MARGINAL VALUE OF A BEE

MARGINAL VALUE OF A BEE

It’s been well established by researchers and experts that a stronger colony produces greater pollination value. Joe Traynor, a preeminent pioneer of pollination, estimated in 1999 that an 8-frame colony will send out 7 to 10 times more foragers than a 4-frame colony.

Source: Randy Oliver's "2012 Almond Pollination Update", scientificbeekeeping.com

More recently, Randy Oliver’s analysis of data from Dr. Frank Eischen revealed that the marginal value of frame strength appears to be more linear—4-frame colonies provide half the value of 8-framers, and 1/3 the value of 12-framers. Still, Randy’s analysis indicates that growers are getting a bargain for strong hives and overpaying for weak hives. After poring over these studies, I wondered whether we could estimate the marginal value of a single bee. That is, how much pollination value does each additional bee provide? Thanks to some number-crunching from our intern, Dalia, we came up with a reasonably solid estimate. Keep in mind, this back-of-the-napkin analysis doesn’t account for important factors like weather variability, management methods or other costs of production.


CALCULATING MARGINAL VALUE

These numbers are from the 2011 season, the most recent complete set of data available. You may recall that 2011 brought a record yield at 2,600lbs/acre statewide, despite notoriously poor weather during pollination season. Fact: In 2011, about 1.5 million colonies traveled to California to pollinate 750,000 acres, producing nearly 2 billion pounds of almonds.

  • On average, each colony pollinated about 1333 pounds of nuts (2 billion pounds / 1.5 million colonies).At a price of about $2 per pound, each colony returned $2,666 in value.

Fact: An 8-frame hive contains approximately 14,000 bees.

  • Assuming an average strength of 8 frames for all 1.5 million hives, each bee pollinated 19 cents worth of nuts ($2,666 nut value / 14,000 bees).

Fact: The market price for an 8-frame hive was about $150 in 2011.

  • Growers paid about 1 cent for each bee rented (14,000 bees / $150 per hive).

Bottom line: In 2011, almond growers earned 19 times the value they paid for each bee. NINETEEN TIMES!! This number is insane. Imagine a manufacturer making a 94.7% margin on their cost of labor. That just doesn’t happen. Apple, the most profitable company in the world, makes a gross margin of about 21%. Amazon runs a 1.7% margin. This comparison is Apples to oranges (see what I did there?), but it almost makes sense if you look at the beehive as an uber-efficient pollination factory. 


FINAL THOUGHTS

​Now, although this breakdown could be substantially more robust, I think it’s important to start looking at pollination through this lens of marginal value. If Randy Oliver’s findings are indeed correct and the value of each frame remains linear regardless of the total number of frames in a colony, then the debate over stocking rate and frame strength is moot.

​The true value isn’t number of colonies per acre or average frame strength; what really matters is the total number of bees out foraging. 

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