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Yard Waste Composting for Municipalities
Slide Show, Part VIII, IX, and X

Nancy Dickson and Tom Richard
July 1989


VIII. Markets

Once the commpost is made, there is the question of what to do with it. Americans purchase vast quantities of soil amendments which have attributes similar to compost. However, compost can substitute for topsoil, potting soil, and peat moss. Potential markets for finished compost include landscape contractors, nurseries, greenhouses, golf courses and parks. Conducting a market survey can help determine who the potential users of municipal compost products are and the extent of their demand for compost. Such a survey should solicit information on the customers' preferences about product quality, type, and form of packaging.
Some bagged product distributors make as many as 10 to 20 different products. Yard waste compost products include top soil, planting mix, potting soil, and mulches.
Compost can be distributed in various ways: for municipal use, as a free giveaway; by wholesale to distributors, through bulk sales, and by retail.
Municipal applications of compost will save money by providing material that does not otherwise have to be purchased. Communities planning to use compost for municipal purposes, such as reclamation of a closed landfill or refurbishing parks and roadways, should obtain a written commitment from the appropriate local department. Municipalities can examine how much they currently pay for particular quantities of fertilizer, topsoil, and peat to estimate the potential municipal demand for finished compost.
A municipality may also make compost available for free to residents. Most giveaway programs require the public to go to a centrally located distribution site to pick up the finished compost. People must usually bring their own containers and equipment for loading the compost. Most municipalities give away compost to residents and charge a nominal fee to bulk users. A municipality may also want to charge a fee to non-residents. This approach increases community awareness about recycling and waste reduction, and returns a tangible product to residents for their efforts at recycling
An increasing number of municipalities market their own compost. Bulk sales are the easiest distribution option for a local government. However, more money can be made by bagging. Setting up a bagging line that is mechanized requires an investment in equipment and management staff.

Many municipalities do not have the promotional expertise for marketing compost or the means to administer such a program. In such cases, it may be an advantage to leave the marketing of compost to the private sector. The municipality could contract with an independent firm to market some of the compost, while allocating the rest for utilization by the municipality.

In the Northeast, three or four large companies currently contract with commmunities to bag, sell and distribute compost. Participating municipalities do not make much money in their transactions, but they do escape sometimes burdensome marketing responsibilities.

IX. Econommics

The costs of a composting facility include land, labor and equipment. The argument for financing a yard waste composting facility is that it will divert waste that would otherwise need costly disposal. If the compost site is closer than the other disposal site, there will be savings in transport costs. The finished compost can be used as a substitute for purchased mulch or topsoil in municipal landscaping. If sold commercially, compost can generate revenues which help defray processing costs.

X. Conclusion

From an environmental perspective, composting not only reduces the problems associated with landfills and incinerators, but the finished compost adds beneficial humus and nutrients to soil. Composting is a waste management solution which can benefit municipalities and benefit the environment at the same time.
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This page was created on May 6, 1996
This page was last updated October 2000