Murray McGregor wrote:
> FWIW, a close friend in the trade tells me that they are meeting sharp
> competition for Argentine honey in bulk at this time from buyers from
> North America. It is rumoured to be all going to Canada to circumvent the US
> tarriffs, where it is blended and then entering as Canadian.

Why does it need to be blended and then go on to USA.  If Canada has an
annual crop of c. 30,000 tonnes, why not just sell most of that to the USA
and import Argentinean for the local Canadian market?  Effective and *legal*.

At present we have high World prices and the resulting instability that comes
with radical price movements at all levels of the distribution channel due to
a paper "shortage".  As soon as the trade channels sort themselves out (using
above techniques as an example) then the real World supply situation will
take over again.  The sooner this happens the safer for all in the industry.

Supply was meeting demand before the trade barriers/"quality" issues.
Decreased demand from higher prices leaves more honey available World wide.
And the high price will stimulate increased production.  In the short term
every last lid and bottom board is being turned into another prodcution unit
while sugar (with low prices right now) is being fed to hives in greater
quantities than ever before.

And longer term??

Bob Harrison wrote:

> Argentine beekeepers are tired of being robbed of their honey at low
> prices.

Argentina increased their hive numbers from 1.4 million to 2.8 million in the
last 10 years - while prices bumped along around US$1,000 -$1,100PMT.
Expansion of that sort only comes when business is good!

With the US$1,600 - US$1,800 the Argentineans are getting now, all that extra
captial (tax paid profits) is going to hasten the expansion of their hive
numbers  - and the increase in World honey supply.

IMO 1.  We've been set up for a doozy of a fall when all this irons out.  The
longer it takes the bigger the fall.

IMO 2. Govt meddling in the market only leads to pain in the long term - and
the taxpayer invariably foots the bill.

Check out :

www.airborne.co.nz/wldstats.html

for a quick snap shot of the current trends from some of the larger producing
countries out there.

Regards,
Peter Bray




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