America.gov asked finalists from among the more than 700 African immigrants who submitted business plans to the “African Diaspora Marketplace” to blog about their ideas. Sponsored by USAID and Western Union Company, the African Diaspora Marketplace is a contest that will award seed money to approximately 15 winners to help them bring their ideas to life in their home countries.
DAVID KIAMBATI, entrepreneur:
Bees and their keepers.
These products would be sold on local and national markets. For example, honey could be packaged in small individual jars for sale to Kenya’s many tourist hotels. The bees also provide ingredients to make soap, skin care products, candles, lip balm, and beeswax polish.
One of RVAF’s biggest challenges is the acquisition, installation and operation of modern honey processing and packaging equipment to produce commercial-quality honey products. RVAF also needs an improved marketing and promotion model to go with the expanded honey business. RVAF would welcome any help, knowledge, expertise and assistance from beekeeping organizations, honey processors, equipment manufacturers, and interested parties. It would be helpful if they wanted to participate in the expansion of honey markets in the sub-Saharan countries.
DICK TURANSKI, business expert:
There are many opportunities to develop business through beekeeping and honey production. But selling honey only in bulk is not highly profitable. To go beyond bulk sales, the first step is to establish honey packing for the retail market. At the highest end of the retail market is the gift size, which typically is the smallest size. The honey processor must also tailor products for natural-food consumers, restaurants, and, lastly, for those who use honey to make other products.
A second consideration for a prospective honey entrepreneur is to provide incentives to the beekeeper to produce pure beeswax. Beekeepers must be taught not only how to keep bees, but also how to save wax and to render it into a pure cake by putting the wax into a double boiler. In Uganda, where we have this type of operation, the price for the beeswax is much higher than the price for the honey. Sometimes we get paid twice as much for the wax as we do for the honey. The wax can be used in candle making, lip balm, skin care products, and other things. We do not believe that the production of royal jelly in Africa is feasible at this time.
In order to pack honey adequately, there will be capital requirements — a stainless steel honey tank that can be warmed and straining equipment for removing all the impurities. Also, a scale is essential for maintaining the proper weight. The honey packing facility itself has to be built to the highest sanitary standards. Other necessities are running water and special clothing for the employees.
We are in a position to give our expertise as to what equipment is needed. We would also like to recommend that classes be offered to beekeepers on the most modern methods.
We can assist in importing very inexpensive beekeeping equipment and some processing equipment. Modern beekeeping equipment, such as smokers’ veils, hive tools, extractors can be traded to the beekeepers in exchange for the honey they produce. You might say that there are several divisions within the corporate structure that can be developed. There is the beekeeping division and teaching of beekeeping, supply side of the beekeeper, honey packing and product manufacturing division and then the marketing division.
David,
Value addition seems like a sensible way to go in Kenya where there is always more demand than there is supply of honey.
Be clear about which value added products are needed on the markets and then be clear about how you will distribute your products. Start small and don’t think that you need so much fancy equipment to get started. That is a trap that many people in the honey packing business fall into. You can do alot with very basic equipment.
I export 400 tons per year here in Zambia and we have now moved into value addition through retail packs. Don’t overspend on your equipment because it must pay for itself. If USAID decides to give you something then that is different but don’t factor donors into your business plan – if you do, you will simply become another donor driven and donor dependent social enterprise.
Best wishes,
Daniel Ball
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Alena
I believe this is a very enterprising business. The most important aspect I see here is the growth in the economy that this enterprise will bring in terms of jobs thatt will be created and opening up of other opportunities to the local population. Your plan is well thought and wish you all the best in everything.
Wangari
This is a great project! It has the potential to greatly increase rural incomes, reward people for planting and maintaining trees and be an alternative cottage industry with a high employment and economic impact. It is the kind of project most vital for poverty alleviation and developing our rural areas. Great job and great presentation.
Our bee club is working with a group in Kenya. We are helping with funding to get a community started with a beekeeping operation. Having a marketable product is our hope with this project and this community. We are hopeful that the hive products will increase income and standard of living. Being a beekeeper myself I want this project to succeed. Maybe an expansion on this ide is the next step. I would like to visit the area one of these days.
yes i like your work and approach of work on it you are doing such a great job thanks for sharing it.
David, I am a Peace Corps Volunteer working with Wetland Communities developing the honey business in the Kisumu, Kenya area. I need contacts in the honey process equipment area here in Kenya. Can you be of help.
Thank You
I am a default beekeeper after they killed my sheep and geese.I have many fruits and other trees in my farm and a local bee expert advised to keep bees as there no way to avoid bees in my farm with such great quantity of .In the process I have now become very interested in beekeeping after learning the many advantages over and above honey in my farm and have six hives.I would like to expand into retail and require equipment.Please advice
Hi David,
I am sure by now you have a business running. I believe I have bought your Honey in Naivasha at the Lord Dalamere stop-over? Well done!
I need to source Honey in bulk, say in 20KG bucks or whatever your pack size would be. I will also need bees wax in its raw form or even refined. Please get in touch with me on the email provided to discuss the quantities and the pricing.
Best regards.
PnK
Seeling honey in bulk may not be as profitable as marketing retail products. However, the risks are also smaller as well as the initial capital requirements. Selling retail goods requires sizeable investments in marketing and distribution. Perhaps it could make more sense starting with bulk sales and then moving to more sophisticated segments as the project matured. The problem in selling bulk honey is the scale, normally the minimum scale of production needed to compensate all the efforts and risks is about 40 tons/month. I m available to provide business inteligence for bulk sales.
Daniel,
Thank you for your comments, advice and feedback regarding investing in fancy equipment. I appreciated your concept of starting small. What value added products have worked well for you in the Zambian market? Are you manufacturing them yourself or are you doing it via your local partnerships?
Regards
David
John
Thank you for your comments about the advantages and disadvantages of honey bulk sales. In my business proposal I am focusing on the retail business and the value added products. Can you clarify what you mean by business intelligence for bulk sales?
Regards
David
Alena,
Thank you for reading the blog and feedback about it. Do you have an interest in honey or beekeeping?
Regards
David