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MHC_Presentation (EN)
- 1. Mozambique Honey Company Pure Honey from a Fair Business
- 2. Mozambique Honey Company an initiative in combining rural development with private enterprise in the honey sector through shared ownership with producers DEVELOPING THE HONEY CHAIN WHILE ALLEVIATING POVERTY
- 3. bees are vital for life on Earth polinization of plants and food crops around the world with an estimated value of $40 billion. 4 out of every 5 Mozambicans live from agriculture and depend on bees to polinise their crops and natural flora. …. without bees there is no food
- 4. Opportunities in Mozambique vast areas with natural forests and other vegetation little use of inorganic chemicals and fertilizers many traditional beekeepers … but poor quality honey increasing demand for organic honey MHC well-positioned to compete on local and international markets
- 5. The Inclusive Business Model integrate local producers explore the ever-increasing demand develop a competitive business fair business with benefits for the producers and the company win – win organized producers that become shareholders of the company Mozambique Honey Company Pure Honey from a Fair Business
- 6. Key-characteristics of the company Quality training in bee & hive management buy unprocessed honey and correct handling honey arrives in good conditions at the processing plant Hygiene honey is processed with all the care this product deserves in proper installations with modern equipment and use of hygienic materials Mozambique Honey Company - Pure Honey from a Fair Business
- 8. Pure Honey honey originating from native forests MHC buys ripe honey coming from designated areas in central Mozambique Majune Mecanhelas Meluco Murrupula Memba Nacala Vehla Mossuril Pebane Ile Mocuba Chimoio Mopeia Guro Caia Cheringoma Chemba Gorongosa Tambara Macossa Funhalouro Vilankulos Massinga Jangamo Panda Inhassoro Vilankulos Manica Sussendenga Chigubo Chibuto Guija Beira Massingir Chokwe Xai-Xai Manjakaze Magude Moamba Matutuine TETE MANICA SOFALA GAZA INHAMBANE MAPUTO ZAMBEZIA CABO DELGADO Báruè Murrombala Tete Z im ba bu é Zambia Malawi Marromeu
- 9. the quality of honey is tested and graded Mozambique Honey Company - Pure Honey from a Fair Business Quality
- 10. Quality the beekeeper gets paid at production site
- 11. Quality 70 tons of unprocessed honey have been bought and transported to the company head offices in Chimoio
- 12. processing, labelling & packing are done with all the care that this pure product deserves Quality
- 13. ... and Health all our honey has a humidity level of less than 20% and a shelf life of 2 years our honey contains no additives antioxidant, a vitamin-rich sweetener 100% Natural
- 14. Marketing Strategy primary market is Mozambican market; formal and informal Sell high quality honey to high-end markets while at same time serving the rural and urban poor with honey at an affordable price Supermarkets, hotels, etc.: jars in 3 sizes, with attractive label Informal market: plastic sachets containing 5-15 ml with the same quality of honey
- 15. “Bottom-of-the-Pyramid” MHC cares about Mozambicans in their quality of … consumer, supplier, distributor and worker Suppliers… fair business with the beekeepers Training and communication with producers honesty and sense of ownership fair price (more than 40% above average) capitalizing the producer understanding of entrepreneurship Hive Loan fund in the form of leasing with accessible interest rates
- 16. An Inclusive Business two categories of shareholders private investors 45% social enterprise 10% and 45% reserved for the producers UCCN - (Union of Honey Cooperatives in the Centre and North of Mozambique) represents the smallholders, defending their interests intensive training to achieve successful association management Mozambique Honey Company - Pure Honey from a Fair Business
- 17. the introduction of KTB (Kenyan Top Bar) hives allows the participation of women An Inclusive Business
- 18. Socio-Economic Benefits Direct Employment more than 20 qualified jobs created Distributors: kiosks (“barracas”) and street-vendors are the main re-sellers honey sold in strips of plastic sachets that can easily be displayed and transported local supermarkets and wholesalers as retail channel
- 19. Socio-Economic Benefits Self-employment In 5 years deployment of 50.000 hives on average one beekeeper may have 10 hives; equals to a total harvest of 120 kg up to $200 income per year potential for rapid expansion for entrepreneurial producers willing to invest in hives total income USD 1 m./ year
- 20. the triple bottom-line of honey People empowerment of 5.000+ beekeepers through training, capacity building and organisation access to high-end markets increase of household income improvements in healthcare, education and acquisition of family assets increase in family savings food security in a changing environment; climate change 100s of re-sellers with another product to sell poor people in urban and rural areas with access to high nutritional food
- 21. The triple bottom-line of honey (2) Profit for the company a highly profitable product economically feasible project with a positive cash-flow from the 2nd year onwards IRR of 38% (calculated by 4 years) for the producers improvement of income $ 1.000.000 / year dividend payout to the producers “new hives, new lives for the beekeepers” Mozambique Honey Company - Mel Puro de Negócio Justo
- 22. The triple bottom-line of the honey business Mozambique Honey Company - Pure Honey from a Fair Business
- 23. the triple bottom-line of honey (4) Planet beekeeping has clear benefits for the environment preservation of existing forests 80% of our food-crops are polinised by bees 3,000+ beekeepers are using improved and environmentally sustainable hives discourage bark-hives, which destroy forests
- 24. Environmental impact More than 10.000 trees per year are destroyed to make bark-hives
- 25. environmental impact reduces the uncontrolled fires caused by ‘slash- and-burn’ land clearing, and honey gatherers beekeepers protect their new hives hives made from FSC-certified wood use of available local materials as bamboo, clay and elephant grass 1st Prize “Nature Challenge Award” , Mozambique 2010 “Protected forests generate income”
- 26. The partners V&M Grain - André Vonk Dutch entrepreneur with over 25 years of experience in agri- business, main promoter and 40% shareholder of the company UCCN representing the producers with 45% shares Eco-Micaia - Andrew Kingman, social enterprise aiming to create commercial opportunities for smallholder producers and communities – proxy shareholder on behalf of the producers and facilitator of UCCN
- 27. Technical assistance SNV Business development services TCT Dalmann Training of beekeepers and supplier of hives Investors / Funders AgDevCo social investor Comic Relief (grant for capacity building) iTC (training of extension workers and legalizing beekeeper groups) Banco Terra (commercial loan)
- 28. Funding raised the company minimum capital shareholder loan V&M $ 409,000 shareholder loan AgDevCo $ 50,000 commercial loan Banco Terra $ 100.000 Seeking loan of $ 200,000 to grow up to 500 tons per year training, capacitating and hive loan fund. iTC grant $ 25,000 legalization of associations Comic Relief grant of $ 350,000 through Eco- Micaia training and formation of the Union. Requiring: grant of $ 200,000 for the hive loan fund and capacitating the beekeepers Mozambique Honey Company - Pure Honey from a Fair Business
- 29. Thank you Mozambique Honey Company, Ltd. Industrial area Chimoio tel: (+258) 826014980 / 824290040 www.mozambiquehoneycompany.com support@mozambiquehoneycompany.com Pure Honey from a Fair Business
Editor's Notes
- Introduction Trees + Bees = honey + money and a healthy environment New hives, new lives Organic honey production improves the environment and raises incomes in Mozambique
- Importance of apiculture All year long, bees are polinising crops and plants with an estimated value of more than 40 billion USD, equal to more than a third of the total food-supply in many countries. More than 80% of the 20 million Mozambicans depend on agriculture for their livelihood; many of whom are already beekeepers by nature. Apart from practicing “pure” beekeeping, they depend on the bees’ activities that polinises their crops and natural flora from where they extract other products.
- Background Mozambique has a large proportion of land under natural forests and other vegetation. This, combined with the fact that they use very little inorganic agricultural chemicals and fertilizers in agriculture. Existence of a local, small-scale bee-industry that serves the local markets with honey of relatively poor quality. Global demand for high quality honey is increasing. The company is well positioned to compete in the organic honey niche-market. The local / informal market promises a huge boost for the honey business. It can be expected that global demand will increase. Less favourable natural conditions in western countries, Colony Collapse Disorder CCD, varoa mite, etc.
- VISION OF THE PROJECT / SOLUTION The promoters of the project aim to integrate local producers in a fair partnership with benefits for all parties involved to explore the increasing demand and develop a competitive business at international level A Business model that includes the local community, aiming to guarantee economic benefits for both the producers and the company. (Win – Win) The producers will have the opportunity to become shareholders in the company by participating in the district cooperatives, which in turn will be members of a general cooperative, which represents them in the company.
- Key-characteristics of the company Quality: The company will assure adequate training for beekeepers in proper hive management, enabling them to produce unprocessed (comber) honey of a high quality standard. Appropriate handling of the honey will be assured So that the honey arrives in good conditions at processing unit Hygiene: The honey is processed with all the care this product deserves, in proper processing room and using modern equipment made from hygienic materials (stainless steel)
- {fotos of the processing room in Chimoio}
- Natural Honey The honey comes from native forests, in the areas indicated on the map of Mozambique. Roughly the area between the Zambezi and Save rivers. The company buys ripe honey from beekeeper groups in selected areas of Manica and Sofala provinces from region Centre of Mozambique; and in the near future Zambezi province.
- Quality and Health The quality of honey is tested and graded (On the photo: a refractor-metre for measurement of the humidity level)
- Quality and Health After testing and grading the honey, the beekeeper gets paid cash for the harvest and at production site.
- Quality and Health So far (May 2011), a total of 70 tons of unprocessed (combed) honey has been bought from beekeepers and transported to the company Head Offices in Chimoio {photo of the exterior of the processing unit in Chimoio}
- Quality and Health At the processing unit, processing, labelling and packing are done in a professional manner and with all necessary care.
- Quality and Health All of our honey has a humidity percentage of less than 20% and a shelf life of 2 years. Our honey contains no additives. Nutritional Information. Tablespoon (20 grs): Energetic value 70 Kcal; Carbohydrates 17 grs; Protein and Fat 0 grs Nothing added, nothing taken away. Pure, perfectly preserved and as sweet as it was in its own natural reservoir
- Marketing: The company will adopt a diversified marketing strategy. On short and medium term, the target will be the local market, both formal and informal. The unique proposition of the Company is to sell organic honey of high quality to a high-end market segment, while at the same time offering the poor rural and urban population honey at an affordable price. High-end formal markets will be targeted with 3 sizes of jars, with attractive label revealing high quality and leaving a good impression of the company. For the informal markets the honey will be packed in small volumes of 5-10ml. The packaging will consist of plastic sachets. The quality of the honey will be the same as the honey sold on the informal markets. The price will be Mts 3 - 5 (USD 0,10 – 0,16) per sachet, making it accessible for every class of the population.
- Bottom of the Pyramid: (lower class communities) MHC cares about Mozambicans in their quality of consumer, supplier, distributor and worker. Local communities form the base of consumers in both the formal as well as the informal markets. The relationship between company and beekeepers: The company will guarantee appropriate resources for training of and communication with the producers, bringing about a sense of loyalty and ownership of the smallholders. Capitalization of the smallholder: The company will assure training in basic financial management and business skills for all the producers who make use of the Hive Loan fund. The company will make sure that the producers receive a fair price for their product, which will be 40% above the average price paid in the region.
- INCLUSION Two categories of shareholders, private investors and a social enterprise and 45% reserved to smallholder producers; through a social enterprise serving as proxy shareholder, until the Union Cooperatives (provisionally known as União de Cooperativas de Mel do Centro e Norte de Moçambique – UCCN) is established in accordance with predefined definitions. Training will be crucial for the project, as it should guarantee a quality and successful management of the associations.
- INCLUSION The introduction of transitional (KTB) hives has a very positive impact in terms of gender equity, because apiculture requires far less work than other agricultural activities and the KTB hives are much easier to handle compared to the bark hives, that are hung high-up in trees.
- Social - Economic Benefits Direct Employment: more than 20 people will not only receive their salaries, but also benefit from specialized training in honey production, harvesting, processing, quality control, logistics, sales and other activities of the company. Distributors: The local informal market in the suburban areas of the major cities and in the rural areas will be targeted through small kiosks, known by the Mozambican term “Barracas”, whom together with the street-vendors are the main re-sellers. The honey is sold in strips of plastic sachets for easy display and transport In the formal segment, the local supermarkets and wholesalers serve as retail channel.
- Social - Economic Benefits Self-Employment: by far, the biggest gain for the communities is achieved by the selling of honey. Its foreseen that during the first 5 years the beekeepers install and own at least 50.000 hives. Its expected that on average every beekeeper has 10 hives and harvests a total of 120kg, resulting in $ 200 income per year. with the potential of a rapid expansion for the more entrepreneurial beekeepers that decide to invest in more hives. This results in a potential rise in family level income of us$1 m/year for the local communities.
- “The Triple Bottom-line of the honey project” (“People, Profit, Planet”) People (social impact) In 5 years time, work with more than 5.000 producers and hundreds of re-sellers Empowerment of the beekeepers through training, capacity building and organizational support. Access to high-end markets. Increase of household income results in significant improvements in health, level and duration of education and acquisition of common family goods. The additional income and support mechanisms of the project will allow people to save money, creating a level of security in a context of climate change. Finally, the poor population in urban and rural areas will have access to high nutrition food – honey.
- Profit (economic impact) For the company: (based on processing of 500 Mt of high quality organic honey / year) Honey is a highly profitable product with good margins, resulting in a feasible economic operation with a positive cash flow from the 2nd year onwards. IRR 38% (based on 4 years) For the producers: Household income of more than $ 1.000.000 / year Profit sharing / dividend payout for the producers “ new hives, new lives for the beekeepers”
- Key figures MHC (US$) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 Total Kg's sold 100,000 240,000 360,000 560,000 800,000 800,000 800,000 Total Revenues 611,300 1,467,120 2,200,680 3,423,280 4,890,400 4,890,400 4,890,400 Total Costs 604,502 1,125,949 1,564,492 2,289,895 3,199,980 3,160,380 3,160,380 Gross Result 6,798 341,171 636,188 1,133,385 1,690,420 1,730,020 1,730,020
- Planet (Environmental impact) The honey business has clear benefits for the environment, particularly in matters of forests preservation and reforestation. The reforestation aspect will be reinforced once the positive outcome of apiculture practices become clearly visible. More than 3,000 beekeepers are using improved hives to produce better quality honey in environmentally sustainable way. Boost in polinisation of natural flora and crops. Bees stimulate growth of natural flora and crops. New and appropriate technology and discouraging the use of bark hives that destroy natural forests.
- Planet (Environmental impact) Its estimated that, in the Central Mozambique region alone, at least 10.000 trees each year are destroyed to make bark hives.
- Planet (Environmental impact) Reduce uncontrolled fires for land clearing and for honey gatheres. The beekeepers protect their new hives. Improved hives are made from FSC certified hardwood. Use of local materials as bambu, elephantgrass and mud. First place in the competition “Prémio Negócios Verdes” de Moçambique 2010
- THE PARTNERS Once the Union of Cooperatives (UCCN) is established, expected in 2 years time, the structure of the company will be as follows: 40% V&M Ltd., 45% - UCCN União das Cooperativas de mel do Centro e Norte de Moçambique, 10% Eco-MICAIA Ltd. and 5% - AgDevCo. André Vonk is a Dutch entrepreneur with more than 25 years of experience – main promoter and 40% shareholder of the company. André is owner of V&M Grain, a company in the agriculture business and based in Chimoio, operating in Mozambique and nearby regions. Main activity is trading in maize in big quantities. The company uses warehouses spread out over the country to buy various food crops directly from the producer/smallholder. UCCN – represents the producers and is 45% shareholder of the company. UCCN will develop the capacity to initially represent the producers in the company and, over time, it will assume activities such as training, environmental impact and reforestation. Its expected that UCCN will play an important role in the management of the hive loan fund. Eco-Micaia Eco-Micaia, represented by Andrew Kingman, a social enterprise with the objective of creating inclusive businesses and commercial opportunities for smallholders and communities – proxy shareholder on behalf of the producers with an important role in facilitation and creation of the UCCN.
- Technical assistance SNV – Netherlands Development Organization (provider of Business Development Services) TCT Dalmann (Training of beekeepers and supply of beehives made from tropical hardwood from a FSC certified forest concession) Investors / Funders Beira Agricultural Growth Corridor / “Fundo Catalisador” - (managed by AgDevCo, social investor) Comic Relief UK – (grant for capacity building of producer associations and establishment of UCCN) iTC – Iniciativa para Terras Comunitárias (training of extension workers and legalization of the first beekeeper groups) Banco Terra (commercial bank loan)
- Realized funding The company Minimum social capital Shareholder loan by V&M of $ 409,000 Shareholder loan by BAGC/ Catalytic Fund of $ 50,000 Commercial bank loan of $ 100.000 Seeking: loan of $ 200,000 to finance working capital and growth of MHC to increase turnover to 500 tons per year Training, capacitating and hive loan fund. iTC grant $ 25,000 legalization of the first beekeeper groups Comic Relief grant $ 350,000 through Eco-Micaia for training and formation of the Union Seeking: Grant of $ 200,000 for the hive loan fund and capacitating producers.