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Janice

And so it begins in the south . . .

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Kiwifruit went through the same boom and bust cycle the dairy industry is experiencing. I think its inevitable the same will happen in the " manuka" honey industry.

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Kiwifruit went through the same boom and bust cycle the dairy industry is experiencing. I think its inevitable the same will happen in the " manuka" honey industry.

The solution was single desk marketing... Beekeeping would do well under such a model...

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feel free to add any more stories.

well, the best one i know happened up here with Watson not too long ago.

a beekeeper was moved off for watson. he tried to match his offer last minute but was all too late.

the agreement was about planting everything in high umf manuka and so on.

so they started off with spraying everything (including all the established manuka)

but then some fall out happened, either watson&son internally or with the landowner.

end result: manuka gone(apparently really good stuff), beekeeper gone and no more income for the landowner.

 

apparently a lot of landowners that had agreement with Watson up here missed out this year.

Watson had a PR person (an ex-all black or at least famous footy player?) here stitching up deals but after they had a fall out it all went sour.

on a 10 year contract they were offering 30% - after expenses. not sure if landowners were meant to chip in if they had losses.

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The solution was single desk marketing... Beekeeping would do well under such a model...

We had such a system. It was called the NZ Honey Marketing Authority, another producer board set up after WWII (1952 I think). Only they could export. Prices during their reign for NZ honey were there same as the World price. It was disbanded in 1982... and exports have been climbing above World prices ever since.

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We had such a system. It was called the NZ Honey Marketing Authority, another producer board set up after WWII (1952 I think). Only they could export. Prices during their reign for NZ honey were there same as the World price. It was disbanded in 1982... and exports have been climbing above World prices ever since.

 

This seems a fairly glaring example of how not to market. What are the plusses of single desk ?

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This seems a fairly glaring example of how not to market. What are the plusses of single desk ?

No infighting at the market place, continuity within a marketing strategy of high end products, better relations with government, significantly better ability to implement quality control, the ability to large scale trade currency for the best advantage and an adequate vehicle to pay for R and D of new technology.... Would you like me to continue?

 

 

We had such a system. It was called the NZ Honey Marketing Authority, another producer board set up after WWII (1952 I think). Only they could export. Prices during their reign for NZ honey were there same as the World price. It was disbanded in 1982... and exports have been climbing above World prices ever since.

The apple and pear board went down a similar path... Now they are known with ENZA.... The problem is when you dont put the right people in the jobs... Why have a beekeeper do marketing? Why not put sombody good at marketing in there? Same with currencey trading... Get sombody good at it, not a mate or the owner of the neighbouring orchard.... Zespri proves it works....

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Is Apinz set up in such a way as to establish a marketing offshoot ?

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Is Apinz set up in such a way as to establish a marketing offshoot ?

It really needs to be the law AND a co-op for it to work.....

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It really needs to be the law AND a co-op for it to work.....

 

Hmmm, co-ops: sound great in theory, in reality they haven't worked well to date in our industry.

Comvita buying out the Honey Co-op showed which model was more commercially successful.

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Hmmm, co-ops: sound great in theory, in reality they haven't worked well to date in our industry.

Comvita buying out the Honey Co-op showed which model was more commercially successful.

Hence it needs to be the law....

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Saw an interesting video today, 8 brand new crusers with watson & sons decal sitting in a toyta yard. reported to be heading south.

 

BTW comvita didn't buy the co-op

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In the days of the honey marketing authority my grandfather hardly ever made any new gear as it was always cheaper to buy out somebody that had gone bust. (One of the reasons I'm good at identifying foul brood). If I go down with the ship at least it will be my ship. The honey marketing authority had professional leadership helped along by a tax on every pound of honey sold in New Zealand. Under its benign and wonderful leadership they wouldn't even buy manuka. Beekeeping has had mixed fortunes since its demise but on average we are so much better off and were even before the rise of the manuka God.

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Saw an interesting video today, 8 brand new crusers with watson & sons decal sitting in a toyta yard. reported to be heading south.

 

 

Complete with ta moko ?

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It's an interesting one, I wounder if Zespris example is more down to the people/cultural aspects of the management team... Plus we live in a different world regarding chemical residues etc that not many other countries can match...

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Kaikoura. The secret is out!

Not in my experience, Kaikoura is kanuka country. Not much manuka. Very little activity. Good pollen counts. Good product to blend. Maybe the big players have saturated their areas and are now looking else where. The Strait kept them north until now.

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It seems to be all about blending now.

It wasnt that long ago I was sitting in a meeting in Wellington with the likes of " Mr" Steens standing up berating all those who produce Kanuka honey telling us we were thieves and should F off out of it.

Seems to me that any honey, even willow dew is used in the blending of so called UMF manuka honey.

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It's an interesting one, I wounder if Zespris example is more down to the people/cultural aspects of the management team..

Zespris is under fire at the moment for stopping organic kiwifruit exports.

thats the same problem honey board had, not letting other players be innovative and make new markets.

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Zespris is under fire at the moment for stopping organic kiwifruit exports.

thats the same problem honey board had, not letting other players be innovative and make new markets.

And the wool board

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Zespris is under fire at the moment for stopping organic kiwifruit exports.

thats the same problem honey board had, not letting other players be innovative and make new markets.

Link a brother up? I havnt heard about that one....

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Link a brother up? I havnt heard about that one....

not sure on a link but it was an article in one of the farming newspapers.

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not sure on a link but it was an article in one of the farming newspapers.

I assume you are reffering to this? Zespri partner rejected There is some back room politics at play.... Also, those volumes are very small....

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It did actually happen but there were reasons. The theory, both for the HMA and for Fonterra was that we don't want ourselves to be cutting each others throats. (Like we sometimes do offering the landowner a better deal than the beekeeper who is there at the moment).

 

The theory was instead of lots of different brands all trying to enter a market and having to offer a better deal than the competition who is another kiwi, we all come under one umbrella and present the world with a united front.

 

To enforce that, the HMA had to stop people going their own way. Fonterra would use a similar argument and it did seem to work for them in the good times, but who can say whether a world milk shortage would have just pushed prices up anyway.

 

Anyhow the HMA was scrapped and then manuka came into it's own thanks to some incredibly brilliant marketing on the world stage by some Kiwis. Do we say that was because of free market economics and allowance of innovation? Who knows?

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I assume you are reffering to this? Zespri partner rejected There is some back room politics at play.... Also, those volumes are very small....

that sounds like the one.

but thats just the point, back room politics being enforced through a monopoly company.

in effect they are stopping innovation.

i don't see size being an issue, if they are selling a different product and wish to go in their own direction then let them.

stopping them on the grounds that it only benefits a few growers and not all of them is ridiculous.

 

afaik the problem with the honey board was they only really sold one product. great if you had it, sucks if you didn't as they where not interested in any other products.

 

fonterra works well because its basically only got one product from the farmers. beekeepers have a wide range of products so a single marketing board will never work well.

 

i should add, fonterra has opposition milk factorys etc. so its not a total monopoly. its seams to be far more open than zespris model.

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