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CraBee

Honey Industry Trusts

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3 hours ago, NickWallingford said:

 

In round numbers for many years NZ consumed about 2/3 of its production.  As production started to touch 10,000 tonnes, NZ consumption was still relatively steady at say 6,000 tonnes. 

 

The role of such as the HMA was ensure that the 1/3 that ultimately needed to be exported (regardless of whether the world price was high or low) would sell at the best price possible.  The HMA was also allowed to compete on the local market, which caused contention.  Some variables that impacted on prices included such as: prices being achieved in NZ, prices being achieved on the world market, production over the current and recent seasons in NZ, and the same for the world. 

 

Two or three or more above average NZ production seasons in a row has many times led to near disaster for the honey industry.  Prices would plummet, as sellers would price cut to get rid of the glut, and speculators would offer at below production costs and wreck the markets even more.   Or the time period leading up to the demise of the HMA - over a number of years, the world price had risen, and individual NZ sellers felt they could compete on the market as good as the HMA was doing.  

 

When the HMA was wound up, its proceeds were directed to the Honey Industry Trusts.  NZ Honey Co-op comes into the story because it was created to provide some market stability for the time after the HMA, buying the packing plants, etc, from the HMA.  And the proceeds from the HMA were loaned to the Co-op for 5 years (I think), then repaid. 

 

And still today, we have the Honey Industry Trusts providing ongoing value to the industry...

 

That's interesting.  Can you tell us more about the honey industry trusts?  I'm not sure I know about them at all....

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