Key Take-Aways
- Global honey demand is softening.
- Impacts from anti-dumping activity continue to reverberate through the industry.
- Supply and demand conditions are driving prices higher on agave and molasses.
Honey Market Updates
- Overall global honey demand has softened compared to previous years. Supply availability remains strong despite restrictions from Vietnam and Ukraine.
- Beekeepers in the southeast US are expecting below-average honey harvest this year due to weather conditions.
- Vietnam honey industry showing signs of severe contraction as exports are down >80% due to anti-dumping duties.
Anti-Dumping Update
- Period of Review 1 (POR1) is completed. DOC will begin its review of imports and pricing, with revised AD duty rates published in Jan. 2025.
- POR2 extends from June 2023 to May 2024, with revised duty rates expected to release in Jan. 2026.
- SHF and others in the honey industry have challenged the Critical Circumstances ruling on Vietnam honey. Oral arguments will be heard in July with a ruling expected later in 2023.
EU Adulteration Study
- The European Union “From the Hives” initiative survey identified that 46% of the 320 honey samples collected were considered suspicious for adulteration, or above average levels. Notable origins include:
- China with 74% (66 out of 89 tested)
- Turkey with 93% (14 out of 15 tested)
Additional Market Updates
Agave supply is tightening:
- Growth of tequila & mescal spirits is utilizing more of the agave plant supply.
- Climate change contributing to less than ideal growing conditions.
Molasses prices rising:
- Past 6 months have been pretty volatile, strong hedge funds activity increased the commodity market place, including molasses.
Port Conditions:
- West Coast port conditions are starting to experience back-ups due to a worker strike.
- Drought in Central America is affecting container traffic through the Panama canal, potentially reducing capacity.
To view the report as a print-friendly PDF, click here.
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