Development in the Supply Chain of the Philippine Honey Industry: An Assessment

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This presentation was presented by Mr. Elmer R. Esplana, a Filipino economist and an interdisciplinary researcher, currently working as a government agriculturist at the Marketing Development Division of the Bureau of Animal Industry during the 8th National Beekeeping Convention cum Symposium of the Beekeepers Association of the Philippines, Inc. held at the Don Mariano Marcos Memorial State University, North La Union Campus, Bacnotan, La Union with the theme "Livelihood Opportunities and Environmental Conservation Through Beekeeping"

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Development in the Supply Chain of the Philippine Honey Industry: An Assessment

  1. 1. Development in the Supply Chain of the Philippine Honey Industry: An Assessment By Elmer R. EsplanaNational Secretariat Coordinator, National Task Force on Price and Volume Watch, Marketing Development Division, Bureau of Animal Industryand President, Club of Professional Researchers for Development Presented at the 8th National Beekeeping Convention Cum Symposium of the Beekeepers Association of the Philippines, Inc., at the Don Mariano Marcos Memorial State University, North La Union Campus, Bacnotan, La Unionwith the theme “Livelihood Opportunities and Environmental Conservation Through Beekeeping” December 8, 2009
  2. 2. Objectives of the Presentation• The main objective of the study is to document and assess the developments in the Philippine honey industry supply chain.• Specifically, the study aims to: 1) provide a baseline information on the developments in the Philippine honey industry from input supply, production, processing, marketing and consumption; 2) identify the best practices along the supply chain approach; 3) develop a competitiveness analysis of honey with major producing countries; 4) suggest solutions for the inefficiencies, gaps and problems encountered by the industry along the supply chain; and 5) recommend strategic directions for the Philippine honey industry.
  3. 3. Figure 1. Conceptual Framework for the Honey Industry Supply Chain and Development Assessment
  4. 4. Results of the Study• Supply Chain -the core business process in any organization that creates and delivers a product or service, from concept through development and manufacturing or conversion, and into a market for consumption. It is called as the “seed to shelf” or “breed to plate” or “farm to spoon” approach.
  5. 5. Mission of Supply Chain• The mission of supply chain, as a management approach, is the ability of individual agribusiness firm/establishment or an industry “to enhance the customer’s experience through excellence in delivering the right products, services, resources and information seamlessly to the right place at the right time.”
  6. 6. Industry Focus of Supply Chain Management• The industry focus of supply chain management includes activities such as 1) integrated behavior, 2) mutual sharing of information, 3) mutual sharing of risk and rewards, 4) cooperation, 5) same goal and same focus on serving customers, 6) integration of processes, 7) partnership in building and maintaining long-term relationships among each industry stakeholder.
  7. 7. Figure 2. Honey Industry Supply Chain FrameworkInput Supply Production Processing Marketing ConsumptionSource: Esplana, Abao, Vasquez, 2007
  8. 8. Honey Industry in the Philippines• Input Supply - The suppliers of the honey industry are those industries, which provide raw material inputs and processing technology. Raw material inputs include queen bees, sugar, honeybee health products and production technology. Processing technology includes honey processing equipment, packaging materials and other utilities.
  9. 9. Queen Bee Breeders• There are four native and one exotic honeybee species that exists in the Philippines which serve as sources of honey and other by- products (NARTDI, Medium Term Development Plan 2002-2006).• There are few beekeepers who are also selling queen bees.
  10. 10. Sources of Queen Bees• The sources of queen bees are the National Apiculture Research, Training and Development Institute, Ilog Maria Honey Bee Farm, Cebu Honeybeekeepers Association Inc. and other associations, some state colleges and universities; and some breeder of bees such as Romy Kibungan of Baguio City, Romy Fenol of Alfonso, Cavite, Toby’s Farm of Baguio City, Deonofre Ugot and Reynaldo Mostrales, Bacnotan, La Union, and Albert Marsha of Metro Manila
  11. 11. Table 1. Selected Privately-owned Honeybee Farms that sell Queen Bees Name of Company/Farm Estimated Number of Colonies LocationRomy Fenol 135 Alfonso, CaviteAlbert Marsha 65 Metro ManilaToby’s Farm 130 Baguio CityBen Borbe 120 Bay, LagunaCebu Beekeepers 180 CebuAdor Pecasa 75 Davao Del NorteDeonofre Ugot 50 Bacnotan, La UnionReynaldo Mostrales 45 - do -Daniels Honeybee Farm 36 PangasinanRomy Kimbungan 100 Baguio CityJanen Paradero 45 Cagayan de OroSource: NARTDI
  12. 12. Queen Bee Importation• According to NARTDI, they received imported honeybee in 2005 at 30 queen bees and six queen bees in 2006 which came from Canada/Australia, as part of their staffmember training package. Statistics from the NSO showed that in 2007, there are 16 kilos of bees which was imported from Hawaii and United States.
  13. 13. Total queen bees sold by NARTDI from 2004 to 2008• From 2004 to 2008, the number of queen bee only sold by NARTDI totaled 255 pieces or an average increase of 38 percent per year. Total queen bee sold from 2004 to the current year was 277 pieces. On the other hand, the number of honeybee colonies that they sold totaled 30 from 2006 to 2009. The number of colonies sold from 2006 to 2008 increased by an average of 192 percent per year.• Production of queen bees, in a national scale, is not enough to cope with the demand.
  14. 14. Sugar as substitute feeds of honeybee• Sugar, although not a natural food for honeybee is sometimes used as feeds for the honeybee for them not to starve during rainy season, when they cannot go out to forage. The ratio is 50 percent sugar with 50 percent water which is put in a transparent plastic, then place above the frames. This means that for a one kilo sugar, it can be diluted to one kilo water.• One sack of white sugar cost PhP1,630 or PhP33/kilo based on the data provided by NARTDI.
  15. 15. Hives Model• Different countries have adopted different hive models depending on the available local materials and needs of the beekeepers. A strong colony should have at least 6-8 frames with bees when food resources are limited, but may easily expand to 10 frames and above when there is abundant supply of nectar and pollen - NARTDI.
  16. 16. Labor Cost• In terms of labor, the beekeepers themselves serves as the entrepreneur and caretaker of their honeybee farm either in backyard or commercial operation. Majority of the beekeepers have at least 3 to 20 colonies which are considered as backyard beekeepers operators. For those beekeepers with assistant, for two to three hours part-time work per week, or an equivalent of 2-3 days per month was paid P200 per person.
  17. 17. Medicine (Drugs and Biologics) used in Honeybee Culture• According NARTDI, some of the drugs and biologics which they used to control pest in honeybee culture include Apistan, Fluvalinate, Formic acid and powdered sugar to kill varroa mites. Varroa mite is the most common pest in the Philippines. In terms of medicine, a beekeeper spend P270 per colony per cycle.
  18. 18. Livestock and Poultry Traders as Suppliers• In the Philippines, with the development of the livestock and poultry industry input suppliers, some honeybee industry players partially gets their equipment and supplies from the existing traders/suppliers that are supplying also the livestock industry stakeholders such as Bound Fresh Foods, San Miguel Foods Corporation or Universal Robina Corporation, including veterinary drugs companies which have main clients that are livestock and poultry agribusiness players.
  19. 19. Few Queen Bee Breeders are adapting AI Technology• Although when it comes to artificial insemination (AI) technology for bees, only few queen bee breeders are adopting this technology in their individual honeybee farm. One example is the facility used by the National Apiculture Research, Training and Development Institute, although it is primarily used as a learning and training tool.
  20. 20. PRODUCTION• There are five species of honeybee which could be found in the Philippines. Four are indigenous bees, Apis cerana, Apis dorsata, Trigona, Apis andreniformis while the other one is the foreign honeybee which is Apis mellifera introduced to the country by the Americans during 1913. Apis andreniformis could only be found in Palawan island.
  21. 21. Estimated Colonies in 2008• The National Apiculture Research, Training and Development Institute estimated that there are around 7,500 to 8,500 colonies in the country, as of 2008. Around 10 percent of total colonies are used for brood support. There are approximately 600 to 700 active beekeepers in the country. The average colony holding per beekeeper is thirteen (13) colonies per beekeeper.
  22. 22. BAPI estimated honey production in 2006 with total value (honey and stock inventory) of around P90 million• In 2006, the Beekeepers Association of the Philippines, Inc., one of the biggest beekeepers associations in the Philippines estimated that total honey harvest was 134,501 kilograms. Total value of honey was estimated at P33.6 million, in 2006. In terms of value of stock inventory, it was estimated at P57.2 million. There are around 238 jobs generated full-time jobs in 2006 and an estimated of 719 part-time laborers.
  23. 23. Honeybee was affected by Global Warming and Colony Collapse Disorder in 2007 to 2008• During 2007-2008, honey production was adversely affected by the global warming. It was during this time that the honey production declined due to scarcity in pollen and nectar in different areas, where honeybee is produced.• According to Apiary inspectors of America, a national group that tracks beekeeping said, that some beekeepers have lost 26 percent of their colonies between September 2006 and March 2007 which could possible due to colony collapse disorder. The three most likely candidates for the unknown cause of disappearance of bees which contributed for the collapse of the different colonies in about two days were: a virus, a fungus or a pesticide.
  24. 24. NARTDI and UPLB Leading in the Development of Beekeeping in the Philippines• Currently, there are around 320 colonies in NARTDI. The National Apiculture Research, Training and Development Institute (NARTDI) of Don Mariano Marcos Memorial State University and UPLB Bee Program are two leading education institutions that are involved in the development of beekeeping in the Philippines.• Some other state colleges and universities and private university that are already involved in beekeeping include: Cavite State University, Benguet State University, Camarines Sur State Agricultural College, Mariano Marcos State University, Philippine Normal University and Saint Louis University.
  25. 25. Beekeepers Organized Producers/Associations• There are at least 34 beekeepers producers/associations that exist in the Philippines, excluding those associations which are not yet indentified.• The most notable associations include BEENET, Beekeepers Association of the Philippines, Inc. (BAPI), Filbee, PhilBee, Beekeeping Congress of the Philippines, Inc., Cebu Honeybeekepers’ Association Inc. to name some. The listing of beekeepers associations/organized producers in the Philippines is shown in Table 2. There are other organized producers which are not yet identified here, but could probably be incorporated with the proposed industry study by the author in collaboration with NARTDI.
  26. 26. Table 2. Name of Major Associations/Organized Producers of Honeybee in the Philippines, 2009 Name of Major Associations/Organized Producers1. Beekeepers Network Philippines Foundation, Inc. 18. Cordillera Beekeepers Overseas Workers Assn. Inc.2. Cebu Honeybeekeepers Association Inc. (CHAI) 19. Irisan Beekeepers Assn. Inc.3. PhilBee 20. Kennon Road Beekeepers Assn. Inc.4. FILBEE 21. La Union Beekeepers Assn. Inc.5. Beekeepers Association of the Philippines 22. Maco Beekeepers Assn. Inc.6. La Union Beekeepers Assn. Inc. 23. Palawan Beekeepers Assn. Inc.7. Guinobatan Beekeepers Cooperative 24. Tadiangan Beekeepers and Livelihood Association, Inc.8. Guimaras Beekeepers’ Cooperative 25. United Beekeepers Assn. Inc.9. Malabanan Multi-purpose Cooperative 26. Balanban Beekeepers Cooperative10. Panabo Beekeepers Cooperative 27. Moalboal Beekeepers Association11. Philippine Apicultural Foundation 28. San Franciscom Beekeepers Association12. Tropical Honeybeekeepers Association 29. TREL Cawayan Beekeepers13. Davao Del Sur Beekeepers Multi-purpose Cooperative 30. Negros Oriental: PNOC Beekeepers14. Kiotoy Multipurpose Cooperative 31. Southern Leyte Beekeepers Association15. Bicolandia Beeraisers Association 32. SLU EISSEF Association or Global Apiarists Inc.16. Borbon Beekeepers Assn. Inc. 33. Santo Nino Lipa City Beekeepers Association, Inc.17. Cordillera Beekeepers Assn. Inc. 34. Honey beeProducers Cooperative Source: Beekeepers Industry Roadmap, NARTDI, Internet research
  27. 27. Some Successful Business Model Honeybee Players• Some of the major private sector big players in the honeybee culture and production of honey and bee products with successful business model include the Ilog Maria Honeybee Farms with 800 colonies and Bohol Bee Farm Resort and Restaurant with 80 colonies. Ilog Maria is an integrated honeybee farm with website facility for ordering their products. It was located in Silang, Cavite. Ilog Maria is considered as the most integrated operator of honeybee culture in the country. It is owned by Mr. Joel Magsaysay.
  28. 28. Some Successful Business Model Honeybee Players• Bohol Bee Farm is a diversified honeybee farm, resort and restaurant. It is an integrated agri-tourism spot in the Dauis, Panglao Island, Bohol. It is owned by Victoria Wallace. There are a lot of tourists that are visiting the said bee farm for experiential honeybee farming learning activities.
  29. 29. PROCESSING• There are few processors of honey and bee products in the country with best practices. Some of them include: Ilog Maria, in Cavite, Bohol Bee Farm, in Bohol, MarinduqueLand Corp in Marinduque and Bountry Fresh Food Integrated Farm, in Bukidnon.
  30. 30. Ilog Maria Honeybee Farm• Ilog Maria Honeybee Farm is an integrated bee farm operator with a website shopping cart as their main mode of purchasing their product. Being an integrated operator in the honeybee industry, they are the most number of processed products and by-product produced from honey and bee products. Some of their products include: honey, natural bee pollen pellets, raw propolis, fresh Royal Jelly, scented beewax candles, beewax, propolis soap and shampoos, honey cedar vinegar, bee venom, to name a few. Based on their website there are two means of payment for Ilog Maria products such as: 1) the usual way, by making a deposit to their account and faxing the deposit slip to them; and 2) a newer way by GCash and Smart money. As part of their value-added services, they host field trips or conduct tours within the bee farm for a minimum of 50 people. Tour in Ilog Maria is designed for walking through along the fresh cool air and walk around their garden. They have established their own museum which they call “Museo sa Ilog Maria.” There are other value-added services that they are doing that include bee seminar, contract pollination services and bee project consultancy.
  31. 31. Bohol Bee Farm• Bohol Bee Farm which is an organic bee farm with hotel resort and restaurant. They have 17 products from honey and honeybee by- products that are currently offering to their clients. Some of these products include: pure honey, honey spread, bee pollen, honeyed salabat, bee propolis, honeyed muffins. Bohol Bee Farm is promoting organic farming.
  32. 32. MarinduqueLand Corp• MarinduqueLand Corp is a virgin coconut oil and apiculture products processor. The processing plant is located in Barangay, Pangi, Gasan, Marinduque. Currently, they are promoting the honey from Apis Cerana bee products. According to Mr. Archie Armada, their Marketing Director, they are just sourcing their honey from beekeepers or farmer folks. They have no honeybee farm yet. Some of their products include: Apis Cerana Honey, lip balm, coco rub, zunshade, massage gel. This company is an advocate of natural and organic farming.
  33. 33. Bounty Fresh Foods, Inc.• Another company with best practice in the processing sector of the honeybee industry is the integrated farm of Bounty Fresh Foods Inc. in Malaybalay, Bukidnon. Poultry integrated farm is the main business of Bounty Fresh Foods, but within this farm is their honeybee farm with 54 hectares organic coffee and five hectares dragon fruit farm. They are producing honey for their own company’s consumption. Bounty Fresh Food sells Spicy Honey Chicken, as one of their value-added chicken ready-to-cook products to all SM Supermarkets and other supermarkets where they are selling this chicken. Aside from their own consumption, they have created their own honey brand based on their existing brand name “Bounty Fresh Honey.”
  34. 34. Learnings from the best practices of some key players• There should be a business model• There should be an advocacy e.g. natural or organic farming, wellness and client-friendly• The importance of value-added products and services• Integrated operation and diversification from the core business• Effective supply chain management• Application of agribusiness management approach in operation.
  35. 35. MARKETINGHoney Products• In the Philippines, honey product is slightly cheaper or more or less the same in the domestic market than the imported products. Pure La Union Honey, particularly the network of beekeepers under the La Union Beekeepers Association, Inc. and NARDTI-DMMMSU honey product is sold at a wholesale price of PhP200 to PhP220/kg.• The retail price was ranging from PhP110 to PhP120 for 330 grams and PhP285, for 800 grams.
  36. 36. Honey Sold in SM Supermarkets• One popular locally-produced honey which is sold in all SM Supermarkets is the Cem’s Honey Products. Cem’s Raw Wild Honey (in sachet) is sold at PhP74.00 for 240 grams; and Cem’s Honey with Calamansi for 320 grams, by PhP58.50; Cem’s Honey Orange at 350 ml, by PhP71.80 and Cem’s raw Wild Honey for 350 ml at PhP71.50.
  37. 37. Imported Honey sold in SM Supermarkets• On the other hand, imported honey with the brand name Orange Blossom from the United States, which could be found in all SM Supermarkets is at PhP176.50 for 340 grams; for 227 grams, PhP132.50 while for 680 grams, PhP321.50.• Another imported brand honey is SueBee Aunt Sues Honey also from United States. For 907 grams of Aunt Sue’s imported honey, it is sold at PhP384.50 while for Aunt Sue’s Raw Wild Natural Honey, for 454 grams is sold at PhP222.50. Finally, another imported is Little Bee Honey which is sold at PhP106.50 for 340 grams.
  38. 38. La Union Beewax• In La Union, Beewax is sold at PhP400/kilo while propolis at P5,000 per kilo. The demand of honey is high during the months of December and January. For an eight kilos of honey produces 1 kilo of beewax.• For the honey production of La Union, some of their clients include private individuals, government offices, or even honey processing companies. They actually cannot cope with the demand with the unstable volume and irregularity of supply of honey for some processing plant clients.
  39. 39. Philippines is Net Importer of Honey• The Philippines is a net importer of honey bee products. An average of 225 tons of honey, from 1994 to 2008 is imported every year aside from other bee products such as royal jelly, pollen, propolis, queen bees, to name a few. The country could produce only 150 tons from cultured hives of Apis Mellifera, Apis Cerana and Trigona Spp. Apis Dorsata is hunted for its honey by rural folks.• Around 60 to 70 percent of local honey consumption are imported mostly from Australia, the biggest importer of natural honey to the country.
  40. 40. Philippines is exporting beekeepers• The country is exporting beekeepers to Australia, Canada and New Zealand. There are at least 500 registered beekeepers at beekeeping associations in the Philippines. High-level beekeeping expertise can be found in the country for those contemplating to establish commercial beekeeping, although they tend to become overseas workers.
  41. 41. World supply of pure honey• The world supply of pure honey (honey not contaminated with substances harmful to human health) is declining.• China, a major supplier of honey bee products is banned to export to USA and other European countries because its bee products are contaminated with banned antibiotics.• This would be an opportunity for the Philippines to fill the void cause by this ban. The Philippines is in the position to sell organic bee products to the world market, if we will only take this opportunity as our competitive advantage.
  42. 42. Figure 3. Marketing Channel of Honey and Bee Products Foreign Retail Shop Supplier Manufacturer / Local Repacker Consumer (Domestic Market) Importer Supermarket Trader/Distributor Specialty Store Local Exporter Producer Foreign BuyerSource: Esplana, 2009
  43. 43. CONSUMPTIONLocal Demand• There are around 150 tons of locally produced honey which is consumed per year.• There are an average of 416.98 tons imported natural honey from 1994 to 2008 (Table 3). Average CIF price during the same period was recorded at $US1.99. From 1994 to 2000, the average growth per year in terms of quantity was 39 percent while in terms of CIF value 26 percent. From 2001 to 2008, the average growth of quantity slowed down to 7.66 percent per year. But in terms of value, it increased by 22 percent per year. As of 2008, total CIF value of imported natural honey was posted at $US1.07 million or P51.36 million.• Estimated total demand per year is 370 to 535 tons per year for the natural honey while 63 tons for artificial honey.• So total value of natural local and imported honey in 2008 was P82 million.
  44. 44. Table 3. Importation of Natural Honey from 1994 to 2008 (In Kilogram; and $US) Year Quantity CIF Value ($US) $US/Kilo 1994 17,061 52,121 3.05 1995 262,211 360,468 1.37 1996 171,646 324,155 1.89 1997 318,558 590,855 1.85 1998 227,360 387,705 1.71 1999 361,827 589,036 1.63 2000 271,692 305,760 1.13 2001 152,591 167,509 1.10 2002 245,681 303,188 1.23 2003 191,146 287,275 1.50 2004 84,953 330,294 3.89 2005 140,864 282,866 2.01 2006 415,778 863,664 2.08 2007 131,652 340,078 2.58 2008 385,060 1,069,782 2.78 Average 225,205 416,984 1.99 GR(1994-2000) 39.04 25.99 GR(2001-2008) 7.66 22.00 Source of Basic Data: NSO
  45. 45. Imported Artificial Honey• Average quantity of artificial honey from 1994 to 2006 was recorded at 63 tons while in terms of CIF value $US63,355 (Table 4). In terms of importation of artificial honey from 1994 to 2000, it decreased by 60.41 percent per year while in terms of CIF value, it decreased by 52 percent. On the other hand, from 2001 to 2006, quantity of importation of artificial honey increased by 15 percent per year while its CIF value increased by only 4 percent. The average price per kilo of imported artificial honey was recorded at $US1.28 per kilo. As of 2006, the quantity of imported artificial honey was posted at 104 tons while in terms of CIF value was $US67,796.
  46. 46. Table 4. Importation of Artificial Honey (Wtr/Not Mixed W/ Natural Honey) from 1994 to 2006 (In Kilogram; and $US) Year Quantity CIF Value ($US) $US/Kilo 1994 204,937 310,078 1.51 1995 101,103 107,884 1.07 1996 70,925 53,869 0.76 1997 95,133 67,948 0.71 1998 58,724 79,016 1.35 1999 1,272 2,179 1.71 2000 708 3,583 5.06 2001 51,143 44,103 0.86 2002 21,854 21,398 0.98 2003 16,322 13,819 0.85 2004 68,178 40,303 0.59 2005 21,674 11,645 0.54 2006 104,267 67,796 0.65 Average 62,788 63,355 1.28 GR(1994-2000) -60.41 -52.43 GR(2001-2006) 15.25 4.07 Source of Basic Data: NSO
  47. 47. Imported Natural honey in 2008• There are 385 tons of imported natural honey in 2008 valued at $US1 million. Of the total CIF value, the top five biggest country suppliers of imported natural honey in 2008 include: Australia, which contributed 89 percent; Thailand, 4 percent; Argentina 3 percent; United States, 2 percent and France, less one percent. Other countries, aside from the top five contributed only by one percent (Table 5).
  48. 48. Table 5. Five biggest country suppliers of natural honey in the Philippines in 2008 Total Total Percent 2008 Country Quantity CIF Value share Per kiloAustralia 336,880 953,630 89.14 2.83Thailand 23,882 39,415 3.68 1.65Argentina 10,175 33,491 3.13 3.29United States 6,856 25,578 2.39 3.73France 1,846 6,852 0.64 3.71Total Top Five 379,639 1,058,966 98.99 2.79Other countries 5,421 10,816 1.01 2.00Total All countries 385,060 1,069,782 100.00 2.78Source of Basic Data: NSO
  49. 49. Major Importers of Honey• Based on the Bee Industry Roadmap, some of the major importers of honey include: Colgate-Palmolive Philippines, PHILUSA Corporation Apollo Chemicals, Rustans, Fly Ace Corp, Nestle Philippines, XTC Inc. Carica Health Products and Golden Star Marketing Inc.
  50. 50. Table 6. Regional and Provincial Centers, LGU Collaboration and 2009 Proposed Zonal CentersRegional Centers RegionCamarines Sur Agricultural College Region 5Southern Luzon State University Region 4Cagayan State University Region 2Provincial Centers ProvinceIsabela State University IsabelaMountain Province Polytechnic State College Mountain ProvinceSaint Louis University BaguioPangasinan State University PangasinanBenguet State University BenguetLGU Collaboration LGUs La Union Cagayan Isabela Ilocus Sur Lanao del Norte Aurora2009 Proposed Zonal Centers to be Established Zonal CentersSoutheastern Philippines State University MindanaoCentral Visayas State University VisayasSource: NARTDI
  51. 51. Table 7. Trainings/Seminars Conducted with Fee and Free from 2001 to 2009 Training/Seminar Conducted 2001 2002 2003 2004 2005 2006 2007 2008 2009 TotalTraining/Seminar with Fee 5-day Beekeeping Training 3 1 3 2 6 8 3 2 28 On-the Job Training on Hive Management 3 5 7 8 2 25Total of Training/Seminar with Fee 3 1 3 2 9 13 10 10 2 53Free Training/Seminar Specialized Queen Rearing Training 1 1 1 3 5-Day Beekeeping Training 3 2 5 Trainors Training on Beekeeping 1 1 2 2-Day Basic Beekeeping Refresher Course 1 1 2Total Free Training/Seminar 0 1 3 1 4 1 2 0 0 12Grand Total Number of Training Conducted Per Year 3 2 6 3 13 14 12 10 2 65Source: NARTDI
  52. 52. Table 8. Training Fee in NARTDI, 2001 to 2009 Cost of Training Per Module/Session 2001 2002 2003 2004 2005 2006 2007 2008 2009Training/Seminar with Fee 5-day Beekeeping Training 3975 3975 3975 3975 3975 3975 3975 4500 4500 On-the Job Training on Hive Management 500 500 1000 1000 1000Source: NARTDI
  53. 53. Table 9. Technology/Research/Procedure/Information and their Main Use/Function developed by NARTDI Name of Main Use/Function Beneficiaries Date Developed Technology/Research/Procedure/Information 1. Queen rearing (NARTDI condition) Production of queen Beekeepers 1991 2. Migratory Beekeeping Honey production Beekeepers 1991 3. Stationary beekeeping Honey production Beekeepers 1991 Control of varroa for pests and 4. Sugar dusting Beekeepers 2007 diseases 5. Hygienic testing Beekeepers 2007 6. Brood rearing Honeyflow Beekeepers 1991 Prevention and control of 7. Integrated Pest Management (IPM) Beekeepers/supporters 1991 pests 8. Production development Value-adding Beekeepers 2008 9. Pollination Increase crop production 1998 Farmers and Beekeepers Source: NARTDI
  54. 54. DA One-Stop Agribusiness Center (OSAC)• OSAC is a virtual mini-mart; exhibit area, agribusiness information hub, and a training-seminar room rolled into one. At OSAC, producers and buyers can meet conveniently and forge mutual and hopefully lasting marketing arrangements. It has an exhibit area where the producers can showcase their fresh and processed products for the appreciation of prospective Filipino and foreign buyers, and the general public, as well.• DA marketing assistance support is not enough to give an impact on the different agribusiness chain in the honey industry.
  55. 55. Participation of Associations in the Development of the Honeybee Industry• There are many associations which are participating in the development of the honeybee industry, although there are also demands for a more unified efforts to strengthen their bargaining power and advocacy efforts to solicit a bigger support in terms of budgetary allocation from the different levels of government (from national to local or vice versa) to sustain the industry‘s growth in the succeeding 5 to 20 years.
  56. 56. Price Competitiveness of Local Honey with Imported Honey• The price competitiveness indicates that among the six countries identified, it is only Australia and Thailand that the country is not competitive but the other four countries such as United States, Argentina, France and Singapore, our country has the competitive advantage in terms of pricing comparison.
  57. 57. TABLE 10. PRICE COMPETITIVENESS ANALYSIS Imported Natural Honey from: At Different Country, Zero Australia Thailand Argentina United States France Singapore Tariff and Different (PhP/Kg) Exchange Rate (at Zero Percent Tariff ) At PhP 55 exchange rate at PhP200 wholesale price 0.98 0.57 1.14 1.29 1.29 1.19 at PhP220 wholesale price 0.89 0.52 1.04 1.18 1.17 1.08 At PhP 50 exchange rate at PhP200 wholesale price 0.89 0.52 1.04 1.18 1.17 1.08 at PhP220 wholesale price 0.81 0.47 0.94 1.07 1.06 0.99 At PhP 48 exchange rate at PhP200 wholesale price 0.86 0.50 1.00 1.13 1.12 1.04 at PhP220 wholesale price 0.78 0.45 0.90 1.03 1.02 0.95 At PhP 45 exchange rate at PhP200 wholesale price 0.80 0.47 0.93 1.06 1.05 0.98 at PhP220 wholesale price 0.73 0.43 0.85 0.96 0.96 0.89 Note: Competitiveness exists if import parity/domestic wholesale price is greater than 1.
  58. 58. How to become competitive with Thailand?• For the country to become competitive with Thailand, either, the country’s wholesale price of honey has either to reduce by at least half of the current price of P200 to P220 per kilo. This means an increase of the yield of honey from an average of 20 kilo to 40 kilo per colony. If at this scenario it could be attained by at least 50 percent level of accomplishment, an depreciation of peso to P50- P55 per $US will be able to help in improving the price competitiveness of local honey with Thailand.
  59. 59. How to become competitive with Australia?• In the case of Australian honey, a reduction of at least P50 per kilo wholesale price of local honey would help in improving the country’s price competitiveness, plus an improvement in the yield of honey per colony and a depreciation of peso to P50 per $US would support in improving the price competitiveness of the Philippines with Australia.
  60. 60. Important things to work on to be competitive with Thailand and Australia• Increase in yield of honey from an average of 20 to 40 kilogram per colony• Depreciation of peso with other foreign exchange, particularly for $US or from P48 to P50 above per US dollar.
  61. 61. BENCHMARKING• Benchmarking is the search for and implementation of best practices. It has proven to be an instrumental process in transforming unproductive operations into efficient and profitable one.• Comparative analysis of natural honey importation from 1994 to 2008 showed that the top five biggest sources of imported honey include Australia which contributed 1,052 MT (31%) ; United States, by 762 MT (23%); Mexico, 690 MT (20%); and Singapore, 173 MT (5%).• In 2008, Australia is still the biggest supplier of natural honey but this time it cornered 87 percent (337 MT). Thailand this time is second biggest which contributed 6 percent; third, Argentina at 3 percent; fourth United States, a t less than two percent and fifth China at less than one percent (Please see Table 11).
  62. 62. Table 11. Comparative Analysis of Total Volume of Natural Honey Importation, their Quantity, Country of Origin and Ranking from 1994 2008 and 2008 Quantity (1994- Percent Ranking Quantity Percent Ranking Country of Origin 2008), In Kilograms Share (94-08) 2008, In Kg. Share (2008) 1. Australia 1,052,751 31.16 1 336,880 87.49 1 2. United States 762,197 22.56 2 6,856 1.78 4 3. Mexico 689,800 20.42 3 - 4. Singapore 172,649 5.11 4 1,183 0.31 7 5. Thailand 65,618 1.94 8 23,882 6.20 2 6. France 36,744 1.09 11 1,846 0.48 6 7. India 16,818 0.50 16 381 0.10 8 8. United Kingdom 40,197 1.19 9 348 0.09 9 9. Iran 48 0.00 48 0.01 11 10. China 36,377 1.08 12 3,461 0.90 5 11. Argentina 128,065 3.79 5 10,175 2.64 3 Total of 11 Countries 3,001,264 88.85 Others 376,816 11.15 Grand Total 3,378,080 100 385,060 100.00 Source of Basic Data: NSO
  63. 63. Table 12. Selected Website Links on Beekeeping and their nature of business Website Links on Beekeeping Nature of the Business of the Website1. http://www.ilogmaria.com Private Beekeepers Site (e-commerce site)2. http://www.boholbee.farm Private Beekeepers Site3. http://heavenscure.net Processor of coconut and honey and by-products4. http://pinoybeekeepersforum.aghfo.com Forum on beekeeping in the Philippines5. http://pinoybeekeeping.blogspot.com/ Website in beekeeping the Filipino way6. http://www.beefordevelopment.org Assist people and raise awareness for beekeeping7. http://www.apiservices.com Virtual Beekeeping Gallery8. http://www.beekeeping.com Private Beekeeping SiteSource: Internet Research
  64. 64. Supply and diseases problem affects the consistency and sustainability of the exportation of honey• Among the 11 countries supplier of natural honey in 2008, only Australia, United States and Singapore are consistently exporting honey to the Philippines on a yearly basis from 1994 to 2008 (Table 11). Other countries are either not consistently supplying honey (e.g. Canada, Germany, Hongkong), or just new in exporting honey to the country (i.e. Iran). There is country like Mexico which from 1994 to 2005 are supplying honey to the Philippines but they stopped since 2006 to 2008 due to problem in supply. Switzerland is supplying honey from 1997 to 2007 but they stopped also in 2008. Japan is also exporting honey from 2005 to 2007, but they also stopped in 2008 due to diseases of honeybee and problem in the supply of honey in Japan.
  65. 65. Conclusion• There are some developments in the supply chain of honey industry from input supply, to production, to processing, to marketing and consumption.• The gaps in the input supply could be attributed on how to increase the production of queen bees given the increasing number of beekeepers, as demonstrated by the increasing associations in the honey industry, and those that have been encouraged to start a small beekeeping activities.
  66. 66. Conclusion• In terms of production, improving the bio- diversity and reforestation program could be continually be done by the relevant stakeholders, to increase the production or yield per colony and sustain the growth of the industry, considering the increasing local demand. Consumption is about 60-70 percent being sourced from imported honey, while only 30 to 40 percent are produced locally. This also supports in reducing the effect of climate change in the honey industry, in particular, and agriculture sector, in general.
  67. 67. Conclusion• The best practices are demonstrated by selected successful players such as Ilog Maria Honey Bee Farm, Bohol Bee Farm and MarinduqueLand Corp and Bounty Fresh Foods which developed an integrated operations, along the honeybee agribusiness supply chain.• Some of notable best practices and characteristics /success factors which could be learned from them include: a) a doable business model, b) inclusion of value-added products and services, c) effective supply chain management and 4) either integration or diversification from their core business, 5) application of agribusiness approach, and 6) effective and efficient use resources in their respective company or bee farm have contributed for their successful operation in the honey industry.
  68. 68. Conclusion• In terms of competitiveness, it is also important to note the increase in the yield of honey per colony and depreciation of peso with $US, as two among the different ways to help in increasing the competitiveness of local honey with imported products from Australia and Thailand.
  69. 69. Recommended Strategic Directions of the Philippine Honey Industry1. Extensive application of agribusiness management approach and supply chain management in the honey industry to improve the efficiency and effectiveness of operation of each stakeholder.2. Improving and unifying the concerted advocacy works of industry associations to get bigger bargaining power to demand support from the government, particularly the Department of Agriculture and other departments and agencies, including policy makers.
  70. 70. Recommended Strategic Directions of the Philippine Honey Industry3. Conduct trainings that would help beekeepers to improve their supply chain management capabilities and capability in doing competitive strategy, including the effective utilization of beekeeping technology.4. Either BAI or BPI from the DA is needed to handle the different national concerns of the honey industry in the policy, regulatory, quarantine, bee health and disease concerns, marketing intelligence, to name some. A decision from the DA Secretary on who is responsibly agency should be issued as soon as possible to support the honey industry.
  71. 71. Recommended Strategic Directions of the Philippine Honey Industry5. There is a need for the improvement of transparency among the industry stakeholders to effectively monitor the performance of the honey industry by the government. Participation to research and development is encouraged from the different associations and beekeepers themselves.6. Additional budgetary support from DA is needed by NARTDI and related institutions which are supporting in the honey industry should be provided to further strengthen or expand the services being provided to the beekeepers and other related honey industry stakeholders.
  72. 72. Recommended Strategic Directions of the Philippine Honey Industry7. Strengthen interdisciplinary collaborative agribusiness and market research, policy and socio-economic research, technology generation, scientific and environmental research among the different researchers of the honey industry to improve the productivity and industry yearly performance in the succeeding 5 to 20 years.8. Develop and implement productivity-enhancement programs/projects for the honey industry, e.g. reforestation, intensive adoption of technology in beekeeping, honey products processing and marketing.
  73. 73. Acknowledgement• Director Davinio Catbagan, BAI• Mr. Rolando Promentilla and Ms.Manolita Gaerlan , BAI• Mr. Rolando Vasquez and Maria Laarni Plata, BAI• Dr. Apolonio Sito, NARTDI-DMMMSU• Professor George Ipac, NARTDI-DMMMSU• Professor Reynaldo Laquidan, NARTDI-DMMMSU• Dr. Florentina Dumlao, DMMMSU• Mr. Joseph Panas, NARTDI-DMMMSU• Dr. Jaime Dangle, NARTDI-DMMMSU• Mr. Matt Navalta, CESO• All Beekeepers Development and Honey Industry Development advocates in the country, particularly Ms. Flor Abon, Mr. Fred Ugot, Barangay Captain Reynaldo Monstrales.
  74. 74. Maraming Salamat!

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