Raw honey prices continue to escalate with Light Amber honey prices starting
to escalate more rapidly. This was expected with the large price disparity
between Light Amber honey and White honey, and as Light Amber honey fills
the void for the short supply of White honey. There are reports of several
hundred containers of imported honey being held up by customs for possible
adulteration, and this has added to the supply issue.
The California honey crop, although better than last year, is still
projected to be below average. In the prime honey producing areas of the
Upper Midwest, conditions look favorable as rains have helped to relieve
some drought areas in that region. Things can change very quickly, but right
now weather conditions look favorable for a good crop. The issues that
could negate good crop conditions are:
Reduced forage areas as much more of this area is turned over to cropland or
is lost to urbanization.
Colony Collapse Disorder is becoming a bigger problem than originally
expected with more and more reports of heavy bee losses. Many beekeepers
will again opt to forsake a honey crop to rebuild their colonies for the
very lucrative pollination season.
Although expectations are for a better crop than last years' dismal 148
million lb. crop, we don't expect anything close to an average crop in the
U.S. The 200 million lb. average crops of a few years ago are probably
history as that number continues to drop, and 170 to 180 million lb. crops
may become the normal.
The Canadian honey crop is also expected to be below average, and prices
should mirror U.S. honey prices. Most of the 2008 South American honey crop
has been bought up by Europe as the U.S. found it difficult to compete for
that honey with our weaker dollar.
In summary, the raw honey price should remain strong through the end of this
year into 2009. Needed to stabilize prices will be more honey entering the
world market from Asian countries, but with many of these countries
utilizing their honey for their own needs, and with reluctance on the world
market to buy some of this honey for quality reasons, this will probably not
ease the supply issue. Not until raw honey prices reach a level that
reduces the demand for honey, will we see softening prices.
Report taken from this website. http://skamberg.com/