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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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The bee industry in Ethiopia has huge investment potential. Its climatic conditions are conducive to planting plants and crops and is very suitable for beekeeping.
Ethiopia has an estimated of 10 million honeybee colonies, out of which about 5 million are expected to be hived while the remaining exist in the forest. Beekeeping is an important activity for many rural people and is also carried out in homesteads of all parts of the country.It is the most widely spread practice in the farming communities and is a traditionallysignificant off-farming activity for an estimated 1.7 million rural households.Have a production potential of 500,000 ton of honey and 50,000 ton of beeswax annually and currently produce around 23.6% and 2.1% of the total African and world's honey, respectively.
The major honey and beeswax production by regionalshare is Oromia (about 41%),S.N.N.P.R (22%), Amara (21%) and Tigray (5%). Currently, there is about 16 of honeyand ten beeswax processing and exporter companies are actively involved in the business. In 2015 budget year about 675 ton of honey and 520 ton of beeswax exported to the foreign market.Globally there is a large and growing demand for Ethiopian good quality honey beeswax and other bee products.
Currently, Ethiopia entered in EU market in honey and wax, the organic honey has a high demand in developed countries, and there will also be a more alternative market outlets.
Economic Environment
Ethiopian government formulated a five-year growth and transformation plan (GTP) to carry forward the important strategic directions in maintaining the fast-growing economy and the country's economy is projected to grow at an average 11.2 percent annually. National Honey Industry Strategic Plan developed the plan indicates Ethiopia to be competitive in the domestic and international market of honey, wax and other high-value hive products. Honey productionfrom current approximate 50,000 ton to 200,000 tons and wax from 3,000 tons to 12,000 tons by the end of, 2025.Consequently, by 2025 honey export will reach about 2400 ton from existing 400 tons, and beeswax export will reach 1000 tons from existing 520tons Meanwhile the level of export earnings from USD 210 million in 2015 to reach USD of4.8 billion in 2025.
Technical Feasibility
Honey production has a long history in Ethiopia, and most of the farming communities have developed traditional honey production, harvesting, and extraction techniques. Currently, the transitional and modern system of honey production were designed and practiced in some area of the beekeepers. More of honey producers experienced marketing of partially pure honey by using locally available materials and currently simple honey extracting equipment introduced by most of the honey producers and collectors. Improved honey and wax processing machinery are not more sophisticated as other industrial machinery.
Pricing and Machinery
Combined with the low entry barrier including, start-up capital, the return on investment in honey production appears quite attractive. The combination of honey and wax production leads to the realization of significant profit levels. Afore-mentioned does not even include the value of crop pollination. Other hive products like Royal Jelly, Pollen & bee venom are also in very high demand globally.The approximate average unit price of exported honey in 2015 has an average price of 3425-5500 USD/ton based on destination countries. And beeswax average trading price of 9135USD/ton.Quality honey that produced from improved hives has on the average price of 120-200 birr /kg in the domestic market depends on honey type and season. And the crude honey average price of 60-80 birr in based on location and season. The machinery and equipment required will be procured from foreign and local sources. The total cost of machinery and equipment is estimated to be Birr 4,000,000.
