Hi Aaron and all,
 
I am really delighted to have a serious debate on world honey trade. I am
sure it will be quite beneficial for all of us to clarify some of the myths
concerning this important topic.
 
First of all, from some of the reply messages that I got,  it is evident
that Northamerican beekeepers take for granted the production cost of their
honey is much larger than the one we have in Argentina. How are so sure
about it? Are you willing to exchange true market information? Do you want
to know which are our costs?
 
The assumption that labor costs alone determine the cost and competitiveness
of agricultural products (such as honey) is  narrow and old, as old as when
David Ricardo (British economist of the last century) tried to decrease the
cost of salaries paid to their industrial labor force by importing cheap
food from other countries. The more evident conclusion of this superficial
approach would be: labor is cheaper in Argentina, therefore the production
cost of honey is lower, therefore they compete unfairly with US honey.
 
If you make the mistake of putting in the same basket all Southamerican
economies, you are certainly wrong. When you compare Argentina to other
Southamerican countries you come across many major differences regarding
salaries for example. In Brazil you have plenty of agricultural workers that
will work for about U$S 50 a month.
In Argentina you will not find anyone to work bees for the less than U$S 3
(an hour). Fuel costs are over three times in Argentina than in the US, a
gallon of gasoline here is U$S 3,60 (about a dollar in the US) and I can
assure you the incidence of this single cost is enormous in migratory honey
operations. Another interesting comparison is the cost of High Fructose Corn
Syrup (Types 42 and 55).  A pound of syrup is 21 cents here, in the US about
10 to 12 cents.
 
Indeed labor costs in the US are more expensive. Between 1990 and 1993 I had
the chance of working at three different bee companies (one in California
and two in Georgia). How many of you (who seem to know so much about
Argentine beekeeping) have come to work were and obtain reliable economic
data to support your  "assumptions"?
 
My American born workmates (not Mexicans) were making a little bit more than
the minimun wage. I recall back in 1993 the minimun wage was U$S 4.25 an
hour, well these American workers were paid U$S 5,25 to U$S 5,50 an hour.
And I am talking of skilled people with many years of experience in the
beekeeping field.
 
In woodenware we don't find much differences. A good pine super here is U$S
5.50,  a full depth frame 35 cents, a pound of foundation U$S 2.80.
 
Are you able to benchmark the respective incidence of each cost: labor, fuel
and HFCS into the the total production cost of honey? I am pretty sure
you'll be surprised when you find out that our production cost is not as low
as you always thought.
 
>It is interesting to me that Martin uses the scheduling conflict as an
>introduction to the discussion of "high quality but low price Argentina
>honey exports", which then became a more generalized discussion of
>world honey prices.
 
Aaron, you are a either a semiologist or a psycologist, aren't you? Or at
least
pretend to be one...I don't know.  What's the matter about the logical
structure of
my message? You may be the owner/moderator of the list and l accept the fact
as it is.  But I do not understand what you aim to deduct of my
communication to the list.
 
>Personally I have never heard of the I.H.E.O (International Honey
>Exporters' Organization), but I find it hard to cast them in the role as
>bad guys.
 
If you never heard of them you may be deaf or worse they don't want you to
hear of them. Anyway, I feel like you are jumping to conclusions. You don't
know them but you assume they are not bad guys, why?.  I suggest you pay a
look at
"Bee Biz" interview to Mr. Arno Meier, then you'll decide whether they are
good, bad or excellent. If you are not subscribed to "Bee Biz" I am sure
Matt
Allan will be glad to send you a copy of it.
 
>The granularity is not fine enough here.  It doesn't take a "few small
>organizations" to reduce prices dramatically, it takes sufficient small
>producers to sell enough product to meet the demands of the few small
>organizations, period.
 
Your "market philosophy" sounds great for an elementary  book on Business
Administration but your description of facts do not match real life.
 
>Martin uses the statistics:
>Those who rely on their honey crop to pay their bills, pay their help,
>FEED THEIR FAMILY(!) are forced to accept the deflated price based on a
>WORLD market, where the price is set at the point of production with the
>lowest costs where a deflated price is actually good pay!
 
Now that you are aware of some our costs, do you still think that  a
"deflated price" is a great price for Argentine beekeepers? This is not
criticism but a demonstration that labor costs although different in both
the US and Argentina final production costs are not different but
compensated with other costs that are extremely cheaper in the US like fuel
and HFCS.
 
And if you don't mind I'll keep on boring you with my "statistics". Back in
1989 the US had 3,44 million colonies, now ten years later there aren't more
than 2,60 million. About 850 thousand colonies are gone. What happened? Are
you going to blame us for this?
We didn't get the mites neither into the US nor in South America. At the
same time (1989-1997), domestic consumption of honey in the US grew from 275
thousand pounds to 352 thousand pounds (a 28% increase). If you have less
hives, then you have less production but if at the same time local demand
goes up it is not surprising you need to import more honey. In 1990 US
imports of honey were 75,000 pounds, in 1997 more than 160,000 pounds.
 
Another serious problem that American beekeeping will face is the lack of
young people engaged in the beekeeping industry. I am very sorry Aaron, but
this generation gap is not the fault of Argentine beekeepers either.
 
Regards,
 
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