11 August 2001

To all Industry Members

You may be aware we have applied successfully for a grant from the Minister of Agriculture's Sustainable Farming Fund.  A broad outline of the project is attached to this letter.

It is fundamental to the project that it addresses Beekeeper's needs and aspirations and that our members are very much part of the planning and implementation of the project.  To this end I ask that you take this letter and the attached summary to your branch for comment and input.  There will be a description of the project in this month's Beekeeper so people should be aware of the grant.

We would like each Branch to appoint a co-ordinator who can speak for the Branch and generally facilitate the flow of information in both directions.  As the project evolves it will call for a degree of involvement in its implementation from these co-ordinators.  This "hands-on" job will require some commitment over a period of three years and should not be undertaken lightly.

Anyone interested should not allow any perceived lack of skills to stop them from putting their names forward.  A three-day workshop covering project management, communication skills, team leadership and meeting management will be held to provide both skills and confidence to this group.

Please read the attached summary and discuss it as widely within your Branch as you can.  Feel free to contact me if you need to discuss this further.

Sincerely yours,

Lin McKenzie

Sustainable Farming Fund Grant
from Support Portfolio sponsor Lin McKenzie

We were advised on July 13th by Kevin Steel, manager of the Sustainable Farming Fund that our application to the Fund for assistance with our project has been approved and that, subject to our addressing some issues of detail we should shortly be in a position to prepare contracts.
Briefly, we have applied for and been granted assistance of $291,000 by the fund. In addition $100,000 from the Industry has been budgeted, an application is currently with the Industry trust Fund Trustees for this amount.  A further contribution of $98,000 "in kind' from the Industry has been budgeted along with $42,000 from allied industries.  The total project funding amounts to $531,000 and the project is expected to be completed in three years.
A summary of the project, based on the successful application follows.

Project Title: Expanding Options for New Zealand Beekeepers.

1. The objective of the project:
   The overall goal of the project is for Beekeepers to strengthen their businesses by using an expanded range of income streams so that they can survive and prosper post varroa.  Healthy businesses will be able to offer better employment opportunities and continue to provide the pollination services that underpin the New Zealand agricultural economy.
   Sub-objectives to this overall goal are:
   1. To provide trained and effective leaders for the Beekeeping industry.
   2. To establish a financial monitoring and benchmarking service for Beekeepers and associated industries and organisations.
   3. To identify and evaluate new business options.
   4. To establish regional sector groups, representing the different agricultural industries, to develop joint solutions to pollination problems.
   5. To have Beekeepers trained and confident to take advantage of new options.

2. What is the project going to do and how will it help to solve the problem or take advantage of the opportunity?
   Varroa mite threatens the livelihood of Beekeepers and will affect the primary industry sectors such as horticulture, cropping and pastoral farming who are dependent on honey-bee pollination services.  If we do nothing, up to 30% of beekeepers could exit the industry with resulting loss of regional income and employment.  The effect on farmers and growers will be even greater with MAF estimating a cost of up to $900m by 2035.  Environmentally, more nitrogen will be required to replace the role of clover.  This project looks to give positive leadership to an industry perhaps approaching crisis. For Beekeepers, each region will be affected differently and will need to arrive at new ways of doing business that are appropriate to that region.  For some, it will be increasing pollination charges; for others charging for pollination when this has never happened before.  Some Beekeepers will see opportunity in additional products such as propolis, bee venom, disposable pollination boxes, etc.
   Currently MAF estimate costs to treat for varroa will be in the region of $40 to $50 per hive annually (Varroa in New Zealand, Economic Impact Assessment, MAF Policy November 2000).  The goal of this project is to assist beekeepers to develop income streams to meet this cost over the commercially managed beehives in New Zealand.
   Those hives are in the hands of approximately 700 Beekeepers.  The potential and need is to generate an additional $12m in those beekeeper's hands.  The major barriers to going forward may, in some cases include a lack of vision and a lack of confidence and skills to tackle the unknown.
   Central Government has provided $7.3m to assist Beekeepers adapt to an environment in which varroa is present.  That money is tightly tied to technical control of the mite, not to Beekeepers' operation of their businesses.
   The project will be delivered through NBA branches so that each region tailors the resources to meet the specific needs of local Beekeepers.  The NBA, through a national management committee, will provide co-ordination of resources between the branches.
   Within these regional differences, the project is designed for delivery in five major stages.
   Stage 1 - Industry leadership.
   The national management team and the branch co-ordinators are seen as people that can provide leadership for the future of the industry.  This project provides an opportunity for displaying leadership.
   A three-day workshop covering project management, communication skills, team leadership and meeting management will be held to provide both skills and confidence to this group.
   Detailed regional project plans will also be an outcome of this stage.
   Stage 2 - Financial monitoring and benchmarking service.
   A financial monitoring of apiaries, along the same lines as MAF Farm Monitoring, will be contracted out to provide a statistically sound base for business evaluation and planning.  The survey will be based on the 700 commercial Beekeepers.
   At least two models, one where pollination fees are a major income source and another where honey and other products make up the bulk of the revenue, will be developed.  The models will be made available to government and service industries as well as Beekeepers.
   Agriculture New Zealand will conduct the surveys and develop the models.
   Stage 3 - Identify and evaluate new business options.
   The results from monitoring will be fed back to Beekeepers at branch level.
   Information on business options will be co-ordinated at the national level and provided along with the monitoring feedback.
   Opportunities for products and services such as propolis, bee venom, disposable pollination boxes etc. will be evaluated.  Market, financial and technical information will be made available for branch co-ordinators to adopt.
   Interest and knowledge will be assessed after these meetings to plan follow up workshops.  Where a small group of local Beekeepers wish to join together to explore a common option, the branch co-ordinator will facilitate help and support for the group.
   Stage 4 - Liaison with other agricultural and horticultural sectors.
   Once Beekeepers have a clearer picture of the health of their businesses and have explored the impacts of varroa and the possible new business opportunities, they will want to discuss this with their agricultural and horticultural neighbours.
   The interdependence of the sectors means that any change to pollination services, including fees, must be discussed locally.  The other sectors may not be able to pay the pollination fees required and Beekeepers may not be able to continue in business without these fees.
   Regional forums are seen as essential to get local solutions.
   Stage 5 - Improved business skills for Beekeepers.
   The arrival of varroa has, and will, put many Beekeeping businesses under severe financial pressure.  Many Beekeepers may lack the business skills to adapt to new ways of doing business.  Stress will compound the difficulties for them in making decisions.  It is important that skill training is provided as part of a total package where all the components are integrated into a business plan that uses the information from the option evaluation.
   The courses to be held for Beekeepers will be designed to provide them with the skills to develop a business plan, monitor business performance and evaluate new options.  The courses will focus on providing Beekeepers with the confidence to put new knowledge into practice.