Market Prospects for Honey

According to a new International Trade Centre study, world trade in honey rose significantly over the past decade, up by about 75% in volume and nearly 88% in current value terms during the 1975-1984 period, reaching US$250 million in 1984. Despite the expansion of exports, competition has stiffened greatly because of the increase in supplies of honey entering the international market. The trade is now more difficult to penetrate than in the early 1970’s, when exporters were in the comfortable position of operating in a seller’s market.

Developing countries have succeeded in establishing a strong position in this competitive market. They now account for over half of this trade, with three of them leading the list of suppliers. Developing countries should be able to increase their share even further, despite the stringent requirements of buyers, by carefully planning production and marketing activities.

The main world markets for honey are the Federal Republic of Germany, United States and Japan, which together bought about 64% of the world total in 1984. In addition to these three, other countries whose imports have mounted rapidly over the past decade are Italy, Netherlands, Spain, Austria, Saudi Arabia and Denmark. Although demand for honey may continue to expand during the coming period, the rate of increase will be slower. Markets forecast to show the swiftest growth in the future are those where low per capita consumption of honey is combined with high buying power, for example Japan, and where considerable advertising and sales promotion activities are undertaken. Fresh markets in newly industrializing countries are also expected to emerge as their living standards increase.

Among the developing regions, Asia (mainly China) and Central and South America are major sources of honey on the international market. Although Africa is a large producer, almost all of its supplies are consumed locally.

For further details of the new ITC report, see BOOKSHELF (page 10).