The farmer can add significant value if he/she sells honey in Jars or bottles. This is realistic in many parts where there is a very strong local demand for honey with high prices. In other parts where the local production is high sale of semi-refined honey in bulk at a lower price to middlemen is the norm. In remote areas of the country honey prices tend to be low but hive numbers are much higher – in particular in semi-arid areas where individuals can own hundreds of traditional fixed comb hives.
An average production figure of 20kgs per occupied hive is an achievable figure for most farmers. However this could increase to 30kgs or more per hive depending on the area and the management of the bees. In particular if swarming is controlled and production of honey maximized. An occupation rate of 80% would mean 16 hives out of the 20 are in production which is a good occupation rate. Having said that there is no reason why 100% occupation rates cannot be achieved with some effort on the part of the farmer to ensure hives are occupied.
Equipment will have a life span of 5-10 years or more depending how it is cared for so in second and subsequent years capital costs have been paid and net profit from the enterprise will be much higher as seen below. The question is how do poor farmers finance the capital costs to get started? The important thing in beekeeping is that a farmer can start beekeeping.
Therefore it is not necessary or advisable a farmer takes a loan to get started (unless you are absolutely sure you can make the hives produce for you – this certainty comes from experience). Start slowly, learn as you go along and once you understand what you are doing expand.