Honey market heats up | The Western Producer

Bulk honey prices have been exceptional in 2021, with honey selling for about $2.50 per pound in Western Canada.

But honey prices may climb even higher as American regulators crack down on countries that “dump” cheap honey into the United States.

In early June, the U.S. International Trade Commission ruled that honey imports from five countries are hurting American beekeepers.

“There is reasonable indication that… imports of raw honey from Argentina, Brazil, India, Ukraine and Vietnam are allegedly sold in the United States at less than fair value,” the Trade Commission said.

The U.S. Department of Commerce will continue to investigate and is expected to impose duties this fall on honey imports from the five countries — the largest suppliers of honey to the American market.

The proposed duties are far-reaching.

The Hanoi Times reported that Vietnamese exporters could face duties of 47 to 138 percent on honey shipped to the U.S. For exporters in the other nations, the duties could be as high as 50-90 percent.

The U.S. ruling will shift how honey moves around the world and should increase exports of Canadian honey to the U.S.

“It is positive news for those Canadian producers who sell into the U.S,” said Rod Scarlett, Canadian Honey Council executive director.

“The short-term impact is it will probably increase prices for Canadian producers selling to the U.S.”

The American Honey Producers Association has for some time lobbied U.S. regulators to take action against honey imports.

A law firm representing the association said the duties are necessary because cheap honey from Argentina, Brazil, India, Ukraine, and Vietnam has been “depressing domestic prices and making it difficult for U.S. beekeepers to earn a living.”

The expected U.S. import tariffs should help beekeepers in America and Canada, but there will be complications.

A company from Vietnam, Argentina or elsewhere could try to export honey to the U.S. through a third country.

“The pressure for trans-shipping is going to increase dramatically,” Scarlett said, adding some suppliers may try to move honey to the U.S. through Canada.

The American market is hard to resist because the U.S. doesn’t produce enough honey to satisfy domestic demand. In 2019, U.S. beekeepers produced 157 million lb. of honey and imported more than 416 million lb.

Canada sold less honey to the U.S. last year because Canadian beekeepers had a below-average honey crop in 2019 and 2020. Stockpiles are currently extremely low.

“There is very little if any bulk honey left in Western Canada that is for sale,” Scarlett said.

The proposed American duties are part of a larger trend in the global honey market.

Regulators in Canada, the U.S. and Europe have been clamping down on imports of fake honey from countries including China.

Fake honey is typically made from rice syrup or corn syrup and filtered to resemble real honey.

The import controls seem to be working.

“The CFIA (Canadian Food Inspection Agency) has increased their inspection of bulk honey coming into the country. And (they’ve) identified some adulterated honey and seized (it),” said Nathan Wendell, president of the Saskatchewan Beekeepers Development Commission.

“The U.S. has also stepped up their efforts to manage the flow of adulterated honey into the North American market…. If you take (that) out of the marketplace and are only left with genuine, real honey, the price has to go up because the volume just isn’t there.”