Eu Markets For African Honeye

EU MARKET OPPORTUNITIES FOR AFRICAN HONEY AND BEESWAX
Jackie McAdam Market Access Centre Traidcraft Exchange, UK August/September 2007
Traidcraft 2007
CONTENTS
INTRODUCTION SECTION 1. General market overview
1.1 HONEY Definitions and usage Production and consumption EU imports Specialist markets Fairtrade Organic Analysis of key markets and opportunities Prices Market structure 1.2 BEESWAX Definitions and usage Markets and imports
Page no. 1 2 2 4 5 `13 13 16 17 21 24 26 27 29
SECTION 2. Requirements, expectations and standards

2.1 HONEY Quality and legislation Product specification Samples Quality Documentation Packing for export Export logistics A commercial buyers requirements Fairtrade requirements Organic requirements 2.2 BEESWAX General requirements Packing for export
29 30 31 31 31 32 32 33 33 34
37 37 38 - 40
SECTION 3. Conclusions APPENDICES

1. 2. 3. 4. 5. 6. 7. 8. Contact details honey (Fairtrade) Contact details honey (mainstream) Contact details beeswax EU Directive for honey Residue Monitoring (honey) The African Honey Trade Workshop: Rowse Honey Fairtrade Standards Contact details organic certification
Introduction
Within the Traidcraft East Africa Programme two projects, running concurrently, are concerned with supporting beekeepers in Kenya and Tanzania respectively. One of the main drives is to develop market linkages and improve market access for honey and other bee products. Where work on the ground can maximise the products chances of success through inputs and cooperation on quality, business practice and logistics, it was acknowledged that there was a need to know more about the opportunities and constraints that may exist in target markets for African honey and bee products in particular. Therefore, as background for the work in-country a request was made for research into market opportunities for honey and beeswax in the European marketplace. Specific questions that were posed included: What is the market demand for different bee products, particularly honey What differentiation exists in the honey market? Are there particular segments in which African honey may have an advantage? What are the demand and trends within these segments? Which market segments offer the best opportunity for added value to the producer? For the main opportunities what are the buyer requirements which producers/exporters would need to meet?
This report sets out to address these questions, bearing in mind the particular characteristics of the African beekeeping context and of the honey it produces, as far as the researchers knowledge allows and respondents have advised. There is a great deal more to be explored and written in relation to honey as the market is much more complex than the beeswax market. So the main focus of this report has been on honey and all the issues confronting African honey in particular. Unfortunately resources did not permit an equal amount of time to be spent on the topic of beeswax, and by comparison the output is a little brief. The approach taken has been to look first at the EU market in general in terms of market size and trade statistics. Import figures are analysed to identify the countries that import the greatest volumes, and then supply countries are examined in order to identify the main exporters and the relative role of African suppliers in the wider picture. The focus is then narrowed down to explore market activity in the specialised Fairtrade and organic markets. Data on the leading importing countries is then collated with findings about national preferences, key players in the given markets and indications of potential as customers for African honey. The first section is then completed with information on prices in the different market sectors and the issues that can effect price, and finally a brief look at routes to market. Section 2 explores the requirements of the different market sectors mainstream, Fairtrade and organic looking in turn at EU legislation, product specifications, Fairtrade and organic standards, and buyers expectations in relation to export (packaging, logistics etc). Finally the various strands of enquiry are brought together to draw out conclusions about where the best opportunities may lie, or strategies that could be adopted in order to address the various challenges that confront exporters wanting to sell honey and (to a far lesser extent) beeswax into the European market.
EU Market Opportunities for African Honey and Beeswax August 2007
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SECTION 1.
1.1 HONEY
General market overview
Much of the information in this section is based on a recent market survey published by the CBI 1 in the Netherlands (Centre for the Promotion of Imports from Developing Countries) . However, due to the time required to collect, collate and publish trade statistics, at the time of publication (November 2006) the most recent figures available related to 2004. Therefore this 2 report also refers to additional data relating to 2005 and 2006 where possible. It is not considered necessary (or feasible) to include information on the market in every EU member country. Therefore this section looks initially and briefly at the EU as a whole, and then focuses on the key players in the marketplace, as it seems logical that the countries most active in importing honey present the best potential trade opportunities. However, it may be worthwhile considering that there are also a number of new EU member 3 countries . These are unlikely to have a significant presence in historical EU data, but they are markets that in many cases are opening up to new opportunities. Where relevant data is available some of these countries are also included, and although their markets for particular products may appear small at present there may be potential for considerable expansion in the future.
Definitions and usage

Honey is the unfermented, natural sweet substance produced by honeybees from the nectar of blossoms or from secretions of living parts of plants or excretions of plantsucking insects on the living parts of plants, which honeybees collect, transform and combine with specfic substances of their own, store and leave in the honeycomb to ripen and mature. Honey shall not have any objectionable flavour, aroma or taint absorbed from foreign matter during its production, harvseting, processing and storage and shall not contain natural plant toxins in an amount that may constitute hazard to health.
Codex Alimentarius. FAO / WHO (Standards, codes of practice & guidelines for food products established by the UN in 1963)
In the EU honey is classified as a food not a medicinal product, although its health giving properties are increasingly recognised. There are many types of honey, categorised according to origin and methods of processing and presentation (see Table 1on next page.) Honey has four main applications: Direct consumption by consumers, as a spread for bread or for cooking (called table honey) Ingredient for food manufacturing industry (called bakers or industrial honey) Ingredient for other manufactured products (eg toiletries etc) Ingredient for mead (honey wine)
85% of all honey is for direct consumption table honey sold to consumers by retailers. This is generally the better quality blended and polyfloral honeys and specialist monofloral honey from named specific origins. Other specialist honeys would be tropical
CBI Market Survey: The Honey and Beeswax Market in the EU. November 2006 Data obtained from the EU website DG Trade Expanding Exports Helpdesk: see http://export-help.cec.eu.int 3 2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia. 2007: Romania, Bulgaria
2
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and forest honey, fairtrade and organic. The specialist varieties fetch a better price than the bulk bakers honey used in the food industry.
TABLE 1. DEFINITIONS OF HONEY

By orgin Blossom honey Obtained predominantly from the nectar of flowers Monofloral Polyfloral Honeydew honey By type of processing Comb honey Chunk honey Drained honey Extracted honey Pressed honey Single botanical source Several botanical sources
Obtained from the secretions of plants Honey is still contained in the combs and is presented and sold as such. The comb and the honey are edible Containing one or more pieces of comb honey Obtained by draining decapped, broodless combs Obtained by centrifuging decapped, broodless combs Obtained by pressing broodless combs with or without application of moderate heat.
Source: European Union
Monofloral honeys are produced by bees gathering nectar from a single type of flower such as sunflower, acacia or clover. When it is not possible to isolate a single source, and the nectar comes from a number of different plants or blossoms, the honey is classified as polyfloral. Forest honey is classified as honeydew. The characteristics of honey from any given area may be influenced by a range of factors: - Bee variety (in both Europe and Africa the indigenous variety is Apis mellifera) - Source of nectar (variety of flowers or trees) - Humidity levels - Pollen content - Processing methods (eg use of smoke to calm the bees when harvesting honey Consumer preferences vary, and are generally variations of the type of honey with which they are most familiar and which is available in the domestic market. Unfortunately for African honey producers, Western European consumers are not generally familiar with dark or smokey-flavoured honeys, and many prefer a milder taste.
As well as varying in colours and flavours, honey may be liquid, solid or creamed. As stated, in the European market there is a preference for fairly pale coloured honeys but these may be clear (liquid) or set, and they are valued for a range of flavours, depending on the origin. The expectation is that a light coloured set honey is fairly smooth and creamy in consistency if it seems to be crystalising and feels too granular the perception is likely to be that it is old or deteriorating in quality. Both the flavour and the consistency are characteristics that could be acknowledged in the marketing process, giving them a positive spin as being special to African honeys due to their botanic and geographic origins and the way in which they are gathered. A significant proportion of honey sold at retail is blended, using various qualities and flavours from different sources. However, a range of single-origin (monofloral) specialist varieties are also sold, especially by specialist shops and independent retailers (as opposed to the large supermarkets) including both health stores and delicatessens. The initial perception is that these more unusual varieties of honey are beginning to become more popular, and this report will pursue a line of enquiry based on that premise.
Courtesy of Export Opportunities for African Organic Honey and Beeswax. EPOPA, January 2006. Page 1 of 42
TABLE 2. PREFERENCES OF HONEY TYPES, ADAPTED FROM CBI 19995 Belgium & Luxembourg UK Denmark France Germany Industrial sector Creamed honey, not too hard About 80% of honey is blended and a large part (about 50%) consists of creamed or set honey Light-coloured honey, but also a small demand for dark varieties Monofloral honey types such as rape, clover, acacia, fir, pine, rosemary, thyme, heather Liquid monofloral types pine, fir, rape, clover, heather Generally lower grade, especially low water /higher HMF content
Production and consumption

Many EU member countries have their own beekeeping traditions, and national consumption includes a certain proportion of home produced honey. To what extent each can meet their own market need, or require imports to supplement that need, varies from country to country and also fluctuates according to influences such as climate or disease among the bee population. Within the EU as a whole consumption has generally been increasing, driven by the health trend and a growing preference for pure and natural foods over those that have been refined and processed. Honey is one of the natural health products, valued for therapeutic and medicinal properties as well as its taste and its benefits over sweeteners such as refined sugar. The EU currently consumes approximately 22% of the worlds traded honey production, although this has fluctuated recently as a result of health scares because of imports of honey contaminated with substances prohibited by the EU6. The chart below presents a comparison of consumption per head (per capita) between six major EU markets
1.2
0.8
Kg per head
0.6
0.4
0.2
0 Germany Spain UK France Italy Netherlands
CHART 1. COMPARISON OF PER CAPITA CONSUMPTION OF HONEY IN KG

Ibid This was a particular problem relating to the major supply country , China. See Section 2 Requirements, Expectations and Standards.
6 5
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EU Imports
The EU produces around 50% of the honey (and beeswax) it uses, with the remainder imported. Most recently South American countries have been supplying the majority of EU honey imports, with Chinese supplies gradually recovering from the consequences of the ban imposed in 20027. The leading suppliers of honey to the EU are in fact Argentina, Germany and Hungary. Since China lost market share (see footnote 8, below) Argentina and Germany both consolidated their market share. Whereas China was the second largest supplier to the EU in 2001, four years later it had won back little market share, and in 2006 was still struggling to regain its footing in the international market. Table 3 puts honey exports from developing countries in context, showing percentage of total imports for 2001 to 2005 It is immediately evident that no African country is mentioned. However, it is definitely known that there are UK importers who source 8 honey from Africa . The probable explanation for this is that volumes are too small to be included in the calculations here a fact that in itself tells a story about African honey exports. Also the individual Developing Country %age figures (column 6) do not add up to the total shown in the Developing Country total %age column (collumn 5). This indicates that there are additional suppliers registering lower shares than those shown.)
TABLE 3. % OF IMPORTS OF HONEY FROM LEADING SUPPLY COUNTRIES, 2005 Total $ mln Total EU 25 338 Germany 131 Spain 18 UK 33 France Italy Netherlands 32 28 41 33 1 66 21 8 71 43 10 47 Intra EU %age share Extra EU %age share (excl. DC) DC * % share Individual DC %age share
Argentina (23%) Mexico (6%) Brazil (4%) Chile (3%) Argentina (32%) Mexico (12%) Chile (7%) Brazil (6%) Uraguay 5%) Argentina (40%) China (11%) Uraguay (5%) Cuba (3%) Brazil (3%) Argentina (16%) Brazil (9%) Mexico (7%) China (2%) Guatamala (2%) Argentina (15%) Chile (2%) Argentina (43%)
25 17
80 47
1 8
19 46
* DC = developing country
7
Argentina (8%) Chile (2%) 12 77 6 17 China (1%) Brazil (1%) Turkey (1%) Source: CBI Market Survey The Honey and Beeswax Markets in the EU
In February 2002 residues of a forbidden antibiotic chloramphenicol were found in samples of Chinese honey, which led to an instant ban by the EU. This ban was only recently lifted, by which time Chinese suppliers had lost significant credibility and market share. The ban also led to a shortage in world supply and forced prices up. China have now re-entered the market as a minor supplier, but exports to the EU continue to be slow. 8 Traidcraft and Tropical Forest Products, if no others. EU Market Opportunities for African Honey and Beeswax August 2007 Page 1 of 42
Additional more recent export/import statistics are available from the EU9, including figures for African supply countries. Table 5 (next page) shows the relative position of African honey exports for the years 2004 to 2006. The charts on the following pages (8 -12) provide data from the same source on the EU member countries that import the most honey, and should therefore represent the markets with the best opportunities (assuming all requirements can be met see Section 2). Analysis of the data on the following pages reveals certain key points regarding market growth or decline, and indication of market size, all of which provide clues as to where opportunities may or may not lie. However, it has to be kept in mind that what is needed is a market opportunity for a specific variety of honey, not simply honey in general. To identify a country (such as Germany) as having an active market for honey is only the first step what is needed is to establish whether the national taste would be open to trying a new flavour and an unfamilar product. This would also require interaction with an importer prepared to take a risk and launch an unknown product in the market.
As the EU does not include all European countries, it is possible there may be certain non-member states where opportunities may exist such as Switzerland. Data is not as readily available as for EU member countries, and further direct contact may be required with Swiss importers to establish whether there is market potential. It is also worth considering whether there may be potential for exporting to some of the new EU member countries. Ten new members joined the union as recently as 2004, and another two in 2007. This is significant for two reasons. In many cases those markets are now beginning to open up more to trade with the rest of the world (providing additional markets to be explored). On the other hand import data has only been collected by the EU for the years since membership. For both these reasons it is a little soon to know what oportunities exist. However, it is evident that in certain cases imports of honey, although still modest by comparison with the major players, have been increasing on an incremental basis over the past three years. It is suggested that this may indicate potential opportunities. The countries showing significant increases are Poland, the Czech Republic and Slovenia, as shown below in Table 4.
TABLE 4. TOTAL IMPORTS OF HONEY BY TOP 3 NEW EU MEMBER STATES, by value & volume, 2004-2006
Import value (1000 euro) 2004
Import Qty (1000 kg) 2004
Poland * Czech Republic Slovakia
4 407.88 2 519.84 913.91
6 697.35 2 780.76 1 392.89
8 766.00 4 284.84 1 776.05
3 597.00 1 100.10 597.00
5 074.40 1 578.70 955.31
7 634.20 2 387.50 1 183.30
* Poland is the only one of the three recorded as importing honey from Africa: in 2004, 18 thousand kilos were imported from Tanzania, at a value of 19.3 thousand Euros. There were no similar imports for subsequent years.
DG Trade EU Helpdesk http://export-help.cec.eu.int
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TABLE 5. TOTAL IMPORTS BY TOP 5 HONEY IMPORTING EU COUNTRIES (25), by value10 & volume, 2004-2006
Import value (1000 euro) 2004 Germany Extra EU * From Africa * Intra EU * Total imports Spain Extra EU From Africa Intra EU Total imports UK Extra EU From Africa Intra EU Total imports France Extra EU From Africa Intra EU Total imports Italy Extra EU From Africa Intra EU Total imports
15 522.23 nil 18 661.85 34 184.08 9 758.62 18.22
0.09%
140 989.18 303.59

0.16%
95 189.41 19.39
0.01%
85 446.63 34.03
0.03%
71 142 638.7 203.10 17 597.60 88 739.50
74 638.70 17.50 21 007.60 95 646.30
68 313.20 20.10 17 737.20 86 050.40
44 176.26 185 165.44
39 018.95 134 208.36
34 363.410 119 810.04
16 274.54 nil 8 899.18 25 173.72
11 574.25 nil 6 153.76 17 728.01
14 807.66 nil 7 873.18 7 873.18
9 925.60 nil 3 709.60 13 635.20
11 734.80 nil 3 088.00 14 822.80
13 492.00 nil 3 865.90 17 358.50
37 450.79 505.90
0.85%
31 738.49 346.97
0.68%
32 725.39 227.26
0.40%
18 260.30 291.80 7 263.50 25 523.80
21 164.10 190.60 7 219.4 28 383.50
19 477.40 126.40 9 992.2 29 469.60
22 110.94 59 561.73
19 383.57 51 122.06
23 804.59 56 529.98
7 368.33 nil 37 925.28 45 925.28
6 973.75 nil 28 329.44 35 303.19
9 848.77 nil 30 725.36 40 574.13
4 020.40 nil 13 716.00 17 736.40
5 955.90 nil 13 558.10 19 514.00
7 564.00 nil 14 517.10 22 081.10
10 646.75 0.67
>0.01%
8 632.20 nil 7 091.30 15 723.50
9 042.10 7.90 5 114.60 14 156.70
8 210.70 0.30 5 644.40 13 855.10
11 291.02 21 049.64
11 921.36 22 558.11
Extra EU = from outside the EU; Intra EU = from other EU member states; total = Extra EU + Intra EU. (Figures for imports from Africa are included in Extra EU not additional to.) %age figures shown in green highlighted boxes are a percentage of total imports
10 All trade figures quoted from the EU Help-Desk relate to CIF prices (not FOB) ie. Cost, Insurance and Freight, meaning all costs to the port of entry, but not including Customs clearanceor transport to the importers premises.
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GERMANY: HONEY IMPORTS. Charts 2.1 - 2.4

Germany honey imports from 5 main supply countries, by volume, 2004-2006
40000 45000
Germany honey imports from 5 main supply countries, by value, 2004-2006
35000
40000
30000
35000
30000 25000 Import Qty (1000 kg) Germany 2004 Import Qty (1000 kg) Germany 2005 Import Qty (1000 kg) Germany 2006 1000 euro 1000 kg 25000 Import Value (1000 EURO) Germany 2004 Import Value (1000 EURO) Germany 2005 Import Value (1000 EURO) Germany 2006
20000
20000
15000 15000 10000 10000 5000
5000
0 Argentina Brazil India Mexico Uruguay
0 Argentina Brazil India Mexico Uruguay
Germany honey imports from African countries, by volume, 2004-2006

180 158.2
Germany honey imports from African countries, by value, 2004-2006

250
217.62
160
200
140
120 Import Qty (1000 kg) Germany 2004 Import Qty (1000 kg) Germany 2005 Import Qty (1000 kg) Germany 2006
150 1000 euro
1000 kg
100
Import Value (1000 EURO) Germany 2004 Import Value (1000 EURO) Germany 2005 Import Value (1000 EURO) Germany 2006 85.97
80
100
60 44.9 40
50
20 0.8 0 South Africa Tanzania ,United Republic of Zambia 0.4 16.7 19.7
30.39 17.3 2.09 0 South Africa Tanzania ,United Republic of Zambia 3.64
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SPAIN: HONEY IMPORTS. Charts 3.1 - 3.2

Spain honey imports from 5 main suppliers, by volume, 2004-2006
8000
Spain honey imports from 5 main supply countries, by value, 2004-2006

9000
7000
8000
6000
7000
6000
5000 Import Qty (1000 kg) Spain 2004 Import Qty (1000 kg) Spain 2005 Import Qty (1000 kg) Spain 2006 1000 kg
1000 euro 5000 Import Value (1000 EURO) Spain 2004 Import Value (1000 EURO) Spain 2005 Import Value (1000 EURO) Spain 2006
4000
4000
3000
3000
2000
2000
1000
1000
0 Argentina Brazil Uruguay France Germany
0 Argentina Brazil Uruguay France Germany
Spain records no imports from any African countries.
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UK: HONEY IMPORTS. Charts 4.1 - 4.4

UK honey imports from 5 main supply countries, by volume, 2004-2006
8000 8000 10000 10000 9000 9000 8000 8000 6000 6000 7000 7000 5000 Import Qty (1000 kg) United Kingdom 2004 Import Qty Qty Import (1000 kg) kg) United United Kingdom Kingdom 2005 2005 (1000 Import Qty (1000 kg) United Kingdom 2006 1000 1000 euros euros 1000 1000 kg kg 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 2000 1000 1000 1000 0 0 Argentina Australia Brazil Mexico New Zealand Argentina Argentina Australia Australia Brazil Brazil Mexico Mexico New New Zealand Zealand
UK honey imports from 5 mail supply countries, by value, 2004-2006
7000
4000 4000
3000
Import Import Value Value (1000 EURO) EURO) United United Kingdom Kingdom 2004 2004 (1000 Import Import Value Value (1000 EURO) EURO) United United Kingdom Kingdom 2005 2005 (1000 Import Value Value Import (1000 EURO) EURO) United United Kingdom Kingdom 2006 2006 (1000
UK honey imports from African countries, by value, 2004-2006
UK honey imports from African countries, by volume, 2004-2006

400
200
350
346.97 339.39
190.6
180
300
174
160
250
224.29 Import Value (1000 EURO) Import Value (1000 (1000 EURO) EURO) Import Value (1000 (1000 EURO) EURO)
140
United Kingdom 2004 United United Kingdom Kingdom 2005 2005 United United Kingdom Kingdom 2006 2006
125.8
1000 1000 euro euro
120
117.8
200 200
166.51
150 150
100
80 60 40
Import Qty (1000 kg) United Kingdom Import Qty (1000 kg) United Kingdom Import Qty (1000 kg) United Kingdom
1000 1000 kg kg
2004
2005
2006
100
50 50
20
2.97 2.97 0 0 Kenya Kenya Tanzania ,United ,United Republic Republic of of Tanzania Zambia Zambia
0.6
0 Kenya Tanzania ,United Republic of Zambia
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FRANCE: HONEY IMPORTS. Charts 5.1 - 5.2

France honey imports from 5 main supply countries, by volume, 2004-2006
7000 14000
France honey imports from 5 main supply countries, by value, 2004-2006
6000
12000
5000
10000
3000
1000 euro
4000 1000 kg
Import Qty (1000 kg) France 2004 Import Qty (1000 kg) France 2005 Import Qty (1000 kg) France 2006
8000
6000
Import Value (1000 EURO) France 2004 Import Value (1000 EURO) France 2005 Import Value (1000 EURO) France 2006
2000
4000
1000
2000
0 Argentina Belgium Germany Hungary Spain
0 Argentina Belgium Germany Hungary Spain
There is a single record of honey imported from Africa:
Senegal in 2006: 500 kg / 5.040 thousand euros.
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ITALY: HONEY IMPORTS. Charts 6.1 6.2

Italy honey imports from 5 main supply countries, by volume, 2004-2006
9000 14000
Italy honey imports from main 5 supply countries, by value, 2004-2006
8000 12000 7000 10000 6000 Import Qty (1000 kg) Italy 2004 Import Qty (1000 kg) Italy 2005 Import Qty (1000 kg) Italy 2006 8000 Import Value (1000 EURO) Italy 2004 Import Value (1000 EURO) Italy 2005 Import Value (1000 EURO) Italy 2006
4000
1000 euro
1000 kg
5000
6000
3000 4000 2000 2000 1000
0 Argentina Bulgaria Germany Hungary Romania
0 Argentina Bulgaria Germany Hungary Romania
There are two records of honey imported from Africa:

Zambia, 2005: 7.9 thousand kgs / 18.22 thousand euros Kenya, 2006: 300 kgs / 670 euros
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Specialist markets: Fairtrade and organic

Honey may be classified as specialist because of its monofloral source and distinctive flavour, or its special properties, as in the case of Manuka honey from New Zealand11. The other two key specialisms are Fairtrade and organic. The statistical information obtained from import records groups all honey in one category (Natural honey) and there is no distinction between different quality honeys. Nor are there disaggregated figures for fairly traded or organic honey. These are all included in the figures shown in previous pages of this report. FAIRTRADE The price of honey depends on various production costs, different climate and vegetation zones, and the yield per bee colony. There have been fierce price battles on the market for honey that resulted in beekeepers being hardly able to live from their income on the conventional market. In this economic environment, Fairtrade guarantees stability for honey producers through a Minimum Price. It allows producers to cover their costs and contributes to more security for the beekeepers and their families.
Source: Bees for Development Journal, African Honey Trade Workshop
Fairtrade sales of honey in Europe (including non-EU member countries) were 1,330 12 metric tonnes in 2005, and 1.552 metric tonnes in 2006. By definition this relates to honey imorted from developing countries. On the basis of per capita purchase of Fairtrade food products overall, the top 5 European countries for Fairtrade13 are: 1. Switzerland 2. Luxembourg 3. UK 4. Denmark 5. Netherlands The 5 countries named are EU members with the exception of Switzerland. TABLE 6: SALES OF FAIRTRADE HONEY IN SELECTED EUROPEAN COUNTRIES, by value (1000 kg) 2005 Austria Belgium Denmark Finland France Germany Ireland Italy Luxembourg Netherlands Norway Spain Sweden Switzerland UK 4 63 12 11 66 362 0 79 4 49 0 0 0 385 296 2006 13 65 45 11 82 438 1 74 3 64 1 0 3 429 322 %age increase + 69.2 % + 3.0 % 73.3 % 0 + 5.0 % 17.4 % - 6.3 % -25.0 % + 23.4 % + 10.3 % + 8.1 %
11 Bees gather pollen from the flowers of the Manuka Bush, which is indigenous to New Zealand. The honey making process is enriched by the pollution free environment of New Zealand, and certain types of Manuka Honey which are produced are found to have distinct and valuable antibacterial properties. Scientific investigation has confirmed this characteristic, although it seems unclearjust what componentof the honeyis responsible. For RowseHoney Ltd, the major honey importer in the UK, Manuka honey is currently their best seller in spite of the fact that it apparently has a slightly antiseptic flavour which some find unpleasant . 12 13
Fairtrade Labelling Organisation (FLO) International www.fairtrade.net Global market review of fairtrade and ethical food forecasts to 2012
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These figures for sales of Fairtrade honey in 15 European countries in 2005 and 2006 (Table 6) show clearly where the greatest recent increases have been, as well as which countries impoted the largest amounts.
CHART 7. SALES VOLUMES OF FAIRTRADE CERTIFIED HONEY 2003 - 2006 500

450 400 350 300 250 200 150 100 50 0 Metric Tonnes (MT)
2003 2004 2005 2006
Austria
Germany
Netherlands
Source: FLO International, Bonn, Germany
The picture is slightly different when the preceding two years are also included see. Only in the case of Denmark. France and the UK has there been growth year on year. For other countries Fairtrade sales have been a little more erratic, and for Switzerland in particular the percentage incease is misleading because sales had in fact been falling for the previous two years, and had been higher in 2003 than they were in 2006. However, in no other cases were the fluctuations as extreme. In 2006 Switzerland imported 6 234.46 thousand worth of honey just from within the EU, as compared with 4 729 thousand in 2000. As Switzerland is not a member of the EU it has not been possible to access figures for Swiss imports from countries outside the EU, even from the main suppliers such as Argentina or Mexico. However, the figures above show that in 2006 sales of Fairtrade honey in Switzerland were second only to Germany and in the previous year were greater. According to the EU imports stats, Luxembourg imports honey almost exclusively from other EU member countries, and very little in total ( 669.17 thousand by value in 2006). The UK market for Fairtrade honey is the third largest in Europe, and is showing steady growth. The Netherlands is the tenth largest market for honey in the EU : ( 15,481.84 thousand value imports in 2006). Sales of Fairtrade honey are modest, but showed a 23.4% increase between 2005 and 2006. Much of this increase can be attributed to FTO succeeding in getting their Fairtrade honey into Dutch supermarkets, as well as an increase in its use as an ingredient in composite products.
14
14
CBI Market Survey: The Honey and Beeswax Market in the EU. November 2006 Page 16 of 42
Switzerland
Luxemburg
Denmark
Finland
Norway
Italy
Japan
Sweden
Belgium
UK
France
Ireland
By comparison, Denmark appears to offer no significant opportunity, with only 7,051.17. However, although still small, between 2005 and 2006 sales of Fairtrade honey in Denmark increased by over 73%. A FLO representative stated that Scandinavian countries in general are among those with potential to increase their markets for Fairtrade honey in the next few years. Austria records a similarly impressive increase, at more than 62%. An unofficial figure for 2007 indicates another 25% increase in the first 6 months, which would suggest that the rapid growth is continuing. As well as the producer having to be accredited by FLO, the international labelling organisation, any importer wishing to import and market that product under the Fairtrade label must also be listed by FLO. At present the list comprises 15 certified and 18 registered15 importers based in 9 countries:Austria Belgium France Germany Italy 1 3 6 6 4 Japan Netherlands Switzerland UK 1 2 4 6
These are listed in Appendix 1 and should be the first point of contact for honey exporters wishing to take the Fairtrade route. Whereas some importing businesses are exclusively fair trade operations, some of the larger companies are key players in the international honey trade, and deal with all kinds of honey from many different sources, whether Fairtrade, organic, both or neither. (See also Appendix 2 for additional importer contact details.) The sales figures indicate that the Fairtrade trend is continuing to grow, and although honey is not a key Fairtrade commodity in the same way that coffee, tea and cocoa are, it still plays a significant role, and presents opportunities as an ingredient in new product developments. One of its strengths is that unlike tea, coffee or cocoa honey is increasingly perceived as a healthy food and even, as previously mentioned, sometimes a functional or medicinal one. Good quality table honey is sold by specialist health food shops as well as supermarkets and other grocery retailers, while lower grade blended honey can be sold into the food manufacturing industry, albeit at lower prices.
Purchasing fairtrade could be seen as providing an emotional health benefit . Consumers are likely to identify more strongly with the aims of fairtrade if they are introduced to the many stories surrounding the process from working with the producers, to meeting the producers families, to seeing the end results of the fairtrade scheme after years of operation and most importantly, the differences it has made to the producers.
Global market review of fairtrade and ethical food Forecasts to 2012 Just-food.com / Aroq Ltd
The speaker at the Uganda workshop who described the Fairtrade position maintains that the countries with the greatest potential for growth in the Fairtrade honey market are: Belgium France Italy Scandinavian countries
15 The terminology refers to constraints set by FLO regarding use of the FT Mark and relationships with other FLO certified businesses.
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Other opportunities were described as: - Organic Fairtrade honey - New markets, namely catering, cosmetics, food industry
ORGANIC16 The market for organic products in western Europe continues to grow, even if growth is not notably rapid. The EPOPA report states the case quite clearly: Sizes and growth rates of the markets for organic products in the European Union differ markedly per country. Although the market in some countries is small, it is growing in all countries (SIPPO 2004). Germany is the front runner, with total retail sales of organic food and drink reaching 3.5 billion in 2004, which was an increase of 10% on the previous year. Organic products had a 2.3% market share of of total food sales, which was one of the highest in the EU. Only in Denmark and Austria does the organics market have a greater share. And these figures are expected to have increased more recently. Because of the size of its population, organic consumption is highest in Germany: Organic honey is widely available in the retail stores, and the market share is estimated to be the same as the general organic market share, which is approximately 2,500 tons. The market share will continue to increase in the future. The report describes the organic market in the UK as rather average (1.2% in 2002), but concedes that organic honey has a much higher share than organic foods overall. In the Netherlands the organic market share is slightly higher than the UK, at 1.4% - and expected to increase. A useful UK contact is a company called Tropical Forest Products (see Appendix 2), specialising in organic and wild honeys from Africa and elsewhere, as they were instrumental in developing organic criteria for honey, together with the Soil Association. It is worth noting that According to interviews with traders, the industrial market may absorb up to 50% of organic honey. This is much higher than the industrial share in conventional honey. An estimate of the total market for organic honey in Europe is around 6,500 tons per year (including both consumer and industrial use). Organic honey production in Europe is difficult, for several reasons. The cold climate has an adverse effect, pollution of land and air is widespread, and the varroa mite (not yet common in Africa) has to be treated with veterinary medicines that are not permitted. The situation in Africa is different in these respects and therefore should be more favourable for organic production.
This section draws heavily on Export Opportunities for African Honey and Beeswax, from EPOPA, as the report covers all aspects of the organic sector in detail, and it is unnecessary to repeat the research undertaken by its authors. EU Market Opportunities for African Honey and Beeswax August 2007 Page 18 of 42
16
Analysis of key markets & opportunities

The trading statistics tell part of a story, but some analysis is needed to extract the key points. In addition to this is the more subjective perspective of what the market wants and the nature of consumer preferences. All of these need to be considered when selecting markets to target for export (together with the more formal requirements set out in Section 2). The following comments are based on analysis of the trade figures provided in previous pages, responses from Fairtrade contacts in some European countries, and the observations of respondents involved in some capacity in the honey trade. Inevitably it has been easier to obtain the views of people based in the UK, and is therefore possible to present a more detailed picture than some of the other countries named. Germany The leading market for honey accounting for 27.3% of total honey consumption in the EU 17 in 2004 - at 83.2 thousand tonnes/1.2kg per head of population. The market for honey is mature, with honey being used as a sweetener in meals and drinks, an ingredient in baked products and a spread to put on bread. It is also the second largest producer of honey in the EU - estimated that in 2004/05 Germany was able to provide 29% of its national requirement. A wide variety of honey is available in Germany, varying from light to dark colour and from liquid to solid consistency. Some newly developed varieties are flavoured by infusing with vanilla, cinnamon and ginger. A domestic speciality is forest honey from the Bavarian Black Forest. The indications are that German consumers are less conservative in their tastes, so they may be more receptive to tropical forest honeys from Africa than consumers in some other EU countries. The major player in Germany is the honey packer Frsten-Reform , which owns the leading brand Langnese as well as the organic brand Biophar. Germany is also a leading market for organic products and the largest market for Fairtrade honey in the EU. (See Appendices 1 and 2 for details of importers general, organic and Fairtrade.) Honey imports in 2004 were higher than they have been for any year since, and supplies from all five main export countries have declined. It Is not possible to give a reason for this reduction. Imports of African honey show an erratic trend. The position seems to be that in 2004 19 Germany imported significant volumes from Tanzania and a small amount from Zambia. In 2005 there was a big reduction in the amount of honey imported from Tanzania and none from Zambia, and the following year Tanzania was dropped and Zambia provided a similar volume although at a slightly higher price. According to Gepa, the German fair trade company, sales of Fairtrade honey have been increasing by between 2 and 4% per year for several years. This honey is imported from Mexico (approximately 50%) Guatamala, Nicaragua and Chile (approximately 16% each). Gepa has never bought Fairtrade African honey. They considered it and tried samples, but the quality (flavour and HMF) was such that they did not follow up with an order. The perception is that the better quality honey is kept for the local market. The German honey market is described as conservative, with best sellers being set varieties with a subtle flavour. However, there is also a trend for some monofloral specialist honeys, and an Orange Blossom variety sells well. Gepa would be very interested in buying a fairly traded African honey, and have actively requested contact from a potential supplier:
18
17
CBI Market Survey: The Honey and Beeswax Market in the EU. November 2006 For contact details see Appendix 2 19 It must be remembered that the bar charts for imports from Africa are on a much larger scale than for imports from the rest of the world. By referring to the figures down the left axis it can be seen that imports from Tanzania were in fact still only a fraction of those from Latin American suppliers.
18
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They would like to add a good quality African honey to their range and estimate being able to take between 20 and 40 tons a year. If it could be certified organic, the opportunity would be for larger volumes still. If the honey cannot be certified according to FLO standards, it would be acceptable if conforming to Gepas own fair trade standards20.
For Gepa 30% of honey sales are for organic varieties a larger share than in the German mainstream. Fairly traded honey is available in German supermarkets, but only with FLO certification. In the organic honey market Allos is the brand leader, with 80% share. Allos has a wide variety of specialist honeys of different origins, and pack for private labels as well as their own brand. A more minor player is Biophar (see Frsten-Reform). The second largest market (40.2 thousand tonnes / 1.0kg per capita) and the top honey producer in the EU 82% self-sufficient. However, there are no recorded sales of Fairtrade certified honey by Spanish ATOs, and the country does not feature in any reports on organic food sales. The import figures for Spain indicate an extremely strong bias for Argentinian honey, with a significant increase in volumes between 2004 and 2006. The value figures do not rise and fall in line with volume, and the indication is that the price paid for Argentian honey fell noticably in 2005 and rose again in 2006. This demonstrates how prices can fluctuate from year to year (although it does not offer clues as to the underlying causes.) Spains second most important supply country is Germany, and France is also a significant supplier. However, it is not possible to surmise whether the imports are of German and French varieties of honey or are re-exports of Latin American (or other) varieties. Importantly, Spain has not imported any honey whatsoever from any African supply country. Nor is there any record of Fairtrade honey imports. It is therefore safe to assume that Spain is a doubtful target for promoting African honey. As no responses were received from Spanish contacts it is not possible to provide any indication of either Spanish consumer tastes or the strength of any organic trend. Third largest (31.1 thousand tonnes / 0.5kg consumption per capita) and has been increasing gradually for the past three years. The CBI report states that the increase is driven by increased interest in home-cooking as well as the health trend. In 2004 total sales were 26,600 tons, half of which was sold direct to consumers through the supermarkets, and more than a quarter was for industrial use. However, home production is low and the UK is only 12% self-sufficient. In terms of volumes imported, Argentina is the main supplier of honey to the UK, and Brazil and Mexico are the second largest. Comparison of value and volume indicate that Australia and New Zealand, although lying fourth and fifth in terms of volume, supply higher value honeys to the UK especially New Zealand. This increase in the value of New Zealand imports could be due in part to the growing popularity of Manuka honey, mentioned previously, as it is significantly more expensive than any other honeys.21 Sales of both organic and Fairtrade honey have also been gradually increasing. In 2004 organic honey accounted for 6.8% of the retail market, and sales through supermarkets increased by 28% between 2003 and 2004.
Spain
UK
20
It is not possible to present Gepas own fair trade criteria for honey here, but these should be available by contacting Stephan Beck at food@gepa.org ) 21 This is mentioned again here as it illustrate sclearly how the added value of a specialist honey with unique characteristics can impact on price and sales EU Market Opportunities for African Honey and Beeswax August 2007 Page 20 of 42
It is anticipated that both these niche sectors will continue to grow, with the market for organic honey forecast to grow by 15% to 20% over 2007 and 200822. The leading importer, with a market share of around 30% and the leading retail brand, is Rowse Honey Ltd, followed by the Gales brand owned by Premier Foods Ltd. Gales tends to cater for the lower end of the market, with two traditional honeys one clear and one set and does not offer either organic or Fairtrade. Rowse on the other hand has a range of specialist monofloral honeys, as well as organic and Fairtrade varieties Two other major companies that import and process honey (as well as other products) are Fuerst Day Lawson and Kimpton Brothers: these supply to the food industry and other manufacturing processes. The UK honey market is unique in one respect there is a honey importer who specialises in African forest honeys, as well as a range of other speciality honeys, both organic and non-organic, and Fairtrade and non-Fairtrade. The company has a history of importing Fairtrade honey from North Western Bee Products (NWBP) in Zambia, and by championing this specialist honey has carved out a small market niche for it in the UK23. (NWBP has recently been de-listed by FLO International, allegedly because of falling short of certain FLO standards. The suitability of the Fairtrade Standards for Honey to the African context and the African beekeeping tradition is a subject of some concern. See also page 34.) Per capita consumption is roughly the same as in the UK (0.5kg) and total consumption at 29.2 thousand tonnes. Fourth largest and 49% self-sufficient. Sales of Fairtrade honey are still small but increasing (66 tonnes in 2005). The greatest volume of honey imported by France is from Argentina, and this has risen steadily from 2004 to 2006. However, there are no other developing countries among the top 5 suppliers, and in terms of value the top supply countries are Germany, Hungary and Spain. From this, two factors might be deduced. The French taste preference is for European honeys, which are likely to be mild in both colour and flavour; the Argentinian honey is bought at a much lower price, which suggests it may be used in food manufacture rather than as a spread sold at retail to consumers. The only reference to honey imported from Africa is a tiny amount from Senegal in 2006, which may represent a trial shipment. Also it is probable that by preference France would import from African countries with which they have historical connections and where French is spoken, as seems to be the case with many products from Africa. Seventh largest and 44% self-sufficient (20.6 thousand tonnes / 0.2kg per capita). Fairtrade accounted for 102 tonnes (2004). Once again the largest volumes of imported honey come from Argentina, and in this instance they are also largest in value terms. Apart from this, other imports are fairly modest apart from those from Hungary. Similar implications could be drawn from this scenario as for France.
France
Italy
There have been only minimal imports of honey from any African country, although these were both countries where English is spoken. The Netherlands Virtually no home production (only 1.4% self-suffiency) and therefore has to import a larger proportion. However, it stands only tenth in terms of consumption, with per capita consumption of only 0.4kg and total consumption of 6.8 thousand tonnes. Two thirds of honey sold is liquid honey, although creamed varieties are beginning to become more popular. Also polyfloral honey accounts for three quarters of demand (as
22
23
Forecast according to Rowse Honey Ltd see Appendix 2 for contact details The story of Tropical Forest Products Ltd and NWBP is told by Mr David Wainright on the companys website at http://www.tropicalforest.com/article/introduction.htm EU Market Opportunities for African Honey and Beeswax August 2007 Page 21 of 42
opposed to speciality varieties). Specialist honeys are most likely to be sold through health-food stores rather than by mainstream grocery outlets. Fairtade honey in The Netherlands is sourced entirely from Guatamala and Chile, although at one time they used to import some from Tanzania (Tabora Beekeepers). According to FTO (Fair Trade Original, the major ATO) in The Netherlands, most honey sold is dark in colour, although the taste is fairly mild. There is a growing trend for monofloral honeys such as orange blossom or acacia, but consumers are described as conservative in their tastes. Even so, a new trend is acknowledged for specialist honey from specific origins or eco-systems, such as mountain honey, wild flower honey and tropical forest honey. The FTO contact believes that there could well be an opportunity for an African honey, but the chances of success would be increased if it was also organic and could be attirbuted to a specific botanical or geological origin. Dutch supermarkets do sell fairly traded honey, which as to be FLO certified and carry the FLO Mark.
The Langnese brand is also strong in The Netherlands. Other brands are Santusa and Het Zuiden, belonging to the Dutch importer De Traay BV (see also Appendix 2) which also supplies many own-label blended honeys to supermarkets. It is suggested that there are two additional countries that may also have potential for a specialist honey from Africa, even though they do not stand out as major EU importers: Austria On the basis of honey consumption, Austrias total consumption is only about half that of the UK. However, as will be shown later, although starting from a very low baseline, sales of Fairtrade honey show a particularly encouraging increase. There is a trend for organic food products in Austria, and honey with organic certification may have an increased chance of success in the market.
Austrian Fairtrade honey is sourced entirely from Latin America (Guatamala 40%, Chile 30%, Mexico 30%). The Fairtrade channels have not tested any African honey and consumers are described as being conservative in their tastes. Therefore it seems doubtful that the Austrian market is one to target with an African honey at this time. Switzerland Although not a member of the EU, Switzerland holds a significant position in European rankings for imports and sales of Fairtrade honey. A major honey importer in Switzerland is Narimpex, and they import and bottle Fairtrade certified honey for Max Havelaar. This is sold at retail through the two largest supermarkets the Co-op (www.coop.ch) and Migros (www.migros.ch). Responses to research questions were received from representatives of both Narimpex and Max Havelaar, the Fairtrade National Initiative. Both Fairtrade and non-Fairtrade honeys are sourced from Mexico, Chile, and Uraguay. In addition Fairtrade imports come from Nicaragua and Guatamala, and non-Fairtrade from Cuba, China, India, Vietnam and elsewhere. Neither channel has ever sourced honey from African countries. In the case of Narimpex, they did explore the possibility of an African honey at one time, but it did not meet the companys own quality standards and it was not considered competitive by comparison with a similar quality product from South America. It has not been possible to find out more about consumer tastes in Switzerland as questions on that subject were not answered.
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Prices
Honey is not traded on the stock exchange, so it is not possible to plot world prices in the same way as commodities like tea, coffee or sugar. Also, there are a multitude of different types and grades of honey, depending on the source and quality. The price depends on the production 24 costs, different climate and vegetation zones, and the yield per bee colony. EPOPAs report25 explores these differences in a little more detail: First of all there are different prices relating to the country of origin. Historically China supplies the lowest-priced honey while Argentina holds a middle position, with prices around US$400 per MT more than the Chinese product. In international trade honeys from Mexico and Australia fetch the highest prices, and specialities such as Manuka honey from New Zealand are very expensive although not traded in bulk. It seems to be a general fact that light-coloured honeys fetch a higher price than dark varieties which may be a reflection of demand (based on taste preferences and perceptions) rather than real quality issues. On international markets honey prices are often quoted in US dollars. The following table, from the EPOPA report, although using data from December 2005, indicates the comparative differences between honeys from different sources and of different appearances. TABLE 7. PRICES OF HONEY FROM VARIOUS ORIGINS, December 2005 in US$ / MT (CIF main European port) Type / Name White Extra-light amber Light amber 25 mm* 34 mm* 50 mm* 85 mm* Yucatan Orange blossom Extra-light/light amber Origin China China China Argentina Argentina Argentina Argentina Mexico Mexico Australia Prices 1,170 1,150 1,130 1,620 1,590 1,570 1,550 1,870 2,200 2,165 Lowest price 2005 1,120 1,100 1,080 1,420 1,310 1,275 1,250 1,625 1,950 2,120 Highest price 2005 1,390 1,370 1,350 1,825 1,700 1,650 1,585 1,925 2,200 2,900
Source: Agra-Net 2005a * Honey colour scale using the Pfund Grader machine
Prices are also affected by market demand, availability, seasonality, honey yields affected by climate, and so forth. When Chinese honey had to be withdrawn from the international market in 2002, the sudden drop in volumes of honey available meant that the prices quickly increased. This created opportunities for other suppliers to export larger volumes than previously and to profit from increased prices. The return of China to the marketplace is likely to have a reverse effect, with various supply countries competing for market share and for the best price they can achieve.
24 25
African Honey Trade Workshop report Bees for Development Jounral No. 81. December 2006. Export Opportunities for Organic African Honey and Beeswax, January 2006. Page 23 of 42
Predictably, specialist honeys earn premium prices, although this itself will also vary. Organic honey is valued more highly than conventional honey of the same quality, and the price premium ranges from US$200 to US$300 per ton. The Fairtrade premium is expressed slightly differently. FLO International set a Minimum Price, which is the lowest amount that can be paid for a Fairtrade honey, and to this is added a premium of US$0.15 (15 cents) per kilo. In addition, the Minimum Price varies slightly according to the quality of the honey, this quality being assessed in terms of moisture content. If a Fairtrade honey is also certified organic then an adidtional organic premium is also paid. TABLE 8. FAIRTRADE HONEY PRICING FRAMEWORK Fairtrade minimum FOB price A-grade B-grade 1.80 1.65 Fairtrade premium 0.15 0.15 Total Fairtrade price 1.95 1.80 Organic premium 0.15 0.15 Total Fairtrade organic price 2.10 1.95
The theory is that the Minimum Price protects producers from prices falling too low to cover their costs. Should the market price rise above that Minimum Price then the market price should apply, so that the producers are not at a disadvantage. If the market price remains above the Minimum Price over a certain length of time then the Minimum Price should be adjusted upward. In general terms this guarantees a good selling price to bee-keepers. However, this relies upon Fairtrade buyers taking account of current market prices, and treating the Minimum Price as exactly that rather than the recommended price. This should not happen, but those selling the honey need to be continually aware of fluctuations in the market price. It is also possible to calculate approximate historical price information using figures for 26 value and volume of imports by a given importing country . Division of the import value figure (in 1000 Euros) by the equivalent import volume figure (in 1000 kgs) produces an average price paid per kilo. This can provide some useful indicators. For example, this reveals a recurring variance between prices paid for honey imported from within the EU and from outside it, and also enables comparison between the major honey supplying countries extra-EU. In 2006, the UK paid average prices per kilo as follows: From Argentina From Brazil From Mexico From Kenya From Zambia From Germany 1.25 1.34 1.44 4.95 1.78 2.84
For Tanzania no figure is recorded for 2006 (or 2005), but in 2004 there was a small amount imported into the UK, for which the average price works out as 1.41 per kilo. The price shown for Kenya is an anomaly for which there is no apparent explanation. It would be mistaken to take it as meaning that the UK always pays in excess of international market prices for honey from Kenya. According to the statistics, there were no honey imports whatsoever from Kenya into the UK in the previous two years.
26
Available on-line for EU countries from the DG-trade HelpDesk at http://export-help.cec.eu.int Page 24 of 42
Italy was the only other country among the top five importers that imported any honey from Kenya and for this the price averaged out at 2.23 per kilo. A brief analysis of these prices would seem to suggest that African honeys demand a better price than those from the leading supply countries in South America. However, it is worth bearing in mind that because the mainstream market is generally unaccepting of the different flavour of African honeys, most of these imports from Africa are likely to have been fairly traded and therefore earned a Fairtrade premium. For each importing country it is possible to calculate the average price paid each year for honey from within the EU and from outside it. This of course varies from country to country because they all buy from a different set of exporting countries.
TABLE 9. AVERAGE PRICES PAID FOR HONEY FROM INTRA-EU & EXTRA-EU SOURCES, 2004-2006 (Euros per kilo, CIF) 2004 Intra-EU Extra-EU Germany Spain * UK France Italy 2.51 2.40 2.33 2.77 2.63 1.98 1.64 2.05 1.83 1.80 2005 Intra-EU Extra-EU 1.86 1.99 2.68 2.09 2.21 1.28 0.99 1.50 1.17 1.08 2006 Intra-EU Extra-EU 1.94 2.04 2.38 2.12 2.11 1.25 1.10 1.68 1.30 1.30
It is difficult to identify any pattern in these prices, as exceptions occur in each case. However, overall they might seem to suggest that the UK pays better prices for honey imported from outside the EU than some of the other top players. The UK is also one of the top importers of Fairtrade honey, so that is what the prices may be indicating. Averages are also distorted if there are large volumes at a very low-cost, so if a particular country also imports large amounts of poorer quality, cheap honey from outside the EU this will bring the average price down. Further analysis of more detailed statistics would be needed in order to arrive at more robust conclusions. However, these figures serve as a useful indicator of the range of prices for which hoey has been traded over the past three years.
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Market structure
The route to market for honey is fairly simple, and most imported product passes through the hands of specialist companies that import, blend and package the honey. This is then distributed to the consumer through different channels, depending upon the final point of sale and usage. The following table illustrates the options for distribution, in its simplest form. CHART 8. DISTRIBUTION CHAIN FOR HONEY
Consumers
Consumers
Consumers
Consumers
Consumers
Hyper- and supermarkets
Speciality shops/delicatessens
Individual beekeepers Industrial users (food industry/cosmetics)
Wholesalers
Importers / blenders / packers
Export cooperatives
Honey producers
Source: Honey and beeswax EU Survey 2003, CBI Netherlands
It can be seen that the point of contact for would be exporters will be an importer/packer in the target country. Details of these can be found in Appendix???. Typically it would appear that the importer/blender/packer companies tend to be relatively few but large. This is not necessarily good news for exporters operating on a relatively small scale, as they cannot supply the volumes required. Some large-scale importers blend and package honey and then re-export it to European neighbours. (This appears to be more applicable to blended honeys for industrial use.) This again makes analysis of import/export figures more difficult and therefore less precise. In reality the logistics involved in a shipment of honey reaching its destination is more complex than the table above suggests, as are some relationships between the parties concerned. A packer and blender may handle the logistics of importing, with the product delivered to their premises from the port of arrival but the company actually paying for the product and the import costs may be different. The packer will then process the honey and then forward it to the customer, who will in turn distribute it according to their particular strategic need.
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CHART 9. RELATIONSHIPS WITHIN THE DISTRIBUTION CHAIN (with allocation of costs at different stages)
Retailers Wholesalers
Mail order customers Fair traders (volunteer sales force) Fair trade retail shops Industry customers (processed products)
Packer / blender (may also be the importer) IMPORTER

Traidcraft
Costs incurred paid by importer/distributor Packaging and labelling for retail; storage, distribution; marketing/advertising etc Costs incurred paid by importer Rail/road haulage, storage, scientific testing and analysis, processing, packing - Ready For Sale (RFS) Costs incurred paid by importer Insurance, freight charge, service charge, fuel surcharge, import formalities, Customs examination, Port security charge, Port Health charge, container rental, unloading/loading fee, cartage, import duty (if applicable) etc etc Costs incurred (determined in-country) Production. Drums for transport. Haulage (road or rail) to exit port Handling charges/admin/duties payable etc in port Essential documentation / health certificates etc (Dependent upon local situation, distance to port, method of transport etc)
Shipping agents
FOB PRICE
Export Co-operative
Beekeepers/honey producers
Costs from collection to shipping point will depend upon intermediary processors, transport method and cost, and proximity of the port of departure. These costs can only be identified by enquiries made in-country. Whatever these costs are they need to be calculated into the final asking price. More information on international terminology for different prices (Incoterms) is given in Section 2 in relation to buyer expectations.
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1.2
BEESWAX
Definitions and usage

Beeswax is produced by worker bees and is a by-product of honey. It is taken from extracted honeycombs, old or damaged combs, stored combs, and from the cappings that cover the cells containing honey. The cappings contain primary wax, like newly made combs. Beeswax is purified by melting it with solar wax extractor (without water) and straining, or in a water bath or by steam extraction. It is then separated from the water once it has cooled and separated. Composition and quality of beeswax depend upon a number of issues the type of combs, the species of bees, and the local geography and vegetation. Properties Beeswax is valued for its melting and moulding properties, as well as the accompanying fragrance of honey. It melts at approximately 64C (147F), although this may vary according to composition. It is mouldable at temperatures from 35-40C (human body temperature) and is therefore very useful in the cosmetics industry. Usage and applications
27
As mentioned, beeswax is used by the cosmetics industry, combined with other ingredients in a range of skin products for the face and body. However, for this use the wax is modified to improve its properties It has also been used traditionally in varnishes, paints and polishes, especially for wooden furniture. The development of various synthetic waxes, which are cheaper to produce, has meant that the use of beeswax has been in decline. However, it is now enjoying renewed popularity in response to the consumer trend in favour of natural products, although the price is still too high by comparison for it to be used very widely. It is also used for a number of crafts applications, such as lost was casting for sculptures and jewellery making, to protect and nourish wooden items such as carvings and bowls. Beeswax in blocks or sheets is used in candle making a craft which has also become increasingly popular in recent years. So some suppliers sell to candle making supply companies and individuals. Wax is also used by beekeepers in importing countries for foundation sheets in their hives. This may mean that other market needs have to be met by imported beeswax. According to estimates by the CBI in the Netherlands28, imported beeswax is used as an ingredient by industry in the following ratios:
Cosmetics Pharmaceuticals & natural medicine Candle making Other uses, including wax foundation sheets
30 % 30% 20% 20%
27
For more information on the uses of beeswax, and the potential for added value, see Value-added products from bee-keeping (except for market info) By R Krell FAO Agricultural Services Bulletin (FAO). 1010-1365, no. 124. 1996 See http://www.fao.org/docrep/w0076e/w0076e00.htm 28 Honey and Beeswax EU Market Survey 2002. EU Market Opportunities for African Honey and Beeswax August 2007 Page 28 of 42
Markets & imports

Compared to the market for honey , the market for beeswax in Europe is small. According to the EPOPA report In 2003, the total market was 9,850 tons. The production of beswax in the European Union was 3,515 tons; an additional 6,335 tons was imported. Spain has the largest market for beeswax, but it produces 90% itself. Germany, on the other hand, produces little beeswax and has to import 76% of its needed volume. Germany, therefore, is the leading import country for beeswax in the European Union. TABLE 10. MARKETS FOR BEESWAX IN THE EU, 2003 (in tons). Import* EU Total Germany France Greece UK Italy Spain Belgium Sweden Portugal Finland Austria 6,335 2,363 1,243 909 731 427 378 168 23 32 27 20 Production 3,515 0 400 0 90 2,260 50 0 275 0 0 Total 9,850 2,363 1,643 909 731 517 2,638 218 23 307 27 20 Export 1,868 919 495 2 102 72 113 0 4 10 10 7 Consumption** 7,982 1,444 1,148 907 629 445 2,525 218 19 297 17 13
Source: EPOPA / FAOSTAT 2005, Eurostat 2005
For industrial use beeswax needs to have been refined. Approximately 60% of imported wax is crude and needs to be refined in the importing country. There are a small number of specialist refining companies (see Appendix 3) 71% of EU beeswax imports comes from outside the EU, and African countries do play a slightly more visible role than in the honey market, as shown in Table 11 below.
TABLE 11. IMPORTS OF BEESWAX FROM COUNTRIES OUTSIDE THE EU (in tons).
1999 2000 2001 2002 2003 Share of extra EU imports 2003 EXTRA-EUR China USA Central Africa Ethiopia Ivory Coast Australia Ukraine Tanzania Argentina Rest 3,828 1,908 123 128 52 33 134 460 38 48 3,974 1,881 120 103 119 99 136 426 193 64 4,194 2,362 81 120 17 70 193 362 96 239 3,777 2,255 308 104 109 103 110 170 57 116 4,496 3,208 251 144 129 124 102 80 76 71 71% 6% 3% 3% 3% 2% 2% 2% 2% 6% Source: EPOPA / Eurostat 2005
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There is a small market for organic beeswax, mainly for use in the manufacture of organic cosmetics which, although still a very small niche market, is gradually raising its profile as a result of growing health concerns about the levels of chemicals absorbed through the skin and hair in so many of the beauty products on the market. However, it is expected that the market for organic beeswax will grow as more applications are developed.
Between 1999 and 2003 the volume of imports increased while the value decreased, indicating a fall in prices. It is possible to compare actual figures for EU imports between 2004 and 2006, and these show further significant increases in volume (although in 2006 there appears to have been a slight drop which is contrary to recent trends).
TABLE 12. TOTAL EU IMPORTS FROM OUTSIDE THE EU, 2003 2006 Beeswax and other insect waxes, whether or not refined or coloured
Import value (1000 euros) 2003 7 173.75 Import value (1000 euros) 2004 10 178.83 Import value (1000 euros) 2005 12 797.82 Import value (1000 euros) 2006 12 067.47 Import volume (1000 kg) 2003 3 361.10 Import volume (1000 kg) 2004 4 533.80 Import volume (1000 kg) 2005 4 548.80 Import volume (1000 kg) 2006 3 851.10
Beeswax, not being used for food products, is not subject to such rigorous controls as honey, and therefore was not considered to be a victim of the EU ban on honey from China. However, a decline in price at the time of the honey ban, partnered with the fact that China is the biggest supplier might suggest that lower prices were being paid for beeswax at that time, even if it was not justified. The EPOPA report indicated a downward trend in beeswax prices from 1999 to 2003. However, using the import figures shown above for a quick calculation of average price, the trend appears to have reversed. Demand has risen and it is possible this has been to the advantage of suppliers. The average price in 2003 was 2.13/kg, rising to 2.24/kg in 2004, 2.81/kg in 2005 and 3.13/kg in 2006.
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SECTION 2. Requirements, expectations & standards

2.1 HONEY
Quality and legislation

By comparison with many foodstuffs honey is regarded as a safe product, on the basis that it is naturally produced and is subjected to very little human intervention or processing. However there are certain pitfalls or constraints to be aware of, and two particular concerns when selling to the EU. This statement is a little simplistic as there are certainly more than two EU directives and legislative documents to be aware of, but these all relate to the key requirement for purity and absence of contamination. These are ensured by:1. Monitoring residue levels (permitted and prohibited chemicals) 2. Obtaining a veterinary Health Certificate approving quality control and processing standards in line with EU requirements and standards primarily by having a HACCP system in place The requirements below are set out in Directive 2002/99/EC which applies to the imports of products of animal origin from third countries (therefore applicable to a variety of food
products and not only to honey).
For any exports of honey to any EU member country to be accepted, the country of export must be included on the list of third countries. Acceptance on the list is a matter for national governments not individual businesses.
In order to become listed, third countries should submit a residues monitoring plan which offers animal health guarantees equivalent to those provided for by Community legislation (ie. Council Directive 96/23/EC) for domestic production. Once the plans are favourably evaluated by the European Commission, the formal approval of the plan follows by means of a Commission Decision. Third countries listed in this Commission decision are then eligible to export those commodities to the EU for which they are listed.
CBI, Netherlands. EU legislation: Pre-conditions for export of honey to the EU.
The latest list of so-called 'third' countries - those authorised to import honey into the EU (issued on 7 March 2006) is as follows: Argentina, Australia, Belize, Bulgaria, Canada, Chile, China, Croatia, Cuba, El Salvador, Guatemala, India, Israel, Jamaica, Kenya, Kyrgyzstan, Mexico, Montenegro, New Zealand, Nicaragua, Norway, Paraguay, Pitcairn Islands, Romania, Russia, San Marino, Serbia, South Africa, Switzerland, Tanzania, Taiwan, Thailand, Turkey, Uganda, Ukraine, Uruguay, USA, Vietnam and Zambia. Ethiopia is in the process of putting plans in place and applying for inclusion in the list.
The legislation states the substances for which there are Maximum Residue Limits (MRLs) (set down in Regulation EEC 2377/90) as well as those that are forbidden. There are certain veterinary drug residues for which no MRL is needed as the substances are not harmful to human health: - Lactic acid - Formic acid - Eucalyptus - Camphor - Menthol - Thymol - Fluvalinate - Phenol
Page 31 of 42
The list of substances which are not allowed at any level (therefore no MRL applicable) include: - Chloramphenicol - Chloroform - Chlorpromazine - Colchicines - Dapson - Dimetridazol - Metronidazol - Nitrofuran
The antibiotic chloramphenicol was the substance found in honey from China in 2002, which led to an EU ban on all honey from China for three years. It is considered generally by people in the trade that because African honey is relatively disease free there is little likelihood of there being a need for such chemicals. However, it is still necessary for this to be proved by the exporting country having the necessary systems in place. In addition to these controls, every shipment of honey must be accompanied by a health certificate stamped by a local veterinary officer. This certificate refers to the processes rather than the product itself, although poor health and safety standards could result in honey becoming contaminated with bacteria, dust, insects etc. In order to match the standards required of EU production, the main requirement of this legislation is that whoever packs the honey for export must have a HACCP29 system in place.
Product specification
Under EU Regulations30 the following specification states clearly the parameters for the key characteristics of honey, and these should be adhered to. Fructose and glucose content (sum of both): Blossom honey not less than 60% or 60g/100g Honeydew honey not less than 45% or45g/100g Sucrose content In general not more than 5% or 5g/100g (some variations depending on pollen source) Moisture content31 In general Bakers honey in general Water insoluble content In general Pressed honey not more than 20% not more than 23% not more than 0.1% or 0.1g/100g not more than 0.5% or 0.5g/100g
Electrical conductivity In general, and blends not more than 0.8 mS/cm Honeydew and chestnut honey, and blends not less than 0.8 mS/cm (some exceptions depending on pollen source) Free acid In general Bakers honey not more than 50 milli-equivalents per 1000g not more than 80 milli-equivalents per 1000g
29
HACCP Hazard analysis Critical Control Points. See http://www.bsi-global.com/en/Assessment-and-certification-services/management-systems/Standards-andSchemes/HACCP/

30
As set out in the EU honey directive: Council Directive 2001/110/EC, December 2001. EU regulations for honey in particular have been subject to change. The specifications presented here are accurate at the time of writing but it is advisable to check with the appropriate authority regarding EU regulations from time to time. See also Appendices 4 and 5.
A high moisture level increases the risk of fermentation, and above 20% any honey will deteriorate. Moisture levels are measured with a refractometer.
EU Market Opportunities for African Honey and Beeswax August 2007 Page 32 of 42
31
Diastase32 activity & HMF after processing & blending (a) Diastase activity (Schade scale) In general, except bakers honey not less than 8 Honeys with low natural enzyme and an HMF content of not more than 15mg/kg not less than 3 33 (b) HMF In general, except bakers honey not more than 40mg/kg (subject to the provisions of (a) second indent Honeys of declared origin from regions with tropical climate and blends of these honeys not more than 80mg/kg In addition the regulations state that, with the exception of bakers honey, the product should have no foreign taste or odour, should not have fermented or begun to ferment, and should not have been exposed to heat that has destroyed or inactivated the natural enzymes. The latter two can be controlled with quality control systems. But the question of taste is a little more subjective, once more raising the issue of the unique flavour of some African honeys. Personally I dont think the UK palate is ready for the very dark strong flavoured honeys especially if they are smokey. There will be a limited demand but there are already similar honeys in the multiples marketed as Forest honey. There is a greater demand in Germany and mainland Europe where there are local origins of forest honeys . Laurie Keys, Garvin Honey Company (mail order), UK
Samples
Importers always want to see a sample. They will decide to buy on the basis of the sample - and it is absolutely essential that the honey delivered should match it. Samples should be of 500gms. Great care must be taken to ensure the container will not break or leak in transit.
Quality
It is paramount that the honey is pure, clean, ie free from flies, insects, feathers etc, and uniform in quality. Importers are also concerned about taste and aroma as well as colour. Liquid honey is preferred, so honey should be exposed to heat as infrequently as possible. This means that storage and transport time in the producing country should be kept to a minimum to avoid crystallising. In hot countries honey should ALWAYS be stored sheltered from the sun and where air can circulate around the drums. Remember that heat makes the HMF values increase. It is vital that the honey should be exported as soon as possible after production
Documentation
Health Certificate: Required in all EU countries, signed by the competent authority in the 34 country of origin . It should be remembered that honey is an animal product.
Diastase is an enzyme used by the bees to transform nectar into honey. Heat destroys it, so a low level indicates honey that is not fresh. 33 HMF: Hydroxy Methyl Furfuraldehyde . HMF level is an indicator of quality. Previously it was thought HMF appeared in honey as a result of adulteration with other sugars, but it appears in low quantities in pure, fresh honey and it develops with the decomposition of the fructose in the presence of acids. It will form more rapidly in high temperatures (duplicated in five days at 48C). So the higher the HMF the more likely it is that the honey is not fresh and has been stored in bad conditions. 34 For each shipment received by an importer a sample is also sent to a laboratory for analysis to confirm the specification and ensure the honey has not deteriorated or been contaminated in transit. EU Market Opportunities for African Honey and Beeswax August 2007 Page 33 of 42
32
Packing List: Honey is purchased on actual weight so the weight of each numbered barrel should be noted on the Packing List.
Packing for export

Export Packing: in steel drums (described variously as containing between 295 kg and 330 kg, though this may simply be the difference between net and gross weights) with the following conditions: o Food quality o Completely clean and free from residual taste or smells of other products o The inside phenolised, preferably lacquered and moisture-proof. Or it can be coated with beeswax if the drums are unlacquered. Paraffin wax should not be used for coating o Drums that have previously contained chemicals should NEVER be used. o Free of dents and rust o Rubber seal around the closure. o A 5cms space to be left when filling the drums to allow for expansion. o All drums should be marked with consecutive numbers Pre-packed honey: There is little demand for this from importers as it is not usually economically viable because: o Freight costs are higher o Packing materials (glass or plastic jars, labels, lids etc) may have to be imported if it has crystallised when it reaches the final consumer it cannot be liquefied again, as it could be if in bulk o Labels have to comply with the regulations in the importing countries regarding the information to be printed on them o Size and style of jars must be acceptable to the local consumers, and this varies.
Export logistics
In terms of volume a major European importer will generally expect to be able to buy a minimum of 60 tonnes a year from a single supplier, and usually more. Typical trade consists of 9,000 to 10,000 tonnes per year to one importer (though from several sources) Importers generally deal in container loads as it is not cost effective to deal in smaller quantities. Typically a small container (20ft) will carry 18 tonnes comprising 62 drums containing 295kg per drum. One UK importer referred to shipments of 20 tonnes contained in 300 kg drums, so there does appear to be a little variation. One option could be to consolidate a shipment by sharing a container with another exporter from the same port but a difficult and sensitive arrangement to handle. As mentioned in Section 1, prices per container-load may be quoted as a landed price, 35 CIF or FOB . Some importers do not want to become involved in organising shipment from an exporting port, and the price they pay reflects their expectation that the exporter will organise and pay for the major freight costs and appropriate insurance. It is essential to always be clear about these terms and the price quoted, from the outset.
35
Landed price includes Customs clearance, import duty and carriage to the customers premise CIF covers all costs to the point of landing in the port of entry, but not Customs duty or onward transport FOB covers only the price of the product itself plus the cost of getting it to the point of departure and on board ship, so that the buyer than has to cover the additional freight and insurance costs to the port of entry and onward. Page 34 of 42
A commercial buyers requirements

Bees for Developments second African Honey Trade Workshop, which took place in October 2006, was sponsored by a major UK honey importer, processor and distributor Rowse Honey Ltd. Mr Peter Marshal was spokesman for the company, giving a speech entitled What Rowse Honey needs from potential traders. He has also been consulted in the course of this research. His speech at the workshop briefly set out 8 key points explaining just what is expected of a honey supplier when selling to a large commercial company such as Rowse. The 8 points endorsed the main points of this report, and concerned: Compliance with EU & UK legislation Flavour and colour (consumer preferences, as already discussed in Section 1. Some consumers value African honey for its distinctive taste while others, such as the MD of 36 Rowse himself, for example, see it as totally negative.) Traceability (back to specific beekeeper(s) who supplied the honey) Professionalism (ie good communication and customer service) Packaging Terms (especially CIF price) Auditing and monitoring Price (to be negotiated per shipment)
The full transcript of the speech can be found in Appendix 6 or on the Bees for Development website - http://www.beesfordevelopment.org/info/proceedings_HTW2/rowse_honey.htm
Fairtrade requirements
There was also a session at the Uganda Workshop to explain Fairtrade standards and labelling, and the Fairtrade process, delivered by the FLO representative for Rwanda and Uganda. This included a brief explanation of the different types of standards with which it is necessary to comply in order to be certified as a Fairtrade supplier. Social Standards - Small farmers / Hired Labour - Generic / Product Specific - Minimum requirements / Progress requirements Economic Standards - Generic (not for trade yet) / Product specific - Minimum price and FT Premium - Pre-financing - Medium/long term commitment Environmental Standards - Generic / Product specific
There are standards for three possible worker scenarios: Smallholder Standards - for small farmer organisations who cultivate their land Hired Labour Standards - for companies dependant on hired workers Contract Production Standards - for small-scale farmers with no formal group structure who cultivate their land or have some hired workers currently only applicable to cotton or rice farmers
Details of Fairtrade Standards are given in Appendix 7, and further information can be found on the FLO Certification website (at http://www.fairtrade.net/product_standards.html) or by 37 contacting FLO .
36
There is a certain irony in the fact that it is reported that the MD of Rowse, sponsors of the Uganda workshop, rejected out of hand a sample of African honey (source unspecified) on the basis of its smokey taste. However, the company is open to sampling other African honeys if the flavour can be improved. Page 35 of 42
It has become evident to those involved in the beekeeping business in Africa that the standards for honey and beekeepers have been developed on the basis of a European business model, and some of the requirements simply are not feasible for the African context. For example, different beekeeping groups tend to be located around villages that are long distances from each other, with few means of transport or communication. Yet FLO standards require groups to meet regularly for monitoring or reporting purposes. The system for applying for Fairtrade certification is illustrated in the chart below 38 (courtesy of the FLO representative for Rwanda and Uganda)
CHART 10. THE FAIRTRADE CERTIFICATION PROCESS
Organic requirements
As a natural and healthy product, honey is of particular interest to consumers of organic food products. African wild honeys may be regarded as organic by default, but it is only with official accreditation that the extra premium can be earned (anywhere between 10% and 20% extra, depending upon the quality of the particular honey). This requires annual inspection by an approved certifying body and a fee is payable by the organisation being inspected and certified. (The other players in the supply chain, such as importers, blenders and packers, are also inspected and charged a fee for certification.) In order to be officially recognised as organic by the EU, standards include the following:Crops on which the bees feed must not have been chemically treated Bees should be able to survive on self-produced honey, and should therefore not be fed sugar to increase honey production
Ose Nielsen, Producer Certification Manager, Africa - o.nielsen@flo-cert.net; Ines Mayorga-Beck,Trade Certification Analyst, Honey i.mayorga-beck@flo-cert.net 38 From the paper about the Fairtrade Process delivered at the Uganda workshop, October 2006 available on the Bees for Development website at http://www.beesfordevelopment.org/info/proceedings_HTW2/fair_trade_process.htm EU Market Opportunities for African Honey and Beeswax August 2007 Page 36 of 42
37
There should not be an airport or main road nearby (which would contaminate the air and vegetation with chemicals from carbon fuel consumption) Diseases must not be treated with veterinary medicines, only with approved 39 organic substances (control of minimum residue levels or MRLs) Bees must not be stupefied while the honey is harvested Although beekeeping in Africa would by its very nature tend to be organic there are a number of official requirements. However, it is pointed out40 that .. EU organic standards (that) have been created for European beekeeping, and may be difficult to apply in Africa. This area requires dialogues between European certifiers and African beekeepers to understand what an appropriate application of organic standards can look like. For example, current standards require a map of the apiary which is hardly feasible when the apiary consists of local style hives placed in trees and forests spread over a wide area. Another stipulation concerns the proximity of a main road, not allowing for the fact that by comparison with busy European roads there may in fact be very little traffic using that road: it does not allow for the fact that the traffic is the potential pollutant, not the nearness of the road. o Another contentious area is the presence of a certain prohibited antibiotic in honey, when it is a distinct (but unproven) possibility that this occurs naturally and is not the result of illegal medication of the bees. This issue arose when low levels of streptomycin were detected in some Zambian honey. EU regulations state that antibiotic levels in honey must be zero, even though streptomycin is in fact permitted in other animal products and does not represent a public health issue. It is pointed out that in many African societies honey is regarded as a medicine rather than a food and it could be the presence of just such antibiotics that underlie this 41 tradition. It seems that some buyers have a slightly ambiguous attitude towards this question of organic validation. As already mentioned, the general perception is that African honey is ecologically sound and that it is highly unlikely to be contaminated with illegal chemical residues. So it may be regarded as organic even without an official stamp of approval. However, this does not in fact provide any benefit for the beekeepers as it means that, although the buyer in question may accept that the honey is organic and not demand certain additional measures, the price available will not include an organic premium.
Certifying organisations
The international regulating body for organic agriculture is IFOAM (the International Federation of Organic Agriculture Movements), with its HQ in Bonn, Germany (http://www.ifoam.org). There are other IFOAM offices around the world, as well as national offices accredited for monitoring organic standards as set down by IFOAM and for providing certification. The list of IFOAM accredited certification bodies can be found on the website of the International Organic Accreditation Service (http://www.ioas.org/acbs.htm) this time based in the USA. For each certifying body there is a list of the countries in which they operate, and those that do so in Africa are:
39
See pages 29 30. Bees for Development Journal, Issue No 81, December 2006 African Honey Trade Workshop. 41 Foreword & Introduction to Proceedings, by Dr Nicola Bradbear. African Honey Trade Workshop, Uganda, October 2006. See http://www.beesfordevelopment.org/info/proceedings_HTW2/index.htm
40
Page 37 of 42
Aranea Certifiering Ab, Sweden Naturland, Germany Soil Association, UK
Tanzania, Uganda Tanzania, Uganda Ghana, Kenya, Namibia, Nigeria, South Africa, Zambia, Zimbabwe
A standard for organic beekeeping can be downloaded as a 10 page pdf from the Naturland website: Naturland Standards for Organic Beekeeping http://www.naturland.de/standards.html#c1854 . For Kenya it is advised to contact the UK Soil Association http://www.soilassociation.org/web/sacert/sacertweb.nsf/B4/index.html Detailed information regarding standards and the process of becoming certified is available from the organisations in question. (See Appendix 8 for contact details.)
42
The IFOAM Africa Office (IAO)
Recognizing the booming growth and potential of Organic Agriculture (OA) in Africa, IFOAM established its Africa Office (IAO) in 2004. The IAO is staffed with a coordinator and provided with specific resources enabling it to focus on supporting the African organic movement. The IAO has an Advisory Group, composed of 6 representatives of the African organic movement, that serves as a resource and gives inputs to the IAO.
The IAO Advisory Group members are: Mr. El Hadji Hamath Hane, Senegal Mr. J. Ngugi Mutura, Kenya Ms. Diana Callear, South-Africa Mr. Charles Walaga, Uganda Mr. Ren Tokannou, Benin Ms. Sue Edwards, Ethiopia.
The IAO focuses on networking and facilitating the exchange of information on different experiences from various parts of Africa, and its four main objectives are stated as: 1. Institutionalizing the organic sector in Africa 2. Promoting OA as a development option for Africa 3. Developing organic markets and standards 4. Fostering a supportive policy framework for the development of OA in Africa
42
For more information, see http://www.ifoam.org/about_ifoam/around_world/africa.html Page 38 of 42
2.2
BEESWAX
General requirements
There is much less to be said about market requirements for beeswax. As it is not a food product there is less concern about safety, although it is used in the manufacture of some cosmetics for which it needs to be safe to apply to the skin. Some very dark coloured beeswax is bleached using certain chemicals, which is a potential problem if traces of the chemicals remain. Generally beeswax is refined by specialist companies after import, so export should be fairly straightforward. Having said this, all efforts should be made to produce clean wax with a minimum of foreign matter, especially anything which fraudulently increases the weight of the beeswax block. The quality of beeswax is based on colour, odour and chemical properties: The colour should be between pale yellow to yellowish brown: a darker colour indicates that the wax is old and so is valued less. The wax should have a honey-like smell and should not be sticky. There are no MRLs set for beeswax, but the cosmetic and pharmaceutical industries will not accept wax with high levels of contaminants.
Most beeswax is tested to ensure it is not contaminated with other cheaper or synthetic waxes such as carnauba wax. The EU requirements that do exist generally relate to beekeeping traditions that use frame hives, and include: Beeswax form cappings must be of the best quality and colour and should be processed separately from wax from other sources, lie bits of combs and old combs Clean and extracted combs should be processed separately from former brood combs Beeswax of different colours should be marketed separately
Different industry standards apply according to the products for which the beewax is to be used. They may also vary from country to country. So it is evident that it is impossible to set out a product specification, as is possible for honey, and this is a matter for discussion and agreement with the chosen customer.
Packing for export

Beeswax blocks should not be wrapped for export in coverings such as jute or polythene, because this can stick to the wax when it softens in transit. It should be wrapped in special paper or plastic foil and placed on shelves or in stainless-steel containers. (Other metals can adversely affect the colour of the beeswax and reduce its value to the importer: aluminium, zinc and copper, for example, should be avoided.) Importers prefer blocks of a size that is fairly easy to handle in preparation for processing not 25 or 65 kilos. If the blocks have to be re-formed into smaller pieces by melting this wastes time and energy (electricity or gas). So it is advisable to ask individual customers what weight blocks they would prefer. High temperatures during storage and transport must be avoided as this will cause the beeswax to deteriorate.
Page 39 of 42
SECTION 3. Conclusions
Conclusions drawn from the second African Honey Trade Workshop, held in Uganda in October 2006, capture the basic issues confronting any potential exporter of honey from Africa. African honey can find a niche on the European market only as a Speciality honey. A Speciality honey means one or all of the following: - a unique monofloral honey - certified Organic - certified Fairtrade (FLO) - being sold with a "story" which would be interesting for consumers and convince them of the value of the product Meeting EU quality standards and producing adequate volumes on a regular basis are hurdles which must be overcome to export honey to Europe. For businesses with adequate volumes of high quality honey, the special qualities of African honey should make it possible for African honey to be sold successfully as a speciality honey in Europe. Source: Bees for Development
The Workshop in fact explored the relevant issues at some length, and the challenges facing African beekeepers have been written about in come detail. The articles on the Bees for Development website (at http://www.beesfordevelopment.org/info/news/events/african-honeytrade-works-3.shtml ) is a very useful resource for exploring the relevant issues. For many producer groups and honey businesses in Africa the best way forward may have to be targeting domestic and regional markets, and not to even attempt to overcome the constraints and demands of the export market. Alternatively it may be worthwhile considering other export markets such as the Middle East: as well as presenting fewer obstacles, the colour and flavour of African honeys may be more acceptable to consumer taste. It is advised (by Bees for Development) that achieving a wider appreciation of the environmental and social benefits of African honey will be a major task of the newly formed trade association, Apitrade Africa. There does appear to be an interest in African honey in various quarters, but this is often accompanied by a frustration at being unable to source it in sufficient volumes (at least 60 tonnes a year) on a regular basis. The main EU requirements to be aware of relate to MRLs and the need for a national monitoring system to be in place, which leads to inclusion in the list of third countries, and for processing to incorporate a quality management system (HACCP) and approved by an veterinary health certificate. (The current list contains Kenya, South Africa, Tanzania, Uganda and Zambia, with Ethiopia under consideration.) It is likely that European countries not within the EU will have very similar requirements, Switzerland being a case in point. From the point of view of importing and retailing companies, the initial challenge would lie in marketing: to influence consumers willingness to try unfamiliar flavours, and to raise awareness of the special qualities and purity of African honey as well as its ecologically sound origins. A blended, general purpose or bakers honey will fetch only a low price (by comparison with table honeys) and it needs to be calculated whether this would even be cost effective for the beekeepers. From the best prices, the honey needs to be a specialist variety: as in the African context this is unlikely to be a monofloral honey, the specialPage 40 of 42
ness has to lie in it being organic, Fairtrade or from a very particular source that offers some unique appeal to the consumer. To gain an organic premium a product needs to be officially endorsed by a recognised organic certifying body such as the Soil Association or other European equivalent. Some people believe that this endorsement should be fairly easy to achieve on the basis of the unadulterated nature of African honey and its origins but incurs costs which have to be met by those producing or selling the honey. It is pointed out by Bees for Development that some of the rules governing organic certification are simply not appropriate for the African context because they are based on European or western practices and expectations. On the other hand, some importers recognise that African honey is ecologically sound and very unlikely to contain unwanted chemical residues in any case, so they would regard it (and presumably market it) as being organic even without the official stamp of organic certification. However, this does mean that the price paid to suppliers would not include any extra premium. Fairtrade certification is the most assured route to gaining a specialist premium but perhaps the most difficult to achieve. FLO international standards for Fairtrade honey have been developed relevant to a business model quite different from that which exists among African beekeepers, and are therefore virtually impossible to meet. The market wants Fairtrade honey, and some importers are expressing a positive desire to find an African source of Fairtrade certified honey. The concept of a regionally based certifying body, with standards that are achievable in the African context, is regarded by a number of people as a preferable or even essential option. Both the flavour and the consistency are characteristics that could be acknowledged in the marketing process, giving them a positive spin as being special to African honeys due to their botanic and geographic origins, and the way in which they are gathered. Although it would be desirable to try to adapt the product to meet European tastes to a certain extent, this cannot be regarded as a very feasible approach. The alternative is to try to get the market to adapt its expectations which will require educating both buyers and consumers which can only be done through marketing tactics. Regarding taste, one suggestion made is to explore the possibility of influencing or altering the flavour of honey in a particular area by planting or sowing varieties of indigenous plants from which bees could additionally collect nectar. If this was considered feasible, the introduction of additional sources it is possible it could be achievable by propagating plants already native to the locality. Another way of adjusting the taste of honey is by infusing it with some other ingredient such as ginger or other spice, as is already being done by some European processors. The drawback of this may be that it would have to be done by packers/ processors in the importing country, as part of the packaging for retail process, and the honey producers themselves would not gain the benefit of the added value. It is not easy to get a specialist table honey, however good, into the marketplace without the support of a champion and considerable investment. It is all to do with building the brand.
David Wainwright, Tropical Forest Products
One suggestion for a market opportunity is for Fairtrade and organic honey in the industrial market as opposed to the consumer market for specialist table honey whether for the food industry or for other products such as cosmetics. As against this it is also pointed out by one respondent that it would be extremely difficult to identify an importer interested in a (relatively) small volume, unknown honey, against
Page 41 of 42
the competition of the huge contracts with the major producing countries such as Argentina. Also, consensus seems to be that industrial honey gets the lowest returns. So taking into account the investment necessary to achieve both Fairtrade and organic status, this may not appear to be a very promising prospect. There is no doubt that the best prices are paid for honey that is both Fairtrade and organic (officially certified). However, it has been pointed out that in both cases some of the standards and requirements are simply not applicable to the African context. So as welll as being costly, certification is extremely difficult to achieve. The Fairtrade-organic option may be a good opportunity for some of the leading South American supply countries, but it does not follow that it is the best route for African honey. The ideas for regional standards to be developed would offer a solution, but this lies in the future. It may be worth further investigation into the potential of the alternative cosmetics market, where the need may be for smaller volumes than for the food or catering industries. With the success story of Manuka honey from New Zealand as an example, one suggestion would be to have honey samples analysed to identify any unique or particular qualities relating to health or healing. Even though honey may have been used traditionally in Africa for natural remedies and treatments, for it to be marketed on this basis would require some scientific proof of the claims made. This is another avenue that could be explored. If analysis resulted in a decision to target the natural remedies market, that would require additional research to identify appropriate supply chains, the major players and the countries with most market potential. Another recommendation (made at the Uganda trade workshop by the FLO spokesperson) is that the best potential for market growth for Fairtrade honey lies in Belgium, France, Italy and the Scandinavian countries. Whereas the largest markets for Fairtrade honey at present are Germany, the UK and Switzerland, the perspective may be that those that currently have comparatively small markets are those that indeed have the most potential for growth. There is a certain logic in the deduction, and those smalle rmarkets coud well be worth attention. In the face of all these challenges, successful export of honey to Europe may entail identifying a potential importer to champion the product, and establishing a partnership to work together on all the issues raised here, in particular marketing and awareness raising. However, first of all it is necessary to decide upon which markets to target, both in terms of geography and of market sector. Where beeswax is concerned, the options and choices are fewer and simpler. There is a growing market for beeswax, and it is a matter of identifying an interested importer, the key import countries being France and Germany.
Page 42 of 42

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EU MARKET OPPORTUNITIES FOR AFRICAN HONEY AND BEESWAX

Jackie McAdam Market Access Centre Traidcraft Exchange, UK August/September 2007

Page no. 1 2 2 4 5 `13 13 16 17 21 24 26 27 29

SECTION 2. Requirements, expectations and standards

SECTION 3. Conclusions APPENDICES

EU Market Opportunities for African Honey and Beeswax August 2007

General market overview

Definitions and usage

EU Market Opportunities for African Honey and Beeswax August 2007

TABLE 1. DEFINITIONS OF HONEY

Source: European Union

EU Market Opportunities for African Honey and Beeswax August 2007

Production and consumption

0 Germany Spain UK France Italy Netherlands

CHART 1. COMPARISON OF PER CAPITA CONSUMPTION OF HONEY IN KG

EU Market Opportunities for African Honey and Beeswax August 2007

Import value (1000 euro) 2004

Import value (1000 euro) 2005

Import value (1000 euro) 2006

Import Qty (1000 kg) 2004

Import Qty (1000 kg) 2005

Import Qty (1000 kg) 2006

Poland * Czech Republic Slovakia

4 407.88 2 519.84 913.91

6 697.35 2 780.76 1 392.89

8 766.00 4 284.84 1 776.05

3 597.00 1 100.10 597.00

5 074.40 1 578.70 955.31

7 634.20 2 387.50 1 183.30

DG Trade EU Helpdesk http://export-help.cec.eu.int

EU Market Opportunities for African Honey and Beeswax August 2007

Import value (1000 euro) 2005

Import value (1000 euro) 2006

Import Qty (1000 kg) 2004

Import Qty (1000 kg) 2005

Import Qty (1000 kg) 2006

140 989.18 303.59

71 142 638.7 203.10 17 597.60 88 739.50

74 638.70 17.50 21 007.60 95 646.30

68 313.20 20.10 17 737.20 86 050.40

44 176.26 185 165.44

39 018.95 134 208.36

34 363.410 119 810.04

16 274.54 nil 8 899.18 25 173.72

11 574.25 nil 6 153.76 17 728.01

14 807.66 nil 7 873.18 7 873.18

9 925.60 nil 3 709.60 13 635.20

11 734.80 nil 3 088.00 14 822.80

13 492.00 nil 3 865.90 17 358.50

18 260.30 291.80 7 263.50 25 523.80

21 164.10 190.60 7 219.4 28 383.50

19 477.40 126.40 9 992.2 29 469.60

7 368.33 nil 37 925.28 45 925.28

6 973.75 nil 28 329.44 35 303.19

9 848.77 nil 30 725.36 40 574.13

4 020.40 nil 13 716.00 17 736.40

5 955.90 nil 13 558.10 19 514.00

7 564.00 nil 14 517.10 22 081.10

8 632.20 nil 7 091.30 15 723.50

9 042.10 7.90 5 114.60 14 156.70

8 210.70 0.30 5 644.40 13 855.10

EU Market Opportunities for African Honey and Beeswax August 2007

GERMANY: HONEY IMPORTS. Charts 2.1 - 2.4