The project promoter is Honey Product Industries (“HPI”), a privately-held company incorporated in Malawi in February 2014. HPI is registered as a private partnership business and 50% owned by promoters. The project aims at inclusive growth that creates employment and business opportunities for young people willing to enter the honey production and processing sector.

HPI main product is liquid honey sourced from a network of small-scale producers, which is then purified and packaged in HPI’s facilities, before being sold to supermarkets. HPI has obtained the certification by the Malawi Bureau of Standards, and therefore can sell to high end supermarkets, which represents its main target market. HPI currently supplies an average of 1,500 kg on a quarterly basis and plans to extend its capacity to 100,000 kg per year.

The proposed project entails: (a) replacing the traditional hives with modern hives that are 70% more efficient and environmental friendly, and providing bee keeping kits (uniforms and equipment). The HPI’s supply chain is expected to increase its production from current kg. 6,000 per annum to kg 27,000 per annum computed on 200 small holder farmers; (b) replacing and expanding HPI’s honey filling line, to reach a total capacity of Kg. 100,000 per year; (c) employing additional 50 people as honey aggregators and trainers.

HPI will purchase the modern hives and bee keeping kits and will sell them to the smallholder farmers contractually linked and participating to the project. The smallholder farmers will pay back HPI gradually in 18 months: the cost of the hives and bees keeping kits will be deducted from their sales of honey to HPI. The combined cost of hives and bee keeping kits is estimated as USD 350 per farmer.

Total project costs include the costs related to replacing the traditional hives with modern hives, providing bee keeping kits to the smallholder farmer participating to the projects, and the modernization and expansion of the honey filling line. The project will be co-financed by a grant from Rural Livelihoods Economic Enhancement Programme (RLEEP), a Malawi government programme funded by the International Fund for Agricultural Development and a grant from Business Linkages Matching Fund (BLMF), a Malawi government programme.

The main development impact of the project is the inclusion of 200 smallholder farmers in honey production and on creation of additional 50 jobs.

PROJECT OVERVIEW
Submitting Institution: Honey Products Industries (HPI) Project: CFC/2015/07/0084FT
Location: Malawi Commodity: Honey
Total Cost: USD 256,650 CFC Financing: USD 120,000 (Loan)
Project Type: Fast Track Project



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