THE AFRICAN HONEY TRADE FORUM
Harun Baiya, SITE, Kenya

• Honey Trade Workshop organised by Bees for Development - 12 countries developing countries.

• Accessing the EU markets - issues of 'Residue Monitoring Plans'.

• Participants were reps from
  12 countries and packers/ importers of honey.

• Beekeeping Congress was being held for the 39th time.

  • 7 standing  commissions - technology, apitherapy, biology, rural development, pathology, pollination and bee flora, beekeeping economy.

• Participation by country and regional teams – strong presence of Southern American Companies (Uruguay Argentina, Chile), India, China, Central Asia and East Europe and Central Europe.

• Private companies - suppliers of equipment, packers and sellers of hive products (apitherapy products in particular), drug companies (treatment of bees).

• Notable absence - virtually no stand from Africa (the only stands featuring African apiculture and honey were Baraka College, Kenya and Bees for Development, UK)

Insights

• Honey is an important traded commodity - UK in 2004 imported $51m (CIF) worth of honey.
• The EU is a big buyer.
• Trade volumes change a lot over years—especially for bulk honey used for blending. However, accredited brands and speciality honey is growing rapidly in the EU.
• There is an impact of bee diseases on the markets—e.g. US has 100,000 ton deficit
• The sources of honey also vary a lot, producing honey of varying quality (standards, weather, domestic markets—e.g. Mexico, trading arrangements).
• Some countries in EU re-export (e.g. Germany—largest exporter in value), UK largely use table use (80%).
• Main producers/exporters-China, Chile, Uruguay, Argentina, Brazil, Vietnam, New Zealand, Australia.
• The markets for bulk blending honey have been very competitive and seen price variations, but niche markets for natural and organic honey has been growing.
• The two accreditations of organic/Fair Trade results in up to 50% more FOB.
• Buyers in the EU and increasingly USA are aggressively seeking honey with the two accreditations—herein lies the opportunity for African beekeepers

Africa/Regional Issues

• The participation of Africa in honey markets is very low indeed—hardly recognised (evidence from the international arena).
• Less than 5% of Africa’s honey production potential is exploited and there is little for export.
• Why talk about or focus on export in the first place - it is a key strategy for rapid and competitive growth, and experience shows it works - makes good business sense.
• Niche buyers with the two accreditations or at least one of them.
• Need to build a name as a source of honey serious for buyers to look at.
• Overcoming the negative image of Africa honey (example).
• Increasing productivity and marketing.
• New competition coming from Central Asia – growing sources of natural/organic honey.

Uzbekistan

Immediate response by regional actors        

• A decision to increase our voice and presence in the apiculture field
• Representatives from 8 countries established a forum and presented a case to the Apimondia governing body and set an agenda
• Began a process of opening access to the niche markets for African honey
• 2 Resolutions
• Private Companies, importers keen to support this process

RESOLUTIONS

Apimondia: Standing Commission Beekeeping for Rural Development

RESOLUTION 1

Establishment of a new Working Group
The Eastern and Southern African representatives at Apimondia 2005 Dublin have resolved to start a regional forum aimed at promoting honey trade in Africa, under the auspices of the Apimondia Standing Commission Beekeeping for Rural Development.

The Group have set up an interim Steering Committee that will facilitate the organisation of a meeting to be held in Uganda in May 2006.  This meeting will formalise the operations and functions of the Working Group.

RESOLUTION 2

Increasing honey trade opportunities for small-scale African beekeepers

It is recognised that the beekeeping sector holds potential for creating sustainable incomes for Africa’s rural beekeepers, but this potential is hardly tapped because these producers do not have access to infrastructure and organisational systems to allow them to reach the niche/speciality markets their products would otherwise reach, especially in the EU.

To open new market opportunities for these beekeepers, a resolution is hereby made for the Fairtrade Labelling Organisation (FLO) to take cognisance of the situation in Africa, and put in place a system of recognising and registering small-scale private sector firms that are linking the producers to buyers in the fair trade market.  A detailed proposal on how these firms will address the principle guidelines of FLO will be submitted to FLO for action.

Comments on Policy 

• The level of government leadership is generally weak or at early stage—TZ seems quite ahead in some aspects. Ethiopia is advanced as well.
• Industry players need to be better organised as a country source.
• Governments need to put their own trade facilitation legislations, including domestic and international specs and standards and compliance—has to be at country level.
• Regional interests for harmonisation and trade promotion (e.g. Uganda taking lead) e.g. to deal with exports in regional trade blocks, disease, research etc.
• Greater private sector leadership (examples in other sectors in Kenya). 

‘Doing honey is good business’

  Download Harun Baiya's PowerPoint presentation here (1.2mb .pps file)