Investing in beekeeping products and services to increase their value-added in the health and cosmetics value chains
Investing in beekeeping products and services to increase their value-added in the health and cosmetics value chains
Business Model Description
Investments in beekeeping products and services to increase their value-added in the health and cosmetics value chains
Expected Impact
Investments in beekeeping services and products will produce income-generation opportunities for rural communities and contribute to food security.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Turkey: Aegean Region
- Turkey: Black Sea Region
- Turkey: Eastern Anatolia Region
Sector Classification
Food and Beverage
Development need
Significant challenges remain for Turkey in combatting hunger and climate change. The relevant indicators across SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) suggest that the existing measures are insufficient to reach the target levels of poverty alleviation in the country by 2023, rendering food security and price stability increasingly important.
Policy priority
Turkey's 2nd Voluntary National Review on the Sustainable Development Goals, 11th Development Plan, and the 2020 Presidential Program place agriculture among the priority development areas. All of these documents highlight concerns over price stability and agricultural productivity. Development within this sector is also vital for rural livelihoods.
Gender inequalities and marginalization issues
The share of women wıorking in the agriculture sector in Turkey is 25.1%, while the share of men is 14.9%. (18) This sector mainly provides employment to women in rural areas as seasonal workers. While this is the case, most of the production equipment are reportedly owned by men. (20) 24.8% of the Turkish population is classified as 'rural' by the FAO. (19)
Investment opportunities
There is a growing international and domestic demand for organic and sustainably produced food products. Moreover, advancements in agricultural technology provide opportunities for more cost-effective and sustainable production methods.
Key bottlenecks
Turkish agricultural production mainly consists of smallholder farmers with fragmented land ownership. While increasing quality standards and technological efficiency, it is important to ensure that changes in the procurement and production systems do not drive these farmers out of the market.
Food and Agriculture
Development need
Access to adequate food and meeting nutrition needs and increasing agricultural productivity and climate resilient agricultural practices are all areas of improvement for Turkey's development trajectory. Agriculture contributed to 5.8% of the GDP in 2018, and this figure is expected to decrease to 5.4% by 2023 (2)
Policy priority
Essential development goals noted by the 11th Development Plan, the VNR on SDGs and the 2020 Presidential Program include improving prosperity in rural areas and achieving sustained food security by increasing the yield and quality of agricultural products; the sustainable management of land and water resources; combatting climate change, desertification and erosion; and protecting biodiversity
Gender inequalities and marginalization issues
The share of women wıorking in the agriculture sector in Turkey is 25.1%, while the share of men is 14.9%. (18) This sector mainly provides employment to women in rural areas as seasonal workers. While this is the case, most of the production equipment are reportedly owned by men. (20) 24.8% of the Turkish population is classified as 'rural' by the FAO. (19)
Investment opportunities
There is a growing international and domestic demand for organic and sustainably produced food products. Moreover, advancements in agricultural technology provide opportunities for more cost-effective and sustainable production methods.
Key bottlenecks
Turkish agricultural production mainly consists of smallholder farmers with fragmented land ownership. While increasing quality standards and technological efficiency, it is important to ensure that changes in the procurement and production systems do not drive these farmers out of the market.
Pipeline Opportunity
Investing in beekeeping products and services to increase their value-added in the health and cosmetics value chains
Investments in beekeeping products and services to increase their value-added in the health and cosmetics value chains
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
Turkey ranks 2nd place in honey production globally (after China in terms of amount produced) and accounts for 6% of the world honey production. The contribution of the beekeeping industry to the Turkish economy is approximately $330 million. (12)
Indicative Return
10% - 15%
Investors considering similar transactions in Turkey target an IRR between 10-15% in this investment area.
Investment Timeframe
Short Term (0–5 years)
Beekeping is not labour intensive, most activities in an apiary do not require large capital costs. In general, beekeping has short-term returns on investment.
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Market - Volatile
Impact Case
Sustainable Development Need
It is estimated that between US$235 and $577 billions worth of annual global food production relies on direct contributions by pollinators. (9)
Pollinator mediated crops account for about 40 % of global nutrient supply for humans (9), honey and other beekeeping products possess anti-oxidant, anti-bacterial and therapeutic properties. (11)
Gender & Marginalisation
25.1%,of the agricultural workers in Turkey are women. In total, 24.8% of the Turkish population is classified as rural. (18,19) Increasing opportunities in this area will contribute to female and rural employment.
In rural communities where access to income is limited, small-scale beekeeping can be a vital source of livelihood, providing income for 60 thousand people, and indirectly for 500 thousand people. Around 2 million people are engaged in amateur or professional beekeeping activities. (10)
Expected Development Outcome
"Improve food security and contribute to nutrition-rich diets, promote sustainable agricultural practice"
Improve biodiversity as bees act as pollinators and are responsible for about 40% of global nutrient supply for humans (9)
Gender & Marginalisation
"Provide livelihoods and decent work opportunities in rural areas"
Primary SDGs addressed
2.1.1 Prevalence of undernourishment
2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)
2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
2.3.2 Average income of small-scale food producers, by sex and indigenous status
2.c.1 Indicator of food price anomalies
<2.5 % (2016-18) (1)
Not available
$15,706.89 (2016) (17)
Not available
12.90 (2014) (17)
0 (1)
Not available
Not available
Not available
Not available
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Planet
Corporates
Outcome Risks
Honey bee pollination can cause crop damage. For example, citrus fruits can be cross-pollinated by honey bees and in some seedless species, this produces seeds.
The pesticides used in citrus cultivation might harm honeybees.
Fake honey production and the failure to uphold the industry standards will reduce the export potential of this sector and pose risks on food safety
Impact Risks
Unexpected impact risk
Execution risk
Impact Classification
What
Important, positive outcome: increased competitiveness in bee products and enhanced biodiversity
Who
Individual producers occupied with small-scale production, food and agricultural researchers, nutrition/cosmetics /pharmaceutical companies using beekeping products
Risk
Medium Risk (Fake honey production and the failure to uphold the industry standards will reduce the export potential of this sector and pose risks on food safety.)
Impact Thesis
Investments in beekeeping services and products will produce income-generation opportunities for rural communities and contribute to food security.
Enabling Environment
Policy Environment
11th Development Plan: Breeding needs will be met and product diversity will be increased in beekeeping to protect the production dynamics, lifestyles and natural and cultural assets in the villages; traditional crafts/handicrafts, agro-tourism, geographically marked products, ornamental plants.
(2019-2023 Stategic Plan of the Ministry of Agriculture): The 2019-2023 Stategic Plan of the Ministry of Agriculture states the objective to increase product variety and quality in beekeping
(New Economic Program of 2020-2022): The New Economic Program of 2020-2022 states that new support mechanisms will be rolled out within the agriculture sector to support small-scale producers
Financial Environment
Financial incentives: The Ministry of Agriculture and Forestry Beekeping Support Program offers 15 TL support per hive and other such small-scale financial assistance for beekeepers. (13) ORKÖY provides micro-credits to women (housewives) living in rural areas (16)
Fiscal incentives: Ziraat Bank provides credit support with an upper threshold of 2.500.000 TL and a net interest rate of 10% for beekeepers who possess a minimum of 50 hives (14). The Bank also has an insurance scheme wherein 50% of the insurance premium is covered by the government. (15)
Other incentives: TKDK provides farmers engaged in beekeeping activities with up to 100.000 euros of grant support in proportion to their operation costs. (13) Up to 30 thousand liras worth of grant support is provided to beekeepers aged 18 to 41 by the Ministry of Agriculture upon approval. (13)
Regulatory Environment
Regulation on Beekeping determines the principles of fixed and mobile beekeeping, taking necessary precautions regarding bee health and transportation, standardization of tools, machinery and materials, training, project design, development of honey plants agriculture and queen bee breeding. It governs all kinds of production related to beekeeping, breeding and breeding material.
Regulation on Establishing Husbandry Unions and Their Services defines the principles and procedures to establish husbandry unions in Turkey.
Ministry of Agriculture and Forestry's Directorate of Husbandry: Governs activities on a national scale, City and Provincial Directorates - on a local level.
Marketplace Participants
Private Sector
Companies engaging in beekeping and other related activities such as Fanus, BEEO, Bal Parmak. Ziraat Bank, Şeker Bank, domestic and international banks
Government
The Ministry of Agriculture and Forestry
Multilaterals
EBRD
Non-Profit
ORKÖY, Agriculture and Rural Development Support Institution, BAL-MER, beekeeping cooperatives such as Türkiye Arı Yetiştiricileri Merkez Birliği
Target Locations
Turkey: Aegean Region
Turkey: Black Sea Region
Turkey: Eastern Anatolia Region
References
- (1) Sustainable Development Report Dashboard 2020, OECD Members, Turkey, https://dashboards.sdgindex.org/?fbclid=IwAR1tzYVKRXvPD2mwfvhf-mLTGGQEjA76y_HlrprWhSzNYZcqrLZMLXzRIcI#/TUR "2) 11th Development Plan http://www.sbb.gov.tr/wp-content/uploads/2020/03/On_BirinciPLan_ingilizce_SonBaski.pdf "
- (3) The New Economic Program of 2020-2022, http://www.sbb.gov.tr/wp-content/uploads/2019/10/YeniEkonomiProgrami_OVP_2020-2022.pdf
- (4) Sustainable Development Goals Evaluation Report from the Directorate of Strategy and Budget
- (5) The 2019-2023 Strategic Plan of the Ministry of Agriculture and Forestry, https://www.tarimorman.gov.tr/SGB/Belgeler/stratejikplan.pdf
- (6) TR82 Regional Plan 2014-2023, https://www.kuzka.gov.tr/paylasim/20160401_tr82_bolge_plani_(WEB).pdf
- (7) OKA Regional Development Master Plan, https://www.oka.org.tr/assets/upload/dosyalar/ybdp_regional_development_master_plan-39-85.pdf
- (8) TRB1 Regional Plan, https://fka.gov.tr/sharepoint/userfiles/Icerik_Dosya_Ekleri/BOLGE_PLANI/TRB1BOLGEPLANI(2014-2023).pdf
- (9) World Bee Project, http://worldbeeproject.org/
- (10)Sozcu, "Türkiye Bal Üretiminde Dünya İkincisi", https://www.sozcu.com.tr/2017/ekonomi/turkiye-bal-uretiminde-dunya-ikincisi-1900484/
- (11)CNN, The Proven Health Benefits of Honey, https://edition.cnn.com/2018/01/15/health/honey-health-benefits/index.html
- (12) European Journal of Sustainable Economic Development, " Structure and Services Efficiency of Turkish Beekeepers’ Association" (2017)
- (13) Bilgi Bankan, 2019 Yılı Arıcılık Hibe ve Destekleri, https://bilgibankan.com/2019-yili-aricilik-hibe-ve-destekleri/
- (14) KOSGEB Kredi, "Ziraat Bankası Arıcılık Kredisi (2020’de Yüzde 70 Hibe Destek)", https://www.kosgebkredi.net/ziraat-bankasi-aricilik-kredisi/
- (15) Ziraat Bankası, Devlet Destekli Arıcılık Sigortası, i
- (16) ORKÖY, Tanıtım Kitapçığı 2018, https://www.ogm.gov.tr/Baskanliklar/OrmanveKoyIliskileri/Documents/ORK%C3%96Y%20TANITIM%20K%C4%B0TAP%C3%87I%C4%9EI%202018.pdf
- (17) SDG Tracker - https://sdg-tracker.org/zero-hunger
- (18) ILOSTAT, 2019, https://ilostat.ilo.org/data/country-profiles/
- (19) FAOSTAT, 2018, http://www.fao.org/faostat/en/#country/223
- (20) FAO, 2018, http://www.fao.org/new-york/fao-statements/detail/en/c/1109620/