Ethiopia - VC Honey Beeswax2005

SNV SUPPORT TO BUSINESS ORGANISATIONS
AND THEIR ACCESS TO MARKETS (BOAM)
STRATEGIC INTERVENTION PLAN ON
HONEY & BEESWAX VALUE CHAINS
By
Johannes Agonafir, Agric & horticultural Economist - Local Consultant
Addis Ababa
August 2005
HONEY & BEESWAX VALUE CHAIN ANALYSIS
SNV SUPPORT TO BUSINESS ORGANISATIONS AND THEIR ACCESS TO MARKETS (BOAM) Page 2 of 37
Table of Contents
Title Page
Executive summary............................................................................................................. 3
1. Value Chain Program Goal ......................................................................................... 4
2. Value Chain Program Objective ................................................................................. 4
3. Features of BOAM ...................................................................................................... 5
4. Honey and Beeswax .................................................................................................... 5
4.1 Honey and beeswax in Ethiopia .......................................................................... 5
Trend of honey business in the local market .................................................................. 9
Logistics for honey ....................................................................................................... 11
Market channel of honey ............................................................................................. 12
Market channel of honey .............................................................................................. 13
Steps needed to achieve EU accreditation for honey export: ....................................... 14
4.2 Problem ................................................................................................................... 15
4.3 Cause of the problem .............................................................................................. 15
4.4 Potential Intervention Points ................................................................................... 15
4.5 Value Chain Diagrams ............................................................................................ 16
4.6 Objective of Strategic Intervention ......................................................................... 24
4.7 Result Indicators ..................................................................................................... 24
4.8 Impact Hypothesis .................................................................................................. 24
4.9 Activities of Intervention ........................................................................................ 25
Pilot Phase Intervention: ........................................................................................... 25
At micro level: .......................................................................................................... 26
At meso level: ........................................................................................................... 26
At macro level: .......................................................................................................... 26
4.10 Implementation Concept - Pilot Phase.................................................................. 26
Tables
Table1 Number of hives by region (000) ...................................................................... 7
Table 2 Ethiopian Six Years Apiculture Sub Sector Potential Estimate .................. 7
Table 3 Export earning from Beeswax (1993-96 E.C) ............................................... 8
Table 4 Comparison between export earnings of Honey and Beeswax ................. 9
Table 5 Addis Ababa Market prices for half a kilo of table honey .......................... 11
Table 6 Expected changes due to intervention program ......................................... 24
Table 7 Workshop Output for Honey & Beeswax Value Chain in the Pilot Phase
........................................................................................................................................... 28
Table 8 SWOT analysis for honey & beeswax in priority order of internal &
external forces ................................................................................................................ 30
Table: 9 List of stakeholders for honey and other selected value chains ............. 31
Table 10 Plan of operation for honey and bees wax value chain ........................... 36
Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Email: SNV@ethionet.et, Postal Address 40675, Addis Ababa
Executive summary
Ethiopia is primarily an exporter of agricultural products and importer of consumer and
capital goods. It almost exclusively imports essential development inputs like raw
materials, machineries and equipments, transport and communication facilities,
consumer goods including food. The major producers of all consumable and exportable
agricultural goods are the smallholders with low-level technologies and remained with
poor productivity of agricultural goods. Agro industries are also using smallholder as
major raw material suppliers and fail to process because of unsustainable supply of
agricultural products from farmers who rely on rain fed cultivation.
All agro based business activities are facing constraints all the way through chain of
operations from production to sells point. This program intended to resolve some of the
bottlenecks within the value chains of selected commodities.
The program is to be nation wide and very soon will start the interventions in Oromia and
SNNP regions. In both regions, the selected value chains differ widely in terms of
specification, degree of implementation, function and heterogeneity. In some cases, the
value chain addresses an entire sub-sector in other cases a single commodity is
specified. However, the value chains can over lap through out the nation.
The purpose of the project is to focus on intervention points that can bring positive
changes in the honey and beeswax business chain and benefit the stakeholders. The
following approach is to work out this value chain study. Relevant literature, publications
and studies related to agro business activities and marketing reviewed in order to get in
depth information about the potential commodities. Key players including market
operators, resource personnel, NGOs, chamber of commerce, business associations,
business owners, and public enterprises communicated with all possible means of
communication including face-to-face discussions. The collected information obtained
from different literatures, discussions, opinions and comments analyzed, processed and
checked against literature, data and experiences of consultants. With this approach,
twenty-nine value chains documented for the first workshop and narrowed dawn to six
potential candidates for intervention.
The six value chains selected by the joint effort and discussions made on the workshop
held on April 18. 2005. Public and private participants in both regions including Ethiopian
Chamber of Commerce, Addis Ababa Chamber, Awassa and Adama Chamber have
actively participated in the workshop and the following value chains selected for the
respective regions. Thus, this strategic intervention plan accepted in the stakeholders’
workshop.
Regions
Oromia SNNPR
1. Milk & Milk production (both regions) 4. Honey and beeswax (both regions)
2. Vegetable / Tomato 5. Spice / pepper
3. Edible oil/ Oil seeds 6. Pineapple
The selected value chains for each region are three with reserves, one for each region.
Therefore, this strategic intervention plan has considered two for each region and the

details for the four-value chain presented to the workshop held for two days, May 30 and
31, 2005.
The selected value chains described, intervention areas indicated, and the workshop
has made participatory discussion and contributed a lot especially on the activities to be
in the pilot phase.
The whole idea of the strategic intervention plan work shop was to bring all stake holders
from private sector, public sector and the consultant team from SNV and make a plat
form for common discussion and reach consensus so that can have integrated view for
planning of the honey & beeswax value chain activities of the pilot phase.
In addition to this, the workshop had a session and made presentation and discussions
on the access modalities to ear marked and requested funds, regulatory and policy
issues, coordination mechanisms on linkages between value chain activities and
program components, and responsibilities and selection of program advisory committee.
The activity planning workshop was successfully managed and the honey & beeswax
activities are established and participants from the respective syndicate groups
organized on regional basis have presented the output attached the workshop out put as
part of this document. The result of the intervention could be measured and evaluated
based on the out puts of the business operation in the process and or periodically. The
impact hypotheses that are pre formulation of impacts over the honey and beeswax
chain expected to be the result of the intervention and measured using indicators
formulated in the same workshop. Impacts are direct benefits of output of the
intervention plan and come out of performance when the achieved out put compared
with the planned activities.
1. Value Chain Program Goal

The program planned as national level support program for agro based business
organizations. The first pilot project is to be in Oromia and SNNP regions in a
participatory manner. It is public private partnership scheme focused to support actors
involved in agro business activities across the chain of operations from raw material
supply to sells point. The over all idea of the project is to alleviate business bottlenecks
that hinders the business development and encourage the business to work to the best
of its capacity and ability so as could have sustainable and productive economic growth.
For the success of the programme, the action plan has considered business service
providers as executive partner of implementation.
2. Value Chain Program Objective

The objective of this program is to identify value chains with critical problems in their
prevailing business operations. In addition, make problem analysis of the respective
value chain and identify intervention areas where by the program will design means of
alleviating the main problem and the obstacles that hinder the business operation. In
addition, apply the means and get rid off the limitations through possible intervention
points so as the business activities across the value chain would be smoothened and
positive result achieved with a joint effort of all stakeholders.
The role of the stakeholders has an important contribution for the success of this
objective. Business development service providers are well come to work in the strategic
intervention program either as direct participant or indirect supporter in their capacity and
experiences. Their support can be in any ways convenient to them, from experience
sharing up to training, from technology to financial support and or any thing important

that can help to achieve the desire objective of the intervention plan. Farmers’
cooperative organizations both at regional and federal level are among the expected
potential stakeholder, which can facilitate the implementation of this program. Several
NGOs are expected to share their development experiences as they committed to share
their know how during the study tour of the team. Any public or private partners also
expected to be development service provider of their respective business.
3. Features of BOAM
• Works with on going agro based private business activities.
• Facilitate private public partnership forum.
• Participatory approach and work with all available stakeholders.
• Intervene on request based intervention plan.
• Identify intervention area along the chain and intervene through private partner.
• Five years program with two phases, Pilot phase and Scaling up phase.
4. Honey and Beeswax
4.1 Honey and beeswax in Ethiopia

An estimated 2.5 million hectare of natural forest presently remains in 58 designated
National Forest Priority Areas (NFPA). Of these 13 managed under integrated forest
management systems, with about 80,000 hectares of industrial forest established for
limited sustainable exploitation. With some 3.3 million beehives, Ethiopia is the leading
honey and beeswax producing and exporting nation of Africa. Beekeeping is a traditional
important off farm activity to harvest honey for many rural people in Ethiopia. About
95.5% of the honey produced from the traditional beehives. The country has substantial
potential for apiculture development and the MoARD has bee keeping as one of the
priority commodities targeting the local and export markets.
Honey is the natural sweet substance produced by honeybees. It can be from the nectar
of plants or from secretions of living parts of plants or excretions of plant sucking insects
on the living parts of plants, which honey bees collect, transform by combining with
specific substances of their own, deposit, dehydrate, store and leave in the honey comb
to ripen and mature. Honey is sweet, thick, supersaturated sugar solution manufactured
by bees to feed their larvae and for subsistence in winter. Bee honey is composed of
fructose, glucose, and water, in varying proportions; it also contains several enzymes
and oils. Honey has a fuel value of about 3307 cal/kg. It is a small scale, rural
agricultural industry, used as a source of cash income for peasant farmers. Most of the
farmers know beekeeping but cannot come to the proper management and it remains
traditional. Damaging the natural vegetation as means of survival like charcoal, firewood,
timber production and animal grazing are seriously affecting the sub sector.
Ethiopia is the World’s 10th biggest honey producer and the 4th largest beeswax
producer after China, Mexico and Turkey. Owing to its varied ecological and climatic
conditions, Ethiopia is home to some of the most diverse flora and fauna in Africa,
making it highly suitable for sustaining a large number of bee colonies. Ethiopia
reportedly has the largest bee population in Africa with over 10 million bee colonies, out
of which about 7.5 million confined in hives and the remaining exist in the forest.
According to Holota research institute, recent morph metric analysis comes up with five
types of bees in Ethiopia.

Traditional beehive of Ethiopia on a tree:

Most of local beehives hanged over long trees. Productivities of honeybees are very
low and average of 5-6 kg of honey cropped per hive per year, while from the
improved one average of 15-20 kg even more is possible. Honey and beeswax collected
after the rainy season starts in October and extends until December. In the South and
Eastern parts, there is minor harvesting period in May-June. According to CSA, 2001 the
major honey and beeswax producing regions in Ethiopia are Oromia (about 41%),
S.N.N.P.R (22%), Amara (21%) and Tigray (5%). However, the country is suffering
from the ecological deterioration of it natural resources and this means the basis
for any honey production is threatened.
Table1 Number of hives by region (000)

No Region Beehives number % Remark
1 Tigray 165.97 5
2 Afar 5.20
3 Amara 706.79 21
Oromia 1,366.37 41
5 Somalia 1.22
6 Benshangul 250.15 8
7 SNNPR 726.48 22
8 Gambela 106.24 3
9 Hareri 0.68
10 Addia Ababa 0.54
11 Diredawa 0.62
Total 3330.26 100

Source: CSA, 2001
Table 2 Ethiopian Six Years Apiculture Sub Sector Potential Estimate

Bee Hives
Year
(Number) Beeswax (MT) Honey (MT)
1999 3,386,970 3,420 28,500
2000 3,220,430 3,480 29,000
2001 3,327,370 3,400 29,000
2002 3,330,000 3,400 29,000
2003 3,330,000 3,400 29,000
2004 3,330,000 3,400 29,000
Source: FAO, EEA
According to International Trade Centre (ITC) 1986, total estimate of honey production
for Ethiopia ranges from 21,480– 23,700 tones per annum between the years 1984-
1994. This contributed 23.58% to total African honey production and 2.13% to total world
production in 1976-1983. The current honey production estimated at 24,600 tones per
year. The estimate based on 65% and 75% occupational efficiency of 7.5 million
traditional and 20 thousand framed improved hives respectively. Honey is almost
exclusively used (80% of it) to satisfy local demand; production of “Tej” alcoholic mead
consumed locally. The honey produce is so crude that it will not compete in the
international market. However, an average of 3000 tones per annum exported to
neighbouring countries over the years 1984-94 (ITC, 2003).

Ethiopia is the fifth biggest wax exporters to the world market. The annual production of
wax estimated at 3,200 tones, without considering beeswax wasted in the remote areas.
Beeswax is a valuable hive product obtained from honeybees. It is a by-product of the
honey production. Honey and beeswax separation is very traditional and the wastage
level is very high. Holota research institute has found out that use of press
separation can help to extract 50% more wax than the traditional manual
extraction. Holota research centre found out ratios between crude honey and
crude wax, crude wax and pure wax. From a beehive, 75% is honey and the rest
25% is crude wax.
Beeswax largely collected from traditional hives rather than the modern hives, which
presently promoted by the Ministry of Agriculture and several NGOs. The wax yield from
traditional hives is 8-10% of the honey yield, compared to 0.5-2 % from modern hives.
The bulk of the supply of beeswax obtained as residual from “Tej” production, a mild
alcoholic beverage popular throughout Ethiopia.
According to ITC, report, export of beeswax have had difficult times in the last 5 years,
showing an average growth rate of 1 % and even negative in period of 1999-2002.
However, exports of beeswax from Ethiopia have increased spectacularly and reached
402 tones of beeswax (1.2% share in world market), destined to different countries
(USA, Japan, Greece, Great Britain and Netherlands etc.), generating USD 936
thousands in 2003 (CBI, Nov 2004 and ITC, 2003).
There are 16 companies registered as exporters of beeswax in the country. However,
except four, many of these are not active. The lack of supply mentioned as one of the
reason for many of them to remain inactive, not the absence of an international market.
Three of the 16 are reported to be principal exporters, of which Ghion Industrial and
Commercial PLC is the largest followed by Baobed PLC and BWAP Export PLC
respectively. The former represented about 50% of the beeswax export of the country in
2003.
Today private companies are coming up into honey and beeswax business. Beza Mar
Agro industry, BWAP Export PLC, Amar honey collection, production and marketing,
APINEC PLC, Harmony agricultural enterprise, East Shoa beekeepers association, Tutu
and her family commercial PLC are actively working on the sub sector. They are
organizing themselves to work jointly and trying to get into the world market.
In the past four years, the exported volume of beeswax and the foreign earning
enumerated in the table below. The annual beeswax sells quantity ranges from 207 tons
and 525 tons has given a corresponding sells value of half a million USD and 1.4 million
USD. The annual average sells per ton do not show too much inconsistency a change in
volume of supply did not reduce the average earnings per ton.
Table 3 Export earning from Beeswax (1993-96 E.C)

Year Value Average price per ton
(EC) Quantity (ton) (Thousand USD) (USD)
1993 311 870 2,797
1994 285 703 2,467
1995 207 500 2,415
1996 525 1,389 2,646
Source: Ethiopian Customs Authority and author’s calculation
The contribution of honey and non-honey products to Ethiopian export has significant
difference. The table below indicates the percentage share of honey and beeswax. From

the total earnings, beeswax has a share of 99% both in value and in volume, which is a
clear indication for the highest degree of contribution of the beeswax in many folds.
Table 4 Comparison between export earnings of Honey and Beeswax

Average price
Volume (MT) Value (000 USD) (USD/Ton)
Year (GC) Honey Beeswax Honey Beeswax Honey Beeswax
1999
7 267 27 913 3,857 3,419
2000
1 295 3 895 3,000 3,034
2001
1 53 1 146 1,000 2,755
2002
3 233 9 554 3,000 2,378
2003
6 402 12 936 2,000 2,328
Five years average share (%) 1 99 1 99 2,571 2,783
Source: FAO, EEA and authors calculation
For five successive years, the annual average price trends of honey and beeswax were
in the range of 1000USD and 3900 USD per ton. The price of honey is unstable shifts up
and dawn with in the range, but beeswax price trend is almost stable, higher and has the
major share in volume of export sells.
Honey & beeswax average price in export market
Honey Beeswax
5,000
4,000
USD per MT
3,000
2,000
1,000
0
1999 2000 2001 2002 2003 Five years
average
Year
This sub sector has problems of market information, roads, packaging and means of
transport from the farm site to the main routs is not suitable for honey. Fibber sacks and
bags made of hides (Silicha) are the commonest containers to supply honey from rural
areas to collection centres.
Trend of honey business in the local market

The consumption and competition of table honey in Addis Ababa and in some of the big
towns of the country is growing. Small shops and super markets are displaying well-

packed table honey processed locally and even imported. Promotion on table honey is
not yet popular, however; some companies started to display their product in trade fairs
in Addis Ababa. Introducing their products through different promotion tools, make panel
taste and collect feedback from visitors. The following table can indicate the local market
prices, which might show the beginning of competition between business enterprises on
table honey.

Table 5 Addis Ababa Market prices for half a kilo of table honey
Supplier Container capacity(gm) Retail selling price (EB)
Harmoney PLC 500 20
AMAR 500 14
Beza Mar 250 9.20
Beza Mar 500 17.25
Tutu & her family 500 17.60
Maskel flower 600 16.90
Kindest honey 500 14.95
Senho honey 500 14.95
Yeshi honey 500 14.60
Source: Author data collected in Addis Ababa market
Logistics for honey

Because of Tej honey has continuous local demand and the question of moisture
content of honey is not important. Beeswax also has good local and foreign market but
farmers are not benefiting from the wax business. Out of apiculture, sub sector the share
of honey in foreign sells is almost none. Beeswax is the only exportable commodity,
which is about 10% of the annual honey product. The role of the main product honey in
foreign income is almost none but the by-product has significant contribution. Because of
the moisture level of honey Ethiopia cannot compete in the world market but the volume
of honey production is the highest in Africa. Like all livestock product the problem of
means of transportation, handling and packaging are among market problems. Culturally
honey is one of the livestock sub sector used by smallholders but like any agricultural
commodity access to road, transport facilities, packages, containers, handling practices
are still problems. The major damage in honey quality deterioration is poor handling and
the hygroscopic nature of the product is either neglected or unknown. In the post harvest
handling practice people are using packages like pots, skins, fertilizer bags and other
containers which are not appropriate for honey. Most of the honey products means of
transport from rural areas to the main routes or small village towns is using labor or
drought animals. The following pictures indicate the post harvest handling and the mean
of transport in areas where there is no route for trucks.


Market channel of honey

During harvest, separation of honey from wax is not common most of the time honey
and wax sold as one commodity. At the later stage especially in Tej brewing process the
honey will be used and the by product will be transferred to the next channel and then
the wax is extracted out of the crude collected from Tej house. Few beekeepers have
started to separate at their production site and pack pure table honey from wax. Super
markets and small retailers are the centre of distribution for table honey while the Tej
houses and beeswax collectors are the important stakeholders for beeswax business.
Honey Producers
Honey & Beeswax Collectors
Honey Whole Sellers
Super markets &

Honey retailers
Tej Houses Beeswax Collectors
Beeswax Exporters
Local Consumers Export Market

Steps needed to achieve EU accreditation for honey export:

According to the trade fare conference held at Dublin Ireland, August 2005, the following
are the key steps to have accreditation for honey export to EU market.
• Organization of the network: official and private channels
• Update honey standard (+ other bee products)
• Set up a monitoring plan for apiaries (traceability)
• Set up a monitoring plan for residues in bee products
• Submit everything to E.U. (DG SANCO D3)
But, the core requirement for importing honey into the EU is for the country in question to
have a residue monitoring plan, approved by the EU. This plan is intended to assess the
ability of the official services of the exporting country to ensure the safety of the honey
with regard to residues of chemical substances in it.
Due to concerns about food safety, residue monitoring plans are required from third
countries for imports into the EU of all animals and products of animal origin. This is laid
down in Council Directive 96/23/EC of 29 April 1996 on measures to monitor certain
substances and residues thereof in live animals and animal products (OJ L 125,
23/5/1996). Honey is considered as an animal product.
The control of residues in honey is important to control the traces of any contamination
that the bees have picked up. Three main groups of products are targeted for
examination:
• Banned veterinary substances (such as chloramphenicol)
• Authorised veterinary substances (but found in excess of their authorised limits,
such as antibiotics and insecticides)
• Environmental pollutants (such as pesticides or heavy metals)
The following advices are given to happen in an apiary working for EU accreditation:
1. Do not treat the hives with antibiotics as a preventive measure. If antibiotics are
necessary, you must take off the supers first, and make sure you follow the
directions exactly.
2. Do not feed with syrup or sugar during honey flows
3. Recycle all super frames that have contained fermented honey or moldy pollen
4. Avoid excessive use of the smoker when harvesting, this can give a stale
tobacco taste to the honey and can contaminate it with tar residue
5. Always harvest frames that are well sealed (at least 70% is reasonable)
otherwise the moisture content will be too high and the honey will ferment
6. Care should be taken if using a chemical repellent for harvesting
7. Do not put supers on the ground but on an upturned hive cover
8. Extract the honey in a room protected from external humidity and bees
9. The floor, walls and partitions must have a waterproof surface that will not rot to
allow for efficient washing
10. Never heat honey above105° F
11. Machines and containers must be made of stainless steel or food-quality plastic.
If this is not possible any other material must be sealed with food-quality paint
12. Never smoke during extraction
13. Pre-filter honey as it leaves the extractor (for big chunks of wax)

14. Filter honey through a fine sieve (Nylon netting) as it goes into tanks and/or
drums
15. Do not leave honey in hot rooms or places exposed to the sun
16. Prevent the honey from reabsorbing moisture by making sure tanks, drums and
containers are properly shut
17. Pollen sorting/cleaning cannot be done at the same time as honey
extraction
18. Work which does not include food products (preparing wax or frames for
example) must not be carried out at the same time as work with honey
19. The honey house must not be washed until all the honey has been
stored in airtight containers
20. No chemical products (detergents, glue for labels, medicines, herbicides, etc) are
allowed in the extraction room or the honey storeroom
21. Do not use any old oil drums even when waxed
4.2 Problem
• High moisture content of honey has hindered the export potential.
4.3 Cause of the problem

The major cause of the problem that affect apiculture in Ethiopia are lack of beekeeping
knowledge, shortage of trained manpower, shortage of beekeeping equipment, pests
and predators, fires, pesticide threat and inadequate research works to support
development programs.
The cultural beehives are not comfortable for sanitation and high level of production.
Farmers are only using the sells of the honey and do no consider wax as means of
income in their business. They do not use proper harvesting of honey and do not have
honey and wax separator. The moisture content of the product is beyond the standard
range and critical for the business. Farmers fail to supply honey with standard moisture
content and needs improvement. According to Holota beekeeping research centre,
the major causes for honey quality deterioration are backward post harvest
handling practices. The limitations of apiculture know how especially the method of
harvest and lack of proper apiary tools are causing the honey to be with high moisture
content. The volume of production is very small and needs routine collection from
fragmented small-scale production.
Above all the backward and forward linkages between the business community is not at
satisfactory level and do not have the forum to share their business knowledge and idea
for common development. They are powerless to resolve their common problems and
even do not know each other.
4.4 Potential Intervention Points

1. Changing the production system an introduction of modern beehives and
trainings on apiculture farming to crop good quality honey
2. Supporting and demonstrating practical apicultural tools, demonstrating proper
premises and extraction facilities are helpful to reduce the level of quality
deterioration
3. Establish linkages between apiculture farmers and private business capable to
transfer technologies appropriate to farmers for common benefit. And
4. Working on organic lines helps to compete better in the world market.

The following six diagrams summarize the present supply chain of honey and beeswax;
mention the main players in the chain, present potential interventions at micro, meso and
macro levels and recommend potential areas of interventions during the pilot phase of
the program.
4.5 Value Chain Diagrams

The Value chain is a high-level model of how honey and beeswax businesses receive
raw materials as input, add value to the honey and bees wax through various processes,
and sell finished purified table honey; crude honey and bees wax products to customers.
It involves all the process from the market point back to the beginning of activities
usually between input supplies and product marketing to local and foreign markets. This
project is to assess and identify activities that can bring changes in the business channel
of a product starting from input supply and end up at consumer markets. So as possible
intervention areas on the existing honey and beeswax business and bottlenecks that
hinder the flow of the business activities detected and alleviated by way of technical
training, technological change, and financial intermediation support or all through
participatory approach. Supports on the envisaged activities behind the market could
possibly bring positive changes because of participatory and action learning
implementation approach with all the concerned stakeholders with in the value chain.
The following diagram may illustrate the concept and the dimension of value chain
starting from input supply side and ends at sells point, and one can imagine the possible
stakeholders along the chain, the activities in each part of the chain, interdependence
and linkages between each other. The knowledge, the cost involved, economic impact
and so many social and economic factors are interlinked.
Input
supply
Bee
Keeping
Processing
Logistics
Sells
Consumer
Description of the concept of value chain
Under Ethiopian situation the traditional, transitional and modern bee keeping practices
are on going. However, change in the production system is believed to improve the
quantity and the quality of honey. Traditional honey management practice does not allow
inspection of the bee colony and the change of fixed comb to movable comb is
appropriate to improve the quality deterioration during pre harvest. Immediate

processing and improving the packages and the handling might reduce the degree of
deterioration during post harvest handling practice. Never the less improving the pre
harvest handling at farmers gate can help a lot more in harvesting good quality honey.

Diagram 1: Value Chain Honey& Beeswax – The Supply Process
Local use Tej Wax Tuaff

Construction Brew Collection
Of German/
Kenyan hives
Maintenance Management Harvesting Honey Bulk Transport Packaging Distribution Retail sale of
Of bee Of beehives Of Honey Extraction Storage Into Retail Honey
Population And Wax And Cleaning Container
Local hives Sale of wax to Transport Delivery to Cleaning Inspection Import

& Collecting Exporter And Delivery to Europe
Forest honey Wholesaler Bulking Port, Export Non food
Delivery to Grading and Inspection Import

Exporter Packing of Delivery to Europe
Honey Port, export Food

Diagram 2: Value Chain Honey & Beeswax – THE CHAIN LEADERS
Local use Tej Wax Tuaff International

Construction Brew Collection buyer
Of German/
Kenyan hives
Maintenance of Management Harvesting Honey Bulk Transport Packaging Distribution

Bee Of beehives Of Honey Extraction Storage Into retail
Local hives
& Sale of wax to Transport Delivery to Cleaning Inspection Import
Forest honey Collecting Exporter And Delivery to Europe
Producer Wholesaler Bulking Port, Export Non food
groups
Wholesalers Honey Port, export Food market
Exporter

Diagram 3: Value Chain Honey & Beeswax – POTENTIAL INTERVENTIONS AT MICRO LEVEL
Introduction
of hives
Marketing
support
Technology Local use Tej Wax Tuaff
Construction of honey Brew Collection
Of German/ extraction
Kenyan hives
of Of beehives Of Honey Extraction Storage Into Retail Honey
Bee And Wax And Cleaning Container
Local hives
Wholesaler Bulking Port, Export Non food
Training in
maintenance Delivery to Grading and Inspection Import
Access to
equipment

Diagram 4: Value Chain Honey & Beeswax – POTENTIAL INTERVENTIONS AT MESO LEVEL

Of German/
Kenyan hives
Maintenance of Management Harvesting Honey Bulk Transport Packaging Distribution Retail sale of
Bee Of beehives Of Honey Extraction Storage Into Retail Honey
Local hives

Honey Port, export Food market
Linking exporter and wholesaler to producer groups

Introduction of organic certification to supply chain and cooperation with organic coffee
exporters
Setting-up of an information network
Management of quality in the supply chain and exclusion of impurities

Diagram 5: Value Chain Honey & Beeswax – POTENTIAL INTERVENTIONS AT MACRO LEVELS

Of German/
Kenyan hives
of Of beehives Of Honey Extraction Storage Into Retail Honey
Bee And Wax And Cleaning Container
Local hives

Honey Port, export Food market
Via Ethiopian Quality Authority setting up quality testing facilities especially for organic
products,
via Ministry of Agriculture provide service in disease management for bee population,
promotion of apiculture as part of environmental improvement

Diagram 6: Value Chain Honey & Beeswax – AREAS OF STRATEGIC INTERVENTIONS IN PILOT PHASE
Area IV
Local use Tej Wax

Construction Brew Collection Tuaff Local
Of German/ market
Kenyan hives
Maintenance Management Harvesting Honey Bulk Storage Transport Packaging Distribution Retail sale&
of Of beehives Of honey Extraction Into retail Nitch
Bee And wax And cleaning Container export market
Local hives
& Sale of wax to Transport Delivery to Cleaning Inspection Import Europe
Forest Area I Collecting Exporter And Delivery to Non food
Wholesaler Bulking Port, export Market

Area III Exporter Packing of Delivery to Europe
Area I: Quality Improvement in rural areas

Area II: Processing Equipment
Area III: Promotion of non-honey products
Area IV: Development of organic lines
Area II

4.6 Objective of Strategic Intervention

• Commercialization of value added honey and honey by products
improved.
The objective of the intervention focuses on the commercialisation of apiculture and

the creation of cash income out of non-farming activities. The entry point will be
determined by the involved apiary cultivation units and marketing companies at
stake.
1. Introduction of modern beehives and trainings on apiculture farming
2. Supporting and demonstrating practical apicultural tools for small holders
3. Establish linkages between apiculture farmers and private business capable to
transfer technologies appropriate to farmers and work for common benefit
4. Development of organic lines
5. Development and promotion of non-honey products
6. Management of quality in the supply chain and exclusion of impurities
4.7 Result Indicators
Quality of marketable honey is increased, appropriate processing equipment is in place
and operates, the export of non-honey product is improved and new organic lines of
honey are developed.
4.8 Impact Hypothesis
• Improve traditional honey harvest and increase honey supply and quality
• Increase farmers’ income and create business linkages
• Technology transfer and learning process between farmers and the business
community involved in honey and bees wax sub sector
• Table 4 indicated the change of total profit from 40.32 to 60.88 EB
Table 6 Expected changes due to intervention program

Present Situation (2005) Improved Situation (2010)
Purified
Honey
Sales Honey Unit Sales
Table honey Yield/local Unit Price
Value Yield/mod Price Value
hive (Birr/kg)
(Birr) ern hive (Birr/kg) (Birr)
(kg)
(kg)
Average yield per hive 6 - - 20 - -
Average sales at retail level 5.4 17 92 19.6 36 706
Average sales at farm gate 5.4 12 65 19.6 32 627
Average profit 5.4 5 27 19.6 4 52
Bees wax 10% of honey
0.6 22.21 13.32 - - -
local hive
Bees wax 2% of honey
- - - 0.4 22.21 8.88
improved hive
Total profit 40.32 60.88

4.9 Activities of Intervention
Pilot Phase Intervention:

1. Planting of indigenous bee forages /shrubs, trees etc/
2. Organize women to fabricate quality protective cloth from locally available
material /MSEs/
3. Finance motorized wax foundation mould for modern hive.
4. Facilitate the finance of multi-purpose woodwork machine to fabricate hives for
MSEs.
5. Revolving fund for hive purchase for farmers /out growers /
6. Provide technology to produce non–wood frame hives.
7. Integrate research development institutions.
8. Establish training and back stopping partnerships with farmers /from technology
to markets/
9. Technical training on hives preparation, use of better tools and equipment, and
improve beekeeping management.
10. Identification of honey by region, location and type of vegetation.
11. Facilitate purchase and utilization of refraction meter at collection centre at
company level.
12. Provision of quality testing equipment
13. To finance the purchase of moisture reducer company level. (Intermediate
technology)
14. To support the construction of honey collection centre.
15. Extraction equipments centrifuge press scale and strainers.
16. Plan standard processing centre at company level
17. Facilitate purchase of the following equipments by companies’ filtration moderate
heating packaging and stirring.
18. To finance different types of glass moulds to fabricate standard and attractive
honey containers.
19. Training on the appropriate use of the improved processing equipments
20. Finance the purchase of light Pick up and trucks for honey transportation form
field to processing centre.
21. Enable companies to purify standardize wax by providing access to wax melting
filtration and packaging equipment.
22. Engage chamber of commerce in export promotion.
23. Engage women entrepreneurs association in export promotion.
24. Engage women entrepreneurs association in exporters.
25. Design website for honey and wax exporters.
26. Encourage export promotion department to link Ethiopian embassies to promote
wax.
27. Identify and invite potential clients to Ethiopia to assess potential sales contracts.
28. Assist the establishment of honey and bees wax producers and exporters
association.
29. Identify areas for development of new organic lines.

30. Identify appropriate agencies for certification (organic).

31. Assist actors in identified areas in fulfilment of certification requirement.
At micro level:
• Introduce modern beehives
• Trainings on apiculture farming
• Support working tools of apiculture
• Technical equipment for processing
• Training in quality management
• Marketing support
At meso level:
• Linking exporter and wholesalers to producer groups
• Introduction of organic certification to supply chain and cooperation with organic
coffee exporters
• Setting-up of an information network between the business group
• Management of quality in the supply chain and exclusion of impurities
• Establish business development service between honey and wax suppliers and
private company
At macro level:
• Via Ethiopian Quality Authority setting up quality testing facilities especially for
organic products,
• via Ministry of Agriculture provide service in disease management for bee
population,
• promotion of apiculture as part of environmental improvement
4.10 Implementation Concept - Pilot Phase

During the pilot phase the program will
• Support at least four selected intervention areas of the value chain.
• Each selected intervention area will produce its own impact.
• At the same time, all interventions should result in an improvement of the entire
chain.
• The program will only work under request, meaning the chain actors have to
prepare a request.
• However, in order to speed up the process the program provides direct support
as deemed necessary and according to the available capacity.
The strategic planning workshop out put has indicated the detailed activities of the
intervention areas based on the planned objective that can resolve the identified problem
and bottlenecks of the value chain. Potential partners like local and international NGOs,
BDS providers, public and private business institutions expected to have bigger role,
contacts facilitated, and degree of cooperation on the selected strategic intervention
areas would be what the partner can contribute to the program. Strengthening client
relationship and partner relationship will be encouraged to make request able partner

through contacts, meetings, visits and workshops. The radial diagram illustrates the
relationship.
CLEINTS
NGOs BDS
Providers
BOAM
Public
Enterprises Others
Business
Companies
The output of the workshop detailed in the following log frame and designed to be suited
for monitoring and evaluation of the pilot phase.

Table 7 Workshop Output for Honey & Beeswax Value Chain in the Pilot Phase
Objective Result Indicator Activities

Commercialization 3Oi-1: Kilogram Price of
of value added centrifuged purified honey
honey and honey has raised by 20% (in main
by products harvesting season)
improved. 3Oi-2: FOB value of wax
increased by 15% against
last 3 years average.
3Oi-3: Technical
organization and
prerequisites organic
certification are fulfilled.
3R-1: Quality of 3R-1-i1: The moisture level 3R-1-a1: Introduce plant material of indigenous bee forages /shrubs, trees etc/
marketable for marketable honey is 3R-1-a2: Organize women to fabricate quality protective cloth from locally
honey is lower than 18%. available material /MSEs/
increased. 3R-1-a3: Finance the finance of motorized wax foundation mould for modern
hives.
3R-1-a4: Explore access to non-funded financial facilities.
3R-1-a5: Propose technology to produce none wood frame hives.
3R-1-a6: Integrate research development institutions in quality improvement.
3R-1-a7: Establish training measures in quality improvement.
3R-1-a8: Provide technical training on hives preparation and beekeeping
management.
3R-1-a9: Identify and classify honey by the type of its vegetation.
3R-1-a10: Facilitate the finance to purchase and utilization of refraction meter at
collection centre at company level.

3R-2: 3R-2-i1: Two companies 3R-2-a1: Facilitate the purchase of moisture reducer company level.
Appropriate out of five adopt and use (intermediate technology)
processing appropriate processing 3R-2-a2: Facilitate to finance the construction of collection centre.
equipment is in equipment. 3R-2-a3: Facilitate to finance for the purchase of equipments like centrifuge
place and press scale and strainers.
operates. 3R-2-a4: Create company owned pilot collection and extraction outlets.
3R-2-a5: Facilitate the finance for the purchase of equipments by companies.
3R-2-a6: Develop appropriate packaging concept.
3R-2-a7: Provide training on the appropriate use of the improved processing
equipments.
3R-3: The export 3R-3-i1: Sales contracts 3R-3-a1: To engage chamber of commerce in export promotion
of non-honey with international buyers 3R-3-a2: To engage women entrepreneurs association in export promotion
product is are increased by 10%. 3R-3-a3: To design website for honey and wax exporters
improved. 3R-3-a4: To encourage export promotion department to link Ethiopian
embassies to promote wax
3R-3-a5: To identify and invite potential clients to Ethiopia to assess potential
sales contracts
3R-3-a6: Assist the establishment of honey and bees wax producers and
exporters association.
3R-4: New 3R-4- i1: The application 3R-4-a1: To identify geographical areas for development of new organic lines
organic lines of procedure for organic 3R-4-a2: To identify appropriate agencies for certification (organic)
honey are honey line completed and 3R-4-a3: To assist actors in identified areas in fulfilment of certification
developed. certification process requirement.
initiated.
Holetta bee research centre, Agricultural colleges Jimma, Ambo, Addis Ababa university, micro and small trade productivity production and quality
improvement centre TVETS, and Debub university. Financial institutions: Bank of Abyssinia, Oromia cooperative bank, Awash international Bank, Micro
finance institution. Export promotion Department, Chamber of commerce, Women entrepreneurs, Association women exporters, Forum ministry of trade
and industry micro and small enterprise association. BCS OKO SKAL, Ethiopian Quality Standard Authority.

Table 8 SWOT analysis for honey & beeswax in priority order of internal & external forces
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
Suitable agro ecology with good Low level of knowledge of The culture of Tej brew is good Environmental deterioration,
number of local hives. beekeeping and post harvest market for unprocessed honey. deforestation and burning of forest
handling practice are damaging the potential flora.
Potential for organic honey. Use of traditional hives and low EQS for hives honey & beeswax is Uses of pesticides are expanding.
level of modern Apiculture practice. ready for implementation.
Low level disease infestation. Not commercialized and no Honey has social acceptance as Low level purchasing power of table
sustainable supply of honey and food & healing product. honey in local market.
beeswax.
High moisture content Sustainable demand for beeswax in
international market.

Table: 9 List of stakeholders for honey and other selected value chains
Selected value chain

Honey A= Main actors
Milk & Edible oil & B= supporting
List of actors in the BOAM milk & oil beesw Pineappl institutions
program products seeds ax e Expected relation C= Consultation group Contact person & address
I. CLIENTS:
1.1.Business companies and
individual business men
1.1.1. Sebeta agro-industry x BDS Provider A Ato Mohamed Ahmed Tel. 01-
537258,Fax 01-523099
1.1.2.Beza mar agro industry PLC x BDS Provider A Ato Hailegiorgis Demmise Tel.09-
201686, 01-505099
1.1.3.Apinec apiculture development x BDS Provider A Ato Woubshet Adugna
& trading PLC Tel.07-311020,09-407360
1.1.4.BWAP export PLC x supplier A Ato Daniel Admasu
Tel. 09-217266,01-626362
1.1.5.Tutu and her family commercial x supplier A Ato Eyob Assefa Tel.09-433163, 01-
PLC 531763
1.1.6.Harmony agricultural PLC x supplier A Ato Solomon Osman
Tel.09-213358, 01-112786
1.1.7.Century general trading PLC x supplier Ato Zewge Jemaneh
Tel.09-205826,01-765182
1.1.8. Axumite coffee and fruit x BDSP A Ato Tesfaye Teklehaimanot
exporter plc Tel.01-391459,Fax 01-393674
1.1.9. Segel trading PLC x BDSP B Ato Seifu Weldemicael Tel.01-
552983,01-667101,09-204373
1.1.10.Private milk collectors x suppliers To be identified and contacted
1.2. Business associations

1.2.1. Ethiopian honey & beeswax x suppliers A
producers and exporters
association

1.2.2. East shewa beekeepers x suppliers Ato Abu Negeso Tel.09-643099,02-

association 122494
1.2.3. Adama women milk producers x suppliers W.ro Tsehai Abebe
association Tel.02-127206,02-118140
1.2.4. Adama oil mill owners x Processors A Ato Bezu Beyene-09-247701
association
1.2.5. Addis Ababa oil mill owners x Processors A Ato Mulugeta Tegegn -09242211
association
1.2.6.National Beekeepers x Experience sharing & market A Ato
association linkage
1.3. Cooperatives/unions
1.3.1. Ambo oil crop farmers x suppliers A Ato Dechasa Fufa Tel.01362297,09-
cooperative union 105121
1.3.2. Didaa oil crop farmers x suppliers A Ato Kebede Seifu Tel.02-430130
cooperative union
1.3.3. Selale Milk producers x suppliers A Ato Kibret Lema Tel.09-122916
cooperatives union
1.3.4. Teso pineapple producers x suppliers A
cooperative
1.3.5. Adaa Lliben milk producer x suppliers A Ato Mituku Tadele Tel.09400424
cooperatives
1.3.6. Kaffa honey producing x suppliers A
farmers union
II. PARTNERS:
2.1.Bilateral and international
organizations
2.1.1.USAID Technical support & C To be identified
experience sharing
2.1.2.CIDA Technical support & C To be identified
experience sharing
2.1.3.SIDA Technical support & C To be identified
experience sharing
2.1.4.Irish development cooperation Technical support & C Tel.665050
experience sharing
2.1.5.ILRI/IPMS project x x x Experience sharing, training A Dr.Azage Tegegn
& Laboratory service Tel.09-246442,01-463215
2.1.6.UNIDO x x x x Training & food safety Dr.Mulat 01-444040

2.2 NGOs
2.2.1.VOCA/Ethiopia x x x x Coop. development & A Ato Worku Mekasha 01-534650
training
2.2.2.SHDI x x x x Coop. development & A Dr.Awol Mela Tel. 01-522313,01-
training 522072
2.2.3.ICCO x x x x Coop. development & A
training
2.2.4.SOS Sahel x Coop. development & A Ato Feyera Abdi
training 01-160279/167583
2.2.5.Center for promotion of export x x x x Training & market C
from developing countries (CBI) development
2.2.6.International fair trade x x Market development C Miss. Dena 09-222388
foundation
2.2.7.Growing Ethiopian x x x Market development B Ato Getu Reta Tel.09/414069
Market(GEM)/DAI
2.2.8. Farm Africa x Coop. development & C
training
2.3.Universities and Research
Institutions
2.3.1.Melkassa agricultural research x Research C Ato Endale Moshe 09-823444,06-
centre 205791(Zonal coop.)Ato Didimos O6-
240504 (Woreda coop)
2.3.2.Awassa agricultural research x Research A Dr. Daniel Dawero 06-204000
institute
2.3.3.Jimma agricultural research x Research B to be identified
institute
2.3.4.EARO x x x x Technical advice C Dr.Tsedeke Abate Tel.01-
462270,462633
2.3.5.Holotta agricultural research x Research A Ato Desalegn Begna 09-890703
centre Dr.Nuru Adgaba 09-163810
2.3.6.Debub university research x Tissue culture B Dr.Girma Abebe Tel.06-204738
department
2.4.Government Institutions
2.4.1.Ministry of Trade and x x x x Legal issues &Market A Ato Dendena Tel.01-518025
Industry development
2.4.2.Quality and Standards x x x x Quality and standard issues A Ato Sisay Asefe
Authority of Ethiopia (QSAE) Tel.01-460111,01-460515

2.4.3.Ministry of Agriculture and x x x x Extension & training A to be identified

Rural Development
2.4.4.Federal cooperative x x x x Cooperative development B Ato Bedru Dedgeba
commission
2.4.5.Ethiopian export promotion x x x Market development A Ato Dendena Tel.01-518025
department
2.4.6.Ethiopian fruit and vegetable x Technical support C Ato Sisay Kibret 01-517005
marketing
2.4.7.SNNPRS cooperative x x Cooperative development & A Ato Zenebe Tel.09-823421,
promotion office extension, 06-210056
2.4.8.Oromia cooperative promotion x x Cooperative development & A Ato Kebede Assefa 09-687687,01-
office extension, 420175
2.4.9.SNNPRS micro & small trade x x BDS and market linkage A Ato Tariku Teka Tel.06-210478,09-
and industry bureau development. 665789
2.4.10.Oromia trade ,transport and x x Transport and legal issues A Ato Kumsa Legese Tel.02-112261
industry Division facilitation
2.4.11.Oromia micro and small x x BDS and market linkage A Ato Kudhama Bedada
enterprise development division development Tel.02-128481,02-128483
2.4.12.Oromia BoFED x x Facilitation for “public goods” A Ato Alemayehu Sambi Tel.09-
607092,01-527251
2.4.14.SNNPRS BoFED x x Facilitation for “public goods” A Ato Ambachew Deres Tel.06-
214133,06-201728
2.4.15.SNNPRS Export promotion x x market linkage development A Ato Teshome Menjur
Bureau 06-206582,06-206581
2.4.15.Ethiopian Customs Authority x x x Export marketing A

2.5.Chamber of Commerce &
Business Organizations
2.5.1. Ethiopian chamber of x x x x Policy forum & coordination A Ato Andualem Tegegn 09-253321
commerce (ECC) tasks 01-518240
2.5.2.Addis Ababa chamber of Policy forum & coordination A Ato Hailemeskel Abebe
Commerce(AACC) tasks Tel .01513814
2.5.3. Adama chamber of commerce x x Policy forum & coordination A Ato Gezahegn Dadi
tasks Tel. 09-245007,02-112083

2.5.4. Awassa chamber of x x Policy forum & coordination A Ato Melese Mengesha 06-206051
commerce tasks
2.5.5.Ethiopian manufacturing x x x Policy forum & coordination B Ato Asrat /Ato Samuel Tel. 01-512384
industries association tasks
2.5.6. Adama women entrepreneurs x x Linking women with the value A W/ro Roman Diksiso Tel.09-463450
association chains
2.5.7.Awasa women entrepreneurs x x Linking women with the value A W/ro Amsale Negash
association chains Tel.06 201151
2.5.8. Addis Ababa Women Linking women with the value A W/ro Tsehai Belaineh Tel.09-
entrepreneurs association chains 209236,01-627055
2.5.9.Ethiopian oil seed exporters x Coordination tasks B Ato Elias Geneti, Tel.01-505595
Association
2.5.10.Ethiopian horticulture x Experience sharing & C Ato Alem Shumie Tel.01-636751
producers & exporters association coordination
2.6.Financial Institutions*
2.6.1.Awash international Bank x x x x Financing B Ato Leikun Birhanu Tel.01614482/85
2.6.2.Oromia cooperative Bank x x Financing B
2.6.3.Bank of Abyssinia x x x x Financing B Ato Kebede Temesgen
Tel.01530663,01533847
2.6.4.NIB International Bank x x x x Financing B Ato Amerga Kassa Tel.09208098
2.6.5.MFI x x x x Financing B Further to be contacted
2.7. Private companies &
Consultants
2.7.1. Yilma Global Consult x x x x BDS Provider A Dr. Zewdu 09- 613058
2.7.2. Birtunet PLC BDS Provider A Ato Negash 09-405399
2.7.3. Agro- processing & marketing x BDS Provider A Dr.Menwuyellet Moussie
consult (APMC) 09-641948
2.7.4.Frieght forward companies x x transport & facilitation B To be identified
services
2.7.5.Packaging industries x x x x Packaging services B To be identified
2.7.6 ACABT x x x x BDS provider B Y.Agonafir 09/665143

Table 10 Plan of operation for honey and bees wax value chain
3. Honey and Beeswax Objective: Commercialization of value added honey and honey by products improved.
Objective indicator 3.1: Kilogram Price of centrifuged purified honey has raised by 20% (in main harvesting season)
Objective indicator 3.2: FOB value of wax increased by 15% against last 3 years average.
Objective indicator 3.3: Technical organization and prerequisites organic certification are fulfilled
Result 3.1: Quality of marketable honey is increased.
Indicator 3.1.1: The moisture level for marketable honey is lower than 18%.
Activities Responsible 8/0 9/0 10/0 11/0 12/0 1/0 2/0 3/0 4/0 5/0 6/0 7/0 8/0 9/0 10/0 11/0 12/0 1/07
5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6
3.1.1 Plant indigenous bee
forages /shrubs, trees etc/. BDS provider
3.1.2 Organize women to
fabricate quality protective MSE Offices
cloth from locally available
material /MSEs/.
3.1.3 Facilitate the finance of PMU/BDS
motorized wax foundation providers
mould for modern hives.
3.1.4 Propose technology to PMU/BDS
produce none wood frame providers
hives.
3.1.5 Integrate research
development institutions in PMU
quality improvement.
3.1.6 Establish training
measures in quality BDS providers
improvement.
3.1.7 Provide technical BDS providers
training on hives preparation
and beekeeping
management.
3.1.8 Identify and classify BDS providers
honey by the type of its
vegetation.
3.1.9 Facilitate the finance to BDS providers
purchase and utilization of

refraction meter at collection

centre and at company level.
Result 3.2: Appropriate processing equipment is in place and operates.
Indicator 3.2.1: Two companies out of five adopt and use appropriate processing equipment.
5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6
3.2.1 Facilitate the finance to PMU/BDS
the purchase of moisture providers
reducer at company level
(intermediate technology).
3.2.2 Facilitate to finance the PMU/BDS
construction of collection providers
centre.
3.2.3 Facilitate to finance PMU/BDS
equipments like centrifuge providers
press scale and strainers.
3.2.4 Create company owned BDS providers
pilot collection and extraction
out lets
3.2.5 Facilitate the finance for PMU/BDS
the purchase of equipments providers
by the companies
3.2.6 Develop appropriate PMU
packaging concept
3.2.7 Provide training on the PMU/BDSP
appropriate use of the /Partners
improved processing
equipments.
Result 3.3: The export of non honey product is improved.
Indicator 3.3.1: Sales contracts with international buyers are increased by 10%.
5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6
3.3.1 To engage chamber of BDSP
commerce in export
promotion.
3.3.2 To engage women PMU/Partners
entrepreneurs association in
export promotion.
3.3.3 To design website for PMU
honey and wax exporters.

3.3.4 To encourage export Ministry of Trade

promotion department to link & Industry
Ethiopian embassies to
promote wax.
3.3.5 To identify and invite PMU/BDSP
potential clients to Ethiopia to
assess potential sales
contracts
3.3.6 Assist the PMU/Client
establishment of honey and
bees wax producers and
exporters association.
Result 3.4: New organic lines of honey are developed.
Indicator 3.4.1: The application procedure for organic honey line completed and certification process initiated.
5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6
3.4.1 To identify geographic
areas for development of new BDSP
organic lines.
3.4.2 To identify appropriate PMU/BDSP
agencies for certification (organic). /Partners
3.4.3 To assist actors in PMU/BDSP/EQSA
identified areas in fulfilment of
certification requirement.


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SNV SUPPORT TO BUSINESS ORGANISATIONS

AND THEIR ACCESS TO MARKETS (BOAM)

STRATEGIC INTERVENTION PLAN ON

HONEY & BEESWAX VALUE CHAINS

Johannes Agonafir, Agric & horticultural Economist - Local Consultant

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

1. Value Chain Program Goal

2. Value Chain Program Objective

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

4. Honey and Beeswax

4.1 Honey and beeswax in Ethiopia

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Traditional beehive of Ethiopia on a tree:

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Table1 Number of hives by region (000)

Total 3330.26 100

Table 2 Ethiopian Six Years Apiculture Sub Sector Potential Estimate

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Table 3 Export earning from Beeswax (1993-96 E.C)

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Table 4 Comparison between export earnings of Honey and Beeswax

Honey & beeswax average price in export market

Trend of honey business in the local market

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Logistics for honey

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Market channel of honey

Honey & Beeswax Collectors

Honey Whole Sellers

Super markets &

Tej Houses Beeswax Collectors

Local Consumers Export Market

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Steps needed to achieve EU accreditation for honey export:

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

4.3 Cause of the problem

4.4 Potential Intervention Points

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

4.5 Value Chain Diagrams

Description of the concept of value chain

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Diagram 1: Value Chain Honey& Beeswax – The Supply Process

Local use Tej Wax Tuaff

Local hives Sale of wax to Transport Delivery to Cleaning Inspection Import

Delivery to Grading and Inspection Import

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Diagram 2: Value Chain Honey & Beeswax – THE CHAIN LEADERS

Local use Tej Wax Tuaff International

Maintenance of Management Harvesting Honey Bulk Transport Packaging Distribution

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Local use Tej Wax Tuaff

Delivery to Grading and Inspection Import

Linking exporter and wholesaler to producer groups

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Local use Tej Wax Tuaff

Delivery to Grading and Inspection Import

Strategic Intervention Plan, SNV/Ethiopia, Tel 2511654386/87/89/

Local use Tej Wax