Horizon Group and United Kingdom firm AGROPHARM (UK) will establish a plant in Musanze district to produce organic products to be used in crop protection, animal protection and public health.
The plant is expected to cost about US$1.2 million with each partner contributing 50 percent.
In an interview with Business Times, Gabriel Bizimungu, the General Manager of SOPYRWA, the country’s sole pyrethrum factory said the infrastructure is ready.
The plant is expected to be operational by September 2011
It will begin by producing 5EW— a water based pyrethrum insecticide used mainly in coffee plantations to fight against major coffee pests like Antestia bug.
“The plant has the capacity to produce different products, which are purely organic and most preferable by the market,” Bizimungu emphasised.
The initiative is expected open up a vast industry of organic produce from coffee to horticultural products for domestic use and export.
Besides production for the local market, they would also export to Ghana, Ivory Cost, Zambia, Mozambique and other Western Africa countries especially in cocoa production.
“We have already started to market the products in East African Community which is our priority market,” he said.
Rwanda will be saving between US$2-3 million used to import similar products.
“Pyrethrum based insecticides to be formulated in Rwanda will be key to the development of organic products for export that earn a premium,” he noted.
Bizimungu suggested that Rwanda should put more emphasis to quality and niche products that are more preferred choice compared to quantity thus reaping premium prices.
“The case of fully washed coffee is a proof of this concept. Natural insecticides from Rwandan pyrethrum will boost the factory and other sectors,” he expressed optimism.
With the production of natural insecticides like 5EW in Rwanda the country could open up a vast industry of organic produce from coffee to horticultural products for domestic use and export.
Due to high demand for the product on the International market, prices increased between 20 and 40 percent with the highest quality extract costing US$ 250 and US$ 300 per kilogram of refined extract.
This year, Sopyrwa exports increased to 130 percent both in both value and volumes, a move driven by land consolidation, prompt payment to farmers and cooperative organisation and extension services.
Current world pyrethrum demand is estimated to be four times higher than the supply. The demand for pyrethrum is attributed to the growing consumer awareness on safety and environmental concerns.