Honey Co-op Buzzing
in Chicago

Urban farming co-op also provides job training for former inmates, others

By Kellen M. Henry

Editor’s note: This article is provided
courtesy Medill News Service at
Northwestern University.


cracked and overgrown concrete slab on an economically depressed block of Chicago’s west side wouldn’t seem like an appealing place to put down roots. But to urban beekeeper Michael Thompson, the deserted stretch of a former Sears Roebuck and Co. parking lot held the promise of sweet returns.

Over the past seven years, the Chicago Honey Co-op has become one of the largest urban apiaries in the country, while fostering community engagement and job training for residents of the economically distressed North Lawndale neighborhood. It hasn’t always been easy for the co-op to fulfill its mission and turn a profit — especially in the unpredictable climate of northeastern Illinois — but Thompson is quick to credit strong support from the community for the co-op’s survival.

Chicago Honey is a comparatively small operation. While most beekeepers rely on about 300 hives to support themselves financially, the co-op “bee farm” had about 80 producing hives last summer. The average hive yields about 40 pounds of honey beyond what the bees need each season, but some hives can produce much more — or nothing at all.

“We pretend to know what’s going on, but everything sort of happens to us,” Thompson said in August, six weeks into the summer harvest. “It’s been delicious. I think we’ll have a full crop, but it remains to be seen how the fall crop will be.”

Chicago Honey had an ample summer harvest, but it wasn’t quite as bountiful as Thompson — a perpetual optimist — had hoped for. The unusually cool summer meant a longer nectar flow, but frequent rains also caused the bees to stay inside more.

The co-op, which has about 35 members, sells its honey at a number of Chicago farmers markets, in addition to local stores, restaurants and on the Internet. Through its website, the coop charges $9 for 12-ounce jars of its honey, with bath-product packages ranging from $10 to around $50.

The co-op had sales of about $60,000 in 2007 and it estimates that it made about the same in 2008, thanks to about $30,000 in grants and donations.

“What we’re supported on is amazingly low,” says Sydney Barton, a co-op member who helps with the coop’s business and marketing efforts. “A lot of small businesses might have better access to capital, but — partly because of our setup and mission — we don’t have more traditional lenders or investors interested.”

Lost hives hurt production
In 2008, the co-op lost several hives during the summer season, reducing the amount of honey it had for the year. The hive failures weren’t because of Colony Collapse Disorder, which caused an abrupt disappearance of bees in many parts of the nation last year. However, the co-op said publicity about the colony collapses drew local attention to its hives and the importance of bees in crop pollination (crops as varied as apples, almonds, carrots and alfalfa depend on bees for pollination).

Chicago Honey promoted its candles and body-care products to make up for the shortage of honey, but its on-line market didn’t grow as quickly as was hoped. Some of its purchasers, such as Marion Street Cheese Market in Oak Park, Ill., ran out of honey after the end of last season, and couldn’t restock due to the co-op’s shortage.

The store was eager to restock as soon as more honey became available, says Cristeana Bastian, retail and operations manager for the store and café. “People ask for them by name,” she says, adding that customers like the co-op’s honey because it fits with their ideas about socially responsible production and buying locally-grown products.

“I like honey, and if it makes me a little less miserable this August, it’ll be worth it,” says Andrew McComb, 23, who sampled the honey and bought a few jars from the co-op at a Chicago green market early in the season. McComb says the local honey bolsters his immunity against summer allergens, which he believes is because the bees use pollen from local flora.

The co-op is able to charge a higher price for its honey than retail grocery stores because the honey is local and chemical free, says Barton.

“I don’t think we would have been as successful as we are if the [local food] movement wasn’t growing strongly,” Barton says.

“Some kind of miracle”
A strong start during the co-op’s first season in the summer of 2003 helped Chicago Honey gain momentum. The founding co-op members started with 40 hives that year, but affiliations with nonprofit groups made it possible for it to save money.

“Once you have a hive, there’s no stopping it,” Thompson says. “We actually saw $28,000 [by 2004], and that was some kind of miracle for us.”

Since then, it has managed to stay in the black by hiring only a few employees, varying by season. The majority of its expenses are for bees and honey jars, Barton says.

Low overhead costs have also helped Chicago Honey thrive. Much of the production is done in warehouse space loaned to it by a co-op member. The old Sears property the hives sit on is owned by Partnership Independence Fillmore LLC, a land developer, which allows the co-op to rent the property at an affordable rate until it is ready to redevelop the land.

Mark Ross, one of the property owners, says he was attracted by the co-op’s focus on job training, especially for formerly incarcerated individuals. The co-op received some workforce development aid from nonprofits to teach the clients beekeeping and other types of agriculture.

“It was a request that didn’t seem to have an adverse effect on the property,” Ross says. “I don’t know that it’s the highest and best use, but I think it’s a great use. I liked the idea that they were doing job training and trying to give people a hand.”

The co-op also operates a community garden next to the apiary, where anyone can grow vegetables, as long as no chemicals are used because they could harm the bees.

Expanding on-line marketing
While optimistic about their co-op’s sustainability, members are looking for ways to improve profits by growing beyond the traditional markets. Barton has been working to increase the co-op’s on-line presence using social networks such as Facebook, Twitter and its own blog to maintain relationships with customers through the winter and tell them about events such as beekeeping classes. It also sells on its own website and through on-line artisan marketplaces, such as Etsy.com and 1000markets.com.

Chicago Honey’s sales have been increasing every month this year compared with the same month last year. Still, the co-op wants to grow so that it can pay its employees a higher wage while mentoring more trainees, Barton says. Eventually, the co-op would like to set up a parallel, nonprofit educational entity to help with the job training and to take the financial burden off the honey business.

The co-op is looking at new business endeavors, such as producing a honey mustard it has developed and other valueadded food products, but it needs access to a commercially certified kitchen space. The co-op is also giving more tours to school and agri-tourism groups, but these offerings come with additional pressures and require more employees.

For now, Thompson says the focus is on providing quality honey while staying on track financially and fulfilling its founding principles: to create a self-sufficient business, to produce a nourishing and delicious product and to reach out to the community with job training.

“This is may be my old-fashioned approach, but I’m not interested in a big loan or a big investment, and I don’t want to be in debt to make this business work,” says Thompson, who has kept bees since he was 12 years old.

“I get paid $10 an hour, but I’m not so concerned about that. This is a labor of love.”







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