Raw material cost increases pressure on honey companies

This year, driven by the high prices of agricultural and sideline products and the reduction of honey production, the cost of raw materials for honey has risen sharply. The emergence of low-priced adulterated honey has caused some old honey manufacturers to suffer both costs and the market.

According to industry insider Chen Yun, the cost of raw materials for the honey industry has risen sharply this year, and the cost of circulation has also increased, which has increased the pressure on the entire industry. The reporter learned from the information published on the official website of the China Bee Products Association that this year, due to extreme climate anomalies, it has caused a serious reduction in production of rapeseed, artichoke, and jujube honey. The output of rapeseed honey in normal years accounts for about 40% of the total honey production in the country; the honeysuckle honey and jujube honey in the national bottled retail market account for about 30%. Therefore, the above-mentioned reduction in production of several major honey species has resulted in the fact that the country’s honey production has been severely reduced, and it has a major impact on domestic and international honey markets.

According to preliminary statistics, the rapeseed honey in southern China was reduced by more than 70% last year. In May, due to the climate impact, the bee production in the major producing areas of the artichoke honey such as Henan, Shanxi, and Shanxi Province was seriously affected, and the output in these regions was above 70%. The jujube honey production in June continued the trend of reduction in production, and it is estimated that the reduction in production will be about 40%.”

The severe reduction in honey caused the purchase price of honey all the way to soar, and constantly set a new record. As of July, the purchase price of rapeseed honey has reached a maximum of 8,000 yuan/ton, which is 80% higher than last year; the volume of Chinese wolfberry honey is up to 25,000 to 26,000 yuan/ton, almost double from last year.

Under pressure from raw materials costs, domestic manufacturers have been constantly adjusting retail prices. China exports more than 60,000 tons of honey year round, but due to the contract, export prices have risen slightly every month. Both the honey purchase price and the sales price are rising, which is the inevitable trend of the honey market this year.

The reporter learned earlier that in the honey market in Guangzhou, Baoshengyuan, the oldest brand, had the largest increase in the price of honey per catty between 4 and 5 yuan, and the lowest price increase was also between 2 and 3 yuan per catty. Forced by cost pressures, this year's Guan Sheng Yuan honey products average price increase of 15% to 20%.

"For companies with responsibility, the raw materials are expensive. We would rather raise the prices and not make them. Under such circumstances, consumers can accept price increases," said a honey business person who declined to be named.