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Analysis of Honey and Beeswax Value Chain
Analysis of Honey and Beeswax Value Chain
COLLAGE OF AGRICULTURE
BY
MULUKEN BELAYNEH ID NO
HAWASSA ETHIOPIA
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ACKNOWLEDGEMENTS
First of all, I would like to thank my God for giving me health and make to write this
paper and I great appreciation to Hawassa University, School of Agricultural Economics and
Agribusiness Studies program of Agribusiness and Value chain Management for giving me
material support. Also I forward my deepest thanks to my advisor Gelefeto (MBA) for his
invaluable and unreserved assistance during the whole work of this study. I am very much
indebted to him for the amount of work he put into this task, which made the study to be
completed successfully. My special thanks and heartfelt gratitude also extends to for my
family and friends for their affection, unreserved encouragement, inspiration and support for
success of this study. Finally, my extend thanks goes to Debay Telatgen Agricultural
development offices for their cooperation during data collection and to beekeepers, traders
and consumers in the study area for willing to be interviewed and giving me all valuable
required information.
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Content
ACKNOWLEDGEMENTS......................................................................................................................ii
List of Tables..........................................................................................................................................v
List of figures........................................................................................................................................vi
ACRONYMS AND ABBREVIATIONS............................................................................................viii
ABSTRACT...........................................................................................................................................ii
1. INTRODUCTION..............................................................................................................................1
1.2. Statement of the Problem............................................................................................................2
1.3 Objectives.....................................................................................................................................3
1.3.1 General Objectives...............................................................................................................3
1.3.2 Specific Objectives................................................................................................................3
1.4 Research Questions......................................................................................................................3
1.5 Significance of the Study..............................................................................................................4
1.6 Scope of the Study........................................................................................................................4
1.7 Limitation of the Study.................................................................................................................4
1.8 Organization of the study.............................................................................................................4
2. LITERATURE REVIEW...................................................................................................................5
2.1. Basic Concepts and Definitions...................................................................................................5
2.2 Empirical Review.........................................................................................................................6
2.2.1. Ethiopian Honey and Beeswax Market.................................................................................6
2.2.2. Processing of Honey and Beeswax.......................................................................................7
2.2.3 Marketing of Honey and Beeswax.......................................................................................10
3. METHODOLOGY...........................................................................................................................12
3.1. Brief Description of the Study Area..........................................................................................12
3.2 Research Design and Sampling Techniques...............................................................................12
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3.2.1 Selection of Honey and beeswax production sites...............................................................12
.3.2.2. Selection of major markets and sellers...............................................................................13
3.2.3. Selection of Honey consumption sites................................................................................13
3.3. Types and Sources of Data........................................................................................................13
3.4. Method of Data Collection........................................................................................................14
3.5. Methods of Data Analysis.........................................................................................................14
4. RESULT AND DISCUTION...........................................................................................................15
4 .1 Socio-Demographic Characteristics of Respondents.................................................................15
4.1.1. Age, sex, and marital status of respondents........................................................................15
4.1.2. Sex of Sample respondents.................................................................................................15
4.1.3. Marital Status of the Sample respondents...........................................................................16
Figure 2 shows the marital status of respondents..........................................................................17
4.1.4. Educational Status of Sample Respondents........................................................................17
4.1.5. Experience in Beekeeping..................................................................................................18
4.2.2. Honey Production...............................................................................................................19
4.3. Honey and Beeswax Extraction and Processing........................................................................20
4.6. Socio-Economic Importance of Honey and Beeswax................................................................22
4.7. Factors Affecting Honey and Beeswax Value Chain.................................................................23
5. CONCLUSION AND RECOMMENDATION................................................................................25
5.1 Conclusion..................................................................................................................................25
5.2. Recommendation.......................................................................................................................26
6. REFERENCES................................................................................................................................27
7. APPENDIX.....................................................................................................................................30
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List of Tables
Table 1) Age distribution of respondents…………………………………………………………….16
v
List of figures
Figure 1) Sex distribution of respondents……………………………………………………………..17
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ACRONYMS AND ABBREVIATIONS
CSA Central Statistical Agency
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viii
ABSTRACT
Ethiopia is one of the top 10 producers of honey in the world and it is the largest one in
Africa. Mostly, the beeswax is left or thrown away because beekeepers do not bother to
collect and render it into marketable blocks. The absence of organized market channels, lack
of information and lack of smallholders’ access to finance are affecting the promotion and
development of honey and beeswax production and marketing. As a result this study was
conducted to analysis honey and beeswax value chain as a general objective and identifying
socio- economic significance of honey and beeswax and finally identifying factors affecting
honey and bees wax value chain were the specific objectives of the study. Both quantitative
and qualitative data were collected from primary and secondary sources of data. Sample
respondent were the primary source of data. Published and unpublished documents, Keble
official reports, maps and statistical data in the different governmental and non-governmental
offices were the sources of secondary data. Data were collected through observation, semi-
structured personal interview and descriptive statistics such as percentage, mean, graph and
charts. Figures were used for interpretation of the result. The result shows that 85%of the
actors were men. Agricultural and rural development office was major supportive actors and
producers, traders and consumers were the primary honey and beeswax chain actors in the
study area. About 42 % of produced honey was flow from farmers to consumer’s market
channel. Beekeepers use honey as an immediate cash income for household and social
obligation purposes. Lower awareness for beeswax, lack of well organized market, Price of
equipment, poor quality of honey and beeswax produced were the critical factors that need
right solution at right time
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1. INTRODUCTION
1.1. Background of the Study
Ethiopia is one of the countries of the continent, which own big honey production potential. It
is home of the most diverse flora and fauna in Africa. Its forests and woodlands contain
diverse plant species that provide surplus nectar and pollen to foraging bees. Beekeeping is
one of the oldest farming practices in the country. There is an ancient tradition for beekeeping
in Ethiopia, which stretches back into the millennia of the country's early history (Girma,
1998). Of all countries in the world, probably no country has a longer tradition of beekeeping
than Ethiopia (Hartmann, 2004). Ethiopia produces around 23.6% and 2.1% of the total Africa
and world’s honey, respectively. The total volume of honey production in 2011 was estimated
to be 39.89 million kilograms (CSA, 2012). The country’s potential for honey production, the
variety of natural honey flavors associated with the country’s diverse sources of bee forage,
and Ethiopian honey’s desirable qualities, such as low moisture content, have been widely
recognized.
According to Crane, et al. (1990) which was cited at Gem chi, (2014), the beeswax production
in traditional beehives is 8–10% of the honey yield. However, in 2005, Ethiopia produced
about 4300 tons of beeswax (FAO, 2005). This made Ethiopia stand first in Africa and third
in the world. The total honey production of Ethiopia is estimated up to 24000 metric tons;
only a small amount of this is marketed. Besides poor marketing conditions, the main reason
is that about 80% of the total Ethiopian honey production goes in to the local Tej-preparation,
Tej, which consumed as national drink in large quantities (Hartmann, 2004). In many parts of
the world, much of the beeswax produced by bees that could be harvested by beekeepers is
wasted. From the total amount of beeswax produced annually in Ethiopia, only less than 10%
of it is used for export (EEPA, 2012; FAO, 2005). The remaining large proportion of it is
believed to be wasted at different levels. The products obtained from this sub sector are still
low as compared to the potential of the country. Although thousands of tons of honey are
produced every year, it is usually poorly managed and unattractive in appearance. Moreover,
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traditional hive honey is of good quality as long as it is in the hive. Faulty handling, from the
time of its harvest until it reaches to market is responsible for its inferior quality.
According to Crane (1990) which is cited by Edessa, (2005), the type of hives used the
methods of removing and storage of honey play a vital role in the quality of honey. Honey
production and beekeeping are believed to play a significant role in the food security of the
country through honeybee pollination services of major cultivated crops (Melaku et al, 2008).
It is environmentally friendly practice and relatively easy to engage in. This business activity
has the potential to provide a wide range of economic contributions like income generation
from marketing honey and its by-products, and the creation of non gender biased employment
opportunities (Miklyaev et al., nd). Because of its relatively low labor requirements, when
properly handled, beekeeping can coexist almost effortlessly with regular farming activities,
such as growing crops, horticulture production, and animal husbandry. Based on these facts
even though, Debay Telatgen woreda is one of the potential areas of honey production which
accounts 15 percent of the total bee colonies and 17 percent of the total honey production in
the Amhara region (Agricultural Bureau of Debay TelatgenWoreda, 2014).
Even though Ethiopia has good climatic condition for honey production and endowed with
large bee colonies, there are many challenges which make the sector less beneficiary
compared to other countries. Dependence on traditional and low technology input, poor pre
and post-harvest management, inadequate extension services and poor marketing
infrastructure are affecting the promotion and development of honey and beeswax production
and marketing (Crane, 1990). Furthermore, lack of smallholders’ access to finance
contributeto inhibiting the adoption of improved technologies for honey production (Melaku
et al, 2008).
Poor quality, limited supply in the face of high local demand entailing higher domestic
prices, coupled with the absence of organized market channels and lack of information have
made Ethiopian honey uncompetitive in the international market (SNV,BOAM,2009). Lack of
well-organized honey and bees wax market for producers, lack of market information are the
core problems for small-scale producers to actively participate in hone and beeswax value
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chain (Assefa, 2009). Only a limited proportion, may be at most one-half, of the world’s
production of beeswax comes to the market, the rest being thrown away or lost (Crane,
1990). From the total amount of beeswax produced annually in Ethiopia, only less than 10%
of it is used for export (EEPA, 2012; FAO, 2005). The remaining large proportion of it is
believed to be wasted at different levels.Lack of available documents, inadequate researches
and information about honey and beeswax value chain is one of the major factors hindering
the transformation of honey production in East Gojjam Zone particularly that of Debay
Telatgen Woreda. Therefore, this study will be attempted to fill the gaps of information by
analyzing the honey value chain and identifying factors affecting the household use and its
utilization in honey production and marketing in East Gojjam zone specifically in Debay
Telatgen Woreda, to analyze honey and beeswax value chain and to find and recommend
possible solutions for the problems.
1.3 Objectives
1.3.1 General Objectives
The overall objective of this study was to analyze honey and beeswax value chain in Debay
Telatgen Woreda, East Gojjam Zone.
3. What are the factors affecting honey and beeswax production through a chain?
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1.5 Significance of the Study
This study was generate useful information in order to formulate honey and beeswax value
chain guidelines for interventions that was improve the efficiency of honey and beeswax
value chain system. The potential users of this finding was farmers (producers), processers,
traders, government and non-government organizations, that have interest to invest on honey
and beeswax enterprises. Policy maker’s use this study as reference for setting real strategy to
solve the problems.
The second chapter was review of related literature use on the Theoretical and Empirical
uses,and detail information about the topic that discusses concepts and theories related to the
area of the study.
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The third chapter deals with Research Methodology,incuding Descripition of the study
Institutions, Research Design, Time Period, Sampling Design, Data Sources and data
collection method (data gathering instrument ) and Method of Data Analysis.
2. LITERATURE REVIEW
2.1. Basic Concepts and Definitions
Value chain: is the full range of activities including design, production, marketing and
distribution. Businesses go through to bring a product or service from conception to delivery.
For companies that produce goods, the value chain starts with the raw materials used to make
their products, and consists of everything that is added to it before it is sold to consumers
(Hawkes and Ruel, 2011). 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. Moreover, 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 (Johannes, 2005).
Value chain is formed of primary activities that add value to the final product directly and
support activities that add value indirectly (Porter, 1985). Primary activities: activities relate
directly to the physical creation, sale, maintenance and support of a product or service. It
includes: outbound logistics includes activities, costs, and assets related to buying the inputs
and supplies, and inbound logistics like receiving, storing, and distributing Operations include
activities, costs, and assets associated with converting inputs into final product form, such as
production, assembly, packaging, equipment maintenance, and quality assurance. Outbound
logistics include activities, costs, and assets dealing with physically distributing the product to
buyers like warehousing, order processing, order picking, packing, shipping, and delivery
vehicle operations. Marketing and sales are related to sales force efforts, advertising and
promotion, market research and planning, and dealer/distributor support. Service is associated
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with assisting to buyers, such as installation, spare parts delivery, maintenance and repair,
technical assistance, buyer inquiries, and handling complaints.
Value chain analysis: (VCA) is a process where a firm identifies its primary and support
activities that add value to its final product and then analyze these activities to reduce costs or
increase differentiation. It is a strategy tool used to analyze internal firm activities. Its goal is
to recognize, which activities are the most valuable (i.e. Are the source of cost or
differentiation advantage) to the firm and which ones could be improved to provide
competitive advantage. In other words, by looking into internal activities, the analysis reveals
where a firm’s competitive advantages or disadvantages are (Ovidijus, 2013).
According to Kaplinsky and Morris (2001), VCA is study of the “full range of activities
which are required to bring a product or service from conception, through the different phases
of production (involving a combination of physical transformation and the input of various
producer services), delivery to final consumers, and final disposal after use. (Sanogo ,2010) in
addition to the movement of a product from one stage to another and identification of the
actors, firms and their services, also adds analysis of the institutional support to production at
various stages to VCA. Value chain analysis helps policy makers to study different factors
that determine competitiveness of a firm e.g. Quality, price, flexibility, design etc., helping
the entrepreneurs to identify their strengths and weakness (Schmitz, 2005).
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Ethiopia has a substantial potential for apiculture development, with beekeeping being a
traditional important off-farm activity for an estimated 1.7 million rural households (SNV
BOAM, 2010-2011). In addition, it is estimated that private small beekeepers in Ethiopia
own 5, 15 million Bee hives of which the majority is traditional, an estimated 4, 7 million
(CSA, 2009).
Ethiopians use honey in place of sugar to sweeten their foods and to boost their caloric intake.
The average household in Ethiopia is composed of six people, and annual honey consumption
is estimated to be 10 kg per household. Honey in Ethiopia is generally produced as a cash
crop, with yearly sales amounting to 90 to 95 percent of total production. The majority of
honey produced (about 70 percent of the 90 to 95 percent designated for sale) is sold to Tej
houses. The remaining portion is marketed as table honey for general consumption (Phillips
and Tadesse, 2007). Dependence on traditional and low technology input, poor pre and post-
harvest management, inadequate extension services and poor marketing infrastructure are
affecting the promotion and development of honey and beeswax production and marketing.
Furthermore, lack of smallholders’ access to finance contributes to inhibiting the adoption of
improved technologies for honey production. Poor quality, limited supply in the face of high
local demand entailing higher domestic prices, coupled with the absence of organized market
channels and lack of information have made Ethiopian honey uncompetitive in the
international market (SNV BOAM,2009).
Honey in uniformly liquid form is safer from fermentation by sugar tolerant yeasts. Moreover,
most local people also associate coarse honey crystals with adulteration of honey with table
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sugar. For best consumer appeals, mostly the honey should be in a clear liquid form. Storage
situations can retard granulation of honey for 6–12 months as far as the honey is well strained
(Adgaba and Negera, unpublished data).
In many parts of the world, much of the beeswax produced by bees that could be harvested by
beekeepers is wasted. The beeswax is left or thrown away because beekeepers do not bother
to collect and render it into marketable blocks. As a result only a limited proportion, may be at
most one-half, of the world’s production of beeswax comes on to the market, the rest being
thrown away or lost (crane, 1990). From the total amount of beeswax produced annually in
Ethiopia, only less than 10% of it is used for export (EEPA, 2012; FAO, 2005). The
remaining large proportion of it is believed to be wasted at different levels. In Ethiopia, there
are so many factors attributing to this wastage of beeswax including consumption of honey in
crude form and discarding the crude beeswax at every crude honey consuming points and
“tej” (local wine made from honey) makers (Eddessa and Nuru, ,2006).
In Ethiopia, the majority of the crude beeswax is collected by the local tej makers in the form
of the beverage by product called “Sefef. Sefef is produced in a straw form and sometimes
difficult to assume it as a source of beeswax because of its impurities and discoloration.
Beeswax blocks produced from this material are of low quality (in its sensory properties) and
the color is not as light as beeswax sourced from crude honey due to many ingredients used in
tej, like the leaves of plant called “Gesho” (RhamnusPrinoides), and the fermentation process.
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To begin any processing of beeswax, the first step is to separate the honey from beeswax. In
the case of box frame, hives extracting honey leaves the empty combs attached to the frames.
Therefore, the combs can be directly taken to prepare purified blocks of beeswax by scraping
all the combs from the frame and boiling in water. However, crude honey from traditional
hives has more non honey and non-beeswax foreign materials due to poor harvesting practices
(Nuru, 2007). After the crude honey is strained, the beeswax is left with many types of
impurities of pollen packs, cocoon sheath, and propels, dead bodies and parts of honeybees
and hive bodies). As expected, the proportion of these impurities in the beeswax greatly
affects the amount of pure beeswax recovered during rendering.
The amount of pure beeswax produced from crude beeswax is dependent on both the quality
of source material and the techniques used in processing. An amount of crude beeswax
ranging from 5% to 65.6%, with mean of 27.5%, can be recovered from crude honey
produced in traditional hives and collected from beekeepers; while the average percentage of
pure beeswax obtained from crude beeswax deriving from the aforementioned source was
73.6% (Eddessa and Nuru, 2006). According to Holeta bee research center (HBRC), 2012,
Ethiopia revealed that the average pure beeswax yield using three extracting methods (manual
sack extraction method, submerged and solar extraction) was the highest (67.7%) for crude
beeswax sourced from crude honey. The average recovery rate of pure beeswax using these
three techniques was 26.8% for old and dark combs and 25.9% for sefef. However, the
techniques by themselves significantly affected the amount of pure beeswax recovered from
crude beeswax of the three sources (crude honey, old combs and sefef) as manual and
submerged methods yielded 44.2% and 49.6%, respectively compared to solar method that
gave only 26.4% pure beeswax. This reveals the high and wide variations inefficiency in the
existing wax rendering techniques especially for small- scale producers and processors.
Several methods of rendering wax are possible and may be adapted to various circumstances.
Wax can be separated in solar wax melters, by boiling in water then filtering, or by using
steam or boiling water and special presses (Crane, 1990).
Small and medium scale producers and processors the existing inefficient beeswax extraction
technologies are believed to be one of the factors for the wastage of beeswax in Ethiopia the
manual sack pressing method could recover about 34.2% of the crude beeswax content
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sourced from crude honey which is far less than 64.7%, the percentage of the pure beeswax
recovered from the same material by simple machines applying mechanical and hydraulic
pressure developed at HBRC. Similarly, the average pure beeswax recovered from sefef by
the manual sack method was about 25%, while mechanical and hydraulic pressure applying
simple machines could increase this efficiency by 50% more than that of manual pressing
(Eddessa and Nuru, 2006).
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In many cases, adulteration of honey has been a frustrating factor for both the producers and
legal buyers and sellers as the traceability and accountability is far from practicability. The
total volume of exported honey between 2000 and 2008 has been increasing recently 1.5 tons
in 2000, 275 tons in 2010 and more than 730 tons in 2012 (Assefa, 2011; EEPA, 2010 and
2012). Moreover, the export trade of Ethiopian honey has reached more than 2.43 million
USD). The involvement of honey and beeswax processing companies is also an important
factor for the increased export volume. In 2008, 17 honey and beeswax processing companies
were registered the major importers of Ethiopian honey include Sudan, Norway, UK, Saudi
Arabia, Kuwait, Yemen and other European countries and USA (EEPA, 2010, 2012). The
honey price at the domestic market is mostly higher than the international honey price, which
makes honey export less profitable in Ethiopia (Assefa, 2011).
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3. METHODOLOGY
3.1. Brief Description of the Study Area
Location:DebayTelatgen is one of the woredas of east gojjam zone of Amhara region which
is located 320km far from a capital city, Addis Ababa. Debay Telatgen is brodered on the
extreme south by Dejen, on the south west by Awabel, on the west by Sinan, on the northwest
by Bibugn, on the north by Hulet Ej Enese, on the northeast by Enarj Enawga, and on the east
by Enemay: The major town in Debay Telatgen is Kuyi.
Demographics :Based on the 2007 national census conducted by the Centeral Statistics
Agency of Ethiopian (CSA),this woreda has a total population of 128,045, an increase of
28.25% over the 1994 census, of whom 64,102 are men and 63,943 women; 5,010 or 3.91%
are urban inhabittantts. With an area of 626.14 square kilometers. Debay Telatgen has a
population density of 204.50, which is greater than the zone average of 153.8 persons per
square kilometer. A total of 29,043 households were counted in this woreda,resulting in an
average of 4.41 persons to a household, and 28,205 housing units.
The 1994 national census reported a total population for this woreda of 99,840 in 22,060
households of whom of 50,591 were men and 49,249 were women ; 2,162 or 2.17% of its
population were urban dwellers. The largest ethnic group reported in Debay Telatgen was the
Amhara (99.95%). The majority of the inhabitants practiced Ethiopian Orthodox Christianity,
with 99.47% reporting that as their religion, while 3.69 were musilm .
Climate Condition; Debay Telatgen has middle attitude climate 10% cool, 60% dega, 30% wina dega
and rain fail has maximum and minimum 1800mm and 1200mm respectively. And the temperature
has 10ᴼc -25ᴼc.
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collected from each kebele, each respondent was identified accordingly. Then Sample size of
respondents was determined by using Slovene’s following formula.
The sample size of two Kebeles was 81HH. The kebele sampling was followed by farmer
selection during which both small and large-scale honey producers was targeted. However,
more small-scale producers was sampled during the survey due to the fact that the majority of
honey producers are small-scale farmers. 30 honey producers was randomly selected using
systematic random sampling technique.
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3.4. Method of Data Collection
Both structured and unstructured questionnaires was used to collect data on both qualitative
and quantitative information. The structured interview was conducted with the aid of two
questionnaires: producers and sellers. The producer questionnaires was administered to both
small and large-scale producers to obtain information on the socio-economic characteristics of
honey production area, production constraints, and opportunities for expansion, standard of
products, associations and distribution channels of producers. The questionnaire for honey
sellers was administered to retailers and wholesalers at major markets to obtain information
on market outlets and distribution channels of honey, preservation, branding and packaging.
In addition, unstructured interview was used to collect data from local consumers to acquire
information on consumer preferences for honey products.
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4. RESULT AND DISCUTION
This part of study includes all the findings and general information obtained through the
study. Those include demographic explanation of the respondent, exciting production of
honey and beeswax, marketing of honey and beeswax and value chain map of honey and
beeswax in the studied area. The demographic characteristics of respondents also summarized
in terms of age, sex, education level and average experience in honey production.
15-30 8 26.67 4 20 6 20
31-45 12 40 6 30 10 33.33
46-60 6 20 8 40 10 33.33
Table 1 show that about 26.67% of the honey producers were in the age group of 15-30 years,
40% was in the age group of 31-45 years, 20% lie in the age range of 46-60 and 13.33% lie
above 60 years while 20% of honey traders age were between 15-30 years 30%% was in the
age group of 31-45 years, 40% lie in the age range of 46-60 and 10% lie above 60 years and
about 20 % of sample of honey consumers were between 15-30 years old and 33.33% of
sample consumers were between 31-45 years old, 33.33% of them were lie between years 46-
60 and 13.33% were >60 year age.
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men (85%) while marketing is controlled by women (77.5%). The few men (22.5%) engaged
in marketing are those with stalls located in the Debay Telat Gen Woreda areas. and about
60% of women are consumer of honey.
Honey Producers
Honey Sallers
Honey Consumer
16
Honey producers
Honey sellers
Honey consumers
honey producers
honey traders
honey consumers
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4.1.5. Experience in Beekeeping
The level of beekeeping experience is taken to be the number of years that an individual was
continuously engaged in beekeeping activity. Majority (46.7%) of the respondents had about
3-7 years of beekeeping experience (Figure 4).This shows that the activity was introduced or
started in the area about many years ago. Having cumulative knowledge of how to keep bees
is requisite to the ability to obtain process and use information related to the practice. 20%
and 10% of sample producers had about 7-10 and >10years experience for beekeeping
respectively, While the other 20% sample farmers were entered in near years that was <3
years.
producer%)
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apart from the known basic hive tools many of the materials are either non-existent or kept by
quite few number of respondents.
Table 2, Distribution of respondents by annual total honey and beeswax production obtained
from their hives (per individual)
As indicated in the table above sample farmers were produced a minimum of 25kg and a
maximum of 240kg /year, While From 81 sample farmers only 8 farmers produced wax in
small amount with a minimum of 2kg and a maximum of 8kg per year. The total of 350kg of
honey and 34kg beeswax were produced in the studied area .It shows that relative to honey
annually produced, only lower amount beeswax was produced while others was wasted. This
result is similar (MoARD, 2003), Beekeepers do not know the use of beeswax, the rendering
techniques or the existence of market for this product. The beeswax is left or thrown away
because beekeepers do not bother to collect and render it into marketable blocks. The other
reason for wastage of beeswax in the studied area were consumption of honey in crude form
and discarding the crude beeswax at every crude honey consuming points and “tej” (local
wine made from honey) makers this is similar to Eddessa and Nuru, 2006. In the studied are
34% farmers were produced by using modern hive but it is impossible to produce beeswax
rather it needs extra beeswax for its production system. Therefore, it was one reason for
beeswax production to be low.
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4.3. Honey and Beeswax Extraction and Processing
According to the results of this study, about 65 percent of the beekeepers in Debay Telat Gen
Woreda dealt with crude honey, which is obtained by breaking honey combs into smaller
pieces by hand or stirring with a stick. About 69.2 % of the interviewed beekeepers in study
area said that they are straining their honey using clothe, sieve and hands; while 30 % of
respondents sold crude (with wax) and 0.8 % of the interviewed beekeepers strained their
honey after boiling due to lack of know- how and lack of processing materials.
4.4. Honeyand BeeswaxMarketing Channel
According to Mendoza (1995), marketing channel is the sequence through which the whole of
honey passes from farmers to consumers. The analysis of marketing channel is intended to
provide a systematic knowledge of the flow of the goods and services from their origin
(Produce) to the final destination (consumer). During the survey, the following honey
marketing channels were identified.
Farmers
Wholesalers
Honey collectors
Transporters Retailers
Exporters
Processor
Consumers
As can be understood from the figure 5, the main receivers from the farmers were consumers,
honey collectors, wholesalers and processors .this indicates that mostly honey were flow from
farmers to consumers for consumption propose in the study area. The honey collectors
procure a significant amount of honey and store it with inappropriate storage materials and
they stay for Consumers to come to buy the honey, rather than supplying to the nearby
20
markets. Processers receive honey directly from producers and they added some value like
Teji, and sold to consume again. There were few Teji processers in the study area those did on
this business. Generally, the channel analysis of honey marketing of the study area is found to
be a very short route. The market channel of beeswax was very short because in the study area
beeswax was very small and it flows from producers to producers and from producer,
processer and again to producers. There were not adequate for extra propose like for cosmetic
and Tuaf. From producers to producers means that, in the study area there were traditional and
transitional hives that cloud produced beeswax. But at the same time there were other
farmers having modern bee box that needs beeswax rather than producing it. Producers who
had intermediate production system were produced beeswax from transition and tradition hive
and use for modern hive. However, demand of beeswax for modern bee hive was relatively
higher than available beeswax even thought they produce.
4.5.Buying and Selling of Honey and Annual Income Earned By Respondent
According to the data, farmers share a minimum of 750 birr and a maximum of 12000 birr,
with an average income of birr 4954.53 from hive, while they had an average of birr1221.42
from beeswax. Traders have got a minimum of birr 2400 and a maximum of birr 3000 from
Honey, while from beeswax they had a minimum of birr 1200 and a maximum of birr 1800
with an average income of birr 1466. The relative benefit that both farmers and traders .shared
from beeswax was higher. However, it didn’t indicate that beeswax production was high
rather it was because of its price was very high per kg about birr 300.
21
Table 3, Distribution of sample farmers by annual total gross income earned from the sale of
Honey and beeswax
22
treatment. Additional benefits from beekeeping are associated with the purely biological
nature of bees’ activities, such as plant pollination and conservation of natural flora.
Lower Awareness for Beeswax: in the study area farmers and consumers those produce and
consume honey were lake of knowledge about beeswax. They simply extract honey from the
wax and left it away. Interviewed consumer answered that they bought crude honey but
simply use honey and avoid the remaining part called beeswax.
Lack of well organized market: in the area rural collectors were few and weak participant
producers went to long distance to sale their products mostly to retailers and processers when
they want for immediate cash. At the same direction in the sampled kebele when consumers
want to buy honey they went to individual honey producer`s house unless they couldn’t get it.
That entire problem was due to absence of organized market access in the study area.
Weak Linkage between Actors: The linkage of producer and traders to other traders were
also weak. This leads to decreasing chance of interring to the computational market. Since
weak linkage of actors to computational market producers produce in small amount and run
the system additional work rather than developing to higher level. At the same level traders
also hold a very small amount of honey for only consumption of the area rather than
transporting to the other place since supply of honey was limited Since the linkage was weak
available supportive organ was also weak because the activity of beekeeping in the area was
not well known. In the study area honey and beeswax chain was very short since it was only
within the area. But the shorter of the chain could decrease the motivation of chain actors
since they couldn’t have any information about the global market of honey and beeswax.
Unless well organized market the chain actors couldn’t inform the price of honey and
23
beeswax. Due to this reason there were price fluctuation between the chain that causes
unbalanced benefit sharing because one actor share higher benefit than the other.
Price of Equipment: sample farmers reported that, the price one modern box rises from birr
340 to birr 300 within two years. It was very difficult to buy this hive for small farmers.
Honey needs improved honey extractor machine to separate it from hive. But as they said, it
was very expensive to bought .this the main reason for decreasing quality of honey. Modern
bee box needs extra beeswax trough the production system. But the price of beeswax was
very difficult to bought since its price was above birr 250 per kg. This was a result of wastage
of beeswax produced from traditional and transitional honey production. Even if there were
modern artificial beeswax but the price was very high.
Credit Access: since initial equipments were expensive small farmers needed additional
capital to buy those equipments. There were different organs providing credit service for this
purpose but their interest was very high.
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5. CONCLUSION AND RECOMMENDATION
5.1 Conclusion
The main aim of this study was to analyze Honey and Beeswax value chain of Debay Telat
Gen Woreda in East Gojjam Zone. Honey has been identified in the district as a cash income
generating commodity. To emphasize the study, different related topics have been
studied .Honey and beeswax chain actors have been identified with their respective functions.
Socio-Economic importance of honey and bees wax and different factors occurred in the
chain has been studied in the study area. In the study area 90% of men’s were participate in
honey value chain. According to the sample data, 101.66kg/producer of Honey was produced.
it was only for the Woreda`s community consumption. However relative to honey only a very
few amount of beeswax was produced since based on the sample respondents most of
beeswax was wasted.
The market chain of honey and beeswax was weaken and limited only within the District.
Due to this limitation, participation of chain actors in high computational market was
weakening. Farmer to consumer market channel was the strongest chain covers 42% of honey
market. Few chain actors existed, in the market and they perform it as an additional work,
there were not specialized actors in the entire chain. Honey production helps the society as an
immediate cash income and as job opportunity. According to the study there were many
factors influencing the effectiveness of value chain actors. From those factors lower
awareness for beeswax, Price of equipment, poor quality of honey and beeswax produced and
price of honey and beeswax were the critical factors that need right solution at right time.
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5.2. Recommendation
Possible recommendations that could be given on the basis of the study so as to be considered
in the future intervention strategies which are amid at the promotion of honey and beeswax
value chain of the study area were as follows:
Agriculture and Rural development office and any supportive body should be increasing
the distribution of improved box hives accompanied by safety protective materials for
farmers of the district.
Education develops the willingness of the beekeeper household to allow new technology
and information which in turn widens their readiness to produce more and thereby raises
honey marketable supply. Accordingly, the district Agriculture and Rural Development
and other Agriculture development partners should give adequate practical supported
beekeeping training to the farmers.
Market information is an important component for improving production system and
better flow of value chain. The availability of timely and precise market information
increases producers’ bargaining capacity and motivate them to enter in the competitive
market. Therefore, marketing organizations such as cooperatives and other honey
marketing institutions should communicate the honey producers, traders and the ultimate
consumers so that the chain actors can share reasonable benefit.
As a result of the study Beekeeping is culturally defined as a men’s occupation. Therefore,
yang graduates and other supportive organs should play a better role to encourage women
to participate in this sector.
Agricultural sectors and other supporting institution should provide adequate training to
upgrade the awareness of chain actors to keep the quality of Honey and beeswax produced
and to minimize the wastage of beeswax.
Increasing the linkages of the chains to create well computational market for development
is important, therefore, the value chain actors should be upgrading their linkage.
26
6. REFERENCES
Adgaba N unpublished: Study on means of maintaining finely and uniformly granulated table
honey. Holeta Bee Research Center, progressive report, 2009.Holeta, Ethiopia.
Assefa M 2011: Pro-poor value chains to make market more inclusive for the rural poor:
Lessons from the Ethiopian honey value chain. Danish Institute for International
Studies, Copenhagen,Denmark. Pp. 35– 50.
Belie T 2009: Honeybee production and marketing systems, constraints and opportunities in
Burie District of Amhara Region, Ethiopia. A Thesis Submitted to the Department of
Animal Science and Technology, School of Graduate Studies. Bahir Dar University,
Bahir Dar.
Crane E 1990: Bees and beekeeping: science, practice and world resources. Heinnmann
Newness, London. Pp 614.
Dyce.J 1975: Producing finely granulated or creamed honey. In: Honey: a comprehensive
survey, pp: 293–325, (Crane, E. ed). Heinemann, London.
Edessa Negera, 2005.Survey of honey production system in West Shewa Zone. In proceeding
EEPA 2012: Ethiopian export data. Ethiopian Export Promotion Agency. Addis Ababa,
Ethiopia.
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FAO (Westlake).2005. Addressing Marketing and Processing Constraints that Inhabit Agri
food Exports: A guide for Policy Analysis’s and planners. Agricultural Service
Bulletin 160.FAO statistical year book,2014
Johannes Agonafir, 2005. Strategic intervention plan on Honey & Bees wax value chains
Kaplinsky, R. and M.Morris (2001). A Handbook for Value Chain Research, Prepared for
the. International Development Research Centre (IDRC ).
Krell, R. 1996. Value added products from beekeeping. Agricultural Services Bulletin No
124. Food and Agriculture Organization of the United Nations: Rome, Italy.)
Miklyaev M., P.Jenkins and R. Barichello, nd. Honey production in Ethiopia: a cost-benefit
analysis of modern versus traditional beekeeping technologies: JEL: D13, D31, D61,
D62.
Mengistu, A.2011. Pro-poor value chains to make market more inclusive for the rural poor:
Lessons from the Ethiopian honey value chain. pp. 35-50. Danish Institute for
International Studies, Copenhagen, Denmark
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MoARD 2003: Honey and Beeswax marketing and development. in development, M. O. A.
A. R. (Ed.) Plan 2003. Addis Ababa, Ethiopia. mologies, Alexandria.p.1.
Nuru, A. 2007. Atlas of pollen grains of major honeybee flora of Ethiopia. Holeta Bee
Research Centre. Commercia Printing Enterprise. Addis Ababa, Ethiopia. pp 152.of
South West Ethiopia. Paper submitted to the conference: Bridge Scales and Episte of
the 4th Ethiopian Beekeepers Association (EMA).Posted on the website
Transformational Logistics, 15 November 2009.
Porter, M. 1985. Competitive Advantage.pp 11-15. The Free Press. New York.
Schmitz,H. 2005. Value Chain analyses for Policy Makers and Practitioners. Geneva,
International Labor Office.
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Driven Value Chain Development.
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7. APPENDIX
Objective of the questionnaires
The main purpose of the questionnaires to gather and investigate the pertinent data to
conduct the educational Research at Bachelor Degree Level. Therefore, Your answer
for each questionnaire is highly valuable to get important data and information. Your
Responses are highly confidential and it is used only for an academic purpose.
Instruction:- Dear Respondents, Don’t write your name, but put it ‘’x’’ as your answer
inside the box for close ended questionnaires and write your short answer on the space
provided for open ended questionnaires.
30
Characteristics of the respondents
Personal profile
1) Age of household ___________________
2) Sex of household head: 1.male 2.female
3) Education status; 1. Illiterates 2. Read & Write 3. Elementary 4. Secondary
4) Marital status: 1.singl 2.married 3. Divorced 4.Widowed
31
8) For whom do you sell your honey and bees wax? 1. Local assembler 2. Retailer
3 wholesaler 4. Consumer 5. Teji processor.
9) What are the impacts of this problem on your over all activities?
1. Decrease profit 2. Decrease motivation 3. Lead to be out of the business
4. If others specify them____________________
1) What are the main products you are dealing with? 1. Honey 2. Beeswax 3. Both
4. If others specify them___________________
2) What is your objective in relation with this business you engaged in?
1. Profit maximization 2. To sustain living
3. To provide service to consumers without any profit
4. If others specify__________________________
3) When do you get large volume of supply? 1. During peak period (harvesting time)
32
4) Who are your major suppliers? 1. Collectors 2. Producers 3. Retailers 4. If others
specify them
5) Who are your customers? 1. Retailers 2. Exporters 3. Consumers 4.teji processers
and hotels 5. Exporters 6,If others specify them
6) Have get adequate credit service? 1. Yes 2. No
7) What are the socio-economic benefits have you get from honey and bees wax?
1, income generation 2, immediate cash problems for surviving
3, for preparing Teji 4, better employment 5, for earning foreign currency
6, if others specify them__________________________________
8) Which problems you are facing? 1. Poor Quality honey and beeswax supply 2. Weak
linkage between the chain 3. Price fluctuation 4. Limited supportive organ 5. If
others specify
5) What are the socio-economic benefits have you get from honey and bees wax?
33
1, income generation 2, immediate cash problems for surviving
3, for preparing Teji 4, better employment 5, if others specify them______________
6) What are those activities you carry out as one actor of honey and beeswax value chain?
1) Buying certain amount of honey and /or beeswax directly from producer
2. Adding some value on the product purchased 3. Providing suppliers with
information on supply and quality issue 4. If others specify them
7) What are the factors you faced for consumption of honey and beeswax?
1. High price of honey and beeswax 2. Poor quality of honey and beeswax
3. Substitute of product 4. Poor market access 5. If others specify
them_____________
34