The 3rd International Seminar of Science and Technology

ISST 2023 Vol 3 (2024) 02 017

Trends in Science and Technology for Sustainable Living
Faculty of Science and Technology
Universitas Terbuka

Business model canvas analysis of organic

fertilizer “Goat Waste”

Mohammad Shohwan Najih*

University Terbuka, Agribusiness Department, 15437 South Tangerang, Banten, Indonesia

Abstract - This study aims to determine the use of organic fertilizer in adding soil nutrients and
analyze the implementation of BMC in the organic fertilizer business. This study was carried out
directly at the production location using observation and interview methods. The results study show
that organic fertilizer is produced using goat waste as raw material. Goat waste is processed using
certain techniques to produce organic fertilizer, easy to use, and aplicable to any plants. Organic
fertilizer continues to be produced for use on one’s own land as a substitute for synthetic chemicial
fertilizer. The result study also show that in soil goven organic fertilizer the plants grow well. The
result study also show that in the organic fertilizer business the company has used Business Model
Canvas (BMC) which includes : Value proposition, Key partners, Key activities, Key Resources,
Customer Relationships, Custumer Segments, Channels, Cost Structure and Revenue Streams. The
use of BMC has an influence on the sustainability of this business.

Keywords: benefit, business model canvas, organic fertilizer

1 Introduction
The need for food, clothing, shelter, schools, social activities and so on continues to increase.
This is what drives changes in human efforts to meet needs. Including the agricultural system has
encouraged farmers to innovate to increase agricultural production.
Chemical fertilizers have been used to increase agricultural production. Since its introduction in
1984, chemical fertilizers have become increasingly popular because chemical fertilizers contribute
to fertilizing plants. Plants become green, dense and often chemical fertilizers are effective in
accelerating growth and fruiting.
Soil damage due to the use of synthetic chemical fertilizers is common information. Many soil
are no longer able to produce optimally, characterized by slow growing plants, inappropriate leaf
color and plants that are susceptible to disease. Plants can only grow if the soil is given chemical
fertilizer. The consequences of using chemical fertilizers are decreased soil productivity, increased
chemical residues in the soil and pollution of plant life. [4].
Organic fertilizer is a solution for farmers. Organic fertilizer comes from goat, cow, chicken,
leaves and fruit waste. Organic fertilizer has an influence in improving the chemical properties of the
soil because organic fertilizer can fulfill the required soil nutrients such as nitrogen, phosphorus,
potassium and other nutrients. Organic Fertilizer is useful for soil fertility [3]

*Corresponding author: msnajih@gmail.com

© 2024 Author(s) 215 ISST 2023

 The 3rd International Seminar of Science and Technology
ISST 2023 Vol 3 (2024) 02 017
Trends in Science and Technology for Sustainable Living
Faculty of Science and Technology
Universitas Terbuka

Organic fertilizer is fertilizer that existed before people knew about chemical fertilizers. The
quality of organic fertilizer is good but the effect on soil and plants is generally slow. In practice, it
takes about 1 year for organic fertilizer to have an impact on soil and plant fertility. So it is important
to improve the quality of organic fertilizer so that farmers can increase agricultural production.
Organic fertilizer needs to be prepared so that it becomes fertilizer that is ready to be used
anytime, anywhere, and by anyone. Therefore, the sustainability of managing the organic fertilizer
business that consumers are interested in requires quality management and risk [1]. The business
development planning method that is currently widely used is using BMC. With this BMC method,
business owners can find out the important parts of the business, so they can provide an overview of
value, products, infrastructure, consumers and finances [2].

2 Methodology
This study was carried out in October 2023, with a location at Pondok Agro, Solokuro village,
Solokuro district, Lamongan Regency, East java. This place is not far from residental areas,
approximately 100 meters west of the housing complex. Road access stone paving that tcan be passed
by 2-wheeled and 4-wheeled vehicles. In this place there is electricity and water is also available. In
this place there are horticultural plants, organic fertilizer production and planting media production.
The study was carried out using the observation method, namely by directly observaing
production activities starting from procurement of raw materials, drying, enrichment, fermentation
and packaging. The study was also carried out by interviewing business owners to deepen information
related to organic fertilizer production and BMC analysis in business sustainability.

3 Results
From the results of interviews with Pondok Agro leaders, information on the organic fertilizer
business as described in the BMC was obtained as seen in table 1.
Table 1. Organic fertilizer business information
Key Partners Key Activities Value Proposition Customer Customer Segment
Materials Suppliers Procurement of raw Organic Relationship Gardening hobbyist
Resellers materials Easy to Use Direct Relationship Farmers
Farmers production Applicable to any Local community
Agricultural Shop supply chan plants
Agricultural
Exstension

Key Resources Channels

Materisls to produce Farmer Group /
good organic Community
fertilizer Media social
Cost Structure Revenue Streams
Operational cost Product Selling
Transportation
Raw Materials

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The 3rd International Seminar of Science and Technology
ISST 2023 Vol 3 (2024) 02 017
Trends in Science and Technology for Sustainable Living
Faculty of Science and Technology
Universitas Terbuka

From observation at the business location, information was obtained that this organic fertilizer uses
goat waste as raw material. This goat waste is obtained from goat farmers those around the place of
business. The goat waste is then processed in a certain way so that it becomes organic fertilizer that
is ready to be used. Observation results also show that this organic fertilizer is used continuously on
his own land and that of several neighbors. It was also seen that people who needed organic fertilizer
came directly to the production location and saw various plants that had used organic fertilizer.
Besides the business of making organic fertilizer, Pondok Agro also produces POC and planting
media. This planting medium uses a mixture of soil, coconut fiber, huks and roasted huks. This
planting medium is packaged in transparent plastic measuring 25 x 40 centimeters.
The leaders of Pondok Agro explained that there are four parts to the organic fertilizer business,
namely : value, product creation, outbound relationship, and finance. wich are then explained in
theory Business Model Canvas (BMC) (Osterwalder & Pigneur, 2010), wich includes : Value
Proposition, Key Partners, Key Activities, key Resources, Custumer Relationships, Channels,
Custumer Segments, Cost Structure, dan Revenue Streams.
Value Proposion, (1) Organic, namely comes from goat waste. (2) Easy to use, because it is in
small granules so it is easy to sow or dig. (3) Applicable to any plants, including horticultural crops,
main food crops, plantation crops, and ornamental plants.
Key Partners, (1) Material supplier, which comes from goat farmers around the business location.
(2) Reseller, is a person who deliberately transfer the benefit of organic fertilizer to other parties by
making a profit. (3) Agricultural Shop, namely agricutural shop that collaborates with Pondok Agro
to sell organic fertilizer. (4) Agricultural extention, namely people who have a very good role in
disseminating information on organic farming system.
Key Activities, (1) Procurement of raw materials, taken from goat farm around the production
place. (2) Production, the production process begins with drying, enrichment, fermentation,
weighing, and packaging. (3) Supply chain, namely relationship with raw material supliers.
Key Resource, Materials to product good organic fertilizers. raw materials are taken from goat
waste that has been in the sheller for 6 months or more, or if it has not yet reached 6 months then it
will be stored first for 6 moths or more.
Customer Relationships, Direct Relationship, The public can see directly the location of organic
fertilizer use which is located at "Pondok Agro"
Channels, (1) Agricltural Shop, namely shops selling medicines and agricultural fertilizers (2)
Farmers groups / communities, namely flower sellers on a small and large scale (3) social media, such
as WhatsApp and Instagram.
Customers Segments, (1) Gardening Hobbyist, namely lovers of ornamental plants and
horticulture. (2) Farmers Local Community, namely farmers around the Solokuro district.
Cost Structure, (1) operational cost, (2) Transportation, (3) Raw material. In simple terms, the
total costs for 1 production can be seen in table 2.
Table 2. total production cost
Number Description Unit Many Unit cost Amount
1 Raw material cost Kg 200 500 100,000
2 Direct labor cost Person 1 100,000 100,000
3 Packaging cost Grain 33 1,500 49,500
4 Consumption cost Person 1 20,000 20,000
Total variable cost 269,500

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 The 3rd International Seminar of Science and Technology
ISST 2023 Vol 3 (2024) 02 017
Trends in Science and Technology for Sustainable Living
Faculty of Science and Technology
Universitas Terbuka

Revenue Streams, obtained from the sale of fertilizer. For 1 production, it produces 198 kg or 33
bags measuring 6 kg, it cost IDR 269,500. If the selling price is IDR 20,000/bag then the sales
proceeds are 33 x IDR 20,000 = IDR 660,000. So the profit for 1 production is IDR 390,500.
Bussiness feasibility analysis Ratio = B/C = 390,500/269,500 = 1.45 (profitable).

4 Discussion
The benefits and advantages of this organic fertilizer can be seen in the soil and plants around Pondok
Agro. The soil looks crumbly and the plants grow well without using chemical fertilizers. This organic
fertilizer does not undergo laboratory testing so it is not known exactly what percentage of nutrients
it contains, including nitrogen, phosphorus and potassium. However, based on experience, the
leadership of Pondok Agro is able to explain when it is time to use organic fertilizer as basic fertilizer
and when it is time to use organic fertilizer as supplementary fertilizer.
For Key Partners, it is good because the location around Pondok Agro is a goat farming location,
so it has an impact on the availability of goat waste stock which in turn streamlines the production
process. Likewise, the production results can be sold because there are already resellers and
agricultural shops who are ready to collaborate. Meanwhile, agricultural extension workers do not
yet have an optimal role regarding the sustainability of this organic fertilizer.
In Key Activities, relationships with raw material suppliers have been well established so that
the need for goat waste can be met and the production process can run smoothly. The obstacle in
production activities is that we don't use a drying machine. Drying goat waste goat waste is still done
manually under sunlight so the length of sunlight has a big influence on the drying speed. The second
obstacle in production activities is that copper machines are not yet used. A coper machine is used to
crush goat waste. If the company uses a coper machine, production speed can be increased.
In Channels, this channel already exists but is not functioning optimally. Sales in farm shops
remain low. Agricultural shops are not yet equipped with sufficient promotional media. Sales at
flower shops are also not as busy as at production sites. Flower shops are also not equipped with
sufficient promotional media. The use of social media has begun to function. In the future, social
media can be used to provide education to the public about the use of organic fertilizer.
In the Customers Segments, the main target consumers are garden hobbyists and local farmers.
In reality there are already organic fertilizer users but not all local farmers use organic fertilizer.
In the Cost Structure, you can see the cost for 1 production is 269,500. With description : Raw
material cost, direct labor cost, packaging cost, and consumption cost.
In Revenue Stream, from the sales results it can be seen that there is a profit of 390,500 for 1
production. with a Ratio of 1.45 (profitable business) but still thin.
In general, based on observations and interviews, organic fertilizer from goat waste has an
influence on providing soil nutrient requirements which in turn increases plant fertility. This organic
fertilizer can be used as an example by farmers to increase agricultural production without using
synthetic chemical fertilizers.
In terms of output, the benefits of this organic fertilizer cannot yet be felt by the desired target
market because the company's channels are not yet fully functional. For today's times, what is no less
interesting is marketing via social media. Marketing via social media has the advantages of low cost,
quick reach of targets and so on.

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The 3rd International Seminar of Science and Technology
ISST 2023 Vol 3 (2024) 02 017
Trends in Science and Technology for Sustainable Living
Faculty of Science and Technology
Universitas Terbuka

In terms of costs, an analysis has been carried out from production costs to sales. and from this
organic fertilizer business, Pondok Agro makes a profit with a ratio of 1.45. A profit that is quite
worthy of being maintained and increased.

5 Conclusions
Organic fertilizer made from goat waste and processed organically. The organic content in Organic
fertilizer contributes to environmental improvement. As it offers not only the goodness of its produced
(organic, easy to use, applicable to any plants) but also the contribution to the environment, business-
wise, it also has a chance of increasig value, wich leads to improving community welfare. A
relationship with related communities, such as farmer group and gardening hobbyists, should be
maintaind to keep the business revenue, in the future, this is expected to support the business
sustainability of Organic fertilizer.

Acknowledgements
The researcher would like to thank the Universitas Terbuka, Faculty of Science of technology,
Agribusiness study Program which has provided support to participate in the 2023 ISST conference,
with the theme Business Model Canvas Analysis of Organic Fertilizer “Goat Waste”

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