Soaring honey prices offset drought

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Published: October 17, 2002

While there were prairie beekeepers stung by drought this year,most

were euphoric due to record honey prices.

The overall honey harvest in Alberta this year was below average

because of drought. Saskatchewan also had areas of drought, but overall

yields will come in close to average as will Manitoba.

Beekeepers are excited that honey prices are more than double last

year’s. Last week, prices on the open market ranged up to $2.50 a

pound, which shatters previous records.

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“I think everything’s going along quite nicely,” said Don Dixon,

Manitoba’s provincial apiarist. “Sales have been very brisk with these

higher prices.”

Part of the reason for the dramatic price rise is concern among

importing countries about the quality of Chinese honey. That honey is

being shunned because of discoveries of adulterants, such as

antibiotics that are illegal for use in beekeeping.

The European Union has an embargo on Chinese honey and Canada imposed

tight restrictions earlier this year because of concerns about

contaminated Chinese honey.

The United States, which is an important producer and importer of

honey, has had import tariffs on Chinese honey for a couple of years.

This summer, U.S. officials discovered that at least some of the honey

imported from Australia and Thailand was Chinese, even though it had

been labelled otherwise.

As a result, 50 container loads of honey were seized. The honey in

those containers was tested and found to contain traces of illegal

antibiotics.

“That put a real chill on people buying Australian honey in the U.S.,”

Dixon said.

It also made major honey packers more leery about buying Chinese honey.

Instead, they turned more of their attention to North America, where

production standards are higher.

That helped trigger a buying frenzy among packers, who also recognized

that drought in important honey producing areas such as Alberta would

mean a below-average harvest in Canada and the U.S.

“They tried to get their hands on honey as quickly as possible after

the harvest to get their inventories up,” said Dixon.

Also adding to the demand for Canadian honey are U.S. tariffs on honey

from Argentina, following allegations that it was being sold at below

cost of production on the American market.

“All these things came together and pushed the price of honey to

astronomical levels,” Dixon said.

A lot of the honey produced on the Prairies this year will already have

been bought or spoken for. Producers who still have product should have

no problem selling it, although they may be holding some of it back

wondering whether the prices could go higher.

Alberta

Alberta is Canada’s leading producer of honey. Medhat Nasr, the

province’s apiculturist, expects the overall yield there to be about 80

percent of the 10-year average.

“We are short,” said Nasr, noting the average Alberta hive production

this year was 130 lb. He estimated the total provincial harvest this

year will be 18 million lb., compared with 23 million last year.

“Some guys got a normal crop. Other guys got nothing.”

Saskatchewan

In Saskatchewan, yields were all over the map this year, according to

John Gruszka, provincial apiculturist.

The honey outlook in drought areas of the province was grim in August,

Gruszka said. However, rains reached the affected region later in

summer, helping to spur the development and blossoming of crops such as

canola, which are a source of nectar for bees.

The result was a late flow of honey across the northern part of the

province, which helped push up yields.

Gruszka estimated overall yields came in at close to the 10-year

average of 185 lb. per hive. There are about 100,000 hives in

Saskatchewan, which means the total provincial yield will be about 19

million lb.

Manitoba

In Manitoba, preliminary estimates suggest the province’s beekeepers

produced 13.5 million lb. of honey this year. The yields per hive were

about average, said Dixon, although the number of colonies was 90,000

compared to 92,000 last year.

One of the concerns for the Canadian beekeeping industry is that with

record prices, major food manufacturers may look at alternative

ingredients for the food products they make using honey. Consumers

buying packaged honey off store shelves might also be leery of paying

the higher prices. Both factors could influence future demand for honey.

About the author

Ian Bell

Brandon bureau

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