Famagusta, Cyprus, 2019

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Value Chain in Export Honey

Assoc. Prof. Dr. Akylbek Umetaliev (Kyrgyz State Technical University, Kyrgyzstan) Abstract

This paper examines creating a value chain in export honey from the Kyrgyz Republic.

The annual production is 12,000 tons, 500 tons are exported. The Supply Chain Operation Reference (SCOR model) at three stages of optimization of honey production has been adapted. The following research methods were used: desk study, survey of producers and consumers, interviews with relevant organizations, personal observations retailers. At the initial stage of optimization, recommended to maintain planning of the number of bee colonies. How to effectively use natural resources for bee colonies - finding useful flora (a flowering mass of plants to collect nectar) and finding areas with the best climate (temperature, humidity, sunshine, air movement) are the objectives of action plan for interim stage. The natural mountain landscape, the sun, air, water give honey special qualities, therefore, at the final stage of market promotion, honey must acquire potential status as a unique product. For honey producers there are two optimal options for export. The first is the packaging of honey in a container of 0.1–0.2 l., and positioning it as an expensive premium product. High marketing costs are offset by high added value in the supply chain. The second is the delivery of honey in large containers of 20–30 l., for further packaging, already in the territory of the buyer. An attractive choice for honey producers with guaranteed product sales and high profitability of sales. Research results increase honey production up to 30% and export volume up to 7%.