a market assessment of the honey industry in sofala province

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M O Ç A M B I Q U E – Á F R I C A A MARKET ASSESSMENT OF THE HONEY INDUSTRY IN SOFALA PROVINCE Prepared by: Brooke Bush, Marketing Adviser VSO Secure Livelihoods Program For: ADEL-Sofala Agência de Desenvolvimento Económico Local de Sofala June 2010

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Page 1: a market assessment of the honey industry in sofala province

M O Ç A M B I Q U E – Á F R I C A

A MARKET ASSESSMENT OF THE

HONEY INDUSTRY IN SOFALA PROVINCE

Prepared by:

Brooke Bush, Marketing Adviser VSO Secure Livelihoods Program

For:

ADEL-Sofala Agência de Desenvolvimento Económico Local de Sofala

June 2010

Page 2: a market assessment of the honey industry in sofala province

2

TABLE OF CONTENTS

T A B L E O F C O N T E N T S ------------------------------------------------------------------------------------------------------- 2

1 O B J E C T I V E S ----------------------------------------------------------------------------------------------------------- 4

2 M E T H O D O L O G Y ------------------------------------------------------------------------------------------------------ 5

3 R A T I O N A L E ------------------------------------------------------------------------------------------------------------- 6

4 I N D U S T R Y O V E R V I E W -------------------------------------------------------------------------------------------- 7

5 A P I C U L T U R E I N S O F A L A P R O V I N C E --------------------------------------------------------------------- 11

5 . 1 O V E R V I E W ------------------------------------------------------------------------------------------------------------- 11

5 . 2 P R O D U C T I O N ---------------------------------------------------------------------------------------------------------- 12

5 . 3 H A R V E S T ---------------------------------------------------------------------------------------------------------------- 15

5 . 4 Q U A L I T Y R E Q U I R E M E N T S -------------------------------------------------------------------------------------- 16

6 V A L U E C H A I N S T R U C T U R E ----------------------------------------------------------------------------------- 17

6 . 1 O V E R V I E W ------------------------------------------------------------------------------------------------------------- 17

6 . 2 P R I C E C O M P A R I S O N ----------------------------------------------------------------------------------------------- 20

6 . 3 S W O T A N A L Y S I S ----------------------------------------------------------------------------------------------------- 21

6 . 4 P R O C E S S E S A N D P A R T I C I P A N T S I N T H E H O N E Y V A L U E C H A I N I N S O F A L A ---------- 22

6 . 5 E X A M P L E S O F E X I S T I N G V A L U E C H A I N S F O R H O N E Y I N S O F A L A ------------------------ 23

7 C O N S T R A I N T S I N T H E H O N E Y P R O D U C T I O N V A L U E C H A I N ---------------------------------- 25

7 . 1 L A C K O F A Q U A L I T Y P R O D U C T ------------------------------------------------------------------------------ 25

7 . 2 I N S U F F I C I E N T T R A I N I N G --------------------------------------------------------------------------------------- 25

7 . 3 L I M I T E D A V A I L A B I L I T Y O F A P I C U L T U R E S U P P L I E S A N D E Q U I P M E N T

A P P R O P R I A T E F O R S M A L L H O L D E R B E E K E E P I N G --------------------------------------------------- 25

7 . 4 U N D E R D E V E L O P E D M A R K E T F O R L O C A L L Y P R O D U C E D H O N E Y A N D O T H E R B E E

P R O D U C T S -------------------------------------------------------------------------------------------------------------- 25

7 . 5 L A C K O F O R G A N I Z E D B E E K E E P I N G G R O U P S --------------------------------------------------------- 26

7 . 6 L A C K O F A C C E S S T O F U N D I N G ------------------------------------------------------------------------------ 26

8 R E C O M M E N D A T I O N S T O S T R E N G T H E N T H E M A R K E T C H A I N A N D S T I M U L A T E

S M A L L H O L D E R B E E K E E P I N G -------------------------------------------------------------------------------- 27

8 . 1 P R O V I D E T R A I N I N G S O N H O W T O I M P R O V E H O N E Y Q U A L I T Y -------------------------------- 27

8 . 2 S U P P O R T L O C A L S E R V I C E P R O V I D E R S F O C U S I N G O N T H E S A L E O F B E E K E E P I N G

E Q U I P M E N T F O R S M A L L H O L D E R B E E K E E P E R S ------------------------------------------------------- 27

8 . 3 I M P R O V E P A C K A G I N G -------------------------------------------------------------------------------------------- 27

8 . 4 S T R E N G T H E N T H E O R G A N I Z A T I O N O F B E E K E E P I N G C O M M U N I T I E S ---------------------- 28

8 . 5 T A R G E T L O C A L M A R K E T S ------------------------------------------------------------------------------------- 28

8 . 6 I N C R E A S E N A T I O N A L A W A R E N E S S O N T H E B E N E F I T S O F H O N E Y ------------------------- 29

8 . 7 E S T A B L I S H M A R K E T L I N K A G E S ----------------------------------------------------------------------------- 29

8 . 8 E X P L O R E A L T E R N A T I V E I N C O M E G E N E R A T I N G A C T I V I T I E S F R O M B E E

P R O D U C T S -------------------------------------------------------------------------------------------------------------- 30

8 . 9 S E C U R E S O U R C E S O F C A P I T A L ------------------------------------------------------------------------------ 30

8 . 1 0 T R A N S I T I O N I N G T O M I C R O - S C A L E B E E K E E P I N G – L E A R N I N G B Y E X A M P L E -------- 30

8 . 1 1 N E X T S T E P S ----------------------------------------------------------------------------------------------------------- 31

9 C O N C L U S I O N -------------------------------------------------------------------------------------------------------- 32

1 0 A P P E N D I X A --------------------------------------------------------------------------------------------------------- 33

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EXECUTI VE SUMM ARY

Apiculture in Sofala Province is underdeveloped. Presently, the biggest barrier to the expansion

of the industry is the lack of a quality product and proper packaging and labeling. The majority

of local producers are not organized into beekeeping groups and work individually. They use

traditional methods which yield low and inconsistent production volumes. The honey does not

meet the basic hygienic conditions required by international food safety standards and is

therefore unsuitable for export markets as well as for higher end local markets like supermarkets,

novelty shops and restaurants. Until beekeepers are able to produce a consistently high quality

product, gaining access to better markets will not be possible.

Primary honey producers have little influence on the market as the quantities they supply

individually are in themselves insignificant. What is needed is the establishment of beekeeping

groups to share production and marketing functions. These groups should be organized and

trained in proper extraction and processing methods to ensure quality. Informal groups clustered

at the district level can jointly own and share beekeeping equipment and supplies, process honey

collectively and sell under a common brand. Honey houses need to be established at the district

level so there is a reliable place to process and sell quality honey.

At present the official national certification standard for honey in Mozambique is not being

enforced. This is an advantage for small scale producers who do not have the technology and

equipment to produce an internationally certified grade of honey. If they are able to guarantee a

quality of honey that has been processed hygienically, is free of impurities and can package the

honey attractively, they can begin to compete on national or even regional levels.

Part of the marketing mix that will need to be addressed is increasing consumer awareness about

the use of honey. Honey is not a part of the culture in Mozambique and the population is largely

unaware of the benefits of incorporating honey into the diet. A campaign should be created

around the promotion of honey as a high energy nutritive food.

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1 OBJECTI VES

The main objective of this study is to provide VSO’s partner organization, ADEL-Sofala, with an

assessment of the honey market in Sofala province. This will include understanding the obstacles

that prevent beekeepers from attaining equitable access to and engagement in local markets,

identifying ways to improve market access and helping them add value to their product. The

study aims at increasing the incomes of local beekeepers and the sustainability of this alternative

livelihood. The following four honey producing districts in Sofala were chosen as the focus for

this research: Gorongosa, Maringue, Cheringoma and Caia. A desirable outcome of this market

assessment would be to eventually upgrade beekeepers in Sofala from traditional beekeeping to

micro-enterprise honey production.

The framework of analysis used is a market assessment. The overriding goal of the project is to

promote pro-poor growth. The pro-poor growth concept builds on the fundamental premise that

only economic growth coupled with the ability of poor people to successfully participate in

markets will lead to a sustainable solution to poverty reduction. This market-oriented

development approach involves understanding the nature of and barriers within a market chain. It

takes a holistic view of the strengths and weaknesses of the entire market chain and enabling

environment in order for it to operate more effectively. It identifies the key participants and

activities involved in each stage of the market chain, from initial inputs to production, to

marketing, to the end consumer, and highlights the gaps and critical points for strategic

intervention.

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2 METHODOLOG Y

A variety of research methods were employed in the collection of data for this project. Secondary

research came from a review of existing literature and internet-based sources including both

public and private sector studies. Informal interviews and in-depth seminars were undertaken

with a number of key stakeholders including local NGOs and government bodies, beekeepers,

academia, the private sector and local traders and buyers. Site visits to the four districts were

carried out during the months of April and May 2010. A total of 26 in-depth face-to-face

interviews were carried out with the following stakeholders as well as numerous informal

interviews with local beekeepers, buyers, traders and consumers throughout Sofala:

NGOs

SNV

WWF

KULIMA

CLED - Local Energy Development Center

Consórcio Associação come Moçambique

Private

Enterprises

TCT Dalmann

Fruitimel

Instituto Para a Promoção de Exportações (IPEX) (Institute of Export Promotion)

Fábrica de Licores da Beira

Envirotrade

Mel de Mozambique

Government

Institutions

Direcção Provincial de Agricultura e Desenvolvimento Rural (Provincial Office

of Wildlife and Forestry)

Provincial Director of Agriculture

Regional Department of Quality Control

Serviço Distrital de Actividades Económicas de Caia

Serviço Distrital de Actividades Económicas de Maringue

Serviço Distrital de Actividades Económicas de Gorongosa

Beekeepers

Seminar in Maringue – 13 participants: 7 producers, 4 local buyers and traders, 1

local government official, and 1 NGO representative (CEDES)

Seminar in Gorongosa, Nhambita province – 14 participants: 13 producers and 1

NGO representative (Envirotrade)

In-depth interviews with group of beekeepers (Caia and Mzamba Administrative

Post, Inhaminga, Cheringoma)

APISO (Associação dos Apicultores de Sofala) – (Beekeeping Association in

Dondo)

Local Retailers

Shop Rite (Beira and Chimoio)

Casa de Frutas

Carnes da Beira (Specialty shop next to Goto Market, Beira)

Service

Providers APA Mudzi

Academia Institute Agrario de Chimoio (IAC)

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3 R ATI ON ALE

Mozambique is one of the poorest countries in the world. According to the 2009 Human

Development Index, Mozambique ranked 172 out of 182 countries, well below that of its Sub

Saharan African neighbors. Nearly 70 percent of the population lives below the poverty line and

80 percent survive on less that 2 USD per day. The unemployment rate is 21 percent. Poverty

and inequality in the country appear to be increasing. The 2007 poverty assessment conducted by

the International Monetary Fund suggests a worsening of the socioeconomic inequalities and a

significant vulnerability of the poorest strata of society.

Mozambique is also one of the countries most affected by HIV/AIDS. The HIV prevalence rate,

now at 16 percent nationwide, has steadily risen over the last 10 years, exacerbating problems of

slow economic growth, poverty, malnutrition, poor school attendance and results, and gender

disparities. In Sofala, the HIV rate is around 30 percent, due to the Beira corridor connecting

landlocked Zimbabwe with Beira and the sea.

More than 80 percent of the population depends on farming as a way of life. Sofala is fortunate

to have sufficient natural resources, particularly vast forest regions. Yet, despite this economic

advantage, extreme poverty remains a serious development challenge. The promotion of local

livelihood projects is an important means of promoting pro-poor growth by developing the local

market economy.

Apiculture plays an important role in social, economic and environmental development in

developing countries. It has been identified as a livelihood common throughout Central

Mozambique that holds considerable promise as an attractive income generating activity for

smallholder farmers but needs attention for further development. The benefits of beekeeping are

manifold. It is lucrative and is not a time consuming activity. Honey provides great benefits at

the local level as a source of nutrition and for medicinal purposes. It is also a family-based

enterprise and inclusive of women. Moreover, there is an important natural resource management

component to apiculture. If beekeeping is exercised using appropriate technology, it has

important agricultural and environmental benefits. It increases the pollination of natural flora

which improves crop yields. It is also used as a deterrent to bush fires. Beekeeping provides a

mutually reinforcing synergy between the protection of forests and ecosystems and the

responsible use of natural resources as a way to bolster the incomes of local communities.

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4 INDUSTRY OVERVI EW

The honey industry has suffered substantial losses in recent years. In late 2006, large commercial

beekeepers began reporting dramatic declines in their bee colony populations. Many believe this

to be the result of a phenomenon referred to as colony collapse disorder (CCD). Since then more

than three million colonies in the US and billions of honeybees worldwide have died. According

to the annual survey produced by the Apiary Inspectors of America and the US government's

Agricultural Research Service (ARS), the end of 2009 heralded in looses of 33.8 percent of

America’s managed honeybee colonies. Estimates of total colony losses range between 30 and

70 percent. Scientists are still trying to understand the factors behind this global disaster.

Potential causes range from irresponsible use of pesticides, poor nutrition resulting from

excessively rigorous farming methods, parasites like the varroa mite, viral and bacterial

infections, and environmental concerns like drought and worldwide deforestation.

The collapse of the global honeybee population poses dire consequences for valuable crops

around the world. The honeybee pollinates 90 commercial crops worldwide and roughly 30

percent of the food we consume depends upon honeybee pollination. In monetary terms,

honeybees contribute almost US$38 billion to the global economy.

Continued losses of this magnitude in the major honey producing countries coupled by

increasing international demand for high quality honey will require importers to look to new

markets. The situation offers the potential for smaller nontraditional honey producing players to

enter the playing field. Africa presents an increasingly attractive option as a continent with great

potential and a relatively untapped market. Many African countries have already begun to

produce honey for the export market. According to statistics from the Food and Agriculture

Organization of the United Nations (FAO), as of 2007, Ethiopia, Tanzania, Kenya and Angola

were among the top 20 honey producing countries worldwide.

Honey Output in 2005 shown as a

percentage of the top producer

(China – 298,000 tonnes)

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China continues to decisively dominate world honey production with 357,220 metric tonnes in

2007 followed by a cluster of other countries producing in the range of 50,000 to 80,000 metric

tonnes per year. Mozambique’s contribution to global honey production is very low. In 1997

Mozambique ranked 94th amongst all other honey producing countries and had fallen to 102nd

place by 2007.

Top 20 Honey Producing Countries, 2007

Source: FAO

Top 20 Exporting Countries, 2007

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In terms of the top exporting countries, Argentina and China are leading the way with 79,861

tonnes and 65,288 tonnes respectively. The top exporting countries in Africa are Zambia,

Tanzania and South Africa. These countries have been able to penetrate markets within Africa

but are not yet big players on the international level. National food legislation is one of the

biggest obstacles for developing countries. Most major markets set legislative requirements for

foreign as well as domestic honey. These requirements are stringent and often difficult for

developing countries to meet. Countries are therefore forced to sell domestically or in regional

markets. Mozambique is a prime example. The honey being produced in Mozambique now

would not meet international or even regional quality standards and therefore must find local

markets.

The US, Europe, Japan and Saudi Arabia are heavily dependent on honey imports. According to

the National Honey Board, Americans consume over 400 million pounds of honey each year

while US annual honey production is only 180 million pounds. Similarly, Britain produces a

meager 10 percent of the honey that the country consumes.

Market Segments

There are two main market segments for honey: table honey and industrial honey. Table honey

accounts for the bulk of marketed honey and is used primarily as a spread and natural sweetener.

Industrial honey is used in confectionery, cereals, beverages, baking goods, processed foods,

baby foods, pharmaceutical products, and increasingly as an ingredient in health and beauty

products. The honey industry also produces several other products:

Beeswax - Extremely versatile substance with numerous functions. It is used extensively

by the cosmetics industry for products such as skin creams, emulsions, hair pomades,

foundations and powders, lip balms, and various other types of makeup. It is used in the

Source: FAO

Top 20 Importing Countries, 2007

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pharmaceutical industry as an ingredient in medicinal ointments, in the coating of pills

among other applications. Another major industry that relies on beeswax is candle

manufacturing. Beeswax is also used by the dental industry for certain dental procedures

and equipment. Beeswax finds uses in the preparation of soaps, crayons, ornaments,

household waxes, wood and paper as well as many other products.

Bee Pollen – Contains several vital vitamins and minerals and is said to increase energy

and enhance the immune system.

Bee Propolis – Also rich in vitamins and known for its antibiotic effects.

Royal Jelly – Used as a nutritional supplement and antioxidant to increase energy,

strengthen the immune system and lower cholesterol. Also increasingly used in skin

creams and lotions for its potential beneficial effect on aging skin.

In terms of honey prices on the major markets, a kilogram of refined and packed honey sells for

between 6 USD and 9 USD within the US. In the EU open market, it sells for between 1,000

USD and 1,200 USD per tonne. On the fair trade and organic niche markets, a 500 gram jar can

bring as bring as much as 14 USD. In Africa, the price of honey is estimated at 2,900 USD per

metric tonne. (African Agriculture website)

Not all honey is created equal

Adulterated or honey containing harmful materials is an increasingly frequent phenomenon on

the international honey market. For years, there has been mounting international concern over

the safety of imported honey from certain countries like China. China is known for using an

animal antibiotic -- chloramphenicol -- to treat diseases ravaging their beehives. In the US, the

Federal Drug Administration has banned this drug in any food product. However, large

shipments of contaminated honey from the two main exporting countries, China and Argentina,

are frequently laundered into other countries in order to avoid import fees, protective tariffs or

taxes imposed on foreign products that intentionally undercut domestic prices. This unscrupulous

practice, known as transshipping, whereby the honey is illegally re-labeled as honey from

another country, poses a serious health risk to consumers and hurts the competitiveness of

domestic honey producers.

In response to this, in December 2001 the US Department of Commerce imposed anti-dumping

duties on honey imports from China and Argentina, which ranged from 32.6% to 183.8%. While

this decision was welcomed by American honey farmers, it received criticism from those who

felt it would be a serious financial setback for the subsistence honey farmers in developing

countries.

Given this environment of increased adulteration and antibiotic use in honey, there is increasing

awareness about the potential ill-effects of non-organic honey. Health conscious consumers are

progressively turning to organically certified products. Organic and raw forest honeys fetch a

much higher price in the market as compared to conventional honey. Organic honey production

naturally lends itself to the environment in developing countries. In Mozambique, for example,

some of the necessary requirements are already in place - there is an abundance of natural forests

for bees to forage and agricultural and chemical pesticides are rarely used. Production and

quality would need to be enhanced but the makings for organic beekeeping are feasible.

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5 API CULTURE IN SO FAL A PRO VI NCE

5.1 OVERVI EW

Honey constitutes an important non-timber forest product in many developing countries as a

source of food and revenue for local communities. Mozambique is rich in forests and natural

habitats for wildlife. Forests cover a total of 40.6 million hectares or 51 percent of the country.

These conditions make Mozambique an attractive location for the development of apiculture.

The strain of honeybees found in Sofala are Apis mellifera scutellata/A.m. littoria hybrids, more

commonly referred to as the Africanized Honeybee (AHB). The African bees are small and

resilient and well adapted to the environment. They are able to exploit a wide variety of food and

water sources to survive in the region’s often harsh environment that is subject to periodic

drought. They are considered to be more aggressive, unpredictable, and defensive when it comes

to protecting their hives as compared to the European honeybee.

There is a long tradition of apiculture in Mozambique. In Sofala, the majority of beekeepers are

still practicing a traditional form of apiculture. These traditional practices are deeply ingrained in

the psyche of beekeepers. Beekeeping is still treated locally as a cultural activity. Because of the

traditional approach to the livelihood, the industry remains underdeveloped. Most beekeepers in

Sofala province are operating individually, are not registered, have no bank accounts and carry

out their apiculture activities on a temporary basis. Production is low compared to neighboring

countries that have managed to make the jump from traditional to commercial apiculture.

In Mozambique there are approximately 4,000 authorized Small and Medium Forestry

Enterprises (SMFEs) in honey that are licensed and/or registered and 30,000 SMFEs in honey

that are neither registered nor licensed but are well organized. (FAO)

In the mid 1980s, the government of Mozambique adopted a national beekeeping program. It

recognized the potential of the industry for the country and focused on capacity building. It

began sending beekeepers abroad to learn new and improved techniques. However, by the early

1990s the initiative had failed. There was a lot of initial investment and energy but the program

was not well managed and maintained and the benefits did not measure up to expectations. Since

this initial effort, there has been no subsequent push to get apiculture back on the national or

regional agenda. There is no department for apiculture at the Ministry of Agriculture.

Government support for beekeeping activities is based on the personal commitment of Provincial

Directors. The government has left it to NGOs and the private sector to encourage the

development of the industry.

There is currently an informal working group in Central Mozambique focused on sharing skills

and information and promoting the honey industry in the region in a responsible and

environmentally sound way. This multi-stakeholder platform is comprised of organizations from

the public, private and non-governmental sectors.

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5.2 PRO DUCTIO N

There is no official production statistics on honey production in Mozambique. Data was

therefore acquired from individual interviews with stakeholders and from secondary data but

does not provide a complete picture of current production or of potential production capacities.

According to the 2004 Mozambique External Market Task Force Study on Honey, the country

has the capacity to produce around 3600 MT per year. Gorongosa (Sofala Province), and

Tambara, Guro and Sussundenga (Manica Province) are the most important honey producing

regions in Mozambique. Approximately 70 percent of honey production in the country comes

from individual beekeepers using traditional hives and methods. Small private associations with

modern and transition hives make up the other 30 percent. Sofala is no exception with the vast

majority of honey being produced using traditional hives. Honey yields using traditional hives

are much lower than those of modern hives; approximately 5kg/hive/harvest versus 20

kg/hive/harvest respectively.

According to firsthand reports from local beekeepers in Maringue, about 10 percent of the local

population in Maringue is engaged in beekeeping. With a population of around 75,000, this

means roughly 7,500 people are participating in apiculture. However, in a subsequent interview

with the Administrator of Maringue District, he stated that this figure was too high.

Production and management of apicultural capacity varies greatly from beekeeper to beekeeper.

A local beekeeping group in Maringue called “Casa de Banana” is reported to manage as many

as 500 beehives. Based on feedback from a group of 7 local producers in Maringue, the average

number of beehives each beekeeper managed was 72 and the total average amount of honey they

produced last year was only between 100-200 liters. If each traditional hive can produce 5kg of

honey per harvest and there are typically 2 harvests per year, production should be much higher.

It appears that production capacity is not being fully exploited. This is probably the result of poor

management on the part of beekeepers, frequent theft and a drought that affected the region last

year. One beekeeper reported having 99 hives but only 2 people to manage them. Based on

interviews with a group of local traders in Maringue, one trader buys as much as 2,400 liters of

honey at a time, investing up to 100,000MT (3,300 USD) to run his intermediary business. Other

traders reported purchasing quantities of around 600-800 liters and working with cash flows of

40,000MT (1,300 USD).

Types of Hives

The traditional hive is made by using the bark or truck of a tree, often killing the tree in the

process. In Gorongosa alone, it is estimated that at least 7,000 trees are killed every year in the

construction of traditional hives.

The most common type of modern hive found in Sofala is the Kenya-style "top-bar" (KTB) hive.

It has been used extensively in development work because of its ease in building and lower price

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13

point as compared to other modern alternatives. It is being promoted throughout Sofala as the

hive of choice in transitioning beekeepers from traditional to modern hives.

Because of the KTB’s horizontal design, it is less top heavy and easy to suspend and lift during

harvest. It is also easier to manage as the beekeeper does not have to open the entire hive to

inspect a certain section. The spreading of pests and diseases is kept to a minimum with this

design, and ventilation and heat exchange is well managed. The KTB also producers more wax

than other varieties which can be used for income generating activities. The main disadvantage

of top-bar hives is markedly lower yields of honey as compared to Langstroth. Additionally, the

combs simply hang from the top-bar and are not supported by a frame, thus the honey cannot be

extracted by centrifugal force. It is either harvested as comb honey or crushed. As a result, the

bees must rebuild that comb again during the next honey flow at the cost of honey production.

The major competitor to the top-bar hive is the Langstroth hive. It offers many advantages, the

primary of which is maneuverability. The frames are simple to move for harvesting or

inspection, enabling beekeepers to manage the bees and harvest the honey more easily. Each

wooden box is fitted with wooden frames holding wax-molded sheets used by the bees as a base

for the combs. Honey can be extracted by centrifuging after which the emptied comb (frame) is

reinserted into the hive to be refilled by the bees. Because the bees do not need to rebuild the

combs, they can focus solely on honey production, making this a higher honey yield hive. These

hives are very durable and easy to transport over long distances. They use standard sized hive

parts so parts can be interchanged easily at a reasonable cost. Due to the modular design, the

hives can be expanded or contracted depending on the needs of the beekeeper. Some of the

disadvantages of the Langstroth hive are its complex design, requiring more cost and skill to

build and manage. These hives run the risk of spreading disease to healthy hives so preventative

measures must be observed.

Most small-scale beekeepers in Sofala are using the traditional log beehives that produce about

15 kg of honey per year as compared to the Langstroth that can produce 40 kg. Based on the

findings of the market assessment, it is recommended that beekeepers initially transition from

traditional hives to the top-bar design as they are cheaper to construct and easier to maintain.

Eventually, once technical skills and knowhow are well established among the beekeeping

groups, the Langstroth hives can also be introduced.

Livestock

No commercial production or organized trade of live bee stocks exists in Mozambique. Bees are

replenished from the wild in the traditional system. While this is sufficient given the current

inchoate status of the industry, as the market grows and more beekeeping associations and micro

operations develop, there will be the potential for service providers to fill this niche demand.

This will be increasingly important given the rising incidence of disease and the high absconding

tendency of African honeybees.

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Beekeeping Inputs

Most of the specialty apiculture equipment is not manufactured in Mozambique and cannot be

found in the districts. Beira is the closest city to the districts in Sofala that carries these supplies,

which are typically sourced from South Africa. The equipment prices listed above came from a

shop in Beira called Moura, Correia & Aragao, Lda. The price of a KTB hive varies dramatically

between vendors. Envirotrade in Gorongosa will produce hives locally for 750MT, TCT

Dalmann produces hives in Catapu for 1,100MT and Moura, Correia & Aragao, Lda. sells hives

from South Africa for 2,350MT.

Equipment Price

Modern Bee Hive - KTB 750MT – 2,350MT (22-69 USD)

Smoker 895 (26 USD)

Protective Suit 1150 (34 USD)

Mask 475 (14 USD)

Boots 835 (25 USD)

Gloves 245 (7 USD)

Knife 245 (7 USD)

Brush 240 (7 USD)

Bucket with Lid 585 (17 USD)

Exchange Rate: 1 USD = 34 MZN

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5.3 HARVEST

Honey production is seasonal and it is difficult to predict the amount harvested. The cropping

season in Sofala varies slightly from district to district and from beekeeper to beekeeper but there

are typically two harvests per year, from February to April and from October to December. The

technique of post harvest handling also varies among beekeepers depending on the level of

knowledge and type of equipment used. Many traditional beekeepers suffer from a lack of

training and supplies, which results in substandard honey production. Common problems

include:

Inefficient extraction of honey from honeycomb (Often squeezed by hand resulting in

contamination from pollen and other impurities. Large numbers of bees are also killed during

improper extraction);

Harvesting honey before the comb is fully ready due to cash flow constraints which results in a

inferior product;

Lack of sanitized extraction supplies (using buckets rinsed with unfiltered water to store the

unprocessed honey);

Excessive moisture content (often above 19% humidity);

Discarding valuable beeswax;

Lack of sanitized and standardized packaging (using unlabeled old bottles as packaging).

Most of the honey produced by local beekeepers is sold to traders in an unprocessed form.

Traders and secondary processors clean the honey by pouring it through mosquito nets to remove

impurities and then bottle it in recycled water and soda bottles. These rudimentary techniques

lead to a product that is not sellable in most established markets.

Another major limitation to beekeepers in Sofala is the lack of a central honey house at the

district level that can process and package high quality honey. Several districts have had plans to

build such an enterprise but none of these proposals have come to fruition. Local governments

cite lack of funding as the chief constraint. This issue has also received attention from the private

and non-governmental sectors but nothing concrete has materialized.

Below are pictures taken from the beekeeping enterprise at TCT Dalmann in Catapu. All of this

basic processing equipment is inexpensive and available in local markets. The techniques used in

extracting honey with these tools are simple and easily transferable to traditional beekeepers.

Most importantly, if used properly, they produce a high quality honey that is suitable for high

end markets. They also allow for the collection of beeswax which can be sold to supplement

honey sales.

While the construction of a fully functioning honey house may be out of reach for local

communities at the moment, a short term solution might be to construct a more economically

feasible alternative using equipment like TCT Dalmann. Each honey producing district could

build such an informal honey house and charge beekeepers and secondary processors a nominal

fee to process their honey there.

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5.4 QU ALI TY REQUI REMEN TS

There are three general parameters that determine product quality: moisture content, purity and

smell. Honey that is intended for the export market must meet stringent international standards

(see Appendix A.) None of the honey currently being produced in Sofala is admissible for the

international export market.

The color and taste of honey depends principally on the type of flowers that bees forage on. In

Africa, most of the honey that is produced locally is of a different variety than what is commonly

found on international markets. It has a darker color and stronger taste and often performs poorly

on technical parameters like moisture content. Some of these aspects can be improved by better

management while others are inherent to the natural conditions for tropical honey production.

There are widespread reports of product tampering in Sofala where honey is mixed with water,

sugar or molasses to increase its volume. The problem of adulteration and falsification of honey

in Sofala affects both commercially and traditionally produced honey.

In large part, the quality of honey is determined by the methods used in extracting and

processing the honey. As stated above, the extraction of honey continues to pose a large problem

for traditional beekeepers and compromises their ability to produce and sell a high quality

product. It is commonly extracted in an unhygienic way, leaving debris and other impurities.

Further, it is packaged in recycled bottles without labels and safety seals. Most smallholder

farmers are currently not passing the minimum hygiene standards that are necessary to meet even

regional certification guidelines and thus are unable to access larger and more lucrative markets.

The National Institute of Normalization and Quality Control (INNOQ) in Mozambique

developed a “Norma de Mel” or Honey Code to promote the standardization and quality of

honey in Mozambique. While this document serves as the national benchmark for honey

manufactured in the country, none of the local producers that we encountered during the market

assessment were officially certified. Achieving national certification is expensive and out of

reach for most smallholder beekeepers. While obtaining certification would certainly be an

advantage for a local honey producer and help to differentiate it among its local competitors, not

having certification does not seem to be a deterrent to selling in local markets or in reputable

outlets like ShopRite.

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6 VALUE CH AI N STRUCTURE

6.1 OVERVI EW

The apiculture value chain is poorly developed in Mozambique. At present, the chain is

relatively simplistic in Sofala and operates largely through informal channels. The chain is

comprised of various stakeholders including beekeepers, local traders and buyers, and

commercial buyers, with the support of district governments, NGOs and private companies.

The base of the industry is supported by thousands of beekeepers followed by a smaller middle

level of traders, and finally by an even smaller group of entrepreneurs at the top. All power

relationships within this existing value chain operate within the confines of this top-down

hierarchy. This is illustrated in the diagram below.

Beekeepers in Sofala produce honey individually or in small groups. They typically perform

more than one function of the value chain. They construct beehives out of available local

materials, catch and hive swarms, manage bees, and harvest and process honey. A small amount

of honey is kept for personal consumption and the majority is sold in a semi-unprocessed form.

Some beekeepers bottle their own honey and sell directly to consumers while others work

through intermediaries. They sell to middlemen or traders in bulk quantities, who in turn

consolidate, further clean, process, and rebottle it before selling it in informal markets or to

retailers at the top of the value chain.

Beekeepers

Intermediaries/

Traders

Retailers

Indicates numbers of market players

Indicates supply chain flow

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Local Honey Markets

A well established informal market for the sale of local honey in Sofala can be found along the

EN1/EN6 road network. There is an abundance of low-grade honey that is marketed individually

through this channel. The target market for this product is truck drivers and other passing

travelers. Despite some visible differences in quality, there is no premium paid for higher quality

honey within this market segment. This is presumably because of an indiscriminate consumer

and a lack of packaging differentiation between the honeys offered. All are bottled in recycled,

unlabeled bottles. Interestingly, regardless of this low quality, poor packaging and lack of

branding, consumer demand is steady.

There are formal markets selling honey such as supermarkets and novelty shops in most major

cities in Sofala. Local honey represents the minority of brands supplied by these retailers, with

only one local brand (or none in some cases) competing with 3 or 4 imported brands. The

purchasing behavior of consumers shopping in this market is more discerning and preference is

given to honey that is considered to be of a high quality.

This is also a burgeoning grey or illegal market for honey in Mozambique. Over the last five

years, there have been a growing number of buyers from neighboring countries such as Tanzania

and Zimbabwe coming to Mozambique to purchase bulk honey, sneaking it across the border

illegally and processing in their respective countries. This is happening because there is not a

strong local market for the honey produced in Mozambique. Apparently this practice is not

uncommon in the region. There are also reports of South African buyers purchasing honey from

Zambia, processing it in South African and labeling it as South African honey.

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Regional Honey Working Group

There are a number of organizations - public, private and NGO - that are working to establish a

multi-stakeholder regional honey group. Their aim is to create a platform of actors interested in

sharing experiences and knowledge about beekeeping in order to advance the apiculture industry

in Central Mozambique.

V&M Grain - A private company in Mozambique with plans to launch an ambitious project to

promote the small scale production and sale of organic honey for the export market. The premise

of their project is to combine “rural economic development & empowerment of poor farmers

with private enterprise in the honey sector, through a shared ownership model with beekeepers”.

Within the first five years, they intend to supply 50,000 KTB beehives on credit and train and

work with 5,000 beekeepers throughout Central Mozambique.

SNV - A Dutch NGO that works with the private sector as the engine for economic growth. SNV

has considerable experience in agribusiness and has worked in the honey sector in Ethiopia and

other Sub-Saharan African countries. They will be assisting V&M Grain in the implementation

of the above mentioned project.

TCT Dalmann - A private company specializing in the production of high end wood furniture

for the export market. With regard to honey, they have begun to manufacture KTB hives and are

selling them to the local market. They also provide technical trainings to beekeepers on how to

transition from traditional hives to the KTB model. They have plans to develop their own brand

of honey, producing and marketing the honey themselves.

IPEX - Currently working to establish a national certification standard for honey in Mozambique

as well as trying to develop a national Mozambican brand of honey in terms of packaging and

commercialization.

Eco-MICAIA - MICAIA is an NGO working in the Manica and Maputo Provinces to strengthen

local communities by creating economic sustainability through market-oriented development.

Eco-MICAIA is the social enterprise arm of MICAIA, focusing on community-based and eco-

tourism initiatives. Eco-MICAIA will assist the V&M Grain beekeeping initiative in a number of

functions: by helping to secure funding and representing the group of honey producers in the

company.

WWF – Focusing on promoting honey production in Central Mozambique as a means to assist

local communities in alternative income generating activities and reduce environmental pressure.

Working with a total of 35 beekeepers in three groups in one district to build capacity and

produce high quality honey that can eventually be sold at the regional market level.

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6.2 PRI CE COMP ARI SO N

The culture of fixed market pricing is well developed in the local marketplaces of Mozambique.

Unlike some developing countries where a healthy bargaining market exists, prices in

Mozambique seem to be determined by an informal but highly synchronized information

network. Opportunities for practices like arbitrage are limited. The price of goods and services

do not vary much from market to market. That said however, there is no official fixed price for

Mozambican honey because of differences in quality.

The price of honey varies according to the quality and the way it is processed as well as the

season and the distance required bringing it to market. The price follows a classic supply and

demand scenario. There is considerable competition and information symmetry in the informal

markets that ensures price stability. According to interviews with local stakeholders, there has

been a recent jump in honey prices – a doubling in some cases – from this year to last. Farm gate

prices range from 50-70MT per liter depending on the season. Local traders sell honey for

100MT per 1.5 liters, a 34 percent markup over the farm gate price. The price for honey sold in

local supermarkets varies greatly depending on the origin of production. Export quality honey

receives a substantially higher price than that of local honey, selling for a premium of almost 5 ½

times in some cases.

*Price depends on season (50 MT during peak season, 70 during off peak season)

+Source: “Techno Serve: A study on Production Potential of Natural Honey in Gorongosa, District, Sofala

Province, Mozambique" Dec 2008”

Exchange Rate: 1 USD = 34MT

Product Vendor Origin

Volume Per

Container (Liter)

Selling Price (MT)

Selling Price ($US)

2010 Price

Per One Liter (MT)

2008 Price

Per One Liter

(MT)+

% Change (2008-2010)

Directly from beekeeper

Beekeeper Catapu 1 50-70 1.47-2.06

50-70* 25 0.50%-0.64%

Local buyer Roadside Stand

Catapu 1.5 100 2.94 66.67 unavailable unavailable

Mel Natural (Mel de

Mozambique)

Mel de Mozambique,Honey House

Sussudenga 0.5 100 2.94 200 unavailable unavailable

Mel Natural (Mel de

Mozambique)

Shop Rite Sussudenga 0.5 79 2.32 158 230 -45.57%

Mel Nectar Shop Rite Portugal 0.25 215 6.32 860 unavailable unavailable

Goldcrest Shop Rite South Africa

0.5 199 5.85 398 338 15.08%

Mel Puro Casa de Frutas, Beira

Gorongoza 0.5 90 2.65 180 140 22.22%

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6.3 SWO T AN ALYSI S

Strengths

Strong tradition of beekeeping in Mozambique

Natural environmental conditions in Sofala are

favorable for honey production

Mozambique represents an untapped market for

honey exploitation

Locally produced honey has a good reputation

among local consumers

Growing awareness among beekeeping groups

about the importance of quality control,

branding, and packaging

Central region receiving growing interest from

private sector to develop a public / private /

community partnership to promote honey

production

Non-time consuming activity - can easily be

combined with other livelihoods

Weaknesses

Majority of beekeepers still using traditional

approach to honey production

Lack of organized beekeeping unions and

associations

Quality of honey in Mozambique is among the

lowest in the region

Underdeveloped markets and poor distribution

channels

Poor infrastructure to transport honey to larger

markets

Lack of consumer awareness about the benefits

and uses of honey

Poor quality of raw product, poor hygienic

conditions at producers’ level, widespread honey

adulteration

Low levels of production (most producers work

individually and are small scale – cannot

guarantee the quality and quantity necessary to

launch market promotion)

Lack of technical know-how and proper

equipment at smallholder producer level

Cost of initial production high – takes time to

realize a return on investment

Opportunities Growing international demand for honey

Favorable regional trade opportunities

Quality control standards for honey in

Mozambique are not enforced

No regulations regarding honey production and

sale

Lack of domestic competition that can produce

quality honey – lots of room for entrepreneurs

Healthy market for secondary honey related and

value added products

Suitable for women -potential to develop

livelihood in gender focused direction

Ecological honey production recognized as

important in Mozambique

Threats

Many substitute products like sugar that are

cheaper and more readily available

Current lack of incentive to improve quality

Lack of government programs to support

apiculture (not a priority sector)

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6.4 PRO CESSES AND PARTI C I PANTS I N THE HONEY VAL UE CHAI N

I N SOF AL A

This map is comprised of three main elements: functions, operators, and supporters. The

operators in a value chain are the enterprises that carry out the basic functions of the chain. They

own certain stages of the product (raw, semi-processed or finished). Value Chain Supporters are

facilitators in the chain process and provide an enabling environment for the operators. They

remain outside of the regular business process. Facilitation tasks may include providing

necessary inputs, trainings, creating awareness, coordinating support activities, and assisting in

strategic planning.1

1 Adapted from the GTZ paper “Honey in Nepal” and interviews with stakeholders in Sofala.

Financial Assistance, Technical Assistance, Provision of Beekeeping Equipment & Supplies

Preparation of beehives, monitoring, maintenance, cropping, extraction, semi-processing

Beekeeping

Trading

Consumption

Inputs

Collecting honey, filtering, and packing in bottles or large cartons

Repacking, labeling, transporting, selling, and marketing

Consume as food

Collection & Processing

Functions

Service Providers

Beekeepers

Categories of Operators

Consumers

Retail Shops/Local

Marketplaces

Intermediaries

Traders / Processors

Associations

Value Chain Supporters

District Governments

NGOs: ADEL Sofala, WWF, Consórcio, CEDES

Private Sector: TCT, Envirotrade

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6.5 EX AM PLES OF EXI STI NG VALUE CHAI N S FO R HONEY I N

SO FAL A

Example 1: The most straightforward and ubiquitous value chain structure in Sofala. A Local trader buys unprocessed honey in bulk from a local beekeeper, processes, bottles and sells for a profit along the roadside.2

Example 2: Example of contract production. Local beekeepers have a contract to produce and sell unprocessed honey for a specific local enterprise, who in turn processes, bottles, lables, brands and sells to supermarket.

2 We were unable to ascertain the exact production costs and net profits for beekeepers in Sofala as simple record

keeping is not routinely practiced. However, most of the beekeepers interviewed had been given equipment from

donors so the only actual production cost was labor.

Local Beekeeper (Sells unprocessed honey)

Sells: 50-70MT/liter

Local Trader (Processes and sells along roadside)

Sells: 100MT/1.5 liters

Consumer

Local Beekeeper Sells: 25MT/0.5 kg

Small Enterprise (Mel de Mozambique)

Buys: 25MT/0.5 kg Fixed Labor Cost: 21MT/0.5 kg

Sells: 60MT/0.5 kg

Supermarket (Shop Rite)

Buys: 60MT/0.5 kg Sell: 79MT/0.5 kg

Consumer

Profit: 50-70MT/liter Gross Profit: 3-17MT/liter

Net Profit: 14MT/0.5kg Profit: 25MT/0.5kg Gross Profit: 19MT/0.5 kg

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Example 3: Illustrates the value chain for a local Beekeeping Association. The Association manages all stages of the value chain up to (and sometimes including) the retail level.

Example 4: Example of bulk buying. Local trader purchases honey in bulk (18 20-liter cartons) from a local beekeeper in Sofala and transports it to markets in Maputo. Local trader is able to sell honey in Maputo for two times the price. After transportation costs, this is a 32 percent profit.

Association Fixed Costs Jar: provided by NGO Label: 5MT Sticker & Seal: 1MT Expenses: 6MT/0.5 kg

Sells: 100MT/0.5 kg

Local Community

Novelty Shops

Central Markets

Profit: 94MT/0.5kg

Local Beekeeper Sells: 800MT/20

liters

Local Trader Buys: 20-liter cartons for 800MT/20 liters Transport Costs: 150MT/20 liters and roundtrip bus ticket 2400MT Sells: 1600MT/20 liters

Xipamanine

Malhangalene

Xiquelene

E Benfica

Gross Profit: 28,800MT Total Fixed Costs on Bulk Delivery: 19,500MT

Honey: 800x18= 14,400MT Honey transport fee: 150x18= 2,700MT Bus ticket: 2,400MT

Net Profit: 9,300MT

Profit: 800 MT/20 liters

Markets in Maputo

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7 CONSTR AI NTS IN THE HO NEY PRO DUCTIO N VALUE CH AI N

7.1 LACK OF A QU ALITY PRO DUCT

Mozambique is producing the lowest quality of honey in the region. Quality, packaging (bottling

and labeling), and branding are the most crucial aspects of creating a sellable product.

Unfortunately in Sofala, all of these factors are either underdeveloped or nonexistent. The

current methods used by the majority of beekeepers to harvest honey are compromising the

quality and rendering it unsuitable for markets other than local ones. Further, post-harvest

processing is rudimentary and inadequate to meet basic quality standards. Current production

capabilities are small and unpredictable.

7.2 INSUFFI CIENT TRAI N I NG

Many beekeepers in Sofala have only basic knowledge of honey production and limited access to

information and technology. The lack of a quality product is due in large part to the lack of

appropriate trainings, accountability and follow-up. Despite large amounts of funding and

attention that have been given to the development of apiculture in Mozambique by donor

organizations in recent years, the results have been meager. Most beekeepers in Sofala are still

practicing traditional beekeeping using traditional hives and equipment that is inappropriate for

larger scale production. Trainings are often not “hands-on” enough nor accompanied by

sufficient monitoring and evaluation to ensure the continuity of projects.

7.3 L IM I TED AV AI L AB IL I TY OF API CULTURE SUPPLIES AND

EQ UIPM ENT APPROPRI ATE FO R SM ALLHO LDER BEEKEEPI NG

There is a shortage of service providers in Sofala supplying beekeepers with the equipment

necessary to practice the livelihood in a modern way. Recently a few private companies in the

districts have started selling modern KTB hives but other equipment such as protective gear and

smokers must be purchased in Beira. According to interviews with former service providers, the

reason for this is lack of demand. They report that the market has dried up. They are no longer

receiving requests for beekeeping equipment so they have stopped producing it. The districts also

lack honey houses for proper extracting, processing, packing and other handling of honey as well

as to serve as a central retailer for the sale of honey and honey related products.

7.4 UNDERDEVELOPED M ARKET FO R LO CALLY PRO DUCED HO NEY

AND O THER BEE PRO DUC TS

The demand for honey is Mozambique is small. Unlike some cultures where honey is a staple in

the diet, Mozambicans do not use honey on a regular basis. Consequently, there is a general lack

of awareness about the benefits and uses of honey – both on the local and national levels. This

explains to a large extent why the market remains underdeveloped. Further, local beekeepers are

not producing secondary value-added products from other bee products.

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7.5 LACK OF ORG ANIZED BEEKEEPING GROUP S

Another challenge that is stunting the growth of the apiculture industry in Sofala is the lack of

organized beekeeping groups and associations. Most beekeepers have very small scale

beekeeping operations and work in isolation of one another – hence missing out on the benefits

inherent in sharing market information and utilizing economies of scale.

7.6 LACK OF ACCESS TO FUNDI NG

Accessing financing is a constant problem for beekeepers in Sofala. With little or no assets,

banks are unwilling to provide loans on favorable terms. Lending institutions such as

microfinance banks do exist at the district level but they charge high interest rates of around 30

to 40 percent on small loans. Examples include Banco Terra, Banco Oportunidade de

Mocambique, SOCREMO, and Banco ProCredit. Farmers are often dependent on assistance

from external actors like NGOs, the private sectors and government agencies.

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8 RECOMMENDATI ONS TO STRENG THEN THE M ARKET CH AI N AND

STIMUL ATE SM ALLHO LDER BEEKEEPI NG

8.1 PROVI DE TR AI NI NGS O N HOW TO IMPRO VE HO NEY QUALI TY

Traditional beekeepers need to be trained on how to crop honey in a way that does not

compromise the quality. They need to be given technical assistance on making the switch from

traditional to modern beekeeping. The conversion from traditional to KTB hives is extremely

simple. What is more difficult is sensitizing them to the importance and potential benefits

associated with upgrading methodologies. There remains a psychological barrier that needs to be

acknowledged in leaving behind a generational practice.

One of the major limitations in the existing honey market chain in Mozambique is the complete

absence of a quality of honey that can be targeted to a middle tier market. The honey produced

for sale along the roadside is of too poor a quality to interest middle class consumers and the

honey sold in stores like ShopRite is often too expensive for the average family. What is needed

is a product that will be attractive in places like central marketplaces. Marketing value added

honey locally will yield more earnings to the beekeepers than selling in bulk in informal markets.

8.2 SUPPO RT LOC AL SERVICE PRO VIDERS FO CU SI NG ON THE S ALE

OF BEEKEEPI NG EQ UI PM ENT FOR SM ALLHOLDER BEEKEEPERS

In order to succeed at producing a good quality product, beekeepers need to be equipped with the

proper inputs. During the course of the market assessment, it became apparent that many of the

service providers who had previously supported the industry had gone out of business due to

mismanaged resources and/or a general lack of business. There is a need to support enterprises

focusing on the manufacture of equipment and supplies appropriate for smallholder beekeepers

(smaller honey extractors, wax foundation processing, locally made hives, jars and packaging

supplies). As the industry grows in Sofala, there may also be the opportunity for enterprises

specializing in the sale of nucleus hives and queen breeding. These are crucial elements in

supporting the upgrade from traditional to micro-enterprise honey production.

8.3 IMPRO VE PACK AGING

The findings of this assessment continue to stress the importance of marketing, in particular good

packaging. Sourcing high quality packaging materials locally remains a challenge. Packaging

options for both bulk and specialty markets are extremely limited. Fábrica de Licores, a local

manufacturer of plastic bottles and liquors, is interested in supplying the local honey market with

plastic honey containers and can offer a price point of 6MT per bottle. This is a partnership that

ADEL may want to explore further. TCT Dalmann is buying glass bottles for their small honey

production enterprise from South Africa for 25MT per jar plus 5 percent import taxes. Sourcing

from South Africa might be the best option for high-end packaging but these branding aspects

will need to be analyzed in more detail.

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8.4 STRENG THEN THE ORG ANI Z ATI O N OF BEEKEEPI NG

COMMUNI TI ES

There are excellent opportunities for beekeepers in Sofala to secure significant livelihood benefit

from honey production. However, they need to be organized and able to negotiate decent terms

of trade. Primary honey producers have little market influence as the quantities they supply

individually are in themselves insignificant. What is needed is the establishment of beekeeping

coalitions to share production and marketing functions. Informal groups clustered at the district

level can jointly own and share beekeeping equipment and supplies and sell under a common

brand, for example “100% pure natural honey - Nature’s gift from Maringue”. Collective

processing can allow for enhanced and standardized techniques to be controlled which can

ensure honey quality. Establishing district honey houses will be an essential component in the

equation. There should also be a mechanism for improving the dissemination of market

information between members of the community.

8.5 TARG ET LOC AL M ARKETS

Given the fact that it will take time for local honey production to reach consistent quality and

production volumes that are necessary for export markets, beekeepers in Sofala should focus on

penetrating the Mozambican market. This is particularly germane as obtaining national honey

certification is not yet an enforced prerequisite to selling on the national level.

Based on feedback from consumers in larger markets like Chimoio and Beira, Mozambicans are

willing to purchase locally produced honey for prices that are comparable to imported brands if

the local product can meet certain standards. Most of these requirements are exceedingly obvious

and attainable. Honey needs to be packaged in a nice jar with an eye-catching and professional

label that will not get soggy if kept in the refrigerator. It must have a safety seal on the jar so

consumers can trust that the product has not been tampered with prior to purchase. Honey that

contains a thin wax layer on top was seen as having the “natural stamp” and was more popular

than brands that appeared to be more processed. Water content and color were less of a concern

than the guarantee of a 100 percent natural product. An example of a local brand that has

managed to integrate these local preferences is Mel de Mozambique. They continue to gain

ground in local markets and are rivaling their import competitors at supermarkets like ShopRite.

In the districts, consumers were less discriminating in terms of quality standards. Based on a

survey of honey consumers in Maringue, there were some collective preferences regarding

quality- most notably density and color. Local consumers favored honey that was thicker and

darker in color as this was equated with more mature, higher quality honey. However, while it is

generally accepted that quality honey should not have water content above 18 percent, this

prerequisite is lax among local consumers. In terms of branding, consumers believe it to be

important in theory but most have not had access to branded honey. They are satisfied with

unlabeled honey sold in recycled bottles as this is what is readily available in the local markets.

When asked whether they preferred local or imported honey, almost 90 percent indicated a

preference for local honey citing the quality of Mozambican forests, the nutritive value of local

honey and the income generating benefits it brought to local communities. Consumers knew little

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29

about the benefits of honey in terms of its nutritional and medicinal uses aside from being used

as a remedy for cough.

When targeting local markets, focus should be placed not only on the production and sale of

honey for table use, but also on the sale in bulk markets. Beekeepers should look to the potential

of expanding production for sale to local restaurants, hotels, catering companies and food

manufacturing companies. Because of the higher water content found in honey from the central

region, it is well suited for use in other food and industrial products (confectionary industry,

cereals, baking, etc). This is an area for further market research in identifying potential market

linkages.

Another angle that should be given consideration is the production of honey for specialty or

niche markets (organic, single origin, fair trade and varietal honeys). These market segments are

flourishing internationally and are an ideal way to create product differentiation, especially given

that there are no local competitors in Mozambique currently exploiting these areas.

8.6 INCREASE NATION AL AW ARENESS ON THE BENEFI TS OF

HONEY

Lack of market awareness about honey remains a formidable obstacle for the development of the

honey industry in Mozambique. There is a lack of incentive to change current behaviors because

the vast majority of the population does not yet value quality honey. Understandably, consumers

are not willing to spend more for a product that has not been positioned in the marketplace as

being superior and worth the extra money. Consequently, producers are not properly incentivized

to invest extra time and money to produce a higher quality product. Both honey producers and

consumers need to be educated on the benefits of incorporating honey into diets and on the

benefits of increasing honey quality. There is a natural tie-in to food security and nutrition and

HIV/AIDS in the promotion of honey as a nutritive food in Mozambique.

Many of the stakeholders interviewed suggested the need for a national marketing campaign to

help educate consumers on the diverse benefits of honey. While launching a campaign on the

national level may be beyond the resources of NGOs like ADEL, it is certainly possible to

initiate a local campaign in much the same way that moringa was introduced.

8.7 ESTABLI SH M AR KET L INK AG ES

Because of the underdeveloped nature of the honey industry in Sofala, market linkages are weak.

There needs to be more horizontal integration among stakeholders to support this livelihood. At

this point, it is difficult to establish and secure new markets because quality and quantities are

unreliable. However, without the guarantee of markets, it is difficult to encourage beekeepers to

continue producing. This is a classic case of the chicken and egg dilemma. A simultaneous multi

pronged approach is necessary: improving quality and packaging, creating a promotional

campaign around honey, consolidating and branding honey under a unified district brand and

continuing to explore new and creative market linkages.

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8.8 EXPLO RE ALTERN ATI VE INCOM E GENER ATI NG AC TI VI T IES

FROM BEE PRO DUCTS

The potential to expand the usage and marketability of honey and honey-related products holds

great promise. Secondary products often bring a far better return for the producer than selling the

raw commodity. There is a need to provide technical and marketing extension to develop value

added products, particularly for beeswax. Beeswax is an under exploited resource in traditional

beekeeping and can be used to produce a wide variety of high value products. Even beeswax in

its bulk form has a higher price per kilo than bulk honey. Most beekeepers in Sofala are currently

discarding this valuable commodity.

8.9 SECURE SO URCES OF CAPI TAL

In order to empower beekeepers and encourage their entrepreneurial spirit, they need to have

access to reliable sources of capital. However, it is often difficult for them to secure outside loans

and donor funds are not always available. This presents an opportunity to introduce a

microfinance model like the Accumulating Savings & Credit Association (ASCA) to district

level beekeeping groups. In this approach to microfinance, all funds are generated from within

the group. This model encourages the development of a savings culture and helps create self-

reliance. ADEL – Sofala has extensive experience in developing the ASCA model in local

communities throughout Sofala and could extend these skills to groups working in apiculture.

8.10 TR ANSI T IONI NG TO M ICRO -SC ALE BEEKEEPING – LE ARNI NG

BY EXAM PLE

Innovate social enterprises like Honey Care Africa provide an interesting model for the

organization of micro-scale beekeeping in East Africa that could potentially be borrowed for

Sofala. Honey Care Africa is a private company that prides itself on its triple bottom line

philosophy: ensuring that income generation, social improvement and environmental value are

achieved in all activities. The company began to support rural small-scale subsistence farmers to

move away from traditional beekeeping and to adopt modern hives. The company works to fill

many of the common gaps in the honey market chain. It provides farmers with access to micro-

finance, training, extension services, free honey collection services and guarantees a market for

honey at fair trade prices and cash-on-the-spot payments. It then packages and markets the honey

under its brand names for a profit.

Mel de Mozambique, a local enterprise based in Sussundenga which began in 2006, provides an

example of a successful micro-enterprise initiate in Mozambique using both modern and

traditional hives. It follows the Zambian model of beekeeping, helping farmers to work within

the constraints of traditional beekeeping while upholding environmental standards. Instead of

using traditional bark hives which often kill the tree, beekeepers are encouraged to use old logs,

essentially waste wood, to construct hives as well as modern hives when available. Mel de

Mozambique operates in much the same way as Honey Care Africa. The enterprise has a contract

with 8 groups of beekeepers throughout Sofala, comprising a total of 145 beekeepers. It provides

each group with a set of safety equipment that is shared by all beekeepers within the community.

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It provides hands-on technical training and purchases capped honey directly from each group,

processing, packaging and marketing the honey under its own brands “Tropical Forest” and “Mel

Natural”. The volume of honey produced by the enterprise is growing exponentially, from 2,800

kg in 2007 to 4,600 kg in 2009. The honey is sold exclusively in Mozambique, through its own

retail shop in Sussundenga as well as through Shop Rite and other novelty stores in Chimoio and

Maputo.

Another approach that is gaining popularity is based on the Zimbabwean model. This approach is

women-run, small scale in nature, and organized and managed on the local level by local

associations. Women groups have been found to be very adept at beekeeping, are more

methodical and careful with the bees and spend more time managing the hives.

8.11 NEXT STEPS

Based on feedback from a validation workshop that was held with stakeholders in Beira, a

number of ideas were fleshed out on how to strengthen the local industry in the short to mid-

term. The first priority was the creation of a Honey Working Group or “Nucleo de Mel” with

representatives from the entire value chain (producers, traders, buyers, retailers, consumers,

government bodies, VSO, ADEL, and other NGOs. It was proposed that this multi-stakeholder

platform meet frequently to collaborate on initiatives to promote the livelihood. An initial task

should be the creation of a campaign around the promotion of honey. To this end, the group

should seek the help of the Ministries of Health, Industry and Trade and Planning and

Development. One component of the campaign could be a public exposition to help educate the

population on the nutritional benefits of honey. To address the issue of poor packaging, it was

suggested that a “Packing Trade Expo” be held in Beira with representatives from all of the

packing companies in Mozambique to assess the current capacities available in the country.

Finally, it was advised that the group purchase the Honey Code from INNOQ and begin

educating beekeepers on the level of standards necessary to obtain national certification.

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9 CONCLUSION

The promotion of local livelihoods is an important factor in creating the conditions for

sustainable development in the fight against poverty. Honey production as an alternative

livelihood offers enormous potential to the impoverished communities in Sofala. The startup and

maintenance costs are relatively low and the return on investment is high. It is an

environmentally friendly livelihood which adds value to the surrounding ecosystem. Based on

the findings of this study, the success of the endeavor is dependent on access to inputs such as

appropriate technology and supplies and on the availability of technical trainings to instruct

beekeepers on techniques to consistently produce a high quality product. On the production side,

the trainings must be extensive and hands-on. In the past, many honey-related projects in

Mozambique have failed due to lack of accountability and follow-up. It is therefore imperative

that future projects include a mechanism to ensure successful monitoring and evaluation.

The majority of beekeepers in Sofala are operating individually or in very small informal groups.

In order to begin producing the types of volumes necessary to access markets higher up the value

chain, beekeepers will need to be able to guarantee a certain level of production. This will

require beekeepers to establish economies of scale by consolidating production volumes within

districts and sharing the transportation and marketing costs of delivering the product directly to

processors or stores at the top of the chain - thereby graduating beekeepers from traditional

beekeeping to micro or small enterprise honey production. An essential component will be the

creation of district level honey houses to provide a reliable outlet for processing and selling high

quality honey.

Once these requirements have been put in place, beekeepers need to focus on improving the

packaging of their honey. Branding should begin at district level. Small local brands producing

unadulterated honey and adding value can eventually gain import substitution market share. At

present, there is a lack of this kind of local natural honey on the shelves of supermarkets and in

marketplaces which presents a real opportunity for local players to enter this niche market. Even

honey that is better branded could demand higher prices in local markets as compared to the type

that is currently being sold in dirty plastic water bottles.

The reality of the situation is that most traditional beekeepers do not have the capacity to take on

the role of successfully marketing their product. This is an area where an outside organization

such as ADEL or a private company could potentially fill the gap. In the short term, ADEL could

focus on a single district and work to organize the existing beekeepers as well as recruit new

beekeepers, providing the necessary training and follow-up.

Many organizations are working independently on the honey issue in Sofala. In order to give

apiculture the boost it needs to succeed on a regional scale, there needs to be heightened

cooperation among beekeepers, NGOs and public and private institutions. More organizations

should join this effort and continue to search for ways to share best practices, empower

beekeepers, and make a sustainable economic activity from beekeeping.

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Grade Scale based on USDA standards, Source: Wikipedia

10 APPENDI X A

Honey Grade Scale for International Markets

Grade Water

content Flavor & Aroma

Absence of

Defects Clarity

A < 18.6%

Good – has a good, normal flavor

and aroma for the predominant

floral source and is free from

caramelization, smoke,

fermentation, chemicals and other

odor causes

Practically free -

practically no

defects that affect

appearance or

edibility

Clear - may contain air bubbles that

do not materially affect the

appearance; may contain a trace of

pollen grains or other finely

divided particles of suspended

material that do not affect

appearance

B < 18.6%

Reasonably good – practically free

from caramelization; free from

smoke, fermentation, chemicals,

and other causes

Reasonably free -

do not materially

affect appearance

or edibility

Reasonably clear - may contain air

bubbles, pollen grains, or other

finely divided particles of

suspended material that do not

materially affect appearance

C < 20.0%

Fairly good - reasonably free from

caramelization; free from smoke,

fermentation, chemicals, and other

causes

Fairly free - do not

seriously affect the

appearance or

edibility

Fairly clear -may contain air

bubbles, pollen grains, or other

finely divided particles of

suspended material that do not

seriously affect appearance

Substandard > 20.0% Fails Grade C Fails Grade C Fails Grade C