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MAHA Pvt. Ltd.: Leading Honey Exporter from Nepal - Business Exploration

Discover how MAHA Pvt. Ltd. aims to dominate the honey market in Nepal and expand globally, with an initial investment in beekeeping and a profitable business plan. Learn about the regulatory, socio-cultural, economic, legal, technological, environmental, and international market factors influencing the honey industry. Explore the business prospects, including pricing, production costs, market trends, and international trade policies. Uncover the potential for growth and success in the honey sector, along with key strategies and support systems contributing to the company's objectives.

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MAHA Pvt. Ltd.: Leading Honey Exporter from Nepal - Business Exploration

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  1. MAHA Pvt. Ltd Presented by: Raj Maharjan 17317

  2. Company Name – MAHA Pvt. Ltd • Products –Honey • Objective– To be the market leader in • Nepal and with an aim to export • honey in the international market • in future. • Profit plan • Initial investment – 1 million (100 beehives) • One beehives produce 40 – 50 kg of honey per year • Profit = 4500*100 = 450000 (approx.)

  3. Regulator: • Ministry of Agriculture and Livestock Development • Directorate of Industrial Entomology Development Supporting bodies: • Federation of Nepali Beekeepers • Nepal Beekeeping Central Cooperative Union and • Central Honey Entrepreneurs' Association of Nepal

  4. Product Economy • According to Central Honey Entrepreneurs Association of Nepal: • Nepal currently produces: 2,050 tonnes • potential : 35,000 tonnesannually • Nepal Trade Integration Strategy 2010 has also listed honey among the 19 major exportable items. • As per the figures of the Trade and Export Promotion Centre, • 2,400 tonnes of honey was imported in the last fiscal year. • (50 % of market demand) • ( source : The Kathmandu post, 2016)

  5. Political Environment • Federalism: Inter state competition (taxation) • Corruption Perception Index :2017 – 122nd out of 180 countries (31) Socio cultural Environment • Health benefit (cold , cough, burns) • Religious Significance • Hindu- One of panchaamrit • Jewish- Important for new year • Islam- Quran explain honey as healing for humankind.

  6. Economic environment • Agriculture contribution to GDP: 27.1% • Apiculture Contribution: less than 0.10 % • Sector wise budget allocation: agriculture 33.71 billion • Budget 2075-2076 • Agriculture equipment factory will be established. • The model agricultural farm will be made in every seven states. • Agricultural knowledge center will be established at all local level

  7. Legal environment • Industrial Enterprise Act, 2016 (small and cottage industry) • Private Firm Registration Act, 1958 • Nepal Trade Policy, 2015 – Classified as Thrust Area Development • Industrial policy – Financial incentives • Animal health and livestock services act 2056 • Other act (Labor Act, 2017, Foreign Exchange (Regulation) Act, 1962 Import and Export (Control) Act, 1957)

  8. Nepal Trade Policy, 2015 • Honey has been Classified as Thrust Area Development. • Agricultural products with high export potential. Industrial Policy • five per cent concession on income tax. • Similarly, honey producers are also permitted to add one-third more to their depreciation amount. • Beyond income tax, the policy also includes provisions for zero excise duty and Value Added Tax (VAT) for goods produced for export.

  9. Technological Environment • Modern honey extracting machine • Packaging and leveling • Ecommerce • Advertisement through digital media • Environmental Environment • Studies suggest that a farmer earns 3.5 times more from pollination than the beekeeper earns from honey (FAO)

  10. International market • Tariff Measures • Nepal, being a least developed country, enjoys preferential treatment as a zero tariff nation

  11. Non-tariff Measures • Codex Alimentarius Commission (CAC). • Export of honey to the EU also requires a health certificate of the bees by a registered veterinarian. • The United States has no specific honey legislation, but Food and Drug Act apply to honey as well. • Residue Monitoring Plan • Traceability and fair trade certification • Organic Certification

  12. Business Prospect • Retail Product price : 500-800 per kg • International price: average 7$ per pound • 15$ per KG (source: honey.com) • Cost of production: 216.5 • Import of honey: • Nepal: 50% • EU: 40% • America: 64%

  13. Source: Inclusive Development of the Economy Programme (INCLUDE), 2014

  14. Conclusion • Diverse climatic conditions and abundance of flora suitable for beekeeping. • Unique taste of Nepalese honey due to climate and flora. • Availability of technical support and some form of subsidy from the government to beekeepers. • Number of associations/cooperatives and the development partners working in the promotion of honey subsector. • Involvement of the private sectorand Beekeeping has been practiced for generations. • Honey listed as a Nepal Trade Integration Strategy (NTIS) product.

  15. Reference • http://kathmandupost.ekantipur.com/printedition/news/2014-06-18/honey-prices-double-on-rising-demand.html • Industrial Enterprise Act, 2016 • Private Firm Registration Act, 1958 • Budget Speech, Ministry of Finance, 2017/18 • www.tepc.gov.np • http://kathmandupost.ekantipur.com/news/2017-10-25/apiculture-brings-sweet-success-to-farmers.html

  16. Thank you

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