Topic: Honey Production/Selling the honey Crop
Honey Production
The commercial beekeeper can deal with this question
in two ways:
- Sell the crop in drums to honey packers/processors
- Sell the crop directly by bottling and processing
their own crop
The larger honey producers usually do not bother with
bottling and selling their honey to the honey consumer. They sell their
honey to the honey processor. There are advantages to this:
- Once the crop is harvested, they fill drums with honey
and deliver or have it picked up by the processor. The honey season is
over and time is used to prepare for the next honey season.
The down side is they receive market price
for the honey which is being paid by the processor. Large honey producers
usually have developed a good working relationship with packers/processor and
have little trouble selling the crop. Sometimes the processor will give
the large producer several cents per pound more than others because of the past
quality of honey sold to them.
Large commercial honey producers think in
terms of truck loads of honey being sold -- 50 barrels to the semi-truck load.
On the other hand, many smaller commercial
beekeepers sell their own honey.
- Rather than selling the honey at $1.00 a
pound, they sell it for $2.50 a pound or more.
Many successful small commercial beekeepers
have developed a number of wholesale outlets such as grocery stores, health food
stores, gas stations, feed mills, restaurants, orchards, etc. to sell the
honey. They can sell distinctive local honey with a private label.
However, this requires just as much work as
producing the honey and it requires selling skills, business knowledge, and
personal relation skills.
- First the beekeeper must process the
honey beyond just extracting it. This means bottling it, labeling it,
delivering it, and servicing accounts.
- Second, the beekeeper must find a market
place to sell large quantities of honey.
- Third, the beekeeper is held to a higher
standard -- His/her name is on the label. The honey in the bottle is
expected to meet all health standards including the facility where it is
packaged. The producer must sell a quality product.
- In the digitized age, the beekeeper may
be expected to put bar codes on labels so the reading devices at the retail
level can scan the product and record information on sales as well as print
out a sales price for the customers grocery bill. As a
management tool for the retailer, the bar code has been an accounting miracle.
It will indicate what products are selling and which ones are not.
Shelve space holding a product which is not selling is quickly identified
and that product is replaced with one that does sell.
- The beekeeper as a salesman/saleswoman
must have people skills. Dealing with customers, complaints, etc. is
part of the business. And this is an area that many beekeepers fall
short.
- Finally, the beekeeper must be a good
book keeper, record keeper. Batches of honey sold need to recorded,
amounts of honey sold need to be recorded, dates when honey is sold need to
be recorded, and one might want to purchase product insurance. We live
in a world today far different than just a few years ago. Product
recalls due to contaminated honey are not unusual and legal proceedings are
common place. If you sell your honey to the public, you are held
accountable for any fault found in that product. As they say at an
auction, "Fair warning"!