Do you want to know how much it costs to start a beekeeping business? If YES, here are factors that will influence the cost of starting a beekeeping business.
Bee farmers raise bees, collect and gather honey, sell live bees, royal jelly, bees’ wax, propolis, pollen, venom and other related bee products. The Bee farm and Honey Production industry has greatly benefited from campaigns advertising the health benefits of honey as a better sweetener than sugar.
The increased demand of honey, royal jelly, bees’ wax, propolis, pollen, venom and other bee products from households and food related businesses have rapidly improved revenue growth for the industry. In the face of this growth, profit margin has suffered from rising feed costs and also regulations regarding safety concerns.
If you are looking towards leveraging on the agriculture industry to generate income, then one of your best bets is to start a bee farm and honey production business.
One thing is certain about starting a bee farm and honey production business, if you are able to conduct your market research and feasibility studies, you are not going to struggle to sell your live bees and honey because there are always food processing companies and consumers out there who are ready to buy from you.
Estimated Cost to Start a Beekeeping Business
When it comes to calculating the cost of starting a commercial bee farm, there are some key factors that should serve as a guide.
Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting/leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis of starting a commercial bee farms; it might differ in other countries due to the value of their money.
In view of that, here are the key areas where you are expected to spend your startup capital on;
- The Total Fee for incorporating the Business (commercial bee farm) in United States of America – $750.
- The amount needed to acquire/lease a farm land – $50,000
- The amount required for preparing the farm land (construction of bee hives et al) – $20,000
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Hamilton Miller & Family Bee Farms, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring Business Consultant (Writing of business plan inclusive) – $3,500.
- The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400
- The amount required for the purchase of the first set of live bees – $5,000
- The cost for acquiring the required working tools (protective clothing) and equipment (smoker) / honey packaging machines / bee hives et al – $20,000
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The Cost of Launching an official Website – $600
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000
From the rough estimate above, you would need a minimum of one hundred and seventy eight thousand, one hundred and thirty USD ($178,130) to establish a medium – scale but standard beekeeping business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a beekeeping business to directly contact suppliers of the items they need to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Factors That Will Influence the Cost of Starting a Beekeeping Business
Table of Content
- The Size of The Bee Yard or Apiary and Type of Hives
- The Choice of Location
- The Required Licenses and Permits
- 4. The Level of Exposure To Predators, Parasites And Diseases
- 5. The Cost for Branding, Promotion and Marketing of the Beekeeping Business
- 6. The Cost for Furnishing and Equipping the Bee Yard or Apiary
- 7. The Cost for Insurance
- 8. The Cost for Registering the Business
- 9. Source of Your Supplies and Ongoing Expenses
- 10. Cost of Recruiting and Training Your Staff
The Size of The Bee Yard or Apiary and Type of Hives
A major factor that will determine the overall cost of starting a beekeeping business in the United States of America is the size of the business and the type of hives. A location where bees are kept is called an apiary or “bee yard”. The larger the bee yard, the larger the amount required to start the business.
An ideal size should be roughly 81 square feet for the bee yard (9 feet by 9 feet). Please note that a good rule of thumb is to have no more than 25–35 hives in a permanent apiary, although migrating beekeepers may temporarily place one hundred hives into a location with a good nectar flow.
The top three types of bee hive used are the Langstroth hive, the top bar hive, and the warre hive. The Langstroth hive is the most commonly used hive today, and would definitely be the best type for a beginner.
The Choice of Location
Another major factor that will determine the cost of starting a beekeeping business in the United States of America is your location. As a matter of fact, there are business consultants cum realtors who are specialized in helping people choose an ideal location for their type of business; a location that will guarantee them to profitability within the shortest time frame.
Your choice of location for your beekeeping business determines how successful your business may grow. The truth is that the location you choose to open your beekeeping business determines if you will be issued the required license and permits.
Please note that in the United States of America and in most countries of the world, zoning violations and citations can be very costly for a business. It is always preferable to make sure you comply with all the zoning and land use laws before you choose a location for your business or you stand the risk of having the business closed down before it gets started.
The Required Licenses and Permits
In the United States of America, you cannot open a business without first applying for the mandatory license and permits. As expected, these license and permits cost money and it will influence the overall cost of starting a beekeeping business in the United States of America.
In order to get the overall cost of licensing and permits associated with opening a new beekeeping business in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.
4. The Level of Exposure To Predators, Parasites And Diseases
Another key factor that will determine the cost of starting a beekeeping business in the United States of America is the level of your bees exposure to predators, parasites and diseases. The higher the risk your bees will be exposed to, the more you are expected to spend to take care of the bees.
For example, the common diseases that affect adult honey bees include fungi, bacteria, protozoa, viruses, parasites, and poisons. The gross symptoms displayed by affected adult bees are very similar, whatever the cause, making it difficult for the apiarist to ascertain the causes of problems without microscopic identification of microorganisms or chemical analysis of poisons.
5. The Cost for Branding, Promotion and Marketing of the Beekeeping Business
The cost for branding, promoting and marketing the beekeeping business is yet another key factor that will determine the overall cost of starting a beekeeping business in the United States of America.
Trust me, if you need massive results as it relates to competing and winning a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing. As a matter of fact, it is not cheap to come by an expert in branding, promotion and marketing that will help you compete with brands that are already determining the market direction of the beekeeping industry in your city.
So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your beekeeping business.
6. The Cost for Furnishing and Equipping the Bee Yard or Apiary
Another very important factor that will determine the cost of starting a beekeeping business is the cost for furnishing and equipping the bee yard or apiary. You will quite agree that aside from the basic facilities that are expected to be found in a bee yard or apiary, you would need protective gear, the smoker, the hive tool, the bee brush and extracting equipment amongst others.
7. The Cost for Insurance
The cost for paying for insurance policy cover is yet another important factor that will determine the overall cost of starting a beekeeping business in the United States of America. Interestingly, in the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers.
Thus, it is imperative to create a budget for insurance policy cover and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your beekeeping business.
8. The Cost for Registering the Business
The cost for registering the beekeeping business is yet another cost that will influence the overall cost of starting a beekeeping business in the United States of America. Although the cost of registering a business is affordable, but it will no doubt add to the overall cost of starting a beekeeping business in the United States of America.
9. Source of Your Supplies and Ongoing Expenses
Another major factor that will determine the cost of starting a beekeeping business in the United States of America is the source of your supplies such as pest control chemicals, packaging containers and related goods et al. For example, if you have access to manufacturers of the type of packaging containers that you would need, it will sure cut down the cost of running the business as against buying your supplies or stocks from third party suppliers.
10. Cost of Recruiting and Training Your Staff
The fact that you are opening your beekeeping business as a new business means that you are expected to recruit and train your staff to conform to the kind of beekeeping business you want to operate. The training will help you sell the corporate culture of your organization to the new employees.
As expected, it will cost you money to hire expert trainers that will help you train your new hires, and that will add to the overall cost of starting a beekeeping business.
Please note that there are other factors not listed above that will sure influence the overall cost of opening your bee farm, which is why we will advise that you work with a result driven business consultant in your city to give you the needed guide and info as it relates to the unique factors in your location.