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Pyrethrum Natural Insecticide - Bolivia
Production, marketing and sales of organic insecticides made from
the pyrethrum flower cultivated in the highlands of Bolivia. The
project is implemented in cooperation with local farmer associations.
Pyrethrine is an excellent natural alternative
to chemical insecticides, used for example in organic farming. To
date, pyrethrum is produced mainly in the Kenyan highlands. The company
founded by three local partners will be the first commercial producer
of pyrethrum in Bolivia. It builds on a successful 15-year pilot project
conducted by the university in Cochabamba. The company will implement
the project in cooperation with local peasants who grow the flower
and with others using the insecticide for organic agriculture (e.g.
quinoa) in the Altiplano. Thus, the indigenous population will benefit
from a steady and increasing income.
The cultivation of the crop makes for an interesting
business case: The price of one kilogram of blossom harvested by
the local farmers is USD 0.90. Twelve to fifteen kilograms of dry
blossom are needed to produce one kilogram of essential oil, which
sells on the world market for around USD 100.
The project is expected to more than double the income
of initially 80 indigenous farmer families in the course of the
first cultivation cycle (four years). At a later stage, up to 600
families may benefit. In addition, 15 to 40 direct jobs will be
created. The business promotes organic farming in Bolivia as Pyrethrum
is well-suited as a natural insecticide for plantations of quinoa.
The management team combines business and technical
expertise. The project builds on the preparatory work of the university
in Cochabamba which designed and tested equipment to extract pyrethrum
concentrate from the natural ingredients. The start-up company has
already negotiated first off-take agreements with organic quinoa
cooperatives and in the mid term aims to tap the under-served international
market in order to reduce the commercial risks and secure a higher
price.
The money will be used mainly to buy and install the
technical equipment for the pyrethrum production and to set up pyrethrum
flower nurseries. In addition, it will support the development of
the supply chain from the local farmers to buyers both on the world
market and in Bolivia, where the company targets organic farming
cooperatives.
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