BEE KEEPING (APICULTURE) BUSINESS IN UGANDA

 BEE KEEPING (APICULTURE) BUSINESS IN UGANDA

Introduction

This business idea is for keeping bees for production of honey and bee wax. The Revenue potential is estimated at US$ 10,400 per year with the project cost of US$ 7,345 and a profit margin of 73%. The expected payback period is 7 month.

Process Description

Bee hives are opened after the bees have been smoked out using a smoke pump, honeycombs are pressed by hand. Honey is separated from the wax using pressing machines to produce better quality honey. Honey from a honeycomb is extracted, warmed, strained and bottled.

Capital Investment Requirements in US Dollars
Item Unit Qty @ Total
Centrifuge Machine No. 1 3,396 3,396
Wooden beehives No. 50 16.71 836
Smoker pumps No. 1 25.8 26
Buckets No. 5 3 15
Hive tools No. 4 1.5 6
Protective wears No. 4 15 60
Filtering sieves No. 4 1.5 6
Land Acre 3 1000 3,000
TC of Machinery 7,345

Production and Operating Costs in US$

Direct Materials, Supplies and Costs
Cost Item Units @ Qty/ Prod. Prod. Cost/ Prod.Cost/
day cost month year
Bee wax Kgs 0.6 10 6 156 1,872
Sub total 156 1,872

General costs (Overheads)

Utilities (power) 15 180
(Utilities (water) 15 180
Salaries 50 600
Sub-total 80 960
Total Operating costs 236 2,832

Production assumed 4 quarters per year

Direct costs include: materials, supplies and other costs that directly go into production of the product.

Project product cost and Price structure in US$

Item Period out put UPx Total cost Total Revenue
Honey Per quarter 200 7 4.515 1,400
Per Year 800 7 4.515 5,600
Bee wax Per quarter 150 8 6.02 1,200
Per year 600 4,800
Total 10,400

Profitability analysis in US$

Profitability item Per Quarter Rev per year
Revenue
Honey 1,400 5,600
Bee wax 1200 4800
Sub total 2,600 10,400
Less Prod & Operating Costs 903 2,832
Profit 1,697 7,568

Market Demand

There is high demand for honey for home consumption, pharmaceutical use in making drugs and in most instances it has replaced the sugar intake among people with health complications. Some beekeepers salvage the combs to extract wax for making candles or at times it is mixed with maize flour to make ice-cream cones. In addition, wax is demanded by cobblers, makers of household textiles and garments.

Government Incentives Available:

Government is supporting bee farmers through the National Agricultural Advisory Services (NAADS) Programme funding the activities and finding a market for products.

Source of Information:

Ugandan Beekeepers Association

Faculty of Forestry and Nature Conservation (Makerere University) and National Agriculture Research Organisation (NARO)

Risk involved in the Business:

The risk involved in this business is that there is never a “superhive”, which could potentially disrupt the bees if there is an interruption. However, this can be mitigated through making diverse bee hives.

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