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After having her first baby and becoming tired of government bureaucracy, Native Nosi owner, Mokgadi Mabela, decided to continue her family’s beekeeping legacy.
But with a twist. Instead of selling unbranded honey and doing everything cash, she is using modern methods to draw investors and expand her business. She talked to finweek about her business approach.
Why didn’t you get involved in beekeeping earlier?
My dad, Peter Mabela, is a beekeeper, as was my granddad, Erence Mabela.
In our culture, the boys traditionally take over the family business and I guess my father assumed the business would end with him since he does not have a son.
I was not keen on beekeeping, thinking it would not be able to sustain the kind of life I wanted to live.
So, after school, I did a BA in political science and international studies at the University of Pretoria.
I started working at the department of human settlements in 2008.
So why did you start Native Nosi in 2015?
Until then, I was always selling honey on the side. But my dad was struggling to meet the demand of his own and my growing client base.
I was also looking for a way out of the bureaucratic race after having my first baby, Khumo, in May 2015.
I could have continued with business as usual, selling unbranded honey as a one-woman show as my father and grandfather used to.
But I saw numerous advantages in starting a company.
The move helped to formalise the business by giving it a more professional image, allowing me to differentiate myself in the market and streamline business processes by, for example, allowing me to access a business bank account.
Why did you call the company Native Nosi?
Nosi is the Basotho word for honey bee. To me, Native Nosi represents pure, natural unadulterated honey products produced locally.
More than half of the honey in SA is imported (increasing from 476 tonnes in 2001 to 4 206 tonnes in 2017). Chinese shares of these imports have grown exponentially over time, representing more than 75% of these imports over the past couple of years.
There are two problems with imports: Firstly, some countries dilute the honey with syrup, resulting in the imported product being of a much lower quality than the SA product.
Secondly, all imported honey is irradiated, which destroys pathogens and robs the honey of its beneficial properties.
Where did you get start-up capital?
Start-up costs were low. My dad helped me get started with my own swarms, agreeing to put my hives with his and overseeing and harvesting them along with his.
I used the money I made from honey sales to finance my first hives and bought more as more money became available.
It is quite difficult to get a loan from the bank when starting a new venture, so I did almost everything cash as my dad and granddad used to.
What are your biggest challenges?
It is great not waking in the morning with that dreaded feeling that you are enslaved to the vicious cycle of the corporate world.
Yet, having your own business has its own challenges: You are never a 100% sure of your income and you need to constantly think of creative ways to boost sales and overcome financial “dry patches”.
I have overcome some of these challenges by making use of alternative ways to raise capital and by expanding my supply base to include other producers.
Where do you find forage for your bees?
The general problem with forage is not that there is a shortage, but that there are not enough secure sites where hives can be left.
Beekeepers suffer tremendous losses due to vandalism and theft. We are still quite small, so we have access to secure sites. It might become a problem once we have over a thousand hives.
Tell us about the alternative ways in which you’ve raised capital.
I raised R500 000 through a crowdfunding campaign hosted by The People’s Fund. I used the funding to buy 360 additional hives, bringing my total number of hives to 460.
The reward for those backing the venture is a net worth of R32.40 for every kilogram of honey harvested per annum from the hives they have funded for six years, representing an annual return on investment of 16%.
Last year, I took second place in an entrepreneur competition hosted by The Hook up Dinner, SAB and Standard Bank. I won R27 000, and used it to buy basic equipment.
This side of the business is very expensive – one settling tank or extractor costs about R20 000.
How does your business model work?
Since we do not have enough volumes to supply our growing demand, we also buy honey and honeycombs from seven small-scale farmers in Limpopo.
At the moment their honey represents about 40% of our sales volumes.
Our relationship with these farmers started in 2016, when we ran into a supply shortage due to drought.
We heard of a farm manager who had plenty of honey and he introduced us to six other beekeepers.
This was the start of a whole new ball game. We realised we could not just take honey from anybody, as inferior-quality honey could damage our brand reputation.
So we did hive inspections and ensured the beekeepers made use of environmentally responsible and sustainable beekeeping practices.
We have developed a good trust relationship. I know the exact origin of each batch of honey, be it blue gum, macadamia or avocado trees.
All the honey is sourced through the farm manager.
Honey sales are quite seasonal and not yet economically viable. So I also offer pollination services to fruit and vegetable farmers.
Pollination has a negative impact on honey production, but is quite lucrative and good for cash flow. It is also less labour intensive than honey production, where honey has to be extracted.
How do you sell your produce?
We have never had a formal marketing programme. Most of our clients were sourced via word of mouth.
We use various platforms to promote and sell our products and services, such as our online shop, website and Facebook, Twitter and Instagram pages.
We make use of courier services to deliver the honey.
While our honey is bought from all across the country, about 70% of our sales are generated around Johannesburg and Pretoria. We do not have enough supplies to feed the demand of large retailers, but do sell via a couple of fresh-produce markets and restaurants.
How has the company grown since you have started it?
We started out selling about 50kg of honey a month, which has increased to between 300kg to 500kg per month, including bulk and packaged sales.
Also, my dad and I used to do everything ourselves. My sister, Maite Mabela, has since become involved on the administrative and sales side while my husband, Moraka Mailula, is helping with daily operations and sometimes deliveries.
We make use of seasonal labour during the harvesting time and when we have to move many hives.
What are your plans for the future?
I was very surprised at the large number of subsistence beekeepers involved in the industry, who only keep two to three hives.
I hope to empower many of these beekeepers, especially in the Limpopo region where my family has their roots, through training, soft loans and by giving them access to a formal and secure outlet for their honey.
I would like to increase our number of hives substantially, as well as the number of emerging beekeepers that we source from.
Sourcing honey from other farmers will allow me to concentrate on the marketing and distribution of honey.
Your advice to aspiring entrepreneurs?
The majority of people are not self-starters. They tell you they want to do something, but want to be spoon-fed without lifting a finger to do anything for themselves.
If you are serious about starting your own business, take the leap and put effort into learning as much as you can about the field.
Take courses or do research at the library or on the internet. I attended several beekeeping courses to ensure I knew what I was doing even though my dad was a beekeeper.
The thing is that people, government and banks are much more willing to get involved or fund working projects than ideas.
This article originally appeared in the 30 August edition of finweek. Buy and download the magazine here or subscribe to our newsletter here.
