Business Performance Today48 full-time staff employed.Honey Care now has close to 68% market share in Kenya. TZ

Domestic market now being expanded; sales to Germany, UK, US.

Launched 7 Honey Products under HCA brand in 2001. 3 additional Honey Products launched under Beekeeper’s Delight Brand in 2003. New product just launched: Ginger Honey & Mint Honey. Experimenting with Coffee Honey, Vanilla Honey, Clove Honey.

Just launched Honey Stix – an innovative Bottom of the Pyramid (BoP) concept.

Well-established brand names in the domestic and regional market.

Direct distribution to all major supermarket chains, retail outlets, shops, hotels, lodges and restaurants.

Also packing for other companies / competitors, including Premier Food Industries.

Business Performance ContinuedUS$500,000 Patient Capital Loan from IFC/ World Bank to enable further

growth and expansion.US$ 350,000 from Swiss Development Corporation for further expansion,

Organic Certification in Tanzania. Additional US$95,000 from Swisscontact.

Major factory renovation and expansion in 2004-2005. Has doubled hive and honey capacity.

HACCP International Food Safety Certification completed.Consultancy increasingly important part of the business.Export of 120MT Beeswax by Dec 2005 to US. US$ 75,000 Trade Finance

secured from Shared Interest (UK) for additional Beeswax Export.Honey exports to US commenced in February 2006. Distributor agreement

with Nature’s Cradle Foods US. First trial consignment sent to UK in February 2006. Possible agreement with Nirvana Sugars UK.

Test marketing dried fruit product range under Nectar Africa brand name through supermarkets in Kenya. Papaya, pineapple, mango. Designing a new partnership with Africa Now to develop and scale a community-based approach to dried fruit production.

What Honey Care DoesHoney Care from GBI presentation for high-speed connection

Help Farmers acquire Hives

Provide Community Level Extension Services

Honey Extraction & Collection

Buy Honey at Guaranteed Price

Process, Pack & Sell Honey

Demonstrations & Awareness

CreationTraining in Beekeeping

Manufacture Hives

Langstroth Hive

Cut-out Hive

Kakuzi Training

Inspection

Production

Hive Manufacturing

Centrifuge

Centrifuge Tent and Farmers

Pictured above is the Kitui market. Fresh produce is sold daily under these wooden huts.

The farm house of farmer Joyce - a farmer who is enrolled in the Honey Care program.

Bee-keeping has supplemented Joyce’s income and helped her pay her childrens' school fees.

Besides bee-keeping, Joyce also maintains a small tree nursery which helps supplement her income.

Joyce demonstrates the use of the grinder which is used to produce flour from cow peas and/or corn kernels.

The women above are beating corn off the cob. The corn kernels will be ground into flour for consumption, and perhaps sale.

Here you see Joyce in her bee suit carrying a "smoker" in her left hand. The smoker creates small quantities of smoke which drive the bees out of the hive, while the honey is being harvested.

The bee suits cost about 3000 Ksh (US$38) a piece. Therefore, they are shared by many farmers in the district.

Joyce shakes hands with Honey Care's Managing Director, Farouk Jiwa, as Honey Care's District Bee Keeper, David, looks on. David helps Honey Care farmers in the KituiDistrict to produce more and more high quality honey; he is rewarded with a bonus of 10 Ksh for every kilogram of honey produced by his farmers.

Honey Care MD, Farouk Jiwa, gives farmer Simon cash for his honey. The price per kilo is set at 90 Kenyan Shillings per kilogram. A local government official looks on.

Total Beneficiaries:7,754

Direct Extension from HCA: 3,572

Dissemination Outreach: 15,428

Active Suppliers: 2,179

Women3,386 (44%)

Men4,034 (52%)

Youth 334 (4%)

Women1,629 (46%)

Men1,722 (48%)

Youth 221 (6%)

Women644 (30%)

Men1,535 (70%)

June 30, 2004Dissemination Outreach: 12,501

Total Beneficiaries: 5,681

Direct Extension from HCA: 2,022

Active Suppliers: 1,573

Women2,442 (43%)

Men2,940 (52%)

Youth299 (5%)

Women 923 (46%)

Men909 (45%)

Youth190 (9%)

Women480 (31%)

Men1,093 (69%)

March 31, 2006

% Change from June 30, 2004 to March 31, 2006

0102030405060708090

Outreach TotalBeneficiaries

ExtensionServices

Active Suppliers

Socio-Economic Impact (March 2006)Information Dissemination / Awareness Creation Outreach: 15,428 People.Langstroth Hives established in Kenya: 22,500+Traditional Hives supported in Kenya: 6,200 43.6% of Beekeepers in Kenya are Women.7,754 Households now involved in sustainable commercial beekeeping in Kenya. Representing 38,770 Direct Beneficiaries up-stream in Kenya alone (5 per HH). Numerous other downstream and indirect beneficiaries.Tracked households earning supplementary income of US$180-250 per annum

from beekeeping.5 Agricultural Colleges in Kenya now providing beekeeping training on a

commercial but ad-hoc basis. 220 Gov’t and NGO staff trained.Beekeeping now thriving in Western and Nyanza Provinces - regions not

traditionally known for honey production in Kenya. Hive Micro-Leasing Scheme established with Africa Now and K-Rep.3,000 hives disbursed on micro-lease basis in Western Kenya through Village

Banks by end of FY 04-05.Additional 2,500 hives disbursed under similar scheme in FY 05-06 and on-going.

Environmental ImpactFast-growing soft wood used for hive manufacture. No waste

generated; everything is recycled.Education on reduction of pesticides and chemicals. Holistic

approach to beekeeping promoted.Positive Environmental and Biodiversity value creation through

Pollination.Further enhanced by use of Native, Endemic Sub-Species.Bees for Trees approach with UNDP-GEF around Mt. Kenya

National Park as experiment in direct environmental links. Now being expanded to Eastern and Southern Africa Region with UNDP COMPACT.

Community beekeeping (Example: Kakamega Forest).Focus more on assessing linkages between beekeeping &

environment; still difficult to develop empirical indicators.

Market & Policy ImpactFounding member of the Kenya Honey Council. Brings all beekeeping

organisations and interested parties together – NOT successful so farHelped Government of Kenya prepare and submit Residue Plan for Kenyan

Honey to the EU. Kenya can now export honey to the EU. 4th African country to do so.

Government of Kenya now paying more attention to the sector; albeit with mixed results.

Key member of UNIDO Task Force on sector development in Kenya.Involved in various international working groups on private sector-driven

development models, including World Bank /IFC SGBI Dept, Schwab Foundation, SEED-UNEP.

Academic research with Schulich Business School, Coady International Institute, University of North Carolina, Brigham Young University, Cornell.

Sector is now far more active and competitors are emerging everyday.A dramatic decrease in imported honey in supermarkets in Kenya; key shift in

consumer perception of Kenyan honey. Serving the underserved base-of-the-pyramid through kiosk distribution and

weekly packages (75 g) market driving

Pictured above is the old type of log hive which sits high up in trees. This type of hive makes it very difficult for women to engage in bee-keeping, the bee keeper is required to climb up the tree in order to harvest honey.

Tripartite Business Model

Symbiosis

Honey Care

Symbiosis

Development Org / Donor Agency / MFI Rural Communities

Facilitate Community Assessment Community Organization SkillsGroup Formation & LoansIndependent Monitoring & Evaluation

Honey ProductionHive Management & HarvestingRecord Keeping

DemonstrationsAgro-ecological AssessmentTechnical Beekeeping TrainingRecord Keeping TrainingSupply Beekeeping EquipmentCommunity-based Extension ServiceGuaranteed Market on Contract Honey Extraction ServicesHoney Collection from farm / centreCash payment on-spotLoan Payment Deduction

Loan remittances from farmer Regular monitoring reportsProject status reports Oversee smooth exitPublicity and PR

Beekeeping equipment for farmersProject planning activitiesCoordination / communication Independent monitoring & evaluation

Participate in Community AssessmentGroup Formation and RulesIdentify Sites – Individual / CommunalStart Beekeeping – Produce honeyService Loans until Repayment Done

Honey Care Africahttp://www.honeycareafrica.com/

Key Success FactorsShorter/better distribution chainPremium productTechnology

– Langstroth HivesFarmer focus

• “Money for Honey”– Individual collection– Instant cash payment

• Training/Field support– Troubleshooting– Accurate forecasts

Differentiators• Farmers

– Consistency• Legitimacy• Trust in ‘business’

• NGOs– Prolonged impact– Leverage

Complementarities– Successful template

• Supermarkets– Customer satisfaction

Sources of Competitive AdvantageVa

luab

le

Hard to imitate/substitute

Money for Honey

Langstroth Hives

Consistency

Farmer Know-How Learning from/with stakeholders

Shorter Chain

Quality product

Farmer Focus

Trust

Business Model RedesignVa

luab

le

Hard to imitate/substitute

Money for honey

Trust & ConsistencyFarmer Know-HowCulture-Identification

Knowledge Brokerage

Word of Mouth

Shorter chain

Quality product

Farmer Focus

Technology: Langstroth Hives

“Non-essential” sources of advantage“Unexpected” sources of advantage“Unexpected” clogs (disadvantage)

Business Model RedefinitionVa

luab

le

Hard to imitate/substitute

Money for honey

Trust & ConsistencyFarmer Know-How Culture-Identification

Knowledge Brokerage

Word of Mouth

Shorter chain

Quality product

Farmer Focus

Technology: Langstroth HivesDried Fruit

Microbanking/ microleasing

Sun drying Stations

Extension OfficersFoundation: Social Value-Add

Social Capital Cycles

Sustainable Enterprise Models

Symbiosis

Enterprise

Symbiosis

Development Org / Donor Agency / MFI Communities