3. Investment costs of setting up a neem-processing plant

The details below provide a rough idea of the investment costs required to set up production plants. The costs depend greatly on the local market conditions and are presented in more detail in the case studies from the different countries.

Seed processing:

Depulping manually US$ 5 - 20/farmer

Or:

Semi-industrial wet depulping under shelter and drying on sieves, optional drying device

Building	US$	20,000 - 40,000
Land purchase	US$	5,000 - 10,000
Infrastructure
(power, water supply, roads, etc.)	US$	2,000 - 5,000
Machinery (depulping, washing)	US$	2,000 - 10,000
Drying device	US$	3,000 - 5,000
Sieves	US$	1,000 - 4,000
Other	US$	1,000_________
	US$	34,000 - 85,000

Dry processing:
Manufacturing of ground neem seeds or neem cake

Hammer mill

US$ 2,000 - 5,000

Manufacture of ground neem kernels:
Thresher/decorticator	US$ 3,000 -15,000
Hammer mill, see above
Production of neem oil:
Thresher/decorticator	see above
Oil expeller,	US$ 5,000 - 50,000
Hammer mill, see above
Manufacture of formulated oil:
Sealed stirring unit	US$ 1,000 - 3,000
Water bath	US$ 400 - 800

Small one-step extracting plants for 100 - 200 t of neem seed capacity require an investment for the machinery of US$ 30,000 - 100,000.

For decentralised oil production various manufacturers are offering different screw expellers. It is however important that the oil is cold-pressed, meaning not more than 70 C for a longer time period, and that the screw does not wear out too fast due to the hard neem shell.

A survey of different oil expellers is given in the following table (Table 5):

Table 5: Price and characteristic data of different oil expellers

Type	Manufacturer	Capacity (kg seed/h)	Power supply (kW)	Price (US$)	Remarks
AP VII	Reinartz (Germany)	70	9	16,000
DD 85	IBG Monforts (Germany)	47	3	12,000	including 2 snail screws
OP 100	Heger (Germany)	100	4	18,200	including spares
PO 101	Keller (Germany)	100	7.5	13,000
Multipress 80	Bauss (Germany)	80	5.5	15,000
Multipress 60	Baus (Germany)	60	4	10,000
Type 52	CeCoCo (Japan)	40	2.2	11,000
H 54	CeCoCo (Japan)	90	7.5	21,000
Mini 40	Rosedown (GB)	40	4	6,500
16" × 4"	Tinytech (India)	90	5.6	1,500
6 bolt 24" × 4"	Rajalaxmi Eng. (India)	65	7.5	1,000
4 bolt 18" × 3"	Rajalaxmi Eng. (India)	35	5.5	500
Sundhara 3,4	DCS Butwal (Nepal)	60	3	1,500

Source: FAKT 1996

Further investment required:

Scales:	US$	200 - 500
Bottling equipment:	US$	400
Glassware and small equipment:	US$	1,000
Storage room:	US$	500 - 1,000
Sealing unit for plastic bags:	US$	300 - 1,000
Costs of building, including the land area and infrastructure:	US$	50,000 - 100,000

The extraction plant set up with GTZ assistance in Myanmar in 1985 cost about US$ 270000. The capacity was about 300 kg of neem cake. An extract of 2 - 2.5% azadirachtin was produced.

The extraction plant of the Trifolio company required an investment of US$ 100 000 - 200 000 for the machinery and equipment. Daily about 0.4 to 1 tonne of neem was produced (an annual capacity of 2.5 - 7 t Neemazal F). The costs of the building were between US$ 25 000 and US$ 50 000, and of the installation another US$ 120 000 - 25 000. A larger plant with the same technology but a daily capacity of 3600 kg neem kernels and a production of 60 - 159 l Neemazal F requires an investment of US$ 550 000 to US$ 1.35 million (Kleeberg 1996).

References:

Brechelt, A. & Hellpap, C. (eds.) (1994): Memorias del 1er Congreso Latinoamericano y del Caribe sobre Nim y otros Insecticidas Vegetales. 377 pp., GTZ/Loyola Centre San Cristobal, Dominican Republic.

Dreyer, M. & Hellpap, C. (1992): Neem - a promising Natural Insecticide for small scale vegetable production in Tropical and subtropical countries. In: Plant Research and Development, Vol. 36, Institute for Scientific Cooperation, University of Tübingen, pp. 7-18.

FOERSTER, P. (1998): Standardisation of Analytical Methods for Neem based

Products - latest Developments. 47-54. In: Kleeberg, H. & P.W. Zebitz (eds): Practice oriented Results on Use and Production of Neem Ingredients and Pheromones VIII, Trifolio, Germany 152 pp.

Foerster, P., Hellpap, C. & Wilps, H. (1999): Activities of the Deutsche Gesellschaft für Technische Zusammenarbeit - GTZ¹ in the field of Neem (Azadirachta indica, Juss). In: Proceedings of the International Neem Conference, Vancouver, 19-21 May, Canada, in press.

¹ German Technical Cooperation

Foerster, P. (2000): Regional Outlook: Present Situation in Using Neem Trees in West Africa and Sahel, 1-12 pp. In: Brimah, A.K. (ed.): Efficacy and Commercialization of Neem Products in Ghana, Proceedings of an Open Forum Organized by Goethe Institut from 19 to 21 October, 1999. Woeli Publ. Services, 77 pp. ISBN: 9964-978-71-5s.

Foerster, P. & Moser, G. (2000): Status Report on Global Neem Usage (revised 2^nd edition) GTZ publication, 120 pp.

Grainge, M. & Ahmed, S. (1988): Handbook of Plants with Pest-Control Properties, A Wiley-Interscience publication, New York, Chichester, Brisbane, Toronto, Singapore, 470 pp. ISBN: 0-471-63257-0.

Hellpap, C. (1989): Possibilities and problems of the utilization of neem products in pest control in tropical and subtropical countries, Proceedings of the International Symposium of the Deutsche Landwirtschafts-Gesellschaft about Integrated Pest Management in Tropical and Subtropical Cropping Systems, Bad Dürkheim, 8-15 February 1989.

Hellpap, C. (1996): The Use of Neem by Farmers in the Dominican Republic. In: Singh, R.P., Chari, M.S., Raheja, A.K. & Kraus, W. (eds.): Neem and Environment, pp. 39-46, Science Publishers, Inc., Lebanon, New Hampshire.

Kleeberg, H. (1996): Development of Neem Azal: Presentation on the 5^th Workshop on Practice oriented Results and Use and Production of Neem Ingredients and Pheromones. Wetzlar, 22 - 25 Jan. 1996.

Leupolz, W. (1995): Sozioökonomische Einflußfaktoren bei der Einführung von biologisch-biotechnischen Pflanzenschutzverfahren in bäuerlichen Betrieben. Eine international vergleichende Untersuchung am Beispiel der Produktion, Verarbeitung und Anwendung von Niemextrakten in Ländern der Dritten Welt. Doctoral thesis in Economics and Social Sciences at the Hamburg University of Economics and Politics (Hochschule für Wirtschaft und Politik Hamburg).

Morgan (1999): presentation on the International Neem Conference in Vancouver, May, 1999.

Moser, G. (1996) Status Report on Global Neem Usage, Report produced on behalf of GTZ, 34 pp.

Schmutterer, H: (1999): Target pests for Application of Home-made and Commercial Neem Products, 42-48. In: Foerster, P. (ed.) (1998): The Potentials of the Neem Tree in Ghana, Proceedings of a Seminar held in Dodowa, Ghana, 127 pp. GTZ publication (available from the GTZ).

Schmutterer, H. (1995): The neem tree, Azadirachta indica A. Juss. and other meliaceous plants: sources of unique natural products for integrated pest management, medicine, industry and other purposes. H. Schmutterer (ed.). VCH Verlagsgesellschaft, Weinheim, FRG, 696 pp.

Schmutterer, H. & Ascher, K.R.S. (1987): Natural pesticides from the neem tree and other tropical plants, Proceedings of the Third International Neem Conference, Nairobi, Kenya, 15 July, published by German Technical Cooperation (GTZ), Eschborn, 703 pp. (available from the GTZ). ISBN: 3-88085-372-X, ISSN: 0723-9637.

Schmutterer, H. & Ascher, K.R.S. (1984): Natural pesticides from the neem tree and other tropical plants, Proceedings of the Second International Neem Conference, Rauischholzhausen, Federal Republic of Germany, 25 - 28 May 1983, published by German Technical Cooperation (GTZ), 587 pp. (out of stock). ISBN: 3-88085-156-5.

Schmutterer, H. & Ascher, K.R.S. (1980): Natural pesticides from the neem tree (Azadirachta indica, A. Juss), Proceedings of the First International Neem Conference, Rottach-Egern, Federal Republic of Germany, 16-18 June, 1980, published by German Technical Cooperation (GTZ), Eschborn 1982, 297 pp. (out of stock). ISBN: 3-88085-156-5.