Though rich in biodiversity, Yunnan Province is China’s second‑poorest region. To provide local subsistence farmers with a source of sustainable income, development economist Alia Malik created Shangrila Farms. The company produces affordable, pure honey in the region’s beautiful mountains, filling a gap in the Chinese honey market while positively impacting local communities. Building on a successful 2008 trial project in a local village, she plans to support local beekeepers and establish a plant for quality control and bottling over the next two years.

Why did you choose to start Shangrila Farms in the Yunnan province?

My mother runs a foundation in Yunnan province in a town that’s been named Shangri-La. It’s a very beautiful and pristine area, perfect for producing pure honey.

Most of the farmers I’ve met in the region grow what they eat. What they really lack is a dependable source of income for things such as school books for their children. To make ends meet, they go to the mountains and harvest mushrooms and wild herbs to sell. Teaching more farmers to keep bees will give them a sustainable product they can sell, easing pressure on the local environment.

So why honey?

Honey is frequently used in development projects around the world as a source of income in rural communities, but non-governmental organizations generally do not take the honey to market. What makes Shangrila Farms unique is that we’re taking care of the business angle by packaging, marketing and reselling the honey under our brand name.

You already worked on a trial project in 2008. What did you learn from this?

One of the biggest challenges has been people worrying about not being able to raise bees in cold places and high altitudes. We have benefited from a lot of great advice in addressing this issue, especially from the Institute of Apicultural Research at the Chinese Academy of Agricultural Sciences and Yunnan Agricultural University. We’ve also had to help the farmers understand the long‑term interest of the project and reassure them, since they’re taking on the liability of owning the hives.

What has been the most rewarding part of the project for you so far?

I love the creative side of it and working with people. And it was very satisfying in the trial year to taste delicious wildflower honey made by farmers who had never raised bees before.

Ultimately, what do you want to achieve with Shangrila Farms?

I really admire women in these rural communities who are finding creative solutions to everyday problems, like getting their kids to school. I want to support what they’re doing.

I’ve also worked with a number of bright young Chinese women who are interested in volunteering or finding more socially engaged careers. I think it’s useful for them to see a business that is trying to do more than just make money. While many people in China are profoundly interested in this new kind of business, there aren’t too many real-life examples. I hope that Shangrila Farms will serve as a model for other social entrepreneurs.

What are the keys to creating a business that aims to do more than just make money?

• Believe in what you do: if you love your product, everything else falls into place.
• Be brave: business is about taking risks. I’ve met a lot of female entrepreneurs who are willing to try something they believe will work, but they don’t know will work.
• Take a pragmatic approach: when I was in Malawi, I stayed in a hotel run by this wonderful family. They gave me a lot of advice. They started with a small guest house, then added more guesthouses one by one. This kind of step-by-step approach is very useful. Focus on where you can realistically be today, rather than where you’ll be in five years.
• Be patient and work very hard!

If you win, how do you see the future?

I see success. I see more and more small farmers making honey. I see Shangrila Farms becoming a household name as one of the first socially conscious natural food brands in China, with honey for sale in Beijing, Shanghai, Hong Kong and beyond!

Alia is coached by Lillian Zhang, INSEAD MBA 08 and Esther Sutter, Fellow Associate, McKinsey, on the optimization of the business model and the improvement of the financial projections.