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2 nd World Congress of Agroforestry Nairobi 27 August, 2009

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2 nd World Congress of Agroforestry Nairobi 27 August, 2009

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  1. Economics of Bioenergy from Jatropha curcas:Promises, Opportunities and Constraints in Kenyan Context Miyuki Iiyama1, Patrick Zante2, Cristel Munster1, David Newman3, James Onchieku4, Meshack Nyabenge1, Violet Moraa1,5, Ramni Jamnadass1 and Jean Albergel61. ICRAF, Kenya; 2. IRD, France; 3. Endelevu Energy, Kenya; 4. KEFRI, Kenya; 5.University of Nairobi, Kenya; 6. IRD, Kenya. 2nd World Congress of Agroforestry Nairobi 27 August, 2009

  2. Literature Review • Activities in Kenya • Value Chain Development • Descriptive Statistics - Methods - Profiles of Farmers - Yields • Economic Analysis • Conclusion Overview

  3. Literature Review Agronomic Parameters Jatropha Dry Seed Yield Across Different Rainfall Regimes Wide variations: 0.2kg/tree – 2kg/tree No systematic recording Economic Analyses from TZ Uncertain yield estimates Low results International Call for Research Provenance trials Agronomy trials Breeding programs

  4. Activities in Kenya Historical and Current Activities in Kenya Sporadically old trees planted as hedges for years The boom started around 2006 Most activities are small-scale farmers News reports of large-scale foreign investment plans Unsystematic promotion of activities Various organizations & institutions Different information being relied on w/ little based on empirical data Policy Development National Biodiesel Committee (subcommittees on Research, Policy) KEBS & KERC draft standards & regulations on biodiesel An old fence (Shimba Hills) An old tree (Ralleda, Nyanza) A 3-year old plot (Mtito Andei, Eastern) A 50-ha experimental plantation (Kiambere)

  5. Value Chain Development Potential Jatropha Value Chain Potential opportunities utilizing oil and by-products Requiring significant technology development on processing & end-use Development in Kenya Active nurseries selling seeds and seedlings at high prices Planting, mainly by smallholders Experimental, small amount of SVO being tested

  6. Descriptive Statistics:Locations of 289 Jatropha Farms Visited

  7. Descriptive Statistics:Profile of 283 Farms

  8. YieldsReal (year 0-4) and Projected (year5+)Yield (kg/tree)

  9. Economics AnalysisAssumptions Assumptions on Revenue Yield data is based on high/low yield case scenarios for each plantation type The farm price of seed is assumed at 15ksh/kg (0.2USD/kg) Assumptions on Costs Cost and labor data taken from average survey data for each plantation type Fence includes very few inputs

  10. Economics AnalysisNet Margin of Jatropha by Plantation Type/Yield Case

  11. Conclusion Findings Monoculture: low yield scenario not profitable; hi yield only profitable in year 8 Intercropped: both low and high yield scenarios not profitable Fence: both hi and low yield profitable only after five years Recommendation substantial investment cannot be recommended at the current technological and market conditions, except fence Local decentralized use of oil should be explored for development Agronomy/provenance trials are urgently required to investigate factors to ensure high-yielding, drought-tolerant species

  12. Acknowledgment to Gesellschaft für Technische Zusammenarbeit (German Technical Cooperation-GTZ) Kenya Ms Carol Hunsberger of Carleton University Dr Joseph Ogutu of ILRI Farmers, Agricultural & Government Officers and all other key stakeholders Japanese Ministry of Foreign Affairs, Japanese Embassy in Kenya Thank You

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