KIGALI - Rwanda pyrethrum growers association (SOPYRWA) yesterday signed a pyrethrum toll refining agreement with McLaughlin Gormley King (MGK), an American company dealing in pyrethrum.
According to Gabriel Bizimungu, General Manager of SOPYRWA, the deal will see his company record more profits.
“MGK purchases crude pyrethrum extract from other suppliers and wants SOPYRWA to refine the crude extract to facilitate production of refined pyrethrum,” said Bizimungu.
The deal will be more profitable with 1 kg of pyrethrum charged at US$14 which will help revive the business in Rwanda.
Bizimungu also noted that the agreement was signed because Rwanda is the only country in the region with a pyrethrum refinery, making it less costly for MGK to refine the product here instead of shipping it to America.
For the pilot phase which the officials say will commence soon, MGK will supply 4,000 tons of pyrethrum for refining with the amount increasing in future.
SOPYRWA’s refining capacity is 60 tons of refined pyrethrum per year and 3,000 tons of dry flowers although it still operates under capacity with this year’s production standing at only 378 tons.
“With this agreement, we hope that our factory will be functional most of the time unlike previously whereby six months would go by without any production,” added Bizimungu.
The two-year renewable agreement makes SOPYRWA an independent contractor maintaining and controlling its employees, agents and operations.