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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
close this folder4.1 Kenya
close this folder4.1.4 Economic assessment of the neem processing plant in Kenya
View the document4.1.4.1 Technical and economic description of Saroneem Biopesticides Ltd
View the document4.1.4.2 Production costs

4.1.4.1 Technical and economic description of Saroneem Biopesticides Ltd

There is only one manufacturer of neem-based pesticides in Kenya, Saroneem Biopesticides Ltd (formerly Saroc Ltd). The company is processing neem pesticides in a one-step extraction plant (see section II.2.3).

The following provides key data on the neem-processing plant in Kenya:

Location of the plant: on the outskirts of Nairobi at Technoparc of the "Centre of Insect Physiology and Ecology (ICIPE)".

Owner: Saroneem Biopesticides Ltd is owned by Mr Dorian M. Rocco, Nairobi. The building and land at ICIPE are leased from ICIPE.

For a description of the location and list of machinery see above.

Capital invested:

US$

43,500.

Detailed breakdown:




· Machinery & equipment:

US$

32,500


· Oil expeller:

US$

6,000


· Electric installation:

US$

500


· Raw materials:

US$

4,500

Staff:

· Number of full-time employees:

2

· Number of part-time workers:

3

The full-time staff are working in production, distribution and sales. The part-time workers only work in production and are requested on demand, according to the orders received. Over the period from 1 October 1998 to 30 September 1999 they were employed for eight months.

It has to be taken into consideration that some of the work of packing, bottling labelling, sales and administration for the fluid neem pesticides is carried out by the non-neem-processing wing of the former Saroc Ltd.

Period of Operation:

entire year

Operating days per year:

300 days.

Production capacity per day:

potential:

440 kg neem seeds2

in 1999:

86 kg neem seeds3

per year:

150 t neem seeds

2 Based on 360 production days per year and 24 production hours per day.
3 Calculated average daily production for 300 days of production per year.

Based on a production capacity of 360 days annually and 24 h/day, it appears that only 20% of the potential capacity is used.

The following products can be manufactured per day, using the amount of neem seeds mentioned above:

Potential:

142 l Neemroc (see below)

and:

140 kg Neemros (see below)

or:

308 kg Neemros (see below)

actual:

33 l Neemroc (see below)

and:

32 kg Neemros (see below)

or:

51 l Neemroc (see below)

or:

72 kg Neemros (see below)

The following table (12) provides a list of the neem products of Saroneem Biopesticides Ltd. and their prices.

Table 12: Prices and neem products offered by Saroneem Biopesticides Ltd.

Product

Retail price KSH per kg or l

Wholesale price KSH per kg or l

Neemroc EC 0.03% W/W

400

330

Neemros 0.5% powder

200

160

Alcoholic extract (1.0% azadirachtin)

500

410

Unfiltered oil

300

250

Neemsar "O"

600

500

ULV formulated oil



Product description:

· Neemroc EC 0.03% W/W: for product description see page 39 above.

· Neemros 0.5% powder: for product description see page 39 above.

· Alcoholic extract Saroneem "M" 1% EC (1% azadirachtin): the alcoholic extract is used for the production of Neemros. It is sold for research purposes only and has not been registered. The product has hardly any significance at all for the profit of the company.

· Unfiltered oil: this is also a raw material for manufacturing Neemroc and is only sold for experimental purposes. It has hardly any significance at all for the profit of the company.

· NEEMSAR "O": this is a filtered oil for pharmaceutical purposes and has to be regarded as a by-product. It is used as an insect repellent and to treat skin diseases such as fungal infections.

· ULV formulated oil: this product is based on neem oil and is used for experiments in mosquito control by application to water. Currently the product is under investigation.

At the end of 1999 the following products were of commercial and economic relevance for the company:

Neemroc, Neemros, and to a certain extent Neemsar "O" (skin oil).


SARONEEM BIOPESTICIDES' neem-processing unit at Techno Parc, ICIPE


Drying neem seeds at ICIPE


Cold pressing of neem oil


Labelling and packing a mosquito-repellent based on neem oil


SARONEEM BIOPESTICIDES' registered neem products: standardised formulated neem oil and neem cake powder