How to Start Honey Processing Business – Detailed Plan & Project Report

Find Honey Processing Business Complete Project Report and Business Plan – Idea, Capital Required, Raw Material, Market Potential, Expenses, Machinery & Plant Requirement, Marketing Plan

Asked on October 8, 2018 in Business.
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    Honey Processing Business – Complete Plan & Project Report 

    Beekeeping is an ideal activity for development as a subsidiary occupation providing supplementary income. Beekeeping is feasible in areas where adequate bee flora available for a minimum period of 6 months. Honey produced by Indian hive bees is collected by modern extractor. The extracted honey contains hemophilic yeasts, which causes fermentation and destroy the quality of honey. To maintain the qualitative and quantitative value of honey the processing in modern Honey Processing plant is essential.

    PRODUCT & ITS APPLICATION:

    From  centuries,  honey  has  been  used  as  a  natural sweetening agent  and  in  the  preparation of  confectionaries. It has vast application in the pharmaceutical industry and it is also considered as a medicine by Ayurved. It is popularly used as a household cure for cough and hence used as vehicle for medicines in many popular brands of Cough Syrup. It is a preferred consumable for people on dieting. Honey is also used for making lozenges. However, it is mostly sold in glass Jars as pure honey. In bottled honey normally moisture content of honey is reduced. Good quality honey has high demand in the international market and it has the potential to generate substantial foreign exchange for the Country.

    DESIRED QUALIFICATIONS FOR PROMOTER:

    Do not require any specific qualification.

    INDUSTRY LOOKOUT AND TRENDS

    Approximately 130 million pounds of honey is imported into the United States each year. This is a significant amount, considering it is over half of domestic production each year. Honey is produced in other countries for export to the United States because it is a low-tech, low capital business. The three leading exporters of honey to the United States are Argentina, China, and Canada. Imports of honey into the United States have a large effect on the price of honey received by domestic honey producers. Even Sioux Bee Honey Cooperative imports honey into the United States for packing and sale to the retail consumer. This is not popular with all consumers as some foreign honey enters the United States having been mixed with corn syrup to add volume.

    The National Honey Board and others in the honey industry are trying to find a marketing niche for honey in the years to come. One area that they have focused a great deal of generic advertising dollars on is potential health promoting effects of honey. There is research being conducted currently that is examining honey’s role as a burn remedy, ulcer medication, and antioxidant, laxative and as a wound healer. Honey is also popular with some people in the alternative medicine arena and with people who are interested in organic food. Some people believe that honey is good for allergies or they believe that consuming the wax from the comb promotes overall general health. Some people even attempt to treat nervous system disorders, muscular disorders and arthritis with bee stings. Even though the overall trend in the United States is toward an alternative type of medicine, it does not appear that this trend will increase demand for honey very much over the next few years. Without some kind of solid scientific study by the FDA confirming any possible health benefits of eating honey, it would seem that the industry should concentrate on promoting honey as a natural food or for its taste. Banking on an advertising strategy that depends on changing attitudes about health may be risky.

    MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

    The key target Market would be:

    • Ayurvedic Industry
    • Food processing Industry
    • Exports
    • Domestic Retail Market

    Quality control and standardization of honey are essential for selling in the international market. For export to European Union (EU) and some other countries, it’s mandatory to control the level of pesticides and insecticidal residue in the finished product. Further, some countries insist for a certificate validating the purchase of honey from the disease free colony. Presently there is no disease surveillance   system   in   place   and   honey   collected   by   tribal   is   stored unscientifically and in an unhygienic manner which increases the propensity for contamination and deterioration and renders the product unfit for exports.

    Honey is a major consumable in the international market both as a food item as well as in industries such as Pharmaceuticals, Cosmetics and Confectionary. The demand is especially high for refined, high quality honey free from pesticides, insecticides and other agro-chemicals.

    China is the world leading producer as well as exporter of honey.

    In the domestic market very little amount of honey is use for personal consumption, while majority is utilized by the pharmaceutical and confectionary industry. With changing lifestyle and increasing health consciousness, honey is been increasing consumed as health food. This is likely to drive the domestic demand in future.

    RAW MATERIAL REQUIREMENTS:

    Only honey and basic packing material (bottle, lids and labels) are required for raw material.

    MANUFACTURING PROCESS: 

    Honey collected from Bee-keepers are tested and fed into Honey Processing plant. The plant removes excess moisture and wax in Honey to yield thick honey. The processed honey is immediately bottled in clean wide mouthed bottles. It is then sealed by PP Caps. Bottles are wiped dry and labeled. Filled, sealed & labeled bottles are then packed in labeled cardboard boxes.

    MANPOWER REQUIREMENT:

    The enterprise requires 8employees as detailed below:

    Sr. No. Designation of Employees Salary Per Person Monthly Salary INR Number of employees required
            Year-1 Year-2 Year-3 Year-4 Year-5
    1 Un Skilled Workers 8,000.00 16,000.00 2 2 2 2 2
    2 Accountant 8,000.00 8,000.00 1 1 1 1 1
    3 Store Keeper 6,000.00 6,000.00 1 1 1 1 1
    4 Sales Supervisor 9,000.00 9,000.00 1 1 1 1 1
    5 Security Personnel 6,500.00 6,500.00 1 1 1 1 1
    6 Manager 20,000.00 20,000.00 1 1 1 1 1
    7 Skilled Labour (Operator – 1, Technical Staff – 2) 10,000.00 10,000.00 3 3 3 3 3
    Total   65,500.00 10 10 10 10 10

    IMPLEMENTATION SCHEDULE:

    The project can be implemented in 13 months’ time as detailed below:

    Sr. No. Activity Time Required

    (in months)

    1 Acquisition of premises 3.00
    2 Construction (if applicable) 5.00
    3 Procurement & installation of Plant & Machinery 2.00
    4 Arrangement of Finance 2.00
    5 Recruitment of required manpower 1.00
    Total time required (some activities shall run concurrently) 13.00

     

    Answered on October 8, 2018.
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    Honey is a widely consumable item. In addition, the product has the both domestic and export potential. If you are living in a honey producing area, then you can consider starting a processing unit. The location of the unit plays a huge role in this business. Because you have to source enough raw honey to produce packaged honey.

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    Market Potential Of Processed Honey

    The honey is an essential ingredient in various food recipes. There is considerable demand for the honey and other products. There are so many food processing industries use honey as the major sweetening agent. The list includes the bakery, confectionary, candy, marmalades, jams, spreads, breakfast cereals, beverages, milk products, and many preserved products.

    It also has vast application in the pharmaceutical industry. In addition, honey is an important ingredient in the organic or herbal cosmetics industry. Generally, the people who are in the dieting process prefer honey as food sweetening item. With the changing lifestyle and increasing health consciousness, honey is
    been increasingly consumed as health food. That is why the demand for honey in the domestic market is increasing rapidly.

    Apart from the domestic market, processed honey has a sustainable demand in the foreign market. In addition, the demand for organic honey is also increasing. Some of the major honey importing countries are Germany, United States, United Kingdom, France, Japan, and Italy. China is the world leading producer as well as exporter of honey.

    Honey Processing Business Plan

    Any type of manufacturing business demands a lot of essential consideration before commencing the venture. In starting this business, you must consider the easy availability of raw honey continuously in your factory. So, you have to check whether the location is perfect for the business or not.

    Check the local market first. You must do a market survey before starting the business. Identify the demand for bulk supply. In addition, try to analyze the local market demand for the processed and branded honey. A brief market survey will help you in crafting the business plan.

    According to your investment capacity and skill, determine the business size. If you are an absolute beginner in this industry, it is advisable to start as small. As your business grows you can scale up the business at any moment of time.

    In this business, there is no other ancillary product you can produce. However, you can increase the product range with several other food products. Generally, you need to consider several different aspects in this business. The list includes:

    Honey Processing Business Registration & Licensing

    Wherever you are starting the business, you have to register the business as per your state law. It hugely depends on the location where you are starting the business. In India, you can register the business with ROC. Otherwise, you can start the business simply as a proprietorship.

    As you are dealing with the food item, you must obtain licenses and permissions from the Govt. authority. In India, you have to obtain the license from FSSAI department. In addition, if you want to export the honey, you have to obtain the IEC code.

    Honey Processing Plant Setup & Machinery

    First of all, you have to secure a location for the production unit. Generally, a 1000 Sq Ft area is sufficient for a small scale processing unit. Additionally, you will need to have a testing laboratory with the unit. However, if you are starting a shoestring budget, then you can consider using other laboratories for testing purpose.

    Before finalizing the unit location, check the electricity and water availability. In addition, the location must have available transport facility. Generally, a honey processing unit includes 4 key modules. These are collection center, processing zone, bottling with packaging unit and warehouse.

    Some of the major required machines are:

    • Heating, filtering and storage tank
    • Gravity Clarifiers
    • Honey filters
    • Extractors
    • Draining Trays
    • Bottling and sealing machine
    • Storage Tanks

    In addition, you have to procure some measuring and testing equipment.

    Honey Manufacturing Process

    Generally, a modern honey processing plant produces processed honey in an automatic process. The steps include procuring raw honey, filtering, and packaging. However, quality control and standardization of honey are essential for selling in the international market. For export to the European Union (EU) and some other countries, it’s mandatory to control the level of pesticides and insecticidal residue in the finished product. Furthermore, some countries insist on a certificate validating the purchase of honey from the disease-free colony.

     

    Marketing & Sales Promotion Strategy

    This is one of the most crucial aspects to consider starting a honey processing business. And to set the goal, you must identify your target demographic. Additionally, you have to concentrate on both retail and institutional selling. Establishing a wide distributor network is just essential in this business. And you also need to offer some schemes to enhance the sell.

    A small-scale honey processing business is a lucrative opportunity for new entrepreneurs. However, you must initiate the business in a proper way to get the long-term success in this business.

    Answered on November 5, 2018.
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