In southwestern Ethiopia honey is a non-timber forest product that provides income for many smallholders. Some of these beekeepers supply their honey under contract to a company that markets their organic honey internationally allowing them to access premium markets. Since both production and marketing depend crucially on the forest, both smallholders and the company have an interest in preserving the forest. An important question is whether smallholders also benefit economically from supplying under contract. The objective of this study is to examine the contribution of participation in contract supply of organic honey to beekeepers' income levels in the Sheka zone in southwestern Ethiopia. Results indicate that contract supply improved quality of honey delivered, the prices beekeepers received, and total honey income per household. The findings illustrate the potential of contract supply of forest product for sustainable management of forests.
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