Bees at work: the impact of beekeeping on household agricultural income and the economy in Ethiopia

Abstract

Managed bees are increasingly used for income generation in Africa; however, their economic impact through pollination services remains underexplored. Using five rounds of survey data from Ethiopia, we estimate the overall and pure external effects of managed bees on household crop income. Results from the preferred econometric model show that households living within a 5-km radius of a beekeeper experience about 12 per cent higher annual gross crop income (about US\$120), while the pure external benefits are slightly lower at 10 per cent. We also find a statistically significant intensive margin: an increase in the number of bee colonies (distance to the nearest beekeeper) is associated with an increase (decrease) in gross crop revenue. Managed bees are also associated with higher crop prices. A back-of-the-envelope national estimate suggests that managed bees contribute roughly US\$940 million annually, around 4.6 per cent of Ethiopia’s agricultural GDP. Managed bees could provide relief against declining wild pollinators.