Economic Efficiency Of Beekeeping And Its Implications On Household Income Among Beekeepers In Tabora And Katavi Regions, Tanzania

ABSTRACT

A study was conducted to evaluate the profitability, efficiency and adoption of improved beehives and its implications on household income among beekeepers in western Tanzania. Specifically the study focused on; profitability analysis, comparing between beekeepers using traditional and improved beehives. The study also compare the economic efficiency among beekeepers using improved beehives; analysed the adoption and income poverty impacts of improved beekeeping technologies; and investigated the underlying factors for honeybee colonies absconding and its financial implication among beekeepers. A structured questionnaire was the main tool for collecting data from a sample of 198 small-scale beekeepers. Out of these, 36 beekeepers were using improved beehives whereas 162 beekeepers comprised traditional beehives users. The household interviews were supplemented with interviews from the Focus Group Discussions (FGDs) and discussion with key informants. Both qualitative and quantitative data were collected and analysed using descriptive statistics. Analyses of Variance (ANOVA) along with budget analysis and profitability ratios were used to compare the profitability of using improved and traditional beehives. The study applied the stochastic profit frontier model to estimate the economic efficiency of small scale beekeepers in Tabora and Katavi regions. Variables in the stochastic profit frontier (SPF) model were normalized by the weighted average output price. To obtain the weighted average output price, the average output prices of honey and beeswax were calculated in correspondence to the total number of beekeepers who sold these products. Thereafter, using the Excel function “SUMPRODUCT()” command, the average weighted output price was calculated. To analyze the adoption and impacts of improved beehives on household income among beekeepers the propensity score matching and endogenous switching regression models were used. A beekeeper was considered as an adopter if they had bought or constructed at least one improved beehives and used it. Meanwhile, a non-adopter was a beekeeper who had never bought or constructed improved hives for their use. The findings revealed that improved beehives were more productive than traditional beehives. However, both beekeeping systems were profitable ventures. Profit margins among beekeepers using improved beehives are highly sensitive to the cost of labour and other material for bee hives. Reducing the cost of these inputs can significantly increase profit levels from beekeeping. Thus, interventions to reduce the cost of labour and ease the availability and cost of other materials associated with all essential inputs for beekeeping are important means to enhance economic efficiency among small scale beekeepers. Small scale beekeepers using improved beehives in the study area had a mean economic efficient of 91.7%. This implies that there is room for improvement by about 8.3% without changing the profit frontier. The numbers of visits by beekeeping extension officers and access to beekeeping training were the main factors that significantly influenced economic efficiency of small scale beekeepers. The probit model estimates coefficients of the factors hypothesized to influence the adoption of improved beehives. The findings showed that adoption is significantly influenced by age of the household head, years of formal schooling, access to credit, access to extension services, training and experience in beekeeping. This implies that easy access to institutional support such as extension services, financial services and capacity building would play the most important role in the adoption of improved beekeeping technology leading to reduced income poverty. Using propensity score matching and endogenous switching regression models, the analysis further shows that the adoption of improved beehives leads to significant gains in beekeeping annual income. The magnitude of the estimated effects was almost similar across both econometric models. Shortage of bee forage, poor infrastructures, presence of bee pests, diseases and predators, unreliable markets, inadequate capitals and beekeeping facilities were the main constraints affecting the honey sub sector in the study area. Absconding of honeybee colonies was identified as a serious problem, affecting more than 854.8% of the beekeepers, causing an average annual income loss of TZS 2,894,555.89 (equivalent to US$ 1,822.5) and TZS 1,797,105.02 (equivalent to US$ 1,131.5) among beekeepers using traditional and improved beehives, respectively.

On the basis of these findings, the study concludes that despite the challenges and constraints facing the beekeeping sector, the enterprise was economically viable. Beekeepers who adopted improved beehives had higher earnings per hive than the non-adopters. It was also clear that beekeepers improved beehives are economically efficient, ranging from 18.6% to 98.4% and a mean of 92%. This implies, still there is a room for improvement (8%) for beekeepers already using this technology. In view of these findings there is a need for policies and strategies aimed at enhancing the adoption of improved beehives among non-adopters. This can be achieved through more efficient extension services, access to credit to facilitate acquisition of improve beehives and associated tools for harvesting honey. There is also need to improve training beekeepers on technical and business aspects of the enterprise including market and improving the marketing information system. Also, the study recommends provision of sufficient training to beekeepers on best practices to reduce absconding of honeybee colonies from their hives. There is also need to improve infrastructure such as main roads and water facilities within apiary sites. In order to improve the acquisition of services and benefit from collective marketing, beekeepers are encouraged to establish cooperative, which will also facilitate access to credit to beekeepers. 

Key words: Profitability analysis, economic efficiency, adoption and impacts, beekeeping, absconding