Enterprise Budget: Honey Production BC Honey Producers Association March 22-23, 2019 Where thought meets action
Institute for Sustainable Food Systems Applied research and extension unit that investigates and supports regional food systems as key elements of sustainable communities. Multidisciplinary team Agroecology Food systems thinking Planning & Policy Natural resource management Education Resource economics Farm business management Community and household nutrition/health Where thought meets action
Website: http://www.kpu.ca/isfs/enterprise-budgets Where thought meets action
WHAT? Economic Budget Cash Budget Implicit explicit explicit costs costs costs Pro: covers all expected costs to Pro: inflow and outflow of provide a more general picture money of a business at a of the business specific period of time – is there money? Con: over estimation of costs Where thought meets action
WHY? – what can this budget tell you? Benchmark for entering this sector/industry Supplies for operation Cost and revenue projection Sensitivity analysis: yield and price Break-even analysis Where thought meets action
Assumptions Website: http://www.kpu.ca/isfs/enterprise-budgets 50-hive operation 15 extra hives as replacement Interest rate fixed at 5% Straight-line depreciation method Management time not included as a cost Where thought meets action
Honeybee Enterprise Budget, 50 Hives, Southwest British Columbia Sensitivity Analysis (Value of Production less Total Costs as Price and Yield Vary) ($ per 50 Hives) Decrease Increase 50.0% 25.0% 10.0% Price/pound 10.0% 25.0% 50.0% $4.00 $6.00 $7.20 $8.00 $8.80 $10.00 $12.00 50% 1,000.00 ($19,786.07) ($17,786.07) ($16,586.07) ($15,786.07) ($14,986.07) ($13,786.07) ($11,786.07) MINUS 25% 1,500.00 ($17,786.07) ($14,786.07) ($12,986.07) ($11,786.07) ($10,586.07) ($8,786.07) ($5,786.07) 10% 1,800.00 ($16,586.07) ($12,986.07) ($10,826.07) ($9,386.07) ($7,946.07) ($5,786.07) ($2,186.07) Yield (pounds) 2,000.00 ($15,786.07) ($11,786.07) ($9,386.07) ($7,786.07) ($6,186.07) ($3,786.07) $213.93 10.0% 2,200.00 ($14,986.07) ($10,586.07) ($7,946.07) ($6,186.07) ($4,426.07) ($1,786.07) $2,613.93 25.0% 2,500.00 ($13,786.07) ($8,786.07) ($5,786.07) ($3,786.07) ($1,786.07) $1,213.93 $6,213.93 PLUS 50.0% 3,000.00 ($11,786.07) ($5,786.07) ($2,186.07) $213.93 $2,613.93 $6,213.93 $12,213.93 Honeybee Enterprise Budget, 50 Hives, Southwest British Columbia Sensitivity Analysis (Value of Production less Total Costs as Price and Yield Vary) ($ per 50 Hives) Decrease Increase 50.0% 25.0% 10.0% Price/pound 10.0% 25.0% 50.0% $7.50 $11.25 $13.50 $15.00 $16.50 $18.75 $22.50 50% 1,000.00 ($16,286.07) ($12,536.07) ($10,286.07) ($8,786.07) ($7,286.07) ($5,036.07) ($1,286.07) MINUS 25% 1,500.00 ($12,536.07) ($6,911.07) ($3,536.07) ($1,286.07) $963.93 $4,338.93 $9,963.93 10% 1,800.00 ($10,286.07) ($3,536.07) $513.93 $3,213.93 $5,913.93 $9,963.93 $16,713.93 Yield (pounds) 2,000.00 ($8,786.07) ($1,286.07) $3,213.93 $6,213.93 $9,213.93 $13,713.93 $21,213.93 10.0% 2,200.00 ($7,286.07) $963.93 $5,913.93 $9,213.93 $12,513.93 $17,463.93 $25,713.93 25.0% 2,500.00 ($5,036.07) $4,338.93 $9,963.93 $13,713.93 $17,463.93 $23,088.93 $32,463.93 PLUS 50.0% 3,000.00 ($1,286.07) $9,963.93 $16,713.93 $21,213.93 $25,713.93 $32,463.93 $43,713.93 Where thought meets action
KPU – Commercial Beekeeping Program Where thought meets action
CONTACT ME Caroline Chiu Institute for Sustainable Food Systems caroline.chiu@kpu.ca 604-599-2538 www.kpu.ca/isfs Where thought meets action
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