Demand puts sting in honey prices
Global demand for our honey will increase prices at home more than a poor season says New Zealand’s oldest brand.
According to Airborne Honey, New Zealand’s oldest honey brand and one of the country’s most prominent exporters, honey prices in this country will rise this year but not necessarily due to a supply shortage or issues with the poor weather conditions beekeepers have experienced this summer.
“The crop this year will not be a driver of price increases, regardless of whether it’s a successful season or not. Prices will go up in New Zealand because the world price is driving it,” explains Peter Bray, Managing Director of Airborne Honey. “There is high demand for New Zealand honey on the export markets right now. New Zealand is a trading nation, an exporter of food, and has to deal with prices rising and falling in overseas markets. What we’re seeing with honey prices also happens with cheese and milk. Those fluctuations then impact local prices.”
On average, New Zealand produces around 12,000 tons of honey per year, with roughly half of that being exported to international markets. In the 2013 year to November, New Zealand honey exports reached a peak of 8,086 tonnes and $155 million, an increase of 13.5 percent in volume and 34 percent in value on the previous year. Both export amounts and prices have been steadily climbing since 2000.
Producers and consumers worldwide are experiencing increases in the price of honey – it is not unique to New Zealand. In 2000, average world prices for bulk honey were around US$1,500 per tonne. Over the past 4 years it has remained at around US$3,000 with a high of US$3,200 per tonne last year. This year there has been a significant rise to US$3,800 - $4,000 per tonne.
“Honey, New Zealand honey in particular, is becoming increasingly popular overseas, especially in developing countries, such as China,” adds Peter. “People throughout the world are recognising the taste and health benefits and are also starting to appreciate the difference between types and origins of honey more than ever before. Consumption of genuine, undamaged, quality honey from New Zealand is increasing worldwide and inevitably having an effect on our prices at home.”
Airborne Honey will be putting prices up this year but won’t have a clear idea of what the numbers will look like until the end of the season.
“In a couple of months from now, we will have a much better idea,” says Peter. “The crop is still being produced so the season is not over just yet. I’ve seen crops in February and March, especially with some of the longer summers we’ve been having. I’ve seen South Island beekeepers get 30kg out of a hive in the middle of February. The success of the remainder of the season will have some effect on the final price increase but still won’t be hugely influential compared to export market drivers.”
Peter also adds that the new Manuka honey standards that are currently being developed by the Ministry of Primary Industries, in consultation with the New Zealand honey industry, will also have an impact on honey prices.
“The New Zealand honey industry needs a set standard for Manuka honey as there are so many concerns about the genuineness of the product now, both here and overseas. These are concerns that could taint the reputations of other New Zealand food industries so it is vital that something is set in place to guide honey producers,” he explains. “Any standard that is introduced will inevitably reduce the amount of Manuka on the market as there is likely to be a large portion of honey that doesn’t comply. That will almost certainly lead to an increase in the price of genuine New Zealand Manuka honey, both here and internationally.”
Media release - Airborne Honey
30 January 2014
