REVIEW OF FEES AND CHARGES IN THE APICUTURE SUB-SECTOR

INTRODUCTION AND BACKGROUND

According to the Centre for International Forestry Research, 2008, Zambia offers a conducive environment for beekeeping: abundant forest cover and indigenous knowledge and skills. Trade in honey and beeswax provides up to 25% of total annual income for a good number of rural households. Certified organic honey, worth more than US$800,000, is exported every year.

Approximately sixty six (66) percent of Zambia is covered with woodlands and dry forests. Miombo woodlands, widespread on the plateau, are by far the largest forest resource covering 35.5 million hectares. The strong link between forests and traditional beekeeping creates opportunities for promoting beekeeping as an incentive for sustainable forest management. Beekeeping and honey are an important source of income for 20,000 rural households in Zambia. Seventy percent of Zambia’s beekeepers live in North-Western Province, where the sector has been recorded as the third largest employer in some districts. Nearly all beekeepers are also farmers, who increase their total annual household income by approximately US$100– US$400, selling honey and beeswax. In 2004, an estimated 400 metric tons was exported. All of the exported honey is mainly produced in North-Western Province.

The formal national trade in honey comprises an increasing number of processing companies, which supply honey in 350-500ml jars to supermarkets in urban areas. Among the formal honey traders are also the non-governmental organizations that buy honey from producers in their operational areas.

Zambian honey is favored on the international market because most of it is produced in relatively undisturbed environments and can therefore be classified as organic. Two large companies (North Western Bee Products and Forest Fruits Zambia Ltd.) export approximately 400 metric tons of certified organic honey per year.

An additional 200 tons is exported by several smaller companies. The main export markets for Zambian honey are the UK (55%) and Germany (35%). Other increasingly important markets are the Arab countries, the USA and the SADC region. Beeswax is used by beekeepers for baiting their hives, or sold locally as a floor polish and for making candles. Certified organic beeswax is exported by the two large exporters. Even though the data available dates far back to 2008, it does give a good picture of the apiculture industry in Zambia.

There are three public bodies that are involved in the management and regulation of honey and honey products. These are the Forestry Department, Ministry of Livestock and Fisheries and Local Authorities. The Department of Forestry is responsible for managing, protecting and conserving forests in order to ensure their sustainable utilization and management for socio-economic development.

The Forest Department is established under the Forests Act No. 4 of 2015 which provides for issuance of a conveyance permit, to allow the holder to convey forest produce, among others.

The Ministry of Livestock and Fisheries is responsible for issuing a phytosanitary certificate for honey and honey products while the local authorities collects revenue on the produce in order to provide social services to communities within the district.

PROBLEM STATEMENT

The Regulation of Honey in Zambia involves product certification done by the Ministry of Livestock and Fisheries. The product certification requires a laboratory analysis for SPS reasons in order to meet product requirements on the international market. Zambia’s honey is exported to the European Union (EU), USA and China in addition to regional markets.

The Department of Forestry is responsible for managing forests and forest produce in Zambia. The Department collects levies on various forest produce which includes honey and beeswax. The fees are contained in SI No. 52 of 2013. The SI provides for ZMW9/kg of honey and ZMW9/kg of beeswax for extraction and ZMW13.5/kg conveyance for export.

In addition to the above fees, each local authority where the honey originates collects levies. Based on preliminary engagements with Kabompo, Manyinga, Mwinilunga and Ikelengi District Councils, the following fees apply: ZMW0.35/Kg in Mwinilunga, ZMW0.25 in Kabompo, 0.15 in Manyinga and 0.25 in Ikelengi.

The Zambia Apiculture Trade Association (ZAPITRADE) has complained that there are too many charges being levied in the apiculture (bee keeping) sector by the Forestry Department, District Councils and in particular (Mwinilung, Ikelengi, Manyinga and Kabompo), Veterinary Services Department and Ministry of Health. The Association submits that the charges have accumulated to the point of being excessive and rendering the apiculture subsector unviable and in danger of collapsing. The Association has singled out SI No. 52 of 2013 under the Department of Forestry as containing unrealistic level of fees.

Furthermore, ZAPITRADE has indicated that, the total levies are more than the total revenue any domestic trader or exporter can sell at. The levy on beeswax pegged at K270/bucket, which translates to K9/kg, is also more than the price of beeswax on the international market. Exporting companies also pay export fees per kg to the Ministry of Livestock and Fisheries on honey exports.

The Department of Forestry is unable to determine which honey is for exports and which honey will be sold on the domestic market when honey is being transported from other parts of the country to packaging facilities in Lusaka and further redistribution.

In addition, the fourteen (14) day validity period for conveyance permits is too short to enable conveyance of honey from a point of origin to the port of exit.

The Business Regulatory Review Agency has commenced a regulatory impact assessment on the charges and fees in the subsector by the Department of Forestry and Local Authorities.