Worms are both male and female. Their sexual organs are located on the smooth section in the forward part of their body. When they mate they approach head to head and then touch the smooth parts and exchange sperm. Little cocoons are attached to the smooth part and when they are forced forward toward the anterior part of the worm they are fertilized in the sperm. They are deposited in the DIY worm composting bin and look like tiny straw colored lemons. The cocoons are smaller than a bead of rice and will contain up to four baby worms. When the worms hatch the babies will look like their adult counterparts but do not have the same red cast.