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close this bookCase Studies of Neem Processing Projects Assisted by GTZ in Kenya, Dominican Republic, Thailand and Nicaragua (GTZ, 2000, 152 p.)
close this folder4. Case studies of small-scale semi-industrial neem processing in Kenya, Thailand, the Dominican Republic and Nicaragua
View the documentComparison of selected countries
Open this folder and view contents4.1 Kenya
Open this folder and view contents4.2 Documentation of neem activities in Thailand with special reference to the Thai Neem Products Company Ltd and the assistance provided to the DoA, Toxicological Division by CiM
Open this folder and view contents4.3. Small-scale industrial manufacturing of neem-based pesticides in the Dominican Republic
Open this folder and view contents4.4 Small-scale commercial neem production in Nicaragua

Comparison of selected countries

For this study we selected four countries representing the conditions for neem processing on each of the continents considered. It is, however, difficult to find a representative country in Asia; the situation of Thailand for example is very different to that of India or Indonesia.

Nicaragua has been added although no assistance in the strict sense has been given directly to the neem manufacturer, but traditionally good working relations exist.

The backgrounds of all these projects vary, not only due to the varying abundance of the neem tree, the ethno-social environment and size of the pesticide market, but also due to political and economic frame conditions in the individual countries. Some characteristics are presented in Table 6.

Table 6: Characteristics of the agricultural sector in Thailand, Kenya, the Dominican Republic and Nicaragua



Dominican Republic



54.5 million

21.5 million

7.9 million

4.5 million


US$ 2960

US$ 320

US$ 1600

US$ 380

Agric. production as a % of GNP





% of population working in agricultural sector





Insecticide market

12 800 t (1998) imported + 6500 t local products

1 800 t insecticide 22% = US$ 9.7 million

1000 t, value US$ 6.8 million

US$ 8.2 million

Share of insecticide market covered by neem products (value)





The data indicate quite clearly that Thailand has the largest pesticide market in terms of quantities and value.

While in Thailand the government is strongly supporting and promoting the use of low-residue locally produced alternative pesticide products, the policies in the Dominican Republic, Nicaragua and Kenya favour high-input agriculture based on agro-chemicals. Only recently has there has been a slight policy change due to pressure from the World Bank and other donors.

Thailand on the other hand also has considerable local pesticide production, while no such production exists in the Dominican Republic, and only a small Pyrethrum industry exists in Kenya, amounting to about US$ 1 million annually.

Compared to the three other countries the contribution of the GTZ to the neem processing activities in Nicaragua is marginal and consists mainly of testing neem products within IPM concepts.

Nonetheless there are quite a number of similarities between the other three countries:

· All of them export considerable quantities of agricultural produce to industrialised countries.

· In all three countries the pesticide market can be classified as "liberal".

· A small number of (international) agro-chemical companies share most of the market.

· Pesticide use has increased considerably in recent years, driven by population increase and subsequent shortage of land.

· In all three countries agricultural production is relatively intense, which also means that all three countries have the same problems such as resistant pests, contaminated resources and intoxicated labourers, and problems with high levels of pesticide residues on crops.

Table 7 indicates the formal structure of the partners, the availability of the raw material and the form of GTZ assistance.

Table 7: Partners, source of neem, form of assistance provided by GTZ



Source of neem raw material



Entrepreneur Thai Neem Products Ltd

Thai-Neem, A. indica and imports



Entrepreneur Saroneem Biopesticides Ltd

Locally available


Dominican Republic


Locally available and imported

GTZ/CIM/Deutsche Welthungerhilfe


NGO Copinim, DoA

Locally available

NGO "Stiftung Umverteilen", other NGOs, GTZ

Our partners are in Thailand a small-scale family manufacturing firm, exclusively engaged in neem processing; in Kenya a company previously in the conventional agricultural supply business for about 40 years, but now putting emphasis on bio-pesticides; and in the Dominican Republic an NGO whose pesticide activities are focused on neem. However, the latter also conducts some activities in the field of sustainable agricultural training.

All neem-processing units investigated are relatively small, often family-run ventures. There are further firms (in addition to the one mentioned offering neem products in Thailand) which also offer locally produced neem pesticides, but these have no standardised azadirachtin content.

The following table shows some characteristic data of the plants:

Table 8: Description of the potential capacities of the processing units in Thailand, Kenya, the Dominican Republic and Nicaragua



Dominican Rep.


Staff (1998)

5+4 labourers

2+3 labourers

2.5 + 4 labourers + 1-2 technicians

2 + labourers on demand


75 t

Neem cake

59 t

42 t

12.5 t

Alcoholic extract

44 t

Combined oil + alcoholic extract 42 t

25 t

Formulated neem oil

4.4 t

12.5 t

75 t

We still hope that some general principles, difficulties and constraints - but also solutions -are illuminated by these case studies which may help to avoid mistakes in other countries if similar projects are going to be started (either by private entrepreneurs or technical cooperation organisations) and that these studies help others to learn from our experience.