4.4.5.5 Market growth potential and substitution possibilities in Nicaragua

In the Dominican Republic and in Nicaragua the market requires a product which is characterised by good quality and easy handling. In addition the packing should be stable and provide sufficient protection against humidity, and should contain a description of how to apply the product, provide information on the toxicity and protection needed, as well as a registration number.

The neem manufacturers in the Dominican Republic and Nicaragua fulfil these requirements

In both countries there are economical constraints on neem pesticides. There are no government promotion programmes to assist neem manufacture and use. While on the one hand the import of pesticides is free of tax in the Dominican Republic, tax has to be paid for the import of neem raw material for manufacturing neem pesticides.

On the other hand no constraints or conditions hinder investment in manufacturing neem pesticides. In general any sort of foreign investment is most welcome and supported.

One of the unfavourable frame conditions is that no national certified or recognised laboratory is able to carry out analysis of azadirachtin content which has so far been carried out in laboratories abroad.

Although being part of the conventional pesticide distribution system, marketing and distribution of neem products have not been effectively organised so far, and can and must be considerably improved.

Both neem manufacturers, Copinim and IOSA, must find strategic partners such as the conventional agricultural supply services which have more motivation and interest in selling the products.

Copinim has a further problem: it cannot supply the market constantly with the required product volume. This constraint has to be overcome.

Customers of Copinim so far have been exporters of agricultural produce, NGOs, organic farmers and research institutes.

Up to 1999 neem products were of marginal importance. Due to the MRL regulations (see Chapter II) an increasing market potential can be expected for those farmers who are producing for export.

A marketing strategy should focus firstly on the substitution of more expensive biological or selective synthetic pesticides.

A further market which could be expanded is organic farming, where hardly any alternative control measures exist which are effective as neem. In Nicaragua the main crops are cotton, coffee, cocoa, maize, rice, sesame, soya and to a certain extent tomatoes, but only a few vegetables.

BCS-Control (the local certification organisation for organic farming) is accepting the application of neem product in certified organic farming systems.