Pyrethrum Marketing

PYRETHRUM MARKETING

The produce is collected by the aggregators at collection centers,cooperative societies or individual farmers. The dray flowers are sold through cooperative societies and marketing agents. An advance payment of ksh100 kg is paid on delivery and balance paid after pyrethrin analysis in the factory. Farmers are also receive bonuses annually based on profitability of the industry.

The refined product, pale extract, is the current cash cow for PBK. It has a range of market segments in the Americas (52%), Europe (35%), Austria & Asia (8%) and Africa (5%). One kg of the product sells at US$ 270 and due to the high demand, the customers always desire to pay up-front once processing is assured. PBK has also diversified its value chain by formulating insecticides. To date, six end use products have been registered, one of which gives a profit of Ksh 22,000 per kg compared to Ksh. 3,000 per kg profit margin from the refined product.

For every processing of 100 MT of flowers, 1.65 MT of the refined product is produced; refined product, known as pale extract which is mainly exported (80%) and remaining 20%  sold to formulators for value addition .

There are three (3) levels of Product Portfolio: Technical product, By-Products and End-Use Products (insecticides). After value addition the above 3 categories of products confirms that pyrethrum fits well in the economic pillar of vision 2030 as the crop can be converted into a myriad of value added products. Thus, every single product derived from pyrethrum becomes a raw material for other products.
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