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1. Background

Tanzania has increased the amount of honey produced from 4,860 tons (2001) to 9,380 tons of honey in 2012 with a value of TZS 49.76 billion (USD 30,160,000). This is an increase of 93%. Likewise, the amount of bee wax produced increased from 324 tons (2001) to 625 tons of honey in 2012 with a value of TZS 6.08 billion (USD 3,687,500). This is also a 92% increase. These quantities are only 7% of the existing potential in the beekeeping industry. 

Tanzania has the potential of producing 138,000 metric tons of honey and 9,200 metric tons of bee wax with a estimated potential value of respectively TZS 133.3 billion (or US$ 80,787,878.78) and TZS 35.5 billion (or US$ 21,515,151.51) annually. 

More than half of honey produced in the country is consumed locally as food. The prices in the rural areas, range from USD 1.5 to 2.5 per kg. In cities, range from USD 2.7 to 4.2 per kg. Bee wax is only for a small fraction consumed locally. In the rural areas 1kg of beeswax is selling between 2.5 to 3 USD. 

The main buyers of Tanzania’s honey are EU, Oman, UAE, Kenya, Rwanda, Uganda and Iran. The main buyers of beeswax are Japan, USA, and Germany. The prices of honey for export range from US$ 1.8 to 2.5 per kg (TZS 2970-4125/kg). The price of beeswax for export range from US$ 4.5 to 5.1 per kg (TZS 7425-8415/kg)

Export of Honey and Bee wax (in kg) in the Year 2007-2011

Product 2007 2008 2009 2010 2011
Honey(kg) 156,012 612,960 485,842 428,825 578,783
Beeswax(kg) 320,660 580,154 556,000 568,260 548,325

 Source: Paper presented during Api Expo Africa 2012 in Addis Ababa Ethiopia by Gladness Allan Mkamba , Ministry of Natural Resources and Tourism Tanzania, 2012

 

 2. Honey and Bee wax Production and Export Statistics

Export Weight, Value and Destination Markets for Honey and Bee wax (in kg and in TZS) in the Year 2011

January - December, 2011
Product Net weight(kg) Value (TZS) Average value per kg Distination Countries
Honey 578783 2, 742,129,443 3.2 Germany, Kenya,Netherland,Oman,Rwanda,Uganda, S/Africa
Bee wax 548325 4, 880,089,104 5.9 DRC, Germany, Japan,USA,Mozambique

 Source: Paper presented during Api Expo Africa 2012 in Addis Ababa Ethiopia by Gladness Allan Mkamba , Ministry of Natural Resources and Tourism Tanzania, 2012

 

Possible Location of the Beekeeping Industry & Production of Honey and Bee wax

Location Available Infrastructure
Zone Region
Western Tabora, Rukwa ,Shinyanga Kigoma Good roads and Central Railway line network with easy access to large markets in the Lake Region countries
Southern Lindi, Iringa, Ruvuma, Mbeya TAZARA railway line and DarTunduma Highway and the proposed Mtwara Corridor provide easy access to a potentially large market in Zambia, Malawi, Mozambique and other Southern African countries. There is also a deep-sea port at Mtwara.
NorthEastern Kagera, Manyara, Tanga, Kilimanjaro, Arusha Easy export routes to Europe and other countries including Kenya and Uganda. Access to Kilimanjaro International Airport and a deep sea port at Tanga.
Central Singida, Dodoma Access to Central Railway line leading to export markets in the DRC, Rwanda and Burundi.
Eastern Coast, Morogoro, Dar es Salaam Ready access to export infrastructure including the deep sea port of Dar-es-Salaam and the Dares-Salaam International Airport, as well as access to a large and expanding domestic market for honey

 

  3. Potential for Investment in Beekeeping Industry

     (Honey and Bee wax Production , Processing and Marketing Infrastructure) .

 Currently the Tanzania has 38.8 million ha of forests and woodlands available. Tanzania has both stinging and non- stinging honeybees coupled with existence of    indigenous knowledge in beekeeping.

 3.1. Increase in Production and Expansion of Area for Honey and Bee wax Production and Intensify Honey and Beeswax Production and Extraction (towards Higher Yield).

  • Preserve places with natural trees suitable for placement of bee hives
  • Open up large scale apiaries in high potential areas & conservation areas
  • Effective beekeeping extension services to beekeepers, honey processors.
  • New technology, like top beehives; Better refine and extraction equipment.
  • Provide equipment and tools for improved honey and bee wax production such as high efficiency beehives, protective clothes & gear, sieves, filters, proper containers, etc.
  • Training of beekeepers, especially on quality standards (TBS/TFDA) and possible contamination of final products and traceability.

 

3.2.Potential for Investment in Extraction and Processing of Honey and Bee wax

  • Manufacturing and distributing beekeeping equipment and tools to improve the processing operational efficiency.
  • Establishing (large-scale) beeswax processing plants and honey packaging factories.
  • Training of processors of honey and bee wax nationwide.
  • Certification of quality honey by TFDA/TBS could improve the quality of produce and gain the trust of potential buyers.
  • Effective processing training to honey and bee wax processors, manufacturers and users of beekeeping extraction and processing equipment.
  • Improve management and accounting on efficiency in honey and bee wax extraction and processing, and the rational hire and use of manpower.
  • Entrepreneurs with improved processing facilities should also invest in proper containers, grading and labeling of their refined final product to support marketing efforts.

 

3.3. Potential for Investment in Marketing of Honey and Bee wax

  • Clean refined honey in proper labeled containers with TFDA/TBS certification, are highly demanded in the market due to its natural origin (‘healthy organic produce’)
  • To a lesser extent, this also applies to bee wax.
  • Proper labeling and branding of quality honey could favor certain (export) markets.
  • Develop wholesale export markets for honey and beeswax.
  • Develop retail markets for bee products in the domestic market.
  • Appropriate processing and packaging facilities for bee products.
  • Effective training in marketing of honey and bee wax products.
  • Organize a ready market for bee products like honey and bee wax (in Tanzania and abroad).
  • Small processors , such as women groups, should coordinate among them on a marketing strategy, as each small processor cannot afford to do a marketing campaign on its own.
  • Good marketing strategies have to be thought off before investing in marketing infrastructure and employees: storage, containers, grading and labeling, market research, a sales related salary and incentive structure (bonus).

 

3.4. Implementing the Traceability System for Beekeeping Products

  • The Government trained about 500 beekeepers and beekeeping extension agents on traceability.
  • Few groups and associations have started to implement the system.
  • Tanzania developed honey standard since the year 2006 which comply with the EU and Codex Standards.
  • Processing groups, cooperatives, exporting companies are liable to comply with the standard.
  • Developing and implementing chemical residue monitoring plan.
  • Tanzania submitted to the EU chemical residue monitoring plan for honey since 2001 to get permission to sell honeyin the EU member countries.
  • The Government has been using average of TZS 60 mil (2011/2012 - 64mil) to collect samples of honey yearly and send to QSI laboratory in Germany to be analysed and submit the report of analysis to EU.

 

 4. Financing the needs of the entrepreneur in the Honey and Bee wax industry 

Entrepreneurs / beekeeping groups may seek financial assistance for:

  • The purchase of quality bee hives and other inputs for honey and bee wax production.
  • The purchase of processing equipment, tools and packaging materials.
  • To improve the efficiency in honey extraction and the production of bee wax.
  • Purchase of newer / higher quality processing machines.
  • The modernization and or expansion of production and marketing facilities.
  • Purchase transport units and other relevant transport and processing equipments.
  • Grading, packaging, labeling, branding, and other marketing equipments.
  • Construction and/or expansion of storage facilities.

 

5. How can PASS help Farmers in the Honey and Bee wax industry

Entrepreneurs / bee keeping groups may seek financial assistance for:

  • Through feasibility studies and business plans PASS can assist entrepreneurs access to bank loans (financial linkages).
  • Capacity building of bee keeping groups and entrepreneur management skills.
  • The purchase of quality bee hives and other inputs for honey and bee wax production.
  • The purchase of processing equipment, tools and packaging materials.
  • To improve the efficiency of honey extraction and production of bee wax.
  • Purchase of new / higher quality processing machines (tools & equipment)
  • The modernization and/or expansion of production and marketing facilities.
  • Purchase transport and other relevant transport and processing equipments.
  • Packaging, grading and marketing equipment.
  • Purchase of marketing equipment (grading, sorting and weighing scales) and construct and/or expand storage facilities.
  • Market research and assistance to market linkages for producers and buyers.
  • Support beekeeping entrepreneurs and/or their associations with inadequate amount of collateral / security for a commercial bank loan.

 

PASS’s core business is to provide advisory and financial services (mainly financial linkage with/out credit guarantee). In this PASS prepares presents to commercial banks and thereafter supports those investments with credit guarantee fund. PASS collaborates with commercial partners banks and with many community partner banks.

 

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