THE HONEY TRADE: EXPERIENCES FROM KENYA
Vip Kumar, Kenya

CHALLENGES & OPPORTUNITIES - The African perspective

Sector Partners

• P - producers, beekeepers, communities, groups
• P - processors, packers, private & commercial sector
• P - partners, NGO’s, donors, government, regulatory bodies
  


• Consumers

Producers' needs

• Income generation
• Ready buyers
• Information - technical, markets, trends
• Localised solutions / assistance
• Support for bee-keeping equipment

Processor needs

• Non-fluctuating purchase price
• Reliability of supply
• Easier access / availability of honey
• Quality / consistency
• Quantity / economies of scale
• Effective communication with producers (KHC)
  

Regulatory Requirements

• Trace product origin
• Coordinated / organised supply
• Single voice from honey sector (KHC)
• Standards & codes of practice (KHC)
• Ultimate self regulation (KHC )

PRODUCERS, PROCESSORS, MARKETS

Internationa Market - EU, USA, ASIA

• Matured markets
• Historically established players and structures
• Larger Volumes preferred (homogeneous, 16,000 kg minimum)
• Consistency of supply
• Controlled by Global Pricing - approx 1200 – 2000 USD per tonne delivered (Organic certified)
• Value add down stream favoured (pack at destination)
• Operating at HIGH END SCALE
• Quality standards set are high (generally favouring large producers)
• Poor historical African experience
• High transportation costs included in price (20-40% of price)

Regional market - Eastern / Central, Western, Southern Africa

• Developing retailing environment
• Growing demand for choice, standards and quality
• Dedicated processors & packers forming
• Small volumes acceptable (1,000- 10,000 kg)
• Seasonal supply understood
• Quicker payments
• No forex loss
• Guaranteed market (shortage exists!!)
• Local pricing supported (generally higher then global by up to 100%)
• Facilitates informal & formal producers (forming majority of producer landscape)
• Appropriate scale for regional development
• Regulatory & Trade frameworks emerging (KHC, GOVT POLICY, REGIONAL TRADE BLOCS)
• Poor consumer experience being overcome

Domestic market

• Rural consumption opportunities
• Semi formal & formal markets the norm
• Easier to grow and scale up within region
• Replicability across the region is possible ( HCA experience)
• Smaller volumes acceptable ( 200- 2,000 kg)
• Seasonal supply understood
• Greater support from other stakeholders
• Local transport systems can be used
• Market linkages geared for small scale producers
• Need for better producer organisation
• Local pricing supported
• Cash payments
• Facilitates informal & formal producers
• Regulatory & trade frameworks emerging (KHC, GOVT POLICY, EAC BLOCS)
• Consumers largely remain disappointed (changing trend)
• High tech environment not necessary
• Communication between producers & buyers easier (mobile phone, sms)
• Direct access from the key rural trading areas to market
• Verbal agreements accepted as normal
• Lower transaction costs for all concerned
• Credible sector and formalised is key to future growth
• Self regulation becoming necessary as markets grow

Challenges

• Producers small & fragmented
• Products sold to anywhere / anyone
• Seasonality
• Climate & environment
• Geographical spread
• Dedication to beekeeping?

Opportunity

• Growth potential large (although accurate figures are difficult to obtain)
• Kenya net importer
• Tanzania / Zambia / Ethiopia key sources
• Variance in quality
• Excellent variety of honeys
• INSUFFICIENT SUPPLY!!

Way forward

• Grouped voice & management
• Sharing of resources
• Apply best practices and skills
• Develop a hive maintenance culture
• Effective communication
• Ensure good skills & knowledge transfer
• Harvest on time
• Regular inspection
• Local support
• Support differing technologies
• Use appropriate harvesting methods
• Correct handling storage from hive to mouth
• Improve on the use of correct equipment
• Increase the knowledge from producer to consumer
• Processor & producer direct partnerships
• Market commitment from processors
• Cumulative collection from organised centres
• Building of longer term partnerships
• Commitment and level of ownership from beekeepers
• Distribution and correct placement of hives
• Management of existing hives
• Organization into groups and its management
• Correct level of skills and tools made available
• Timing of harvesting & collection is critical
• Ongoing service provision post harvest
• Climate - temp water humidity
• Vegetation & environment preservation
• More beekeepers required
• Co-ordination between credible existing sector bodies (KHC, TZA, ZAMB, UG etc.,)

KENYA HONEY COUNCIL

KHC CHARTER

• Self Interest group (market driven)
• Voice for processors, packers, producers
• Resource / reference for other stakeholders in sector
• Setting standards for the honey industry
• Promote high quality Kenyan honey
• Develop beekeeping /honey sector in Kenya
  
  
• PROMOTE KENYAN HONEY CONSUMPTION

  Download Vip Kumar's PowerPoint presentation here (688kb .pps file)