Production Plan

The cooperative consisting of 26 active members has been producing and harvesting natural honey which has been marketed by the cooperatives. The various task undertaken by the members are management of their own apiary, harvest and extraction using machines stationed at the cooperative processing unit. The remaining task associated with processing, packaging and marketing is undertaken by the cooperative (the management team), including tasks such as maintenance of basic apiary for training purposes, production of queen and multiplication of colonies, quality control of honey, training of members. The list of activities and the products planned by the cooperative for the years 2012,2013 and 2014 is presented in table 1 below.

Table 1: list of project product/activities for the year 2012.2013 and 2014

Presently there is very high demand for honey both within the country, as well from countries such as Japan, Singapore and Thailand. As the cooperative has not been able to increase the overall production of honey (limited by stagnant membership size over the years, inability to expand the business by means of migratory bee keeping in the country amongst other challenges), the cooperative plans to expand the bee keeping in the country by means of:

  • Increasing the membership of the cooperative. This entails training new interested members on bee management for about a week for which the cooperative has the technical expertise but lacks the fund of training.
  • Expand the industry by means of migratory bee keeping, especially in places such as Haa, Khasadrupchu, Hongtshu and other feasible areas in the country

In the year 2013, to expand the cooperative business and enhance income to the members, BCoB plans to seek support from RNR-RDC to undertake the necessary research, feasibility study and develop proposal for starting the feasible activities starting 2014 on the followings:

  • Pollen collection, processing and marketing
  • Propolis collection, processing and marketing
  • Royaljelly collectin, processing and marketing
  • Product and markets products made out of by products

Considering the activities/product for marketing by the cooperative, the costs on the raw materials required has been estimated based on the records maintained so far till 31st December 2011. While members are given shares as net surplus (payments for the honey supplied to cooperative), the costs on the raw materials at the respective member’s household is not included in this estimation. The costs on raw material, therefore is the costs incurred and projected for those raw material required by the cooperative (processing unit and the management team) for operation of the cooperative business. The details on the raw material required and estimated costs projected for the years 2012, 2013 and 2014 is presented in table 2 below

Table 2: projected Raw Materials and other costs for the year 2012, 2013 and 2014(all projections in Nu)

For fresh honey production, the various raw materials required by the cooperative (to be supplied on payment to the members or equipments to be made available) are: sugar, packing material, hive material, consumption materials, tools, and colonies. The estimation is based on the records maintained by the cooperative for previous years, with 10% increase over the year on the total costs. The tool is derived from the net value of consumables and the depreciated value of the equipment as year of 2001 and with increase of 10% over the years considering the increased costs on consumable.

With bee keeping business targeted for expansion by means of increasing the membership size and thereby training new members, the cooperative purposes a fund of Nu.180000 that travels includes the costs for the resource persons as well as the costs for the farmers DSA, food and travels during the training period. The training is for one week on bee management.

The raw materials for migratory bee keeping are estimated as follows:

  • Fifty numbers screen boards—Nu.50,000
  • Transportation belts—Nu.50,000
  • Transportation cost(vehicle costs)—nu.50,000

The areas identified for initial migratory bee keeping is Haa, Hongtsho, and Khadrupchu and other feasible areas is to be explored. The season for migratory bee keeping is from 2nd week of April to May. For subsequent years, the costs on migratory bee keeping are estimated at 5% increase over the years.

The cooperatives plans to purchase some new equipment necessary for the members such has two numbers extractor with motor system(Nu.3000); ten numbers sieve(Nu.35,000) and twenty numbers forks(Nu.20,000). The total costs projected for the year 2013 is Nu.355000.