Beekeeping as a Business August 4, 2015

Beekeeping as a Business – Topics Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Introduction Commercialization of honey production can be a key driver in food security and poverty reduction, especially for rural populations Low start-up costs, low labour requirements, high demand and low level of supply both domestically and internationally makes honey a lucrative agricultural endeavor In Swaziland, ideal climate and vegetation in the highveld and midveld regions provide suitable conditions for honeybees, and low capital requirements decreases the barrier of entry for rural Swazis Business Solutions to Poverty

Introduction - Considerations There are several key considerations that must be taken into account before venturing into beekeeping as a business: What is the required equipment? What are the required activities for beekeeping? What are the monetary returns? What is the time investment? How much honey can be harvested? Who is your market? What types of hives, and the pros and cons of each? Understand bee behavior and bee seasons Business Solutions to Poverty

Beekeeping as a Business Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Beekeeping Equipment Proper beekeeping equipment ensures safety of the beekeeper as well as the health of the bees and hives being handled. Necessary equipment consists of: Beekeeping suit Hat and veil Gloves Boots Smoker Hive tool Brush Business Solutions to Poverty

Beekeeping Suit Worn to protect the body from bee stings Usually white or light-colored material (bees are more likely to attack dark colors) One should buy an oversize suit so that other clothing can be worn underneath Business Solutions to Poverty

Hat and Veil Worn to protect the head and face from bee stings Usually white or light-colored material (bees are more likely to attack dark colors) Business Solutions to Poverty

Gloves Worn to protect the hands from bee stings The gloves should ideally be made of PVC The glove should be long enough to cover the hands up to the elbows Business Solutions to Poverty

Boots Worn to protect the feet and lower leg from bee stings and objects The boots should be durable and suited for the outdoors – waterproof is ideal Business Solutions to Poverty

Smoker Smokers are very important to reduce that aggressiveness of bees They also reduces the risk of forest fires because there are no open flames in smokers Business Solutions to Poverty

Hive Tool A hive tool is used to manipulate the places where the bees have stuck the hive components together with propolis It can also be used to lift the top bars or frames from the hive body Business Solutions to Poverty

Bee Brush When harvesting honey, bees tend to hang about the comb The bee brush is made of soft fur that will gently remove bee from the comb without injuring them Business Solutions to Poverty

Beekeeping as a Business Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Types of Hive In Swaziland, two types of hives are used: Top Bar and Langstroth Both types of hive have their distinct advantages and disadvantages, and the choice of hive type should be made based on the condition and ability of the beekeeper Swazi Top Bar Hive Langstroth Hive Business Solutions to Poverty

Top Bar Hive Advantages It is cheap to buy It can easily be constructed even by the least skilled person It is easy to manage and people can easily and quickly learn how to set them up and use them Hive inspection and management can be done with ease Even under the poorest management, one will harvest something Disadvantages It cannot be transported because the combs hang freely and are not supported by wire or frame – As a result, the combs will fall off Business Solutions to Poverty

Langstroth Hive Advantages Pure honey can be harvested from these hives Honey can be extracted from the combs which can be returned to the bees for reuse – This honey is readily stored as the bees do not rebuild the combs Expandable – The size of the hive can be increased as a second empty super can be placed on top if the first one is full Disadvantages The hive and its components are very costly to acquire The hives require skills and sophisticated machinery to build –thus, it is difficult for village carpenters to make all frames and hive parts properly and to the exact specifications Business Solutions to Poverty

Beekeeping as a Business Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Bee Seasons There are three bee seasons in Swaziland for both natural and eucalyptus plantations: Swarming Season Honey Flow Season Dead Season Swarming Season Honey Flow Season Dead Season Business Solutions to Poverty

Swarming Season Colonies swarm Bees relocate from areas without flora to areas that have food This is the perfect time to trap swarms and transfer them into the hives Swarming season in Swaziland: Eucalyptus plantations: mid-January to March Natural vegetation: end of August to September Business Solutions to Poverty

Swarms migrate to flowering areas Beekeepers trap swarms Swarming Season Trees start flowering Swarms migrate to flowering areas Beekeepers trap swarms Business Solutions to Poverty

Honey Flow Season By this time, most trees have bloomed and there are an abundance of nectar for bees to pick up and store in the hives Swarms have settled down and honey is stored Beekeepers start harvesting Honey flow season in Swaziland: Eucalyptus plantation: April to mid-August Natural vegetation: December to January Business Solutions to Poverty

Bees store surplus honey in hives Beekeepers harvest honey Honey Flow Season Bees store surplus honey in hives Beekeepers harvest honey Income generated Business Solutions to Poverty

Dead Season Trees have run out of flora Bees do not have enough food to sustain themselves Most colonies will vacate or abscond and the colonies will relocate to areas that have flora In Swaziland, most colonies will relocate to the eucalyptus plantations in the winter and relocate to areas of natural vegetation in the beginning of the summer Dead season in Swaziland: Eucalyptus plantation: September to mid-January Natural vegetation: February to August Business Solutions to Poverty

Colonies migrate to areas where there is flora Dead Season Trees have no flower Colonies migrate to areas where there is flora Business Solutions to Poverty

Beekeeping as a Business Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Beekeeping Activities Successful beekeeping requires completion of key activities at different times throughout the beekeeping season: Trapping bees Transferring a swarm/colony Hive inspection Harvesting Understanding stocking rate Business Solutions to Poverty

Trapping Bees Bees must first be captured in order to start the beekeeping process The swarming season is the best time to trap colonies as they are looking for places to settle A trap box is used to catch swarms In the following example, a small hive that has at most 10 top bars/frames is used to demonstrate how bees are trapped Business Solutions to Poverty

Trapping Bees - Procedure Bees lure/propolis is smeared on the inside walls and the entrance of the trap box The trap boxes are then hung 2-3 meters high (the flight height of most swarms) on the trees that are flowering or on the roof of houses Business Solutions to Poverty

Trapping Bees - Procedure Keep record of when the bees enter the trap box. After two weeks, it is time to transfer the swarm/colony into the hive Trap box # Setup date Catch date Transfer date 1 12/01/2012 15/01/2012   2 10/01/2012 01/02/2012 3 4 Business Solutions to Poverty

Transferring A Swarm/Colony After approximately 2 weeks, or when the bees have begun building on all the top bars, take the trap box and place it into or on top of the hive Business Solutions to Poverty

1. Wear protective clothing Hive Inspection Hive inspection is very important as a well-managed colony will produce high quantities of honey Hive inspection involves keeping records of the development of the hives 1. Wear protective clothing 2. Light the smoker 3. Inspect the hive Business Solutions to Poverty

Harvesting Not all combs that have honey are ready for harvesting The following indicators show that the combs are ready for harvesting: Capped combs Water content less than 20% Business Solutions to Poverty

A well capped comb ready for harvesting Uncapped combs will have a high moisture content which increases the possibility of unwanted fermentation A well capped comb ready for harvesting Business Solutions to Poverty

Harvesting – Time Regular hive inspections during the flowering season helps to anticipate the harvest date Hives can only be accessed after sunset when all the bees have returned to the hive Weather should also be noted as hives cannot be accessed when it is raining If rain occurs during harvest time, beekeepers should wait two weeks after rain before they harvest Swarms differ in size, so as a result hives will be ready for harvesting at different times Business Solutions to Poverty

Considerations Before Starting The optimal number of hives per hectare of vegetation that will produce the maximum returns for honey Density of vegetation The time it takes for a bee to collect the nectar The number of bees in a hive that are actively foraging The number of hours per day that they forage Questions to consider before starting Business Solutions to Poverty

Good Beekeeping Practices Higher Income Good Management Better Flora Utilization Fewer Colonies Lower costs Higher Production Per Hive Business Solutions to Poverty

Beekeeping as a Business Introduction Beekeeping Equipment Types of Hive Bee Seasons Beekeeping Activities Income Generating Opportunities

Income Generating Opportunities Low start-up cost and high demand for honey provides a market with relatively high prices for enterprising beekeepers Currently in Swaziland, farmers working within TechnoServe’s communities receive trainings and workshops on beekeeping and hive construction Local partnership with Peak Timbers has availed free timber for hive construction for beekeepers, with only nominal cost for electricity Three column: input, time, harvest (5 hives, 20kg per hive) Breakeven graph (1 slide, one for market and one for TNS with peak timber support) -one slide for peak timbers Business Solutions to Poverty

Income Generating Opportunities Start-up Cost Time Investment Harvest Bee suit Hat & Veil Boots Gloves Hive tools Bee brush Smoker Fencing 10 TB Hive TOTAL E 448 E 412 E 120 E 70 E 62 E 58 E 456 E 312 E 3,600 E 5 538 12 days – Time invested in beekeeping per year (based on 10 hives) 1 day – Processing time for one 20kg hive 20 days – Time for marketing and selling own honey (days per year) 2 – Number of harvests per year for top-bar 20kg – Harvest volume for top-bar (conservative) E 7,800 – Estimated yearly revenue from 10 hives Three column: input, time, harvest (5 hives, 20kg per hive) Breakeven graph (1 slide, one for market and one for TNS with peak timber support) -one slide for peak timbers Business Solutions to Poverty

Income Generating Opportunities If a farmer starts with 10 hives, the initial costs can be recouped by year 2 and the net profit will increase steadily every year after Break-even before year 2 Three column: input, time, harvest (5 hives, 20kg per hive) Breakeven graph (1 slide, one for market and one for TNS with peak timber support) -one slide for peak timbers Business Solutions to Poverty

Income Generating Opportunities There are 3 major channels where honey can be sold: supermarkets, honey processors, and informal markets Supermarkets: highest price, but burdensome packaging and transport requirements Honey Processors: Honey is typically collected (eliminating transportation and packing costs) but price is low Informal Markets: Easy venue and high price, but inconsistent demand and potential long wait times are risks Beekeepers typically achieve maximum profits by selling across channels Three column: input, time, harvest (5 hives, 20kg per hive) Breakeven graph (1 slide, one for market and one for TNS with peak timber support) -one slide for peak timbers Business Solutions to Poverty

Income Generating Opportunities Honey Processors Supermarkets Informal Markets Price (per kg honey comb) E19.50 ~E50 E30-65 Advantages Unlimited demand Collect if sufficient quantity No packaging Buy in bulk Limited transport costs Does not require bulk Disadvantages Payment terms (wait 30 days and paid into bank account) Minimum quantity for collection Typically requires packaging and transport Limited demand Time consuming to sell and liquid honey requires processing May require packaging Business Solutions to Poverty

Operating Profitability Waterfall (Emalangeni per kg honey) E0.00 E0.00 E7.04 E4.83 E0.07 E36.06 (75%) E48.00 Business Solutions to Poverty

Conclusion Beekeeping as a business can be a great way to generate additional income with minimal capital and low risk In addition to producing honey, beekeepers play a critical role in agriculture, contributing to crop pollination and the development of valuable by-products such as royal jelly and beeswax The Swaziland honey industry has strong growth potential due to the progressive formalization of the marketplace and an increasing awareness of apiculture techniques In context of youth: -good low risk income generator Income supplement Business Solutions to Poverty