Success Stories/Lessons Learned Template: Babichi found an opportunity to fill the gap with honey

Yewalashet Yigezu, a coffee grower from Anfillo in Western Ethiopia, was inspired to upgrade beekeeping practices in her community after discovering a deep-dive apiculture value-chain study through the Ethiopia Sustainable Agribusiness Incubator (ESAI) project. The study revealed a significant gap in the country's apiculture industry, where beekeepers were destroying bee colonies, producing minimal output, and supplying low-quality products for low-end markets at trivial prices. Yewalashet realized that her fellow beekeepers were missing out on the high demand for organic and natural honey in the world market. With the technical support of Precise Consult International through the ESAI program, Yewalashet established Babichi Agroforestry PLC, a company aimed at enhancing the beekeeping industry in Western Ethiopia. The company's vision is to encourage beekeepers to get organized, collect crude honey in bulk from producer groups, purify honey and beeswax, and sell to both export and local high-end markets. Babichi secured a 447,665.00 ETB grant fund from SNV Ethiopia-ASPIRE project for the training of beekeepers and an input loan of 3.35 million ETB for the provision of modern production equipment for beekeepers. Babichi is the first honey processing company in Wollega zone of Western Ethiopia, an area known for its high potential for producing good-quality honey. The company serves as a model for bridging the gap between raw honey producers and high-end markets. Babichi provides local jobs for the community, empowers smallholder beekeepers, increases honey productivity in the region, and sells high-quality Ethiopian honey to the rest of the world. The company is preparing to participate in international market trade fairs, including Gulf Food in Dubai and Biofach in Germany, to secure export market contracts and sell to high-end local and global markets. Babichi's success story is a testament to the impact of the ESAI project, which offers business solutions to identified value chain problems in three select subsectors: sesame, honey, and dairy. The project selects and supports entrepreneurs and/or existing companies with innovative business ideas that contribute to the alleviation of value chain issues. Beekeeping is an important economic activity in Ethiopia, with the country ranking tenth in honey production and fourth in beeswax production worldwide. However, the quality of honey produced in the country is poor due to the lack of improved technology and sector coordination. Babichi's establishment and strategic linkage creation have paved the way for the company to secure funding and resources to support its operations. The company has rented a processing and packaging facility in Nekemte, Wollega Zone, and signed a 10-year lease. Necessary renovations and constructions have been made to meet international standard requirements for a bee products processing unit. Processing machinery has also been ordered from a local technologist who imports and assembles equipment.