Neem Tree Bussiness

The business, Neem Tree Farms, so far has been more exciting than profitable. Since 1992, the business has grown from zero to $300,000 a year in revenue. They ship about 20 saplings a day, all over the world, from Alaska to Africa.
Sure that's pocket change for the multimillion-dollar neem industry, but herbal experts and Parsons believe they are on the cusp of a neem explosion.
They dream that neem will become the next aloe vera, a once-obscure moisturizer for sunburn and other skin ailments that comes from the tropical plant by the same name. Aloe vera lotions now line the shelves of every major grocery and convenience store in the nation, and rack up $123 million annually in sales.
Parsons doesn't expect neem to become an overnight sensation in the United States.
"We're more concerned about promoting neem and its benefits than getting rich right now," Parsons said.
Their biggest hurdle right now is managing the growth of their business to ensure it doesn't require taking on heavy debt to fund expansion.
Wholesalers and retailers say neem is about a $10 million industry in the U.S., less than 10 percent of aloe vera sales.
Ronnie Cummins, national director of the Organic Consumer Association, a nonprofit organization that represents more than a half-million organic customers, said neem producers such as Parsons and Britner are on the leading edge of a trend.
"Neem stands to become a very popular product in the United States," Cummins said. "There are more and more products available every day."
He said as more Americans discover all the benefits of neem, the market will grow.
In India, the world's largest producer of neem and where the tree originates, the herb accounts for about $10 million a year in sales, according to the industry.

Pramila Thakkar, founder trustee of the Neem Foundation, said annual sales in India alone could jump to $100 million in a few years as interest increases in the United States and Europe.

Neem-based products are creeping their way on to the shelves of local stores, usually shops that specialize in herbal or organic products. Neem is most popular in lotions, premium soaps and shampoos.

"It's becoming very popular among people who value natural products," said Xavier Yrausquin, customer service manager with By The Planet, Inc., a Gainesville-based natural product company with more than $2 million in annual sales.

The company sells about 45 neem-based products, including shampoos, soaps and lotions. Strong demand for neem in the past year has increased the number of products they carry by 50 percent, Yrausquin said.

Neem Resource Inc., a neem wholesaler in Minneapolis, Minn., started selling neem products six years ago and now sells dozens of gallons of neem oil a year, said owner Usha Rao. Her company sells 8 ounces of neem oil for about $9.50.

The markup on the retail market shows the profit potential of the product: An ounce of neem oil retails for about $10.

In India and among some aficionados in the United States, neem is best known for its array of medicinal uses. In India, neem is sacred and ancient Indian texts refer to it as ``the curer of all ailments." When a drug company applied for Indian governmental approval of a new neem treatment for diabetes, it was granted in less than 24 hours.

According to a report by the U.S. National Resource Council - which advises government and the public on topics of science, engineering and medicine - neem can cure athletes foot and head lice, and relieve pain and fevers, among other illnesses. A few years ago, the National Institutes of Health reported encouraging results from tests to see if neem can block the AIDS virus.