Published on July 13, 2016
1. VIGILANCE Page | 1 Abstract The main focus of the study was to examine the supply chain of honey in Bangladesh. This is very potential and profitable business in Bangladesh. It will be a great source of employment creation for the rural poor people to reduce the poverty. There is a great prospect of beekeeping in Bangladesh on the basis of the socio-economic context of the country and some special features of the enterprise. However, there have yet to be a study of honey supply chain in Bangladesh. Therefore the paper is aiming at identifying the supply chain of honey and analyzing the supply chain using value stream mapping and value stream analysis. The scope of the study covered from farmer or honey collector of Sunderban, middle man, processing organization and exporter. The data used is taken from both primary data (honey businessmen related to Sunderban and apiculture, because these businessmen are working more in these areas than others in Bangladesh)and secondary data. Result of the study indicates improvement suggestion as well as identifies the best practice. Keywords: Honey Supply Chain, Value Stream Mapping and Value Stream Analysis. Introduction Among almost all natural food goods, honey is probably one of the most unique in terms of its production history and importance. Present honey production in Bangladesh is 1600 MT where it has great potentiality of 25000 MT (economic potentials 09). Export value in 2006 is $2862000 and in 2008 is $212000 (export value of natural honey in Bangladesh, retrieved may 13, 2012). Honey production The first step in making honey begins when field bees fly from flower to flower collecting the sweet juices or nectar that a flower provides. With their tongues, the field bees suck out the nectar and store it in sacs within their bodies. After filling their sacs with these sweet juices, the field bees fly back to their bee hive and regurgitate the stored nectar into the mouths of house bees (How do honey bees make honey?, retrieved may 13, 2012).
2. VIGILANCE Page | 2 These house bees are assigned the job of adding enzymes from their bodies to the nectar. The enzymes cause the water in the nectar to evaporate-thereby turning the nectar into honey. Lastly, the nectar is stored in a cell of a honeycomb. Overtime, the nectar ripens and becomes honey. (How do honey bees make honey?, retrieved may 13, 2012). Honey Supply Chain The supply chain of honey starts from honey collectors that collect honey from Sunderban and farmers related to apiculture. Where they sell their product directly to the local business man, process organizations or customers. Where most of the time, they will be contacted by middle man per industry or exporter order. The collectors collect honey from Sunderban and farmers receive honey by doing apiculture. Then the process organization storage, process, packaging, quality control company before it can be sold by the exporter or to the industry (Bay Bangladesh). Objectives of the Study To explore the physical flow of honey’s supply chain. To explicit the value stream map of honey To analyze the value stream map of honey. To know the related parties with honey supply. Methodology of the study Primary and secondary data were collected through systematic way to meet the objectives of the study. The study was conducted in Shamnagor upazila of Satkhira District (Sunderban), Khulna (middleman of honey of north Bengal) because beekeeping activities are done intensively in these areas. Purposive sampling technique was applied for selecting study areas and random sampling technique was applied for choosing sample units. The field surveys were made from 8th to 9th May 2012 for collecting necessary data of the study. Bees collect honey-producing substance (nectar) from the flowers of mustard, sesame, litchi and other plants. Data were collected through face-to-face interview method by using interview schedule. At first a rapport was made with the businessmen so that they feel friendly relation and easy to give data. The data supplied by the businessmen were recorded directly on the interview
3. VIGILANCE Page | 3 schedule. Data were analyzed with a view to achieving the objectives of the study. Value Stream Mapping has applied to analyze the supply chain of honey. Literature Review A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer(supply chain 2012). Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain (supply chain management 2012). Basic supply chain tools being used in this study are Value Stream Mapping/ Value Stream Analysis. The tools are not new however the context of honey is yet to be seen. Therefore, the following section will only brief these commonly-known techniques. Value Stream Mapping/Value Stream Analysis Value stream mapping and Value Stream Analysis is one of the most popular supply chain analysis techniques focusing on the flow of materials and information required to deliver a product to a consumer. With an indicator of time, each activity would be categorized in terms of Value-Added Activities (VA), Non-Value Added Activities (NVA) and Necessary-Non-Value Added Activities (NNVA). Therefore, improvement in the supply chain can preliminarily identify. There are yet to be a study on honey value stream. (Rice supply chain)
4. VIGILANCE Page | 4 General Information about Honey Honey Is… Honey is a sweet food made by bees using nectar from flowers. Honey is a sweet, thick sugary solution made by bees. The composition of honey consists of varying proportions of fructose, glucose, water, oil and special enzymes produced by bees. (Honey, retrieved may 13, 2012) Honey is made by bees in one of the world’s most efficient facilities, the beehive. The 60,000 or so bees in a beehive may collectively travel as much as 55,000 miles and visit more than two million flowers to gather enough nectar to make just a pound of honey! The color and flavor of honey differ depending on the bees’ nectar source (the blossoms). In fact, there are more than 300 unique kinds of honey in the United States, originating from such diverse floral sources as Clover, Eucalyptus and Orange Blossoms. In general, lighter colored honeys are mild in flavor, while darker honeys are usually more robust in flavor. History of Beekeeping in Bangladesh: Practiced haphazardly since time immemorial. In 1940 keeping or rearing bees in wooden hives probably started during the self-reliant movement of Mahatma Gandhi. In 1950’s experimental Beekeeping was done in the Tea growing areas of Sylhet district. In 1960’s BSCIC has started Bee-keeping at jatapurin, Baherhat district. During this whole period the result was not-satisfactory due to inappropriate technology. In 1977 BSCIC again started Beekeeping in modern and scientific way. Now many other Govt. and Non Govt. organization have undertaken Beekeeping program having successful efforts. [Appropriate technology for apiculture and its economic potentials]
5. VIGILANCE Page | 5 The Delicious Forms of Honey Most of us know honey as a sweet, golden liquid. However, honey can be found in a variety of forms. Comb Honey - Comb honey is honey in its original form; that is, honey inside of the honeycomb. Cut Comb - Cut comb honey is liquid honey that has added chunks of the honey comb in the jar. This is also known as a liquid-cut comb combination. Liquid Honey - Free of visible crystals, liquid honey is extracted from the honey comb by centrifugal force, gravity or straining. Because liquid honey mixes easily into a variety of foods, it’s especially convenient for cooking and baking. Naturally Crystallized Honey - Naturally crystallized honey is honey in which part of the glucose content has spontaneously crystallized. It is safe to eat. Whipped (or Cremed) Honey - The crystallization is controlled so that, at room temperature, the honey can be spread like butter or jelly. In many countries around the world, whipped honey is preferred to the liquid form especially at breakfast time. (The Delicious Forms of Honey retrieved may 13, 2012). Honey Color and Flavor Honey is normally bought and sold in one of two ways: by variety or by color. Most consumers, whether buying honey in a supermarket, at a farmer’s market, or directly from a beekeeper, will typically buy a blend of pure honeys, the so-called Supermarket Store Brands or a particular honey varietal, such as the most common of all the varietals, Clover Honey. The color and flavor of many honeys are linked; that is, the darker the honey, the more apt it is to taste stronger and more robust. The lighter colored honeys are usually more delicate and sweeter in flavor. Sometimes people shop for a honey varietal simply because they like the flavor or it reminds them of the kind of honey they had when growing up or they like to impress their friends with a unique treasure! Overall, these customers like the delicious flavors of honey; the color is irrelevant to them (Honey Color and Flavor retrieved may 13, 2012 ).
6. VIGILANCE Page | 6 Honey Products Honey products do not meet the compositional criteria for pure honey, but are products consisting in whole or in part of honey. Dried Honey - Dried honey is honey that has been dehydrated over very high heat, and then mixed with starches or sugars to keep it free-flowing. It is not true honey. Flavored/Fruited Honey – Flavored or Fruited honey is honey that has fruit, coloring or flavoring added. Though the fruits or flavoring may be quite delicious it is not pure. Infused Honey - Infused honey is honey that has had flavors of herbs, spices, peels, etc. added to it by steeping. Nutritional Value Honey nutritional value per 100g (3.5 oz) Energy 1,272 kJ (304 kcal) Carbohydrates 84.4g Sugars 82.12g Dietary fiber 0.2g Fat 0g Protein 0.3g Water 17.10g Riboflavin (vitamin B2) 0.038 mg (3%) Niacin (vitamin B3) 0.121 mg (1%) Pantothenic acid 0.068 mg (1%) Vitamin B6 0.024 mg (2%) Folate (vitamin B9) 2 µg (1%) Vitamin C 0.5 mg (1%) Calcium 6 mg (1%) Iron 0.42 mg (3%) Magnesium 2 mg (1%) Phosphorus 4 mg (1%) Potassium 52 mg (1%) Sodium 4 mg (0%) Zinc 0.22 mg (2%) Table 1: Honey nutritional value per 100gm (Source: Nutrition facts, retrieved may 13, 2012)
7. VIGILANCE Page | 7 Supply Chain of Honey Figure 1: physical flow within honey (Sunderban) supply chain Source: Field Survey 2012 Collectors as this point the Mawoaly collect honey from the Sunderban at the time of mid-April to mid-June. Then the collector supply to the middleman as a contractual agreement. The middlemen supply the honey to the firms or industries then those firms or industries stock the honey for the purpose of processing. At the processing stage, the firms make the honey at a standard level and packaging the honey in container. Then those industries bring in market to the distributors, exporters and retailers. From the market, various customers take the honey product this customers may be domestics or industries. The industries manufacture various products such as food, pharmaceutical and cosmetics. COLLECTORS MIDDLE MAN PROCESSING MARKET CONSUMERS Domestic Industries >Food >Pharmaceutical >Cosmetics Distributors Exporters Retailers direct sales Processing Packaging & wear housing Local businessm Firm or industry Stock Mawoaly [Local people]
8. VIGILANCE Page | 8 Figure 2: physical flow within honey (Apiculture) supply chain Source: Field Survey 2012 The local farmer produces honey by the apiculture at the time of December to January. Then the collector supply to the middleman as a contractual agreement. The middlemen supply the honey to the firms or industries then those firms or industries stock the honey for the purpose of processing. At the processing stage, the firms make the honey at a standard level and packaging the honey in container. Then those industries bring in market to the distributors, exporters and retailers. From the market, various customers take the honey product this customers may be domestics or industries. The industries manufacture various products such as food, pharmaceutical and cosmetics. Farmers MIDDLE MAN PROCESSING MARKET CONSUMERS Domestic Industries >Food >Pharmaceutical >Cosmetics Distributors Exporters Retailers direct sales Processing Packaging & wear housing Local businessm Firm or industry Stock Local farmers
9. VIGILANCE Page | 9 Result discussion Figure 3: Value Stream Map of Honey (Sunderban) Source: Field Survey 2012 In general, the collector needs 30 days to collect honey from the Sunderban. In the middleman stage, they receive the honey from the various collectors for this reason they take 15 days to receive the honey. After the receiving the honey, he took 10 days for processing and refining then store in warehouse 10 days and transport to the process organization. The process organization stock the honey 4 days and take 8-10 days to process and refining then took 2 days to packaging and take 2 days for warehousing, lastly take a day for transport to the exporter. The exporter receives the honey, storage and supply the product to the foreign customer. Production Control System Collectors 30 Days Customers Middle man Receive [15 Days] Processing [10 Days] Storage [10 Days] Transport [1 Day] Exporter Transport [1 Day] Stock [10 Days] Receive [1 Day] Process Organization Receive [1 Day] Stock [4 Days] Processing [8-10 Days] Packaging [2 Days] Warehousing [2 Days] Transport [1 Day] Daily Schedule
10. VIGILANCE Page | 10 Table 2: Value Stream Analysis of Honey (Sunderban) Supply Chain Value of Activities Activities Time No. of Activities % Days % Value-Added -Activities [VA] 1,3,8,9 4 28.57 52 53.00 Non-Value-Added -Activities [NVA] 2,5,6,11,12,14 6 42.86 20 20.00 Necessary- Non-Value-Added -Activities [NNVA] 4,7,10,13 4 28.57 26 27.00 Total 14 100 98 100 Source: Field Survey 2012 Value stream analysis provides 4 value-added-activities, 6 non-value-added-activities and 4 necessary-non-value-added-activities. From the table, value-added-activity takes 53% of total time; non-value-added-activity takes 20% of total time and necessary-non-value-added-activity takes 27% of total time. We can see, the most of the time is taken to the value –added activity.
11. VIGILANCE Page | 11 Figure 4: Value Stream Map of Honey (Apiculture) Source: Field Survey 2012 The farmer makes the honey by the apiculture and takes 60 days for formulating the pure honey. In the middleman stage, they receive the honey from the various collectors for this reason they take 15 days to receive the honey. After the receiving the honey, he took 10 days for processing and refining then store in warehouse 10 days and transport to the process organization. The process organization stock the honey 4 days and take 8-10 days to process and refining then took 2 days to packaging and take 2 days for warehousing, lastly take a day for transport to the exporter. The exporter receives the honey, storage and supply the product to the foreign customer Production Control System Local Farmer [60 Days] Customers Middle man Receive [15 Days] Processing [10 Days] Storage [10 Days] Transport [1 Day] Exporter Transport [1 Day] Stock [10 Days] Receive [1 Day] Process Organization Receive [1 Day] Stock [4 Days] Processing [8-10 Days] Packaging [2 Days] Warehousing [2 Days] Transport [1 Day] Daily Schedule
12. VIGILANCE Page | 12 Table 3: Value Stream Analysis of Honey (Apiculture) Supply Chain (Source: Field Survey 2012) Value stream analysis provides 4 value-added-activities, 6 non-value-added-activities and 4 necessary-non-value-added-activities. From the table, value-added-activity takes 64.06% of total time; non-value-added-activity takes 15.63% of total time and necessary-non-value-added- activity takes 20.31% of total time. We can see, the most of the time is taken to the value –added activity. Problems related to Honey in Bangladesh: Poor and slow transportation (road and highways, railways, etc.) facilities in Bangladesh. Improper, unplanned and unscientific use of insecticides and pesticides in honey. Non-availability of machinery, equipment, medicine and artificial feeding in respect of appropriate and modern technology. Lack of related information center and laboratory for preliminary examination or field test for wild bees and bee-keeping. Lack of knowledge about the honey production, processing, storage and environment as well. Insufficient communication and coordination with the concerned world authority and/or institution for the development of honey in this region. Value of Activities Activities Time No. of Activities % Days % Value-Added -Activities [VA]1,3,8,9 4 28.57 82 64.06 Non-Value-Added -Activities [NVA]2,5,6,11,12,14 6 42.86 20 15.63 Necessary- Non-Value-Added -Activities [NNVA]4,7,10,13 4 28.57 26 20.31 Total 14 100 128 100
13. VIGILANCE Page | 13 Prospects related to Honey in Bangladesh: Apiculture- a potential perspective in Bangladesh On the basis of present condition an approximate data on the following activities can predict the present status and potentiality of beekeeping in Bangladesh. Activities Existing Potentiality Remarks Honey production 1600 MT 25,000 MT Including sundarban honey and honey hunter throughout the country. No. of wild colonies 4,55,000 9,50,000 No. of domesticated colonies 35,000 9,00,000 No. of beekeeper 25,000 4,00,000 No. of Honey hunter 45,000 Existing bee hunter may be converted to beekeeper. Employment generation 70,000 4,30,000 Existing employment generation includes the bee hunter. Enhanced crop yield per year. TK. 1,200 Millions Tk. 80,000 Millions Table 4: Apiculture- a potential perspective in Bangladesh [Source: Economic Potential 2011] Bee cultivation does not require much capital and labor. 5 days training from Bangladesh Small and Cottage Industries Corporation (BSCIC) is sufficient for apiculture. High education is not required for apiculture. Additional land is not required for apiculture. Crop cultivation can be done successfully beside apiculture. Production cost of honey is not high. Suggestions: Price can be minimized by reducing middleman and non-value added activities. Use of modern technology in every stages of supply chain. Transportation infrastructures and facilities should developed by government, NGO’s. Use of standard packaging of honey. BSCIC should provide adequate training to related parties of supply chain. Marketing mechanism can be a good scheme where the chain can be more negotiate to the market
14. VIGILANCE Page | 14 Summary The study focusing on honey supply chain using value stream mapping and value stream analysis. Where the non-value added activities which mostly are at the receiving station from each supply chain member are improvable, planning process is among the top issue to improve the supply chain efficiency. Marketing mechanism can be a good scheme where the chain can be more negotiate to the market. References: Bangladesh Bureau of Statistics. 2011. Population Census 2011. Ministry of Planning, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh. Bangladesh Bureau of Statistics. 2008. Statistical Yearbook of Bangladesh. Ministry of Planning, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh. Paul, K.P. 2006. An Economic Study on Production and Marketing of Honey in Some Selected Areas of Bagerhat Sadar Thana. Unpublished MS Thesis, Department of Cooperation and Marketing, Bangladesh Agricultural University, Mymensingh. Ramingwong, Sakgasem, W, Wattanutchariya, and Laosiritaworn, W. 2011. The study of parboiled rice’s supply chain in Thailand, Thailand, Chiang Mai University, Chiang, Thailand. Saha, Jagadish Chandra (2009), Appropriate technology for apiculture and its economic potentials, bangladesh, pallikarma-sahayakfoundation (pksf) Saha, G.C. 2010. Beekeeping for Rural Development, its Potentiality and Beekeeping against Poverty- Bangladesh Perspective. Taylor, C. (2008). Price Reactions After the Official Release of the NASS Honey. USDA‐NASS. Research Report Number RDD‐08‐02. Washington D.C.
15. VIGILANCE Page | 15 Web Page, Export Value of Natural honey in Bangladesh, retrieved may 13, 2012 http://data.mongabay.com/commodities/category/2Tra/8Crops+and+Livestock+Products/ 1182-Natural+honey/91Export+Quantity/16-Bangladesh Web Page, Supply chain, retrieved may 13, 2012 http://en.wikipedia.org/wiki/Supply_chain Web Page, Supply chain management, retrieved may 13, 2012 http://en.wikipedia.org/wiki/Supply_chain_management Web Page, What is honey? How do honey bees make honey? retrieved may 13, 2012 http://www.coolquiz.com/trivia/explain/docs/honey.asp Web Page, honey, retrieved may 13, 2012 http://en.wikipedia.org/wiki/Honey Web Page, The Delicious Forms of Honey retrieved may 13, 2012 http://www.honey-well.com/forms.html Web Page, Honey Color and Flavor retrieved may 13, 2012 http://www.honey.com/nhb/media/press-kit/press-kit-honey-color-and-flavor/ Web Page, Nutrition facts, retrieved may 13, 2012 http://www.yemensidrhoney.com/index.php?option=com_content&view=article&id=56 &Itemid=41
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