Hello All,
Unless you have watched the U.S. honey market over the last over forty years
develop (like I have done) you have a hard time understanding what is going
on.

I write what I do not to gain a popularity contest or write what many want
to hear but only explain the market.

It is true as Ron B. pointed out and has noticed I say things on BEE-L which
I would never put in a beekeeping magazine article.
You can get lost in the archives of BEE-L so really the importance of the
subject is NOW and with those discussing the subject in my opinion.

The situation in the U.S. honey market is changing. Prices are not going
higher but dropping to lower than ever prices (both bulk & on store
shelves )

Packers are asking U.S. commercial beekeepers to sell at or below the price
of foreign honey in order to move their honey. The price of foreign honey is
below the cost of production AGAIN. Some packers are simply not buying U.S.
honey at any
price.

Most on the list are small hobby beekeepers. Your situation is different
with your sales. Small sideliners which have a niche your situation is
different. I am not speaking to your situation but to the whole picture of
the U.S. honey market as pertains to commercial beekeepers.

Many large commercial beekeepers are reducing down into a much smaller
operation to survive. Many commercial beekeepers are going back to direct
marketing and producing propolis and pollen instead of honey. Added value
products.

You do what you have to do to survive. A large beekeeper going to his tax
office told me by cell phone the other day. "I don't know how much longer I
can run my operation at a loss".

The situation is very serious in commercial beekeeping circles. Many former
large commercial beekeepers have went to keeping a small number of hives and
buying and packing honey for stores. Now that store prices are falling to
record lows they are seeing they can not compete or even stay within a
dollar of large packer pricing (selling foreign honey) so they lose shelf
space due to low sales.

I had an email from a police officer wanting to know if commercial
beekeeping would be the way to support his family after retirement.
Investing most of the families savings would be required to start up. What
would most commercial beekeepers advise today?

Most commercial beekeepers have not had to deal with AHB and SHB yet. Those
will be in their future. The liabilities of keeping "hot" hives is going to
make it hard to find help, locations and insurance. The price of fuel will
continue to rise. Last year in rural Kentucky I complained of fuel at a
price around 2.25 a gallon. The store owner said next year you will be
looking for fuel in the 2.25 per gallon range. I stopped by last January for
his prediction. This year we will be looking for fuel in the 2.50 per gallon
range he said.
I believe his next prediction for his area will be 2.75 or higher.

Our U.S. agriculture is supported by federal subsidies.. The U.S. farmer
could not survive otherwise. Beekeepers are denied the help. Wake up your
politicians! We are agriculture but get none of the help farmers get YET
farmers depend on us in many areas.

Only the cream of the crop of commercial beekeepers are left because of
beekeeping problems of the last two decades.  Once the rest are gone I doubt
the U.S. will be able to get young beekeepers interested in beekeeping. My
son, son-in laws and grandsons are not interested. Try to sell a U.S.
commercial beekeeping business. Once the books are looked at the deal falls
through.

I see many operations wrote about in magazines. Sounds wonderful. Show me
the books! The operations are always expanding with new equipment. Is the
equipment being paid for by profits from the expanding business? Show me the
books.

Bob

-- Visit www.honeybeeworld.com/bee-l for rules, FAQ and  other info ---