Economic analysis and honey production cost of beekeeping enterprises supported by IPARD program: case study of Van Province

The main objective of the research is to set forth the current social and economic outcomes of the activities of beekeeping enterprises that receive support from the IPARD I program in Van, to determine the level of technology-use, and to specify the number of hives to be supported by determining what should be the minimum production capacity. The main material of the study consisted of data obtained from the beekeeping enterprises supported by IPARD in Van. 94 enterprises receiving IPARD support have been chosen in accordance to "complete inventory" method. Neyman Method, which is one of the stratified sampling methods, was used for determining the sizes of 94 enterprises receiving IPARD support in terms of number of hives. The sample volume was determined by the number of hives, and calculations were made with 95% confidence interval and 5% margin of error. According to number of hives used in production in 2016 production season, there are 17 enterprises of 0-100 colony size, 22 enterprises of 101-250 colony size, and 55 enterprises of 251 and above colony size. The average gross production value is $45,931.08. As an average of enterprise, the honey production variable cost per hive has been determined as $49.21. In the examined enterprises, annual total fixed cost has been as determined as $28.07. Gross profit per enterprise has been determined as $22,902.47. Net profit per enterprise has been determined as $20,684.16. In cost matrix, the ratio of variable costs is 63.68%, the ratio of fixed costs is 36.32%. In the examined beekeeping enterprises, the cost of one kilogram of honey is determined as $4.16 as an enterprise average. The examined beekeeping enterprises have earned $1.82 in return of $1 expense hence the relative profit was 1.82.