Hi David and all,
> I am not saying your topic is not worthy of discussion, but delegates are
already >forced into making a numberof choices as what sessions they can
attend.
Delegates should bear in mind ALL aspects regarding our industry. Beekeeping
economics, world trade of honey and the impact of Argentine exports are a
hot topic. I was invited to give a lecture on this subject at the VI
Iberolatinoamerican Beekeeping Congress which was held in Merida, Mexico on
August 1998. There I met Dr. Gard Otis -one of the Canadian organizers to
whom I proposed my presence in Apimondia.
As you imagine, according to the interests of IHEO members, my perspective
of world trade is very controversial. None of them want beekeepers to
realize who and how fixes the price of honey. I am not sure but I presume
Apimondia gets some kind of financial support from companies involved in the
trade of honey. Therefore they have power to choose who will speak and who
will not. Thus it is not surprising I was not in their list of candidates,
and off course not after the meeting in Mexico. You can ask Dr. Medhat Nasr
(Canada) and Dr. Shimanuki (USA) whether or not they liked my presentation.
As soon as I came back from Mexico (end of August 1998) I got in touch with
Dr. Mark Winston. Again he said the agenda was full. I was really surprised
to hear that more than one year prior to the Congress, there was no room for
a 30 minute speech. When should I have asked for permission....? Two years
ago maybe.
Don't you think it is imperative for NorthAmerican beekeepers to hear the
message of Argentine beekeepers? If Apimondia organizers have set another
priorities...well, they should have their reasons. It is up to us to find
out what interests they represent.
>Already asked Mr. Rumball's firm and other buyers that question. The
answer
>we get: Argentinian beekeepers had a bumper crop and are giving it away
>again. When the Argentine product came on stream, prices which had already
>been sliding in anticipation, dropped another $.05 US almost overnight.
Like I said in a previous message, Mr. Rumball is the head of the IHEO
(Int'l Honey Exporters Organization). His business is not to defend
beekeepers and the price they get but to obtain the cheapest possible price
for the honey he buys. What makes you think he and his company are a
reliable source of information? Any buyer (no matter where he/she is
located) will
always try to pay the least possible money for whatever sort of goods he/she
purchases. On the other hand, producers of any goods will try to sell at the
maximun possible price. This antagonistic reality is inherent to all
economic relationships where one party sells and the other buys.
>You're right that eventually we have to match it, but how do your exporters
>get so much cheap honey in the first place? The majority of your producers
>must be happy with the prices they recieve or they would organize and
bypass
>the exporters/importers.
Your conclusion is a bit superficial. Neither we are happy with the price we
receive nor it is so easy to bypass importers/exporters. Argentina has
doubled its production in ten years. Unfortunately, domestic consumption has
remain very low, it only absorbs about 6,000 Tns every year and it
represents less than 10% of total production. Therefore, the bigger the crop
the larger our share of exports.
Seven exporting firms concentrate over 90% of honey exports in Argentina.
You can be sure all of them will be present in Apimondia. These companies
are: ACA, HONEYMAX, CEASA, NEXCO, TIMES, CONAGRA and RADIX.
Since domestic consumption is so low, our prices are determined by these
seven guys (all members of IHEO). Although they are competitors among them,
they do not compete when they have to depress the prices paid to beekeepers.
This is what in Economics is called an OLIGOPSONY.
It is true this honey crop will be very good in some parts of Argentina.
However, it does not compensate the poor crop in China. What gives a lot of
power to IHEO members is their monthly exchange of information. They monitor
the inventories of honey and decide when and how much to buy. Why don't you
ask Mr. Rumball to include you in his mailing list? I am pretty sure you'll
be astonished to read the kind of info they share. I was very fortunate to
read a few of their monthly reports and I know what I am talking about.
I will just give you an example. During last January 1998 (more than one
year ago) Argentina exported over 13,900 Tns of honey, then in February only
975 Tns. The volume exported in January represented over 20% of the total
honey exported during 1998. The volume exported in Feb. 98 was next to
nothing (1,40%). When beekeepers needed to sell their honey in Jan. 98,
exporters didn't show any interest, consequently very little honey was
exported a month later. Why? Because the volume that should have exported in
two months was shipped out in just a single month (Jan. 98). When our honey
floods the world markets in this way we all suffer.
I am retyping into e-mail format part of the interview made by Bee Biz to
the current secretary of IHEO. Then you will make your own conclusions
concerning this group.
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
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