MICRO-ENTERPRISE HONEY

A Livelihood Development Strategy for Earthquake

Affected Pakistan

September 2006

Cesar FloresAgribusiness Development Specialist East-West Management Institute 575 Madison Ave 25th Floor New York, NY 10022

Phone: 212-843-7660 Fax: 212-843-1485 E-mail: cesarflor@yahoo.com

Executive Summary

This report provides a concept for promoting beekeeping based enterprises to improve the livelihoods of people living in the earthquake affected region of Northern Pakistan.

Earthquake affected beekeepers

Traditional beekeeping practitioners were severely affected by the massive earthquake of October 2005. Some of Pakistan’s richest honey producing areas are located within the earthquake affected zone. Because beehives are structurally incorporated into the walls of houses, a large number of these hives were destroyed along with the houses they were a part of. Additionally, there are claims that many remaining bee colonies fled the surviving homes after the initial shocks.

Objective:

Upgrade beekeepers from traditional beekeeping to micro or small enterprise honey production. There are an estimated 10,000 people practicing traditional subsistence beekeeping in the Northwest Frontier Provinces and Northern Areas in Pakistan. Many of these people can successfully enter the market economy with commercially viable honey products on a micro or small scale, if they have access to improved beekeeping inputs and markets. A family keeping 5 stationary beehives can earn 11,250 PKR (188 USD) or more per year if managed professionally.

Intermediate Outcomes:

1. Create enterprises specializing in the seasonal production of bee packages or nucleus

hives and queens for sale to honey producers

2. Create or support enterprises specializing in manufacture of equipment and sale of supplies for micro-scale beekeepers.

3. Form honey processing and marketing associations

4. Provide technical and marketing extension to develop added-value products

Program Components Anticipated ResultsTarget Community: Landless households with traditional

beekeeping experiencePotential Beneficiaries: 5,000 Women in rural villages

Livelihood Outlook: Sustainable income from honey and bee product sales within 18 months

Beekeeping as a livelihood activity

Livelihood constraints in the region include:

Rural communities are already maximizing natural resource exploitation. Pressure on forests for grazing, cropland, timber and fuel wood are approaching unsustainable levels. Landholdings are small and land tenure complications are common.

Most agriculture in the region is in low-value subsistence crops. There is relatively little agricultural production of high-value or cash crops among the most vulnerable.

Mountain villages are distant from markets and road transport is slow and unreliable.

Women have limited socially acceptable work opportunities. Seasonal labor migration is common among men.

Advantages of beekeeping include:

A beekeeping tradition exists in the region. Establishing or upgrading beekeeping enterprises is likely to be acceptable to beneficiaries.

Beekeeping does not add pressure to natural forest resources, unlike grazing, field crops or timber based enterprises. In fact, beekeeping contributes to local ecosystem health.

Land ownership or rental is not required for honey production.

Low costs. One box and one colony of bees is the minimum investment. Beekeeping is fully scalable, from 1 to 200 hundred hives can be managed by one family.

Low labor requirements. 5 beehives can be professionally managed with an average of 35 minutes per day in season. Beekeeping is appealing work for women. It is home-based, and fits culturally sensitive clothing requirements.

Honey is an easily storable and transportable product. This high value/per kilogram product with an infinite shelf life overcomes the transport difficulties in the mountainous regions, even remotely located households can participate.

Honey has a good market both domestically and internationally. Added-value processing is possible, even at the household level. The international market will absorb surpluses, and essentially all honey can be sold.

Traditional beekeepingThe Northwest Frontier Provinces are home to an ancient system of beekeeping unique to the Himalayas and practiced in India, Nepal, Pakistan and Afghanistan.

Traditional Himalayan beekeeping is distinguished from modern commercial beekeeping by two unrelated characteristics, the “house hive” and the “Asian honeybee”.

Photo 1. Traditional “house hives”

Bees are traditionally kept in “house hives”. These are empty cavities installed into the East side of homes (photo 1). The inner side of the hive opens into the house and is sealed with a wooden board and mud plastering. On the outside, the hive has a small hole for a bee entrance. Management of these hives is not possible, and in fact knowledge of bee biology or behaviour is not required in this system. Wild bee colonies are installed or simply move into the hive on their own. Honey is harvested from inside the home at appropriate intervals. The entire colony of bees eventually abandons the hive or perishes when weakened by disease or starvation. Eventually, new wild stocks are reinstalled and the cycle is repeated. “House hives” have fixed combs without frames. Movable frames allow the modern hive beekeeper to inspect and manage hives by manipulating the frames of comb (figure 1).

Advantages of the traditional House Hive Disadvantages of the traditional House HiveBee knowledge not required Uncontrolled disease causes colony death or hive

abandonmentNo inputs needed Starvation during floral dearths, causing colony death or

hive abandonmentHives are secure from theft and predators Honey production limited from inability to manage bees

in traditional house hivesGood temperature control. Hives are warm in WinterFigure 1.

Traditional beekeeping in the Northwest Frontier Provinces has historically relied on the Asian honeybee (Apis Cerana), which is native to the region. The European honeybee, (Apis Mellifera) has only recently been introduced. The two species have different disease susceptibility profiles and the introduction has forever altered the local ecology of beekeeping, as both species have become cross-infected with diseases (Figure 2). The greatest advantage of the European honeybee is its lower swarming and absconding tendency.

Honey quality and yield from both species can be equivalent, when managed professionally. Diseases and pests are controllable in both species when professionally managed, only different diseases are prevalent.

Advantages of the Asian honeybee Disadvantages of the Asian honeybeeCo-evolved and well adapted to local flora Tendency to swarm and abscond from hivesSomewhat tolerant of major bee parasites, Varroa and Tropilaeps mites

Susceptible to Thai Sac Brood Virus, and Wax moth damage

Wild stocks available at no cost Figure 2.

Commercial beekeepingThere are an estimated 125,000 commercial beehives in Pakistan, and the total production of honey was 4,647 tons in 2002. Many operators are migratory and able to take advantage of the North-South orientation of the country and its range of climatic zones. They move their bee yards at least twice a year, but usually three times. Transportation is a significant input and ultimately limits the total number of colonies that can be deployed. 50-200 hives in a single operation is typical. Commercial beekeepers primarily use European honeybees and modern hives (photo 2).

Photo 2. Commercial migratory beekeeping operation

Honey Market

Export MarketThe strategic crop for Pakistan producers is Sidder honey (Zizyphus spp.), driven by very high demand in the Middle East. Buyers in Saudi Arabia, UAE and other destinations prefer to deal with Muslim suppliers and have established strong links to Pakistani exporters. Sidder blooms in September and October in the foothills, plains, and the sub-coastal area, bringing practically all migratory beekeepers to this source in season. 2,000-4,000 tons of honey is exported annually. Most is shipped bulk in 50 Kg. containers to be repacked by the importer.

Domestic Market Honey is appreciated and consumed in Pakistan, primarily among the urban middle-class in Karachi, Lahore and Islamabad. Two large honey packaging operations located in Rawalpindi dominate the domestic supply for packaged honey. They produce professionally packed product lines with quality and prices comparable to imports from Western Europe. A fair amount of honey is imported. Shelf space in grocery stores are at least 50% given to US, Canadian and German imports. Undifferentiated honey products make up the bulk of offerings in bazaars and small shops. These products are unlabeled and primitively packed in unsealed containers.

An emerging market for local honey exists in some villages in the earthquake affected region, particularly in the Swat Valley. There are shops that specialize in local honey and largely serve the tourist trade (photo 3). These shops occasionally sell out of honey, during the summer tourist season. This sector represents an outlet opportunity for new producers. Currently, product quality is variable with little differentiation in packaging. Branded products here with regional identification could develop a regular clientele and eventually capture the larger urban markets.

Photo 3. Local honey shop

Beekeeping Inputs

Professional EquipmentCommercial beekeepers in Pakistan rely on unimproved European honeybees and locally manufactured modern beekeeping technology. They use standardized equipment, primarily the Langstroth hive design. There are a few markets near Peshawar supplying commercial beekeepers with a wide variety of beekeeping equipment.

Equipment PriceBee Box 2000 PKR (33 USD)Wax Foundation 120 PKR (2 USD_Smoker 30 PKR (5 USD)Extractor 3000 PKR (50 USD)

Figure 3.

SuppliesMedications from China predominate. Some chemical applications banned by the EU and North America are widely available and in use by Pakistan beekeepers, including Sulphur. Repercussions from this form of contamination have not seriously affected the Pakistan honey industry, unlike in China. This may be due to the low level of inspection and governance by participants in domestic and Middle-East destination markets. The presence of these chemicals in Pakistani honey puts the industry at risk of rejection in the international marketplace, and can have public health consequences domestically.

LivestockBees are replenished from the wild in the traditional system. Although at no cost, this technique is unreliable and a limitation for a family trying to start a micro beekeeping operation. This traditional practice will not transfer well to an organized micro-enterprise honey industry. No commercial production nor organized trade of live bee stocks exists in Pakistan. Commercial beekeepers, are forced to source bees from other beekeepers through their personal contacts when needed. Packages of live bees have been imported from India and recently from as far away as Australia, at very high cost. Unlike most honey producing and exporting countries, there are no specialized queen breeders providing quality queens with improved genetics for the industry.

The lack of readily available replacement bee livestock and queens is a strong limitation because of the increasing incidence of disease, risk of losses from over wintering, and particularly from the high absconding tendency of native Asian honeybees.

Post Harvest HandlingThe devastating practice of local honey adulteration is very common. This is the single most limiting factor in the domestic honey market in Pakistan. Adulteration and falsification is widespread and affects both commercially and traditionally produced honey. Honey quality is virtually destroyed in the process. Much of the adulteration is visibly evident and many informed consumers have such a high level of suspicion that they avoid honey purchases altogether. There is more trust for imported honey, forcing consumers to pay higher prices and to reject the otherwise preferred local product.

Traditional beekeepers suffer from a lack of equipment and knowledge in order to process high quality bee products. Problems include:

Inefficient extraction of honey from honeycomb Damaging honey quality from cooking at high temperature Excessive moisture content Discarding valuable beeswax Lack of standardized packaging

Value Chain AnalysisConstraints in the honey production value chain are:

1. Lack of commercially available bee colonies and well-bred queens. There are no specialized producers offering bee colonies for sale in Pakistan. There are no commercial queen breeders. Both commercial and micro scale beekeepers would benefit from bees genetically bred to fit the local climatic conditions and specific needs of the beekeepers. Sustainable beekeeping requires a source of live bees and queens to replace losses as well as to expand operations quickly when conditions are favorable.

2. Limited availability of beekeeping supplies and equipment suitable for the micro-scale beekeeper. Although there is manufactured beekeeping equipment available, it is directed to the migratory commercial industry. The micro-enterprise honey sector has specific equipment requirements and if the industry grows in the earthquake affected region, demand for equipment and supplies will increase.

3. Inadequate post-harvest processing. Traditional honey processing techniques are not transferable to commercially viable honey production, even on a small scale. There is no substitute for proper handling of honey during the extraction, filtering and packaging processes. Also, adulteration is a counterproductive process that ultimately reduces profits and opens opportunities from more honest competitors.

4. Undeveloped market for locally produced honey and other bee products. An opportunity exists for micro-scale beekeepers to produce high-quality local honey products, professionally packed and labeled with geographic origin identification to appeal to the tourist trade and eventually the urban markets. Consumers are currently underserved by local producers, and often buy imports or inferior quality adulterated honey.

5. Training not a constraint. Local and international NGOs as well as government agricultural institutions are currently involved with beekeeping in the earthquake affected

region. Most of these activities center around offering simple training in beekeeping at the introductory level. Unfortunately, learning about beekeeping will not generate honey without the required inputs, like livestock and equipment, and income will not be generated without effective marketing of final products.

Fig. 1 Honey Value Chain

Recommendations to strengthen the supply chain and stimulate micro-enterprise beekeeping A key factor in creating a sustainable system for high-value beekeeping is the existence of a private sector supply chain located in the local communities to deliver inputs to beekeepers at fair prices.

1. Create enterprises specializing in the seasonal production of bee packages or nucleus hives for sale to honey producers. This private sector activity can be started by a few micro or small scale beekeepers shifting their aim from producing honey to producing bees. With a growing beekeeping industry, selling bees may be as or more profitable than selling honey.

2. Create enterprises specializing in queen breeding of Apis Cerana and Apis Mellifera. This is fairly technical and will require an investment of time and training from the people who enter this occupation. Over time, improved bee genetics will enhance the productivity of beekeepers through reduced bee losses and increased honey production.

3. Create or support enterprises specializing in manufacture of equipment and sale of supplies for micro-scale beekeepers. This is a key component to upgrade beekeepers from the traditional system to micro-enterprise honey production. Equipment appropriate to micro scale beekeepers include smaller honey extractors, wax foundation processing, and locally made boxes for both species of bees. Supplies include legal and sustainable pest and disease controls, as well as jars and packaging supplies. This activity could be located close to the beekeepers’ operations.

4. Form honey processing and marketing associations. Simple and informal groups clustered at the village level can jointly own and share processing equipment or sell under a unified brand. Collective processing can allow for improved and standardized techniques to be controlled that preserve honey quality. Small local brands producing unadulterated honey and adding value can eventually overcome resistance and distrust from consumers and gain import substitution market share. Marketing added-value honey locally will return more earnings to the beekeepers than selling in bulk at the urban markets.

5. Provide technical and marketing extension to develop added-value products. Niche markets based on varietal honeys and other bee products can be developed:

Medicinal “Baiker honey” (Justicia adhatoda) is produced from a common evergreen shrub flowering in December – April in the sub-mountainous areas. Honey from this flower is used by villagers as a powerful expectorant and antispasmodic.

Honeycomb is a high-value honey product with many different packaging options. It has the significant advantage of guaranteeing quality because it is impossible to adulterate or falsify. This product may become instrumental in regaining customer confidence in local honey if marketed properly.

Beeswax is an under exploited resource in traditional beekeeping. Many beeswax based added-value products are possible. Even beeswax in its bulk form has a higher price per kilo than bulk honey.

Bee pollen, bee propolis and royal jelly are currently completely unexploited in both the commercial and traditional systems and have potential markets in Pakistan.