Dear Bee-Liners,
 
The U.S. consumes approximately 350 million pounds of honey per year.  The
U.S. produces approximately 190 million pounds.  That gives you a 160
million
pound deficit.
 
China can ship approximately 45 million pounds according to your agreement.
This leaves 145 million pounds of honey that you need from other sources
(like
Argentina). As you may be aware Argentina has shipped over 94 million pounds
during 1997 to the U.S.
 
O.K,  where do we go from hear?  We have learned in recent years that our
markets can handle $1 per pound to the producer.   We must figure out how
Argentineans can make more money on their honey and not depress prices in
the U.S.  Depressed prices in the U.S. will depress prices in Argentina and
viceversa.  Are we in agreement?
 
I am almost certain where our problem lies.  Our honey exporters (I.H.E.O)
are telling us that we must sell our honey cheaper so that it may be sold in
the U.S.  I believe that your importers (NHPDA) are making all the money and
driving prices down with their greed.
 
Since the exporter/importer has such a large profit margin, he can continue
to offer our honey from Argentina at lower and lower prices.  Even to the
point that
Argentina honey has replaced U.S. honey.   U.S. producers must sell their
honey so
they will match Argentina prices.  The market continues to drop and
beekeepers suffer.
 
What can we do?  I think that I have the answer.  Argentina producers can
demand more for their honey.  Why not 85 cents per pound.  Add freight,
duties, and commissions and the prices will be around $1 in the U.S.  We can
all be happy with  $0.85-$1.00 per pound for honey.
 
If large US beekeepers decide to get together and import Argentina honey, we
may avoid our traditional exporters and your honey buyers (NHPDA) will lose
power because they will not find any honey. In other words, large Argentine
beekeepers get more money for their honey because they sell directly to US
honey producers. This way neither Burleson nor Gamber nor anyone will be
able to put more pressure on you because the market will be "honeyless".
 
One more thought.  China will be back in the market soon.  They will sell
their maximum. We would rather sell 45 million pounds at $0.70 to $0.85 than
to
sell 77 million pounds at $0.30
 
Cordially yours,
 
 
Martin Braunstein
Queen Breeder & Exporter
Criador de Reinas y Exportador
Malka Cabania Apicola
e-mail: [log in to unmask]
Phone (54+11)4446-8350
Fax (54+2322)487564