Economics of Bee Keeping

Economics of Bee Keeping

    After going through different aspects of beekeeping including seasonal management, it is important to work out the economics of this enterprise if one goes for commercial bee keeping. It requires information of expenditure and income from a unit of an apiary. For commercial bee keeping it is recommended that one should start with minimum of 100 bee colonies. Details of expenditure and income are given below:
    Expenditure for 100 Apis mellifera bee colonies:

    NON RECURRING

    Number Rate/unit Total amount (Rs)
    Bee Hives
    100
    Rs 2200/hive
    2,20,000.00
    Bee colonies 100 Rs 350/frame x 4 1, 40,000.00
    Honey extractor 1 Rs 2500/- 2,500.00
    Smoker, bee veil, Hive tool etc 1 set Rs 500/- 500.00
    Miscellaneous (honey cans, mating nuclei etc) - Rs 7000/- 7,000.00
    Total

    3,70,000.00 (A)
    RECURRING (per year)
    a) For stationary beekeeping
    Labour (full time) 1 Rs 3900/month 46,800.00
    Comb foundation sheets 1000 Rs 20/sheet 20,000.00
    Sugar for feeding 500 kg Rs 36/kg 18,000.00
    Chemicals for pest control - Rs 20/colony 2,000.00
    Miscellaneous - - 2,000.00
    Total

    88,800.00 (B)
    b) For migratory beekeeping
     
    Transportation No. of trips cost per trip Total
    Truck 4
    Rs 2500/trip 10,000.00
    Total cost (a + b)

    98,800.00 (C)
    DETAILS OF EXPENSES
    a) Stationary beekeeping:
    Interest on non-recurring cost @15% 55,500.00
    Recurring cost (B) 88,800.00
    Interest on recurring for 6 months @15% 6,660.00
    Depreciation on permanent articles except bees @ 10% 23,000.00
    Total 1,73,960.00 (D)
    b) Migratory beekeeping:
     
    Commodity No./average Quantity Rate Amount
    Honey 35kg/colony 3500 kg Rs 80/kg 2,80,000.00
    Sale of divided colonies 40 % colonies 40 colonies Rs 1400/colony 56,000.00
    Beeswax 2% of honey produced 70 kg Rs 200/kg 14,000.00
    Commercial queen production(two breeding seasons) from 10% colonies 200 queens Rs 400/queen 80,000.00
    Total


    4,30,000.00(G)

    NET INCOME
    Stationary beekeeping (F-D) 214000-173960= Rs 40,040.00
    Migratory beekeeping (G-E) 430000-184710=Rs 2, 45,290.00
    ADDITIONAL BENEFITS
    Increase in crop yield
    Boost for employment in bee equipment related industry
    ECONOMICS IF LOAN TAKEN FROM BANK FOR PURCHASE OF NON-RECURRING ITEMS (migratory bee keeping)
     

    Years after start of bee keeping

    I II III IV V
    VI
    a. Income 430000 430000 430000 430000 430000 430000
    b. Annual reducing interest on non recurring (expenditure @ 15% after payment of bank installment) 55500
    (on 370000 as in A)
    43500
    (on 370000-80000)
    31500
    (on 370000-160000)
    19500
    (on 370000-240000)
    7500
    (on 370000-320000)
    nil
    c. Bank installment (on principal amount as per A) 80000 80000 80000 80000 50000 nil
    d. Recurring cost & interest on recurring & depreciation 129210 129210 129210 129210 129210 129210
    Net income a-(b+c+d) 165290 177290 189290 201290 243290 300790


Last modified: Tuesday, 17 July 2012, 8:05 AM