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Informed Discussion of Beekeeping Issues and Bee Biology

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Subject:
From:
William Farler <[log in to unmask]>
Reply To:
Informed Discussion of Beekeeping Issues and Bee Biology <[log in to unmask]>
Date:
Wed, 21 Apr 2004 07:13:09 -0700
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>China is by far the largest producer of honey in the world and past history
>has shown is willing to sell below market price/cost of production  to capture the world market.

I don't claim to be an expert here but I'm not sure this is really the situation and we may see the situation change over the next 5-10 years.

One reason may be currency exchange rates. The US Govt. has accused the Chinese of keeping the Yuan artificially low in order to drive their export engine.  This keeps foreign goods expensive in China and encourages local manufacturing.


A second reason is labor.  A good factory job in china will pay about 1,000 yuan per month, or about $120 month/ $1450 year.  That would put them in the top 20% of wage earners in China.  Agricultural wages are surely much lower.  What % of production costs are labor?  I am guessing quite a lot.  Even woodenware reflects some labor costs.  After fuel, trucks, syrup and wood about all that's left is labor and chemicals.  The Chinese apparently feel they can save on chemicals by using REALLY strong stuff.  Chloramphenical is a last resort, high power chemical.

The bright spot in the picture is the Chinese economy is growing at an astounding 8% per year.  Wages are rising, new jobs (unfortunately massive pollution is growing).  The emerging class of people with disposable income are prime consumers of Chinese honey.  Maybe we should be spending our marketing dollars to develop the Chinese taste for Honey.  If a growing middle class develops a taste for honey Chinese exports could become imports as wealthier consumers opt for taste and health (sic) rather than 'cheaper' sweetener.

We could help ourselves by pushing for greater labeling disclosure on sources of honey.  Here in Texas a large packer pushes their honey as 'Texas Honey' but the label lists a dozen countries outside of Texas. :-)   If it is mostly foreign it might be noticed by consumers - some of whom might buy on more than price - which could drive premiums for local product in the packer channel - a move I'm sure they would oppose in ignorance.  Fact is differentiation in a market drives better pricing - when a market lacks differentiation all suppliers drive each other to lower margins.  If we could differentiate American honey I think it would drive greater revenue for packers and producers.  Just one persons opinion.


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