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Apiculture – honey and pollination services

 

Apiculture industry statistics from 2004

Summary

Honey and associated processing is the largest product class from apiculture in the North East region (see Table below), however pollination services are increasing in significance for apiculturalists. Dry conditions and recent fires in the North East have significantly reduced honey production. A reduction in suitable forest types as a result of the fires will continue to affect the industry.

Whilst there are about 20 commercial honey producers, the industry mainly consists of small individual producers, marketing on the back of the region’s clean and green image, and appealing to the tourist and passing traffic trade.

Producers are generally older persons. There is minimal recruitment of new producers.

North East Region

1996 – 97 AG Census

2000 – 01 AG Census

Gross value of production of honey & bees wax

$890,127

$1,158,494

Contribution to Victorian GVP of commodity

11.2%

16.6%

Contribution to Australian GVP of commodity

1.8%

3.1%


Source: ABS Agricultural Census – 1997 and 2001

Apiculture industry overview

Detail

Comments

Product description

Honey, beeswax, live bees (queen and package bees), pollen, royal jelly, and pollination services for horticultural crops within the region. Estimates of the production of honey in the region are complicated by the transient nature of the industry.

Main season

Not seasonal however slower months of the year are May, June, July and August depending on the producer.

Industry associations

Crop Pollination Association (Victoria)
Victorian Apiarist Association
North East Apiarist Association
Australian Honey Bee Industry Council
Honey Packers and Marketers Association
National Council of Pollination Associations
Australian Queen Bee Breeders Association
Federal Council of Australian Apiarists Associations

Detail

Comments

Domestic market information

Ranges typically between $3 to $4 per kilogram, or up to $4,500 per tonne. Main purchasers of honey include manufacturers / honey packers and the general public through gate sales and markets.

Export market information

Those surveyed stated their produce was not exported to the best of their knowledge; however honey manufacturers may export for international retail markets.


Source: AAVAF Survey 2004

Location of the apiculture industry within AlpValleys region

Approximately 20 growers considered commercial/mainstream (having more than 200 hives) are located in the Benalla, Wangaratta and Chiltern areas. There are considerably more beekeepers within the North East region contributing to honey production who are amateur beekeepers (1 to 40 hives).

2001 AG Census

% of GVP

North East Region

Victoria

Benalla

11.4%

1.9%

Indigo Shire

31.0%

5.1%

Wangaratta (RC)

57.6%

9.6%

Wodonga (RC)

0.1%

0%


Source: ABS Agricultural Census - 2001

Projected apiculture industry growth

Honey production across the North East is expected to significantly increase in the next five years due to greater demand for pollination services. An estimated 17% of honey produced in Victoria was generated in the North East, placing the region in a good position for securing a share of the forecast industry growth.

Concurrently, farm gate prices for honey have also significantly risen over the past 2 years with the dry conditions contributing to a 100 % increase in the gross value of production (actual production volume data is not provided by ABS).

Source

Indicator

Comments

(ABS) AG Census and survey data

Growth in production volume 1997 to 2001

Production data unavailable.

Current profitability

Ranged from satisfactory to low.

5 year business plans

Reported mainly as no change, with one producer planning to increase production slightly and expand pollination services by 100%.

Surveys

5 year business outlook

Ranged from good to satisfactory.

Business planning / budgeting

Formal planning undertaken varied from no planning, to 1-year plans, to 5-year plans.

Age of producers

Ranged between the age brackets of 40 to 59 years.

Capital expenditure 2002-03 financial year

Represented between 38% and 60% of gross income, and ranged between $64,000 and $80,000.

The sustainability of the industry is reliant upon access to native flora, and competition in both export and domestic markets. With many of the hives in the North East on State reserves and forests there is likely to be greater pressure to use Crown land. The industry, within the region, will need to maintain its competitiveness and comparative advantage as a supplier of high quality honey.

Apiculture industry labour requirements

Detail

Labour requirements, if any, are low and tend to be limited to part time and casual employment of between 1 to 2 employees per farm. A more centralised approach to production has seen a slight increase in casual labour employed in the region centred on the towns. Approximately, the number of people employed is 50 persons. The majority of honey production in the region occurs between September and April.

Areas of indirect employment

Suppliers, transport providers, buyers - manufacturers.

Labour market issues

Labour costs make up between 0% and 25% of total costs of those beekeepers responding to the survey.

Apiculture industry marketing activities

Detail

Comments

Marketing undertaken

Is usually by the producer to promote their brand within the region and encourage gate sales using farmgate signage, and advertising (on occasion) in local papers.

Value adding activities

Bottling and labelling of honey - particularly for gate sales, and mead production.

Labels and brands

Walkabout Apiaries, Whitehead's Mead, Beechworth Honey

Beekeepers in Northeast Victoria tend to sell most of their honey to one single packer. A number of beekeepers may sell to independent packers in their immediate locality.

Apiculture industry strategic advantages and opportunities

  • Central to a variety of floral sources and pollination crops.
  • Positioned in a prime tourist area and within close proximity to highway/transport infrastructure.
  • Access to forest sites and usually a reliable rainfall zone.
  • Honey production will increase in the next five years with increased demand for pollination services. Pollination will be critical to many horticultural enterprises within the region and indeed the state. The impetus for more bees is being supported by research, which has found crop yields can be improved by 15 to 20 percent as a result of pollination.

Apiculture industry strategic disadvantages and impediments to growth

  • Lack of knowledge and training for replacement beekeepers or assistants, i.e. formal qualification. The aging of current beekeepers without any sign of new generation beekeepers entering into production.
  • Entry of new growers affected by lack of information in respect to physical, financial and socio-economic characteristics of honey production.
  • Competing with imported product in the retail market.
  • Access to unburnt bee sites. The damage to Peppermint Blue Gums and other eucalypts from the recent bushfires in the North East will impact on the industry for the next ten years.
  • Adverse seasonal conditions – particularly the recent years of low rainfall. This has lead to some beekeepers in the region turning to various value adding and subsidiary activities such as pollination services and mead production in order to remain viable.
 
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