Farmers Review Africa July/Aug 2017 Farmers Review Africa July/Aug 2017 | Page 15

Insights
Honey and
the hive of
concern
Honey production is a relatively small market years and have recently reach R65 per kg
internationally, even more so here in South due to the drought.
Paul Makube, Senior
Agricultural Economist
for FNB Business
challenges such as vandalism and the, pests
and diseases, competition from cheap
Africa. Over the last couple of years, a
imports, the Capensis problem, loss of forage,
combination of factors, highlighted by recent 3. How has it impacted competitiveness of SA
droughts, has led to a decreased availability of businesses?
honey, which translates to increased prices and a
and still a lack of research capacity. For
example, a hive can easily cost R1,000 with
e reduced domestic production situation
spinners prices ranging from R30,000 to
local producer market that is fast facing attracted imports which mean loss of market R40,000. is, combined with a lack of swarms
international competition. share for the local product and producers. to purchase which can easily be priced at about
It should however be noted that the critical into this market. New entrants to the market
Paul Makube, Senior Agricultural Economist at
FNB, answers six questions around the slowing
R1,500 per swarm, is a huge barrier to entry
production of honey, and the hive of concern importance of honeybees is not only for the will also need to learn by at least working on
around its impact on local producers and production of honey but for agriculture and any other running operation or farm.
consumer markets - conservation as well in terms of their role in pollination of deciduous fruits and 5. What are the short and long term impacts on
1. How extensive is the lack of honey in SA conservation of oral reserves and in terms the agri sector?
of maintaining biodiversity. e recovery of While production is expected to rebound as
SA production is normally around 2, 000 tons this sector is therefore more important for conditions normalize, the effect on the agri-
per year and current estimates indicate that a the agricultural market as a whole.
and global market?
sector could be huge if there is no sufficient
recovery. For example the value-added by the
decrease in production is expected. At least 1,
000 tons is normally imported. At 3,000 tons 4. Are there measures in place to assist this managed honeybees on the South African
local consumption far outstrips supply and market and businesses in this sector? deciduous fruit industry alone could easily
the de cit is met by imports, mainly from Support is in terms of legislation and exceed R200 million per year. e broader
Argentina, China and Australia. However, agriculture and conservation services by the impact on biodiversity could even be bigger
there are concerns over the quality of some of various departments. Honey Standards are in the longer term.
the imported product. c u r re nt ly promu l g ate d i n te r ms of Domestically, adverse weather conditions Regulation 835 dated 25 August 2000 in 6.
particularly in the Western Cape have terms of the Agric ultural Pro duc ts lack of honey?
contributed to reduced production and Standards Act, 1990 (Act no. 119 of 1990):
Has the drought been responsible for the
Drought was a principal factor in the current
r ais e d t he ne e d for i mp or t s . O t he r Regulations relating to the Grading, Packing shortage. However, it should be noted the
production areas of South Africa such as and Marking of Honey and Mixtures of Bee limited domestic supply situation has always
KwaZulu-Natal (KZN) were not as badly Products intended for sale in the Republic of been due to the combination of rising
affected. South Africa. demand and the lower production.
ese are however not nancial in nature “We look forward to a recovery in honey output,
e shortage has resulted in upward pricing and the market has to fend for itself from a for the foreseeable future, the current decrease in
as the market is generally small both locally marketing and infrastructure perspective.
2. How has it impacted on pricing?
and
ranged R40.00 to R45.00 per kg in previous
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production of honey seems to be a problem that
will correct as the conditions in the season ahead
internationally. Wholesale prices
C ommercial producers face serious
[15] FARMERS
REVIEW AFRICA
improve,” concludes Makube.
July - August 2017