Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Manuka honey business abuzz with activity

17 February 2016

Manuka honey business abuzz with activity

Competition is hotting up among exporters to secure access to precious manuka honey supply, reports KPMG New Zealand.

Keith Richards, from KPMG’s Hamilton office, says high export returns and a limited supply of precious manuka honey is driving a “scramble” to secure access to both hives and manuka-producing land.

“Manuka honey is a fairly scarce commodity, and the issue that many processors and exporters are facing is the ability to guarantee their supply,” he says.

“As they compete to secure that access, we’re seeing more transaction activity and consolidation within the sector. For instance, KPMG has recently facilitated the sale of a successful Waikato based honey producer to a leading processor and exporter.”

According to MPI figures, the 2014/2015 season produced another record honey crop, at an estimated 19,700 tonnes. The value of New Zealand’s pure honey exports also increased. In the past season, honey export volumes to China were six-times that of 2011/12.

Keith Richards says the buoyant market also has implications for both land-owners, and the bee-keepers who have access to their manuka-producing land. There are approximately 5,550 ‘registered bee-keeping enterprises’ in New Zealand.

“The access to land has traditionally been done on a handshake or word of mouth…but I think we are starting to see a trend towards more formalised contracts.”

Ian Proudfoot, KPMG’s Global Head of Agribusiness, says the honey sector - and Manuka honey in particular - is one of the stand-out successes of New Zealand’s primary sector in the last few years.

“With consumers focused on the integrity of the products they eat and seeking foods with proven health benefits, we expect to see both volumes the honey sector produces and export earnings to continue to grow strongly”.

Keith Richards recently led a KPMG team that assisted husband-and-wife beekeepers, Adrian and Lania Pohio, to sell their business to a large New Zealand processor and exporter. Based in Cambridge, Nature’s Country Gold was founded by Adrian and Lania Pohio in 2005 with 120 hives.

“Being an international firm, KPMG has access to the larger players that were in a position to purchase a business such as ours,” says Lania Pohio.

The purchaser, Manuka Health NZ Ltd, distributes to more than 45 countries, and was acquired by Pacific Equity Partners in December 2015.

Manuka Health has retained beekeeper Adrian Pohio to continue with the business as a consultant; and the couple say they were “extremely satisfied” with the outcome achieved.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO: