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.
- 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
Income from Sale of Crude Honey
No. of harvests per year = 3
Occupation rate = 80%
Yield per hive per harvest = 8kg
20 hives x 0.8 x 8kg x 3 harvests/ year) = 384kg
384kgx 100/= per kg = Kshs 38, 400