Final Report for WEEMA International

Yiyi Dong Kwadwo Frimpong Robel Haile Min Liu Anna Mary Schaffer Lucas Valente da Costa

SIPA’s Economic and Political Development Workshop in Development Practice

Improving household livelihoods with modern beekeeping and honey production in Ethiopia

May 9, 2016

COLUMBIA UNIVERSITY

SCHOOL OF INTERNATIONAL AND PUBLIC AFFAIRS

Workshop in Development Practice

Professor Eugenia McGill

Spring 2016

Final Report for WEEMA International

“Improving Household Livelihoods with Modern Beekeeping and Honey Production”

May 9, 2016

Team members

Yiyi Dong (yd2308@columbia.edu)

Kwadwo Frimpong (kf2444@columbia.edu)

Robel Haile (rh2705@columbia.edu)

Min Liu (ml3686@columbia.edu)

Anna Mary Schaffer (ams2468@columbia.edu)

Lucas Valente da Costa (lv2346@columbia.edu)

2

3

ድር ቢያብር አንበሳ ያስር “When spider webs unite, they can tie up a lion”

This is an old Ethiopian proverb that many of our

interviewees brought up during our research. In

the context of cooperatives, it provides a good

opening for the rationale behind recommending

the formation of one.

4

Acknowledgements

The findings on this report were made possible by the School of International and Public Affairs

(SIPA), at Columbia University and WEEMA International. The team of graduate students who produced

this report would like to extend a heartfelt thanks to SIPA, WEEMA International, Holeta Research

Center, Biovision Ethiopia, ACDI/VOCA Ethiopia, SNV Ethiopia, Sasakawa Africa Association (SAA),

GIZ Ethiopia, the Ethiopian Apiculture Board (EAB), COMEL Pvt. Ltd. Co, Apimondia, Zenbaba Union,

Tutu Honey, Slow Food Foundation and the people of Kololo and Mudula, Ethiopia. We would like to

extend additional thanks to the following individuals:

Assefa Amaledegne

Beza Hailu

Daniel Gebremeskel

Daniel Kebede

Eldad Girma Begashaw

Elizabeth McGovern (M.D)

Eugenia McGill

Gemechis Legesse

Ilona Vinklerova

Jenny McGill

Jim Krigbaum

Juergen Greiling (Dr.)

Kahlyn Keilty-Lucas

Kinfe Mamo

Lianna Tabar

Lulseged Belayhun

Negash Bekena

Paulos Desalegne

Roba Bulga Jilo

Samuel Thomas Ledermann

Scott Martin (Dr.)

Sintayehu Mengistie

Solomon Mengesha

Tewodros Belachew

Wondwosen Tsegaye

Wubishet Hailemariam

Yohannes Tsehai

5

TABLE OF CONTENT LIST OF ACRONYMS ............................................................................................................................. 7

TECHNICAL TERMS ............................................................................................................................... 8

EXECUTIVE SUMMARY ........................................................................................................................ 9

INTRODUCTION ................................................................................................................................... 11

Project Rationale ................................................................................................................................. 12

Background .......................................................................................................................................... 12

WEEMA International ............................................................................................................. 12

Political Context ....................................................................................................................... 14

Economic Context .................................................................................................................... 15

SNNPR and Kembata Tembaro ............................................................................................. 15

Honey Production in Ethiopia ............................................................................................... 16

Major Actors Shaping the Honey Sector ............................................................................... 17

Methodology ........................................................................................................................................ 18

Phase I: Development of initial work plan and research framework ............................... 19

Phase II: Desk research and contact sourcing ...................................................................... 19

Phase III: January field work .................................................................................................. 19

Phase IV: Analysis and initial recommendations ................................................................ 20

Phase V: March field work ...................................................................................................... 20

Phase VI: Analysis and final recommendations .................................................................. 20

Limitations and Constraints ................................................................................................... 20

FINDINGS ............................................................................................................................................... 22

Honey Production ............................................................................................................................... 23

Regions ...................................................................................................................................... 23

Issues in Honey Production .................................................................................................... 25

Honey Market ...................................................................................................................................... 28

Major value chains relating to smallholder beekeepers ..................................................... 28

Demand ..................................................................................................................................... 31

Market Distortions and Inefficiencies ................................................................................... 36

Rural versus Urban Consumer Preferences ......................................................................... 38

Other bee products: wax and propolis .................................................................................. 39

Shaping the Market .................................................................................................................. 40

Cooperatives ............................................................................................................................. 41

6

RECOMMENDATIONS ........................................................................................................................ 44

1. Conduct a baseline survey to understand the current production capacity ........................... 45

2. Encourage WEEMA to promote market awareness training .................................................... 46

3. Continue with capacity training for the beekeepers ................................................................... 47

4. Initiate the process of cooperative formation ............................................................................... 47

5. Expand relations of the newly formed cooperative to large market players i.e. unions

and/or processors ................................................................................................................................. 48

CONCLUSION ........................................................................................................................................ 49

REFERENCES .......................................................................................................................................... 51

INTERVIEWS CONDUCTED .............................................................................................................. 55

ANNEXES ................................................................................................................................................. 56

Annex I. Summary of recommendations with idea of timeline .................................................... 57

Annex II. Details of conducting a baseline survey to understand the current production

capacity .................................................................................................................................................. 58

Annex III. Details of encouraging WEEMA to promote awareness training .............................. 61

Annex IV. Details of continuing with capacity training for the beekeepers ................................ 63

Annex V. Details of initiating the process of cooperative formation ............................................ 65

Annex VI. Details of expanding relations of the newly formed cooperative to large market

players i.e. unions and/or processors ................................................................................................ 67

Annex VII. Summary of interviewees’ current use of beeswax .................................................... 68

Annex VIII. Field trips photo album ................................................................................................. 69

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LIST OF ACRONYMS

ACDI/VOCA Agricultural Cooperative Development International/Volunteer In

Overseas in Cooperative Assistance

ASPIRE Apiculture Scaling-up Program Income for Employment

EAB Ethiopian Apiculture Board

EPRDF Ethiopian People’s Revolutionary Democratic Front

EU European Union

FCA Federal Cooperative Agency of Ethiopia

FHI Food for Hunger International

GDP Gross Domestic Product

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

(German Society for International Cooperation)

NGO Non-governmental organization

SRFCF Southern Region Farmer's Cooperative Federation

SIPA School of International and Public Affairs

SNNPR Southern Peoples Nations and Nationalities Region

SNV Stichting Nederlandse Vrijwilligers (Foundation of Netherlands Volunteers)

FCA Federal Cooperative Agency of Ethiopia

USAID United States Agency for International Development

WEEMA Water, Education, Economic empowerment, Medical, and Alliance

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TECHNICAL TERMS

Bee products1

Honey: A thick liquid made after bees collect nectar from flowers and process it in their bodies, when it

mixes with enzyme; after a process of regurgitation and evaporation honey is put in the bee comb. Usage:

antiseptic and antibacterial, used in medicine with many claimed benefits, including fighting cold, burns,

wounds, infantile gastroenteritis and infections.2

Tigray (white) honey: One of the world's most refined honeys and the most praised in Ethiopia, it is

bright white, with good consistency and large grains with homogeneity. It has a very intense flavor. Its

color comes from the blossom of the labiates family (like sage)

Propolis: A resinous material that bees use to seal small cracks and gaps in the hive (bee wax seals the

larger gaps). It’s made when bees collect resin from trees and other sources and mix it with a honey.

Usage: antiseptic and antibiotic, used in medicine.

Beeswax: A natural secretion from wax glands on the sides of the body of honey bees and is used

primarily as a building block for the bees' honeycomb cells in which the young are raised and honey and

pollen are stored. Ethiopia is the top producer in Africa and ranks amongst the top then producers in the

world, but only exports 10% of its production.3 Usage: candles, skin care products, furniture polishers.

Tej (Honey wine): It is an alcoholic beverage (7 to 15% alcohol content) made by fermenting honey and

mixing it with water and, sometimes, fruits.

Value chain and value chain analysis

Value chain: a set of activities through which value is added to the final output at each step of

production.4

Value chain analysis: an analytical tool to identify the activities that create value for the final output and

understand how each step can be further improved to deliver better values.

Cooperative or co-op: an organization jointly owned and managed by a group of individuals who share

profits of economic activities based on each individual’s contribution.

Union: a confederation of cooperatives who practice joint marketing and profit-sharing activities to reach

broader markets.

1 Tan, Ruth. “Benefits of Honey.”; Nordqvist, Joseph. “Honey: Health Benefits and Uses In Medicine.” 2 African Business Magazine. “Honey: Ethiopia's Liquid Gold.” 3 Legesse Yadeta, Gemechis. “Beeswax Production and Marketing in Ethiopia.” 4 The Economic Times. “Definition of ‘value chain’.”

9

EXECUTIVE SUMMARY

WEEMA beekeeper and her son in front of their traditional and transitional hives in Mudula town

10

Ethiopia is the largest producer of honey in Africa. Even so, the country does not produce nearly

as much as it potentially could. As honey gains more and more attention from the government, NGOs,

and the private sector, efforts are increasingly being devoted to strengthening the honey value chain. On

the NGO side, organizations like WEEMA International are working with individual beekeepers, in

Mudula and Kololo, to help improve quality and quantity of honey production with more modern

techniques, with the ultimate goal of improving incomes and livelihoods.

The workshop project for this SIPA team thus concerns this main objective of helping individual

honey producers’ access larger and more lucrative markets, thereby increasing their incomes. In order to

be able to produce recommendations for WEEMA, we had to better understand in general how the honey

market and honey value chains operate in Ethiopia. In addition, the team learned about the specific

context in which the local beekeepers operated. To complement our desk research, we travelled twice to

Ethiopia, where we conducted interviews, gathered data, and held focus group discussions.

Through our research, we found honey production capacity within Ethiopia, but also the region

in question, is constrained by issues with inputs, technology, management, and climate. Continued

efforts to address these constraints will, over time, enable the country to reach its full production

potential. On the market side, there are different value chains depending on the situation of the

individual beekeeper, as well as the proposed end use of honey produced. Within all these value chains

exist issues of market distortions and inefficiencies, including the following: market underdevelopment,

inconsistent supply, market fragmentation, information asymmetry, and lack of quality standards and

control.

One significant way in which actors are trying to improve market linkages is through

cooperatives. This is a strategy that we, too, would also like to recommend to WEEMA, in addition to

continued efforts to increase production capacity and the awareness of the benefits of beekeeping as an

income-generating activity.

11

INTRODUCTION

Different types of honey for sale in Mercato, in Addis Ababa

12

The following report outlines the final product of a workshop consulting project carried out by a

team of SIPA graduate students. The team analyzed a beekeeping and economic livelihoods project of

the NGO WEEMA International (“WEEMA”) in the southwest of Ethiopia. The workshop project was

conducted over the course of six months. The following sections will outline the direction of the project

and conclude with our findings and recommendations.

Project Rationale

Ethiopia has a long history of beekeeping. Despite this fact, the country is still for the most part,

using traditional practices, thereby hindering its ability to reach full honey production capacity. Thus, to

help local communities improve their honey production quantity and quality and increase household

income, WEEMA’s project, “Improving Household Livelihoods with Modern Beekeeping and Honey

Production” has provided technical training and equipment to local beekeepers and supported their

transition from traditional beekeeping to more modern techniques of beekeeping.

While still in the early stages of the development of this project, WEEMA enlisted the assistance

of the Columbia SIPA team to assess, identify, and recommend how best to improve their beekeeping

project in order to further create positive and sustainable impact for its beneficiaries. The SIPA team

focused on the following main objectives:

1. Market value chain assessment of honey and other bee products in Ethiopia

● Gather and synthesize information regarding the Ethiopian honey value chain and

markets that will be relevant for the beekeepers.

2. Mechanisms on Establishing Cooperative(s)

● Identify and gather information on the process of building cooperatives in addition to

best practices and lessons learned by other honey cooperative(s).

3. Final Recommendations on Expanding the Project

● Based on the above findings, provide some recommendations on how best to scale up the

beekeeping project taking into account short term and long term objectives and any key

risks and assumptions. More details of implementation of the recommendations can be

found in the annexes.

Background

WEEMA International

WEEMA International, a U.S. based non-profit organization focusing exclusively on Ethiopia, has

been working in southwestern Ethiopia since it was founded in 2011. Previously Mudula Water, WEEMA

13

WEEMA’s goal is to work

with local communities to

create conditions in

which people can thrive

and dream about a

brighter future.

International was founded with a mission of providing clean water for impoverished communities in

Mudula, Ethiopia (SNNPR).5 In 2013, WEEMA International expanded its work into areas of education,

economic empowerment, and medical services to address issues of poverty in the area.

The name WEEMA is a common term in the local dialect

(Tembarsa) – meaning, “hope”. The word WEEMA is also an

acronym for the organization's five areas of work: "water,

education, economic empowerment, medical services and

building alliance with local communities". With the goal of

promoting "economic empowerment", WEEMA International has

established 50 women’s self-help groups comprised of 1,000

women, trained 58 potters on how to produce clean cook stoves

from locally sourced materials, supported the development of a

“Persons with Disabilities” office within the local government,

and trained 70 local beekeepers to improve the quality and quantity of honey production in the region.

The latter project is the focus of our working paper.

WEEMA International’s head office in the United States is engaged in fundraising and

administrative work needed for the sustainability of its projects. The primary funding sources of WEEMA

International are generous donations from private foundations and individuals.6 Elizabeth McGovern

(M.D.), the founder of the organization is responsible for its overall strategy. Lianna Tabar, Director of

Operations and Programs Technical Advisor, leverages her years of experience working in Ethiopia to

manage WEEMA’s projects.7 In-country staff in Ethiopia is based in Addis Ababa, the capital of Ethiopia,

and Mudula in SNNPR. Tewodros Belachew, from Mudula himself, is the country representative of the

organization.

In expanding its efforts at promoting economic empowerment, WEEMA started the project

“Improving Household Livelihoods with Modern Beekeeping and Honey Production,” in 2014, in

Mudula and Kololo. Kololo and Mudula are small towns located in Kembata Tembaro zone, SNNPR,

Ethiopia. To facilitate the launching of the project, WEEMA brought in Kahlyn Keilty-Lucas, a

beekeeping expert, to lead the project. She is based in Spain and works on a voluntary basis to train

beekeepers. Additionally, Anito Alemu Ayele (Temesgen), a native of Tembaro and a carpenter by

training, manages the beekeeping project.

5 WEEMA International. “Brought Clean Water to People Living in Mudula, Ethiopia” 6 WEEMA International. "Clean Water, Education, Economic Opportunity, Health Care.” 7 WEEMA International. “Board Of Directors”

14

Figure 1: Map of Ethiopia, with focus on Mudula and Kololo in Kembata Tembaro, SNNPR . Source: UN-OCHA

Political Context

Ethiopia is a federal republic with a parliamentary system. The Federal Assembly consists of the

House of People’s Representatives (lower house; 547 members) and the Council of Federation (upper

house; 108 members); the nine regional state councils have limited powers, including that of appointing

members of the Council of Federation8. Addis Ababa has been the capital of the nation since 1887 when it

was established by King Menelik9.

Currently, the country is led by a coalition of political parties, the Ethiopian People’s

Revolutionary Democratic Front (EPRDF). The president of the country has a ceremonial role while the

prime minister has executive power. Prime Minister Hailemariam Desalegn was selected to the position

by the parliament after the sudden death of Prime Minister Meles Zenawi. In May 2015, Prime Minister

Hailemariam Desalegn was officially re-elected to the position with almost 100% of parliament votes.10

The Prime Minister is also the chairman of the ruling party. International organizations such as Freedom

House and Human Rights Watch have accused the government of Ethiopia of restricting opposition

political parties, freedom of speech and assembly, and other rights.

8 The Economist, Intelligence Unit. 2014. “Ethiopia.” 9 The Editors of Encyclopedia Britannica. “Addis Ababa.” 10 The Economist, Intelligence Unit. 2014. “Ethiopia.”

15

Economic Context

In the last decade, Ethiopia has shown remarkable economic progress. According to the World

Bank, between 2003/04 and 2013/14, the country’s economy grew at an average rate of 10.8% per year.11

Rapid economic development decreased extreme poverty rate in the country from 38.7% in 2005 to 29.6%

in 2010, measured by income of $0.6 a day or less.12 Ethiopia also increased water access and decreased

child mortality in accordance with the Millennium Development Goals. It has also made striking progress

in gender parity in primary education and universal primary education.13

Similar to many countries in Sub-Saharan Africa, Ethiopia’s economy is heavily dependent on

agriculture, which accounts for 40.2% of its total GDP.14 Over 80% of its population are farmers with a

significant number of smallholder farmers. The expansion of the agricultural and service sectors is the

main fuel for the country’s recent economic growth. 15 Manufacturing sector performance has been

relatively tepid.

To achieve the goal of making Ethiopia a middle-income economy in the next 10 years, the

government has pursued “state-led development” policies to achieve phenomenal growth. Government

investment in infrastructure, state enterprises and human capital accounts for 19% of the GDP. 16

However, some have questioned the sustainability of this state-led model given the government's

financial capacity and the rampant inflation disproportionately hurting the lower-income population. As

a result, the government is shifting its focus to the “export-led and labor intensive manufacturing sector,”

which includes “processing of agricultural commodities, leather, textiles, tobacco, garment production,

beverages, hides and skins.”17

SNNPR and Kembata Tembaro

The SNNPR is home to about 20% of the country’s population and contributes to its growth

through agriculture. It is also the most diverse region of the country in terms of language, culture, and

ethnic background.18 As of 2011, SNNPR’s poverty ratio falls within the middle range (at 28.9% compared

to 31.9% in Tigray and 28.3% in Dire Dawa) relative to other federal regions in the country, according to

the World Bank.19

Tembaro is one of the seven districts (Woredas) in the Kembata-Tembaro Zone. Within the

district, there are 20 administrative municipalities (Kebeles). Mudula town and Kololo, where WEEMA

launched their first project, is located in the center of Tembaro, "approximately 220 miles southwest of the

11 The World Bank, “Ethiopia.” Ethiopia Overview. 12 Ibid. 13 Ibid. 14 African Development Bank. "Ethiopia Economic Outlook." 15 World Bank. "Ethiopia Overview." 16 Looney, Robert. 2015. "Ethiopia’s Economic Miracle Is Running Out of Steam." 17 Olingo, Allan. 2015. "Ethiopia's Five-Year Plan to Grow the Economy." 18 WEEMA International. "Ethiopia and SNNPR." 19 World Bank Group, 2014. “Ethiopia Poverty Assessment 2014.”

16

In 2015, Ethiopia

produced almost 24%

of the honey in Africa,

being the number one

producer in the

continent.

nation’s capital, five hours in a four-wheel drive vehicle."20 Tembaro encompasses a diverse population of

different ethnic groups. The majority of the 130,000 residents in Tembaro rely on agriculture and livestock

to sustain livelihoods. Compared to the rest of the country, SNNPR suffers relatively less from drought

and food insecurity issues according to Famine Early Warning Systems Network.21 Transportation and

electricity infrastructures in the district are underdeveloped. Gravel roads have been built in recent years

connecting town centers, which is a beneficial factor that can facilitate beekeepers’ products to reach

farther markets at potentially lower costs.22

Honey Production in Ethiopia

Ethiopia is one of the largest producers of honey in the world. As of 2015, the country is the top

producer of honey in Africa while ranking amongst the top ten in the world. The country accounts for

23.6% of the continent’s total honey production.23 Honey production is an integral part of Ethiopian

culture. It is either consumed as a food supplement or is fermented to make the traditional alcoholic drink

(tej). Honey is also an important component of the Ethiopian diet; on average, Ethiopians consume 10kg

per year per household. Equally important, a significant amount of honey harvested every year is sold to

tej makers. What’s more, with a growing middle class, consumer

preferences are changing. As a result, it is expected that the demand for

more consumer goods, including table honey and tej, will continue to

increase.24

There are a number of favorable conditions that support honey

production in Ethiopia including the wealth of plant species and

different climate regions throughout the country. As a result, there are

many varieties of honey harvested from each region of Ethiopia. It is

even common to find different flavors of honey within a given region.

Generally, Ethiopian honey is known for its low moisture and high

nutrition content. But the qualities and prices differ between regions. For instance, Tigray Region honey

is known for its highest quality in terms of nutritional benefits and is the most expensive of all varieties.

Amhara, Oromia, SNNPR, Gambella and Benishangul-Gumuz region honey varieties have very good

qualities and are cheaper than Tigray honey. The types of honeys harvested range from light to dark

amber. Honey from SNNPR, our region of focus, is characterized by a blend of flora giving it a distinct

taste from other monofloral honey varieties in the country. Oromia, Amhara, SNNPR and Tigray regions

of Ethiopia produce 46%, 24%, 22% and 5% of the country’s total production, respectively.25

Despite Ethiopia’s significant position in the world, the honey sector is faced with many issues.

Low production capacity, inconsistent production data, changes in weather patterns and poor hive

20 WEEMA International. "Ethiopia and SNNPR." 21 Famine Early Warning Systems Network, 2016 “Large-scale food security emergency projected for 2016.” 22 Bestbridge. "Tembaro District." 23 USAID, 2015 “A Sweet Deal For Ethiopian Honey.” 24 Worku, 2015 “Synopsis, Diet transformation in Ethiopia.” 25 Miklyaev et al. 2014.

17

management are the common challenges. According to a USAID report26, more than 95% of the country’s

honey is produced using traditional hives (these types of hives deliver low yields and poor quality of

honey). Current honey production per annum represents only 11% of Ethiopia’s honey production

potential.27 According to recent government data, only 1% of the honey produced in Ethiopia is exported.

But honey exports have grown at an average of 9% per year from 2010 to 2014.The single major importer

of Ethiopian honey, both in terms of volume and value is Norway, followed by Sudan and South Sudan.28

Unaccounted amount of honey is smuggled to other countries as well. Most of the honey produced in the

country is consumed locally. Local demand has increased significantly in the last few years following

Ethiopia’s economic growth.

In the last decade, the government of Ethiopia, along with local and international non-profit

organizations and development agencies29, has given a much-needed attention to the honey sector of the

country. The government has integrated honey production with national level poverty alleviation

mechanisms. Honey is not only seen as a source of supplemental income, but also as a potential principal

means of living. From a developmental perspective, honey production is aimed to empower women and

vulnerable communities. Furthermore, beekeeping, in line with sustainable land practices, can be a tool

for climate change mitigation, which is something the government is interested in as Ethiopia is

particularly vulnerable to changing climate patterns.30

Major Actors Shaping the Honey Sector

Cooperative Agency of Ethiopia (FCA)

Through local and regional offices, the Cooperative Agency of Ethiopia has a mandate to assist

individuals to form cooperatives and link them to buyers at regional and national levels. The agency

assists groups in establishing cooperatives and further development through marketing and market

linkages. The agency is part of the government’s initiative to increase agricultural outputs to reduce

poverty in rural areas.

Ministry of Livestock and Fisheries

As is true of the Cooperative Agency of Ethiopia, Livestock Offices encourage the formation of

cooperatives and assist in the process. Livestock offices teach cooperatives about the different types of

honey qualities per market demand. In addition, they help facilitate credit from microfinance institutions

while offering technical assistance.

26 USAID. 2012. 27 Central Statistical Agency of Ethiopia. 2011. 28 Miklyaev et al. 2014 29 This is related with the government's initiative to invest more in the honey sector, since there is a lot of cooperation between some

development agencies and the government, like is the case of GIZ and USAID. 30 The government has actually launched in 2011 a “Climate Resilient Green Economy Strategy,” in which it highlights the efforts

Ethiopia is undertaking in order to create opportunities and combat climate change. Honey production, specifically, was mentioned

during our meeting with the Ethiopian Apiculture Board as a good way to mitigate climate change as beekeeping practices help

increase pollination and hence forestry.

18

Research Centers

Bee and honey research centers, which are part of the larger, government-run Ethiopian Institute

of Agricultural Research, such as the Holeta Beekeeping Research center (Holeta, Ethiopia), have played a

significant role in improving honey production, identifying natural constraints and opportunities

throughout Ethiopia. Holeta Research Center teams are currently working on mechanisms to mitigate the

effects of climate change, which is resulting in disruption of honey production throughout the country.

During our interview with Gemechis Lagasa from the research center, he demonstrated willingness to

work with WEEMA to provide drought resistant seeds suited for Kembata Tembaro Zone. Additionally,

the center has a team of dedicated scientists studying bees to better understand their patterns and

increase production.

Ethiopian Apiculture Board (EAB)

Ethiopian Apiculture Board plays a unique role of bringing different stakeholders from the honey

sector of Ethiopia on one platform. The multi-stakeholder platform includes government offices, unions,

cooperatives, NGOs and private companies. The platform helps each stakeholder identify constraints and

work in coherence with one another to improve quantity and quality of honey. Additionally, the board

explores potential international markets for promising producers. With continued financial and technical

support from donor agencies, most government initiatives such as the Ethiopian Apiculture Board have

continued providing services to multiple stakeholders.

Non-Governmental Organizations (NGOs)

NGOs are mainly focused on capacity building. They primarily work to fill in gaps along the

honey value chain. A few organizations focus on training and supplying materials needed for beekeeping

while others focus on market linkages and provision of information, which is needed to improve both

quality and quantity of production. Due to government regulations, NGOs are expected to file reports

and renew their licenses at the end of each fiscal year, which can relocate time and resources needed to

provide essential services. Nevertheless, this mandatory regulation is in line with the government’s

broader economic development agenda-Growth and Transformation Plan.

Methodology

Over the course of six months, the SIPA team analyzed market and community organization

structures with the objective of bridging the gap between Tembaro beekeepers and the honey markets in

adjacent cities or the wider region. We conducted extensive primary and secondary research to map out

the honey (and honey byproduct) market landscape and determine market demand, trends, and drivers

in the country. We also invested significant time with the local communities to understand current

operations and production processes and conducted focus group discussions to explore opportunities of

forming a cooperative. Additionally, we met with government officials to understand the role the

19

government plays in increasing honey production and market efficiencies. Throughout the process, we

took a hands-on approach in keeping contacts with the client. WEEMA and the SIPA team established a

close consulting relationship that enabled us to be in touch with client’s needs and be flexible in changing

course if required.

The project can be broken down into six phases: 1) development of initial work plan and research

framework, 2) desk research and contact sourcing, 3) January fieldwork, 4) analysis and formulation of

initial recommendations, 5) March field work, 6) analysis and final report.

Figure 1. Methodology and workflow

Phase I: Development of initial work plan and research framework

In the first phase of the project, our main objective was to establish a sound structural framework

underpinned by our overall research question of how to improve the livelihoods of local beekeepers.

Through communication with our client, we concluded that our work should focus on three main areas:

honey production value chain, honey market assessment, and cooperative formation. We planned to start

by gaining a national perspective in each area and then narrow down to the specific region of our focus.

During the process, we identified key risks and assumptions on both the country level and the town level.

Phase II: Desk research and contact sourcing

Our desk research surveyed multiple studies of honey value chain analysis within different

regions of Ethiopia. We gathered and triangulated key statistics of Ethiopian honey market from various

government, NGO, and association reports. In combination with the literature survey, we also identified

a list of beekeeping and honey market experts, large honey coops, processors, and exporters, and NGOs

with honey projects in Ethiopia. Our research also extended to include some basic knowledge of

beekeeping, supplemented with a visit with an organic beekeeper in upstate New York to learn more

about the daily practices of beekeeping.

Phase III: January field work

During the January field visit, the team conducted interviews with four key informants in the

government and non-profit space and also visited the Mercato market in Addis Ababa and three other

local markets near Tembaro. The team gained a preliminary understanding of WEEMA’s project through

visits and interviews with the local beekeepers in Mudula and Kololo.

Desk

research &

contact

sourcing

January

fieldwork

Analysis

and initial

recommend

ations

March

fieldwork

Final

analysis,

recommend

ations, and

report

Initial work

plan and

framework

20

Phase IV: Analysis and initial recommendations

The team conducted a stakeholder analysis and constructed a preliminary value chain analysis

after aggregating the information gathered from the January field visit to better understand the inter-

related dynamics amongst players in the market. The field work granted a more concrete understanding

and intimate knowledge of the local honey market dynamics within the country and enabled the team to

fill in gaps from preliminary research. We were able to modify our initial assumptions and formulate

initial recommendations to WEEMA.

Phase V: March field work

During the March field trip, we gained a deeper understanding of the local, national and

international markets building on the experiences of the January visit. We conducted over 20 in-depth

interviews with honey producers, processors, unions, cooperatives, middlemen, market experts,

consultants, development practitioners, government officials and exporters. We visited three local

markets close to Mudula and surveyed honey sellers in Addis Ababa. In SNNPR, we carried out two

focus group discussions with beekeepers in the WEEMA program to learn more about their beekeeping

business and their sentiments around forming a cooperative. We also implemented a questionnaire

survey with a sample of the beekeepers to collect data on their production level, revenue from honey

sales, and market linkages.

Phase VI: Analysis and final recommendations

The SIPA team aggregated the WEEMA beekeeper data and ran a simple benchmark analysis

against the national averages from previous desk research.31 We gained a deeper understanding of how

WEEMA had helped improve the livelihoods of the impacted beneficiaries through honey production.

The team also learned some of the key obstacles and challenges the beneficiaries have encountered.

Additionally, we perfected our value chain analysis by understanding how the Kembata

Tembaro zone is connected to the national honey market and identifying areas where more value can

potentially be captured by the local beekeepers. We were also able to develop an idea of price distribution

and honey product offerings (crude, processed, packaged, etc.) within Kembata Tembaro, based on our

market visits.

Limitations and Constraints

Due to limitations in both questionnaire design and communication issues, we experienced some

challenges gathering formation. The inconsistent sizes of the containers for honey storage made it

difficult to quantify the weight (in kilograms) of honey sold and affected the quality of relevant data. The

sample of beekeepers who participated in our focus group was not randomized. We selected our sample

based on the willingness and availability of beekeepers during particular days (i.e. a “convenience

31 We incorporated this qualitatively into our findings.

21

sample” technique). The two focus groups differed in both gender and location, making them less

comparable with one another. Although we triangulated the collected data, we acknowledge that we

were working with a small subset of the beekeepers in the program, which might not be representative of

the entire population. Nevertheless, the rough data gathered from the focus group participants provided

us some useful insights.

We also experienced difficulties collecting pricing data from local markets as our visits often

caused some commotion from crowds gathering. As a result, we did not collect as comprehensive and

accurate market volume and pricing data as we would have liked. The non-existence of packaging and

measurement standards presented another challenge to compare products across markets. However, we

see it as a fundamental market characteristic that we will further discuss in the Findings section.

22

FINDINGS

Focus group discussion in Kololo. Clay pots used for honey in the foreground.

23

Through our desk research and two field trips, we gathered significant information from many

actors. Important aspects of our findings revolve around honey production, the honey market, and efforts

to shape the market.

Honey Production

The story of honey production in Ethiopia is a story of potential. With 1.8 million smallholder

beekeepers in the country, managing more than 7.5 million bee colonies in hives, the potential for

production is roughly 500,000 tons per year.32 However, actual production is currently at 10% of that at

50,000 tons per year (See Figure 2, below).33 Thus, while Ethiopia is the largest producer of honey in

Africa, it has the potential to improve yields and produce more if existing beekeepers are able to

overcome significant issues regarding inputs, technical skills, and climate change adaptation.34 In the next

section, we will briefly describe the major honey producing regions followed by our analysis of key issues

with production, always focusing on the Southeast region (including Mudula and Kololo) of SNNPR.

Figure 2: Honey Production in Ethiopia (tons/year). Source: Central Statistical Agency of Ethiopia

Regions

Depending on the location and the amount of rainfall, beekeepers in Ethiopia can harvest one to

three times a year. The biggest harvest is the fall harvest (October-December), which happens after the

rainy season ends. Spring harvest (usually in May) brings in less honey, thus resulting in higher prices.

32 Mengesha, Solomon, interview, March 15, 2016, Addis Ababa, Ethiopia; Eyob Assefa, Head of Tutu Honey, interview, March 23,

2016, Addis Ababa, Ethiopia. 33 Miklyaev et al. “Honey Production in Ethiopia: A Cost-Benefit Analysis of Modern vs. Traditional Beekeeping Technologies.”;

Central Statistical Agency of Ethiopia. 2011. “Honey production and exports versus domestic consumption, 2007–2011.” 34 Fortunately for Ethiopia there is no issue of the varroa mite, a parasite that attacks bees and is common in other parts of Africa

(Apimondia, 2016).

24

SNNPR is the region

that produces the most

honey in Ethiopia, but

honey from Tigray is

the most reputable.

While northern regions generally have only one harvest (October-December), southern regions can have

at least two (April-May, October-December), making it very attractive to processors to buy honey from.

Thus, honey production differs greatly by region. Moreover, the concentration of technical skills,

advanced inputs, and honey types differs by region. Next, we will break down the major honey

producing regions relevant to our work.

SNNPR southwest (The Honey Belt of Ethiopia)

Through our field research, we learned that most bulk buyers purchase honey directly from the

southwest region. This region, often called the honey belt of Ethiopia, is known for its large honey

production. It has a perennially green natural forest and high flora. As a result, bees in the area benefit

from available flora and do not depend on beekeepers for foraging. Consequently, the region records

high levels of production with two to three harvesting seasons.

While most of the beekeepers still remain unorganized, the southwest has relatively strong, well-

established coops and unions for honey compared to other regions. They can be found predominately in

Kaffa, Benchmaji, Sheka, and Jimma zones.

Interestingly, even though the bulk of Ethiopian honey comes

from this region, sellers often do not market it as such. Due to the

popularity of honey from the northern regions of the country, many

companies tend to buy honey from the south and bring it to the north

for processing and packaging. These firms, which are registered in the

north, then label the honey as Tigray or Gojjam honey before

supplying to the broader market.

SNNPR southeast

Compared to the southwest of the region, honey production in the southeast (including Kembata

Tembaro Zone) is lower and beekeepers are less organized. Production is mainly a secondary activity in

the backyard and primarily with traditional hives. We learned from buyers that it is much harder to find

large quantities of honey with consistent quality from this area. This is not necessarily a question of poor

quality, but rather a question of organization and inputs.

Honey in this region can be multifloral, but when a high flora content is not available, the honey

can be primarily monofloral from eucalyptus trees, which is considered to have medicinal qualities.

Tigray Region

Tigray, the most northern region of Ethiopia, is famously known for its clear white honey, with

high medicinal benefits.35 Tigray is thus often used as a reference point for other honey producing

regions. Compared to other administrative regions, especially those in the south of Ethiopia; Tigray has a

comparatively smaller agricultural industry. This makes honey, which can be produced in harsher

climates, an important commodity for the region.

35 Although Tigray also has red and yellow honey types, white is the most common and most preferred.

25

The regional administration has put much effort on improving honey production. As a result of

increased efforts on inputs, the percentage of transitional and modern beehives in Tigray is 35% of total

hives, as compared to 10% in other regions.36 With this higher share of modern hives, Tigray is able to

produce relatively more honey despite low levels of flora and inadequate rainfall throughout the region.

At the same time, the SNNPR could be considered to be at an advantage compared to Tigray and other

northern regions. This is because the region suffers far less than the north from issues of drought.

Issues in Honey Production

Inputs and Materials

For Ethiopian beekeepers, beekeeping is a tradition that is often handed from previous

generations. Close to 90% of the country uses techniques from past generations.37 Many of the beekeepers

we spoke to in Mudula and Kololo cited that beekeeping was an activity inherited from their parents.

Such techniques yield, on average, only five to seven kilograms of honey per hive, per year, which can be

of lower quality with impurities such as grains, sticks, and dead bees.38

These cylinder shaped traditional hives are harvested by extracting the entire honeycomb from

the hive. Consequently, the beekeeper loses the bee colony, in addition to harvesting lesser quality honey

with many impurities. With this hive, it is also difficult to check the quality of honey before harvesting.

Efforts to transition to more productive and efficient hives are advancing, albeit at a slower pace. (A

section under findings will evaluate those who are shaping the honey value chain.)

Photo 1: Traditional beehives in Mudula

Modern hives, or Kenyan top bar hives, are closer to international standards of honey production

and produce a higher volume of honey at around 10 to 20 kilograms per hive per harvest. Nevertheless,

36 Mengesha, Solomon, interview, March 15, 2016, Addis Ababa, Ethiopia. 37 Central Statistical Agency of Ethiopia. 2011. “Honey production and exports versus domestic consumption, 2007–2011.” 38 Tesfaye, interview, March 17, 2016, Durame, Ethiopia.

26

the cost of the hive and materials involved currently make it a less viable option for smallholder

beekeepers, like those in Mudula and Kololo. These hives require purchasing beeswax in order to

construct the inside frame needed for honey production. In addition, modern hives require skill to

manage and are costly to obtain (with prices of new hives ranging from 630 birr in rural areas to 1,800

birr in Addis Ababa).

Photo 2: Modern hives in Angacha co-op, used for communal honey production.

On the other hand, the transitional hive or chafaka hive can be made with locally available

materials. It has a production capacity of around 8-10 kilograms per hive per harvest.39 Both transitional

and modern hives enable access for quality checks and can produce multiple harvests. Both require the

purchase or transfer of a bee colony to the hive (350-500 birr per

colony), whereas, bees naturally swarm to traditional hives.40 Many

beekeepers surveyed in Mudula noted that a lot of their hives were

empty. Many did not have the funds to buy new colonies; instead,

they wait until they are able to catch a new swarm.

39 Ibid. 40 Price of bee colony from Angacha Cooperative, 2016.

The Langstroth

hive

In the United States, the

Langstroth hive is the

most widely used and

the standard in

international

beekeeping. It was

patented in 1852 and has

specific dimensions that

optimize honey

production.

27

Photo 3: Transitional hives

Packaging can also be an issue as it can significantly affect the quality of honey harvested. Food

grade containers are difficult or expensive to obtain. As a result, many in rural areas use clay pots. These

handmade clay pots vary in size leading to inconsistent measurements. In our discussions with several

beekeepers, we learned that they did not properly quantify, in kilograms, their productions. This lack of

standardization may mean that they were under calculating their honey to be sold, and thus losing

profits.

Photo 4: Honey being sold in clay pots, buckets and 1kg plastic jars in Hadero market.

28

Drought and Harsh Climate Conditions

Drought and extreme climate variation also pose an issue to honey production. Beekeepers in

Mudula and Kololo cited issues such as bees absconding and leaving hives empty as a major challenge.

They also noted that deforestation, lack of flowers and water, and hot weather were also part of the

problem. While it is difficult to operate in a harsh environment or drought, beekeepers can take certain

steps to help mitigate the effects of weather. According to a University of Texas at Austin report, rainfall

variability will potentially decrease poverty reduction by 3 to 4% over 2011 to 2015.41 SNNPR ranks as the

region least vulnerable to climate change while Tigray is subjected to higher frequency of drought and

flooding. The disproportionate impacts of climate change on the northern and southern regions may

provide a comparative advantage to SNNPR in honey production.

Technical Skills and Management

Per discussions with representatives from coops, unions, and processing/exporting companies,

we learned that the capacity of participating beekeepers was a major issue. Beekeepers should have a

certain breadth and depth of knowledge in regards to beekeeping, which includes: building transitional

hives and catching bees, selecting an apiary site, ensuring security of the colony, harvesting, processing,

and switching from traditional to transitional hives.

In regards to mitigating the effects of weather, successful beekeepers should be able to recognize

a problem in their hive and handle it themselves. This can include creating shelter with available

materials to protect bees from heavy rain, wind, and sun. If bees need to travel farther than four or five

km to find water or flowers, they will most likely abscond. Beekeepers who provided water for their bees

(even just a bowl of water next to the hive) and proper bee forage (flowers through gardening) were able

to avoid the disruption of honey production.

Honey Market

Major value chains relating to smallholder beekeepers

The honey market in Ethiopia can be classified into different categories based on location or end

use of the honey sold. Features of each market vary as well as the target customers served whose

preferences may vary. There are a number of players involved in the honey production and distribution

process. Due to available resources, players have developed different business models to share profits in

the market. For example, producers in urban areas (e.g. Addis Ababa) with sufficient initial capital and

distribution channels can afford to acquire modern beehives and sell directly to supermarkets in big cities

at premium prices.

Beekeepers in rural areas with weaker market linkage, on the other hand, may only use

traditional beehives to produce limited quantities of honey and sell locally at a lower price. As for

41 Aragie. 2013. “Climate Change, Growth and Poverty in Ethiopia.”

29

smallholder beekeepers, two value chain options based on immediate buyers are most relevant and most

frequently adopted in their production and distribution of honey, as we will see in the coming sections.

Figure 3: Smallholder Honey Value Chain in Ethiopia

In the first value chain, beekeepers are responsible for honey production. Once they harvest, they

sell honey to middlemen in local markets (markets such as in Mudula or Hadero). Some middlemen

process honey before selling, while others sell raw honey. Depending on the quality and quantity of

honey purchased, retailers/wholesalers would determine whether to sell the raw honey to tej houses or

further process it and sell to retail customers in markets like Mercato in Addis Ababa. As for the

transactions with processors/exporters (mainly international trading companies), instead of processing

raw honey themselves, middlemen would sell fresh honey collected from beekeepers in bulk to

processors/exporters directly. Processors/exporters then process the raw honey with reference to

international standards and export to foreign countries, such as the United States, European countries,

and the Middle East.

In the sub-value chain with retailers/wholesalers, retailers and wholesalers sell directly to end

customers, thereby determining the price while reaping high profits. Normally, retailers or wholesalers

maintain a long-term relationship with certain middlemen from different areas across Ethiopia to ensure

continuous supply of honey to diversify the risk of buying solely from one location. Similarly,

processors/exporters also keep closed relationships with certain middlemen who help them source honey

on a regular basis and beekeepers do not have much bargaining power to negotiate the selling prices.

Even though processors/exporters determine the purchase price from middlemen, they also face

fierce competition in international markets and are generally price-takers. Beekeepers, however, generally

do not develop relationships with middlemen and sell to customers in local markets as honey is currently

in high demand (convenience). On the other hand, middlemen, who are usually from large cities source

from several markets to take advantage of better prices and thus are not very committed to one specific

market. Such lack of mutual commitment between beekeepers and middlemen shape the interactions

between the two in low-level honey markets.

30

The value chain with co-

ops seems more desirable

since it makes a wider

range of interactions

possible and increases the

collective bargaining

power of beekeepers

Photo 5: Honey in Mudula market.

Unlike the previous value chains above where individual beekeepers work on their own, with the

promotion of cooperatives by the government, some beekeepers take the initiative to form cooperatives to

gain greater market power. By establishing cooperatives, beekeepers can gather their output together and

gain the assistance of members designated to work on marketing intelligence in the cooperatives to help

them negotiate better selling prices. Some unions may buy directly from cooperatives if the supply of the

cooperatives can meet quantity and quality requirements of the unions. Then unions, in turn, build

linkage with national retailers/wholesalers and exporters/processors to market all the honey collected.

There are successful examples identified in the market

(Angacha for cooperatives and Zenbaba for unions) who help

their beekeeper members improve market access and increase

their income level. Retailers/wholesalers and

exporters/processors would further process, if necessary, before

they deliver honey to both domestic and international end

consumers.

In this value chain, since the interests of the

cooperatives and unions are in alignment with those of

beekeepers, the two parties will usually help the beekeepers

obtain fair market prices. Consequently, the beekeepers benefit

and are not taken advantage over by middlemen as in other

value chains.

Actually it is implicit in the above analysis that the major value chains involving small

beekeepers in the honey market are shaped by other more powerful players rather than beekeepers. This

is an issue that will be explored more in the following sections. Whether the beekeepers are working in

the first value chain or the second one depends on various factors. For example, if some beekeepers are

31

located in remote areas with limited transportation options to larger towns or cities without additional

support from international donors, they may end up producing only for the local market and will rely on

middlemen to sell their honey. On the contrary, when support from the government and NGOs who

promote the idea of co-ops is more readily available, there is a higher likelihood that the beekeepers will

form these coops. For all existing co-ops, the majority of them were established as part of the

development projects of NGOs’ and/or the government.

Consequently, such co-ops are often well organized and the beekeepers are taken better care of

compared to their transactions with middlemen. However, the honey market is dynamic and constantly

evolving. When there are external forces, such as the efforts of exporters and the poverty reduction goals

of the government, the value chain with co-ops seems more desirable. This is because it makes a wider

range of interactions possible and increases the collective bargaining power of beekeepers to obtain

higher selling prices resulting in increased income.

In analyzing the honey market in Ethiopia, we are not benchmarking to other honey markets in

Africa. This is because Ethiopia is actually the top performer or model in Africa compared to other

neighboring countries, according to Mulufird Ashagrie, Africa’s Representative for Apimondia (an

international federation of the beekeepers’ associations). While other countries, notably Kenya, have

strong honey markets, Ethiopia is one of the few African countries that does not suffer from parasitic bee

diseases. This currently gives Ethiopia an advantage relative to other honey producers on the continent.

Demand

The overall picture of the demand of honey in Ethiopia is very positive. As it will be seen in more

detail below, honey consumption has been increasing from only in special occasions or as medicine to an

everyday product. In fact, the domestic demand has been growing so much that the producers and

processors are still far from supplying the necessary amount of honey to meet this demand throughout

the country. The domestic market, as a matter of fact, has been more profitable to producers than the

international market. There is, therefore, a large market opportunity for producers, either small or large,

to meet this growing domestic demand.

The current demand for honey can be divided into three main categories: domestic table

consumption (23% of all honey produced), tej houses (75% of all honey produced) and large

processors/exporters for international consumers (2% of all honey produced). Through our research we

anticipate a faster increase in the demand of domestic table honey consumption. As the GDP continues to

increase and the middle class continues to grow, purchasing power will further increase among

consumers, resulting in a greater demand for table honey and tej. As will be seen, our recommendations

focus on the domestic market because all our interviewees mentioned difficulties gaining profitability in

the international markets. Costs to comply to international standards currently outweigh revenue made

internationally. On top of this, domestic prices are comparatively higher. For these reasons, the domestic

market still remains a hot market. What’s more, as Ethiopia does not import honey, the price is

determined mostly by the domestic consumption patterns and domestic supply.

32

The demand for

processed table honey in

Mudula has been

increasing, but crude

honey still represents

most of the consumption.

Domestic Table Consumption

Table honey is still mostly used as a gift given on special occasions, notably weddings, but also

used for medicinal purposes. Its use as an everyday food, however, is still relatively small in rural and

poorer areas of the country, including Mudula, where Mr. Adore, from the Livestock Office, estimates

that only around 10% of the households in the five kebeles consume honey every day.42 This means that

an estimated 90% of the honey in Mudula is only consumed on special occasions or as medicine or also to

make tej or briz, a non-alcoholic drink made of honey and water. The demand for table honey, however,

has been increasing, even in Mudula, mostly driven by the expanding middle class and changing

consumer preferences.

The final consumer, however, is the most affected by the price fluctuations due to the drops in

supply in between harvests. As demand is always high, honey is placed on the market and sold

immediately after it is harvested. If a final consumer in Mudula wants to buy honey in March or April,

for example, they will have to pay a higher price, because only very few producers are able to stock

honey to sell later at a higher price. The honey producers in Mudula

live mostly on a subsistence basis and therefore sell their honey

very cheaply as soon as they can harvest. This is because they need

immediate funds to complement their household budgets. Higher-

level honey sellers with sufficient cash reserves (e.g. retailers or

wholesaler) can afford to store honey to wait and sell when the

price increases during low-supply periods.

The honey demanded in Mudula is still mostly crude, thick

honey, with wax, bee parts, and other impurities. This is the most

common form of honey offered in markets in the region. This is

because this honey is seen as pure and demonstrates it has not been

modified or diluted in water. Processed honey can be found in very small quantities, but even those still

contain considerable amounts of impurities; the demand for this honey is more common in the urban

settings (e.g. Hadero or Hawassa). But, as previously mentioned, it represents only a small portion of the

honey demanded, as just around 10% of households in the five kebeles consume honey on daily basis. 43

42 The share is higher in urban Mudula compared to rural 43 Though this percentage is expected to increase with increases in income level.

33

Photo 6: Crude honey sold in clay pot in Mudula market.

With rough estimates of honey consumption in Mudula based on an interview with the Mudula

Livestock Office, we estimate that locals consume around 3,700kg per year of honey. 44 This represents

only about 10% of the population, since the vast majority do not consume honey on a regular and daily

basis.

In Addis Ababa, however, the situation is very different, with large quantities of honey found

year-round in the main supermarkets with stable prices for both processed and crude varieties. This is

only possible because the large processors that supply supermarkets have enough capital to stock and

continue supplying for supermarkets year-round, even when the producers may have run out.

In regional larger cities, like Hossaena and Hawassa, honey can still be found year-round in the

markets because these are more accessible markets to middlemen. Middlemen are able to buy honey from

different producers, large and small, across the region and have the means to sell honey in these markets,

which are more profitable than more rural markets in Mudula and Hadero, for example.

In the local market, however, prices change considerably when honey is sought between

harvests. Because only the few beekeepers that stockpile are able to sell at a later date, they can set the

price higher than right after the harvest, when all beekeepers reach the market to sell and the prices go

down due to the increased supply. Most of the honey sold is crude, which is compatible with the largest

demand segment, but there is one person who can process honey in Mudula and they can set the price

higher for people willing to pay for better quality honey.

Beekeepers from WEEMA are not yet at this level due to their lower production and need for the

immediate funds. These beekeepers live on subsistence and when they are able to sell their honey, they

almost immediately spend it on consumer goods, like school materials or clothes.

44 We assume here locals consume around two to three teaspoons of honey per day.

34

Tej Houses

Tej houses are the stakeholders that buy the majority of honey in the country; in Mudula,

however, the situation is a bit different. In the town there are only two tej houses but they are not major

buyers of local honey, the majority being for table consumption. The type of honey these two tej houses

buy is crude honey, but of an inferior quality than the crude honey bought for table consumption.

Photo 7: Tej house in Hossaena. Photo 8: Raw honey used to produce tej in Hossaena.

We visited a tej house in Hossaena, which was likely to be representative of the tej house

situation throughout the country. There, the quantity of honey demanded is so large that the managers of

the tej house need to have honey delivered from Addis Ababa, at an average of 600 kg of honey per

month (7,200 kg per year). The honey they buy is in large quantities but of lower quality, with a lot of

other elements other than honey (thus much cheaper) than the processed honey or even other types of

crude honey.45 This type of honey does not bring much profit to producers, since there is very little value

added. In Hossaena, for example, they pay only 37 birr per kilo of crude honey, as compared to more

than double that in the Mudula market itself. The difference in prices among these types of honey come

from cleaner and better harvesting techniques and processing methods. These techniques can be as

simple as letting the honey sit so that the lighter wax rises to the top and the liquid honey remains at the

bottom of the pot.

Large Processors / Exporters

Large processors or exporters' demand behavior differs from that of the previous two

stakeholders because they mainly buy honey from several different producers, even in different regions

45 By definition, honey should be only the liquid that the bees produce. If it's mixed with wax or any other solid particles, it's not

considered pure honey anymore. In Ethiopia, however, this definition is much looser. In this report we consider processed honey as

the honey with the least amount of wax, whereas crude for table consumption being next and crude for tej houses as the honey with

the most amount of wax, earth, bees and other impurities.

35

of the country. This reflects their high capacity and high quality, which can go to as much as 200 tons a

year, as is the case of Tutu Honey and Apinec (each), for example.

From the main processors we talked to (Comel Honey, Tutu Honey, Apinec), all buy honey solely

from co-ops or unions. The reason is that they can lower their transaction costs by spreading them across

the higher volumes of co-ops and unions versus dealing with hundreds of individual beekeepers. Buying

honey from co-ops and unions also helps them to meet certain quantity minimums and quality standards.

Photo 8: Honey being sold in Shoa supermarket in Addis Ababa

They buy crude and semi-processed honey and process it themselves in their processing center.

Interestingly, nearly all of them buy honey from the "honey belt" in SNNPR where harvesting can happen

more frequently than the northern parts (at two to three times a year). However, if the processing center

and the company itself is registered in Tigray, the honey is sold as being "honey from Tigray", which

increases the final price of the product due to the reputation of the honey from the north.

However, even with training and buying from established and strong co-ops, the large honey

processors complain that it is hard to meet the demand. Eyob Assefa, from Tutu Honey, one of the largest

honey exporters in Ethiopia said that, "they have only been getting half of the quantity they want from

the co-ops" and that "honey exporters are collapsing because they don’t have enough input to fulfill the

contracts." Daniel Gebremeskel, from Comel Honey, said that the processor is in the middle of the value

chain and cannot set the price, being a hostage of both co-ops and international buyers, who determine

the buying price. In this sense, he added that co-ops have strong bargaining power.

Mr. Assefa and Mr. Gebremeskel added that the international market is not paying as much as it

used to because of the heated competition in the market and large quantity at relatively low prices

supplied by China. Furthermore, the domestic market for table honey has increased so much that is more

advantageous to sell domestically. However, because the sunk costs to become major exporters are too

high, after having met the quality standards and already having a fixed market in Europe, they keep

36

exporting to hold their market position in the hope that prices will eventually increase abroad while

keeping an important market position.

Comparing the features of the three main types of end consumers and their requirements in

honey quantity and quality, domestic table honey may be the best target market to focus on since the tej

houses’ quantity requirements are beyond WEEMA beekeepers’ current production capacity and

international quality standards are extremely high to meet for export. Moreover, the perspective of

growing domestic demand is positive and Ethiopia is unlikely to saturate its demand for honey in the

medium term.

Market Distortions and Inefficiencies

Market underdevelopment

The honey market is largely incomplete and underdeveloped. Even though there is a wide

variety of honey within Ethiopia, outside of the specialty white honey from the Northern Tigray region,

product differentiation among honey in light to dark amber is largely nonexistent due to their

homogeneity and lack of brand recognition of honey from the southern region. As we have seen, sellers

tend to label their honey based on the company’s place of incorporation (such as Tigray in the north to

take advantage of the good-quality reputation) rather than the origins of the honey.

There is a lot of room for product development in the national market as latent demand does

exist. B Honey is one of the companies that took advantage of the market vacuum and made a successful

business by creating a new honey product that had not existed in Ethiopia before. The company produces

pure and infused honey packaged in glass jars46, initially positioned for export in the US or EU market.47

However, the unique product quickly carved out a niche in the upper-income, urban domestic market

and quickly gained popularity. To ensure the quality and supply of its honey, B Honey vertically

integrated through all levels of the value chain, from beekeeping to retailing, in order to better control its

production. The rapid expansion of B Honey testifies to the vast space of unfilled demand in Ethiopia that

could be developed with the right product developments.

Inconsistent supply

Honey processors or exporters experience supply chain shortage issues. It is difficult for them to

secure stable input of quality honey from beekeepers. The high sourcing costs and uncertainties of

establishing relationships with multiple small honey producers have caused considerable strain on honey

export businesses as they hinder their ability to fulfill large contracts and limit the competitiveness of

Ethiopian honey in the international market.

46 B Honey glass jars are bought from an importer that buys them from China. So far, only one size is available, 300g, which makes it

a far from sustainable business practice for B Honey. 47 B Honey infuse honey with a variety of other foodstuffs and plants by unique approaches. The flavors include coffee, lavender,

ginger, etc.

37

“ The honey value chain is very

saturated; there are too many

middlemen, too many people

involved, which increases the price

and decreases quality.”

Eyob Assefa, Tutu Honey Processor

Many large processors are seeking to shorten the supply chain by partnering with cooperatives.

However, the fundamental cause of supply shortage lies in low productivity as previously explained in

the honey production section. As over 90% of the beehives are still traditional with low yields,

establishing direct relationships with honey farmers alleviates but does not solve the root problem of

honey supply.

Tutu Honey, one of the largest honey exporters in Ethiopia with 200 tons of exports to the EU

each year, complained that they have only been getting half of the quantity they desire from co-ops they

work with, and the average output has been low, at five kg per hive. Comel’s Welela Honey, a smaller

player than Tutu, with production around 40 tons a year, faces similar problems as they look for

cooperatives with over six tons of capacity. There is ample

room to improve production efficiency with technological

advancements and modernized practices, as Ethiopia’s

current honey production is well under its potential. From

the vantage point of producers, working directly with

processors often means higher margins as the middle layer

of the value chain is eliminated. However, this requires

producers to have considerable scale to be able to work and

negotiate with multiple processors.

Market fragmentation and information asymmetry

Market fragmentation is another inefficiency faced by the honey sector in Ethiopia. Most

producers are small-scale who only operate in local informal markets. The resources required to access

larger markets are unattainable to most individual beekeepers without a sufficient production level and

marketing expertise. As a result, market linkages among different geographies are poor and information

asymmetry takes place as beekeepers are shut out from market intelligence. Middlemen take advantage

of the spot market landscape and saturate the value chain. The opportunistic nature of middlemen

distorts prices and provides little value added to the industry.

Market fragmentation is closely connected to the supply chain problem above. Government

projects such as ASPIRE48 are putting much effort into increasing market linkages by creating awareness

and providing technical training to local beekeepers. Being in touch with market prices and trends is

crucial for producers to understand their positions and get a fair price for their offerings. Once producers

scale up, they are able to gain access to larger markets and obtain more leverage to increase their profit

margins.

Lack of Quality Control

48 ASPIRE is a government initiative to help beekeepers build capacity through providing technical training with the Holeta

research center. It also serves to link beekeepers with resources that may be of use to them in the larger markets.

38

Honey quality is another problem the sector is grappling with as it develops. Adulteration,

premature harvest, and bad processing practices all contribute to the decline of honey quality. Even

though the government provides some guidelines on standards of honey, there is no enforcement.

License requirements for selling honey are lax and annual inspections very weak. Some middlemen, who

are only selling in local markets, are often unaccountable due to their lack of long term customer

relationships and traceability, which incentivizes them to sell low quality adulterated honey. As quality

issues become rampant in the market, consumers may lose trust and decrease their demand for honey.

This lack of quality control can deter the overall health and growth of the honey sector.

Rural versus Urban Consumer Preferences

Packaging Consumption Patterns Preferences

Rural Often packaged in clay pots

Lack of knowledge on

specific volume

Not consumed regularly as it

is more of a luxury good

consumed during special

occasions i.e. for weddings or

granting as gifts

Vast majority is sold to tej

makers and/or middlemen

Prefer crude unprocessed

honey

Bees flying around

and/or impurities (wax,

bee parts) in the honey

are perceived as high

quality; therefore local

sellers provide this type

of honey to meet the

demand preferences

Urban Usually packed in plastic jars

or large sacks in bulk i.e.

which is very common in

locations such as in Addis

Ababa

Glass jars are also used for

packaging differentiation

although this commands a

more premium price and is

targeted to wealthier

consumers

An increasing demand for

table honey due to a growing

middle class and increasing

knowledge of the nutritional

value

Tigray honey in the North

commands the largest

consumption due to its

premium brand and medicinal

qualities, followed by honey

from the Kaffa region.

Tend to prefer more

semi-processed honey

but preferences for more

processed honey are

increasing

Prefer to buy from people

they know/trusted

sources versus from the

supermarkets.

According to the World Bank, Ethiopia’s GDP per capita has risen to $573 as of 201449. This may

not seem that high but it is almost a three-fold increase from where it was eight years prior, in 2006

($194). This increase in wealth and disposable income held by an expanding Ethiopian middle class can

49 The World Bank, GDP: Ethiopia. The GNI per capita in terms of PPP is $1,500 (2014) also according to The World Bank.

39

partly account for the rising demand for table honey in the country. Meanwhile, overall GDP grew to

approximately $55 billion in 2014 from just $15 billion in 2006. As income per capita levels continue to

rise along with general macroeconomic expansion, we can expect to see continued trickle down effects,

boosting economic livelihoods also at the rural consumer level. As public awareness of the nutritional

benefits of honey expand, coupled with rising urban and rural income levels, the demand for domestic

honey will continue to grow.

Other bee products: wax and propolis

Honey is not the only product that bees can produce. In fact, all other bee products - mostly

beeswax and propolis - are more valuable than honey. During our field assessment, our focus was mostly

to sense the market for beeswax, since we considered propolis to be too much of a niche market to be

viable in Mudula.

In Mudula there is effectively no production of wax or propolis, despite efforts from the

government in trying to incentivize wax production. The Livestock Office already mobilized beekeepers

to produce wax but those who engaged in producing it could not find a market for the product.

Therefore, despite beeswax being expensive and in high demand, especially internationally (EU,

Canada, China), there is no perceived value of it in Mudula, which is precisely what the Livestock Office

is trying to address, arguing that it can be sold for 600 birr per kilo in the market at Hawassa. Even with

this positive and promising outlook, we do not think that the beekeepers in Mudula should presently

engage in its production. It is preferred to focus efforts on increased honey production and co-op

strengthening, rather than include production of a good where there is no perceived local value and

beekeepers have no knowledge of producing.

Nevertheless, Ethiopia produces around 5,000 tons of beeswax per year, which is 10% of the

worldwide production of beeswax50. From the 5,000 tons produced annually, only 402 tons were exported

in 2003. Such high production capacity comes from the fact that most of the honey produced in the

country comes from traditional hives, which yield a greater amount of beeswax per kilo of honey (8 to

10% of the honey yield) than the modern or transitional beehives.

To conclude, there is in fact a huge production potential for beeswax in Ethiopia, with increasing

demand domestically and internationally. However, even big honey processors do not enter this market

and only use wax in their own modern beehives. This is mainly due to lack of information along the

value chain and the need to balance both high honey production and wax. One has to take particular care

with wax to avoid it being destroyed by the wax moth before it is sold.

In Mudula, specifically, there is no interest in producing wax because there is no big market for

candle or other products made out of wax. If it were the case for it to be sold elsewhere, like in the

Hossaena market, production would have to be high enough to justify the costs for the beekeepers to go

50 Legesse. 2014

40

there themselves or for a middleman to go to Mudula and buy in bulk to sell in other markets. An

overview of our interviewees’ current usages in wax can be found in Annex VII.

Shaping the Market

Quality standards

Unlike the well-developed international honey market, there are no universal quality standards

adopted across the domestic honey market in Ethiopia. In fact, honey is far from being established as a

product for commodity exchange within Ethiopia.51 There may be several reasons for this:

● Despite a long history of honey production and consumption, the market is just in its early

development stage. So producers have no sense to label the ingredients on the package of honey.

And, the majority of consumers may not have the mindset to refer to unified standards when

they select honey. On the other hand, the government has only recently realized the potential of

the honey market and may not have yet sufficiently developed such standards.

● Customer preferences about honey are as diversified in the country as explained above. The

standards that serve rural consumers may not be appropriate for urban buyers.

● There are different uses of honey in Ethiopia: to produce tej; table honey for daily consumption;

or for medicinal purposes; etc. Different quality standards may be developed for all kinds of

functions and it may take a longer time to formalize these.

Once the quality standards are developed, enforcement can be another challenge. On the one

hand, market players need to honor the standards and have quality control procedures to meet the

requirements. On the other hand, government officers who monitor the honey quality from specific

producers should follow the protocol during annual quality checks before granting renewed business

licenses to honey producers.

For processors or exporters who would like to gain share in the international market, they have

to follow the quality standards of import countries. Currently, the United States, EU, Middle East, and

Sudan are the main honey trading partners with Ethiopia; thus, their quality standards are adopted by

companies which export to those destinations. In general, the standards in the United States and the EU

are stricter than those in Middle East and the quality requirements in Sudan are relatively lower

compared to the above three areas. Companies choose which region to export to based on the type of

honey they source from and the quality standards of that region.

According to Mulufird Ashagrie, Africa Representative in Apimondia (an international

federation of beekeepers’ associations), the government may refer to the quality standards adopted

internationally or by the EU to facilitate the development of national honey standards. Take the standards

51 A commodity exchange is an organized efficient market space for buyers and sellers to trade certain products. This implies that

the product is standardized and easily exchangeable. For more information visit www.ecx.com.et.

41

Cooperative is a business or organization

owned and run jointly by its

members, with profits or

benefits shared among them.

used in the EU for example; they cover the requirements for water content, hygiene, sanitation and

packaging etc. Solomon Mengesha, Senior Advisor in honey value chain efforts at GIZ, mentioned that

GIZ was helping beekeepers to produce honey that can meet EU quality standards so that they can sell

the honey to exporters at higher prices and increase their income. Usually, such facilitation starts with

awareness creation among beekeepers so that they understand the importance and benefits to produce

high-quality honey and then trainings will be provided to improve and tailor their production

techniques. GIZ, as a development agency itself, does not keep records of the origin of honey or conduct

tests of honey. Honey exporters are the ones who are responsible for making sure the quality standards

are met before they sell to destination countries.

Cooperatives

A lot of effort from NGOs, governmental organizations, and private sector companies is going

into the improvement of the honey market. Establishing and strengthening cooperatives is one of the

major modes by which these actors are doing so.

Co-ops serve multiple functions. They can serve as a space

for beekeepers to learn from one another. They can also provide a

space for honey collection, processing, and storage. Within this space,

honey can be properly stored and even stockpiled to anticipate price

increases. Additionally, they provide greater opportunities for

women to engage in income generating activities. Finally, they help

link beekeepers with buyers, including those in larger markets. Thus,

the co-op is important to stabilize the market because without co-ops,

middlemen may dominate the market and leave little room to bargain

for price. With co-ops beekeepers are not simply price takers.

Through our field study, we learned that the model of a co-op, specifically within the honey

sector in SNNPR, varies. Even in size, cooperatives can range from 14 to 2,000 individuals. Cooperatives

can serve multiple objectives. Ultimately, the success of the cooperative depends on its location and

accessibility to beekeepers, as well as the nature of the business the members wish to pursue. The ability

to secure resources for the initial start-up is crucial as well.

Production-oriented model

The production-oriented cooperative focuses on collaborative beekeeping and honey production.

Hives are onsite at the co-op and beekeepers share time in their management. Like other cooperatives,

this model is also structured around a committee that manages daily operations. The time put in by each

member is quantified and translates to a certain share of profits they can receive after sales. In order to

42

manage the ongoing functions of the co-op, members are generally asked to contribute a small fee52 either

each month, or at a set interval. Others may contribute a start-up fee, after which, they are not required to

make the monthly contribution; these practices ultimately depend on what each respective co-op decides

on. The nature of co-ops requires a lot of dedication and combined effort on the part of the members and

needs to be embedded in strong relations of reciprocity and trust as well as high cooperative governance

standards.

Marketing-oriented model

Through our interviews with cooperative experts within the government and various NGOs, we

learned there is a more positive outlook towards marketing cooperatives. A marketing co-op serves as a

collection center for honey to be sold in larger quantities. Individual beekeepers work on their own to

produce their own honey. At harvest times, they gather their honey in the cooperative. In some cases the

cooperative will buy honey up-front from beekeepers at an agreed-upon market price. From our

discussions with the co-op office in Mudula and at the Angacha cooperative, we learned that members

generally will receive 90% of their initial revenue. The remaining 10% is then pooled collectively in a

cooperative bank account and used to cover costs of the cooperative, including those related to

administration, transportation, packaging, etc.53 The honey is then ideally taken to a larger market where

it can command a larger price. Any profits made from this sale of honey will go back to beekeepers, as

well as any of the remaining initial 10% that was used to cover cooperative costs.

In other cases, the collection center can simply serve to collect honey to be sold directly to buyers

in larger quantities. All dividends would then be shared among members. For both cases, the share of

profit beekeepers will receive is determined by the amount of honey they contribute, as well as any extra

time they contribute to the functioning of the cooperative. Other functions may be processing, packaging,

storing, and selling activities, as well as committee functions. These are the most common marketing-

oriented models that we discovered. Nevertheless, the details of the model ultimately will be worked out

by the committee and members.

Mixed model

Other cooperative models, like that of the Angacha cooperative, focus primarily on marketing,

but also have some collaborative production components. Member contribution to the cooperative can be

in the form of in-kind contributions of honey, time, labor, and inputs. Individuals have the opportunity to

produce their own honey off-site, but members can also participate in the upkeep of communal beehives

and land management, as well as co-op operations.54

52 During our interview in the Mudula Co-op Office, we were told that the fee ranges from 5 to 100 birr per month, depending on

the type of co-op. The 100 birr is the highest amount they have on record, for a savings co-op. The Office discourages very low fees

because they do not keep the members motivated. 53 Some cooperatives may decide to use their pool of funds for credit activities; but ultimately this is up to the discretion of each co-

op. 54 Co-op operations include recordkeeping, accounting, honey extracting and storing, assessing market, marketing, selling.

43

In the case of Angacha, individual beekeepers turn in their honey and get 90% back of the local

market price, with the remaining 10% going into the co-op bank account for operation costs of the co-op

with any unused balance distributed in July.55 As for the communal beehives, the co-op will harvest the

honey and also sell it in the market. The income is then also saved in the bank account until July. Once all

the honey is sold after the second harvest, some of the extra profits will go to the cooperative and the rest

will be divided among co-op members.56 The local government in Angacha works closely with the

cooperative by buying honey directly from the cooperative, but also by finding fairs and bazaars where

the cooperative can sell.

Challenges in cooperative formation

Through our field research we learned that co-op establishment is relatively easy; however, long

term management of the co-op is ultimately the biggest challenge to the co-op’s success. Behavioral

change can take time, especially when beekeepers are not accustomed to working together. Furthermore

issues regarding participation, accountability, transparency, and group governance will play a key role in

the cooperative’s success.57

Beekeepers might resist forming a cooperative because they are forced to sell their products to a

cooperative, when they may think they can secure a better price on their own. During focus group

discussions, one successful beekeeper voiced her concern over how profits would be shared. This

comment demonstrates many beekeepers’ uncertainty that they will not receive all their earned profits.

Some may not want to or will find it difficult to contribute monthly fees, which is a standard practice in

the region to keep the members motivated. Those who are not fully committed may jeopardize decision-

making processes or the motivation of others.

55 This amount is generally determined by the head committee member based on the going local market rate. Generally, the goal

will to be to sell the bulk of the honey outside of the local market, thus co-op members will ultimately receive a greater amount than

the local market rate. 56 It’s up to the committee to decide how much of the extra profits, after the initial 10%, should go to the coop’s bank account. 57 Dayananda, R., 2013.

44

RECOMMENDATIONS

View from Mudula region, taken from the school in Kololo

45

Based on our findings from field work and desktop research, we have proposed the following

five recommendations for WEEMA’s beekeeping project to promote the adoption of modern beekeeping

techniques and improve the livelihood of local beekeepers. Further details of implementation can be

found in the annexes.

1. Conduct a baseline survey to understand the current production capacity

We recommend that WEEMA should conduct a baseline survey with all existing beekeepers to

have a better understanding about their current production capacity. The baseline survey is very critical

for two reasons. Firstly, the baseline survey can serve as the benchmark for comparison when WEEMA

monitors the progress of the beekeeping project over time. Among all projects organized by WEEMA in

local community, the ultimate goal of economic empowerment projects is to increase the income level for

all beneficiaries. The starting points are actually important for continuous monitoring and evaluation.

Secondly, the survey can also provide WEEMA with some general ideas about the project's current

performance and explore the viability of different options based on current production capacity. For

beekeepers, they may develop the sense of record keeping and understand their own position through

the survey.

The baseline survey can be conducted as the supplementary session for any general assembly

where beneficiaries are gathered to discuss major issues. The survey should cover aspects such as the

number of each type of beehives beekeepers currently maintain and how much is produced from each

beehive. More detailed coverage of questions is provided in Annex II.

With data collected from the baseline survey, WEEMA is recommended to follow up with

beekeepers after each harvest to keep track of their progress. Ideally, this can be an activity that

beekeepers eventually adopt themselves. We therefore encourage initial and constant input from the

beekeepers regarding how to measure their capacity. A simple message can be sent through phones by

beekeepers to report the quantity of harvest and number of hives in use. However, the level of mobile

phone penetration might pose an obstacle for information collection.58 Nevertheless, the integration of

telecommunication in the follow-up activities can minimize the time and human resources consumed. As

discussed in previous sections, the containers used by beekeepers in Mudula are not standardized and

the fact that they do not know the capacity of the containers places them in a disadvantaged position in

58 In 2013, only 25% of people owned mobile phones in Ethiopia compared to a 70% average in Africa. The Economist. 2013.

"Telecoms in Ethiopia: Out of Reach."

1. Conduct a baseline survey to understand the current production capacity

2. Encourage WEEMA to promote awareness training

3. Continue with capacity training for the beekeepers

Short Term

4. WEEMA begin cooperative formation process for beekeepers Medium Term

5. Expand relations of the newly formed cooperative to large market players

i.e. unions and/or processors Long Term

46

bargaining. Therefore, WEEMA may consider standardizing the size of clay pots used to store honey.

With a known weight of honey in clay pots, it is easier to negotiate prices with buyers.

Apart from the honey production data, other quantitative information such as the proportion of

household income contributed by honey sales and the average labor and time spent on beekeeping versus

other activities, or qualitative information (such as the beekeepers’ perception of whether modernization

of beekeeping techniques helps them generate more income and whether their life is better off from

working with WEEMA staff) may also be collected so that we can have a more comprehensive picture

about how beekeeping fits into the livelihood of beekeepers. A comprehensive understanding about

individual beekeepers’ income portfolio is important for not only tracking the positive effects from

economic empowerment and income generation activities, but also to help them plan their resources

efficiently to minimize any negative impacts. Such information is becoming even more critical as

beekeepers try to scale up and conduct a cost-benefit analysis to decide how to balance beekeeping and

other agricultural activities to diversify risk and maximize income.

2. Encourage WEEMA to promote market awareness training

Awareness training is a sustainable method to motivate beekeepers and give them incentives to

drive their own future. Because of the high information asymmetry in the honey market, many

smallholder beekeepers do not recognize the potential their honey production could bring. The goal is to

demonstrate what success looks like and to motivate beekeepers towards a new objective.

A training of this sort would demonstrate the honey market’s potential by providing information

on prices in larger markets, as well as showcasing successful honey enterprises. Beekeepers can begin to

see increased honey production as a method to diversify their economic activities. Showing what prices

are like in larger regional markets, like Hawassa and Addis, or even international markets, gives

beekeepers a sense of where they could be. Here, the objective is to encourage beekeepers to focus on

increasing quantity and quality in order to reach larger markets.

There are multiple actors who can help in awareness trainings. One major role of local

governments is to provide these trainings, with the objective that beekeepers will organize into a

cooperative. Private sector companies, like Tutu, are also interested in promoting the value of table honey

because it can directly help their business activities. What’s more, research centers, like Holeta, and

NGOs (included in annex III) expressed their interest and support to engage in this area. Many of these

actors want to shed light on the potential of honey, but also to promote cooperatives, as well as change

perspectives on the value of crude versus processed honey which will be beneficial for all parties in the

long run. WEEMA can also fulfill a special role in awareness training by highlighting successful

individuals and the potential of honey as a major source of income.

47

3. Continue with capacity training for the beekeepers

WEEMA should continue to focus on increasing the production capacity of local beekeepers

through training, as it is one of the key issues to solving the market access issues that beekeepers face.

WEEMA’s hive building initiative has been successful in helping beekeepers’ transition from traditional

beehives to transitional ones and WEEMA can facilitate further progress of the beekeepers. More

comprehensive technical trainings should be provided to complement the increased level of inputs.

Seasonable trainings that are tailored to the timeline of beekeeping activities will be more effective in

driving beekeepers’ capacity rather than one-off training sessions. These trainings could be arranged by

engaging government resources and private sector players.

By checking-in and providing advice and expertise at every stage of the production process

throughout the year, local communities will be more motivated to promptly deal with problems as they

arise. This support system serves to reinforce awareness creation among beekeepers and encourage them

to put more effort into developing beekeeping as a sustainable livelihood. It also helps strengthen

community bonds by fostering information exchange and trust building among beekeepers.

Since provision of training requires a large amount of human capital and resources and can be

costly, we recommend WEEMA establish long term relations with local governments and fully utilize the

resources and continuous support they offer to local communities. With the government’s recent focus on

the honey sector to engage more beekeepers and improve quality and quantity, standardized training

programs are developed with specialized local honey experts at the Livestock Office operating on the

kebele level. In addition, WEEMA should also leverage possible partnerships with private players who

are eager to provide support to local beekeepers for better input sources.

4. Initiate the process of cooperative formation

To form a government recognized cooperative, WEEMA should first encourage beekeepers in the

program to self-select into a group. After bringing together at least 14 motivated individuals (the

minimum needed to form a cooperative), they should be encouraged to again select group leaders who

will be responsible for administration, finance, and marketing roles. The next step should be to adopt and

adapt where possible the official government governance proclamation to the context of the cooperative.

The last process is an important step in receiving formal recognition by the government of Ethiopia

(through local offices). In addition, a primary cooperative is expected to have at least 20% of its operating

capital at the time of establishment. The amount can be collected either from members or NGOs.

Establishing a cooperative can take a long time depending on group dynamic, each member’s

commitment, and capital. WEEMA may provide further support, such as funding for the extractors or

packing materials, if necessary.

Once a primary cooperative is established, it has a multitude of benefits if properly and

transparently managed. Once established, members: can apply for loans to expand honey production; are

able to request a plot of land from the local government office; can work with unions to sell products for a

48

higher price; can sell in markets of other towns and cities with a certificate or support letter from the co-

op office; and can participate in trade fairs and bazaars.

As mentioned above, the government of Ethiopia is working to improve both quantity and

quality of honey production. The potential of the honey sector is slowly being realized. Especially in

recent years, the government of Ethiopia has used the sector to improve incomes of rural communities.

Such initiatives are part of the Growth and Transformation Policy of the country. Honey production and

cooperative formation is facilitated and implemented by the Cooperative Agency of Ethiopia and

regional cooperative offices. These offices help groups form cooperatives, and assist through trainings

and workshops. The government of Ethiopia continues to put much focus at the national level to help

improve the capacity of cooperatives and increase production.

Letting a co-op grow naturally and run its course is a safer bet than forcing members to form

quickly. Strong leadership and effective management can help this process, as well as organizing people

from similar backgrounds with shared interests into a co-op. Moreover, mechanisms need to be in place

within the co-op structure to ensure the equal weight in decision making between female and male

members. Furthermore, beekeepers need to be aware of the benefits a cooperative can bring them; this

can help incentivize them to fully participate. The objective of the co-op is not to sell in the vicinity of the

production, but rather to be able to sell in other farther markets. Cooperatives should not be narrow-

minded in their strategy. Rather, they should focus on increasing quantity to lower production costs and

gain access to larger markets. Thus, the ability to produce substantial quantities of good quality honey

can be a big factor for a co-op’s success. With better and more honey, co-ops can sell to higher level

buyers in the value chain rather than to only middlemen or tej houses. In Annex V, a more detailed step

by step co-op formation guide is explained.

5. Expand relations of the newly formed cooperative to large market players i.e.

unions and/or processors

In the long term, after the cooperative has reached significant scale in terms of number of

members and production capacity, WEEMA can consider partnering with a larger union or cooperative

federation of unions. Through the extensive scale and distribution networks of these larger bodies, the

beekeepers will be better positioned to satisfy the high volume demands and quality standard

requirements of large honey processors and exporters and can subsequently sell their products directly to

a wide range of purchasers. Through these proven and widespread coop-union business models, the

beneficiaries will be able to not only deepen their market penetration and bargaining power in the

Ethiopian and foreign markets, but will also benefit from ancillary support across the full value chain

(from pre to post-harvesting), as well as fair trade certification. What’s more, key industry players such as

the Ethiopian Apiculture Board and NGOs such as ACDI/VOCA can help to facilitate these relationships.

49

CONCLUSION

Modern beehive with shelter belonging to the cooperative in Angacha

50

In line with the main project objective of improving beekeepers’ livelihoods by increasing their

market linkages, we focused on constructing the honey value chain involving key stakeholders,

understanding constraints and issues related to production, and identifying overall honey market trends

and drivers.

Following our established research framework, we determined cooperative formation as the

main method to address issues of capacity, market fragmentation, and quality. We explored different

models of cooperatives and the establishment processes, met with government officials, and learned the

sentiments of the local beekeepers. As a result, we recommend forming two separate cooperatives with

beekeepers in Mudula and Kololo.

With forming cooperatives as our central approach to increase the income levels of local

beekeepers, we developed more detailed actionable recommendations that should be implemented in

sequenced time frames, as one builds on the previous. If these actions are carried out by WEEMA, we

believe that the beekeepers will be able to expand honey production and ultimately increase their income

and living conditions.

51

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INTERVIEWS CONDUCTED

Name Organization Sector Date Location Solomie Wasie B Honey Private March 23 Addis Ababa

Daniel Gebremeskel Comel Honey Private March 16 Telephone

Tesfaye Trader Private March 17 Durame

Eyob Assefa Tutu Honey Private March 23 Addis Ababa

Wubshet Apinec Private March 23 Addis Ababa

Temesgen Esradu Angacha coop Coop March 19 Angacha

Zenbaba SIntayehu

Mengiste

Zenbaba Union March 21 Addis Ababa

Mulufird Ashagrie Apimondia Private March 24 Addis Ababa

Assefa Amaledegne Consultant Private March 24

January 12

Addis Ababa

Abdella Abdulalim Mesaf plc Private March 21 Addis Ababa

Paulos Desalegn Consultant Private March 19 Addis Ababa

Roba Bulga Jilo Slow Food

Foundation

NGO March 23 Addis Ababa

Berecha Sasakawa NGO March 18 Addis Ababa

Yalemzewde Teshome Sasakawa NGO March 18 Addis Ababa

Solomon Mengesha GIZ NGO March 15 Addis Ababa

Kinfe Mamo GIZ NGO March 15 Addis Ababa

Ermias Mochona

Gobobe

Co-op Office Government March 17 Mudula

Adore Livestock Office Government March 17 Mudula

Nagash EAB Government March 14 Addis Ababa

Goamamo EAB Government March 16 Hawassa

Gemechis Lagasa Holeeta Bee

Research Center

Government January 10 Holeeta

Lulseged Belayhun Biovision NGO January 11 Addis Ababa

Eldad Girma Begashaw SNV NGO January 11 Addis Ababa

56

ANNEXES

Street in Mudula town that leads to the market

57

Annex I. Summary of recommendations with idea of timeline

58

Annex II. Details of conducting a baseline survey to understand the current

production capacity (Recommendation 1)

As discussed in the recommendation section, a baseline survey with all beekeepers may facilitate

both WEEMA and the beekeepers to understand the current production capacity. There is no need to call

for a separate gathering session particularly for data collection. WEEMA may ask the beekeepers to fill in

questionnaires after any general assembly for beekeeping training or honey market awareness creation

(see recommendation #2).

The design of questionnaires is critical for not only efficiently and effectively collecting

information but also for gathering higher quality data. The questions should be drafted in a clear and

straightforward manner and before beekeepers fill in the questionnaires, WEEMA social workers should

explain every question and make sure the beekeepers interpret the questions correctly. The survey can

start with simple questions and the database will be further built up with more data input from the

beekeepers over time. The most important and relevant areas are as follows:

Information about beehives

The number and the type of beehives are the foundation and starting point to understand the

ability to produce honey. There are two dimensions to be covered in this question. One is the type of

beehives (traditional, transitional or modern) while the other is whether the beehives are empty or with

bees (this data is of particular importance during drought season and can help design the relevant

training program for beehive risk management). The time should also be specified in the questionnaire.

For simplicity, we can specify the time to be the moment when beekeepers fill in questionnaires (how

many hives they have when they fill in the questionnaires). After data collection, WEEMA should process

the information as soon as possible to ensure the accuracy of data and develop the baseline survey

findings. The table below summarizes the key points to be covered in this question and it can be used as a

template.

Time: Date for filling in questionnaire

Traditional beehives Transitional beehives Modern beehives

With bees

Empty

Follow-up activities are also very important to make sure all the records are kept up to date.

When there are major changes happening with regard to the number of beehives, information should be

passed to WEEMA (or data management representatives elected by the community). Such major changes

include but are not limited to the following events: 1) construction of new beehives (empty ones) and

increase in total number of beehives; 2) increase in previously empty beehives that are now filled by bees

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(report if all empty beehives have bees or every three beehives are filled whichever event happens

earlier); and 3) bees absconding (report if all beehives are empty or every three beehives become empty

whichever event happens earlier). By using regular check-ins to account for all the movements in number

of beehives, the accuracy of the data on record can be more adequately verified. WEEMA (data

management representatives) should reach out to beekeepers every three months (the frequency depends

on the frequency of changes in beehives) to confirm the record is consistent with beekeepers’ current

situations and make any necessary updates when there are variances.

Information about productivity of beehives

During harvest season, data about how much honey produced per beehive can be collected. To

quantify the production of honey, standardization of containers may be the first step. If conditions

permit, beekeepers are recommended to use the standard-sized clay pots in three sizes: big, medium and

small (i.e. three sizes are available as listed but all big clay pots should have the same size).

WEEMA or beekeepers can weigh the clay pots when the pots are empty and record the weight.

When beekeepers are filling honey into the pots, they are suggested to fill honey up to the very top of the

pots for standardization purpose. After weighing some of the full pots, the average weight when pots are

full of honey can be calculated. Deducting the weight of the pot itself, WEEMA can have a reasonable

estimate about the average weight of honey in the pots which can be used as a benchmark for future

honey weight measurement. If the sizes of clay pots are difficult to standardize, beekeepers are suggested

to weigh the pots before and after they fill it with honey. To facilitate this, WEEMA may provide scales to

be shared in the community. If the weight is too difficult to measure or there are limited scales available

in the community, WEEMA may consider measuring the volume of containers using water. When we

know how many liters of water can fit in the pots, the weight convertor between water and honey can be

used (e.g. the density of water is 1 while the density of honey is 2). Then, if the pot can contain 10

kilograms of water, then the same-volume honey will weigh 20 kilograms to estimate the weight of the

honey in the pots.

In the process of follow-up data reporting about number of beehives or quantity produced,

telecommunication tools can help to minimize the time and human resources consumed. Beekeepers can

just text WEEMA (or data management representatives) on a voluntary basis about the change in

beehives and the number of kilos they collect during each harvest together with the number of beehives

used in that harvest. A reporting deadline should be set in advance and WEEMA (or data management

representatives) need to reach out to beekeepers to collect the data. Such follow-up data reporting is

important not only for WEEMA to keep track of changes in production, but also to keep the beekeepers

motivated throughout the year, thereby improving beekeeping management.

Overall, the baseline survey is recommended to start early. When the harvest season is coming,

the ideal approach to take is to collect all information about the number of beehives before the harvest

and collect the harvest info during the harvest. Then WEEMA will have a fresh idea about the overall

production capacity at present.

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Other quantitative information, like the proportion of income contributed by honey sales and the

average labor and time spent on beekeeping, should be included in the baseline questionnaire for

comparison purposes. The same logic applies to the qualitative information, such as the beekeepers’

perception of whether the modernized beekeeping techniques have helped them generate more income

and whether their lives have improved from working with WEEMA staff. Over time, with the increase in

production capacity and income from honey selling, we expect a positive change in their attitudes

towards beekeeping and a willingness to devote more time to beekeeping.

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Annex III. Details of encouraging WEEMA to promote awareness training

(Recommendation 2)

As outlined in the recommendation section, awareness trainings can help eliminate information

asymmetry and also motivate and incentivize beekeepers towards greater organization and honey

production. There are a number of themes to be covered in the awareness training:

● What are the different options beekeepers have to distribute their honey? Currently, they are mainly

selling in local markets since they do not have a sense of larger markets. So with a deeper

understanding of different distribution channels (local market, tej house and co-op etc.), they can

decide what works best for them.

● What is the honey market like? WEEMA’s existing beekeepers focus only on local markets where the

honey is sold at quite low prices at present. If the beekeepers can be equipped with more

knowledge about how the profit is shared throughout each level of the value chain (e.g.

retailers/wholesalers retain majority of the profit through relationship with middlemen who are

the price makers in the transactions with beekeepers), they may realize that by moving up in the

value chain, there is more room for them to improve their income from honey.

● What co-ops can provide for beekeepers and how co-ops work? As one of the options available for

beekeepers, before formally adopting the idea to form a co-op, beekeepers need to have a clear

idea about what a co-op is and how it works. With all information available, they can decide

whether they want to form a co-op or work by themselves individually.

There are a number of actors who can help to promote awareness training. We recommend that

WEEMA prioritize utilizing the existing resources available. During our field trip and discussions with

interviewees we found there are many actors who are interested and willing to support WEEMA’s

beekeepers. Engaging with these actors is a matter of communicating and establishing relationships with

them.

Some local government offices are mandated to focus on cooperative establishment, as well as

training to prepare beekeepers for cooperatives. The co-op agency in Mudula has a duty to provide

awareness training on the benefits of co-ops. Similarly, the local Ministry of Livestock office works to

educate beekeepers on the value of honey, particularly processed honey. Their goal, as mandated by the

federal government, is to teach the importance of processed over crude honey as a means for potential

increase in income. Ultimately, the government wishes to shift towards greater processed honey

production domestically and these efforts must begin at the local level. Additionally, research centers,

like the Holeta Bee Research Center, have expressed a willingness to assist with trainings. Holeta, in

partnership with other actors provides a 15 day comprehensive training that includes awareness

trainings.

Many NGOs are also engaged in awareness training activities and have also expressed support in

helping WEEMA’s beekeepers. First, GIZ uses awareness trainings to help beekeepers understand honey

as a liquid free of anything like wax or other bee products. Secondly, they are accustomed to explaining

how beeswax is more expensive than honey and residual free wax is very expensive and in high demand.

62

Thirdly, SNV in partnership with the Ethiopian Apiculture Board, and two private companies, Enclude

and Profound, is working on a project, ASPIRE, that will support the whole honey sector. Through

ASPIRE, participants encourage beekeepers to form co-ops, as well as participate in technical training.

Next, private sector companies also wish to support beekeepers’ awareness. Doing so can directly

benefit their position as honey buyers. Here the goal is to demonstrate to beekeepers the prices honey can

have in larger markets, as well as the large demand both domestically and internationally. For example,

the head of Tutu, Eyob Assefa, said he often shares his export invoices with beekeepers in addition to

bringing them to Addis to visit supermarkets. Moreover, he expressed an interest in meeting with

WEEMA beekeepers.

Finally, individual beekeepers can be potential models for beekeepers in Mudula and Kololo.

Members of the Angacha cooperative can share their successes and difficulties with WEEMA beekeepers.

What’s more, selecting a successful WEEMA beekeeper may provide beekeepers in Mudula and Kololo

with an individual that can demonstrate what success is and can become a model for other beekeepers.

Finally, one entrepreneurial beekeeper, Tesfaye, we met in Durame could also be a potentially strong role

model to demonstrate success to WEEMA beekeepers.

In organizing awareness trainings, priority can be placed on local government officials, as this is

their mandate. The second priority should be on NGOs or private companies who are willing to help. A

later phase, once beekeepers are more organized can involve additional sessions from individual

successful beekeepers.

In-site trainings, with invited facilitators, can be organized in Mudula and Kololo with

beekeepers. This will involve networking and relationship-building with all these various actors. One

option is to hold an awareness training session during the General Assembly. This can be the same

General Assembly where beekeepers ultimately self-identify as members who want to take the lead in

forming the co-op. Once beekeepers are organized and on the path to a cooperative, further awareness

training can be done that focuses more specifically on honey production. Here Holeta Research Center, as

well as NGOs and private companies can be an asset.

63

Annex IV. Details of continuing with capacity training for the beekeepers

(Recommendation 3)

WEEMA should coincide the training cycle with the production cycle. Sessions on apiary site

selection, colony catching and multiplication, transfer of bees from traditional to transitional hives,

harvest, processing, and marketing would be valuable when beekeepers are in the middle of these

activities.

● During October, January, and June harvest, WEEMA can arrange training on harvesting

techniques. This includes sessions on how to determine whether the honey is ripe, what are the

proper extraction methods to lower the risk of colony absconding, and what are the appropriate

ways to store and preserve harvested honey.

● September and February are good times to transfer bee colonies as the hives are empty during

these months after harvest, which makes bees less aggressive and protective of their hives.

WEEMA would be able to provide trainings on how to transfer bees from traditional to

transitional hives to help beekeepers expand colonies and better manage existing hives.

● November and July are swarm seasons. There is high risk of bees absconding after harvest as

honey is taken out of the hives. Training on swarm prevention can prepare beekeepers for

preserving existing colonies.

It is also important to provide support and bring in expertise during unexpected events and

disruptions to prepare beekeepers for potential risks. Beekeepers in the Southern region have been

severely affected by the drought as honey yield drops and bees abscond. WEEMA can support trainings

on drought resistance techniques to protect colonies from extreme weather conditions in such cases.

These techniques can be as simple as covering the hives or providing a small amount of water close to the

hives. Connecting with the local agricultural office for updated weather forecasts can also help better

prepare beekeepers for drastic climate events.

As it would be costly to provide the trainings and support mentioned afore, we recommend

WEEMA leverage all the external resources available while also creating synergies within the

communities to augment the benefits of training as detailed in Annex II. We discovered much under-

utilized government services provided by the local Cooperative office and the Livestock and Fishery

Office. The government assigns every three Kebeles one beekeeping expert to work with the local

communities. The ASPIRE program set up by the government provides a 15-day technical training

through the Holeta research center, focusing on beekeeping technologies and market linkage. WEEMA

can connect its beekeepers with the expert for continuing training sessions. We believe it is important to

connect beekeepers with local experts who understand the specifics of climate conditions and

communities in Mudula and Kololo, as the trainings provided by them are more effective and long

lasting.

Besides government support, WEEMA can also partner with large processors or exporters to

provide training sessions, inputs necessary, and other expertise as they are eager to establish direct

relationships with local beekeepers and procure sustainable source of quality honey. Tutu Honey was one

64

such processor that expressed willingness to work together with the WEEMA beekeepers. In this sense,

having a local experienced beekeeper expert can be a complement to the work done by Kahlyn. This

would create more links with the community, generate more context-appropriate techniques, and the

beekeepers will be able to refer to him/her in a fast pace in case of problems.

In addition, other NGOs with agricultural or cooperative expertise can be valuable resources for

WEEMA as well. Sasakawa Africa Association, a nonprofit focusing on improving agricultural

productivity through technical transfer, mentioned during our interviews the possibility of partnering

with WEEMA.

To create stronger bonds within the community, WEEMA can hold monthly or quarterly

gatherings with beekeepers to share their expertise with each other. A mentorship system can be

established where successful beekeepers help other low production beekeepers increase quantity. A

proper incentive program can be put in place to ensure beekeepers are benefiting as much as possible

from trainings and reach maximum production within the co-op.

65

Annex V. Details of initiating the process of cooperative formation

(Recommendation 4)

The Federal Cooperative Agency (FCA) of Ethiopia facilitates the establishment of cooperatives

throughout Ethiopia. The agency has at least one representative at each Woreda (district) level in the nine

regions of the country. Before approaching a local representative, WEEMA beekeepers should decide

collectively whether to establish a cooperative or work individually. The beneficiaries must be willing

and motivated to form a cooperative to ensure its continuity. During such process, the agency has a

mandate to send a representative to teach potential members about the objectives of cooperatives, share

best practices from the region and beyond, and present financial, economic and social benefits of working

as a group. At least 14 of the 70 beekeepers under WEEMA’s current project should self-select as

founding members (the government encourages females to participate in co-ops).

After paying a 60 birr registration fee, an official co-op certificate will be issued. The co-op office

issues a proclamation as the founding document of cooperatives and helps them develop bylaws to

specify the structure and ground rules of daily operations. If the group cannot meet all the requirements

during establishment, they can pay 30 birr to obtain a temporary certificate which allows them to operate

as an official co-op for one year. Within this year, if the temporary co-op manages to fulfill all the

requirements, by paying the remaining 30 birr, they can transfer their legal status from a temporary co-op

to a permanent one.

During the application process, the local FCA office will also provide assistance in the following

areas:

● Leadership and management skills: members will learn to follow legal procedures needed to

establish a cooperative and form a committee of leaders.

● Technical skills in accounting and finance: members will learn about proper book keeping and

balancing budget managing external loans.

● Technical training in beekeeping (through local livestock office): members will learn skills they need to

produce higher quality and quantity of honey.

The local agency will assess and link cooperatives to local markets. In addition, it will monitor,

supervise and regulate the activities of a cooperative to ensure it is in line with the federal government’s

requirements.

Additional Benefits

Establishing cooperatives has a multitude of benefits that extend beyond market access and

linkages. The following three are the most relevant of the benefits:

Cooperatives can request a plot of land needed for business activities. The following steps must

be taken for the application process.

● Representatives from the cooperative will formally request the local FCA office for a plot of land

(official certificate can be shown to verify the legality of the cooperative).

66

● Local FCA will then ask the local livestock office for justification of providing a plot of land.

● The livestock office will send representatives to sites to access feasibility of activities in a given

plot of land.

● After a specific location is chosen, an approval letter will be presented to Kebele administrators.

● Kebele Administrators are responsible for giving final approval and distribution of land.

● The cooperative agency will issue a letter to support the above process.

Legally established cooperatives can apply for external loans from regional microcredit

institutions. Cooperatives have the option of applying for loans needed to supplement activities that are

in line with short-term and long-term goals. Loans can be used to establish additional income generating

activities such as seed production and clay production.

With the certificate issued by the co-op office, honey produced by co-op members can be sold in

other markets where the prices and profits are higher compared to local markets. The certificate helps to

establish relationships with customers in other markets by providing credibility and traceability of the co-

op.

Possible challenges

If managed well, cooperatives can bring benefits to members and their respective communities

alike. But establishing a successful cooperative can be challenging and time consuming. Most

cooperatives throughout Ethiopia are faced with management and leadership problems, improper

accounting of expenses and revenues and mistrust between members. Cooperative members lack

technical skills resulting in loss of interest. At times, a few members of the community take control of a

cooperative excluding others. Most cooperatives start off well, but due to the aforementioned issues, they

remain symbolic without providing their essential services.

67

Annex VI. Details of expanding relations of the newly formed cooperative to large

market players i.e. unions and/or processors (Recommendation 5)

In the long term, once the co-op has been established and has had time to mature and develop

their operations, they should begin building relationships with unions and honey processors directly

and/or through the networks of NGO’s, the EAB and other key government entities. Further, once they

have reached the necessary scale and capacity requirements (usually 6 to 10 tons), they should formally

partner with any combination of unions and or honey processors that makes the most sense.

Unions/Cooperative Networks

Key unions and cooperative networks worth considering are Zenbaba Cooperative Union and the

Southern Region Farmer’s Cooperative Federation (SRFCF). Zenbaba is the largest single cooperative

union in Ethiopia, working with approximately 23 cooperatives (average size 600-4,000 members/co-op)

and over 20,000 beekeepers selling to both domestic and foreign markets. Additionally, the SRFCF,

located in Hawassa, is one of the leading regional cooperative bodies in the Southern region and is

comprised of 20 cooperative unions and three primary cooperatives and roughly over 16,000 beekeepers.

It would be advantageous for WEEMA to explore relationships with SRFCF and its member unions given

the strategic location of the federation in the South.

Honey Processors/Buyers

Further, key private players to consider are Tutu Honey and Comel Honey which have all

expressed an interest in working with and potentially sourcing from WEEMA as the beekeepers they

build up their capacity. Tutu Honey is an exporter working with about nine co-ops through one union in

the North West and five co-ops in the South West mainly based in Kaffa. Comel Honey, based in Tigray,

sells its organically certified “Welela Honey” to both the domestic and international market.

Domestically, it sources its honey from co-ops based in SNNPR and, internationally, it sources from

Tigray.

68

Annex VII. Summary of interviewees’ current use of beeswax

In order to further clarify the issue about beeswax, we have compiled here a brief summary of the

responses of our main interviewees when asked about it:

● Comel Honey and Zenbaba: after processing, they sell back to the beekeepers to use in the

modern beehives;

● Tutu Honey and Apinec: there is high level of adulteration and the market is very fragmented,

that is why they don't venture into the market; they only sell to their own co-op to be used in the

hives

● Tej House in Hossaena: They sell wax to traders from Addis Ababa or Hossaena, usually at 55

birr per kilo, which is way below the market price, but they don't seem to be aware of its high

value.

● Angacha co-op: they sell wax at 160-180 birr per kilo back to the beekeepers, who use it in the

modern beehives. Total production after the October 2015 harvest was of 637 kg. In Angacha (see

section XXX for more details) propolis was also produced last year, with a production of 7kg sold

at 240 birr each kilo to middlemen from Addis Ababa.

69

Annex VIII. Field trips photo album

70

71

Columbia University

School of International and Public Affairs

420 W 118th Street420 W 118th Street

New York, NY, 10027

sipa.columbia.edu

Photos used in this report: Lucas Valente da Costa

Columbia University

School of International and Public Affairs

420 W 118th Street New York, NY, 10027 sipa.columbia.edu Photos used in this report: Lucas Valente da Costa