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Cost Benefit Analysis for Hives

Farmers interested in venturing into beekeeping industry needs to know the various costs and production levels of the different hive types. The following are cost benefit analysis for different hives.
Assumptions

  • An economic unit comprises of at least 20 hives
  • Occupation rate will be 80% through out the projects lifespan
  • The farmer is knowledgeable about beekeeping and will manage the colonies well.
  • Life span of the equipment will be 10 years.
  • Price changes for hive products will be insignificant over the 10 years.
  • The analysis is based on a fixed cost depreciation

tables_1Income from Sale of Crude Honey

Assumption:

No. of harvests per year         =     3
Occupation rate            =    80%
Yield per hive per harvest     =    8kg

Honey Yield:

20 hives x 0.8 x 8kg x 3 harvests/ year) = 384kg

Revenue:

384kgx 100/= per kg = Kshs 38, 400

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