HONEY MARKET.

Waikato Times, Volume 109, Issue 18257, 19 February 1931, Page 10

HONEY MARKET.

THE NEED FOR QUALITY. CREATING A DEMAND. PROPAGANDA IN ENGLAND. An interesting review of the honey markets was given by Mr J. Jienloul, manager of the lloney Producers’ Association, before a gathering of apiarists at the annual field day of llie Auckland branch of the National Beekeepers’ Association at the ltuakura State Farm, yesterday. He pointed out that honey had not been subject to the same price slump as other primary products. Honey prices were, in fact, up to those prior to the slump. “The Dominion consumption of honey has," said the speaker, been steadily increasing and your organisation has 'been functioning satisfactorily to the extent that it has been removing the surplus from this market and disposing of it overseas successfully considering the* results and present conditions. 'But it would be rather extraordinary if we were having a full tide of prosperity when everything else was on the slump. “We also 1 have our difficulties. As you know we had abnormally big exports in ’2B and ’29 and if even-normal exports had followed last year and (his the problem of disposing of our big

surplus would have been difficult to , solve. Both the Honey Export Board f and the II.'P.A. have been and arc being , criticised for their expenditure in adj vertising. Neither organisation would f undertake this expenditure if there i was a better way. Advertising ex--1 pendituro has to be made before sales , and creates a liability that all would like to avoid. But let us consider the position. It is the sale of honey in , retail packages that is standing to us | to'-day, our own pack and sales to others who pack under a Now Zealand : brand. This makes our honey something of a proprietary line which is not affected by the open market conditions.

Price Not Ruling Factor. “Price in this method of selling is not the ruling factor. It is knowledge of our article and the extent to which it meets the requirements of consumers that regulates sales. This is illustrated by two incidents in honey selling. The oldest established firm of honey brokers in the United Kingdom who sometimes sell for us, were offering the two leading United States of America packs at the following prices: Boz glass jars, 5s sd; 14oz glass jars at 10s, and 320 z glass jars at 18s 6d. They told me they had not sold a case and were sending the honey back. “A Arm with 150 retail shops bought a special pack of' white New Zealand honey at 9s 6d, and were selling it at IOJd per lib jar. It was labelled .Empire honey, but their salesmen were telling customers it was New Zealand. They bought 500 cases before I sailed for London and at the

time of leaving had only taken delivery of 346 cases. “These incidents go to show that price alone does not recommend honey. The knowledge of the honey must 'be imparted to the people. “A different view must be taken of honey marketing in the Old Country from that which applies to this Dominion. Here the people know honey and largely use it and as only the best is put on this market they buy with confidence. “In the United Kingdom few people use honey and the honey that is offering is in many varieties so that those who use it would rather pay a fair price for what they know suits them than be disappointed with a cheaper article . Therefore, to increase sales of packed honey in the United Kingdom is not so much a matter of price as to get the people used to honey and to a knowledge of your particular honey. And this can only be done by publicity in the most direct form possible and the maintenance of a regular and good quality! Now that is where we have held and .can make progress with our export business.

Business Growing. “Let us consider the market for bulk sales. The packed sales business is growing and can be expanded increasingly and indefinitely as normal trade conditions return but the progress will be gradual. “The bulk sales business is not in such a happy position. Even if we pack all our honeys which are of good enough quality to put into the pack, we are still under our present regulations exporting a considerable quantity of honey which is not suitable for packing and at the present time can only be classed as manufacturing honey. “A look at the prices obtained by our competitors will give some idea of the difficulties in obtaining a satlsfac 7 lory price on the open market for these honeys. If you referred to cither ‘Gleanings in Bee Culture, or the ‘American Bee Journal,’ you will see that prices there just now are running from 4 cents to 6i cents per lb for light amber and white honeys. White Californian honey to-day is being offerer] on the United Kingdom market at 37s Gd per owl. Canada last year had a production staled as 30,fi00.000lbs, and an unsaleable surplus of I .OOO.OOOIhs. To help I hem

out of Ihcir difficulties the Government came to their assistance and through Ihe Wine Board the honey was purchased for wine making at 7 cents a lb. Latest information from Ihe United Kingdom staled that the Department of Agriculture had given the figures for Russian honey in the United Kingdom at 600 tons being offered at 27s Gd per cwt. The honeys referred to are of'good quality honeys and superior to our low standard qualities.

“It can he seen, therefore, that selling bulk honey in any large quantity at’ a price anything like uniform with the advances being paid is not very hopeful at Ihe present time. It is herein where our difficulties have

arisen. While our sales last year compare favourably with those of the proceeding two years the small difference being accounted for by special circumstances, Ihe maintenance of the quantity sold has been due to an inincrease in packed sales, Ihere being a proportionate falling off in bulk sales. Reply to Criticism. “In some criticism recently issued, the quantity of stocks we were holding in London has been commented upon and we have been criticised for carrying these stocks and not unloading on the open market. The prices previously quoted will give you some idea where we would have got io had we attempted to 1 follow out such a course. Whelher this would be advisable or not, we have to remember that this honey has been advanced on at a certain figure and these advances have been paid out to 1 producers. The acceptance of open market prices would result in a considerable loss and even at a competitive price would not have enabled us to clear slocks at a very rapid rate. It has to be remembered that the normal consumption of the United Kingdom market is

about 4000 tons per annum. Of this about .1000 tons is produced in the United Kingdom and from 3000 to 4000 tons imported, a part of which is re-exported. Taking out of this at least 1000 tons for manufacturing purposes and the 1000 tons of local production which will always gain precedence ,on the Home market, we have left about 2000 tons of imported honeys for table consumption. “It can bo seen, therefore, with this market’s requirements being exploited by the surplus of the whole world, the outlook for our future would not be very bright if we were to enter the scramble for this market’s demand on the open market. We can, however, as previously stated, expand our business indefinitely by packing and cultivating a demand for a good quality honey. Information gained by me in the United Kingdom was Dial honey consumption was increasing and 1 think wo can lake credit of being the main factor in that increase. When we entered the United Kingdom market in 11)14 'California. had the run of that market; now, according to Ihcir own .journals, California finds the demand from the United Kingdom practically negligible.

Looking to Now Zealand. “By last mall the Export Board’s London representative—Mr 11. W. Castle, reported that various other countries were looking to New Zealand for a lead and he had been approached for a conference by United States, Canada, Rhodesia and Jamacia. “To sum up—the position of our export market would have been quite normal (had it not been for the large exports of 1928 and ’29) and our prices would not have been in anyway affected at the present time. As it is with the small export of last year and the probable small export of this year it is hopeful that the export position will return to normal during the next twelve 'months.

“With improved trade conditions which we all hope will not be too long delayed, we will he in an excellent position lo develop our export business. Our new agents with their large organisation will he able to get a more direct contact with Ihe trade in the •United Kingdom and ihcir even more extensive export organisation will he able to place our honey in every corner of the world where a sale can be made.

“I wish to congratulate the Waikato on being the most fortunalc part of the Dominion Ibis year so far as honey production is concerned; elsewhere, with Ihe. exception of a few localities, crops have only been half to very poor. I estimate that the total production of this year will only be Ihree-quarlers of normal. “In view of the policy of the Honey Export Board being subjected to some

criticisms, the opportunity was taken of the Prime Minister’s visit to the United Kingdom asking him to enquire into (he marketing of honey. This report is now available and is wholly in support of the Board’s policy.”