In the era of sustainable development, the new economic theory of development is today “environmental economics” which balances between economic and ecology. In all development programs, including agriculture, economic development and ecological conservation are combined. Chemical fertilizers are widely used in conventional agriculture, harming farmland and farmers' economies. The UNCED Agenda 21 directive highlights the need for ecological and social equity for a sustainable future. Considering this, farmers can be encouraged to produce vermicompost from the organic resources available on the farm. The rural farming community is struggling to cope with high fertilizer costs and later its implications. It is therefore necessary to materialize adequate capital for agriculture by evaluating the economic aspects of vermicompost production and marketing. Vermicompost can be produced on farm using locally available resources and simple devices. This will also develop an entrepreneurship opportunity among Ethiopian farmers. Marketing effectiveness depends on the purchasing behavior of farmers. In the present study, an assessment was made on the cost of materials required to start a vermicompost unit as well as the cost of producing vermicompost and the ultimate benefits derived from it. Nearly 2830 Ethiopian birr are required to start per unit and compost nutrient analysis costs 250 Ethiopian birr per sample. The initial total cost of production can be 3,000 Ethiopian birr, which will be lower in subsequent years because the production unit is permanent. The emerging business environment can add benefits to the commercialization of vermicompost and thus in...... middle of paper ......mpost in citrus cultivation in Maharashtra. Agricultural Economic Research Review, 20 (Conference): 608, 2007. Shivakumara, C. Production and marketing of vermicompost in Karnataka: a case of Dharwad district, MBA thesis (Agribusiness), University of Agricultural Sciences, Dharwad, 2008 . Shivakumar, C ., Mahajanashetty, SB, Murthy, C Basavaraja, H and Hawaldar, YN Production and marketing of vermicompost in Dharwad district: an economic analysis. Karnataka J de Agric Sci., Vol.22 no. 4 pp. 850-853, 2009.Table-1 Materials and expenses for the construction of a vermicompost unit No. Item Measures Amount Unit cost (birr) Total cost (birr)1. Wood No. 20 50 8002. Bundle of thatch 4 100 4003. Nails Kg 1 40 404. Polythene sheet m 16 20 3205. Sieve m 2 35 706. Earthworms Kg 2 300 6007. Carpenter (for construction) Man-days 3,200,600Total 2830