4.2.6.3 Market potential

Neem extracts and pure compounds have been evaluated against more than 400 species of insect pests (Schmutterer 1995).

Neem extracts have been compared with synthetic pesticides for controlling insect pests, for example:

· Control of insect pests of crucifera and citrus. The results showed that the effectiveness of the neem extracts was not significantly different from abamectin pesticide (Sombatsiri 1995).

· Control of insect pests of soya bean (Chaowattanawong 1988)

· Ophiomyia phaseoli (high efficacy - as prothiophos 0.15%)
· Lamposema spp. (high efficacy - as monocrotophos 0.15%)
· Empoasca sp. (moderate efficacy)
· Nezara viridula (no efficacy)

A limited price survey of retailers in Bangkok and Rangsit in Pathum Thani Province the following prices of the insecticides, including neem products from the could be found (see Table 42).

Table 42: Selected insecticides with trade name and price from retailers in Bangkok and Pathum Thani, Thailand 1999

Common name	Trade name	Price (baht)	Per unit
Bacillus thuringiensis	Thuricide HP	700	1 kg
Carbaryl	Sevin 85% WP	40-45	100 g
Carbofuran	Carbofuran 3% G	60	1 kg
Carbofuran	Nafudan 3% G	600	15 kg
Carbosulfan	Posse	270	500 ml
Delamethrin	Decis 3	120	100 ml
Diazinon	Basudin 60 EC	550	1000 ml
Lambda-cyhalothrin	Karate 5 EC	100	100 ml
Methomyl	Lannate	85	100 g
Monocrotophos	Azodrin 60	60	100 ml
Monocrotophos	Nuvacron 60	250	500 ml
Azadirachtin	SADAO THAI 555	35	700 g
Azadirachtin	ADVANTAGE	210-260	1000 cc
Neem products	BIO-INSECT	40	100 cc
Neem products	BIO-M	45	150 cc

Note: 20 baht = DM 1 (exchange rate in 1999)
Source: Survey in 1999

Only a few retail shops were offering neem products at all, indicating again the need to put emphasis on developing efficient distribution and marketing concepts for the neem pesticides. The staff of the retail shops report that neem products have not been popular in the area, due to the lack of a knockdown effect and the slow action, indicating the need for more efforts in marketing, training and demonstration. There were other pesticides and fertilisers listing their active ingredient as neem but not specifying the quantities nor any concentration of active ingredients.

It is not realistic to make a comparison between the costs of using synthetic and neem products without field experiments. Only limited data has been available to date on the economics of IPM systems including neem, compared to conventional IPM systems recommended by the agricultural extension department or farmers' practice. This sort of data and studies would provide a clearer picture of potential markets for neem pesticides and/or the steps required for marketing neem products. However, the information on the recommended pest control methods of some selected crops may give a rough idea on which (synthetic) pesticides can be substituted by neem pesticides (see Table 43).

Table 43: Some selected crop protection recommendations from the Department of Agriculture, 1998, and the Thai Neem product company

Crops	Insects	Insecticides	Trade name	Rate	Cost (baht/ application)	Application
Vegetable				0.16 ha use 160 litre
Crucifers and other vegetables	Plutella xylostella Trichoplusia ni	Bacillus thuringiensis	Thuricide HP	60-100 ml/20 litre	70	Spray every 4-7 days
		Delamethrin	Decis	10-20 ml/20 litre	10-24
		Lambda-cyhalothrin	Karate 2.5 EC	20-30 ml/20 litre	20-30
	Spodoptera exigua	Bacillus thuringiensis	Thuricide HP	60-80 ml/20 litre	56	Spray every 4-7 days
	Liriomyza brassieae	Carbosulfan	Posse	50-70 ml/20 litre	3-4,5	Spray every 4-7 days
	Phyllotreta sinuata	Carbosulfan	Posse	50-75 ml/20 litre	3-4,5	Spray every 4-7 days
	Hellula undalis	Lambda-cyhalothrin	Karate 2.5 EC	20-40 ml/20 litre	20-40	Spray every 4-7 days
Tangerine, pomelo and lime (when 5 years old use 5 litres)	Archips sp.	Bacillus thuringiensis		60-80 g/20 litre	56	Spray every 3-5 days
	Othreis fullonia	Carbaryl	Servin 85%	20 g/20 litre	8
Mango (when 7 years old use 10 litres)	Idioscopus clypealis, I. niveosparsus	Lambda-cyhalothrin	Karate 2.5 EC	10 ml/20 litre	10	Spray before flowering stage
		Delamethrin	Decis	10 ml/20 litre	12
		Carbaryl	Servin 85%	60 g/20 litre	24
	Scirtothrips dorsalis	Lambda-cyhalothrin	Karate 2.5 EC	10 ml/20 litre	10	Spray every 7-10 days
		Carbaryl	Servin 85%	60 g/20 litre	24
Orchid (0.16 ha use 120 -140 litre)	Thrips palmi and Dichromothrips corbetti	Carbosulfan	Posse	30-50 ml/20 litre	54	Spray every 4 days
Crucifers and other vegetables	Plutella xylostella Trichoplusia ni Spodoptera exigua Liriomyza brassieae Phyllocnisties	Azadirachtin	SADAO 111	25-50 ml/20 litre	29	7 days

Note: For costs of insecticides see Table 2.8
Source: DoA (1998)

This table indicates that considering only the cost per application (not taking into consideration long-term effects and the advantages concerning the environment and health), the neem products are cheaper than specific pesticides such as Bacillus thuringiensis but more expensive than standard broad-spectrum insecticides such as Karate or Decis.

Neem products can replace any synthetic insecticides that are used to control the following insects: caterpillars, leaf miners, leaf rollers, cutworms, psyllids, aphids, borers, fruit flies, thrips, spider mites and so on. There is a potential for neem use on vegetables, fruit trees, flowers, rice and other field crops (maize, sorghum, soya bean, mung bean, cotton, and sesame) in Thailand.

Despite a lack of in-depth investigations and adequate data the following studies can provide some indications:

Teepasiri (1995) conducted a comparative study of vegetable production costs, revenues and profits between cultivation practices using synthetic pesticides and those using synthetic pesticides together with neem extracts in Sai Noi district, Nonthaburi Province. The results showed that costs, revenues and profit per unit area of farmers who used synthetic pesticides together with neem extracts were greater than those of the farmers who used only synthetic pesticides in vegetable production (see Table 44). It is possible to introduce neem products with other synthetic pesticides.

Table 44: Vegetable production costs, revenues and profits in different cultivation practices, Nonthaburi Province, Thailand

Items (baht/rai)	Chinese kale		Chinese turnip
	Synthetic pesticides	Synthetic pesticides + neem	Synthetic pesticides	Synthetic pesticides + neem
Production (kg/rai)	2,596.40	2,789.68	1,959.10	2,123.02
Revenue	15,589.89	16,636.13	5,896.89	6,390.29
Total costs	9,515.92	10,061.52	5,670.99	6,148.26
Profit	6,073.97	6,574.61	225.90	242.03
Variable costs	7,086.99	7,221.53	4,900.55	5,373.37
Gross margin	8,502.90	9,414.60	996.34	1,016.92
Costs of synthetic pesticides	404.03	622.14	272.24	377.80
Costs of neem extracts	-	72.74	-	47.58

Note: 20 baht = DM 1 (exchange rate in 1999)
Source: Teepasiri (1995)

If there is a pest outbreak, neem extracts alone might not be an ideal concept for controlling pests. In the short run, using neem products requires higher input costs.

In the long run, the costs might be lower than those of applying synthetic pesticides. This is because using neem products contributes to maintaining or creating an ecological balance in farming systems and reduces the likelihood of pest outbreak.

A further demand for neem products might result from the export of vegetables and fruits and the increasing controls on pesticide residue levels by the authorities of the importing countries. However, even today some exporters are reporting that pesticide-free products are more competitive and fetch a higher price.

In Thailand, there is limited promotion of applying neem products in agriculture. However, some government policies (such as pesticide-free vegetable products, awareness of toxic synthetic pesticides via government projects, media and the national "economic and social development plan") encourage use of bio-pesticides such as neem products.

Due to increasing consumer awareness of toxic synthetic pesticides, it can be expected that there will be a growing market for neem pesticides in the future.

The reasons are as follows:

· The amount of neem products sold increases every year.

· Due to the promotion of neem products used in agriculture by Kasetsart University, training has transferred information, knowledge and technology from the scientists to the farmers. In addition, the successful application in some orchards (mango, citrus, orchid and vegetables) will spread among the farmers.

· Regarding resistance of insects to synthetic insecticides, an alternative may be the application of plant-derived or other organism-derived insecticides instead of synthetic pesticides.

· Awareness of the producers and consumers of hygienic products.

· Government effort to control agricultural products (vegetables) without hazardous chemicals on the market, Bangkok.

The higher demand will be an opportunity for increased production and better business with neem.

The questions to be answered are, whether the neem producers can afford to cope with an increasing demand; and whether the market is guaranteed. Other constraints in this business should be considered, for example:

· Lack of raw material²³
· Inferior quality of raw material
· Short shelf-life of the products
· Competitiveness in the markets for synthetic and other insecticides

²³ The fluctuation of neem seed yield is the main problem in estimating the future supply of neem products (expert opinion). Harvesting neem fruit is labour-intensive.

More research on marketing and dissemination concepts is required for neem products to communicate the information on neem to the users (farmers), so that use of neem products can be more effective and there will be less impact on the health of both producers and consumers. More information is required for comparison of the use of neem products (ready-to-use products) and other conventional insecticides on any insects or crops.