Natural honey: Profitable export option for small businesses

27 Aug, 2023 - 00:08 0 Views
Natural honey: Profitable export option for small businesses Honey

The Sunday Mail

A RISE in chronic illnesses such as diabetes worldwide has challenged the global food industry to embrace better substitutes for oils, starches and sugar.

Trade Focus

Allan Majuru

Health-conscious consumers now opt for natural sugars such as honey, instead of artificial sweeteners.

This has naturally increased the demand for honey in particular, whose uses extend far beyond the kitchen table.

This presents numerous opportunities for local producers.

Honey is considered a rich source of antioxidants, essential vitamins and minerals. It is extensively used in the manufacture of pharmaceuticals, cosmetics and personal care products.

Apiculture, or beekeeping, is the practice of keeping and/or studying honey bee colonies in hives by individuals or communities. In Zimbabwe, the practice can be traced back to the 18th century in rock art found by historians.

The industry has grown remarkably since then. An increasing number of communities are embracing the practice as an alternative source of income, which also helps pollinate trees.

More communities are encouraged to adopt apiculture as it requires relatively low investment but guarantees good returns. Local production is currently very low, yet the multi-billion-dollar global honey industry presents vast opportunities.

To cover the production gap, ZimTrade is working with local producers in developing capabilities for exports, which will help position Zimbabwe as a favoured supplier of unique honey and related products to global markets.

Efforts are being made to establish honey export clusters across provinces where there is potential to export.

The product

Honey is a natural sweetener produced by bees using nectar from flowering plants.  It ranges from water white to dark brown or black in colour.

It has many variants, based on the type of nectar used to produce it, but the most common sources are acacia, alfalfa, buckwheat, clover plants and wildflower.

There are more than 300 mono-floral honey types around the world.

Wildflower honey has the highest market share of all variants. Its demand is projected to grow exponentially over the next decade. It is usually consumed in raw or processed form.

Various terms are used to describe honey on the market, which include raw, pure, organic and unfiltered.

For businesses seeking to venture into honey production, there is need to correctly identify the exact type of product required in international markets.

Pure honey refers to the type without other added ingredients. Whilst other ingredients like corn syrup may be added to honey to reduce costs in industrial use, pure honey does not have any. It is sold in its purest form.

Raw honey is also pure but differs in that it has not undergone pasteurisation through heating. As such, naturally occurring nutrients and enzymes are preserved.

Organic honey refers to the type produced from the pollen of organically grown plants, and no chemicals are used in the treatment of the bees.

Unfiltered honey has undergone heat processing to remove small particles. As such, it is no longer considered pure.

Honey production

The Zimbabwean climate is ideal for apiculture as tropical weather enables bees to thrive.

For one to start a beekeeping project, they need a place with flowering plants such as crops, indigenous forests or plantations, as well as good water supply. Where temperatures are too high, beekeepers must ensure there are trees within the vicinity. These are meant to cool down hive temperatures.

Two types of hives are commonly used in Zimbabwe. They the Kenyan top-bar hive and the Langstroth hive.

A standard Kenyan top-bar hive comes with a lid on a zinc sheet and a metal stand or hanging wires.

It can be purchased from local suppliers from between US$35 and US$40.

One can be used for up to 15 years, with a yield of up to 15 kilogrammes of comb honey per year.

A Langstroth hive costs between US$80 and US$100. It produces between 8kg and 10kg of pure honey per super, which is the box used for collecting honey.

One hive can have as many as five to seven supers, or even more, depending on the availability of forage (pollen and nectar). Currently, a kilogramme of comb honey sells for between US$1,50 and US$2,50, depending on its grade, taste and colour.  The cost of a kg of processed pure honey ranges from US$3 to US$8 (wholesale), depending on the market, availability and other factors.

It is critical to note that honey fetches higher prices when its properties have been analysed and its benefits and nutritional qualities are stated.

Zimbabwean honey is in demand because it is organic. Government has not approved the use of any chemicals on our bees.

Therefore, there is need for documented evidence to illustrate this when courting export markets.

Global honey industry

More than half the world’s honey production is from the Asia-Pacific region, with China traditionally being the world’s largest producer by tonnage, and accounting for almost 30 percent of the global honey output.

Global trade in natural honey has seen a notable increase, particularly in the recent past, owing to the Covid-19 pandemic, having grown from US$2,4 billion in 2017 to US$8,7 billion in 2021.

Top exporters are New Zealand, China, Argentina, Brazil, Germany, Ukraine, India, Spain, Vietnam, Hungary and Mexico.

In 2021, the top exporter of natural honey was New Zealand, which exported over US$327,2 million worth of the sweetener; followed by China, which exported US$260 million worth of the produce.

The total global honey market is forecast to grow from US$8,7 billion in 2021 to US$11,8 billion in 2028.

Leading importers of the sweet delight include the United States, Germany, Japan, France and the United Kingdom, who mostly use it in the food industry.

In terms of what potential exporters are likely to get, the price per tonne of honey in 2021 ranged from US$1 800 to US$23 667, depending on the type and market.  Some of the most expensive honey comes from New Zealand. It produces a unique type called manuka honey.

It is produced from the manuka tree or the South Sea myrtle tree, mostly found in that country and Australia.

This special honey is said to cure digestive ailments, including acid reflux and fungal infections.

It is also said to relieve upper respiratory conditions such as allergies, sinus issues and sore throat, among others.

Given the abundance of indigenous trees and forests in Zimbabwe, there are opportunities for local producers to conduct research and develop niche types of honey, and prove their unique qualities in order to fetch higher prices on the market.

Market considerations

European consumers prefer highly innovative food products with new flavours, which must be natural
and healthy, as well as being of low calories.

They also pay keen attention to food safety issues and sustainable trade, and are wary of the implications of genetically modified products.

Many importers in Europe currently demand honey with GMO-free certification, in addition to other requirements.

Organic certification is helpful, and labels stating this may need to be backed by documented proof.

Allan Majuru is the ZimTrade CEO.

 

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