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The effects of COVID-19 on the global pyrethrum industry.
Throughout this blog series there have been two main protagonists: the hero of the story, the humble pyrethrin, a huge contributor to the Kenyan economy and the very backbone of Kapi LTD, and then the evil villain in the shape of the COVID-19 pandemic. Despite covering both ends of the spectrum there has been very little on the intricate interrelationship between the two. As with many global economies this widespread virus has caused supply chains to wilt and with China being one of the largest manufacturers of chemicals globally, the pyrethrum industry is no exception.
The first obvious impact of the pandemic hit the very roots of the industry, in the agricultural sector. Being a completely organic compound obtained from the chrysanthemum cinerariifolium, Pyrethrum plants need to be farmed and need extensive attention and care. With major COVID restrictions in both Australia and Tasmania, the two global pyrethrum producing powerhouses, pyrethrum yield for 2020/21 is expected to drop.
As mentioned
earlier, the major effect to the industry is the constant and unplanned
disruptions to the supply chain. Kapi have struggled with this throughout the
last two years in terms of procurements, with key chemical suppliers in China
and Kenya closing during large portions of the pandemic. This has halted
manufacturing of pyrethrum products globally and in turn will cause a rise in
prices for the end consumer. With many malaria stricken areas also being below
the poverty line, it has left many families having to sacrifice much needed
mosquitos protection and therefore malaria cases have taken a turn for the
worse during the pandemic.
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