the provided bags or baskets. Market cleaners and local composting group members will ensure the collection of separated bags or baskets and transport them to the designated composting site nearby. Technical Assistance to: 1. Market vendors, interested community composting group members and market cleaners will be trained on hygiene, productivity, and costs involved in solid waste management by responsible agronomist and awareness coordinator. 2. Market composting group members will receive practical and theoretical trainings on the technical aspects of compost production, at the composting facilities. Compost demonstration testing on vegetables and rice: Several small-scale farmers should participate in a demonstration to compare the results of the traditional use of chemical fertilizers with the use of compost, and with a hybrid approach utilizing both methods with the facilitation of Welthungerhilfe in Htan Ta Pin. Before field trials, the lab analysis of the compost produced by the local community should be carried out for ensuring the absence of heavy metals, pathogens such as E.coli, composition of organic N, P and K as well as the C:N ratio. End market linkages: The pilot project needs to facilitate connections between the compost facilities and six different types of end market user groups. Small-scale farmers operating near the community should be prioritised. Supply chain linkages: In addition to linking the compost facilities with local community, the project will also facilitate connections with local restaurants and other generators of significant organic waste.


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10.1. Value chain mapping

As illustrated in value chain map, the primary actors involved in the composting are the market vendors in the target markets as they will supply steady amount of raw material. The vendors are responsible for proper separation of organic and inorganic waste. At the raw material processing stage of the value chain, a group of local people interested in small scale composting is identified as an important chain actor because the degree of their motivation and efficiency will influence the success of the composting process. The pilot groups will be technically guided by an agronomist and their needs for composting will be supported by CESVI and local authorities.


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Once the end product is produced, QC tests will be carried out. After QC tests, the final product will be packed according to the needs of the customers. Before delivery to the customers, the composts bags will be kept at the designated storage place. In order to reduce the initial production costs, PCCD might provide the facilities for the storage of the compost. At the next level of the value chain, three types of customers can be identified for the final product: In the first type scenario the project team directly sells the compost to the end users. The end users can

be identified as livelihood UN/INGOs, government departments which have farming and gardening activities, organic farmers, nurseries, ornamental plant and vegetable growers, landscapers and local supermarkets. As an example: WHH, PCCD farms, Tha Ba Wa organic rice producers.

In the second scenario the project team directly sells to the wholesalers. The wholesalers (eg. Golden Key) do not produce the compost or other agricultural goods but they import them from foreign countries or buy them locally. Then, they rename the products with their own brand name. They reach the market with their own marketing tools. Most wholesalers duly acknowledge the original producer and express the nature and component of the original product, often in the product specification.

In the last scenario, the project team directly sells the compost to the potential low and high tech bio

fertilizer companies. These companies will produce value added product by mixing the compost with Effective Microbes (EM), with lime or gypsum, with animal dungs and so on. They will also use their own brand name and seek their own market.

As shown in the value chain map, solid arrows indicate the primary value chain from the source of supply to different types of end users. The dotted arrows are not directly related to the primary value chain because these dotted arrows indicate the possible final end users targeted by intermediaries such as wholesalers and potential low and high tech value added companies. During the consultations with Bio-supreme and Shan Maw Myay, both companies said tha at the moment they are not interested in using the compost from the urban markets as the raw material for their value added products. Shan Maw Myay, which distributes only natural products, is likely to be interested in acting either as a wholesaler, if a 10-20% commission fee is granted, or as a representative of the pilot project if two agronomists are provided for marketing and promotion. Likewise, Golden Key, an agro chemical company, is interested in promoting quality compost product only once it is already commercially available. At the moment, other companies are not interested in discussion on a product that does not exist yet. In summary, a high level of interest from potential high tech companies such as Bio-Supreme could be reached after the successful production of good quality compost. The main concern on the production chain is related to the quality control of the product. It is necessary, as a must, to ensure that the product has the right amount of C: N, minimum amount of toxics (eg. heavy metals and pathogens) as well as high quality levels of moisture and pH.


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11. Analysis of the environmental impact of the production of compost There are four major types of environmental impact resulting from the composting process. They are:

(1) air pollution and greenhouse impact, (2) water pollution, (3) soil contamination and (4) fire and other hazards.

(1) Air pollution and greenhouse impact The emission of methane in the atmosphere is known to be the principal element of concern with a significant greenhouse impact for composting, because methane has more than 20 times the greenhouse warming potential of carbon dioxide. In the open windrow systems when an aerobic environment is maintained with proper moisture content to encourage aerobic decomposition of the organics, the composting process does not generate significant quantities of methane. Most experts agree that if isolated anaerobic pockets are deep within the compost pile, methane is released but it is likely to be oxidised in the aerobic areas of the compost pile before any significant quantity is released to the atmosphere. Conversely, a well managed composting of organics will not produce methane, so this activity can contribute to a reduction of global warming by keeping organics out of landfill. Landfills are usually poor in oxygen, so methane is generally produced from the decomposition of organics. The capture of methane from landfills, even if it is included during the design phase, is never 100% efficient, so the landfilling of organics will always release methane, into the environment. Common type of air pollution can be caused by odour emission and particulate forming and dissemination into the air. (a) Odour emission

Most analyses of composting odours have focused on sulfur compounds, nitrogen compounds and volatile organic compounds. Ammonia is commonly associated with unpleasant odour from composting and related organic processing facilities, mainly because it can be easily distinguished from other composting odours. Under aerobic conditions, the main gaseous product of composting and mulching is carbon dioxide, and the organics are characterised by an earthy or woody odour. The most common gas compounds contributing to odours from aerated static pile composting of organics containing biosolids include dimethyl sulfide, dimethyl disulfide, dimethyl trisulfide, carbon disulfide, and benzothiazole. These chemicals can be toxic, although in open-air (aerobic) composting situations they are not present in concentrations high enough to be considered a health risk. Under anaerobic conditions, when the biodegrading materials receive insufficient air, methane is generated, and this is accompanied invariably by the production of foul odours. Table: Description of odour compounds released from common market waste

Compound Name Source

Dimethyl disulfide Rotten cabbage

Dimethyl sulphide Rotten cabbage

Carbon disulfide Rotten cabbage

Hydrogen sulphide Rotten egg

The absence of odours does not necessarily indicate that the process has not turned anaerobic: odours may be diminished or removed during diffusion of the biogas mixture through fresh compost, odour scrubbers or soil containing biological organisms. However, the presence of unpleasant odours is a good indicator that the process has turned anaerobic. If calm conditions are likely to occur frequently, the topography and consequent drainage flows of air can have a profound effect on the dispersion of odours, the extent and intensity of odours and, consequently, the impact on local amenity. Calm conditions are most likely to occur in the morning and evening. Locations likely to cause least dispersion are those that have a predictable air drainage flow and no sea breezes or other winds to disturb the stable wind conditions.


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High peak odour emissions at composting and related organics processing facilities generally occur during mixing and aeration procedures, such as preparation of the feedstock, and during turning of biodegrading organics. Odour impacts on local amenity from composting and related organics facilities can arise from poorly managed stockpiles of raw organics and/or organic products. For example, large stockpiles require extensive ongoing management and maintenance to ensure that the potential for odour emissions and water pollution from anaerobic conditions is mitigated. (b) Particulate matter formation Composting and related organics processing facilities may be sources of particles (or particulate matter) in the atmosphere. Particulate matter may be classified by the particle shape or phase (such as fibres and aerosols), their physical movement in the air (such as suspended in air or deposited from air); their chemical species, biological activity (such as bio aerosols) and size. The highest concentrations of particulate matter from composting and related organics-processing facilities occur during pre-treatment (shredding and mixing) of fresh organics and the turning of biodegrading organics, and can be higher in summer and when organics are dry. Unsealed access roads and earthmoving equipment can also be sources of particulate matter at composting and related organics-processing facilities. Composting and most organics-processing activities rely upon the inter-related activities of a diverse range of microorganisms to convert organics into stabilised organic products. Thus high concentrations of bacteria and fungi are likely to be present in the process feedstock, during processing, and in the final products. It is possible in the absence of control measures that pathogens such as Legionella longbeachae, Aspergillus fumigatus, Mycobacterium tuberculosis and Hantavirus infections may be aerosol transmitted from composting and related organics and processing facilities. Release of such pathogens into the air needs to be mitigated, because these pathogens can cause severe infections in humans. (2) Water pollution Water pollution can be caused by forming leachates and surface water contamination.

(a) Leachate Leachate is any liquid that in passing through matter, extracts solutes, suspended solids or any other component of the material through which it has passed. Leachates can be acidic, especially when they are generated under anaerobic conditions. They can cause the dissolution of metals and metallic compounds that may be present in organics. Under aerobic conditions alkaline leachates can be formed from organics with low carbon/high nitrogen ratios, such as food and animal organics. Leachates from composting and related organics-processing facilities have the potential to pollute groundwater and surface water bodies (such as rivers, creeks and dams). They can be high in nutrients; this makes them favourable host media for bacteria and other microorganisms and gives them a high biological oxygen demand (BOD). Stockpiles of raw organics and processed organics have the potential to pollute waters, because leachate may be generated when the stockpiled organics contain excessive moisture (for example, when too much rain falls on to the organics or if stockpiled organics are not sufficiently aerated or turned.) Such stockpiles may also generate offensive odours because excessive moisture will tend to cause the stockpiled organics to become anaerobic if not managed competently. Poorly managed stockpiles can turn anaerobic because of lack of aeration through the piles. If excessive moisture comes into contact with the stockpiles it can cause leachate to be generated and drain from stockpiles, potentially causing water pollution.

(b) Surface water contamination Surface water run-off from composting and related organics-processing facilities can cause unacceptable loads of sediment and suspended solids in receiving waters, while surface water run-on can lead to excessive generation of leachate. Un-vegetated exposed areas are a likely source of suspended sediment in surface water.


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(3) Soil contamination This type of contamination involves dissemination of weed seeds and toxic materials such as heavy metals and presence of birds, vermin. Weed spread can have serious environmental and negative economic consequences. For example, noxious weeds can pose environmental harm and cause human health problems and loss of amenity in neighbouring areas. It is therefore important to prevent weeds from proliferating at the premises. It is also important that weeds, weed seeds and plant parts are prevented from being transmitted to other locations via the products. Wind-blown litter emanating from composting and related organics-processing facilities can degrade the local amenity. The tracking of litter and mud on the wheels of vehicles leaving the premises may also have an impact on local amenity and on the quality of surface water run-off. Vehicles can also be a source of wind-blown litter (i.e. from uncovered loads). This type of dissemination by vehicles is very common in Yangon City. (4) Fire and other hazards Possible causes of fires at composting and related organics processing facilities include:

• spontaneous combustion, • sparks from works activities such as welding, • lightning strikes, • cigarettes, • build-up of particulate matter near engine manifolds and exhaust pipes of processing equipment.

Clearly there are a number of environmental impacts likely to occur during composting. Concerning methane gas emission, aerobic composting, which produces less greenhouse gases than anaerobic, is recommended. In order to minimize the air pollution caused by odour, compost piles will be designed to allow good aeration and frequent turning will be ensured. In terms of particulate matter formation, it is difficult to control but sealing the pile with 15-20cm deep soil layer is recommended to minimize particulate matter formation. As small scale composting is recommended, amount of leachate produce will not be at risk level. Water logging in the compost structures will be regularly monitored and hence it is meant to be under controlled condition. Likewise, possibility of surface water contamination is also limited because of small scale production. Weeds will be avoided for composting as much as possible to mitigate the soil contamination. Precaution notice board should be place at composting site in order to avoid lighting strikes, cigarette and those that lead to potential fire hazard. .

The most relevant types of environmental impact are the odours and the proliferation of insects and rodents, also in the case of small-size production plants. It is necessary to evaluate and take in account, during the set-up of the composting plant: (a) the distance of the plants from the houses and (b) the patterns of the winds, so that the effect of the odours can be minimized. In addition, the facilities of the plants are to be cleaned and disinfected regularly to avoid flies, insects, rodents and birds. If these two aspects are correctly mitigated, the environmental impact of a plant for the production of compost is certainly positive because the organic compost contributes to increasing the quality and the moisture of the soil and to reducing the use of chemical fertilizers. .


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12. Conclusions and recommended activities for pilot composting As a conclusive finding of the feasibility study, community based small scale composting is identified as the best option for valuing green organic waste and, at the same time, reducing landfills overflowing. In the past, a numbers of large scale composting of market green waste initiatives were undertaken in Yangon City. However, these initiatives did not last long for many reasons such as the high production costs and the limited availability of QC tools. Consequently, alternative solutions to upkeep the market green waste are still to be investigated and experimented not only to reduce landfills overflowing but also to utilize the precious raw material source to produce organic compost. Local authorities are making an effort to improve existing solid waste management practices with the support of international project partners such as CESVI, JICA and UN-HABITAT. Therefore, it should not be difficult to build consensus and a commitment for long term support of green composting. The local authorities have and can ensure a unique role in the following three sectors:

The local authorities are responsible for setting up new rules and regulations in line with project goals and objectives. For example, market vendors might be required by the new regulations to adopt effective separation practices under the control of the market committees.

Local authorities also play a major role in behavior changing of the local community.

Local authorities have means and resources that could be used for composting such as land to be used for the facilities and / or storage and vehicles for the transport of the wet waste from the market.

Because of the current low level of awareness on separation of market waste, CESVI should pilot activities only after awareness training and campaign with practical exercises are carried out for the benefit of the population and, specifically, the stakeholders identified in this feasibility study. In parallel to the awareness campaign, capacity building of the actors eventually involved in the production and market of the compost is necessary because all actors involved need to have a thorough understanding on community facilitation as well as on every single step of composting and its related impact. To establish a strong compost market in Yangon City, funding should be enough for at least three years:

The first year is dedicated to small scale production with building up community trust and active participation.

Product promotion and market development are likely to be carried out in second year.

During the third year, under the responsibility of PCCD, after the end of the project and with the revenues of the second year, the production scope should be increased through a well-developed market.

The responsibilities of the community facilitators should include the organization of meetings and workshops with local growers under the supervision of the agronomists. Some growers heavily rely on chemical fertilizers because they have very limited knowledge on the benefits of the organic fertilizers while some other growers have changed their behavior because of their background knowledge on organic fertilizers. The latter, partly rely on sand and bio-charcoal mixture which is a cheap substitute of compost. These growers admit that good quality compost is far better than the mixture but compost is not widely available in the market. Majority of the local growers do not wish to apply organic fertilizer alone as the effectiveness of these still cannot compete with that of chemical fertilizer. The community facilitators should ensure this behavior change involves a higher number of growers once the organic compost is available. As shown in the next table, three types of local growers with different views can be identified. A few rice farmers (interviewed) in Mhaw Bi are currently applying chemicals (compound fertilizer and urea) and cow dung. Once compost is widely available, they are willing to give it a go.


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Type of grower Location Currently Used Product Comment

Fruit and vegetable

Mhawbi Mainly chemicals, cow dung and bio-charcoal (See pictures 17 &18)

Will buy if good quality compost is available

Ornamental and nurseries

Mindhamma Mainly mixture of sand and bio-charcoal, chemicals to fasten flowering

Do not wish to buy because of cheap substitute

Landscape and flowers

MyayPadaytha Mainly mixture of sand and bio-charcoal, chemicals to fasten flowering

Wish to buy if price is reasonable

Shan Maw Myay and WHH in Htan Ta Pin are likely to become potential collaborators. Shan Maw Myay is interested in promoting the compost if CESVI employs two agronomists for ensuring the promotion of the product and the marketing or with a commission fee. According to Shan Maw Myay, the 50kg bag compost should not cost more than 6,000 Kyats to the end users. WHH also agreed to promote the compost once it is available. WHH is willing to pay 5,000 Kyats for a 50 kg bag. As WHH intervention can be found in 19 villages in Htan Ta Pin where there are many vegetable and rice growers, the result of field trials could be experimented for few years. On the other hand, there are some limitations identified for the small scale composting. At the first place, there is no well-developed compost market in Myanmar yet because majority of growers heavily rely on chemical fertilizer. Therefore, there is no reliable market databases and market information on it. Although there were a number of compost producers in the past, reliable compost market databases are extremely limited. Secondly, majority of compost facilities such as site, storage and transport are very expensive in Yangon unless the local authorities provide them. Any decision around this aspect should be prioritized before any pilot activities. Finally, many potential buyers heavily rely on chemical fertilizer and they do not dare to take risk on using compost in case compost is not as effective as chemical fertilizer. The success or failure of the community based composting largely depends on the degree of community participation which should be ensured through an adequate awareness campaign. All in all, the implementation of piloting composting activities is recommended because of the tangible support of the project partners and the good market potential in the project areas. 13. Literature

CESVI (2012) Full Proposal of Environmental protection and sustainable development: building local capacities on solid waste management in Myanmar

Hnin Yu Lwin (2013) Role of Fertilizer Policy in Transforming Agriculture of Myanmar www.slideshare.net/resakssasia/hnin-yu-lwin-fertiizer-myanmar (Accessed 10/12/13)

Market Information Leaflets (2013) Pa DaukMying and San Pya Markets

Product Price Lists (2013) Bio-Supreme, Yangon, Myanmar

Product Price List (2013) Shan Maw Myay, Yangon, Myanmar

Thant Zin (2010) Analysis of Final Disposal Site for Solid Waste in Yangon City Area (2000-2008), Yangon Institute of Economics, Myanmar

Wong,G. R (2004) Analysis of Separation Options for Composting Market Waste in Vientiane Lao PDR, University of Toronto


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Annexes

Annex 1: Composting manual for small scale and large scale production Annex 2: List of people interviewed for the feasibility study Annex 3: Questionnaires used for the study Annex 4: Photos

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