Sweet Harvest Foods Q3 2024 Honey Market Report

Key Takeaways:

• Consumer demand for honey in retail and foodservice channels is strong
• Tightness in supply of organic honey from Brazil
• Latest anti-dumping duty rates expected in January 2025

Honey Supply Updates:

• USA – Midwest honey flow is mostly complete with extraction underway. Good quantities of honey available out of California.
• Organic honey supply from Brazil is expected to remain tight through Q2 ‘25, with prices increasing amidst in-country logistics challenges.
• India season is winding down, but inventory still available. Government Minimum Export Price (MEP) program is expected to be renewed.

Anti-Dumping Updates:

• Initial anti-dumping rates for Period of Review 1 (POR1) were released by the US Department of Commerce in July, with final rates due to be issued in January 2025.
• Industry appeal of Critical Circumstances ruling is progressing. All briefs have been filed and oral arguments are expected in Q1 2025.
• Vietnam’s petition to be considered a market economy was rejected by the US Department of Commerce, and existing anti-dumping rates remain in-place.

Market Updates:

• In Retail, honey volume and dollar sales have grown by 7.8% and 4.4%, respectively, in the 13-week period ending 9/8/24 (per Circana).
• Among broadline foodservice distributors, honey volume sales grew by 7.6% over last year, and are nearly 10% higher than pre-COVID levels (per Circana, 12-months ending July 2024).

Logistics Updates

• The continued turbulence in the Red Sea is expected to continue into 2025, leading to additional freight surcharges and time for shipments as carriers look to avoid this area by sailing around the southern tip of Africa.
• Brazil’s largest port construction is winding down, however the port is very busy and delays continue.
• US East & Gulf Coasts went on strike in early October, but union boycotts were paused until January 2025 while negotiations are underway.

Benefits of Honey:

• A recent study published in The Journal of Nutrition, found that putting a tablespoon of clover honey in yogurt helps the probiotics it contains to survive in the gut. We consider that a winning combination of healthy and delicious! Link to the article: https://newatlas.com/healthwellbeing/honey-plus-yogurt-probiotics/

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