Honey Market Prediction
Imports are still a challenge when it comes to honey prices (and honey quality), so we checked in with our reporters this month on their prices, the demand for their honey and what they intend to do this season because of all this.
It’s about a 50:50 split on the demand side. About half expect it to increase, the rest to stay the same. That’s over all. Regionally, it’s way different in a couple of places. Region two has only 20% thinking demand will increase, and 80% staying flat, while Region 3 is just the opposite, with 77% aiming for an increase. The rest are about the same as the overall picture.
Honey prices aren’t volatile in most places either. Overall, only 35% plan to increase prices this season, and 65% are going to stay the same. And that picture is pretty much the same everywhere. But for those who are raising prices, cost of production was by far the most common reason. But the simple fact that demand was increasing, especially in Regions 3 and 6, led reporters in those regions to take advantage of that and price increases will be seen more there. Interestingly, we offered another reason for raising prices, Because I Can, and 11% of the reporters will raise their prices because they can without hurting business.
So what about production plans next season? Overall, fully 60% plan some level of production increase to accommodate demand and need for increased income, even if prices stay flat, with Regions 3 and 5 leading the way for increases, and Regions 1, 2 and 9 avoiding that risk the greatest.
If you haven’t already, take a look at the Annual Honey Report elsewhere in this issue. It is full of a lot of numbers that also help explain much of what our reporters are up against all of the time when it comes to marketing honey. We have been saying here for some time that the beekeeping industry is heading toward the business of pollination and making bees, and it hasn’t backed off that move one bit since last year.