Status Report on Global Neem Usage - Gtz

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3. NEEM AS A NON-SYNTHETIC PESTICIDE• Use of neem as a home-made pesticide does not have high social status• Technical problems in processing and use as a home-made product• Neem raw materials can only be stored for a limited period in humid tropical conditions.Many of the above drawbacks are closely related and could be remedied quite easily. Bydisseminating knowledge about neem, it is possible to do away with some restrictions onuse, such as doubts as to its effectiveness or the low esteem in which neem usage is held inmany societies. The problems associated with processing and application could be resolvedwith specifically targeted promotion, e.g. by state extension services.In many developing countries it is principally NGOs and small businesses which are active inspreading knowledge about neem and its uses. One advantage here is that the spread ofraw neem products does not require a large starting capital, nor sophisticated know-how.This means that a lot can be achieved even with very modest means (see examples given inChapter 4). This could also be a promising area for Technical Cooperation (TC), e.g. inpromoting small and medium enterprises.Yet another complex obstacle to using neem is the insufficient number of neem seeds forproducing pesticides. However, professional marketing, be it of raw materials or ready-formulatedpesticides, could provide a way out of this dilemma. At the same time, in those regionswith large stands of neem trees, there is the obvious opportunity of diversifying income.SOURCE: Own studies: MOSER, G (1996): <strong>Status</strong> <strong>Report</strong> on Global Neem Usage, GTZ.Chamberlain, J.R., Childs, F.J., and Harris, P.J.C. (1999): Results of Neem ElectronicWorkshop, 1-18 November, 1999. HDRA, Coventry, UK, 67pp. & Internet-e-mail/neemworkshop1999: www.hdra.org.uk/neem.htmJABBAR, A. ROBIN, H. & C. STRANG 1997: A Comparison of the Effects of Azadirachtin Aon Cultured Insect and Mammalian Cells, TRIFOLIO Proceed 7 th WS, pp 5-9))3.4 Economic Efficiency of Neem as a PesticideThe costs of neem pesticides are mainly determined by the price of the seeds. This price canvary greatly from one country to the next and is due to the relatively labour-intensive inputsneeded for seed collection and drying but also for any transport, storage and further processingthat might be necessary. A further important factor is the structure and efficiency ofthe marketing chain i.e. the shorter the chain between collector and final processor of neemthe cheaper is the price and the better the price for the raw material. The varying availabilityof seeds also contributes to price fluctuations (5, 10-12, 14, 34 -38).Throughout those countries where neem trees are grown, the prices given for dried seedsrange between US$ 0.05 and 2.00 per kg. (5, cf. also table 3.4). The price depends verymuch where the seeds are collected (farmgate, rural areas, district town, capital) and on thequality of the seeds.27
3. NEEM AS A NON-SYNTHETIC PESTICIDEThe tendency is that the prices for neem seeds in India are the lowest. Neem seeds in Indiahowever were traditionally processed into oil for soap manufacturing, where the quality of theseeds are not as decisive as for pesticide production. Comparable low prices as in India arepaid in remote poor areas in Africa e.g. Nigeria, Benin, Niger, Madagascar. At these siteshowever quality problems, the trading through middlemen and transport costs increase theprices for those who want to manufacture neem seeds into pesticides and need high qualityseeds. About 0,30-0,4 US$/kg minimum has to be paid by manufacturers for neem seedswhich should be processed to pesticides.The prices for neem raw material can be much higher if the quality is excellent and seeds areintended to be used for pharmaceutical products.To make some rough calculations the following aspects must be taken into consideration:To effectively control most pests, one hectare of crops must be treated once with between 20to 60 g of the main active ingredient azadirachtin. Thus, given the fact that there are approx.2 g of azadirachtin in average per kg of seeds, somewhere between 10 and 30 kg of neemseeds are needed in all. This means that the seed costs alone for the single treatment of onehectare of crops vary between US$ 1.00 and US$ 60.-, although in most countries they aresomewhere in a narrower range of between US$ 5.00 and US$ 20. This rough calculationindicate again the importance the quality has (taking the azadirachtin content as anindicator).Calculations by researchers and governmental extension services in Sri Lanka (Cf chapter 4Sri Lanka), Thailand and Madagascar (39) in the 90ies revealed that based on the preparationand application home-made neem kernel water extracts and despite the labour intensityrequired the application of neem is (much) more economical in high value crops such asvegetables than conventional cheap toxic broad spectrum pesticides. Environmental effectsand health hazards were not even considered in this calculations. It has to be mentioned thatonly few economical investigations in this field exist or are published and that the economy ofhome made neem pesticides strongly depends on the costs and availability of labour.At this juncture it should again be pointed out that while azadirachtin is one of the majoractive principles in neem, its action is enhanced by many of the other substances occurringin the plant. Many of its effects, e.g. that against phythopathogenic fungi, are only apparentwhen the mixture of substances is used or ingredients other than azadirachtin are concentratedin further processing steps. Strange enough often single components on their ownhave shown no or poor effects.For half-finished product such as dry neem kernel, neem cake or neem oil no economicalevaluation is known to us. The products are cheaper than the ready-to-use pesticides but stillhas the disadvantage that their preparation is labour intensive and that they are often notstandardised. On the other hand also these form of neem products proved to have their marketsand they are sold to a certain extent, especially if advise and training is available how toapply them in the right way.28
Page 2 and 3: iviDivision 45Rural DevelopmentWork
Page 4 and 5: Table of ContentsPageForeword for t
Page 6 and 7: FOREWORDForeword for the 2 nd Editi
Page 8 and 9: SUMMARYIndeed, neem has been effect
Page 10 and 11: 2. GLOBAL NEEM DISSEMINATION AND US
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Page 48 and 49: 4. NEEM IN DEVELOPMENT-COOPERATION
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4. NEEM IN DEVELOPMENT-COOPERATION
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5. PROSPECTS AND POSSIBILITIES FOR
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6. OUTLOOK6. OutlookIn many develop
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ANNEXAnnex103
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ANNEX14 OSTERMANN, H.: Zur Wirtscha
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ANNEX41 GRUNEWALD, J. & A. VOLLMER
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ANNEXGERRITS, R., VAN LATUM, E., (1
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ANNEXList of addresses of those org
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ANNEX- Coopération de Soyo, Martin
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ANNEXList of Publications on Neem o
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ANNEXHELLPAP, C. & DREYER, M. (1995
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ANNEXInternational Institute of Tro
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ANNEXSOMBATSIRI, K., ERMEL, K. & SC
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Status Report on Global Neem Usage - Gtz

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