Small-scale beekeeping & economic feasibility

[didi]

Hello everyone,

I hope this message finds you well. I'm reaching out to seek your insights and creative solutions when it comes to making small-scale beekeeping economically feasible and sustainable. I will give a presentation about this to a group of small-scale beekeepers in Oslo, and I am surprised at the lack of information and inspiration online! However I have some experience myself in small-scale beekeeping in the city and how to have a decent livelihood (partial) without having to scale up.

To frame this discussion, I've already categorised my solutions broadly, and I'm sharing this list with you below
I'm particularly interested in hearing your thoughts about it! Please do add if you have other creative solutions, or any inputs about what I've shared in this list:

Short food supply chain solutions: Leveraging platforms like Facebook-based groups (Reko Ring is one of these that we have here in Norway) and producer-to-consumer websites
Collaborating with CSAs (Community-Supported Agriculture)
Exploring opportunities for bulk sales, especially in the hospitality industry, including restaurants, hotels, and cocktail bars
Diversifying product line and services, such as offering non-honey products, mentorship programs, and creating an experience economy through apiary visits


I appreciate your time and your insights. Thank you in advance for your contribution!

 

[Mint Bee]

I think you firstly need to define what small scale is to you. Most beekeepers in the UK have a few hives (under 5 at most?) and harvest low amounts of honey as hobbyists. Definitely not economically feasible, with no prospect of having any surplus cash at the end of the year, and with dubious sustainability credentials.

There are some posts on here about number needed to produce a reasonable income. Was it 150 colonies, for honey production, plus diversification into nucs, wax etc.? Plus a partner with a half decent income to cover the poor years......

 

[pargyle]

I think you firstly need to define what small scale is to you. Most beekeepers in the UK have a few hives (under 5 at most?) and harvest low amounts of honey as hobbyists. Definitely not economically feasible, with no prospect of having any surplus cash at the end of the year, and with dubious sustainability credentials.

There are some posts on here about number needed to produce a reasonable income. Was it 150 colonies, for honey production, plus diversification into nucs, wax etc.? Plus a partner with a half decent income to cover the poor years......

There's a well worn saying in beekeeping ... if you want to make a small fortune keeping bees - start with a large one !

 

[Paulypaul]

When you say economically viable do you mean to cover costs, or generate a significant income?

 

[Anduril]

Start a co-operative for beekeepers, where you have facilities for extracting, jarring and selling. There are additional bits to think about as add ons.
How many hives per beekeeper is your target audience?

 

[sipa]

It might be useful to do some market research first. Find out the potential demand for the products you could produce, the market could already be saturated.
Establish the achievable price range for your products in the market place you are targeting.
Get creative about targeting untapped markets, what would be your USP. Having a good USP will enable you to charge above the market rate.

Do the things that others ignore or can't achieve, that could be your edge !

 

[pargyle]

Do the things that others ignore or can't achieve, that could be your edge !

If others igonore them or can't achieve them - be very wary - there are massive pitfalls in reinventing the wheel. Learn from other's mistakes and mishaps .. if it didn't work for them - why would it or should it work for you ?

There is so much in the OP's original question that can only be answered by the OP.

Beekeeping, by it's nature, is heavily dependent upon location, local climate, local conditions and annual variations. Your crop is dependent upon these and your market as well if you anticipate selling direct to the consumer or locally, without taking into account competition. The market drives the retail value of your product but your cost of goods remains the same regardless of the market value.

The crop is largely annual - but the beekeeping continues throughout the year. How do you get through the early years ? It's hard enough getting from one colony to ten colonies in terms of cost and effort - how do you get from 10 to 100 or more ? Do you have the financial resources to invest in kit, bees and importantly - your time. It's a lot of commitment both financially and in the hours you will have to spend beekeeping or making up kit .. without the added issues of marketing the product, extracting, bottling etc.

You can make a reasonable additional income (in a good year) with 50 hives - if you have a secondary finance source (be it paid employment or savings) to rely on. Making a proper living out of beekeeping is harder and I think Hedgerow Honey hit the nail on the head ... £50k invested in something that will return a profit without any work, leaving you to do something else with your time is probably a better prospect. Unless, like Curly Green FIngers, you can pursuade someone else to put the money up and pay you for your time and then fit your own beekeeping around your employers expectations. Good luck if you find one of those, rare as fresh dinosaur droppings !

When you've worked your figures out - double your costs and halve your profits and see what the annual return on your investment is in a bad year ... the vast majority of start up businesses fail in the first three years and what usually kills them is cash flow - the gap between getting paid for your product and the cost of producing it. Whether it's your money, borrowed moey or someone else's money it's cash that is king - sales are vanity - profit is sanity - if you can't forecast an income from your proposed business before you run out of money to create the product it's not an investable business (for you or anyone !).

Watch a few episodes of Dragons Den and see how 'investment opportunities' are kicked around (and out) by people who have made millions. Would your business plan stand up to the close scrutiny of an investor ? If the answer is no ... why are you thinking of investing your time and your money.

If you are looking for a profitable hobby ... the opportunity is there - whether it will pay you more than minimum wage when you count the hours up and amortise the start up cost - not sure. Most hobbyists and small scale beefarmers do it as much for the pleasure of keeping bees as for the income - sucking up the bad years and remembering the good ones.

The majority of beekeepers on here are UK based so it may be very different in Norway .. but the economic principles remain the same wherever you are located. Ignore the laws of supply and demand at your peril...the wheel has already been invented.

 

[didi]

Thank you for your responses. I was hoping to gather your creative ideas on transforming small-scale beekeeping – whether it involves 5, 10, or 15 hives – into a source of income that provides a reasonable hourly wage.

Like many of you, I've encountered the challenges of selling honey in a competitive market that quickly becomes saturated, especially during the same time of year when numerous beekeepers are offering their products. Spending long hours at a festival stand or farmer's market to sell only a few jars may was not cost-effective, prompting me to explore alternative sales strategies.

My aim in sharing this list is to inspire fellow beekeepers. By diversifying my income through various other services and business models, I've managed to maintain my values and ensure the well-being of my bees.

One business model that has particularly worked brilliantly for me is partnering with CSAs (Community-Supported Agriculture). Then it is possible to benefit from prepayments and pre-sales, which can significantly enhance the financial aspects of beekeeping, bring in early income to upgrade/repair equipment, if needed.

In my experience, this has led to what I would consider a "decent" income. When I calculated the hours I invest versus the earnings I generate, my hourly wage reached a very satisfying level. Of course, what constitutes a satisfying hourly wage can vary from person to person. For me, the quality honey I provide (which won a gold medal at the national championship), coupled with the educational & experiential services I offer, has allowed me to attain an income that is comparable to what I earn from my other professional activities on the side.

So I am looking to hear from you, how have you diversified your income through beekeeping and how it worked for you! Thanks again

 

[ericbeaumont]

source of income that provides a reasonable hourly wage.

That may be attainable when economy of scale ensures volume production and income, but at a small scale I doubt that an hourly wage is feasible, and if you did work it out, well, the shock might persuade you to give up the idea.

It is almost imposssible to track and account for the real cost of multiple jobs for one person: for example, I've just completed the final design for a new logo and label, and the erratic gestation during evenings and odd hours over several months could not be logged accurately, given that design edits occur during a bus journey, a long bath or during a pub conversation.

Pay a designer? Forget it! Instead, I have Photoshop, ancient design experience, a good eye and charge nothing.

Selling bees, running experience days and beekeeping business contracts maintain income. Volume honey sale at £7.73/kg will ease cashflow, but £27/kg at a London Farmers' Market (albeit with the work and expense involved) will maximise return and keep the beekeeper in touch with the customer.

Years ago at a Honey Show Dan Basterfield presented a BFA workshop for hobby beekeepers thinking of upgrading, and his advice was sound: build numbers slowly in line with experience and don't run before you can walk.

Financial risk is reduced if beekeeping income is re-invested in equipment during the early years; I also cashed in a few pointless pensions; once numbers are reached expense is reduced, but getting there is a slog.

CSA looks interesting. The UK has similar, and 2015 turnover was £5.19 billion. More unpaid reading (research) coming up...

 

[madasafish]

My eight hives make me a four figure profit annually if I ignore the cost of my labour.

If I charge my Labour at the Minimum Wage and pay NHI and other employment costs and charge my fuel, then my eight hives lose money.

 

[Jules59]

and as a hobbyist, if you gross more more than £1K then your profits are liable for income tax too

 

[madasafish]

and as a hobbyist, if you gross more more than £1K then your profits are liable for income tax too

Less the £1k limit of course..