Economic and financial viability of honey production in Oaxaca, Mexico

Abstract

Southeast Mexico is home of some of the poorest states in the country. For the inhabitants of these regions, beekeeping has become an important source of income that does not require a significant investment for developing the activity. Although they do not always obtain sufficient income to cover their costs, they continue to develop it as part of their social reproduction strategies, through which they obtain income from different sources. In this paper, a cost analysis was conducted of two representative production units (RPUs). This type of study is useful to monitor activities of companies and helps to make decisions that will have a direct impact on their profits. The objective was to estimate the operating costs of two RPUs in Sierra Sur, Oaxaca: OAAP300, which is comprised of organic honey producers, who work with 300 hives and have a yield of 35 kg at a price of $59.00, and OAAP50, which includes conventional honey producers, who have 50 hives and a yield of 25 kg at a price of $63.50. This shows that both RPUs can cover their cash needs for their operating costs, and although both seem profitable, OAAP50 is more sensitive to low prices and sacrifices part of its profits to sustain itself, considering family work as an unpaid activity.