Support to Business Organisations and their Access to Markets (BOAM)

Value Chain - Honey and Beeswax

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  Programme Elements:

 Programme Approach

 Public Private
 Partnership (PPP)

 Networking

 Funds

 Achievements

 Success Stories

 Lessons learned

  Partner Organizations:

 Business Support
 Institutions

 Financial Institutions

 Business Associations

 Chambers of Commerce

  Value Chains:

 Value Chain Approach

   1 Milk Products

   2 Oil Seed Products

   3 Honey / Beeswax

   4 Pineapple

 Southern Portfolio:

   5 Mango Value Chain

   6 Highland Fruits

 

 Trade and Investment

 

 

 

 

Honey and Beeswax
Value Chain Intervention


Honey extractor at Selam Technical Center
 


 Economic Background [top]                                                                                              


Beekeeping is a traditional important off farm activity to harvest honey for many rural people in Ethiopia. Honey is sweet, thick, supersaturated sugar solution manufactured by bees to feed their larvae and for subsistence in winter. Bee honey is composed of fructose, glucose, and water, in varying proportions; it also contains several enzymes and oils. Honey has a fuel value of about 3307 cal/kg It is a small scale, rural agricultural industry, used as a source of cash income for peasant farmers. Ethiopia is the World’s 10th biggest honey producer and the 4th largest beeswax producer after China, Mexico and Turkey. Owing to its varied ecological and climatic conditions, Ethiopia is home to some of the most diverse flora and fauna in Africa, making it highly suitable for sustaining a large number of bee colonies. Ethiopia reportedly has the largest Bee population in Africa with over 10 million bee colonies, out of which about 7.5 million are confined in hives and the remaining exist in the forest.

 
Modern mechanical centrifugal
honey extractor for 3 combs

Productivities of honeybees are very low and average of 5-6 kg of honey could be cropped per hive per year, while from the improved one average of 15-20 kg is possible. Honey and beeswax are collected after the rainy season starts in October and extends until December. In the South and Eastern parts, there is minor harvesting period in May-June. The major honey and beeswax producing regions in Ethiopia are Oromia (about 46%), S.N.N.P.R (31%) and Tigray (5%). However, the country is suffering from the ecological deterioration of it natural resources and this means the basis for any honey production is threatened. 

According to International Trade Centre (ITC) 1986, total estimate of honey production for Ethiopia ranges from 21,480– 23,700 tones per annum between the years 1984-1994. This contributed 23.58% to total African honey production and 2.13% to total world production in 1976-1983. The current honey production is estimated at 24,600 tones per year. The estimate is based on 65% and 75% occupational efficiency of 7.5 million traditional and 20 thousand framed improved hives respectively. Honey is almost exclusively used (80% of it) to satisfy local demand; production of “Tej” alcoholic mead consumed locally. The honey produce is so crude that it will not compete in the international market. However, an average of 3000 tones per annum has been exported to neighbouring countries over the years 1984-94 (ITC, 2003).

Ethiopia is the 5th biggest wax exporters to the world market. The annual production of wax is estimated at 3200 tones, without considering beeswax wasted in the remote areas. Beeswax is a valuable hive product obtained from honeybees. It is a by-product of the honey production. Beeswax is largely collected from traditional hives rather than the modern hives, which are presently promoted by the Ministry of Agriculture and several NGOs. The wax yield from traditional hives is 8-10% of the honey yield, compared to 0.5-2 % from modern hives. The bulk of the supply of beeswax is obtained as residual from “Tej” production, a mild alcoholic beverage popular throughout Ethiopia.

 
Honey extractor: View of the 3 baskets to hold fremes

According to ITC, report, export of beeswax have had difficult times in the last 5 years, showing an average growth rate of 1 % and even negative in period of 1999-2002. However, exports of beeswax from Ethiopia have increased spectacularly and reached 402 tones of beeswax (1.2% share in world market), destined to different countries (USA, Japan, Greece, Great Britain and Netherlands etc.), generating USD 936 in 2003 (CBI, Nov, 2004 and ITC, 2003).

There are 16 companies registered as exporters of beeswax in the country. However, except four, many of these are not active. The lack of supply is mentioned as one of the reason for many of them to remain inactive, not the absence of an international market.

Three of the 16 are reported to be principal exporters, of which Ghion Industrial and Commercial PLC is the largest followed by Baobed PLC and BWAP Export PLC respectively. The former represented about 50% of the beeswax export of the country in 2003.

In the past four years the exported volume of beeswax and the foreign earning is enumerated in the table below. The annual beeswax sells quantity ranges from 207 tons and 525 tons has given a corresponding sells value of half a million USD and 1.4 million USD. The annual average sells per ton do not show too much inconsistency a change in volume of supply did not reduce the average earnings per ton.

Export earning from Beeswax (1993-96 E.C)

Year (EC)

Quantity (ton)

Value
(Thousand USD)

Average price
per ton (USD

1993

311

870

      2,797

1994

285

703

      2,467

1995

207

500

      2,415

1996

525

1,389

      2,646

                   Source: Ethiopian Customs Authority and author’s calculation

 

 
Bee feeding


 Constraints [top]                                     


The major constraints that affect apiculture in Ethiopia are lack of beekeeping knowledge, shortage of trained manpower, shortage of beekeeping equipment, pests and predators, fires, pesticide threat and inadequate research works to support development programs. The cultural beehives are not comfortable for sanitation and high level of production. Farmers are only using the sells of the honey and do no consider wax as means of income in their business. They don’t use proper harvesting of honey and do not have honey and wax separator. The moisture content of the product is beyond the standard range and critical for the business. Farmers fail to supply honey with standard moisture content and needs improvement. The limitations of apiculture know how especially the method of harvest and lack of proper apiary tools are causing the honey to be with high moisture content. The volume of production is very small and needs routine collection from fragmented small scale production.

Reports and documents on Honey/Beeswax  see under Library-Honey

 


 Intervention Points [top]                                                                                                  


  1. Introduction of modern beehives and trainings on apiculture farming

  2. Supporting and demonstrating practical apicultural tools for small holders

  3. Establish linkages between apiculture farmers and private business capable to transfer technologies appropriate to farmers and work for common benefit

 


 Suppliers [top]                                                                                                                    


Local Suppliers:

 

Selam Technical and
Vocational Training Center, Addis Ababa

www.bds-ethiopia.net/selam/selam1.html
Honey extractors, Bee hives, Bee smokers

 

Addisu Molla Metal Workshop

Contact Person: Addisu Mola

Type of Equipment Supplied: Honey extractor

 Address: P.O.Box 3414331, Addis Ababa, Tel: 0911243146, 0911213981

E-mail: geta gacha@yahoo.com  
 

Plastic honey extractor  - Birr 2600- Birr 2900

Aluminum honey extractor – Birr 2700- Birr 3000

Rubber wax tray mold - Birr 2000- Birr 2500

 

The above price quotation is valid for 3 months. In addition the price considers the delivery of the items in our workshop. Our production capacity is 10 units per day. One year guarantee is available for all our products. With regards, Addisu Molla,  Manager

 


 

Suppliers abroad:

 

Neway PLC, Import-Export and Commission Agent

P.O.Box 13056 Addis Ababa, Tel.251-011-1556136, Fax.251-0111-1550572

                    

SELAM Technical and Vocational Center

P.O.Box 8075 Addis Ababa, Tel.251-011-(6463061/6462942) ,Fax.25-011-011-6462945

E Mail: selam@telecom.net.et 

 

GRAZE

Germany, Tel.+49-7151-969230, Fax.+49-7151-969233

E Mail: info.@graze.org, Webpage: www.graze.org

 

Betterbee.com
http://www.betterbee.com/flat/beekeeping-supplies.htm

Hive essentials: Bees and Queens, Beginning Beekeeping Kit, Polystyrene Hives, Wooden Hives, FramesFoundations,

Beekeeping tools:  Bee Feed & Feeders, Bee Medications, Books, Comb Honey Supplies, Galvanized Hardware Cloth, Hive Wrap, Hive Gadgets, Hive Tools, Observation Hives, Pollen Traps, Protective Clothing, Queen Excluders, Queen Rearing Supplies, Smokers

Processing equipment: Beeswax Processing, Honey House, Honey Processing

Honey containers: Comb Honey, Liquid Honey: Bulk, Glass, Plastic, Closures

Labels: Comb Honey, Liquifying, Nutritional, Liquid Honey, Pollen, Varietal Honey

 


 Markets [top]                                                                                                                      


 

Domestic Market:

Domestic market opportunities for honey are mainly Addis supermarkets, groceries, schools, university, hotels, bars and restaurants.

List of supermarkets:

  • Fantu, Bole road

  • Abrico, Bole road

  • Novis, Bole road

  • Ethio supermarket, Bole road

  • Bambis, Urael church

  • Addis supermarket

  • Solomon grocery

Foreign Markets:

 

Alibaba.com. Internet Market place for sellers and buyers
http://beeswax.directory.alibaba.com/

 

WCC Honey Marketing
http://www.wcommerce.com/
WCC Honey Marketing is the largest independent honey processor in the western U.S.  WCC markets honey, and a variety of sweeteners to the industrial, Food Service, and retail trade. WCC is a direct importer of honey from worldwide sources.
 


 Standards [top]                                                                                                                  


In the following please find the specifications of honey, beeswax and beehives for download.
 

 Ethiopian Standards for Honey and Beeswax for download
 

Honey Specification - Reference Number es-1202_2005.pdf  83 KB

Contents: Scope, Normative reference, Definitions, General, Hyhiene, Packing and labeling, Sampling, Determination of moisture content, reducing sur content, apparent sucrose content, Gravimetric determination of water-insoluble solids content, mineral content, acidity, diastase activity, Hydroxymethylfutural in honey spectophotometric method.



Beeswax Specification
- es-1203_2005.pdf  475 KB

Contents: Scope, Definition, Types of Beeswax, Requirements, Packing and labeling, Sampling, Marking, Compliance, Determination of specific gravity, melting point, refractive index, ash, total voatile matter, acid value, saponification value, Test for parafin and other waxes



Beehives Specification
-
 es-1204_2005.pdf 1,24 MB

Contents: Scope, Normative reference, Definitions, Types and sizes of beehives, General requirements, Essential partsof beehives, Requirements and dimensions of beehives.

 


 Coordination Group of the Honey/Beeswax Value Chain [top]                                   



The coordination group including the main stakeholders of each value chain is the leading group for the value chain specific intervention.

Strategic Intervenmtion Plans (SIP), Reports and documents on Honey/Beeswax
and Coordination Group meetings  see under Library-Honey

 

Value Chain Leader:  Haile Giorgis Demissie

Name of the company: Beza MarAgro Industry, Position: Operational Manager

Address:  P.O.Box 42787 Addis Ababa

Tel. +251- 011(5505099)/011(5520366), 091(1201686), Fax: +251-011(5515352)

E-mail: bezamar@ethionet.et

 

Value Chain Facilitator:

BCaD-Consulting Management /Business Creation and Development Services

Contact person: Afework Yohannes

Address: P.O.Box 11194, Tel. +251- 0911-242303/011-4655687, Fax: +251-011-4661997

E-mail:  bcad@ethionet.et , Website: www.bds-ethiopia.net/bcad

 

Coordination Group Members are the following:

 


 Achievements [top]                                                                                                            


  • SNV-BOAM has assisted to the request of 7 honey processing companies at the creation of “Ethiopian Honey & Beeswax Producers and Exporters Association” (EHBPEA) by facilitating (through its contacts to the Addis Ababa Chamber of Commerce) their  registration formalities with the Ministry of Trade and Industry (MoTI), conducting an annual planning workshop, brokering intermediate start-up finance of office space and managerial support in  Cooperation with USAID GEM project.

  • BOAM has assured the participation of the chair of EHBPEA to international conference on honey in Ireland.

  • A discussion was held with SOS Sahel regarding the potential for collaboration on developing a synergistic approach to the development of international labeling standards. In one case, BOAM’s consultant has been asked to assist with the SOS Sahel’s new programme to develop bee products with small-scale producer groups in the Kafa District. The assistance is focused on achieving certification and the necessary export grades. This may be a project that SNV could work with, through a synergized approach, to piloting an organic and fair-trade bee products initiative in the Kafa district.

  • Other areas of concern included access to trade finance, understanding the opportunities of fair-trade and of securing low interest supportive loans from ‘green’ banks and ethical trade finance institutions.

  • Further guidance and advice was provided on marketing and product development information.

  • The SNNPR Micro & Small Enterprises Development Bureau requested fund for the project entitled” Training of women Entrepreneurs on Producing Honey Harvesting Clothes and Other Materials in SNNPR “ is approved

  • The SNNPR Bureau of Agriculture and Rural Development funds request for the project entitled ”Sensitizing Workshop on Planting Indigenous Bee Forage in SNNPR “ is approved. This project is a community-based activity intended to promote the forage quality in rural areas by mobilising the civil society.

  • 285 (265M & 20F) farmers’ beekeepers in Kaffa zone, Bonga area got knowledge & technical skills after they trained on beekeeping management.
    Outcome: The trainees are able to:

    • Identify composition of bee colonies

    • Identify basic beekeeping equipments & their use

    • Understand  how to transfer bee colonies

    • Understand how to store & handle honey

  • 210 (192 male + 18 female) beekeepers in Ada’a and Zequala areas have got  knowledge & technical skills after they trained on beekeeping popularization. They are ready  to train others as per work plan of the project

 Outcome

  • A strong network of private and public, local and international resource persons and consultants with complementing expertise has been created (Honey Quality Working Group, national and international consultants who are working on EU accreditation).

  • Stakeholders now are able to identify and take responsibility in the respective roles in value chain development.

  • Capacities of stakeholders (beekeeping training for farmers) being strengthened: better beekeeping skills.

  • The creation (registration/ foundation) of EHBPEA.

Impact Indicators of the Programme Objective (impact according to the honey value chain):

  • Impact in terms of increased production capacity and increased turnover and sales: Tentative arrangements/agreement made among local operators and international buyers. Accordingly, Tropical Forest Product Ltd made a contact with Beza Mar Agro-Industry. Similarly, Walter Lang Honig Import GmbH also appreciated taste, smell and color of Kaffa honey has got good feedback from the seminar. If the established commercial relations come to a positive result, then production, turn over, sales and income will absolutely increase. Contracts are expected to be signed following the EU accreditation.

  • Impact in terms of improved product quality: Professional capacities of stakeholders (beekeeping training for farmers) being strengthened: better beekeeping and bee product processing skills.

  • Impact in terms of increased employment: Beza Mar Agro-Industry (honey value chain) has a plan to recruit 56 employees for his commercial Bee Farming and Establishment of Semi-Processing Plant in Sheka Bench Maji Zones of SNNPR (as indicated in the business plan). Similarly, Apinec Agro-Industry is in the process of establishing honey-processing plant that will create job opportunity.

  • Impact in terms of networking: A strong network of private and public resource persons and consultants with complementing expertise has been created (Honey Quality Working Group, international consultants who are working on EU accreditation)

 

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