Supply Chain Council of European Union | Scceu.org
Procurement

As compost volumes grow, policy and research help boost market expansion

California began 2022 with a radical shift in how it handles food waste, by requiring local jurisdictions to offer organic waste collection services. While that part of the law has gotten a lot of attention, another component focused on procurement speaks to a similarly urgent issue — what to do with the increasing volumes of compost.

Pressure to reduce the emissions associated with organic waste has compelled compost production around the U.S. Per a U.S. Composting Council survey (based on a 25% response rate) producers generated an estimated 5.1 million tons of compost in 2020. Those high volumes of the soil additive mean markets need to grow, too. While landscaping customers accounted for 40% of compost sold in 2020, according to the survey, agriculture used only 10% of the product, along with parks and roads projects. How to grow markets in a cost-effective way motivates ongoing surveys, reports, legislative discussions and sales meetings across the country. 

Though government initiatives could increase demand, compost advocates hope that a variety of education tactics will also attract more farmers, ranchers and landscapers to the material. Simply finding new customers isn’t sufficient — buyers have to stick around and be persuaded that investing time and money into the additive is worth it. As a result, they need more nuanced information on how and when the product delivers, and how and when it doesn’t.

“We’re not pushing it for compost’s sake,” said Emily Coleman, the circular organics program manager for King County, Washington. “We’re focused on putting it in the right place and at the right application rate so folks want to continue to use it.”

Policy pushes

Policies similar to California’s have made headlines, too. Vermont has banned food waste from landfills, while states like New York and Connecticut are among the list of states require large waste generators to recover and recycle their organics.

In some cases, states complement these plans with legislation that aims to make public projects reliable customers. The new California law requires local jurisdictions to purchase certain amounts of products made from recycled organics, one of which can be compost. Since 2020, Washington has required government-funded projects to lay down compost when and where the material makes sense. The mandate, which covers transportation departments, natural resource divisions, parks management and more, could help the state reach it goal of cutting the volume of food waste generated in half by 2030.  

Builders or landscape architects that win construction bids, particularly for projects involving soil amendments, are now more likely to see compost use in the resulting contracts. Few completed projects have been affected by the Washington law, however the number of proposals that would require compost in the technical specifications are piling up, King County’s Coleman said.

The legislative tactic is one the Natural Resources Defense Council (NRDC) hopes municipalities around the U.S. can pull off as well. Last August, the organization debuted a downloadable, modifiable sample bill that requires publicly-funded infrastructure projects to consider or use compost. Ideally, communities can adapt the model bill to fit local specifications. 

One portion of the sample bill notes that compost should be selected so long as it’s not cost-prohibitive, a definition the NRDC defined as 10% more costly than alternatives. The percentage is one local governments might modify, along with other details such as what compost volumes qualify as meeting application standards in different conditions.

Though the sample legislation deals with public compost purchasing and use, hopefully contractors build habits they take to private projects too, said Darby Hoover, a senior resource specialist at the NRDC who helped draft the sample bill.

“If a city agency is requiring use, possibly they’re using a contractor that’s going to be in use for other private projects, who may already have this protocol in place and offer it to a new customer, for example.” 

Philip Rozenski via Getty Images

Making the sale

If nonprofits like the NRDC hope that compost use by one customer eventually draws in other clients, then industry salespeople are the ones who make sure that happens. 

Hauling and spreading the material is most lucrative in bulk, so companies look to maximize how much compost they truck to a site, said Charles D. Duprey, president and founder of Naturcycle, a consulting firm and compost sales company.

A compost delivery bound for, say, a park might have compost salespeople approaching nearby businesses or homes ahead of time to see if they can roll a spreading operation over property lines and into the next customer’s yard. The piggyback tactic can entice new buyers who otherwise need help integrating into the compost supply chain. New customers are less familiar with compost options, equipment and companies than they are with traditional fertilizer. 

“Compared to a fertilizer I can buy, put in a bag and spread with a $50 spreader I buy at Home Depot, applying compost to [an] athletic field or something like that is a little more complicated,” Duprey said. 

Salespeople often show buyers how to access equipment or who to call for a spreading service. When a neighboring piece of land already has the logistics sorted out, new clients can avoid the same hassle. 

If a potential compost customer is considering how to move the material around, they might have already cleared some other common educational hurdles. In assessments of compost market opportunities for Washington’s King County and California’s San Diego County, surveys of producers and potential customers found that people aren’t always sure what compost is, let alone why they should use it or how to incorporate it into their farming or landscaping. 

Streamlining what could be long, educational pitches, Coleman said, often involves discussing the compost attributes that particular clients would be most interested in. In her experience, a transportation department constructing or maintaining roadside slopes is most interested in how compost can slow soil degradation. For the King County Water and Land Resources Division, the additive would matter most when it comes to maintaining or boosting soil health. 

Convincing people to give compost a try inevitably includes a conversation about cost. Pound for pound shelf price comparisons often show traditional fertilizer to be more expensive than compost. But the volume of compost a property might need and the cost of transporting and spreading the heavy material makes the operation more expensive than a comparable fertilizer scatter, said Ryan Cerrato, vice president of product marketing at composter WeCare Denali. 

The company often serves customers who can buy high volumes at once, like contractors or excavators working on top soil for large facilities, but the deliveries should stay close to where the compost is made — ideally within 50 miles of one another. 

You can become priced out of a lot of projects if you get too far,” said Cerrato.

In Washington, the financial hurdles are mountain-high: The Cascades mountain range separates more populated, food scrap-producing regions from farmland that could apply higher volumes of compost. Crossing the distance is too expensive and requires fuel volumes that could diminish the environmental benefits compost delivers, Coleman said. 

Related posts

Farmers not selling red gram at procurement centres

scceu

Emerging Digital Intervention In Construction Industry

scceu

Less farmers, millers for procurement in Odisha’s Jagatsinghpur- The New Indian Express

scceu