9513.pdf

PelletedAnd Crumbled CompostedPoulhy Manure Marketing Plan
The estimatedcurrent size of this opportunity and the market segmentsin which they are located
is indicated in Summary Table 1. The total size of the filler market in those market segments
PCCPM is anticipated to penetrate is estimated in the range of 7,140 to 8,370 tomes, annually
(average 7755 tomes). Of this total, the market share which PCCPM may gain is mainly a
functionof price. Based on price, total potential penetration into the filler market by PCCPM at
an ex-plant cost of $100 to $150 per tome is estimated at 50% and 30%, respectively. This
represents a potential market for PCCPM at the indicated prices in the range of 1440 to 2400
tomes, annually.
The direct to home/gardenretail and end-usermarketis anticipatedto account for 15% of the total
estimated market for PCCPM, in the range of 254 to 423 tomes, annually. While this market
may not contributeappreciablyto the profit marginof the PCCPM manufacturer, there is a strong
need to provide exposure and develop a reputation for the product among the widest population
of end users of PNO products.
The current penetration of PNO materials in the B.C. fertilhr market place is about 1,115 to
1,130tonnes, annually,all producedout of province. The extentto which PCCPM may penetrate
existingmarketsfor PNO productshas not been exploredin this study. Nevertheless, commercial
production of PCCPM products with equivalent or superior characteristics to current PNO
productsat competitive prices maybe expected to provide the opportunity to acquire significant
market share in this area.
Price is a criticalcomponentof the markt opportunityfor PCCPM. A price range of $50 to $400
pertonnewas examinedin the course of the market research. It became apparent that, although
competing organic products are sold in BC at the higher levels, the market volumes involved do
notjustify the constructionof a pelletingplant (see Appendix I, Table 13, p. 36). Moreover, the
number of years to attain market potential is indicated to increase in direct relation to the price
of the product.
The primary marl@ segmentfor PCCPM is considered to be the bulk filler market to fertilizer
blenders, representing a wholesale price ex-plant in the range of $100 to $150 per tome,
dependingon the end marbt the product would be going into. Entry into the market is based on
captuxinga significantportion of the filler market presently filled by limestone at $50 per tonne.
AppendixII presentsestimates of retail prices for hypothetical fertiher blends using PCCPM as
an ingredient. Clearly, adding PCCPM to boost fmtilizer analysis is not a cost effective means
of supplyingnutrientsto crops in comparison with higher analysis chemical sources. However,
as a filler in ftxlilkm blends, PCCPM is competitive with limestone which contains no nutrients,
on in the range of $100 per tome the basis of nutrient value only.
Someof the other beneficial aspects in the product would need to be marketable for the product
2 Zbeetnof(hawdting, 1995