How to compost food waste into organic fertilizer:
Composting is a great way of disposing of food waste. Another good option is a vermicomposter (aka worm bin). Worm bins are ideal for people with space issues, such as those living in an apartment without a garden. A worm bin can easily be stored anywhere inside a house or outside if it isn’t too cold.
Worms are kept covered in a bin with bedding such as shredded paper or peat moss and fed kitchen scraps. Be careful not to overfeed the worms. The worms will digest the food and produce a nutrient rich compost. Worms reproduce rapidly, so you can easily obtain worms for your own bin from someone who is already keeping a worm bin, or else purchase them.
Here is a comprehensive site on how to keep your own worm bin:
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