Honey Value Chain: linking smallholder farmers to market in Bhutan

Abstract

The study objectives were to understand the functions, constraints, and future opportunities of pro-poor honey value chain in Bhutan. Six dzongkhags (districts) and 12 gewogs (blocks) covering 120 households were purposively sampled. Primary data was collected using semi-structured questionnaire and focus group discussions. Over 80% of respondents attended trainings and had improved skills to take-up beekeeping in an accelerated mode. In five subtropical districts, the average honey production of Apis cerana honeybees were 1.66kg and 5.1kg, for traditional and improved hive, respectively. The costs of production per kg honey were Nu. 228 and Nu. 223, for Apis mellifera and Apis cerana, respectively. The average selling price of locally produced Apis mellifera honey in Thimphu was Nu. 727 per kg honey, which was twice the price for Dabur honey imported from India but lower than the locally produced Apis cerana honey. Apis mellifera honey offered a maximum profit margin of 39% to wholesaler and retailers in Thimphu while the maximum profit margin of 43% for Apis cerana honey was received by retailers and roadside vendors. The study concluded that the higher price of honey offers opportunity to produce high value honey from Apis cerana and Apis mellifera. Constraints to beekeeping were lack of awareness on markets and price, limited business management skills, less knowledge on value-addition, weak linkages with markets and input suppliers, and inadequate basic infrastructure.