4.4.5.3 Further neem manufacturers in Nicaragua

Neem-processing plant of Investigaciones Organicas, S.A. (IOSA), Nicaragua

Beside the neem-processing plant of Copinim, a second plant is currently under construction by the Donald Spencer Group, called IOSA: Investigaciones Organicas S.A. Managua, Carr. Nueva a Leon km 13.5.

IOSA is a new company which started in the neem business in 1999 and bought about 20 t of neem fruits to be processed in its own production plant. A large neem tree plantation at "Los Brasiles", a 50 ha plantation was given back from Copinim to the former owner, Donald Spencer, who is selling the neem kernels to IOSA.

IOSA is owned by a shareholder company which is directed by Dr. K. Gruber, who formerly assisted Copinim. The company has two further members and is located in the building of the Spencer Group. The group invested about US$ 80 000 in machinery, while the building and plantation was already available.

Nothing can be said about the staff numbers and capacity utilisation, since the production will start in June 2000 with the neem harvest in Los Brasiles and Malpaisilla. It is intended to offer ground neem seeds, raw neem oil, formulated neem oil, neem cake and neem paste and to register all products.

UNI-Leon has an extraction plant for perfume available and is producing alcoholic neem extracts on request

A private chemist called Freddy Soza is producing alcoholic neem extract under the brand "Organ Nim", which consists of an alcoholic solvent and ground neem seeds.

The two latter manufacturers have not registered their products and do not supply the market continuously.

The total amount of neem production in 1998 in Nicaragua was about 5000 kg of neem products.

The customers can be divided into four groups:

· Export, mainly El Salvador: approx. 30%
· NGOs: approx. 40%
· Agricultural supply trading: 20%
· Farmers: 10%

It is estimated that about 100 - 200 Nicaraguan farmers apply neem pesticides frequently.

Some interesting experiments in cooperation between manufacturers of neem pesticides and farmers failed due to financial and organisational deficits. For such ventures it is necessary that the partners have sufficient capital, and also economic knowledge.

Now that the Spencer Group is engaged in neem processing and marketing, new perspectives have opened up for neem products in Nicaragua since the group possesses its own plantations and sufficient capital to invest in the production, and is also well organised.