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Adam Boot

Honey Price Collapse

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1 hour ago, flash4cash said:

Yes. They not the only one that does controled supply and quotas.  So does Zespri.  Both models are what the honey industry needs to think about if they want to make real change.  Over supply is crippling to any industry

I have been reading all the comments great ideas are coming out.BRANDS How long do you really think it takes to bring a brand to success   years.I should know I have sat at markets and sold nothing .After 20 odd yrs

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2 minutes ago, Bighands said:

I have been reading all the comments great ideas are coming out.BRANDS How long do you really think it takes to bring a brand to success   years.I should know I have sat at markets and sold nothing .After 20 odd yrs

All you need is an online influencer.

Brands are so last year .

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When the economy is in dire trouble the Brand that survives is the one that is affordable.

Such is the nature of the consumer.

 

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1 hour ago, flash4cash said:

Yes. They not the only one that does controled supply and quotas.  So does Zespri.  Both models are what the honey industry needs to think about if they want to make real change.  Over supply is crippling to any industry

I have been reading all the comments great ideas are coming out.BRANDS How long do you really think it takes to bring a brand to success   years.I should know I have sat at markets and sold nothing .After 20 odd yrs I am finally making traction.

SUPPLY AND CO-OPS.I followed the Alberta Honey Co-op and they have 2 different sorts of suppliers,Partial and Full.One interesting thing mis the beeks would be asked to estimate the volume of honey that would be going to the coop for the year.This was before any honey was sold.That way the marketers knew what sort of volume they had to work with.This makes marketing a hell of a lot easier.

EXPORTS.We are a small producer and yet we compete in the same market place.I tied to start a Joint Action Group under Trade N,Z, Went ok for a while but folded.If beeks stay loyal to the group buying their honey then the buyer will stay loyal to the beekeeper

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1 hour ago, kaihoka said:

Is the $4 kilo internationally NZ dollars or US dollars ?

 

Varies of course, probably a bit over NZ$4

 

Here's a link to some US beekeepers talking about it, baseline seems around US$1.80 a pound, and up from there. Canadian beekeepers get less, there is some kind of restriction on them exporting to the US.

Edited by Alastair
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I don't know who would be left if the price was $4 a kilo here. I started 4 years ago, I remember a 15kg box of foundation was $325. Now that is around $500. I only have this as an example as I make just about everything. I think the treatments have all gone up too. Even with 40kg per hive, thats $160 per hive. I have no debt and not a lot of the expenses that usual companies would have. I don't have a flash ute or truck, heck anything flash at all! I have seen costings per hive here for companies suggested at around $400-$500. Wouldn't the prices for pollination crash too? And all the suppliers, wouldn't all that crash too? Who could afford to buy anything at the prices I see in the suppliers glossy mags? And at the end of it, the prices at the supermarket would probably drop only a little bit. Seems to me like it's time to hunker down, time to wait it out and hope for better things to come. It's probably a good thing though, it will clean out most of the people that entered the industry recently thinking they will make a lot of money. I didn't enter for that reason.

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There’s no way in heck your gonna make these bees not make honey.

They were pulling the stuff in today.... high on Philbee’s staples or somthing.

At the end of the day bees make honey.... ‘an this trains bound for glory’

2D0F8CEF-4708-4170-BF5D-8485E793D568.jpeg

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As an aside, I think this will be a good year for us as  our cost's have dropped dramatically. 

 Phi'ls staples have saved us thousands, the upgrade to copper broadband internet has saved us another pile of dough, while today I got more good news with the McKeowns fuel bill ...... $1.12/litre.  The price at the pump was $1.38, but with their card there was more saving. Good on yer guys !

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Always the optimist aye @jamesc . Let’s hope it’s infectious . If you can cut costs while running hives that are in better health , producing more per hive then that’s got to be a big plus aye .

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@jamesc Mate it aint the Staples thats hyping those Bees, its whatever it was that you put in the Staples, 
Im thinking maybe Prednisone:3_grin:

Edited by Philbee
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4 minutes ago, Philbee said:

@jamesc Mate it aint the Staples that hyping those Bees, its whatever it was that you put in the Staples, 
Im thinking maybe Prednisone

A thoroughbred industry standby huh ?

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1 minute ago, yesbut said:

A thoroughbred industry standby huh ?

for the record, Im just kidding

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Just a little acid and luv

 

More garbage weather like this should take the fizz out of them

9FA9E465-B5AB-47C5-B5B5-E7625EC2E86D.jpeg

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Here is the electrical storm that killed some cows not far from us this morning . It was rather severe , followed by a pleasant sunny afternoon 

4AC538FA-43F3-4CC4-AD6C-4CB067BE75CB.png

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Nice one M4tt that does show it well, that was a nice fireworks display I love lightning! After a few weeks endless rain it's at last starting to brighten up somewhat here, I'm feeling better already ?

 

Looked at some bees yesterday and some of them have put on 3/4's of a box in the last couple of weeks, I have no idea how they managed to do that between rainstorms!

Edited by Alastair
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That looks like a volcano eruption in Akl

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So let me tease out the market lead controled supply concept abit futher.  On the face of it it sounds restrictive. It more librating and profitable than it sounds both in boom years and poor years.  

 

Again from DGC. So we have been under supply restrictions for the past 3 years. That means that we can only produce 147,471 kg of milk solids in a year.  Our farm has been going well so we have been producing about 185,000 per year. What did we do with all the extra milk? 

 

We leased supplier quota from farmers that could not meet their quota for whatever reason.  It is a win:win they get money to offset there lack of production we get to supply milk and cover our costs and make a little bit.  Last season we did this for 8 farms. Bankers love it to as it reduces the risk of underperformance in a farm.

 

So how could this work for bees.  I recall a season or 2 ago @john berry and @frazzledfozzle were having tough season with next too no surplus honey.  @jamesc made the generous offer to put them on a a truck and ship them south to a flow.  However if quota was allocated they could have instead leased their quota to james who was having an unusually bumper season that would have resulted in him getting say 20 tons more than usual. Fazz and john get valuable cash flow and james would have a willing buyer for his surplus honey.  

 

Quota would be a bigger blessing for bees than most other industries as it rare to have no production in any given year. A beekeeper would own the quota it would increase in value with time and could be brought and sold. 

 

When supply is restricted at easier to sell the product profitably, resulting in a higher payout to producers. 

 

A market lead approach does not mean no volume growth.  Look at zespri they plan to double volume in the next 10 years.  DGC hopes to do that in 5. The key is both develop the market profitably 1st before they take the produce.  This can be best summed up the the founding chairman of DGC, the late Russ Monery

 

"New Zealands think the world is failing over themselves to buy our product, this is not the case. Markets are hard won, we must be mindful not to produce milk power that they simply do not want.   You do not want to be force to sell it cheap because customers talk.  If one gets it cheap they all want it cheap and we will all be broke."

 

The goat industry started and failed twice from oversupply of milk.  It took a visionary and discipline to finally control themselves.  A market lead approach is the cornerstone to success. 

Edited by flash4cash
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On 3/12/2018 at 4:53 PM, yesbut said:

Waiting for the poppywhackers & bleaters......

 

Im not going to get into a slanging match @yesbut but I want to clarify why I was vocal about Puriti .

in my case it was not about bashing the tall poppy.

You May think what Adam was doing was admirable and if he had kept the marketing of the product to the facts It wouldn’t have been a problem .

 

The problem I have with it is that in all the marketing material he talks of Puriti being the only Manuka in NZ that is tested to the highest standard and beyond and no other company tests as much as they do therefore Puriti is the best Manuka honey in NZ which is blatantly untrue.

 

In fact he has no idea what standard other honey companies test too for both the national and international market.

 

In effect his marketing is rubbishing his competitors honey, and promoting the company who pays him off the back of it, rather than promoting the Puriti Brand on  it’s own merits. 

 

Enough said 

 

 

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Food for thought there flashcash

A larger controlling interest with marketing savvy who maybe lease hives to move into profitsble areas as they yield

a cap on bee numbers amd a rediction in smaller companies selling their product at cut throat rates.....

I ‘ll do some more thinking as we plonk boxes on to harvest the oversupply of nectar

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23 hours ago, Philbee said:

That's  a rather cynical view Alastair

Honey in drums is not much different than an investment or money in the Bank
 

So ..... how many staples can I get for a drum of honey dew ...?

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38 minutes ago, jamesc said:

So ..... how many staples can I get for a drum of honey dew ...?

 

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5 hours ago, frazzledfozzle said:

In effect his marketing is rubbishing his competitors honey, and promoting the company who pays him off the back of it, rather than promoting the Puriti Brand on  it’s own merits. 

I'm not in a position to comment with any authority on this. What do you think is the  effect of this marketing on the overall value of NZ honey ?

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2 hours ago, jamesc said:

So ..... how many staples can I get for a drum of honey dew ...?

The transport would kill the deal 

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5 hours ago, frazzledfozzle said:

 

Im not going to get into a slanging match @yesbut but I want to clarify why I was vocal about Puriti .

in my case it was not about bashing the tall poppy.

You May think what Adam was doing was admirable and if he had kept the marketing of the product to the facts It wouldn’t have been a problem .

 

The problem I have with it is that in all the marketing material he talks of Puriti being the only Manuka in NZ that is tested to the highest standard and beyond and no other company tests as much as they do therefore Puriti is the best Manuka honey in NZ which is blatantly untrue.

 

In fact he has no idea what standard other honey companies test too for both the national and international market.

 

In effect his marketing is rubbishing his competitors honey, and promoting the company who pays him off the back of it, rather than promoting the Puriti Brand on  it’s own merits. 

 

Enough said 

 

 

Further more Frazzle, the title of this thread was created by the OP which of course is Adam Boot.
 

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