An apparatus and method for treating organic waste sludge such as sewage sludge is disclosed wherein the sludge is first dewatered, moved to a day hopper for storage, and then successively passed through first and second reactors. As the sludge is passed through the first reactor, in a continuous fashion, the sludge and acid are thoroughly mixed and has the pH thereof substantially lowered due to the addition of acid in the first reactor. The sludge is then moved through the second reactor where the sludge is subjected to a base material to substantially raise the pH thereof. The treated sludge is then pumped from the second reactor to a pugmill and then to a dryer which dries the material. The dried material is then suitable for use as a fertilizer.