BoP FUND PROJECTS Bush-Proof Products          for the Poor of Madagascar Dignity, Health & Clean          Water - EcoSAN in Ethiopia Jatropha Biofuel for          Local Markets, Tanzania Pyrethrum Natural           Insecticide, Bolivia

SMALL-SCALE PROJECTS Smallholder Shell Fish          Farmer Cooperative in Vietnam Empowering Low-Caste          Women's Cooperatives Nepal KAITE - Social Investment          in Zimbabwe Fighting Poverty in the          Dry South of Madagascar

 

 

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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