To start the Business of Bee-Keeping? How Profitable is Bee-Keeping Business? How much capital do I need to start this business? This article seeks to bring to the fore Tips for starting and make additional Income from Bee- Keeping Business.
Honey -Bees start making honey, which is their food, by visiting flowers. They collect a sugary juice called nectar from the blossom by sucking it out with their tongues. They store it in their honey stomach, which is different from their food stomach. When they have a full load, they fly back to the hive. Honey bees collect nectar and convert it to honey. The majority of honey bee larvae eat honey.
Bee farming is a profitable venture, which you can set up with less than two hundred thousand Naira. This will include production of the hives and getting the it colonized. The Location could be a Farmland where the weather conditions are favourable. The bees do not require daily care and you would not need labor until harvest and processing period.There also many products apart from Honey derived from the Bee keeping Examples include: wax (for use in furniture polish, candles and crayons) pollen (used for food, cosmetics, preparation of medicine and hand pollination), propolis (used for repairs of the honeycombs), venom (used for preparing medicine), royal jelly (which is food for queen bees), etc.
Nutritional Benefits of Honey.
- Honey adds good nutrition to diet as a source of Vitamins, and Minerals to the body.
- Honey serves as a major input in Orthodox and traditional medicines.
- Intake of Honey keeps you mentally alert and physically strong for work.
- It is a highly sourced raw material for Industrial Products.
Getting Started with Bee Framing
Obtain your hives:
A hive is a box for keeping the bees. It can be made from different materials. The hives enables the bees to build their nests so that you can manage them easily. It aids easy movement for the bees. All the bees want is a place large enough for the whole colony, its stores, and protection from the weather and attackers.Obtain your hives from the right source, know the parts of a hive and how and when to use them properly. It’s important to have adequate boxes known as ‘supers’ with frames available to place on your hives during nectar flows. If you have 1,000 hives, you will need at least 2,000 extra supers. To start it is okay to go for 500 -2,000 Hives and take advantage of the potentials.
Feed your bees during scarcity of nectar: Having sufficient feeders, sugar and a good water source are essential to caring for your bees properly. Treat your bees with certain medicines to address mites, insect pests, or other diseases.
Cost and potential Income
After the hives have been colonised, which usually is a short while after sitting and baiting, you allow about 10 to 12 months for the honey to mature. Subsequently you can harvest at 7-8months interval. Proper handling of the bees is necessary so they don’t abscond,especially during harvest.
You can get as much as 12 litres of honey per hive in the first year, which can be sold for about N1,500 per litre if retailed, while you will get over 10litres of honey every six to eight months.
10 x 100 is 1,000 litres. That’s N1.5m every 6-8 months for as many years as you want.
Factors to Consider in Locating the Bee Hive
- The first factor is to ensure that there are plenty flowering plants and trees in the area and make sure water source is close to the hives
- Bee hives must be located far from sprayed pesticide.And also they must be protected from strong winds and strong sunlight by placing them under trees or artificial shades.
- Hives must be placed far from Human activities to prevent been stung by bees.
Harvesting your Honey
Harvest honey at the end of the flowering season. You pick the extreme combs that contain ripe honey with an envelope of thin layer of white beeswax. As you harvest mature honey, make sure you leave combs containing pollen or developing bees. After separating honey from the beeswax combs, melt the beeswax over water into a block and store until you gather enough for sale. It does not spoil with time. Always return empty combs to the hives for bees to produce more honey.
Fikayo Owoeye writes for Nairametrics
How MSMEs can get easy access to finance
MSMEs must take the following steps for loan readiness.
MSMEs are considered the backbone of the Nigerian economy. In 2019, they made up 90% of all registered businesses, contributed more than 50% of the country’s nominal GDP, and employ 84% of its labour force. Despite this, MSMEs were the recipients of less than 5% of all credit granted by the banking industry.
One reason for this is self-selection by MSME owners. Many MSMEs refuse to apply for loans from banks due to a fear of rejection and a belief that banks charge exorbitant fees and request hefty collateral before giving loans to MSMEs. Now more than ever, in this era of cashflow-based lending and low-interest rates, this harmful myth is costing businesses access to finance that they need to scale.
Another reason is the MSMEs’ lack of loan readiness. Unlike large companies, small business owners do not prepare themselves before applying for loans. This causes them to make many mistakes that discourage banks from lending to them due to a fear of non-repayment.
In order to overcome this hurdle and join large businesses in taking advantage of the low-interest climate, MSMEs must take the following steps for loan readiness:
1. Maintain financial records – Research shows that 69% of MSMEs in Nigeria do not keep detailed financial records. As a business owner, you must ensure that funds pass through your business account. Your business’s financial records as reflected in your bank statement will help your bank determine your repayment capacity. This is important, whether you want a collateral-free or collateral-based loan.
2. Use narrations for transfer into personal accounts – Again, always use your business account for business funds. However, if funds must be paid into your personal account for any reason, then ensure that those payments have a narration that reflects the purpose of the payment. For example, Two shirts purchased. This helps isolate business funds from personal when computing your turnover in order to determine your loan amount and repayment capacity.
3. Know what you want – Always know exactly how much you want and what you want it for. If your account officer asks you how much you want and you say “any amount you can give me”, they automatically assume you have no plan for the money or a plan for repayment. Before approaching your bank, determine how much you need and how much you can repay per month, using your monthly income.
4. Have a repayment plan – Always have a plan for repayment. Know how much you can afford to part with per month. Note however that your repayment plan might not align with that of the bank. Banks prefer not to take more than 33% of your monthly income in loan repayments, so your loan repayment period will probably be dependent on how much you can pay per month. Regardless, a well-thought-out repayment plan will build confidence in your repayment ability.
5. Engage your account officer– It is important to have an engagement with your account officer before applying for the loan. Instead of just writing a loan application letter to the bank and waiting for a response. Armed with your financial statement and your knowledge of how much you need and for how long, visit your account officer and have them work with you in getting your loan.
Ese Atakpu is a writer and banker.
AFEX raises $50 million to Finance Agri-SMEs in Nigeria
The $50 million Agri-SMEs fund is expected to bridge the funding gap between lenders and borrowers in the agric sector.
AFEX Commodities Exchange Limited (AFEX), a private commodities exchange company, has announced the first Warehouse Receipt Backed Commercial Paper in Africa. The paper has tech-enabled operations and a 24-hour fast cash turnaround for borrowers.
This was disclosed by AFEX in a statement issued and seen by Nairametrics on Thursday.
The $50 million Agri-SMEs fund is expected to bridge the funding gap between lenders and borrowers in the Nigerian agricultural sector with a commodity-backed instrument – for the first time.
Ayodeji Balogun, CEO, AFEX, stated, “The AFEX financing deal will help eradicate the high cost of procurement incurred by processors by deploying a discounted value of a warehouse receipt distributed among five leading players in the Food and Beverage, Trading Poultry and Animal Feed segments in Nigeria.
“The receiving companies are top 10 players in their respective segments. They have now been enabled access to a tool for managing price volatility, enabling up to 30% direct savings on prices.
“With our vision to reach a cumulative total of over $5 Billion in investment to the agriculture sector over the next five years, this financing deal is right on track to achieve this goal.’’
He added that as AFEX move towards building a derivatives market in Africa, “we want to be able to reduce exposure to price risk for stakeholders, by enabling them to hedge their positions and trade in commodity derivatives.”
Why it matters
- The warehouse receipts, which can then be transferred from commodities to a financial asset and listed under the borrower’s portfolio on the AFEX trading platform, will create a sustainable funding structure and address underfunding in the Nigerian agricultural sector.
- With the warehouse receipt system linked to financiers, the system allows financiers value and marks the commodities’ price to market on a real-time basis.
What you should know
- AFEX’s mission is to provide low-risk working capital facility for stakeholders in the Agro sector, in a way that is transparent and has a very high viable investment return.
- As a licensed commodities exchange and warehouse receipt system operator, it deploys a warehouse receipt system and collateral management infrastructure to increase market confidence for both lenders and borrower.
Nairametrics | Company Earnings
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- Seplat falls into a loss in FY 2020
- 2020 FY Results: Cornerstone Insurance Plc reports a 61.1% decline in profit
- Ellah Lakes increases operating expenses by 33.36% in HY 2020
- 2020 FY Results: Nigerian Breweries reports a 54.3% decline in profits in 2020
- Abbey Mortgage Bank projects N51.08 million profit in Q2 2020.