HONEY PRODUCTION AND VALUE CHAIN IN GOMMA WOREDAS.
A Practical Attachment Report Submitted to
Jimma University College of Agriculture and Veterinary Medicine
Department of Agricultural Economics and Rural Development
Advisor Wubshet Chala (MSc.)
Coordinator Rijalu (M. Sc)
Prepared by Tahir Kasim
In Partial Fulfillment of the Requirements for B.Sc. Degree in
(Agribusiness and Value Chain Management)
Jimma, Ethiopia 2014
LIST OF TABLE
LIST OF FIGURE
1. INTRODUCTION 1
1.1. Description of organization 1
1.2. Overall organization and work flow 2
1.3. Objective of practical attachment 3
1.3.1. General objective of practical attachment 3
1.3.2. Specific objective of practical attachment 3
1.4. Goal and Objective of organization 4
1.4.1. Goal of organization 4
1.4.2. Objective of organization 4
1.5. Mission and Vision of organization 4
1.5.1. Mission of organization 4
1.5.2. Vision of organization 4
2. METHODOLOGY 5
2.1. Methods of data collection 5
2.2. Method of sampling 5
2.3. Method of data analysis 5
3. DISCUSION 6
3.1. Concept of honey production 6
3.1.1. Honey as an article marketing 6
3.1.2. Biological definition of honey 6
3.2. Characterization of honey production in Gomma woreda 7
3.2.1. Average honey owned by households 7
3.2.2. Honey production characteristics 7
3.3. Experience in bee keeping 8
3.4. Honey value chain 8
3.5. Honey production and marketing 9
3.6. Honey marketing channel 10
3.7. Pecularity honey production and marketing 11
3.8. Price setting and terms payment 11
3.9. Labor in honey production 12
3.10. SWOT analysis 12
4. LIMITATION DURING PRACTICAL ATTACHMENT 14
5. CONCLUSION AND RECOMMENDATION 15
5.1. Conclusion 15
5.2. Recommendation 16
6. REFERANCE 18
List of table
Table1 budget of organization during the last year…………………………………………….3
Table 2 SWOT Analyses…………………………………………………………………………………….12
List of figure
Figure 1 honey value chain…………………………………………………………………………..9
Figure 2 Honey marketing channel………………………………………………………………….11
List of Abbreviations
FDRE Federal Democratic Republic of Ethiopia
DOARD District Office of Agricultural and Rural Development
PA’s Peasant Associations
SWOT Strength, Weakness, Opportunity, Threat
ARD Agricultural and Rural Development
At the outset I would like to praise of love and peace the Almighty God who always let the bulk of unfinished work to be completed at a moment. In addition to, I would like also to thank the Gomma District Office of Agriculture and Rural Development for the institutional support to get the data. I also wish to express my heartfelt thanks to the producers and workers of organization who responded to my numerous questions with patience. My special thanks and heartfelt gratitude extends to my sister Semira Kasim for her patience, support and encouragement. I am also grateful for my best friends Tofik Abdulhakim, Abduselam Nebso and Mustefa Abarego for their affection, unreserved encouragement, inspiration and support. I also thank all people who assisted me in one way or another during my study period. I never forget to acknowledge Mr. Aweke Fikadu who helped me in data management and for his unreserved advice. Wishing all Holy blessings from almighty Allah and be considered in His eternal Government.
This study was initiated to analyze honey marketing chains in Gomma District, south west Zone of Oromia Region. The focus of the attachment was, to analyze the structure of production costs and determine profitability of the production, to analyze the determinants of honey supply in this area, identify the major constraints and supply of the commodity to the market, to evaluate structure-conduct-performance of honey marketing. The data were generated by individual interview and group discussions using pre-tested semi structured questionnaires and checklists. This was supplemented by secondary data collected from different published and unpublished sources. The results obtained from this analysis indicates that education level of the household head, price of honey in 2005 E.C. and
The quantities of honey produced were found to be the most important positively significant variables influencing honey marketable supply of the District. The channel analysis of the
Commodity indicated a very short route. The main market participants for honey marketing of the District during the survey period were honey collectors, retailers and processors. Besides, a significant amount of honey produced is channeled directly to consumers from producers (43%). The honey marketing performance was also measured using marketing margins complemented with analysis of costs and gross profits generated by different marketing channel actors. Major problems of the production identified and prioritized by beekeepers in this area were drought, pests and diseases of honey bee, lack of beekeeping equipments, death of colony, marketing problems, and shortage of bee forage and lack of adequate beekeeping skill. Based on the study results, interventions demanded to raise marketable supply of honey produced are recommended.
1.1. Description of the organization.
The Federal Democratic Republic of Ethiopia (FDRE) government has nine regional states and two special council administrations (Addis Ababa and Dire Dawa). Oromia regional state is one of the nine FDRE regional states which has zones and two special zones. Of these zones, Jimma is one of zones of Oromia regional state which has 17woredas; as well as Jimma as capital city of Jimma. Of these woredas Gomma is the one. Gomma is found southwest of Addis Ababa and Jimma at 390km and 45 km respectively.
Gomma district agricultural and rural development is one of governmental organization in Jimma zone which is boundered by:
Mana town in the east.
Gumay woreda in the west.
Didessa river in the north.
Seka chekorsa in the south.
Gera woreda in the south west
It was established by containing 39rural kebeles and the total area of 1,230.16hectares and with population size 213,023. Of these, males 108,637 and are females 104, 386. Similarly, 11,430 families are living in this area. According to the data gained from Gomma district agricultural and rural development bureau indicates, As far as concerned about the weather condition, 84% are woinadegas and 16% are Qola. Similarly, the average of daily temperature and annual rainfall of this area is 20 degree calicoes and 1420 milliliters respectively. Using these favorable condition that are discussed earlier, management of seedling is the main. Gomma Woreda agricultural and rural development is found in Agaro town. The organization has been working by undertaking modern and transitional bee hive to increase the community’s income via converting the existing honey production to income.
1.2 OVERALL ORGANIZATION AND WORK FLOW
The Woreda is organized by above 23 coordinating sector-office. From these the internship work tasks have been performed in Gomma Woreda Agriculture and Rural development coordinating main office. This office is established in 1985 E.C. in Agaro town. It is located approximately 0.5 km to the south from the Woreda Administration 0ffice. It has eight work processes (department) with 25 employees. From those employees 18 are males and 7 are females. Out of the eight work processes the animal and animal production work process performs the honey and honeybees production tasks. Animal and animal production department includes diary professionals, Apiculture professionals, and fattening and their animal professionals. The main objective of the Woreda Agriculture and Rural development coordinating main office is promoting Agricultural technology and extension service, supporting farmers by training and distributing agricultural inputs, keeping land security and Environmental protection, developing cooperative work members, improving food security and sustainable Agriculture of the Woreda. Particularly, the Head of Woreda Rural development 0ffice in consultation with Woreda Administration is responsible in putting Woreda steering committee together and making it functional. The Woreda Agricultural Extension process owner is the secretary of Woreda steering committee. The direction of the Woreda Agriculture and Rural development includes the proper use of all available resources such as land, other physical resources and human labor as well as establishment of linkages with other sector office and institution relevant for extension. Representatives from other sector office would form technical committee and which is responsible to facilitate, planning, implementation, monitoring and evaluating Woreda development plan and provide technical support for farmers such as on technical training, supply hive bee, treatment and prevention of disease on honeybees. Generally, to increase productivity of the farm lands and to improve the Woreda’s as well as Country’s food self-sufficiency, the office of Agriculture and rural development in conjunction
Budget during the last year
Gap or Discrepancy
Table1 budget of organization during the last year
1.3. Objectives of practical attachment
1.3.1 General objective of practical attachment
Study is to assess the role of all departments in the organization in beekeeping value chain and honey production.
1.3.2 Specific objectives of practical attachment
To assess the performance of Gomma woreda agricultural and rural development office.
To study the participation of organization members in value chain of bee hive and honey production activities.
To identify constraints of the organization that affecting value chain of bee hive and honey production
1.4 Goals and objectives of the organization
1.4.1 Goals of the organization
Each and every farmer of Gomma Woreda able to realize food security till 2016 according to Gregorian calendar.
1.4.2 Objectives of the organization
To enable the farmers increasing their income that is enough to lead their life and become rich by producing honey efficiently.
1.5. Mission Statement, value And Vision of the Organization.
1.5.1. Mission of the Organization.
Responsible for developing and refining the overall the Woreda agricultural and rural development strategies and policies for Woreda.
To create a modern and highly productive apiculture sector that uses advanced technology.
To promote market oriented agricultural system.
1.5.2. Vision of the organization.
Support a producer more beneficial from production of honey and achieve independent the Woreda people by food security in 2016.
2.1. Methods of data collection
The attachment was used both primary and secondary data. The primary data were collected using two types of questionnaires, one for farmers (honey producers) and the other for honey traders. The primary data collected from farmer’s focused on factors affecting honey market supply, size of output, market information, number of beehives owned, and demographic characteristics of the household
2.2 Method of Sampling
The sample frame of the study was the list of employers of organization.
A two stage sampling procedure was employed to select a specific employers of organization
In first stage, selected departments in the office.
In the second stage, selected 5 respondents of the organization workers randomly for an interview. The total sample size represents the entire workers of the organization.
2.3 Method of Data Analysis
In this attachment, both descriptive and statistics methods of data analysis were employed. Descriptive statistics like mean, standard deviation and percentiles have been used to explain
Basic characteristics of the channel members besides econometric models
3.1. Concept of Honey Production
Because of its infinite variation and origin it is easy to define honey. As a result different countries have their own definition of honey. Generally honey has two types of definition:
3.1.1Honey as an article of marketing
Honey is in fermented, sweet substance produced by honeybees from the nectar of blossoms or from secretion of living parts of a plant which they collect, transforms and combines with specific substances and store in a honey comb. Honey shall not have any objectionable flavor, aroma, or taint absorbed from foreign matter during it processing and storing and shall not contain natural plant toxin in any amount, which constitute a hazard to health.
3.1.2 Biological definition of honey
Honey is substance produced by honeybees and some other social insects from nectar or honey dew that they collect from living plants which they transform by evaporating water and by the action of enzymes them themselves secret. Honey is the most important primary product of beekeeping both quantitative and an economic point of view. It was also the first bee product used by humankind ancient times. The history of the use of honey is parallel to the history of man and in virtually every culture evidence can be found of its use as a food source and as a symbol employed in religious, magic and therapeutic ceremonies an appreciation and reverence it owes among other reasons to its unique position until very recently, as the only concentrated form of sugar available to man in most parts of the world.
3.2 Characterization of honey Production in Gomma Woreda
3.2.1. Average honey owned by households
The assessment on average honey production on the farming household depicted the existence of large difference between total average volume of beeswax and honeycomb owned by individuals i.e. 17.24 and 6.23 volumes of honey production, respectively. The assessment further indicated higher ranges of total honey production among the respondents (range=68) which is big figure not yet reported in any honey producing kebela in woreda. The result has thus figured out the opportunity of Ethiopian honey producing farmers than any other African country.
3.2.2. Honey production characteristics
Honey production is an important source of household income in the region. Gomma is one of the districts of Oromia Region with high potential for beekeeping development. According to Gomma BOARD (2012), the district has 18,567 honeybee colonies making it one of the high potential areas for developing beekeeping in the region as well as in the country. The annual crude honey produced in 2011/12 per traditional box beehives was 12.77 Kg and that of improved one was 35.75 Kg. The number of honeybee colony holding size for the production of honey per household by PAs in the sampled three PAs is summarized in table10. The entire 120 sample farmer’s honeybee colony holding size in this area ranges from 1 to 12 box beehives and the majority (62.5%) of sample farm household owned 1-3 bee colonies during the survey period. While 35 and 2.5 percents of the sample households honey bee colony holding size was 4-6 and greater than 6, respectively
3.3 Experience in beekeeping (EXP)
This is a continuous variable, it refers to the number of years the farmer engaged in beekeeping activity and is expected to influence supply of honey to the market positively. As farmers got more experience in beekeeping, the probability of increasing production and hence supply would be higher. Moreover, farmers with longer farm experience will have a cumulative knowledge of the entire farming environment. This in turn enables them to adopt the use of improved box beehives earlier than farmers with short beekeeping farm experience.
3.4. Honey Value Chain
the production chain is a trajectory that begins with the honeybee cultivation, that is, with the colony and the beekeeper. This is where the quantity of the product is determined. if the honeybee colonies are not tended well, very little can be done afterwards to improve the product. After harvesting, the products are usually extracted or dripped, but the beekeeper can also sell honeycomb product directly without extracted it. Honey that is crushed, dripped or centrifuged out of the comb can be marketed easier and can thus provide a better income. For this and other reason, such as the risk of crystallization, honey is marketed this way in most countries and preferably by the producer him- or herself. The added value of the extracted honey and beeswax processed in this way benefits the beekeeper. If he or she does not earn enough from these products production will be reduced. The beekeeper sells the honey either directly to the user (retail trade) or in large volumes to a trader (wholesaler) or a larger honey company. The letter refines the honey by heating, filtering and packing it into jars. In this way value chain is added again, although the honey is no longer raw and thus loses the properties of the fresh product. This type of processing is good if production is higher than local demand, because it increases the products shelf life, improves its presentation and makes export possible. If this is the case, it advantageous for the beekeeper or beekeepers association to supply the honey to such a company.
Honey Value Chain
Figure 1 honey value chain
3.5 Honey production and Marketing
Woreda production of honey during the 2012s was in excess of thousand litres (L) Per year. Beeswax production was more than litre per year. World demand for these products is substantially in excess of these amounts and is likely to increase even further. organization, 2012 data indicated that woreda trade in honey during the 2000s amounted to more than L per annum at an average price of about birr 65 per L. Woreda trade in beeswax amounted to about litre per annum with other place accounted for about one half of total imports with the market price average about birr 40 per litre. Much of this woreda honey production is gathered rather than framed, private sector modern production with many movable frame hives and inputs such as winter or out of season feeding and use of disease prevention measures is largely unknown in this district. The use of hives with removable top bars has been promoted intermit and often in a not very coordinated way in this woreda by government extension services. Almost all this district honey and beeswax is traditionally which is almost synonymous with inefficiently. The problem with all these traditional hives is that they engender low output; in district, for example, there were an estimated 60055 hives in 2012 which, based on organization, 2012 data for farmer production, is equivalent to 8.85kg honey and 0.95 kg wax per hive per year, although better beekeepers using long hives can achieve 15 kg per hive per year in more favorable areas.
3.6 Honey marketing channel
According to bureau data (2012), marketing channel is the sequence through which the whole of honey passes from farmers to consumers. The analysis of marketing channel is intended to
Provide a systematic knowledge of the flow of the goods and services from their origin
(Produce) to the final destination (consumer). During the practical attachment, the following honey marketing channels were identified.
Channel I Farmers → honey collector→ retailer →consumer (15.7%)
Channel II Farmers→ honey collector → consumers (9.7%)
Channel III Farmers → retailer → consumers (14.4%)
Channel IV Farmers → consumers (43.4%)
Channel V Farmer → honey collectors → consumers (9.4%)
Channel VI Farmer → consumers (7.4%)
As can be understood from fig 2, the main receivers from the farmers were consumers, honey
collectors, retailers and processors with an estimated percentage of 43.4, 34.8, 14.4 and 7.4
percent in that order.
34.8% 14.4% 7.4%
Figure 2 Honey marketing channel
3.7 Peculiarities of Honey production and Marketing
Profitability honey production has attracted most farmers due to higher farm income as compared to cereal production. production of honey and other product of honeybees allows for productive employment where the labor/land ratio is low as compared to other agriculture, since honey production is usually labor extensive. Increasing honey production contributes commercialization of the rural economy and creates many jobs. However, expanding the honey production is often hindered by lack of market access, market information, and many biological factors. The existence of large number of farmers (sellers) and limited number of merchants (buyers) particularly in the market, the bargaining position of farmers is usually weak. Besides the market structure, farmers and merchants may not have equal information from central transactions.
3.8 Price setting and terms of payment
The assessment indicated among all respondents, 80.5% of the farmers have reported as they don’t negotiate on price to sell their produce; indicating this large amount of producers are price takers. But 55.3 percent of the respondents stated the term of payment is conducted through cash in hand system. The selling strategy of the respondent farmers wasopen to any buyer. Thus, all producers sell their produce to anybody as far as they offer better price.
3.9 Labor in Honey production
The cluster analysis of sex by occupation have depicted 83 percent of the farming household rely on family labor for producing and harvesting of the product. As to the report, the labor for sorting is largely allotted to female while protect honeybees and bee hive. Thus above functions are covered by the family as opportunity cost but the cost for subsequent seasonal work such as: loading labor employment depicted that larger proportion of the household rely on family labor (especially child labor) for harvesting followed by hired labor (12 %)
3.10 SWOT analysis
In light of the stakeholder analysis, mixed focus group discussions are executed with farmers and traders to draw points of interventions and to address constraints by promoting the strength of the chain. For this purpose, internal weakness and strengths of actors and external
Opportunities and threats are analyzed under categories of economic, social, technological, demographic and institutional themes. The main results of the SWOT analysis are listed under.
Improving road access
Poor value addition activity
Increasing telecom service
Potential to growth production
Absence or poor post harvest technology
Accumulated traditional knowledge
Self preparation of hive bee
Poor market information
Rare informal communication
Lack of organized catering
High number of market functionary
Potential to increase area and production
The producers not satisfied with the price they received
High supply driven channel
Scope of value added niche product
Adversarial, with the hiding of information
Delay in price payment
Table 2 SWOT Analyses
5. Limitations during Practical Attachment
The main limitation of this study was mainly related to coverage of this area. There are a number of known zone in honey production in the region. However, the study focused only in Gomma District due to budgetary and time limitations. The other limitation of the attachment was that, this study being the first in the District lack many detail investigations.
Lack of institutional capacity: The organization lacks the required capacity-physical, human and logistics- to reach the neediest people in remote locations.
Even these lack adequate capacity and incentives and this impacted a smooth implementation of the programme. Regular monitoring and evaluation is hampered due to low staff and logistics. The markets are purposively selected based on their relative importance for avocado and mango market. However, the study is focused only in Gomma Woreda due to budgetary and time limitations. Congruently, lack of record keeping by chain actors was a challenging to collect relevant information in the channel. Thus, key informants and secondary sources are extensively used to complement preliminary information and to understand rationality behind the status of the market chains
6. Conclusions and Recommendations
The practical attachment was conduct with the objective of understanding the marketing system of apiculture production in Gomma district of Oromia region with specific focus on honey. Honey has been identified in the district as a major cash income generating commodity. Honey in the district is important market oriented commodity. Gomma district has high potential in honey production. There are about 10,567 honeys bee colonies in the district out of which 2740 are improved box beehives. The price of one honeybee colony is Birr 150 in the study area, pure and crude honey costs on average Birr 65.00 and 55.00 per kg respectively.
The data were generated by individual interview using pre- tested questionnaires and a rapid market appraisal technique. This was supplemented by secondary data collected from m different published and unpublished sources. A total of 15 beekeeper farmer respondent’s
(11males and 4 females) were selected randomly from a list of 988 beekeepers from 3 Pas in the district.
Majority (80%) of the respondents had about 3-8 years of beekeeping experience and the average years of experience acquired for the entire sample was about 7 years.
The district Office of Agriculture and Rural Development is the center of extension providing institution with three development agents assigned in each PA to support farmers. About 84 percent of respondents had access of extension contact with different frequencies. The remaining percentage (16%) of respondents reported no extension contact.
Quantity of honey supplied to the market passed through different marketing agents from farmers to consumers. About 43.4% (4876 kg), 34.8% (3921 kg), 14.4% (1622 kg) and 7.4%
(838 kg) of the total honey marketed were purchased by consumers directly from producers,
Honey collectors, retailers and processors, respectively in 2012/13.
Possible recommendations that could be given on the basis of the practical attachment so as to be considered in the future intervention strategies which are amid at the promotion of honey production and marketing of this area were as follows:
This result verifies that education develops the willingness of the beekeeper household to allow new technology and information which in turn widens their readiness to produce more and thereby raises honey marketable supply. Accordingly, the district ARD and other apiculture development partners should give weight practical supported beekeeping training in which focused on pre and post harvest management of honey production and marketing.
The positive significant effects of the variable propose that by improving productivity of the household, sale volume of the commodity can be expanded. This believed to happen duet o the introduction of improved box beehives. Therefore, increasing the distribution of improved box hives accompanied by safety protective materials for farmers of the district would bring additional marketable supply of the produce.
The availability of timely and precise market information increases producers’ bargaining capacity to negotiate with buyers of their produce. In order to obtain this advantage there is a need to improve extension system which focused on market extension linkage farmers with markets is necessary to ensure a reliable market outlet for beekeepers of the study area. This should be further strengthening by marketing organizations such as cooperatives and other honey marketing institutions to involve in communicating the honey produces and the ultimate consumers so that farmers can sell their produce at reasonable prices.
Beekeeping is culturally defined as a men’s occupation. This was also indicated by the result of descriptive analysis therefore, women should be encouraged to participate and receive training and intuitional support in the form of credit in improved beekeeping methods. Major problems of beekeeping identified and prioritized in the study area were feed shortage , pests and disease of honey bees, lack of beekeeping materials, death of colony, marketing problems and lack adequate beekeeping management skill. Therefore, providing the necessary exposure and skills, and institutional support in the form of credit, training, experience in improved beekeeping methods and marketing linkages need to be addressed simultaneously. All the problems faced by beekeepers cannot be addressed by a single organization, various actors: including research, extension, decision makers, input suppliers and credit agencies need to be collaborate in search of appropriate solutions and implement them.
,S.O.1990.Beekeeping in Africa. Agricultural Services Bulletin 68/6. Food and
Agriculture Organization of the United Nations Rome1990 .http://www.fao.org/docrep//to104e00.htm.
Gomma district Agriculture and Rural Development Office (2012)