Jatropha curcas biodiesel production in Kenya: economics and potential value chain development for smallholder farmers ICRAF Working Paper no. 54

In recent years, the production of Jatropha curcas has been widely promoted by private enterprises, non-governmental organizations and development agencies as one of the most viable candidates for biodiesel feedstock in Africa. While multiple benefits of jatropha production such as a petroleum product substitute, greenhouse gas mitigation and rural development are emphasized, the viability of production at farm level is questioned. By examining the initial production experiences that have taken place in Kenya since 2005 and analysing Indian experiences with production and processing, this study reveals that the profitability of jatropha production for smallholder farmers is expected to be minimal unless farm-level production is accompanied by investments and policies promoting decentralized oil extraction and transesterification. While the study largely rules out jatropha as a plantation type of crop under current economic conditions, the opportunity for smallholder farmers in value chain development are discussed.