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Adam Boot

Honey Price Collapse

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7 minutes ago, jamesc said:

So what  is the answer Mr yesbut ?

"Just f....n stoopid I suppose !

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4 minutes ago, yesbut said:

"Just f....n stoopid I suppose !

I hear yah brother, but what else am I gonna do ..... cruise round like a yobbo on a bike with ape hanger bars ?

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7 minutes ago, jamesc said:

I hear yah brother, but what else am I gonna do ..... cruise round like a yobbo on a bike with ape hanger bars ?

No, it wasn't aimed at you and I'm sorry if you took it to be. I'm sure if push came to shove you could always come up with a mob of deer to flog to build up your tax bill to help with my super... But such questions always bring back the vision of that angry concrete truck driver. 

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28 minutes ago, jamesc said:

 

As an aside we had a late breakfast at a west coast road house this morning and jaw dropped as a bunch of  throbbing BMW's cruised past ......  one day i need to live the dream !

They're usually tour groups who arrive in Chch and hire bikes and a guide.. Mrs yesbut (she has her own bike) & I are day tripping Molesworth/Kaikoura tomorrow

Edited by yesbut
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15 minutes ago, jamesc said:

I hear yah brother, but what else am I gonna do ..... cruise round like a yobbo on a bike with ape hanger bars ?

go for  as much Honey as you possibly can using what available resources you have without incurring more costs than you can afford
Put it in the shed.

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Talking about that stuff, the figure I've been hearing of what it costs to run a commercial hive these days is $400 a year.

 

I know my own costs are a lot less than that, i don't even drive a cruiser LOL. I'm thinking people just spend that kind of money, because they can. Maybe now with lower honey prices, they can't. Instead of wracking up costs moving hives here and there to get a wee bit more super expensive honey, and other expensive practices, people may hunker down, produce less, and spend less.

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51 minutes ago, Alastair said:

This what happens when I didn't take the feeder rim of the weak one & didn't think it was worth putting another super on it. ?

 

And it's manuka. o.O

 

 

burr.jpg

What's best there? Simply break it off into a top feeder on the same hive and get the bees to move the manuka honey down?

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25 minutes ago, yesbut said:

No, it wasn't aimed at you and I'm sorry if you took it to be. I'm sure if push came to shove you could always come up with a mob of deer to flog to build up your tax bill to help with my super... But such questions always bring back the vision of that angry concrete truck driver. 

No offense taken .....  I just love to see bees filling boxes, even if it is worthless. Re assures me that we got it right ! 

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2 hours ago, yesbut said:

They're usually tour groups who arrive in Chch and hire bikes and a guide.. Mrs yesbut (she has her own bike) & I are day tripping Molesworth/Kaikoura tomorrow

And swimming in the snow melt apparently .

These are two tough hombres.

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Under the right conditions honey will last indefinitely but it's HMF will increase with time depending on what temperature it is kept at. It then has to be warmed to get it out of the drum and filter it which also increases its HMF. If you kept your honey frozen then you probably could sell it in 20 years. I am no expert on the subject but I do know that quite a bit of manuka honey that was kept warm to increase its UMF ended up being rejected because it was too high in HMF.
Life was certainly simpler when you just had to decide whether you liked the taste or not.

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On 2/12/2018 at 11:54 PM, M4tt said:

I often wonder if instead of targeting the wealthy with a product that’s unaffordable to everyone else, why not produce the same product to the same high standard that the masses can afford, not at rock bottom warehouse prices, but a ‘good’ sustainable price that keeps both the consumer interested and the supplier out of product ?

 

Or is that too simplistic 

A little simplistic. You cannot take global demand out of the equation. This is what determines the price of a product. 

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On 3/12/2018 at 9:41 AM, Jas said:

I had a quick look on Coundowns online shop to compare a few prices from a consumers point of view . Clover honey ranges from about $19/kg to $25/kg . By comparison , jams are between $7/kg and $11/kg . It’s not hard to see where the consumers money will be going . Same deal with a leg of lamb competing with a chook .

 The way I see it , there’s three types of honey . Obviously Manuka , then good quality mono florals , that one can attach a story to and command a premium , and then there’s multiflora that is still a really nice eating honey , but one that Mum can afford to put on her kids toast . Obviously more work goes into producing the first two , so one would expect a better return . 

 After reading what’s happening internationally ,  I don’t think much multiflora will be going offshore in a hurry , so we best start encouraging kiwis to increase consumption , or stop making the stuff . 

The reality is that the consumption of honey is growing in both supermarket chains. The growth rate exceeds that of jam. 

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On 3/12/2018 at 11:53 AM, M4tt said:

So the $4 figure probably is right , which means $7 or there abouts in the supermarket is the price our local consumers should be paying . 

At that price it would probably not sit on shelves for long as our international customers that recognise our honey is honey , buy it as well and take it home in their suitcases , like baby formula .

 

Again, a simplistic view , but clearly the current model is a fail 

$4 per kg from the beekeeper does not work out at $7 in the supermarket. Look at the steps the product has to take from Beekeeper to shelf?

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14 minutes ago, Adam Boot said:

The reality is that the consumption of honey is growing in both supermarket chains. The growth rate exceeds that of jam. 

You must move in different circles than me.

Its too expensive for my friends to buy .

They get it free from me, but I doubt they would buy it .

 

 

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@jamesc i am confident you will find a solution to your mountain of honey.  For someone whom was smart enough to pioneer use sniffer dogs to destroy to your afb issue, to the point of not having to burn a single hive this season you will find a way.  Just use that same brilliance to sell your honey.  You can do it ?

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On 3/12/2018 at 12:06 PM, flash4cash said:

 Not a fail for the brand owners. 

Only a few brands are successful and over the next few years the numbers of brands will consolidate. Everyone thinks they know how to create a brand. Every year many try and most fail. Creating a jar of honey with your own label is a million miles away from actually creating a brand. 

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On 3/12/2018 at 12:09 PM, M4tt said:

Fail for the beekeepers . 

 

Im not referring to the elite few catering to the top 10% of the worlds wealthy consumers 

Global production/consumption of Honey is approaching 2 Million Metric Tonnes. NZ produces less than 20,000 metric tones. Less than 1% of global demand. NZ honey has to focus on selling to the higher end of the value/demand chain. We cannot and will con compete with the commodity low end of the market. We have to be smarter with our 20,000 tonnes and maximise the value. 

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16 hours ago, john berry said:

 I have just had a nice week doing some conservation work on an island with no bees at all (and nothing for them) and it made a nice change.

those birds are keeping that heli pilot well in business. 

 

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On 3/12/2018 at 12:29 PM, M4tt said:

So how do you apply that theory back to Fonterra , which is apparently a farmer owned co operative ( hasn’t been for years, although the farmer owners are bled dry funding it ) , has its own brands and while it looks big , vibrant and successful , isn’t .

DGC is an anomaly amongst dairy producers and sellers because of its closed door policy , exactly like Tatua 

Probably a result of a flawed model not a flawed concept. Fonterra is not a good example to follow. 

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We need to sell a solution to a consumer need. Maybe that solution could be pure honey.  Syntheic and antibiotic free from one of the most clean and beautiful countries on earth. Appeal to consumers who will pay the privilege of this. We need too tell our story. 

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1 hour ago, Adam Boot said:

The reality is that the consumption of honey is growing in both supermarket chains. The growth rate exceeds that of jam. 

This statement is not supported by the data.

Scandata - Total supermarket sales.....

  • Moving Annual Total (MAT) July 2018 volume sales of honey were down 7.1% on a year ago.
  • MAT to November 2018 volume sales of honey are down 5.8% on a year ago.
  • Last quarter sales to November are down 0.5% on same quarter a year ago - the decline appears to be slowing... maybe due to the lower pricing starting to show up in supermarkets.
  • Total annual honey sales in supermarkets - 2,154 tonnes (MAT to November 2018)
  • Per capita consumptionm of honey sold in supermarkets is 450gms.  10 years ago this was 900gms and 20 years ago 1.5kgs.
  • Total Exports this year will be around 7,900 tonnes ( 6,573.4 tonnes to October)  Last year 9,635 tonnes.
  • Total production less exports for last 5 years - 65,839 tonnes (2013 - 2018 AsureQuality report and export statistics).
  • Total domestic markets??  I'm going to be really optimistic here and say 5,000 tonnes/yr, leaving a 40,000 tonne surplus from the 66,000 tonnes.
  • 879,758 registered hives (August). 10 year average crop 30.5 kg/hive. Expected average crop for 2019 - 26,800 tonnes.
  • Total supply 40,000 tonnes plus new crop - 67,000 tonnes.

Doubling supermarket sales will have a negligible  impact on this situation.

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1 hour ago, kaihoka said:

You must move in different circles than me.

Its too expensive for my friends to buy .

They get it free from me, but I doubt they would buy it .

 

 

I tend not to look at individual consumption within my own network regardless of the product I am selling. It is the wider broader market trends that influence success or failure. 

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9 minutes ago, flash4cash said:

We need to sell a solution to a consumer need. Maybe that solution could be pure honey.  Syntheic and antibiotic free from one of the most clean and beautiful countries on earth. Appeal to consumers who will pay the privilege of this. We need too tell our story. 

Synthetic and antibiotic free -  Great statements now find more? What else excluding (clean, green and testes good)

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@Emissary do you have a breakdown of honey types? Before we can find solutions we need to better understand what we have to work with. 

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51 minutes ago, Adam Boot said:

Synthetic and antibiotic free -  Great statements now find more? What else excluding (clean, green and testes good)

True to label

Edited by Philbee
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