Bulk honey prices and market outlook

[irwin harlton]

Odem international is currently offering 1.70 Canadian funds.Buyer is quoted as saying price will probabby rise to 1.80 can . come August. There is not much honey moving at 1,70 and there is not alot left to move

At current exchange rates and last honey prices I heard june 18 on the honey hot line, some packer is paying her a premium.............. prices were 1.45-1.50 on the honey hot line Packer probably figures it is best to not let US producers know what 's going on..... pay more for foreign honey and buy the home stuff cheaper

[jean-marc]

Yes , but everybody knows that Canada produces a premium product, hence the premium price to it's producers.

Jean-Marc

[Ian]

Thanks to all those canola producers!!

[jean-marc]

Sure, they too deserve a pat on the back.

Jean-Marc

[irwin harlton]

Jean-Marc said

"Yes , but everybody knows that Canada produces a premium product, hence the premium price to i.t's producers"

I whole heartly agree with you, but comparing US and recent Canadian prices, I think there is more than a recession and a Canadian 90 cent dollar in play.No doubt the new crop offerings will be at the present low prices,even with the shortage of honey.Same old story, packers will buy all they can before prices are reflected by the shortage.......... maybe the shortage is not as big as one thinks

[John Smith]

Taken over any ten year period in history, there has always been a shortage. It was the shortage of honey that prompted mankind to grow grapes to make his alcohol with. It was the shortage of honey that prompted us to develop glucose made from starch. Now honey has 1 percent of the sweeteners market, and you reckon there is a glut?

Once a few more people have read the book, The Honey Revolution, you can dismiss the term 'glut' from your mind forever. If we can secure 2% of the sweeteners market, we will have doubled the demand.

All talk of plenty in the honey world is a buyers spin. Why is it that one can 'always' sell it? The only thing that keeps anyone from buying unrestricted amounts of it is the availability of finance. How long since you read about honey being dumped at sea?

Mr. S. Kamberg has spoken too. http://www.skamberg.com/

Cheers,
JohnS

[irwin harlton]

HONEY MARKET REPORT
(Colony Collapse Disorder, Circumvention, & Crops)
July 27, 2009
Ron Phipps


Overall Comments
As this report is being written, the North American honey market awaits clarification of production of the: 1) important white clover and sunflower crops in South and North Dakota and 2) Canada’s honey crop. Given the sparsity of white honey from the traditional major honey exporting countries, with China excluded due to prohibitive antidumping duties imposed by the U.S. Department of Commerce on Chinese honey, the success or failure of the honey crops in the northern honey producing areas of North America will have a major impact upon the price tendencies and availability of honey, especially white honey.

The American honey market is witnessing the converging influence of two major concerns: 1) growing long-term concerns regarding the viability of the global honey bee population, and 2) the emergence of a two-tiered honey market in America. Both of these concerns have generated an unusual degree of interest among beekeepers and packers, the media, scientists, the U.S. Congress and the governmental agencies responsible to enforce the rule of law in America’s international trade relations.

Colony Collapse Disorder (C.C.D.)
In recent months, there has been excellent media coverage of the continuing problems with the health of the world’s pollinators. One of the best descriptions of Colony Collapse Disorder (CCD) was broadcast on National Public Television (PBS—Nature; pbs.org) on July 26, 2009. http://www.pbs.org/wnet/nature/episo...l-episode/251/

This program described the nature of the problems, current research regarding causes and cures and the potential impact upon agriculture. There are approximately 100 crops that require pollination through insects. These crops include the major fruits, nuts and vegetables required for a healthy, anti-oxidant rich and balanced human diet. As both the scale of agriculture and the suburbanization of society have increased, natural pollination has declined greatly. Now approximately 1/3 of American agricultural production depends upon the honey bee to pollinate crops.

There appears to be a confluence of variables which are exacerbating the bees’ vulnerability to disease, including stress from the highly migratory practices of modern beekeeping, the mono-diet of bees under large scale agriculture, pesticides and climatic stresses. Most research scientists are coming to view the phenomena of bees disappearing from their hives to be a cumulative consequence of this confluence of factors. Concern for the world’s honey bees has deepened as increased awareness of the vital importance of bees, not just to the honey industry, but to agriculture more generally, has grown.

The Environmental Protection Agency (EPA) has established a multi-disciplinary team to investigate the cause and cures of colony collapse disorder. This illustrates the importance of the issue beyond the beekeeping community, since ¾ of the plants on the earth require pollination.

The Two-Tiered Market
Concurrent with stresses on bee colonies, we witness the emergence and entrenchment in the U.S.A. of a two-tiered honey market. This two-tiered price structure has sprung up in inverse relationship to growing quality and duty restrictions upon imports of Chinese honey. The price gaps inherent in the two-tiered market have become untenable for many honey packers.

There has rarely, if ever, been such growing unity among all levels of the American honey industry and from all regions of the country in favor of ending the circumvention of Chinese honey through various forms of non-dutiable “blends” and through illegal transshipments of Chinese honey through third countries. American beekeepers, packers, some importers, various exporters and governments are coalescing in unprecedented unity to stop the circumvention of anti-dumping duties and the illicit trade in honey that have created the two-tiered market that threatens the American honey industry. The U.S. Federal Government agencies responsible to enacting and enforcing U.S. antidumping law have been increasingly active and arrests for criminal trade in illicit honey imports have occurred.

Some governments have recently taken action. The State of Florida has accepted, as of July, 2009, a Standard of Identity for honey which may contribute to preventing adulteration of honey and the creation “blends” designed to circumvent antidumping duties. The Vietnamese Government instituted a Monitoring Program in May, 2009, one of whose aims is to preserve the integrity and reputation of Vietnam by prohibiting transshipment of Chinese honey. Even elements of the Chinese honey industry and government realize that this illicit circumvention is harmful to China’s reputation.

The American Honey Producers Association, The National Honey Packers and Dealers Association, The Committee for the Promotion of Honey and Health and many major packers have taken strong measures. Honey companies throughout the U.S.A. are contacting Congress and the media to urge more comprehensive and decisive action to prevent circumvention. Some lawyers have suggested Congressional Hearings to be held on these blatant and repeated acts to violate international trade law and circumvent the force of U.S. antidumping rulings. Also, some have suggested that the mass media and the appropriate trade journals need to be informed so that the collusion and criminality that underlie the gross price disparities that render fair competition impossible and threaten the survival of honest companies can be understood.

The aberrational patterns of honey imports, which appear month by month, are relatively transparent. Countries that produce minimal amounts of honey, according to official communications from their government and other sources, are exporting 10 times their production. Countries that shipped virtually no honey to the world a decade ago are currently shipping to the U.S. at a rate equivalent to 125 million pounds per year. Countries with tropical climates that produce 80%-90% dark honey, are shipping huge quantities of white honey. There are reports that Chinese honey has been illegally blended in third countries prior to export to the U.S.A.

The American honey industry is not the only industry threatened by Chinese honey. The Indian press reported in 2003 that Chinese honey was being smuggled through Nepal, that Nepal was a net importer of honey, not an exporter, and that no sanitary checks were being conducted on the honey imported into India. In 2005, Indian farmers feared “that cheaper Chinese honey imports have captured the wholesale market, leading to a glut” (Nov. 13, 2005, Thiruvananthapuram). Indeed, India, despite a rather intense trade relationship with China, has more antidumping suits against Chinese products than does the U.S.A.

Crops

United States
The size and quality of North American crops remains hard to assess, as this report is being written in late July. Weather problems and volatility nationally have been inconsistent and pronounced. California and Texas have suffered extreme and persistent drought, reducing normally substantial crops of sage, orange and buckwheat honey in California and tallow honey in Texas. Florida and the southwest, like the northeast, have suffered excessive rain, which harms the orange, tupelo and gallberry honey crops.

The Dakotas had ample moisture and healthy bees going into the early summer. But cool weather that saw temperatures fall to 49° in June delayed extraction and diminished prospects for a bumper clover crop. Beekeepers report many problems with bees as colonies are in some cases failing to build and in other cases collapsing. Everything is late and extraction in the Midwest, that would have normally begun in the first half of July, has not begun as August approaches. It will take ideal weather, an accelerated production period and re-invigorated bees to produce the bumper white clover crop that was anticipated when the Dakotas entered the honey production season with ample moisture.

Canada
Canada reports the same delay in the crop and that temperatures are very cold all across Canada as July ends. The prime honey production period in Canadian prairie provinces has been hurt by a late Spring and very cold mid-summer. Some agricultural experts predict a crop of only 30-40 million pounds unless weather improves. Ontario has been too wet and cold. The Jet Stream has played havoc producing autumn weather in summer.

Argentina
Argentina is between crops and, contrary to some rumors, the earlier assessment that Argentina’s honey crop was small and dark is correct. If there is some honey in beekeepers hands, that honey is not being released since Argentine beekeepers anticipate a firming market as consumption in the Northern Hemisphere increases in September through December.

Argentine exporters, like Brazilian exporters, are concerned that the huge bailout of the American financial system and the gigantic cumulative national debt burdening the U.S. economy will weaken the U.S. Dollar and cause commodity prices in general, and honey prices in particular, to rise.

Brazil
The severe floods of northeast Brazil have subsided and rainfall is normal. Honey is flowing again, and production presently is of dark and aromatic honey. Prices have shifted modestly as production has shifted from white grades to light amber and amber grades.

Vietnam
The total Vietnamese honey crop was about 20,000MT about 65% of which has been exported. Some higher quality and higher priced mono-flora honey may still come into the market in September if rains subside.

Vietnam has worked hard to improve quality and increase the level of beekeepers’ professional expertise. In May, several Vietnamese scientists from agricultural universities visited the bee lab at the University of California at Davis. The Vietnamese Government issued a formal circular to institute a Monitoring Program whose aims are to: 1) improve and standardize quality and 2) prevent circumvention of Chinese honey through Vietnam. Barbara Sheehan and James Phipps participated in meetings with the Vietnamese Beekeeping Association, the Vietnamese Ministry of Agriculture and the U.S. Embassy in Hanoi to encourage the establishment of this Monitoring Program. Officials of both governments and the honey industries of both countries welcome this important step to ensure fair and legal trade.

Conclusion
Circumvention in the American honey market has become the most decisive factor in determining prices of honey, who dominates and who survives or fails among producers, packers, importers and exporters. Correspondingly and consequently, the opposition to the collusion underlying circumvention has become unprecedentedly broad and deep. This problem has to be solved if the positive potentials for the honey industry are to be realized.
pps report

[irwin harlton]

The chances now of a normal or big honey crop in canada and the US are next to nil....... just my opinion.............. the next question how will and how much will this influence the price
With the market firmly controlled by 5-6 major buyers who together hate competition on prices and want market share filled by low priced circumvented chinese honey, who's going to be the first packer to offer a good REALISTIC price?

[The Honey Householder]

First 10 ton pulled, packed, and sold. Price is up from last year by $.15. The crop is late or going to be short by a 1/3. I can't keep honey around. Maybe I'm selling it to cheap. What is raw honey in the bucket selling for.

[John Smith]

Who will pay bigger prices? The public will! Especially in Florida!

I don't know how the middle men are going to fare. They know that putting up prices will not generate more honey in the short term, so yes, they are running a closed shop, albeit in an unofficial way. It does appear that they are very unwilling to break ranks with the brotherhood, especially as there are so few of them.

I am promoting the small time packers: The beekeepers who sell at markets: The jam makers who work the markets but want to add honey to their line. These are the people who can and will pay better prices.

Obviously the survivors in the big packer class will eventually come to the party. They always have. Honey would still be 5 cents per pound if they hadn't have done so in the past. But it sure looks like it will only be after much kicking and screaming and delaying the matter.

Their biggest trouble is the rapid and savage rate of increase. If you double the price of the honey, you halve the amount any one enterprise can buy in. Bankers are not very prone to encourage honey stockpiling. This is their downfall. They figure it should be produced on demand like so many other things are.

The last big rise (2003?) was because they all had supermarket contracts that they were obliged to fill ------------- at any cost. This hurt many of them, quite seriously. They may not have fully recovered yet. For sure, they would have been much more wary when entering into such contracts again.

The banking crisis could not have been resolved until after the shock of loosing a few banks. Maybe only the loss of a major honey packer will break the deadlock. How much credit are you allowing any one of them to have at your expense? Some beekeepers may go down with them, if it happens. It is a cruel world.

Too many eggs in one basket was always considered a risk. The broader your market the safer you are. Sorry 'bout that. It was so nice to just put your honey on the truck and wave good bye.

I anticipate honey following gold, with a daily fix on prices, and no delivery on credit. Money for honey or no sale. It is the only way to protect each party from the regrets and losses of rapidly gyrating prices.

The bigger the concern the more tightly they manage their cash flow. My town council even lost a slug of money in the stock market......... yes, they cannot help themselves but try to glean every cent they can out of their cash flow. I don't know how the big honey consortiums are managed, but the bigger the enterprise, the bigger the problems.

Anyway, the real question is: What Honey?

Cheers,

JohnS

[irwin harlton]

from http://www.apitrack.com/index_en_open.htm

2009-07-30

MEXICO- HONEY PRICE INCREASE
Due to the climate factor in honey production has dropped considerably, not only in Mexico but worldwide, evidenced by the fact that honey prices have risen, from 22 pesos (US$ 1.66) last year at 38 pesos (US$ 2.86) today, so it is necessary to produce more honey as Europe and Argentina are in great demand. Marco Antonio Muñoz, president of the National Association of queen breeders, reported that the honey is exported to Europe, comes through Hamburg and Mexican honey is a basis for the formulas of commercial honey is sold in Europe, as the honey that is sold there is a blend of different honeys from various parts of the world.

[Ian]

>>It was so nice to just put your honey on the truck and wave good bye.


Thats the basis of most all agriculture. Its a system that works very well and on a world wide basis. It employs hundreds of millions of people, and allows food to flow all over the world in a consistent basis.

For a fellow like me to start marketing most all my production would maximize my labour and capital resources, which greatly increases my risk.

Value added is fine and dandy, small time processors is also great, but you cant simply ignore the consumer masses and our current system of production, processing, and distributions networks,

[John Smith]

Very true, Ian, but how do you go when they don't want to reward you for your product?

Can large operators alone hold the industry together? Can you guys pollinate all the small time vegetable growers?

Any culture that does not cater for new blood, younger entrants and small operators has lost its creative potential. Like a dying tree, it will fail eventually.

If maxi sized operators were keeping up with the demand, they wouldn't be having to outlaw diluted product in Florida.

Big operations go out of business as surely as little ones thanks to their large turnover. Turnover is a goddess of profitability when she is showing a profit. But when profit creeps over the line and becomes a loss, turnover is then a deadly enemy. Big banks and big insurance companies, big supermarkets and big honey operators can crash spectacularly. Where will the industry be when our current (aging) crop of professional market contributors retire?

In every vocation their is always a small percentage of folk who can rise high and be shining lights. All power be to them. We need them desperately. If it were not for a few top catwalk models hitting the headlines now and then, the rag trade would not be able to coerce enough young talent to keep the industry going. But there still has to be some payola in it for the less talented, otherwise that industry will die.

Unfortunately, the death of the honey industry seems to have been promoted by big business, big pharmacy, big banking and big government for thousands of years. And yes, a gullible public are always keen to embrace cheap substitutes for everything. And all that collectivism has built great towers and conquered the moon............... but the burgeoning (both by count and by body mass) of our population now is forcing us to wonder how much longer we can continue to feed ourselves, especially without the help of the honeybees.

With two thirds of most modern societies now overweight, and at least one third actually obese, the poor spindly legs of the remaining workers that are supporting us must be looking wobbly.

The amount of honey (and all foodstuffs) that never makes it to the statistician's note book in massive. In those times when the little people run out of honey, the number of customers flooding into the remaining vendors is enormous. It is such a powerful wave it is embarrassing even for the system operators. It is the large honey producers that create the statistics and the little producers that create the waves!

All Hail to the upcoming wave of backyarders now arising. The big boys may be the bones of the industry, but the little people are the muscles!

Lets move it and shake it!

Cheers,

JoihnS

[Ian]

Well, I guess so John, if thats the way you feel about our current model of agriculture, thats your opinion,

I just dont see things so dire

I see a model working very well

And who best tell you this, the consumers. They are supporting this model overwhelmingly.

A few big guys go broke, as you mention,
will be replaced with a few more big guys
backyarders will not and can not fill that tremendous void,

I understand what your saying, I think,

>>Any culture that does not cater for new blood, younger entrants and small operators has lost its creative potential. Like a dying tree, it will fail eventually.

your expecting a coming crash in our current agricultural model,

I m not going to bank on it

>>Ian, but how do you go when they don't want to reward you for your product?


Thats been a part of farming for at least 100 years,
If there is one thing that hasnt changed in farming over these last 100 years, its producers not getting what they need for thier product

[Trevor Mansell]

John ,
The big players in the Bee Buisnesses in the US make there money on pollination not honey production. Wich is one reason there is a shortage of honey . As far as blended honey in Fl ,its a packer that is bringing it in to make a quick buck . Backyarders are great for public relations , but we will see how many of them stick with it once they find out what it costs in time and money to keep a beehive alive.

[jean-marc]

So what's the current price of honey paid to producer?

Jean-Marc

[Beeslave]

Honey hotline has on 6-19: Nebraska $1.38 lbs paid to producer and in Manitoba $1.75 canadian paid to producer(118 drums).

[Beeslave]

I've been getting $1.65- $1.75 on small lots( less than 5 drums each sale)

[The Honey Householder]

Raw barrel honey $1.65 under 10 ton
Raw bucket honey $1.75 under 10 ton
Orders are back up. I have 32,000 pounds of bulk honey back up.
I'm a second generation comm. beekeeper and have never had honey orders back up. I've got my work cut out for me this week. If you are one that is needing honey you better buy it before Oct. I try and keep a semi load or two for the next year. This may be the first year I don't. I see the price hiting $2.00 by the holdays, if there is any around.

[Ian]

>>$1.75 canadian

That sounds about right,