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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 folder4.1.5 Market potential, investment possibilities, marketing and development strategies
View the document4.1.5.1 Marketing of neem products to date
View the document4.1.5.2 Market potential
View the document4.1.5.3 Analysis of Economic production with and without the use of neem pesticides
View the document4.1.5.4 Market growth potential and substitution possibilities

4.1.5.2 Market potential

The current share of neem pesticides in the Kenyan market is limited due to the following factors:

· The short time since the pesticides were registered (at the end of 1998)
· Limited production capacities of the neem-processing plant
· Limited resources for advertising and distribution
· Investment required in demonstration and training

In the period from 1 October 1998 to 30 September 1999 11 t of neem pesticides from Saroneem Biopesticides were sold, with a value of KSH 2.725 million.

This resulted in a share of the market for different groups of pesticides as shown in Table 20.

Table 20: Market share of neem pesticides

Market/group of pesticides/Market segment

Market share* of neem pesticides Products in %*


Ref. value

Ref. volume

Total pesticide market

0.09

0.14

Insecticide

0.24

0.63

Market segment "General Horticulture" (not including potatoes & pineapples)



Total pesticides


1.53

Insecticides


3.28

* The market share has been calculated according to the volumes of registered neem pesticides; no illegally imported pesticides are considered. The real share for neem products will therefore be slightly higher.

Besides the two pesticides registered and sold by Saroneem Biopesticides Ltd, one Indian product has been registered and application was made for registration of two other products from the US and India in 1999.

There is a certain market potential for neem pesticides in Kenya and there are many factors which support the assumptions that the demand will increase in the near future.