4.2.6.6 Analysis of economic production with and without the use of neem pesticides

Based on the present estimated costs for neem products, producers' opinion, and literature reviews, the prices of neem pesticides are hardly competing with those of synthetic pesticides. However, a study on socio-economic factors affecting the acceptance of neem extracts claimed that the difference in cost of a pesticide is not the main determinant for acceptance (Sukthamraksa 1994). That is to say there are several types of synthetic pesticides in the market; some are very cheap while others are very expensive. Consumers or farmers usually select a certain kind of pesticide based on different criteria, such as social or community communication, existing knowledge, information available, type of crops, experience of pesticide poisoning, etc. In addition, based on the calculation, the profit margin of neem extract is about 100% of the cost per unit, i.e. the profit margin is about 250 baht per litre. Hence, neem products have a chance in the pesticide market and can compete with synthetic pesticides, if the appropriate information is supplied and if they can enter the common marketing channel.