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Business established

2

Sustainable Beekeeping to Alleviate Rural Poverty

Implementation of income generation activities in rural Kenya, in order to benefit communities

This project represents intervention into the Bottom of the Pyramid (BOP) group, and involves rural farmers in beekeeping, creating a consistent supply of honey to small scale distributors.
The introduction of healthy, high quality product, people will benefit, leading to healthier lives and increased incomes for the distributors.

Facts

Year of establishment

2000

Sales (US$)
Two years ago:
Last year:
This year (forecast): 428,571
Year 2 (forecast): 471,428
Year 3 (forecast): 528,571
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 57,143
Year 2 (forecast): 100,000
Year 3 (forecast): 129,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 30
Year 2 (forecast): 34
Year 3 (forecast): 37

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 201,672
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 82,363
Total finance needed (US$) 284,035

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 20,000
Loans (debt) 50,000
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 70,000

The Business

What is your product/service?

Honey Care Africa (HCA) was established in the year 2000 as an innovative social enterprise to promote sustainable community-based beekeeping in Eastern Africa. It was set up with an explicit triple bottom-line agenda, with an emphasis on generating economic, social and environmental value simultaneously through its activities.

HCA’s goal is to challenge the traditional role of private sector, redefining it as a key driver for development in the South, and to radically reconfigure the dynamics between the private sector, the development sector, and rural communities. This led to the evolution of HCA’s innovative “Tripartite Model”, which seeks to develop a synergistic ‘win-win-win’ partnership between these three key actors drawing on the core competencies of each as well as their complementary roles. In partnership with a number of local NGO’s and international development and financial institutions, as well as the Government of Kenya, HCA undertakes village-level demonstrations and provides training and community-based extension services.
Honey Care also facilitates the provision of micro-finance to small-holder farmers and provides a guaranteed market for the honey produced by small-holder farmers at fair trade prices (it is a member of the International Fair Trade Association), which it collects at farm-gate and pays for on-the-spot. It then processes, packs and sells the honey for a profit through supermarket chains, shops and other industrial clients. Its Honey Care Africa and Beekeeper's Delight brands are very well known in the East Africa region and have captured significant market share.

Honey Care Africa manufactures and supplies high quality Langstroth hives and related beekeeping equipment to organizations, communities and individuals across Kenya. These products are well designed, long lasting and have been developed, modified and tropicalized after thorough research and practical hands on experience. The introduction of Langstroth hives is a prime reason that has enabled women to get engaged in beekeeping. Currently, over 42% of all Honey care Africa’s beekeepers are women.

The company is also introducing farners to the concept of drying fruit, which could be used as additional income for farners and their families.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

We wil use our network of Sales representatives who have made inroads into the retail market. Further, we will also use a distributor who has experience in the slum and estate areas, thus giving us exposure to the millions of people who will purchase our range of products. We are also actively pursuing proposal writing to generate sales for the hives business, as are we talking to international distributors who can purchase our honey and distribute it to select markets internationally.
In order to differentiate our products from the competition, we will rely on our high quality, and our relationship with the thousands of farners that we currently work with. We will also brand our product with images from the farners. Further, we intend to market the health benefit of the product through informing the pubilc about the immense benefits of honey and the related products.
Though our initimate relationship with retail outlets, we will use this relationship to organize trade promotions, public shows in order to harness public image and buy in.

What makes your business different/better than your competitors (competitive advantage)?

Our working relationship with 5,000 rural small scale farners, where we train farmers,provide them with a guaranteed market and all extension services is a unique factor in our business. Further, we pay cash for all honey that we buy from them; with is a unique concept.

The Entrepreneur & Management

Describe the entrepreneur & management

I want to alleviate poverty in rural Kenya. These households in particular have demonstrated a strong spirit of entrepreneurship through their active involvement and an exceptionally high level of motivation to take charge in improving their own lives and create a brighter future for their children. However, they need the spark to access a market, and an innovative. I will provide that spark.

I understand businesses that are operated solely on a profit making model. However, the social and profit side can operate hand-in-hand; however, implementation to ensure sustainability, creativity and success depends on the individual carrying out the project. I have had experience in the private and public sector; and have worked with government in order to ensure projects are successful. My consulting experience has benefitted me in carefully analysing projects and implementing them. These, I feel, are key attributes to ensure success.

Development

How does your business improve the local living standards (social and environmental)?

It has helped over 9,000 small-scale beekeepers (representing over 38,000 direct beneficiaries) earn a supplementary income of US$ 180-250 per annum. For many, the income earned from honey production often makes the difference between living below or above the poverty line. Over 40% of Honey Care’s beekeepers across Eastern Africa are women. Honey Care Africa is the largest producer of high quality honey in East Africa with a strong market presence and well-established brand name, and among the largest exporters of beeswax in the Region.
We also have a presence in 7 out of the 8 provinces in Kenya, providing extension services to all farners in the areas that we operate. Our collection centres provide a 'home' for these farmers, and we also disseminate information on other areas apart from beekeeping.
Further, we pay cash on the spot to all farmers, and guarantee a market for their produce, regardless of the quantity. This is very unique and different from the rest of the agriculture sector in this country.
We feel that through this approach, there is constant participation from the community. In our experience, increased participation leads to greater buy-in, and hence greater productivity. The communities will work in groups. Group activity leads to increased yields, and thus greater chances for the project to succeed.
The goal is to use this model to move into rural communities, close to the slum areas, in order to create a value-added supply chain.

2 comments

BEEKEEPING

17 Apr 07, 14:40 Amaan Khalfan, 17 Apr 07, 14:40

Beekeeping Kenya

No competition from local beekeepers regarding availablilty on volume as honey produced is also used to make honeybeer in Kenya....

Piet IJben
Network of Emda Organisations

18 May 07, 16:48 Piet IJben, 18 May 07, 16:48