Promotion of rural income generating activities continues to gain widespread support in
rural development discourse in developing countries. Honey production has been identified
as having the potential to provide employment and reduce poverty among rural households in
Nigeria. This paper analyzes the economics of honey production in Oyo state, Nigeria. The
analysis builds on survey data collected in 2006, from selected beekeepers in five local
government areas of the state. The result indicates that honey production is very profitable
with a gross income of 890 naira per litre (US $7) and 4888 naira per man-day (US $ 41) on
average. Econometric analysis shows that number of hives, labour and fixed assets have
significant impact on honey output. It is recommended that appropriate policies should be
targeted at encouraging the participation of rural dwellers in beekeeping and providing
accessible credit to beekeepers to reduce poverty and foster rural development.