The project of honey production, processing, packaging and marketing envisages the farming of honeybees, extraction of honey followed by packaging and then distribution or supply to the consumer market. The proposed business will start initially with 125 beehives with a potential to reach at 315 hives. Networking with the honey suppliers from all over the country would be necessary to meet any requirement or shortfall in production.
Honey processing and packaging business requires simple tools & equipment such as Manual Honey Extractor, De-capping Knives & utensils, Small Drums and Camping Equipment for Apiary Staff and Standard Hives. Honey processing is considered to be a small-scale business in Pakistan. There are two types of honey being sold in the market, one is wild honey for which the largest source is FATA areas and Changa Manga (Punjab), while, farm honey is produced largely in Punjab and some areas of Khyber Pakhtunkhwa & Sindh.
Organic Honey Production Areas in Pakistan
Following areas have been identified where significant opportunities for honeybee farming exist, yet are not in practice:
- Kot Momin
- Shaheen Abad
- Mandi Bahauddin
- Tando Allahyar
- Tando Jam
- Mirpur Khas
Karachi is considered to be the biggest urban market, which consumes about one-third of the total honey being produced in Pakistan. Other major cities such as Lahore and Rawalpindi etc. are attractive local markets while for international markets including Saudi Arabia, UAE, Kuwait, Jordan and USA are potential markets for organic honey.
Organic Honey Production Process in Pakistan
Honey is extracted manually through steel extractor and other utensils.
For the proposed project, it is assumed that honey will be supplied in pure form and without processing. However, basic refining and filtration will be done to bring it in a form for direct consumption, before placing it in bulk containers or moving it to bottling sections.
Filling & Labeling
Manual filling Lines include bottle cleaning, filling, capping, front and back labeling and packing. All finished goods will be delivered to storage areas manually.
Warehousing / Distribution
The finished products will be stored in the warehouse and distributed according to the plan throughout the year as shelf life of honey is generally high.
Investment Required for Honey Business in Pakistan
Total Cost Estimate is Rs. 2.19 million with fixed investment Rs. 1.80 million and working capital Rs. 0.39 million. Given the cost assumptions IRR and payback are 47 % and 2.5 years respectively. Details of these financials can be studied in the business plan of organic honey in Pakistan.