4.3.5.2 Market potential of neem pesticides

The agricultural sector in the Dominican Republic is characterised by unequal land distribution and sizes of farms (15% of farmers cultivate 50% of the agricultural area, 80% of all farms are smaller than 5 ha). Many farmers acquired 3-5 ha plots as the result of an agricultural reform process. The problem related to this land is that it could not be mortgaged, which would be necessary for buying agricultural inputs. In total nearly 2 million ha are used for agriculture.

The main agricultural export products are sugar cane, coffee, cocoa and tobacco, but also banana and pineapple. For local consumption mainly rice, maize and vegetables are produced.

In 1998 the following areas (in ha) were cultivated with following selected crops, which might have a potential for neem application (listed by the decreasing potential for neem application):

The export market for vegetables, fruits and flowers, especially in the USA, is a market for neem pesticides, because the crops are checked for residues of synthetic pesticides.

Complaints of crop samples contaminated with pesticide residues over the permitted levels result in heavy losses, because the entire container is sent back. It can be expected that the market demand will increase in the future.

Vegetables cropped for export and treated according to IPM concepts are brassicas, carrots, lettuce, onions, beetroot and garlic. According to the MoA there is a good opportunity for neem pesticides in following crop species:

The DoA recommended substituting three out of ten insecticide applications (e.g. in tomato) with neem.

The following table (49) lists the crop species and pests where this concept has been used successfully (according to FAMA):

Table 49: Cost comparison between neem oil and conventional pesticides

In principle the preparation of the pesticide solution based on formulated neem oil is similar to that of synthetic insecticides. The applications, however, have to be carried out more intensively and more thoroughly. It is also important to apply the neem pesticides in the evening or early morning to avoid fast degradation by UV light.

To prepare a pesticide solution of ground neem seeds much more time and additional equipment is required (see Chapter II, 2.1).

Although there are about 1000 - 2000 farmers cropping according to organic farming regulations, the market share for neem products has been very small in the past.

This is due to the fact that neem products are not very well known and tested in organic cropping systems. A further potential market for neem pesticides can be expected in this sector.