Apiculture
This section comments on a range of beekeeping activities and products throughout New Zealand.
Key Points
- The varroa mite has now spread to nearly all parts of the North Island above the Movement Control Line that stretches from northern Taranaki through the Tongariro National Park to just north of Ruatoria, near the East Cape.
- There are currently 4,674 beekeepers owning 310,865 hives on 21,479 apiaries.
- Honey crops were variable, but an above average national crop of 9,144 tonnes was produced (6-year average is 8,842 tonnes).
- Beekeepers faced big increases in vehicle running costs (fuel costs) and sugar.
- Kiwifruit pollination fees increased, especially in the Bay of Plenty.
Physical Factors
Climate
Spring weather in most areas of New Zealand was unsettled, with average to below average mean temperatures.
Spring rainfall was below normal in Northland, Bay of Plenty, Buller, Nelson and Marlborough. However, parts of the Waikato, Bay of Plenty, Wanganui, Kaikoura, Canterbury, and coastal and inland South Otago, had very high spring rainfall. Taranaki and the southern and western areas of the South Island enjoyed very high sunshine hours.
The end of October through November ushered in a period of heavy wind and rain and cold fronts throughout the country, with hail in Motueka and frosts in Hawke's Bay. The winds and rain adversely affected kiwifruit pollination and queen bee production, while rain and flooding made access to apiaries difficult for many beekeepers.
The summer was another one of extremes with very dry to drought conditions in Wellington, Nelson, Marlborough, Canterbury and Central Otago. In contrast, Northland, Auckland, parts of the Waikato, Coromandel, Bay of Plenty, Gisborne and Wairarapa were wetter than normal. This reduced pasture honey production but good crops were obtained from bush sources such as manuka, kanuka, pohutukawa and rata in select areas. Beekeepers described the honey crop as "patchy", even in areas with similar geography and climate. The West Coast had a bumper crop of rata honey.
Honey Production
Northland/Auckland/Hauraki Plains
This area produced an average crop similar to last year of 22-25 kg/hive with good yields of manuka, towai, white rata, and pasture species such as clover and pennyroyal. Pohutukawa yields were reported as excellent and one beekeeper, who uses intensive colony management, produced over 80 kg/hive. By contrast, the Hauraki Plains averaged about 10 kg/hive as the clover failed to yield. An estimated 869 tonnes was produced in the region as a whole. The varroa mite affected a number of hives, especially those owned by hobby beekeepers who did not treat their hives or carry out enough treatments.
Waikato/King Country/Taupo
This area experienced a disastrous honey crop of only 672 tonnes or 14 kg/hive (range 2-40 kg/hive) compared with last year's crop of 1,434 tonnes. This is the lowest production figure in the past 20 years, and is even worse than the very poor crop of 730 tonnes in 1989. Tawari and rewarewa bush flows did not eventuate and pasture crops were very low. Some beekeepers blame the increasing use of nitrogen fertilisers for the non-appearance of clover in pastures this season.
Bay of Plenty/Coromandel/Poverty Bay
The Coromandel and East Coast had another very poor crop with many beekeepers recording 4-11 kg/hive. Tawari, manuka and clover did not do well and traditionally good manuka sites produced only 10-15 kg/hive. Beekeepers blamed the wet weather in November and December, especially in the Coromandel. Hives used in kiwifruit pollination usually produce less than equivalent hives not taken to pollination and this year was no different.
The crop of 794 tonnes was down on last year's crop of 1,300 tonnes and the 6-year average of 1,203 tonnes.
Hawke's Bay/Taranaki/Manawatu/Wairarapa
The southern North Island had a very good season with an above average crop. The Masterton area could have produced a record harvest if there hadn't been so much flooding in the spring. Even so, the area produced an average of 40 kg/hive. Central Hawke's Bay averaged around 40 kg/hive, while the Taranaki region averaged 25-30 kg/hive on a short nectar flow that was intense while it lasted. Localised areas like Ruatiti had record production with beekeepers achieving up to 80 kg/hive, much of it high value manuka honey. Manawatu saw an above average crop this season with yields close to 45 kg/hive.
The regional crop was estimated at 1,735 tonnes, up from 1,323 tonnes last season, or 45.4 kg/hive.
Marlborough/Nelson/Westland
Severe drought conditions in Marlborough and Nelson reduced the honey crop to 15-25 kg/hive, well below the average of 45 kg/hive. However, some areas of Marlborough produced manuka flows in excess of 65 kg/hive, while the West Coast experienced a huge rata flowering which was reportedly the best in 32 years. Crops of 165-180 kg/hive were common.
Despite the West Coast efforts, the total crop for the area was estimated at 606 tonnes (last year 705 tonnes) or 22 kg/hive.
| Table 1: New Zealand Honey Crop (tonnes) | |||||||
| 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 6-year Average | |
| Northland, Auckland, Hauraki Plains | 829 | 766 | 1,014 | 615 | 982 | 869 | 846 |
| Waikato, King Country, Taupo | 1,639 | 829 | 1,404 | 1,617 | 1,434 | 672 | 1,266 |
| Bay of Plenty, Coromandel, Poverty Bay | 1,077 | 933 | 1,314 | 1,800 | 1,300 | 794 | 1,203 |
| Hawke's Bay, Taranaki, Manawatu, Wairarapa | 1,367 | 1,112 | 1,230 | 1,416 | 1,323 | 1,735 | 1,364 |
| Marlborough, Nelson, Westland | 607 | 919 | 598 | 770 | 705 | 606 | 701 |
| Canterbury, North Otago | 1,287 | 2,339 | 1,238 | 1,782 | 2,310 | 2,743 | 1,950 |
| South and Central Otago, Southland | 1,804 | 1,639 | 1,283 | 1,069 | 1,555 | 1,725 | 1,513 |
| New Zealand | 8,610 | 8,537 | 8,081 | 9,069 | 9,609 | 9,144 | 8,842 |
| Yield/Hive (kg) | 30.0 | 29.7 | 27.0 | 29.9 | 30.0 | 29.5 | 29.4 |
| Source: AgriQuality New Zealand | |||||||
Canterbury and North Otago
Early indications were for a very good crop after a mild winter, early nectar flows, and warm weather through November and December. However, in late December most areas of Canterbury experienced strong north-west winds that not only decimated foraging bees but also dried out the pasture. Honey yields ranged from a low of 25 kg/hive on the drier plains to 58 kg/hive on the irrigated pastures. The highest yields came from the beech forest honeydew at 85 kg/hive.
The regional average was 45 kg/hive and the total crop was estimated at 2,743 tonnes.
South and Central Otago and Southland
The honey season was a mixture of disappointment and some surprise. After a good spring, everything was set for a big crop, with the flow starting 2-3 weeks early in some places. However, the rain and cold weather in January, followed by a drought, cut off the flow with little honey produced after Christmas. The honey produced was darker than normal as there was less clover honey.
The region had an average production of 34.5 kg/hive, ranging from less than 12 kg/hive to more than 50 kg/hive, equating to a total crop of 1,725 tonnes.
Pollination
Most fruit crops experienced good pollination, despite the indifferent weather in October and November. Colonies built up well, and all hives that were infested with varroa, or were going into orchards for pollination in the Auckland, Waikato and Bay of Plenty areas, qualified for free miticide treatment under a government support programme.
Kiwifruit flowering and bee foraging on the early yellow variety was affected by the inclement weather during October. Weather during the main kiwifruit flowering in November was not much better and many hives almost starved during the pollination period because of a lack of bee forage.
The varroa mite did not have any obvious effect on pollination, as nearly all beekeepers availed themselves of the free treatment. Pollination fees were increased in the Bay of Plenty area from an average of around $80/hive to over $100/hive to cover increases in diesel and sugar as well as expected costs for treating varroa in the future. Any beekeeper that wishes to stay in business and provide hives to an agreed and audited standard will have to treat for varroa either before or during pollination.
Live Bee Movements and Exports
Varroa affected the exports of bees from New Zealand again, as some Canadian importers stayed with Australian exporters who supplied bees after the discovery of varroa in Auckland last season. Late snowstorms in Canada and delays in getting import protocols negotiated meant orders were not confirmed until late in the season.
Beekeepers with hives in varroa-infected areas could not provide bees to exporters who were supplying Japan and Korea, but new suppliers were found in "clean" areas. However, with the spread of varroa to the middle of the North Island, these production areas will most likely be compromised for next season and markets lost unless less stringent conditions can be negotiated with importing countries.
Queen bee movements from the North Island to the South Island remained prohibited, but South Island beekeepers either raised their own stock or bought from local producers who increased production to cope. Queen bee producers in the North Island were financially affected by the ban on the sale of bees to the South Island and have found it very difficult to replace these lost markets. The United Kingdom (UK) restricted imports of live bees to suppliers in the South Island only, due to the presence of varroa in the North Island.
Financial Factors
Revenue
New Zealand produces an average honey crop of 8,800 tonnes and consumes about 5,000 tonnes. This leaves 3,000-3,500 tonnes/year that need to be exported or carried over to maintain market stability. Honey exporters are trying to add value to New Zealand products, as it is not profitable to compete on the commodity market for bulk honey with countries such as Australia, Argentina, Mexico, Canada and China. As New Zealand produces more honey than is consumed locally, world market prices have a direct influence on local market prices.
Export markets recovered from last year's performance due to the low New Zealand dollar, and good sales were made to Japan and Europe. Honey was exported to around 30 countries in the year ended December 2000. Retail packs were valued at $6.6 million, bulk honey was $3.4 million, comb honey was $0.83 million, honeydew was $0.24 million and other honeys were $0.29 million. The total exports were $11.4 million. Beeswax exports were worth $0.48 million and live bee exports returned $1.4 million. (All figures are free on board.)
Local packers continued to compete strongly amongst themselves for retail market share, and supermarkets are also keeping wholesale prices under tight control. Some varietal types are in short supply and prices firmed for these honeys. The bulk price for manuka honey in particular has increased dramatically from around $4.50/kg to over $6/kg.
Manuka honey is in short supply, and more of this is being used for medicinal purposes such as wound dressings and cough syrups. These markets can stand paying higher prices. A new trend is to pay $1/kg per point of antibacterial activity as determined by an accredited laboratory. On this basis some beekeepers are receiving up to $24/kg for manuka honey.
The price for kiwifruit pollination in the Bay of Plenty increased dramatically this season following increases in the price of diesel and sugar. Kiwifruit growers were also concerned at the effect of varroa and accepted an increase in an effort to assist beekeepers stay in business and produce quality hives. Some growers expressed disquiet when they realised that beekeepers were getting Government assistance by way of free miticide strips when they thought the pollination fee increase was to pay for these expensive treatments. The support from Government for miticide treatments will conclude by the next pollination season. However, the increase in price helped beekeepers to produce quality hives and few substandard hives were found in audits. Over 3,000 pollination hives were audited in the Bay of Plenty, Waikato and Auckland areas.
Live Bees
Nucleus hives (consisting of four frames with bees, a queen bee, brood and honey) sell for $35-$50 each. Queen bees are currently selling for $12-$18 each on the local market, and $16-$30 each on the export market. Queen cells are selling for $2.50-$4.00 each. (Queen cells are immature queen bees that are placed in queenless hives to emerge as virgin queens after 1-2 days, then they fly and mate.)
| Table 2: Returns for Apiculture Products* | ||
| 1999/2000 | 2000/01 | |
| Colour grade ($/kg fob): | ||
| Light (clover type) | 2.05-2.30 | 2.32-2.80 |
| Light amber | 1.95-2.12 | 1.80-2.40 |
| Dark | 1.50-2.50 | 1.60-2.30 |
| Manuka | 3.50-4.20 | 5.00-24.00 |
| Beeswax ($/kg fob): | ||
| Light | 5.50 | 4.50 |
| Dark | 5.60 | 4.70 |
| Pollen ($/kg fob): | ||
| Not dried or cleaned | 9.00-12.00 | 9.00-13.00 |
| Cleaned and dried | 16.00-22.00 | 15.00-22.00 |
| Pollination ($/hive): | ||
| Pipfruit, stonefruit and berryfruit | 45.00-50.00 | 45.00-50.00 |
| Kiwifruit: | ||
| Hawke's Bay | 70.00-80.00 | 70.00-80.00 |
| Taranaki | 60.00-70.00 | 65.00-70.00 |
| Auckland | 50.00-75.00 | 60.00-80.00 |
| Bay of Plenty | 50.00-90.00 | 70.00-130.00 |
| (average 78.00) | (average 98.00) | |
Source: AgriQuality New Zealand |
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| * Beekeepers supply drums or containers Source: AgriQuality New Zealand | ||
Bulk Bees
One to two kilograms of bees can be taken from each honey-producing hive and delivered to an exporter who repacks the bees in 1-1.5 kg packages with a queen bee and food supply. These sell for $11-$14/kg. Export markets are Canada, Korea, Japan and Germany.
Propolis
Propolis is a gum or resin that is exuded by trees and shrubs and collected by bees. It has antibiotic properties and is made into many therapeutic products after extraction and refining.
Beekeepers receive $120-$140/kg of pure propolis after extraction, which translates to $50-$75/kg of raw product as collected from the hives or scraped off bee frames and boxes. With the need to maximise revenue following the introduction of varroa, beekeepers will be even keener to produce and harvest propolis if they are not already doing so.
Other products produced from beehives include royal jelly and bee venom.
Expenditure
The increases in the price of diesel and petrol have added to the annual costs of beekeeping, as operating trucks is one of the largest costs faced by beekeepers.
Beekeepers are rationalising apiary locations to reduce travelling costs and apiary levies paid to the National Beekeepers' Association of NZ (Inc) (NBA). The effect of reduced revenue for the NBA is not known at this stage.
Sugar is a major cost in all beekeeping operations, and increases in sugar prices this past season, due to international shortages and the lower New Zealand dollar, have been significant.
Timber prices continued to increase and many beekeepers are moving to plastic bee frames. These are more expensive but have other advantages such as strength against breakage. Less damage means less drone (male) cells, which are preferentially parasitised by varroa.
All beekeepers, whether exporting themselves or supplying bee products to exporters, will need to have documented quality systems in place based on Hazard Analysis Critical Control Point (HACCP). This is a requirement of the Animal Products Act 1999, and can be met by developing an approved Risk Management Plan or Food Safety Plan. These plans need to be submitted to MAF by August 2002 for approval by November 2002. They will replace the annual Certificate of Registration (COR) currently issued by local authorities.
CORs cost about $150-$360 depending on the district, but compliance with the Act requirements for Risk Management Plans is expected to cost more than $1,000 to set up, with annual audit fees expected to be considerably more than the current COR costs.
Net Result
It is difficult to get financial data on beekeeping operations as there is no surveying or modelling being carried out. Beekeeping businesses also vary greatly in their revenue generating activities, so finding a typical enterprise is not easy. This is especially so in the North Island where beekeepers may generate revenue from honey (bulk or retail), pollination, bulk bees for export, and propolis and pollen production.
The gross margins presented are sourced from the industry's application for a Pest Management Strategy document (1997). They have been adjusted for inflation at the rate of 1.5% per annum plus an allowance for varroa treatment costs, increases in diesel and sugar, and increased revenue from pollination fees for kiwifruit.
| Table 3: Gross Margins ($/hive) | ||
| Pollination Hives | Non-Pollination Hives | |
| Gross revenue | 148.88 | 110.18 |
| Production costs | 96.00 | 67.09 |
| Net revenue | 52.88 | 43.09 |
| Source: AgriQuality New Zealand | ||
Issues and Trends
For the North Island at least, the major influence will continue to be varroa. This is such a serious disease that if hives are not treated, or treated at the correct time, then the colony will die. Untreated colonies spread varroa through infected bees drifting into healthy colonies or healthy colonies robbing-out weakened hives. Either way, managed hives are subject to reinfestation. This means hives require regular monitoring and may need treating more than twice a year, with attendant costs.
The cost of treating varroa using registered miticide strips (Apistan and Bayvarol) is significant and could reach $26/hive/year or more depending on the severity of reinfestation. Organic acids are being tested and approval is being sought for their use, but these are dangerous chemicals to use even though they may be cheaper on a per treatment basis.
The costs of treating varroa represent the net profit for many beekeeping operations, especially those without pollination or access to manuka sites. A number of beekeeping businesses will not survive varroa and even now some are selling up in anticipation of being unable to cope because of the age or financial situation of the beekeepers concerned.
However, new beekeepers continue to enter the industry and businesses on the market are finding ready buyers. This bodes well for the industry post-varroa.
The effects of varroa management on the NBAs revenue remain to be seen. Currently beekeepers pay a levy on apiaries, but with the need to reduce costs and maximise hive returns, beekeepers are already rationalising sites and hive numbers, which will reduce levies collected.
About 40 beekeepers are producing organic products through either BioGro or AgriQuality New Zealand's CERTENZ programme. The total effect of varroa and the need to use chemical controls on organic production is not known at this stage. Organic acids, such as formic and oxalic, are being trialled in New Zealand conditions and applications have been made for registration. It is hoped to have these chemicals available for permitted use by August 2001. Organic honey producers, in particular, are keen to have these organic treatments available.
The effect on compliance for organic orchards or crops of having pollination hives with miticide strips in them is difficult to quantify, but some growers are already expressing concern and looking for beekeepers who plan to use organic treatments.
Contact for Enquiries
Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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