Subject: Re: Marketing Your Honey Crop

From: [email-masked] (Andy Nachbaur)
Date: Fri, 5 Apr 1996 13:45:00 GMT

*FYI* Posted in the B-List.
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KJ>From: Kirk Jones <[email-masked]>
  >Date:         Fri, 5 Apr 1996 08:27:59 -0500
  >Subject:      Re: Marketing Your Honey Crop

KJ>Giving the fact that the proceeds from marketing our honey provide us with
  >the funds to continue beekeeping, I am interested in the very volatile
  >market we are selling in.

Hi Kirk,

The reports of "sales" coming to this office do not indicated a volatile
market, but do show a rising world market due to the demand for honey
exceeding the world supply. At the same time world disposable income
is increasing production of honey is decreasing. This was apparent to
most by mid season 1995 in the USA.

The price asked and paid for off shore honey has been increasing since
last fall when it was realized that off shore production from several
major areas of the world had not come up to expectations including the
US production. It is expected that until the 1996 crop size is known
that the honey price will continue to increase and then level off,
hopefully above the $1.00 range. Maybe between 1.10 to 1.25, with off
shore supplies just below $1.00 fob port duty paid.

KJ>We just got offered .95 a lb. and I have reports of better that a
  >$1.00/lb.paid on loads. Just three weeks ago we sold a load at .85/lb.

I know one Texas producer who sold two loads of this years honey last
fall at $.70, he is delivering a clean up load this week of last
years honey at $1.10 and will still deliver the two loads later on this
year of 1996 production at $.70, he is a happy camper.

New crop Orange Honey is moving at over $1.00 per pound. Reports are
that the Florida Orange Honey crop is spotty. Old crop from various
areas of the US as of this week has reached new all time highs to
beekeepers at $1.10. Off shore and SA prices are quoted as high as $.97
cents.

KJ>Our biggest problem is trying to get the price up in the supermarkets. If
  >we priced our honey in the stores based on .95/lb. honey, we would be far
  >above the rest of the pack. It's tempting to sell off all our stocks at the
  >wholesale rate and quit packing. I have found that packing honey is not
  >very profitable.

Price increases are always a problem for all honey packers regardless
of size. Historically they have been easier to pass on to the
producer.<G>

One large US domestic honey packer was forced to turn to SA (Argentina)
with purchases of 4+ million pounds earlier this winter over their
normal purchases of 100% domestic honey. The large co-op packer in the
US expects (hopes) to return $0.80 cents to their members for the 1985
crop.

KJ>What effects are the increasing honey prices going to have on consumer and
  >industrial users? It would be good to see some stability.

Major packers have already increased their wholesale prices and the
shelf prices are two dollars or more per pound reflecting today's price
in many areas.

What the future foretells is anyone's guess. For the 1996-97 honey
marketing season in the US it is up to the producers at what price
they need to bee happy. The US beekeeping industry has always been
different then any other commodity group. "We have always been able
to resist prosperity." It has always amazed me in talking with
beekeepers during periods of increasing prices that you will find many
producers complaining about prices being too high. These are normally
those who have sold earlier on a upward moving market. I am sure the
average price paid for the 1995 crop will exceed the price the majority
of beekeepers sold at during 1995. For the first time in the history of
honey production in the US the early market for honey is at one dollar
or more per pound.

This is still way below parity using any of the formulas. Price the
replacement cost of your existing trucks and equipment over ten or
twenty years.

My advise to most beekeeper packers: SELL high now.. Blame it on the
Vampire Mites, or Bee PMS USA, or honey producers with MAD COW symptoms,
but sell.
                          ttul Andy-

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(C)Happy Easter! (U)Happy Passover! (UK)Beef Producers, tough luck!
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