BUSINESS IDEA FOR BEE KEEPING (APICULTURE)

This business idea is for keeping bees for production of honey and bee wax. The Revenue potential is estimated at US$ 8,300 per year. The Project cost is US$ 8942.

Process Description

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

Market Analysis

There is high demand for honey for home consumption and pharmaceutical use in making drugs. Some beekeepers salvage the comb to use its wax for 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. There are so many small scale farmers investing in this business spread all over the Country.

Capital Investment Requirements in US Dollars 

Item                                 Unit   Qty   Unit Cost   Total  
Centrifuge Machine  No.  1  3,000 3,000
Wooden beehives  No. 50         15         750
Smoker pumps  No.   1        25    25
Buckets  No.  5            3        15
Hive tools  No.       4              1             4
Protective wears  No.     4         15   60
Filtering sieves  No.    4      1.5            6
Land  Acre      3    750 2,250
Total cost of Machinery 6,110

 Production and Operating Costs in US$

Direct Materials, Supplies and Costs

 

Cost Item  Units       Unit Cost

 

Qty/ day

 Prod. cost Prod. Cost/ month  Prod. Cost/ 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   unit price   Total cost   Total Revenue
Honey  per quarter 200  10        5 2,000
 Year 800 8,000
Bee wax  per quarter 150     0.5       75
 per year  600       300
Total  8,300

Profitability analysis in US$

Profitability item  Per Quarter   per year 
Revenue
Honey      2,000     8,000
Bee wax             75       300
Less Prod & Operating Costs             236      2,832
Profit          1,839     5,468

Source of Supply of Raw materials and Equipment

All Equipments, tools and other Materials can be got from the local market. However, Bees can be got from the already practicing farmers in this business.

Government Incentives Available

Government is supporting Bee farmers through NAADS Program by allocating them funds and finding market for Honey.

Research was done by Business Synergies for Uganda Investment Authority SME Department.