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.
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.
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|
|Total cost of Machinery||6,110|
Production and Operating Costs in US$
Direct Materials, Supplies and Costs
Cost Item Units Unit Cost
|Prod. cost||Prod. Cost/ month||Prod. Cost/ year|
|General costs (Overheads)|
|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|
|Bee wax||per quarter||150||0.5||75|
Profitability analysis in US$
|Profitability item||Per Quarter||per year|
|Less Prod & Operating Costs||236||2,832|
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.