http://apitrack.com/noticias-607_en_news.htm. .................this should drive prices higher
http://apitrack.com/noticias-607_en_news.htm. .................this should drive prices higher
Last edited by irwin harlton; 03-08-2009 at 02:16 PM. Reason: info added
increase from 7.70 to 8.0 in Argentina pesos, 1USA dollar = 3.5576 pesos, price is per kilogram
So translated into American 8 pesos per kg at the rate Irwin was quoting equals
$U.S.2.25/Kg or $1.02/lb. That's price paid to producer I believe. It wasn't that long ago I remeber Irwin posting 6.30 pesos per kg. That's about a 25% increase in price in less than 2 months. Hmmm, makes you wonder.
My honey buyer was mentioning the trade of honey is steady at 1.5$/lbs Canadian, and there have been honey trades of larger quantities of white honey for up to 1.75$/lbs Canadian.
We are sitting in a bull market right now, with stronge fundimental support.
Its going to take the next productive season to break this trend, whens the next significant honey crop reported to come in?
Ian Steppler >> Canadian Beekeeper
Northern hemisphere crop, july august by my way of seeing things.
I am not sure what this price puts Argentina honey at, say landed in New York, but the packers are holding their cards close , seem to be feeding themselves hand to mouth , and are going to buy where ever is the cheapest, and the cheapest last fall and now seems to be USA and Canada........... panic buying mode has not set in yet, due probably to the economic conditions........ haven't heard of any downturn in sales from any sellers.... Canadian broker figures there is not a lot of honey left in Canada
>>Northern hemisphere crop, july august by my way of seeing things.
So if the Southern hemisphere has already shown all its cards, and the next crop to come in July, we are looking at May June being the next significant cropping forecast to influence the market place. How about Chinas honey crop, when does there next crop come in?
Is Chinese incoming honey being held back? Or have they seen a smaller crop aswell?
I know most of their wheat producing provinces have experienced major dryness. So much so there wheat production forcasts have been almost cut in half. I would have to assume that would reflect on their honey production within that area, and its a big area. Is there any mention of this within the honey market news?
Ian Steppler >> Canadian Beekeeper
Thursday, March 12, 2009
World Honey Market Report by Ron Phipps March 2009
World Honey Market Report by Ron Phipps January 2009 Click here.
Ron Phipps Market Update
February 3, 2009 Click here.
Markets have become , shall I say volatile.............canadian dollar went from 1.25 US to 1.22 on friday............ just how weak will the US dollar become????????
and over 1.50 for Argentina 85mm...........maybe their trying to sell that dark stuff too cheap lol
Last edited by irwin harlton; 03-22-2009 at 08:47 PM. Reason: more info added
the cheaper food as a result of a falling US dollar will create more demand and higher prices
correct or wrong??
If so the falling dollar doesn't help the price of honey it hurts it??
Wrong. If chinese honey does not change in price, then the packer who purchased chinese honey say at $1.00/lb (I'm assuming he has converted his US dollars into chinese currency and paid for the honey in chinese currency). Today the same packer wants to purchase more honey but his US dollar is now only worth 90 cents because in the drop of the currency value. If the price of the chinese honey has not changed then the US packer has to come up with about 10% more money for the same honey.
Measuring currencies against each other will drive one mad. When there is no fixed value in anything, what does one compare to? The French use the word, 'numeraire,' meaning 'that by which one measures all else.'
Unfortunately we commoners are programmed to measure everything by our local Legal Tender. It is a trap and we must quit it. You are playing hard ball against experts when you try to beat the currency markets.
When all of the corks bobbing up and down in the ocean start claiming to be the highest one, or the ONLY one at mean sea level or the one closest to hell, you can pretty much say they are all lying.
Altitude in China is not measured from mean sea level. It is measured from the paving outside the Imperial Palace, which is not that far removed from sea level, but obviously still above it.
The is one caution that applies to ALL transactions known as 'trade.' It is called, Caveat Emptor.
There is no such thing as a level playing field. If you are dishonest, you rob banks, but if you are honest, the bank robs from you. Welcome to the real world. Always deal with someone sillier than you are and you will make easy money.
And remember the two great rules:
1)Never give out everything at once!
John, I would love to know how Capilanio can buy Canadian bulk honey ,ship it to Australia, blend it with supposidly Austrailian honey, ship the packed product back to canada or north america and still be cheaper than any Canadian packed honey on the shelf......... the wonders of cheap world trade and shipping or maybe a little cheap chinese honey involved somewhere......... this big public owned packer didn't get to be big by being Mr Nice guy.... and his huge losses the last couple of years should make him even more cautious....... maybe all the money being made is in the exchange rate on the aussie dollar?sOME VERY STRANGE THINGS HAPPEN IN THE hONEY INDUSTRY
Capilano is not a private company. Profit on that particular line of honey may not be their sole motivating factor. Capilano (in my humble opinion <imho>) is being groomed up to profit from a coming surge of interest in the world of honey............ and that profit is not necessarily to come from selling honey, it will come from selling shares. It will eventually be crashed as a hollow shell after the manipulators have siphoned off all its assets and milked the gullible public who will eventually own all the shares. You have seen the white ants eat many companies this way, I am sure.
Someone is slowly buying up all the shares from all the original shareholders, who incidentally were beekeepers, as it was built to be a producer owned enterprise. However, once the founders retired and the business too aged, it fell into the hands of the managerial cult, who only know how to rape businesses for profit, not love them for their creative potential. The movie “Pretty Woman” was all about this type of mentality. The sex in that movie was just the brocade gown it was wrapped in.
If carbon credits became a reality, such honey ‘laundering’ would soon be revealed as having far too high a carbon footprint. Such a reality could upset a very great many enterprises, so there is no guarantee that the best of these managers will succeed in their efforts to make off with a nice severance parcel.
Capilano has as good a chance of succeeding as any, (imho), owing to the very high degree of credibility and hardnosed reality there is in the honey industry generally as well as in that particular brand name. Their shares should be easier to merchandise than their honey, as people would much rather have some paper assets for their hard earned money than pay a little extra for some good honey.
Nearly nine percent of wages paid in Australia is compulsorily kept back from the worker and invested in retirement funds for them. We call it Superannuation in Australia. This creates a massive flood of capital looking for a safe place to be invested (yes, every payday), which of course makes the stock market shine. Already for years now, there is a scramble on to create enough paper companies to issue enough stock to absorb this flood of capital. One ‘public’ company was floated to operate brothels…………….. Its shares soared the first day it hit the market. I can’t tell you just what happened after that as I have not followed its success or otherwise (some of those girls could be sitting on a fortune now!). But the average company life (publicly listed) is only about ten years here. So you can see why a company with the sound grounding of a honey consortium (now having grown to be an international one) and also one with a contracted supplier base, almost a psychologically captive one, will fly well once all the shares are in the right pockets.
Capilano also pack cane sugar products. You are welcome to make whatever you like out of that. But honey lost its edge a hundred or more years ago owing to there being more profit in factory sugars, so maybe the Golden Syrup (as we call it here) is carrying the company while they make losses establishing their overseas markets for honey. No doubt you have heard how difficult it is to dispose of such a massive glut of honey each year!
A considerable amount of Manuka honey is imported into Australia too, often to mix with our local equivalent but one which didn’t get the leading edge on the market as far as the naming game goes. Our Ti Tree honey originally was licensed under the trade name, Medi-Honey, but that brand and the company that owned it was sold by Capilano to the Kiwis, so the international wonders of how the lord does brings things to pass never seems to end, aye?
If you really want to know how strange this honey industry is, you need to read that book, The Honey Spinner, by an Australian author, Grace Pundyk. Honey is so primary, so basic, and yet so magical it is almost in the class with romance and witchcraft and the Tales of Neptune. Lunacy is the word!
I wouldn’t worry overmuch about Capilano’s reported losses. No doubt they make some at times, but it is probably very much in their interest at the moment to be crying poor. Profits and losses at that level are easily managed for fun and profit. Do you remember Arthur Andersen? Spread sheets can be terribly confusing; there are simply so many columns!
Europe is so hungry for the word “organic” I am sure they would buy synthetic honey, even so labeled, if it also had the word ‘organic’ printed on it in large, gold and bold type.
Australia’s reputation of being so under-populated, remote, clean and green, gives us quite a strong standing as a honey marketer. Brazil is only coming into its own as an organic source owing to Australia’s inability to supply (imho). Their droughts are a few seasons behind ours, so it will be interesting to discover just what we can mix with our dark honey to make it fly in the world’s supermarkets. It may matter little from whence it came as long as a Kangaroo brought it. But don’t be alarmed if the shares go up in the companies that make mirrors, because we are going to be doing a lot with mirrors in the years to come.
If you find that absurd, just do some Googling and find out what the critics are saying about human-like insulin. I may write a few lines on that one myself soon. You will have to wade into pretty deep water to find those critics, mind you, as the big money is on the side of the product’s patent owners.
The bigger question still hangs over these super hospital-friendly medical products being developed and sold under brand names as Super Honey, bigger and better than just common ole honey. They could become our best market for real honey if it was required of them to feed their bees a smidgen or two of real honey, from floral sources.
Australia has not produced any great crop of white honey for many years now. What little we do get is sorely needed to lighten our Eucalypt honeys so a standard golden line can be maintained. So it is very convenient to be able to say, if cornered, "Oh yes, we did have to bring in a little bit of Canadian White for blending purposes. Was that last year, or was that the year before?" If you reckon that might not fly, just compare it with how convinced you and yours are that your honey is coming back to you!#@!$%. ........or did it ever leave North America? Capilano have a packing plant in Canada too!
Irwin, I decided long ago to leave the running of the world to the Gnomes of Zurich as it is far more difficult to fathom that project than it is to work out what the lord wants. So I just watch and listen (and spill my guts on occasion) and put my own price on my honey and wait and see if anyone will buy it. I am nowhere near generous and public spirited enough to sell it at or below my costs. Either I get paid as well as the girl next door, or I don’t work.
Or, as our Prime Minister says, ………..Sorry, Sorry, Sorry, ………………….Thank You, Thank You, Thank You, ………… I Knew It, I Knew It, I Knew It, …………………….
PS: Please send our PM back home. His show here needs him.
Please stop blending light coloured honey with my dark stuff to make it more marketable.
The only question I get asked here is if the bees were near sugar cane , because that makes the honey darker and less flavoursome.
Not within 200km!
Even a good bee wont fly that far.
I like my dark(er) honey. I like the coolibah and the lemon scented gum even the stingy wilga. There is enough ironbark to lighten it up.
Keep your whites and extra whites away.
Market your Dark honey as organic/gourmet honey - charge a premium. It will fly off the shelves. Get a celebrity chef to love it! Even better.
Honey has variety - its like wine. No two seasons the same no two regions the same. It's the marketing thats crap not the product.
have parted company, remain closely tied in some marketing endeavours, Capilanio now packing its products in Ausssie land and shipping from there. Usually lowest shelf priced honeys have something all in common , a cheaper chinese honey content, and or adultration of the honey making for more profit for the packer
Last edited by irwin harlton; 03-28-2009 at 09:35 AM. Reason: more info
HONEY MARKET UPDATE
March 19, 2009
Ronald P. Phipps
The recent surge in honey prices from South America have caused many to ask why prices are rising so steeply and so quickly when the nation is under such economic stress. I think the rise is too precipitous. For example, we received offers from Argentina this week for combinations of honey that include 1 container of White 34MM, 1 container of 50MM, 4 containers of 60MM, 2 containers of 70MM, and 8 containers of 85MM at over USD1.50/lb., ex-dock. Shipments from Vietnam have been delayed and new offers are presently hard to find. Ex-dock prices East Coast have risen to about USD1.10/lb. Brazilian offers for conventional white honey have been reached USD1.50/lb. and conventional ELA honey USD1.40/lb.. These increases stand in sharp contrast to the low prices of all the Chinese honey that has been circumvented into the U.S.A. through one form of circumvention or another.
What is happening to cause such steep increases of South American honey prices is Europe is turning its attention to Brazil given the consequences of the severe drought in Argentina and the consequence absence of white honey. Yesterday, the Federal Reserve injected another astonishing U.S. one trillion dollars into the economy by purchasing a massive amount of Treasury Bonds. As suggested in earlier market reports, a dramatic increase in money supply portends both: a) de-value the U.S. Dollar and b) a change from deflationary pressures into inflationary pressures. The U.S. Dollar has now reversed its earlier strengthening and is weakening relative to all major currencies. Essential commodities such as petroleum and agricultural commodities are rising in price.
While people can suspend or delay purchase of luxury goods, people can neither suspend nor delay eating. Demand remains active and strong. This is the good news. Changes in currency valuations, including a significant strengthening of the Euro relative to the U.S. Dollar as the money supply of U.S. Dollar has increased is playing a significant role in the surge of honey prices from South America. Short and darker crops in Argentina, increased demand from Europe and the fall in the U.S. Dollar underlie what would otherwise be aberrational increases in the market.
added by me ............. Argentina has suffered in the past from its own high inflation and currancy devaluation plus the anti dumping duty which is included in to the brokers offerings. Offerings are not sales and current sales of US and Canadian honey are lower priced and the volume left to sell is definitely small
Last edited by irwin harlton; 03-28-2009 at 12:21 PM. Reason: more info
and the US dollar value in its index, show me getting a better return from a Canadian Broker than selling and shippnig directly to a US packer,....hmmmmmmm
Two possible reasons for this price disparity.
1 The broker is stockpiling in anticipation of future price increases,hardly likey or
2The broker is receiving a better price than me from the packer ,on account of the volume and the packer broker relationship
I can see why a packer loves these brokers, easy to pick up 10-20 loads from one entity than dealing with 20 beekeepers and besides they both belong to that exculusive club ,the National Honey board , which is funded by you and I.So the packers and brokers are close, or in bed with one another.This close relationship is readily seen when the reputable packer refuses the contaminated chinese honey but does not report this honey to the FDA,as it should be by law.That whole thing is futher complicated by the fact there is no clear definition of the product honey in US law
The packers do not want to offend this valuable buying tool
The packers think they really need these people and they probably do serve some usefull purpose like tits on a bull.The percentage of all honey sold by brokers,is probably quite high as compared to the amount sold by Beekeepers to packers.To me, I think of them as a parasite,perhaps maybe useful somewhere , but only looking after themslves and not really being a great asset to the industry from the producers side.I personally think in the present market,US, Canadian brokers are helping the packers hold down the price of domestic honey.
Just look at the Argentina offerings and the current packer offering's on domestic honey.... they are 10 cents apart
Last edited by irwin harlton; 04-05-2009 at 07:33 PM. Reason: more info etc