Bees/o; Development Journal 88
IN
HONEY
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UGANDA
Janet Lowore and Nicola Bradbear Trade enables the benefits of beekeeping to be translated into income for beekeepers: The greater the volume of honey trade, the more income
Honey trade
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realised by beekeepers. This is the premise upon which Bees for Development has been working in Uganda since March 2007. Our Project, Strengthening trade in honey and other bee products in
BEES FOR DEVELOPMENT
STRENGTHENING TRADE
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Uganda, has taken a market literacy approach. This means working within the existing market system, understanding the parts of the market chain that are not working well — in terms of income for beekeepers — and addressing them. A major principle of this approach is the avoidance of establishing artificial structures or processes reliant on the
Project. Working with our partners, The Uganda National Apiculture Development Organisation (TUNADO) and the Uganda Export Promotion Board (UEPB), the Project quickly needed to gain a good understanding of the existing market system.
Honey is promoted at the agricultural trade show during the Commonwealth Heads of Government Meeting in Kampala, 2007
Existing market system There are thousands of beekeepers in Uganda, harvesting and selling honey. Honey is either used locally or is transported to distant markets
associations, for example Connoisseur, Kabarole and Kamwenge Associations. Larger packers, such as Bee Natural Products, also aim pack honey sourced directly from beekeepers. However, they have fa___ challenges because they operate on a larger scale and achieving largescale supply via the direct to packer route requires a high level of organisation. The packed honey is sold in shops in towns and especially Kampala. There are many reasons why the direct to packer
such as the capital city, Kampala. Local markets can quickly become saturated because they are by definition small. Distant markets offer growth potential, but how do beekeepers in remote areas access markets that are far away? There are two main routes: the trader route or the direct to packer route.
The trader route involves a series of traders buying and selling honey, until the honey arrives at a final market point. Arua Park is a well-known honey trading location in Kampala, where honey from the trader route
route is more likely to lead to real development for the beekeepers, compared to the trader route, but it is more difficult to achieve.
can be found in large quantities. It is often transported in yellow jerry cans, may be semi-processed and of varying quality.
What about price? Which route delivers more income to beekeepers? Intuitively most of us think that a short market chain means producers will be able to negotiate a higher price per kilo, but this is not always the case.
The direct to packer route involves a packer buying direct from the beekeeper. Currently this happens particularly with beekeepers’
The two main routes to market for honey in Uganda
Disadvantages
Advantages Most honey is traded in this way without donor support. This means the trade route works and is sustainable
This route works for almost any quantity and quality of honey which makes it easy to access for any level of beekeeper Beekeepers can sell at ‘farmgate’: an easy way to sell
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Beekeepers are not motivated to increase production because the trader to whom they sell does not motivate them. Rather traders try to push the price down by telling them the market is flooded Quality control is difficult No traceability
Small amounts of cash are moving through the chain all the time, so there is no need for any player to have much working capita! locked up at any one time.
Traders are opportunistic and do not invest in the industry No premium for high quality honey
A beekeeper who wants to produce a larger volume of honey (eg one tonne), may not find a trader able to buy it all at farmgate.
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Disadvantages
Advantages
The direct to packer route is easier on a Small-scale than on a largescate. On a large-scale this route has the following challenges:
Shorter market chain
Traceability Good communication between packer and beekeeper can be achieved — this motivates beekeepers
Serious packers need a large volume to achieve economy of scale this presents an opportunity for beekeepers to harvest more and
Because the packer needs to focus on honey {to cover the cost of their investment) they need larger volumes to achieve economy of —
earn more
Easier to establish the quality control systems that are necessary tor
access to premium markets Beekeepers have a chance to participate in the market from a more informed position.
scale Cash flow difficulties, either to beekeepers who must bulk honey before sale (and wait for their cash) or to the packer, who is required to buy large volumes all at once in the honey harvest period Requires a collection centre that wil! have overhead costs and demands a level of organisation not needed by the trader route.
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