Honey Processing Business
The amount of investment in honey processing business depends on the scope of the establishment. However small scale production requires low start-up capital.
Honey is a highly sort product because of its many applications and nutritional quality. It is used in many culinary applications, canning companies, medical and industrial uses. Operating a honey processing business is very profitable and easy to establish.
Steps to start a honey processing business
Things to consider before starting a processing business is sourcing quality honey, equipment and machinery. First write a business plan and get legal advice and understand the manufacturing process. Study the competition then carry out a feasibility study, understand the market and learn the trade.
- sourcing quality honey,
- equipment and machinery.
- write a business plan
- get legal advice
- understand the manufacturing process
- Study the competition
- conduct feasibility study
- understand the market
- learn the trade
More things to Consider
- Write a honey processing business plan
- Factory location
- Startup capital
- Product sourcing
Write a honey processing business plan
Write a honey processing business plan to cover all the basics. The plan should cover factory location, startup capital, labor, equipment, product sourcing and marketing. There are many ways to obtain a plan like using a template, hire a writer or use a business plan software.
Learn the trade
It is good to learn bee farming to understand the steps to honey production. Then understand the processing techniques, equipment, quality control and government regulations. Way to learn is through apprentice programs, books or online resources.
Startup capital depends on the plant’s capacity and equipment. Automated line processing plants are capital intensive with huge capacity output. However small scale operations use basic manufacturing equipment.
Secure funds through target savings or borrow from friends and family. Approach a commercial or trade bank for long term low interest loan. Other fund sources are crowdfunding, venture capitalist, partnership.
Funding the enterprise
- Bank loans
- Personal savings
- Borrow from friends and family
- Venture capitalists
There are two possible locations for a honey processing plant. Locate the business close to bee honey producers or local market. Major consideration in location are availability of utilities like electricity and water, transportation or cheap labor.
Honey Processing Equipment and Machinery
The manufacturing process of honey requires basic equipment. There are automated /manual process machinery based on the producer’s preference. Equipment include storage tanks, bottling and sealing equipment.
Others are honey filtering equipment, draining trays, extractors, heating and packaging equipment. Make good provisions for handling, method of processing and quality control.
Hire labor for the processing plant based on the plants capacity. Labor requirements include machine operators, sales, packaging, marketing and distribution.
Form a legal entity
To form a legal entity register the business as a limited liability company. Make sure to obtain a food processing license, brand the product and get food and drug product identification number.
Honey is a well-received product in local markets and worldwide. There are local consumption including export opportunities. Sell the finished products to beverage manufacturers, supermarkets, grocery stores.
Promote the product through television advertisement, flyers, posters, banners, billboards. Others ways include free promotions, giveaways, community activity.
Use online channels like Adwords, blogging, ecommerce website, social media advertisement.