# Profit Analysis



## JodieToadie (Dec 26, 2013)

This might help you. Your thumbnail is too small to read. I know these scenarios are out of date and in canadian dollars but someone it is someone elses data to compare to and the guys who put the numbers together have beekeeping experience.

http://www.agf.gov.bc.ca/apiculture/business.htm


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## BK6BR (Jan 27, 2015)

JodieToadie, 
Thanks for the link. It had a lot of useful info. I'll add to my spreadsheet and repost it. I will also try and make them bigger.


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## jcolon (Sep 12, 2014)

This is pretty sweet. Great. I can use some of this on planning for the next few years.


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## BK6BR (Jan 27, 2015)

jcolon, 
I can send you my Excel file if you'd like.


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## pleasantvalley (May 22, 2014)

Here's another study done in Alberta. http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/agdex14472
Economics of the business are somewhat local. You probably won't average 3 figure honey crops in the southern US, but might be able to sell your product for more. Pollination rates and costs of course will vary wildly as well.


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## Honey-4-All (Dec 19, 2008)

Keep in mind. '

All these studies rarely account for dead-outs, lawsuits, and the myriad of variables like weather,etc... that you WILL encounter. 

The only thing you can plan on is that this is going to be way more work than you can imagine and the items out of your control are more numerous than people say.

*Before you jump in on your own with your last dollar why not take that upcoming sheepskin and go work for another beek for a year or two and thereby learn on the other guys dime and your so back?*. 

As someone who has an "edumacation" the stuff you learned in school might be helpful but the real world of trucking bees all night long after slaving in the heat all day isn't going to be something pounded in your knowledge base from some prof that doesn't even know what foulbrood smells like.....

Best wishes!!!!!!!!!!!


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## mroark (Oct 2, 2012)

Honey-4-All said:


> *Before you jump in on your own with your last dollar why not take that upcoming sheepskin and go work for another beek for a year or two and thereby learn on the other guys dime and your so back?*.
> 
> Best wishes!!!!!!!!!!!


Great advice! I spent last year doing just that and plan on doing it again this spring.


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## burns375 (Jul 15, 2013)

I would try to buy used or borrow equipment. Start small and grow with demand.


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## papabear (Mar 5, 2014)

what is your degree in. 
take it easy and take it slow if anybody ask you tell them stumpy lake bee farm said so.


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## beeware10 (Jul 25, 2010)

the only chance you have of success is to work for a commercial outfit for a few years to learn the business. good luck


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## BK6BR (Jan 27, 2015)

Thanks for the great advice everyone. I’m extremely surprised on how active this community is online. I’d take a leap and say this is the most helpful forum I’ve ever seen. 

My degree is in Industrial Engineering. I do these types of projects almost constantly when working for a company or even in school for that mater. I apologies for not adding that I do not want to do this full time. This is something that my father and I have always wanted to do. I have no clue what type of workload beekeeping has but if it turns out to be something I really enjoy is it really work? At that point I would consider it a profitable hobby. The analysis is to ensure that I don’t sink 1000’s of dollars into something that only consumes money, and to help anyone that in the future decides to look into this. 

I am currently working on adding some costs that i overlooked orginaly into the spreadsheets. I'll post it when I'm finished.


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## IsedHooah (Jan 13, 2015)

Your products look pretty good, and I have to admire your entrepenuerial spirit. I think it would be best for you to get a couple of hives (2-5) to manage bewtween your father and yourself first. You may not even enjoy working with bees as a hobby let alone on a large scale. One thing you did not figure in is the possibility of bee or queen sales, which is really where the profit margin can inrease if managed correctly. Another field is migratory pollination which is really where expereience and knowledge pays off! Good luck in your adventure!


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## Honey-4-All (Dec 19, 2008)

BK6BR said:


> Thanks for the great advice everyone. I’m extremely surprised on how active this community is online. I’d take a leap and say this is the most helpful forum I’ve ever seen.
> 
> My degree is in Industrial Engineering. I do these types of projects almost constantly when working for a company or even in school for that mater. I apologies for not adding that I do not want to do this full time.


Sound like a degree that would be"useful" in beekeeping. Congrats. Do not count out doing it full time. 

As with myself all the best laid plans were tossed aside once the bugs invaded my life.

Unless your on here and a second or 10th generation dude its most likely that most of the folks giving the advice "fell into it" as opposed to being one of those guys who planned on becoming a full time beek. 

Beekeeping is a business but also a lifestyle. It has its benefits and drawbacks. 

The only thing that most here would agree with is that once you get the "bee on your back" its very difficult to get that monkey off!


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## kramerbryan (Oct 30, 2013)

Once you update your spreadsheet I'd like a copy. Please.


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## BK6BR (Jan 27, 2015)

kramerbryan, 
No problem. It may be this weekend but I'll make sure to send it to you.


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## JodieToadie (Dec 26, 2013)

pleasantvalley said:


> Here's another study done in Alberta. http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/agdex14472
> Economics of the business are somewhat local. You probably won't average 3 figure honey crops in the southern US, but might be able to sell your product for more. Pollination rates and costs of course will vary wildly as well.


I have not seen this before. Just goes to show sometimes you get good information on here!:thumbsup:


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## Specialkayme (Sep 4, 2005)

A few thoughts:

I can't really see one of the main spreadsheets. I think that has alot of the information you are trying to generate. So if this is covered somewhere in there, my apologies. 

You are estimating that, within 10 years, you'll produce two Tons of honey off of 55 hives. Possible. But state averages will probably put you at about half of that.

But, if you are producing 4,000 lbs of honey per year, that would make (roughly) 115 supers, or 1,150 frames to extract. If you are planning on doing that with a 9 frame extractor and a hand uncapper, good luck to you. Possible, but very time consuming.

I don't see much built into there for alot of standard costs: labor, gas (mileage), feed, queens, ect. Or rent for an extracting facility (or costs to acquire or maintain a facility). What about a truck/trailer to move the hives for rentals around?

You also have some difficulty maintaining a high $/lb. average the more honey you generate. You can sell 100 lbs retail at $8 easy. When you hit 1,000 lbs, its tough to sell all of that retail (and if you do, it can take alot of time to generate those contacts). By 3,000 lbs (within a few years), you're going to have to sell some of it in bulk. Bulk prices can get down to $2/lb. So you are showing an increase of "price per pound" over the next 10 years, assuming future meets historical projections, but there is no estimate for a reduction of price per pound received as you have more product than potential purchasers to sell it to. You may not have as big of a problem at 4,000 lbs, but I don't know.

I've also heard a commercial operator (at EAS in 2012) mention that he loses 10% of the colonies every time he moves them for pollination purposes. I don't know how accurate this is, but something to keep in mind.

Hope it's been helpful.


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## BK6BR (Jan 27, 2015)

Specialkayme, 
Thank you for that information. I plan on using that to adjust my business plan and the assumptions I take.


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