Development of an Economically-Viable Honey Value Chain with Honey Sourced from the Gwassi Hills in Suba District, Nyanza Province, Western Kenya

Part 1: Potential/Capability Analysis, Mapping and Decision-Making for GFSI-Supported Beekeepers in Gwassi Hills

1. Background
   Green Forest Social Investment (GFSI) is a social development enterprise, currently in the process of re-structuring and re-orienting its economic and social development programs in Gwassi Division of Suba District, in Homa Bay County, as informed by a recently concluded Strategic Review and Context Analysis. The intention is to transform the existing program to increase its relevance to the people of Gwassi and to ensure that GFSI operates with a people-centred approach, and more effectively and sustainably, reaches its economic, social and environmental objectives.

Targeting the 50% of the population living below the poverty line and focusing on the youth, in line with existing government policy and vision 2030, GFSI intends principally to use rural production value chains to increase food security and generate income for social investment at the rural producer household level.

Beekeeping and honey production project
Aimed towards empowering households economically, GFSI in the year 2008 initiated beekeeping, as an enterprise with which to stimulate and boost the income of small holder farmers, through production and sale of honey. Income generation at the farmer level is believed to be key to the self-development of communities, as additional income is made available at the household level for quality education for children, improved healthcare, housing, etc.

The enterprise was intended to operate as a viable commercial venture, after initial start-up costs are met, and expected thereafter to sustainably generate significant profits for smallholder farming households. The honey project aimed to empower smallholder farmers by giving them control over income-generating assets. Participating small holder farmers were facilitated by GFSI through an arrangement in which beehives and other equipment and materials necessary for establishing and managing an apiary was provided through loans, to be repaid to GFSI through deductions from the sales, to GFSI honey factory, of the honey produced.

In the initial model, individual beekeepers were encouraged to have from 10-20 Langstroth hives in one apiary, with a minimum of 10 beekeepers operating in the near surrounding area. If a beekeeper wanted to have more than 20 hives (s)he was advised to develop another apiary site in another location. It was anticipated that in each of these 10-beekeeper areas, from 700-1,000 kg of comb honey would be harvested annually.

After a period of four years from inception, economically sustainable volumes of honey production were anticipated, to be supplied to GFSI, as the honey farmers guaranteed market outlet. However, the findings of the recently concluded Context Analysis study concludes that the honey value chain, as currently facilitated by GFSI, is not economically viable. This is said to be a result, mainly attributable to a lack of expertise/inadequate extension services, logistical bottlenecks (especially with regard to honey collection); poor forage at a number of locations and high competition in the supermarket sales channel.

There is a need to rationalize and streamline the GFSI-supported honey production in the Gwassi Hills, initially through mapping out potentially suitable areas for honey production, and identifying capable and interested bee-keeping farmers, with whom it would be worthwhile to subsequently invest, for a limited period, in effective extension services, with a potential to improve production volumes of honey for delivery to the GFSI honey factory. The approach would not rule out enhancing future linkages with other existing organizations interested to buy honey directly from farmers in the Gwassi Hills, if this was seen to be more effective and in the interests of the honey farmers.

It is believed that in excess of 75% hive occupancy is required for economic success and sustainability of the beekeeping enterprise. Currently, hive occupancy averages not more than 25 %, with substantial numbers of farmers reporting 0% occupancy over a greater than three months’ period, following initial setting up of apiaries. It is important to recognize that while others have attempted to introduce bee-keeping, there is no tradition of bee keeping in the area.

GFSI seeks technical support on the analysis and mapping of potentially productive bee-keeping farmers and recommendations on actions to be taken to develop an economically viable honey value chain with honey sourced from smallholder farming households in the Gwassi Hills. “Potentially productive” bee-keeping farmers will be those with an identified potential to harvest at least 60 kgs of honey, per apiary of 10 hives, per annum, based on a single harvest per annum (up to 3 harvests may be possible in some areas), showing enthusiasm and commitment and prepared to sign a relevant written agreement with GFSI on performance to further inculcate a deeper sense of ownership of the enterprise as a commercial venture for the farmer.

1. Purpose of Assignment
   Inform GFSI with regard to:
   i. Identification of productive and potentially productive bee-keeping farmers for engagement on economically sustainable production volumes of honey for sale. These are farmers with potential to harvest at least 60 kg of comb honey, per apiary of 10 hives, per year and show enthusiasm and commitment to the beekeeping enterprise as their own business venture
   ii. Identification of actions to be taken, with indicated time line, that could further contribute to the sustainable realization of economic production volumes of honey by the productive and potentially productive farmers, so as to inform the extension support services needed.
   iii. Identification of partners/institutions that could provide the needed extension support services, including building capacity of farmers on self monitoring and correction on performance, through participatory learning and action
   iv. Phase out of bee-keeping activities with farmers with no potential to produce honey for sale at economically sustainable production volumes
   v. Capacity building of the remaining bee-keeping farmers, drawn from a pool of those with potential to harvest, process and store honey, with possible linkage to existing GFSI buying centers, if deemed appropriate

The information gained is expected to inform the GFSI future direction on beekeeping and honey production

1. Objectives of Assignment
   The overall objective of the assignment, as part of the development of a strategy to develop an economically sustainable honey value chain with honey produced from smallholder farming households in the Gwassi Hills, is to conduct a comprehensive analysis on the status of honey production by individual GFSI-supported honey farmers: currently 310 distributed in 15 sub locations and on 9 GFSI-leased on-farm forestry blocks, and generate a report detailing expected trends/flow of honey, with a focus on the potential to sustainably harvest economic production volumes of honey, actionable contributory factors, and make recommendations, to GFSI, in respect of each honey farmer, as to the potential for continuity/ need to discontinue. The assignment seeks to identify and profile opportunities for GFSI engagement with beekeeping – farmers on economically sustainable production of volumes of honey for sale to boost their income. With regard to honey farmers with assessed zero potential to produce economic production volumes of honey, a decision, with the agreement of the farmer, will be taken at site, hives and equipment re-possessed and an individual cancellation of loan note issued.
2. Scope of Work for Assignment
   The consultant(s) will undertake, for the GFSI initiative in Gwassi, to:
3. Conduct a comprehensive assessment and analysis of GFSI-supported beekeeping farmers, building on previous reports (GFSI strategic review, 2012; Context Analysis, 2013, E-CUE raw material assessment report 2011) and existing farmers data base on honey supply, etc.; in addition to actual individual farmer visits to all GFSI-supported honey farmers in the area (with collected GPS coordinates for all apiaries), to further corroborate information generated from the data base and the reports mentioned, tease out honey production contributory factors specific to each administrative area and individual farmer. Draw conclusions and make appropriate recommendations.
4. Conduct a comprehensive assessment and analysis of the factors affecting honey production and any measures, including extension support/services and time frame needed to increase honey production to a minimum 60 kg per annum, per apiary of 10 hives. Draw conclusions and make appropriate recommendations.
5. Facilitate identification of potential institutions for engagement with GFSI in the provision of extension support services and time frame within which the expected result would be achieved. The expected results being sustainable economic production volumes of honey as reflected in an annual harvest of 60 kg of comb honey per apiary of 10 Langstroth hives.
6. Time Period for Assignment
   The Assignment is expected to start from Monday 15th April 2013 and to occupy the consultant(s) for a period of 65 days (with completion by 19th June), with 1 day for orientation, collection of reports and discussion with GFSI staff, 60 days in the field in Gwassi, and 4 days for production of the zero draft report.
7. Execution of the Assignment
   • The consultant(s) should submit an inception report to GFSI incorporating a detailed work plan for the assignment and share with the GFSI management within one (1) week of receiving the ToR for the assignment.
   • A participatory approach will be expected with maximum stakeholder participation and appropriate involvement of all beekeeping –farmers, the program target group, and with GFSI staff, at all stages
   • All locations and apiaries visited during the field work (all 319 locations) will be geo-referenced with a hand-held GPS device, and the data supplied as an annex to the report, and presented on an appropriate scale map or series of maps in the report. Annotated map(s) detailing the distribution of the remaining GFSI-supported honey farmers will also be presented
   • For all honey farmers, Kenya ID number and mobile ‘phone numbers will be recorded – the latter to enable future mass messaging
8. GFSI Support for the Assignment
   GFSI will support the consultant(s) during the assignment with all necessary logistics, including a driver, 4-wheel drive vehicle, fuel and desk space. GFSI will also facilitate the consultant(s) accommodation and meals at the Kwethumbe and/or Magunga guesthouses (though accommodation and meals will be charged, in line with GFSI policy).
9. Outcomes and Deliverables for the Assignment
   • The consultant(s) should submit an inception report to GFSI (in hard and soft copy) incorporating a detailed work plan for the assignment and share with the GFSI management within one (1) week of receiving the ToR for the assignment.
   • A comprehensive quality zero draft report (as both hard and electronic copy – latter in both MSWord and PDF formats) will be shared by the consultant(s) with the GFSI Senior Management Team by COB on 19th June 2013.
   • Following the receipt of comments on the zero draft report from the GFSI Senior Management Team, the consultant(s) will submit, within a period of five days, a comprehensive quality final draft report (as both hard and electronic copy – latter in both MSWord and PDF formats).
   • The final report presented will broadly adhere to the following format:
   • Executive summary (covering major findings and recommendations)
   • Background
   • Description of the objectives of the assignment and execution methodology
   • Findings and analysis
   • Conclusions and recommendations
   • Annexes covering: Terms of Reference, abbreviations, data collection formats and questionnaires, references, graphs, tables, maps and geo-referenced data, etc.).

How to apply:

1. Experience and Qualifications for the Assignment
   Consultant(s) employed on this assignment are expected to have the following attributes:
   • An agricultural, livestock, ecology or entomology training background at degree or diploma level with hands on experience of beekeeping in sub-Saharan Africa, with at least 3-5 years’ independent consultancy or institutional experience on the provision of beekeeping as a business outreach and honey production services
   • Ideally, a knowledge of the area concerned (Gwassi Division of Suba District) and language skills in Swahili and Luo.
2. Contact Information
   Interested and appropriately qualified consultants should prepare and submit to Green Forest Social Investment (GFSI) a technical and financial proposal for the assignment by Sunday 07th April 2013. They should indicate their qualifications and experience together with a detailed execution plan. The proposals, CV and letter of motivation, as well as three (3) referees should be sent electronically toinfo@subagreenforest.com