The labor costs are calculated for various labor cost incurred by the cooperative in the processing unit, mainly for the packaging, labeling and maintenance work. In the past the extraction as well as packaging of honey were undertaken by respective members. However, the experiences were inappropriate packaging and labeling by the members. Some bottle full while some bottle slightly lesser. The quality remained an issue for cooperative in terms of clean packaging and labeling. Therefore the cooperative (management team) were handed over the responsibility of packaging and labeling by deploying laborers. Based on the records for cost incurred on labor for the previous year (Nu.57,550) in the year 2011, the projection are estimated at 5% increase over the years as presented in table 3 below. In the year 2011, about 192 days man days of labor were engage at the rate of Nu.300 per day between the periods from July to October.
Table 3: project labor cost by the cooperative for the year 2012, 2013 and 2014
The other costs requirement for the cooperative to operative the business are presented in table 4 below. Based on the records for the various heads in the table for the year 2011, a 5% increase over the year has been considered for the total estimation projection for the years 2012, 2013 and 2014. Such costs are for administrative needs, transportation, vehicle maintenance and others.
Table 4: projected other costs associated with honey processing and marketing
The members of the cooperative are paid for the honey supplied to the cooperative. The cooperative members expect an increase in overall production over the year and considering the production for the year 2011 as a base 5% increase over the years is projected as shown in the table 5 below. This is reflection of total volume of honey that the members can produced and supply to the cooperative. Similarly with price of Nu.250 per kilogram being the price also for the year 2012 to be paid to the members (price same as paid in the year 2011), a gradual increase in the price has been projected in the table 5 below. According the total cost on honey production as the payments to the members is presented below in the table.
Table 5: projection for honey production, supply to cooperatives and payment to members