BUSINESS NAME: BEE BUZZ

Type of Organization: Partnership Licenses and Permits * No special permits or licenses are required to operate or sell products in local area.

VISION: To have flawless • Incoming inspection • In process inspection • Predispatch inspection

MISSION
To manage the farm as an efficient and profitable Beekeeping business, maintain assets in good working condition, reduce debt and build equity. LONG TERMS GOALS GOAL Pay off debt STRATEGY Maintain payment schedule TACTICS Priority on high cash flow TIME 6 Years

SHORT TERM GOALS:GOAL Diversify pollen production wax craft comb honey STRATEGY Learn about pollen Make candles & bar Build boxes TACTICS Seminar/books TIME 3 years 2 years 2 years

BEEKEEPING:

Beekeeping is the art of caring for, management, nursing and manipulating colonies of honeybees (Apis sp.) so that they will collect and store a quantity of honey above their own instant and/or present requirements

HONEY BEES:

Honey bees are the most significant group of insects under Apidae family in the field of applied Entomology. Rendering enormous dedication for the production of fruits, seeds, crops, vegetables and fibers in addition to honey and many other by products.

OBJECTIVES OF BEE KEEPING :

• Production of honey throughout the country. • Increase the production of crops, fruits, seeds and vegetables by honey bee pollination. • Increase the nutrition value of human food. • Develop bee-products by way of beekeeping. • Develop plant environment through plantation for keeping bees. • Employment generation.

SPECIALITY :

1.No specific land is required. 2. No monetary value for required raw materials. 3. Minimum investment in comparison to output and/or other activities. 4. Applicable profession for everybody

5. Good venture for part time and/or full time activities. 6. Potentiality is almost everywhere in the country. 7. By-products are not less valuable and important than the main products- honey as we know. 8. Important role for the enhanced production seeds, crops, fruits, vegetable and fibres. 9. Creation of employment opportunities. 10. Increase the Agro based cottage industry.

Advantages of beekeeping as an income generation activity:
•Bee keeping requires less time, money and infrastructure investments •Honey and beeswax can be produced from an area of little agricultural value •The Honey bee does not compete for resources with any other agricultural enterprise. •Beekeeping has positive ecological consequences. Bees play an important role in the pollination of many flowering plants, thus increasing the yield of certain crops such as sunflower and various fruits. •Honey is a delicious and highly nutritious food. By the traditional method of honey hunting many wild colonies of bees are destroyed. This can be prevented by raising bees in boxes and producing honey at home. •Beekeeping can be initiated by individuals or groups •The market potential for honey and wax is high

PRODUCTION PLAN :
Production Strategy
* To

maintain 200 hive level in full production

Production Facilities

* Currently

have equipment and facilities to operate and maintain 500 hives including extracting, storing and packing honey. * Facility easily upgraded to better control climate for overwintering colonies

BEE KEEPING EQUIPMENTS
The best bet is to start getting different suppliers and comparing prices. Though in the first year, an extractor won't be needed, because our harvest will likely be small. We probably want cut comb honey instead of extracted honey for that first year. A Smoker Getting a smoker depends on the type of hive we will use, as a smoker helps in calming the bees when we do your inspection. The best of these comes in copper, so it lasts for a long time. Protective Suit When keeping bees we need a protective gear, and don't want to skimp here. just some net won't work. We need something that wont com loose and let a bee get caught inside. We do not need land or wide open spaces to keep bees successfully, and profitably. Hives can be kept in a small garden or on the roof of a townhouse, even on a balcony or in a tiny back yard. Bees must be kept in areas rich in nectar-producing plants, like clover and other meadow flowers. The best place is close to where oilseed rape is grown. This is a particular favourite of bees who will travel up to four miles to collect the nectar. Beekeeping Successful beekeeping means knowing and understanding our bees, what they need, and what intervention they will, and will not, tolerate from us. Keeping bees is much like any other kind of animal husbandry, demanding regular care, maintenance, time, skill and knowledge gained from experience. The one essential difference is that bees are wild creatures, not domesticated animals. Bees work for man, even with man, but they do not need humans and will remain in the hive only while it suits them. The Hive The most common model is the Langstroth hive, named after its inventor. The most important feature is the brood chamber, being a wooden box filled with frames of wax foundation arranged vertically with the familiar honeycomb pattern. This is the nursery where the queen lays her eggs and where the colony stores its food. Once the chamber is filled, further chambers with 'supers' are added where the surplus food and honey is stored. Between the brood chamber and supers, a queen excluder is added, allowing workers bees to pass through, but not the queen with her trail of eggs and larvae to contaminate the honey.

MANUFACTURING PROCESS
As explained earlier, Bee-keeping activity should ideally located where there are minimum movements of human-beings with very little noise. Forest area is, therefore, suited with many flowering plants naturally grown. Movable wooden frames with boxes are placed at such locations and these boxes are spread with honey spice to attract more and more honey-bees.

These bees leave fresh honey sucked from flowers in the cells of honey-comb provided in the boxes to eat bee feed. When these cells are full of honey, they are hermetically sealed by capping with wax and then honey is extracted from these cells. Freshly extracted honey is warm and easy to bottle. It is essential to undertake proper training of extraction and bottling.

CAPITAL INPUTS
Land and Building
Land has to be in the secluded and area. A plot of around 300-500 sq.mtrs. is sufficient.

Machinery This is not a manufacturing activity as such and no machines are required. There is nothing like production capacity as well. Small wooden frames with boxes are needed. Their sizes are also standardized. Around 25 such sets would cost Rs. 42500/-. Honey extractors would cost Rs. 1700/- each with filtration facilities. Two such extractors would mean investment of Rs. 3400/. Thus, total investment for support facilities would be Rs. 4,96480. Utilities There is no need to have industrial connection for power and even domestic supply is sufficient. In case of non-availability of power connection (due to peculiar location), the operations can be carried out during day-time. Raw Material There are no raw materials as such. Honey feed of about Rs. 60,000 approx will be required every year for 30 boxes. MANPOWER REQUIREMENT:PARTICULARS SKILLED WORKERS HELPERS QUANTITY COST

MARKETING PLAN:

Market Potential and Demand Dynamics Honey is a major consumable in the international market both as a food item as well as in industries such as Pharmaceuticals, Cosmetics and Confectionary. The demand is especially high for refined, high quality honey free from pesticides, insecticides and other agro-chemicals. China is the world leading producer as well as exporter of honey. Annual production in China is estimated to be around 300,000 tones out of which nearly 50% is exported across the world. In comparison, production in India is less than a quarter to that in China and so is its share in exports market. India produces around 70,000 tones of honey annually out of which 25,000-27,000 tones is exported to more than 42 countries. Honey exports are estimated around USD 2.4 mn in 2005-06. United States, EU and Middle East are key exports destination for Indian honey. Presently there are more than one million bee colonies in India but considering the market demand, the Country has the potential for more than 120 mn bee colonies. This would result in the production of around 1.2 mn tones of honey and 15,000 tones of beeswax. Further it can provide employment to over 6 mn rural and tribal families. In the domestic market very little amount of honey is use for personal consumption, while majority is utilized by the pharmaceutical and confectionary industry. With changing lifestyle and increasing health consciousness, honey is been increasing consumed as health food. This is likely to drive the domestic demand in future. Market Break-up of Honey Market

In the domestic market very little amount of honey is use for personal consumption, while majority is utilized by the pharmaceutical and confectionary industry. With changing lifestyle and increasing health consciousness, honey is been increasing consumed as health food. This is likely to drive the domestic demand in future. Why JHARKHAND? The agriculture in Jharkhand is mainly for subsistence, basically rain-fed and the farmers follow
a rice-based cropping system. The State has inherent advantage to support a prospering apiculture industry. With 31% area under the forest, the State forms an ideal rearing and breeding ground for the honey bees. Jharkhand is among the leading honey producer in India. Presently most of the honey produced in the State is forest or wild honey but with proper assistance Apiary honey production could also be increased.

A large part of State tribal population is engaged in the collection of wild honey using unscientific and primitive methods. In Jharkhand trees in agroecosystem are particularly valued as hosrt to insects.With training and assistance, advanced collection methods could be taught to these which would ensure efficient supply of the raw honey to the processing plant in a cost effective manner. Jharkhand has ample availability of economic manpower to support the apiary industry which is a labour intensive sector.

Further, as export market would be the key target. The strategic central location of the State and its proximity with major ports and key commercial centers in the Country would help in efficient logistic function for transportation and distribution within and outside the Country. Location Analysis

ADVANTAGES TO FARMERS • Enhanced economic returns • Continuous income due to diversification of activities
Proposed Capacity The proposed annual capacity of the plant is 500 MT. Proposed Investment USD 4.4 million or 2 crores INR Returns The Internal Rate of Return is estimated around 12-15%. Coordinating Agency JHARKHAND Minor forest Products Corporation

The key target Market would be: • Ayurvedic Industry • Food processing Industry • Exports • Domestic Retail Market

Marketing Strategy ’

• To expand product lines and advertise and promote these to build new markets. • To expand amount of honey sold at farm gate. • To add value to products. • To work with retail outlets to promote product and build customer loyalty for our products.

The Market

The beekeeping industry is essential to the environment for pollination services and for the pure natural hive products - honey, pollen, etc. Beekeepers are independent and individualistic. Most beekeepers come to the industry to enjoy the satisfying and interesting work with bees. Honey and bee products have experienced low prices over the past few years. There is very little generic marketing of honey and little coordinated consumer education. There is also no quota or restriction on production.

Although most beekeepers focus on honey, some have expanded into alternate products and into value-added and specially packaged honey products. Other hive products (pollen, comb honey) are gaining customer recognition. Current outlets (farm gate and contracted retail shelf space) can handle all the honey we can produce.

Products ,
• • •

Honey: liquid, comb Alternate products: pollen, Value added products: wax, packaging

MARKET POTENTIAL Honey has substantial medicinal properties and is used in India since long. Procurement of natural or pure honey is becoming difficult due to urbanisation and de-forestation. Simultaneously, its demand is steadily increasing as Ayurvedic medicines are becoming more and more popular. To facilitate rearing of honey bees to obtain natural honey, many government agencies are providing assistance/incentives. MARKET TRENDS

1. Per capita honey use is static. 2. Demand for pollination services are increasing.
MARKET OPPORTUNITIES

There are no other large honey producers in the immediate trading area to compete for BEE BUZZ..
PRODUCT Applications Three species of honey bees exist in India viz. Apis Dorsta, Apis Flora and Apis Indica. These species are reared for honey-combs. Pure or natural honey is extracted from bees. This honey is in great demand round the year especially for Ayurvedic medicinal purposes. Many health conscious people consume it regularly. It is also used in making certain health food preparations. Quality Standards Quality standard specified by the BIS for honey is 4941:1968

UNIQUE SELLING PROPOSITION :

HIGH QUALITY HONEY WITH ITS SPECIFIC AROMA AND FLAVOUR BY UTILISING SPECIAL MIX OF ENVIRONMENTAL FACTORS ,NATURAL NECTAR ,POLLEN AND HONEY DEW.

Designing 4 marketing P’s: Product :➢ Honey Price :➢ ➢ ➢ ➢ ➢ ➢ Cost pricing strategy Current profit maximization Current Revenue maximization Quality leadership Partial cost recovery Penetration policy

Place :➢ Palamu ➢ Hazaribagh Promotion :➢ ➢ ➢ ➢ ➢ Public relations Direct mail Advertisement Internet promotion Telemarketing

Future core competencies :• • Variety of flavoured honey Strategies like telemarketing,internet marketing,direct mail.

Scenario analysis :-

In 2001, honey production was identified as a sector where low-income beekeepers across a wide geographic area could participate and realize an important source of family revenue while working in harmony with the natural resource base. Design of the honey sector development component followed the project’s 5-point strategy to enterprise competitiveness and profitability. Key elements included: (1) Market Demand and Analysis; (2) SME Development and Expansion; (3) Links to Financial Services; (4) Skill Development and Information Dissemination; (5) Association Development. (The key issue of low productivity of hives was due to the fact that most beekeepers did not have access to essential hive management information and used outdated technologies and treatment methods. Marketing knowledge and skills were practically non-existent 2) Mistrust between beekeepers, middlemen, and the domestic retail market was an additional challenge facing the sector .3)Furthermore, there was no unifying body through which to provide essential technical and marketing services to the thousands of small beekeepers spread throughout the countryside. It was clear that a sustained program of direct technical assistance in bee hive management and marketing would be required in order for the honey sector to grow.

SUCCESS STORY:-

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Enterprise / Cover Stories

MAGAZINE | OCT 17, 2009

Hived Off: Shahzada S Kapoor (left) with brother Raja at their bee farm.

The Beekeepers
SUDIPTO DEY

Doraha

• • •

JS Kapoor: Chairman, Kashmir Apiaries Group Area of operation: Honey farming and snacks Group Revenues: Rs 210 crore ***

S

hahzada Singh Kapoor,38, has had to reprint his business card twice in the last 12 months. Not

because he ran short, but because it needed edits. A year back, his card said Kashmir Apiaries Group had a presence in 35 countries. Today, that’s gone up to 45 countries. The Rs 210 crore company, based in Doraha, 25 km from Ludhiana, is India’s largest honey exporter . It is also the fifth largest processor of honey in the world. That is a huge leap for a company with humble beginnings. Shahzada’s father Jagjit Singh started the business in 1978 with just Rs 10,000. He bought 50 bee hives with the money. A trained beekeeper, Jagjit Singh collected 50 kg of honey from the hives. But he had a hard time finding buyers.

It started off with Rs 10,000. Three decades on, the Kapoors have made Kashmir Apiaries a Rs 210 crore group just by selling honey.

The business took off in the early 1980s when he started supplying Khadi Gram Udyog, a government-supported cooperative. Gradually he became its largest supplier. Throughout the 1980s, he travelled across Punjab, Himachal and Uttar Pradesh convincing farmers to take up beekeeping. He sold them the hives and bought the honey. By 1990, he had 15 employees and turnover stood at Rs 50 lakh, riding solely on domestic demand. However, supply was fast outstripping demand and many beekeepers were disillusioned with the diminishing returns. This prompted Kashmir Apiaries to look for foreign markets. The first export consignment was sent to the US in 1998—a shipment of 100 tonnes of honey, then worth around Rs 70 lakh in the international market. The rest, as they say, is history.

Over the last decade, the company has grown steadily, riding largely on exports. “We must have visited over 200 trade shows in the last 10 years,” says Shahzada, who has just returned from a seven-day trip to France and Germany. The results are there for all to see—last fiscal, the group exported over 90% of the 20,000 tonnes of honey it processed. Total exports are estimated to be worth Rs 150 crore. Domestic honey sales and the group’s fledgling snack business account for another Rs 60 crore in revenues. Kashmir Apiaries has over 1,100 employees today, and sells honey under four different brands. It also has around 140 private labels. These adorn the shelves of several global supermarket chains, including Metro, Norma, Tesco and Carrefour. Key domestic buyers include retailers Reliance Fresh, Easyday, More, Spencer’s and Cafe Coffee Day, as well as the Dabur Group. Going forward, the Kapoors plan to make the group a professional entity. A new management structure with professional CEOs heading strategic business units is under consideration. “The family is ready to step back and let professionals run day-to-day operations,” says Shahzada. There’s a clear goal. “We want to be the No. 1 honey processor in the world in the next 2-3 years,” says Jagjit Singh.

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