Economics of honey production: the case of the Australian industry

Abstract

Honey production is an established non-timber forest product in Australia. It faces competition and challenges from other forest uses, particularly from logging and conservation. The continued logging and the declaration of native forest areas as conservation reserves, which exclude beekeepers, are having a direct impact on the beekeeping industry. Beekeeping has relied on native forests since I820s and the continued reduction in the area of forest available for apiary is a concern to the industry. This study examines the economic importance of native forest in supporting the apiary industry and the direct and indirect economic impact of the apiary industry. The study relied mainly on secondary data and the argument is based on these sources and discussions with some industry and government representatives. The study indicates that native forests contribute over 50% of the total honey production (50-90%) besides providing build up sites for pollination of agricultural crops. The value of incidental pollination for agricultural crops is more than the value of apiary products. The apiary products have a gross value of about $64 million and $ 100 million if spill - over effects are considered. New South Wales contributes about 45% of the gross value. There are about 1000 people directly employed in commercial apiary production activities and additional 500 jobs are possibly generated indirectly in other sectors. Further research is recommended on the economics of honey industry especially on production and marketing. The beekeeping industry, though small, is important in the economy. The continued survival of the industry is dependent on the availability of floral resources in public lands and in private hands. The significance of the industry is not only in the direct and indirect impacts in other sectors but the positive externality of honey industry in the agricultural sector. The beekeeping industry will continue to provide this benefit if there is support and recognition as one of the important uses of forests.