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New Zealand’s mānuka honeyexport sector, ranked second globally by value but fighting its way out of a severe slump, should look to the French regions of Champagne and Cognac for lessons in premium status production, a special report says.
After the Goldrush by Australasian firmCoriolis Research explores the current situation in the New Zealand honey industry, led by mānuka honey.
New Zealand captures 9% of global honey trade value despite producing only 1% of the volume, the Coriolis report said.
It found that since the export peak in 2020 when volumes and prices were at an all-time high, the industry had experienced a 26% decline in export demand. This had led to an oversupply of mānuka honey, recognised for its unique antibacterial properties and medicinal and health benefits, putting significant price pressure on the market.
Mānuka honey makes up 90% of New Zealand's export honey market.
“Simultaneously, the number of beekeepers, hives and honey production has sharply dropped, particularly in the North Island. Industry projections suggest a future stabilisation, but this transition will require careful navigation to maintain New Zealand’s premium status.”
The report said that after adding 7400 beekeeping enterprises in 10 years, numbers had fallen recently by 15%. After adding 40,000 apiaries to the industry from 2009-2019, numbers had declined by 13% or 8156. Average hives per apiary had shifted down 39% in the past seven years, while average hives per enterprise had reduced by half since 2009.
Since 2019, hive numbers had been falling by 10% a year with 385,000 hives removed. Honey production had fallen by 56% between 2020 and 2023.
The report cites several “key mistakes” by stakeholders in the management of mānuka honey, including:
“With honey demand remaining strong globally, particularly in underdeveloped markets in Africa and Asia, New Zealand is well-positioned to expand its footprint.
“To sustain premium pricing, the industry must focus on strengthening its regulatory frameworks, maintaining quality and investing in research and innovation.
“We recommend studying successful product regions such as Champagne and Cognac (and Parmigiano-Reggiano), which have managed to preserve their premium status through strong governance, unified branding and quality control.”
Mānuka trees, which provide bees with nectar to make mānuka honey, occur only in New Zealand and small parts of Australia.
Sector-good organisation Apiculture New Zealand said the Coriolis report was a “fair assessment” of the state of the industry.
Chief executive Karin Kos, in a statement to the Herald, said it was well-documented that the industry had been significantly challenged in recent years, with supply and demand out of kilter, post-Covid global economic uncertainty and pressures on consumer spending.
Many of the areas and mistakes highlighted in the Coriolis report were identified in the industry’s work on a strategy, released early last year, and were being addressed in that strategy, she said.
“While the environment has been incredibly tough for some, it is not a crisis situation for all – the underlying demand for mānuka honey (which represents over 90% of our export market) remains sound and global penetration is still very low.”
Honey export revenue increased 11% to $419 million in the June 2024 year, driven by increases in export prices and volumes for monofloral mānuka honey retail packs.
New Zealand’s underlying competitiveness had improved with the removal of tariffs in the key British and European Union markets and global economic indicators pointed to a recovery in consumer confidence, Kos said.
“The report confirms the continued strength and positioning of mānuka honey ... and that the key to continuing success of the sector is retaining that premium which we are addressing via the New Zealand Honey Strategy.”
Coriolis said the industry appeared to be consolidating, with projections suggesting a long-term stabilisation of around 4000 beekeeping firms, 35,000 to 40,000 apiaries and 350,000 to 500,000 hives.
Its report estimated 1600 firms were commercially involved in trading New Zealand honey.
Australia, UK, Europe, US and Canada took 60% of New Zealand honey exports; Asia and the Middle East 20%; and Greater China, Hong Kong and Taiwan 20%.
The North American market had grown notably in the past decade.
Andrea Fox joined theHerald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
