Hello All,
Many commercial beeks are not thought to be the sharpest tacks in the drawer
and many took a hit this season. Every year is different. Randy Oliver and
myself have shared valuable information on the ways not to come up short. Do
not take hives to California without a contract. Quit doing handshake
contracts and get a contract.

According to my contacts ( ABF & AHPA) there was a *huge* glut of hives.
Estimates have been 300,000 to 600,000 hives. $150 was has been the high
figure for those with early signed iron clad contracts. $110 -150 for those
with good bees and contracts.
Thousands were offered in the newspapers for around $75. One beekeeper was
offering hives with a 6 frame average for $45.
I can say the beek will not be popular with his fellow beeks. Many beeks are
walking around with knives stuck in their backs courtesy of their fellow
beeks.
Most of the major players had done their homework and kept their contracts
but some were negotiated down $10 to $20 to keep the growers happy.

What were the main causes of the glut?

This are what is being reported.

1, Drought
200,000 acres of farmland ( not all almonds) are being denied irrigation
water in 2009.

2. Almond prices have dropped as low as .80 a pound.( have been three
dollars recently). Of course like with honey in drums people simply sit on
product when prices drop. However sitting on almonds reduces cash flow to
pay for hives.

3.Many using hives this year reduced the number of hives placed from 3 hives
per acre to 2 and even to one in certain cases. Time will tell if the gamble
worked as before the last couple days very little flying time has happened.
many beeks are feeding starving hives.A phone call yesterday said nectar was
coming in yesterday but many hives have been in the orchards for weeks and
are needing fed.

4.Many estimate 300,000 hives were idled because of water concerns and
another 300,000 because of not renting hives because of low almond prices.
Exact numbers will never be known.

5. estimates are 130,000 acres of old almond orchards have been or are being
removed.

This year is basically over and looking ahead to next season one bright spot
is the trucking in 2007 was around $2.85 a mile and this year around 1.65 so
trucking those  hives home will be cheaper than if happened last year. Many
beeks are simply out the trucking and labor for sending hives to almonds.

140,000 acres of new trees are expected to come into production between 2010
and 2012 which if happens and drought ends ( has been going on for a few
years now and expected to end based on drought history charts ) and due to
the low almond production this year due to amount of acres in production
almond prices rise ( which none of us which follow the market doubt will
happen) then its entirely possible the number of hives needed in the years
2010 - 2012 could reach 2 million hives a season in almonds.

To sum up:

1. drought needs to end freeing up water for almond growers.

2. almond prices need to reach at least 1.75 to 2 a pound range for growers
to get interested.

3. new trees need to come into production.

My best guess:
2 & 3 will happen. beeks need to keep a close eye on the drought situation
as in my opinion is the key factor.

Stupidity is doing the same thing over and over and expecting a different
result.

Trucking bees into California without a contract is stupid. Beekeepers which
have been with growers for years on a handshake basis were burned this year.
This year is over and now its time to look forward. Would of could of and
should of are a waste of time.

Honey prices are high so quit crying and move on but those reading which
were burned for the most part need to understand the problem would not have
happened had you been a better businessman!

bob

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