A big honey supply season coincided with Covid which disrupted export markets in 2020 taking the shine off the sector. Photo: 123RF
A mānuka honey exporter says a recent trade trip to China gives cause for optimism that recovery is on the way for the ailing sector.
A decade ago mānuka honey was characterised by terms like "gold rush", and new beekeepers proliferated, the cost of hives exploded and there were many reports of hive thefts.
But in 2020 the shine left the sector. A big honey supply season coincided with Covid which disrupted export markets.
Product was left un-sold in sheds, many newer businesses closed down.
At that time the Mānuka Collective was set up and it now represents three companies, 100% Pure New Zealand Honey, Three Peaks and Ngāi Tahu Oha Honey.
According to chief executive of the collective Sean Goodwin there is not huge growth in any global market at present, but sales are "fairly stable".
And following a trade trip to China last week he said there was light at the end of the tunnel.
"I do think that the the future is optimistic for Mānuka honey done right."
China makes up about 20 percent of the Mānuka Collective turnover and Goodwin said the company was happy with that, as keeping diversified in other markets, and keeping on-line and off-line selling, gives the sector strength.
But he said two strategic agreements signed in China last week were promising.
"China is an important market, it's a bellwether for health and well-being and innovations, so we're happy to have been in China, it's important, but we're not overly reliant on it," he said.
One of the deals is with H and H Supply chain, a company adept at digital and live stream commerce, and the other with a large dairy company Milkground and JD.com which will promote Māori health perspectives alongside Chinese medicine.
"Success will based around this sort of innovation. For mānuka honey in the future, we can't be reliant on selling honey in a jar as we have been for the last decade. And so these partners are reaching out to new channels to new consumers. Importantly, younger consumers and telling them about the story of mānuka.
"But it's not going to happen overnight," Goodwin said.
He said China would grow as a percentage of their business, but they were expecting growth for the total business as well.
"I would be looking at doubling the type of volume and revenue that we're doing to China in the next five years, which is significant."
The growth was needed to form a sustainable business he said and it would help "pull honey through the supply chain because we know there's a surplus of honey at the moment".
The aim for the Mānuka Collective is entering long term partnerships with beekeepers and the eventual expansion of the Timaru factory.
All important from a staff point of view because they needed to know they had a future too, Goodwin said.
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