Raw honey producers export at low prices

Vietnamese honey companies have been exporting raw honey at low prices to other countries from which products are re-exported at high prices with foreign labels. 

Vietnam now exports raw honey at low prices

According to VBA (Vietnam Beekeepers Association), in 2016 Vietnam’s honey output was nearly 50,000 tons, of which 40,000 tons were exported, while domestic consumption just accounted for 20 percent. 

Up to 90 percent of exports go to the US market, while 5 percent to Europe.

In 1992, the first consignments of bee honey were exported to the US. Just 10 years later, Vietnam became the third largest honey exporter to the market, after China and Canada. 

In 2016, with 38,514 tons of exports, Vietnam led the countries exporting bee honey to the US.

The bee honey output has been decreasing in Europe, while demand has increased greatly (250,000 tons a year).

In 2016 Vietnam’s honey output was nearly 50,000 tons, of which 40,000 tons were exported, while domestic consumption just accounted for 20 percent. 

VBA reported that from the beginning of the year to September 15, Vietnam exported 29,000 tons of bee honey, but only 1,469 tons were exported to Europe. 

The EU accounts for 22 percent of total consumption of honey in the world. 

To export products to choosy markets such as the EU and US, bee honey products must satisfy strict requirements, including color, humidity, carbendazim content, antibiotic content and sugar content. 

Some export consignments were rejected because they contained carbendazim, an anti-fungus substance for plants.

It is costly to test the quality of honey products. The Hanoi Bee Company, for example, has a testing lab worth VND1 billion, but it can only test 12 out of 24 criteria, and has to send samples to Germany to test the remaining criteria.

Analysts say that Vietnamese companies have recently become stronger in the domestic market.

Ranked sixth in the world and second in Asia in bee honey exports, the consumption level in Vietnam is low. While the average consumption level in the world is 700 grams per head per annum, the figure is just 30-40 grams in Vietnam.

Xuan Nguyen Company, for example, which previously exported 500-1,000 tons of raw honey a year, is now focusing on the domestic market, as are Behonex and Cao Nguyen.

There are 1.2 million colonies of bees in Vietnam, mostly bred in the eastern part of the southern region, Central Highlands and northern mountainous areas. 

There are about 30,000 beekeepers, including 6,000 professional beekeepers. With a tropical monsoon climate, Vietnam has ideal weather and land for breeders.