Case Study Service Delivery Climate & Environment Farmer Impact Kenya Mango Pineapple Chili Coconut

Closing the Loop: Transforming Waste Management From a Cost Centre Into a Revenue-Generating Biofertilizer Facility

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19 Jan 2026 • 4 minutes read

What is the innovation?

A biofertilizer facility transforms organic waste from fruit into biofertilizer using Black Soldier Flies (BSF). The fruit waste, primarily obtained during the processing stage, is placed in crates where BSF eggs are introduced. Over 3-4 weeks, the larvae decompose the waste into dry biofertilizer. The larvae and biofertilizer are then separated: larvae are kept in cages to lay eggs for the next cycle, while the biofertilizer is sold to farmers. Surplus eggs and larvae can be sold to BSF producers and as animal feed.

Key challenges addressed

Goshen's primary business of producing dried fruit snacks from mangoes and pineapples generates significant organic waste, up to 35% of the fruit weight, previously leading to costly and environmentally harmful disposal methods. At the same time, many Smallholder Farmers (SHFs) in the region struggle to access affordable organic or biofertilizer due to financial constraints, which limits their yield potential. By implementing a biofertilizer facility, Goshen addresses both issues by converting organic waste into valuable biofertilizer sold to SHFs at below market prices. This innovation turns a cost centre into a revenue stream, reduces waste disposal costs, and provides SHFs with affordable fertilizer to improve their crop yields and livelihoods. Goshen expects to recoup the initial low investment of the biofertilizer facility quickly, and beyond then for it to operate independently, allowing them to focus on their core processing business. This dual strategy offers a sustainable and economically beneficial solution for both the company and the farmers.

How it works

Screenshot 2026 01 19 at 18.06.00
  1. Goshen sources fruit from SHFs through farmer groups (FG)
  2. Goshen processes the fruit into dried fruit snacks and collects the organic waste in their biofertilizer facility
  3. Goshen purchases BSF eggs from a BSF specialist to start the decomposition process of the waste
  4. Goshen sells the biofertilizer to its SHFs through the FGs
  5. Goshen sells the dried larvae and flies as animal feed
  6. (optional) Goshen sells the surplus eggs to the BSF specialist

Tips for replication

Context

  • Companies have high volumes of organic waste as by-product
  • Organic certified farmers requiring organic or biofertilizer

Best practices

  • Pilot the approach to determine staff and resource requirements
  • Establish partnerships with BSF specialists to reduce costs and share risks
  • Seek buyers in the poultry and aquaculture sectors to purchase the dried larvae and flies as feed to further reduce waste
  • Pre-finance biofertilizer inputs for farmers, with repayments deducted from fruit sales

Enabling conditions

  • Locate the biofertilizer facility near the processing factory
  • Utilize existing relationships with farmers for sourcing and providing services (distribution of biofertilizer and training on importance and use under GAP).

Business Case: (expected) Outcomes for Goshen

Reduced processing cost

Goshen's processing costs are high, primarily due to significant waste management expenses. The biofertilizer facility can substantially reduce these costs by converting up to 35% of organic waste into valuable biofertilizer, potentially achieving a 50% reduction in waste management expenses.

Diversified revenues

The facility creates new revenue streams by selling biofertilizer to farmers and marketing by-products like BSF eggs and larvae for animal feed. These additional revenues are crucial for offsetting operational costs, with break-even projected within a few years.

Increased processing volume

Improved crop yields from using biofertilizer is expected to increase the supply of mangoes and pineapples for processing. This can enhance Goshen's processing capacity, and drive business growth and operational efficiency.

Impact Case: (expected) Outcomes for Smallholder Farmers

Improved access to inputs

Access to affordable biofertilizer and proper application training will boost crop yields. This support will enable farmers to maximize their productivity.

Increased income

Lower fertilizer costs, achieved by offering biofertilizer at prices below the market rate, combined with increased crop yields, will significantly enhance farmer incomes.

Impact Case: (expected) Outcomes for the Environment

Waste reduction

Implementing the biofertilizer facility minimizes the environmental impact of organic waste disposal through burning. This approach transforms waste into a new and valuable resource, promoting sustainability.

Sustainable agriculture 

The use of organic fertilizers fosters healthier soil and reduces reliance on chemical fertilizers. This practice supports long-term agricultural sustainability benefiting both the environment and the farmers.

Outstanding risks & Challenges

  • A biofertilizer facility demands specific expertise, infrastructure, and investment capacities. These can be a barrier for small fruit processing companies
  • Developing the required expertise and managing the facility can be a time-consuming and costly process, which may divert financial resources from the core business.
  • Scale of the biofertilizer production is limited to the scale of sourced volumes. As such there is a limit to the biofertilizer that can be provided to farmers as input for their farms.
  • Misalignment between the timing of production of biofertilizer (after harvest) and farmers’ fertilizer needs (mid –season) can hinder adoption.
  • Distribution costs due to large distances and the bulky nature of biofertilizer can be high. This can lead to prioritizing farmers nearby to limit the costs.
  • Financial constraints in pre-financing biofertilizer inputs for farmers could affect uptake.

Data sources & Disclaimer

Information is based on IDH’s Service Delivery Model (SDM) analysis for Goshen, including data from Goshen and 246 mango and 71 pineapple farmers (information is available on our methodology for SDM Analyses and Farmer Surveys). Additionally, interviews with company, agents, and farmers have been held since the start of Technical Assistance (2022) during which the innovation is tested and scaled. A longer time span and additional data are needed to verify and quantify impacts. Farmfit will conduct an end-line assessment of the company’s SDM and farmer livelihoods based on a repeat data collection at company and farm level.