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June 1997
Guidelines for Estimating
Honey Production Costs
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This guide is designed to provide planning information and a format for calculating
cost of honey production for a 1,000-colony beekeeping enterprise.
It incorporates indoor wintering into its management practice and does not require
package bees for annual replacement stock.
When interpreting these costs for an individual situation, adjustments may be required
due to differences in management practices and facilities. Each assumption must be
examined and adjusted where necessary.
This budget does not include costs beyond the production and extraction of honey.
Transportation costs of honey to a wholesaler or retailer are not included in the budget.
Wax sales were taken into consideration in calculating breakeven costs.
The production costs included in this enterprise budget are not intended as a
cost study of the beekeeping industry in Manitoba.
Mention of a proprietary product does not constitute an endorsement.
HONEY COST OF PRODUCTION SUMMARY - 1997
|
| A. |
OPERATING COSTS |
$/Colony |
Cost/lb |
Your Farm |
| 1. |
Feed Costs: |
|
1.01 |
Sugar Syrup |
$ 13.20 |
$ 0.0733 |
_________ |
|
1.02 |
Pollen Supplement |
0.28 |
0.0016 |
_________ |
|
Total Feed Cost |
$ 13.48 |
$ 0.0749 |
_________ |
|
| 2. |
Other Operating Costs: |
|
2.01 |
Vet. Medicine & Supplies |
$ 7.28 |
$ 0.0404 |
_________ |
|
2.02 |
Stock Replacement |
3.80 |
0.0211 |
_________ |
|
2.03 |
Fuel |
6.00 |
0.0333 |
_________ |
|
2.04 |
Machinery, Mtce. & Supplies |
7.65 |
0.0425 |
_________ |
|
2.05 |
Building Mtce. & Repairs |
5.40 |
0.0300 |
_________ |
|
2.06 |
Utilities |
4.00 |
0.0222 |
_________ |
|
2.07 |
Barrels |
4.35 |
0.0242 |
_________ |
|
2.08 |
Bldg. Vehicle & Liability Ins. |
4.10 |
0.0228 |
_________ |
|
2.09 |
Small Tools, Equip. & Supplies |
1.00 |
0.0056 |
_________ |
|
2.10 |
Memberships & Associations |
1.00 |
0.0056 |
_________ |
|
2.11 |
Miscellaneous Costs |
3.00 |
0.0167 |
_________ |
| Subtotal Operating Costs |
$ 61.06 |
$ 0.3392 |
_________ |
|
2.12 |
Operating Interest |
2.44 |
0.0136 |
_________ |
|
2.13 |
Wax Sales |
($9.45) |
($0.0525) |
_________ |
| TOTAL OPERATING COSTS |
$ 54.05 |
$0.3003 |
_________ |
|
| B. |
FIXED COSTS |
| 3. |
Depreciation |
|
3.01 |
Buildings |
$ 4.96 |
$ 0.0276 |
_________ |
|
3.02 |
Machinery & Equipment |
10.19 |
0.0566 |
_________ |
|
3.03 |
Hives |
5.40 |
0.0300 |
_________ |
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| 4. |
Investment |
|
4.01 |
Buildings |
3.78 |
0.0210 |
_________ |
|
4.02 |
Machinery & Equipment |
4.63 |
0.0257 |
_________ |
|
4.03 |
Hives |
3.30 |
0.0183 |
_________ |
|
4.04 |
Bees |
4.75 |
0.0264 |
_________ |
| TOTAL FIXED COSTS |
$ 37.01 |
$0.2056 |
_________ |
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| TOTAL OPERATING & FIXED COSTS |
$ 91.06 |
$0.5059 |
_________ |
|
| C. |
LABOUR COSTS |
$ 32.00 |
$0.1778 |
_________ |
| TOTAL COST OF PRODUCTION |
$123.06 |
$0.6837 |
_________ |
|
| TOTAL BREAKEVEN PRICE |
$/colony |
$/pound |
|
| Operating Cost |
$ 54.05 |
0.30 |
_________ |
| Operating & Fixed Cost |
91.06 |
0.51 |
_________ |
| Operating, Fixed Cost & Labour |
123.06 |
0.68 |
_________ |
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Breakeven Price/lb. = Production Cost ÷ lbs. of Honey/ColonyASSUMPTIONS
- This budget outlines the cost of honey production.
- Wax sales were assumed @ 1.5% of honey yield @ $3.50/lb.
- While honey is normally marketed wholesale, this budget does not include marketing
costs.
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|
| OPERATION PROFILE |
TOTAL |
| Number of Hives |
1,000 |
| Market Value per Hive (5 boxes top & bottom) |
$120.00 |
| Average Number of lbs. of Honey/Colony |
180 lbs |
| Spring Value of Bees per Colony |
$95.00 |
| Number of Queens Replaced per Year |
250 |
| Cost per Replacement Queen |
$14.00 |
| Number of Queen Cells Used per Year |
150 |
| Cost per Replacement Queen Cell |
$2.00 |
| FEED COSTS |
| Sugar Syrup: |
| Kg of sugar/colony |
20 kg |
| Pollen Substitute: |
| Amount of sugar/colony (g) |
150 g |
| Cost per kg of Sugar |
$0.661/kg |
| Amount of soybean flour/colony (g) |
150 g |
| Cost per kg of soybean flour |
$1.19/kg |
| NOTE:
1 kilogram (kg) = 2.2046 pounds (lbs.)
1 kilogram (kg) = 1000 grams (g)
1 tonne (t) = 1,000 kg |
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For More Information, Contact Your Local Manitoba
Agriculture, Food and Rural Initiatives Office. |
| Manitoba Agriculture, Food and Rural Initiatives gratefully acknowledges the assistance of
the following commercial beekeepers in the preparation of this worksheet. |
Art Bergman
Lorne Peters
Bill Lockhart |
Ted Turnbull
Steve Olnick |
| Budget Prepared by: |
Peter Blawat, P.Ag.
Farm Management Specialist |
Rheal Lafreniere,P.Ag.
Extension Apiarist |
Don Dixon, P.Ag.
Provincial Apiarist |
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