African Honey Bee. Retaining development beekeepers through microfranchising. Apimondia Reference No: 0093

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1 African Honey Bee Retaining development beekeepers through microfranchising Apimondia Reference No: 0093

2 Fails to escape the poverty cycle Family in Poverty Struggles to earn an income Child grows up in poverty Significantly disadvantaged in education and skills

3 Fails to escape the poverty cycle Struggles to earn an income Significantly disadvantaged in education and skills Family in Poverty Child grows up in poverty AHB/Sappi input: - Hope - Training/Education - Earn income - Support - Marketing - Save and manage money

4 More options Improved yield, productivity Break the Improved environment Struggles to earn an income Improved health Fails to escape the poverty cycle Significantly disadvantaged in education and skills Self-sufficiency Family in Poverty Child grows up in poverty Innovation and alternative, Reinvestment additional income streams AHB/Sappi input: - Hope - Training/Education - Earn income - Support - Marketing - Save and manage money

5 Microfranchise structure Some benefits - Business relationship - Replication of methods - All are incentivised to make it succeed - Family owned and run microfranchisees - Share in the value chain upsides - Individual businesses - Governance Microfranchisor: - Provides training & support - Buys honey - Markets honey - Shares profit Microfranshisee: - Farms bees, chickens, veg =

6 Our model Saving and borrowing, teaches groups to manage and grow their money. Investing in the group incentivises a culture of responsibility, punctuality, and diligence, which helps the group function efficiently. Savings groups + learn to function as farmers associations Coming together monthly as savings groups stimulates social cohesion and Ubuntu, through which, we can help, and work with our beekeeper families more effectively.

7 + Self-selection: ABCD (Asset Based Community Development) Transformation takes place when our beekeeper families realise that they have assets: their God-given abilities, the natural resources on their door steps, scrap in their back yards, and so on - that they can change their lives with. An example of assets are the beekeepers family homes that are surrounded by Eucalyptus trees i.e. excellent honey producing flora.

8 + Skills transfer

9 Skills include: + beekeeping + small business + egg production + poultry meat + veggies + fruit

10 Microfranchising enables: + Partnership + Ongoing technical support + Ongoing logistical support + Access to market + Share in value chain profits

11 Reduction in honey hunter fires - turning honey hunters into honey farmers

12 Flat packs issued since 2016 Hives produced since 2016 Hives With Bees Level 1 Level 2 Level 3 Meeting Hive Inspection Buying Honey Poultry Fruit Trees Tower Garden Grand Total A summary of our attendance register from March to July in Focus has been on getting those who were trained last year producing honey this year. from March 2016 July ,738 Our approach of rewarding a Level 1 graduate with materials to build a hive (flatpack), has been working very well. 96% of the flatpacks we gave out were built into hives. As soon as a beekeeper has made their own veil, gloves, smoker, and hive tool, from old jeans, hats, tins and so on, they receive their first flatpack. Once they have caught bees, they get 4 more flatpacks. 1,151 1, This commitment based, milestone approach is sifting out those who are on the lookout for a quick handout. We hope that more bees will be caught in the upcoming season.

13 Project area: Richards Bay to Mozambique along the coast in KwaZulu Natal

14 2017 Month Sales per Month Buckets Produced Harvested Honey in Kg s Waste in Kg s Purchased Honey in Kg s Purchased Honey in Rands Group Leader Incentive Beekeeper families earn income from honey, egg, chicken meat, veggies, and from other business activities that we have helped and enabled them to start. All of these are difficult to measure. However, in trying to turn the project into a self-sustaining enterprise, we buy honey from those beekeepers who are keen to sell to us, through our microfranchise structure. The honey is then packed in a pharmaceutical pack house and sold through Pharmamark to pharmacies. This model is not viable because Pharmamark pay us the same price that we pay our beekeepers. As a result we are launching a new, very exclusive product, that we hope to supply directly to pharmacies, or exclusive retail outlets, hoping to achieve profits that we will share with our producers, stimulating loyalty and social cohesion. This honey, that we buy in is possible to measure. We are very encouraged by the results reflected below, that show that we are moving in the right direction. Mar ,73 kg 27,95 kg 239,78 kg R10475,40 R 1 198,90 Apr ,63 kg 102,3 kg 544,34 kg R24 529,60 R 2 721,70 May ,6 kg 179,6 kg 1098kg R55 753,89 R 5 490,20 Jun ,3 kg 275,1 kg 1559,3 kg R70 468,71 R 7 796,50 Jul ,36 kg 18,76 kg 135,6 kg R6 101,25 R 678,00 Aug ,04 kg 0 kg 44,04 kg R2 202,00 R 220,20 Grand Total ,7 kg 603,7 kg 3621,1 kg R ,85 R ,50

15 We use Poverty Stoplight and Productivity Survey to measure our beekeeper family s understanding of their poverty. Main areas African Honey Bee focuses on: Productivity survey 140 families 2016/17-93% Poultry for meat + 9% Poultry for eggs + 14% Keeping poultry + 24% Growing vegetables + 60% Selling vegetables + 63% Driving licenses + 119% Keeping bees

16 Goal 1: 1,000 beekeeper families with 5 hives each, producing 10kg per hive. Goal 2: Secure a direct market with a big chain retailer, and sell the honey as an exclusive, fully traceable, unadulterated, natural product, in small volumes that achieve substantial returns, enabling selfsustainability and profit share. Goal 3: Develop other practical income streams for the beekeeper families, and even set up other microfranchises to facilitate their success, if necessary.

17 Thank you Guy Stubbs