November 5, 2018

New Azadirachtin Production Factory Signals Neem Market Growth

by Carmen in Uncategorized

As far back as 2011, our Founder and CEO, Anthony J. Archer, came across neem in his efforts to attain a first class, sustainable and non-toxic coconut plantation in Brazil. Immediately following the very first conversation with our agronomists when neem was proposed as a possibility to cover pesticide, fungicide and fertilizer needs of our project, our founder began researching the amazing benefits and viability of the neem tree. Our Founder quickly came to believe that it was only a matter of time before Neem and the 200 biochemicals contained with it, would become mainstream.

When we as a company started to discuss neem with our clients, very, very few people had even heard of it, never mind understood the benefits and potential as a key resource in the fight to attain a more sustainable method to grow food.

Belief in this tree, and of the evolving human race to adopt a more caring and sustainable set of practices, took a visionary to recognize, and courage to take on the challenge of industrializing a gift of nature that had been predominantly ignored by Western society. With no road map, but a very good moral and business compass, it has taken relentless energy and determination to develop the opportunity.

Fast forward to 2018, neem use is indeed becoming more mainstream. This post shares an exciting development in respects to neem within the U.S.

Certis, a leading American manufacturer of biological pesticides, has completed its construction of a brand new azadirachtin formulation and packaging facility located in Wasco, California. This expansion within the production of neem-based crop care highlights the increasing demand for biopesticides like Neemix (hyperlink) which is OMRI (Organic Materials Review Institute) and NOP (National Organic Program) listed, as a result of a shifting trend towards organic and sustainable inputs.

At Primal, we always aim to put ourselves ahead of the curve. The neem tree offers such innovation, and this latest development offers both credence and scale in showing neem to be a viable and sustainable solution to the future global food crisis, on a large scale. Our project in Brazil is quite simply unparalleled in its ability to fill the production void of raw neem produce. Our young plantation is already the largest neem plantation on earth and is maturing daily.

Our Founders took a huge leap of faith, and many of our clients followed. Fueled by the foresight of a generation of evolving humans, seeking to alter their behavior to create a safer, more sustainable and less toxic future, that belief now looks inspired! Mainstream agriculture’s interest and investment in to neem is now starting to take shape, and we are sure that this is just the very beginning of a long upward trend, with us in a position to reach critical mass, right at the peak of the value curve.

Toxic Pesticide Dangers

Synthetic pesticides can be toxic. This means that they can cause harmful or lethal effects after one single occurrence of ingestion, inhalation or skin contact, with over 98% of sprayed insecticides and 95% of herbicides reaching a destination other than their target. The World Health Organization estimates that there are 3 million cases of pesticide poisoning each year and up to 220,000 deaths.

Pesticides cause harmful effects over an extended period, usually following repeated or continuous exposure at low levels. Although low doses do not always cause immediate effects, long term pesticide exposure has been linked to the development of Parkinson’s disease, asthma, depression, anxiety and cancer, including leukemia, non-Hodgkin lymphoma, attention deficit and hyperactivity disorder (ADHD).

According to Beyond Pesticides, of the 30 most commonly used lawn pesticides in the United States:

  • 13 are probable carcinogens
  • Another 13 are linked with birth defects
  • 21 affect the reproductive system
  • 15 cause neurotoxicity
  • 26 cause liver or kidney damage
  • 27 are sensitizers and/or irritants
  • 11 have the potential to disrupt the endocrine system.

Pollinators, which are key to health production and the overall health of ecosystems, have been severely affected by the use of synthetic pesticides and even “pollinator friendly’ pesticides have shown to be detrimental to bee populations. The number of honeybee colonies has dropped globally from more than 4 million in the 1970s to 2.5 million today, with a third of all bee colonies in the US having perished in the last half-decade.

There is no doubt that the widespread use of pesticides in agriculture is causing serious damage to the environment, wildlife and, above all, human health. Recent cases such as a suit against Roundup’s manufacturer, Monsanto and the recent band on neonicotinoids by the European Union highlight the changing tides against synthetics in agriculture.

Why Neem?

Biodegradable and non-toxic to mammals, azadirachtin, neem’s primary active ingredient, disrupts the growth cycle of insects and deters them from feeding on plants. A naturally occurring substance that belongs to an organic molecule class called tetranortriterpenoids, azadirachtin reduces their rate of reproduction and inhibits normal feeding behavior. As neem-based products must be ingested to take effect, only insects that feed on plant tissues are prone, thereby eliminating any risk towards pollinators and other beneficial species to our environment and food supply.

The demand for nature-derived products is expected to cause a surge in the global neem market, which will grow from $653.7 million in 2015 to $1,868.2 million in 2022, at a CAGR of 16.3% during 2016 – 2022.

Annual Average Neem Seed Market Price/Quintal (100kg)

Companies like Certis are proof that the neem market is witnessing tremendous growth, and that major players are making long-term investments in neem extracts. This will in turn further increase interest and investments in the neem tree, a crop that has the power to transform the future of agriculture and food production.

At present, the major bottlenecks facing the global neem market are quality control and harvesting. With a lack of commercial cultivation, harvesting and quality control methods remain limited and offered a unique opportunity to gain scale and efficiency across neem cultivation. It was for this good reason that our initial step in to the neem market was to plant neem trees and solve the inevitable supply demand imbalance. As the largest commercial neem plantation on the planet, we are in a unique position to capitalize on the buoyant neem market and on our way to becoming a solution to the supply constraints currently facing the industry. With our ambition to become the world’s first fully vertically integrated neem business, we are help solve the issues facing the global food supply and become a leading figure within the neem market.