Regional and international prospects for trading in ...
Transcript of Regional and international prospects for trading in ...
Regional and international prospects
for trading in Mozambican honey
Market study overview August 2020
Environomica Consulting www.environomica.com By Michele Galli [email protected]
Honey market study on regional and international markets to commercial-lize Mozambican honey
“ProEcon - Improving Framework Conditions in the Private and Financial Sector”
Implementing partners: Donors:
Objectives of the study
• Assess and analyze prospective regional and international markets especially in Southern Africa, EU and the Middle East
• Provide recommendations for GIZ and its partners in designing the upcoming strategy for honey produced in Mozambique.
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Tasks performed
• Review of project documents, studies and literature on international
honey markets in Mozambique, Southern and Eastern Africa, Middle East
and Europe
• Interviews with relevant industry stakeholders in Mozambique and
neighbouring countries
• Rapid market analysis of Southern and Eastern African, Middle Eastern
and European honey markets
• Submission of preliminary report and discussion with Como Consult
• SWOT analysis of selected key markets and conclusion of the study
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International honey market
• Between 2010 and 2018, net global honey demand has grown at a rate of 19,504 tonnes per year
• China confirms itself as global leader in honey production
• The five countries with the highest negative growth in production are France, Spain, Australia, USA and Germany
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Global import flow of honey
Source www.tridge.com 4Environomica unlocking sustainable change
Top importing countries
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Honey sector in Mozambique
• National honey production estimated at 500 tonnes, it could easily reach 10,000 tonnes of volume per year (Schneider 2018)
• Current estimated volume on formal market 30-40 tonnes, projected to reach 200-300 tonnes per year within 2 years and potential to reach 1,000 tonnes per year within 5 years
• At present, the formal domestic honey market is dominated by imports
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Honey sector in Mozambique
Honey imports have grown from 11 MT in 2010 to 521 MT in 2018. MOZ imports
honey for a price ranging from US$0.21 (from South Africa) to US$0.96 (from
Portugal).
11,02 8,53 8,8653,7 61,06
133,8
240,83
418,37
521,7
0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015 2016 2017 2018
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The price of honey on key markets
The estimated minimum price per exported kg of Mozambican honey (2.88
USD/kg) compared to the average price paid by the largest and key global
honey markets assessed by the study.
2,882,52
3,63,27
3,43
2,54
3,63
4,54
3,97
2,43
3,38
1,5
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
MOZ USA Germany Japan France UK Italy Saudi Arabia Netherlands Poland UAE South Africa
USD/kg of honey
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European markets
The EU is currently the largest global market with 207,000 MT imported in 2018,
followed by North America with 202,000 MT, Asia with 62,000 MT, and the
Middle East with 31,000 MT.
31
62
202
207
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European market analysis
• The best price is paid for specialist honey that is both certifiedorganic and fairtrade
• Honey and bee products imports from Mozambique into the EU are not allowed because the country has not submitted a RMP
• Three suggested key markets to target: Germany, U.K., and France
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Import value 2018 (USD)
$ 296,928,380
Germany: SWOTs
From Sub-Saharan Africa
$ 2,299,380
Import volume 2018 (MT)
82,480 MTFrom Sub-Saharan Africa
330 MT
Average price (USD/kg)
$ 3.60 From Sub-Saharan Africa
$ 5.71
Imports from SSA countries
less than 1% of market
volume and value
Stringent regulations for
market access
Weaknesses
Growing demand for honey
Highest price for SSA honey
on EU markets
Largest EU market for
certified organic
Responsible consumerism
Opportunities
Failure to comply with
regulations and standards
limits / suspend access
Failure to fetch premium
price in lack of research and
product placement
Threats
Largest honey import market
in the EU
Largest global market for
SSA honey (value)
Second largest global import
market (value)
Strengths
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Import value 2018 (USD)
$ 128,610,000
United Kingdom: SWOTs
From Sub-Saharan Africa
$ 677,506
Import volume 2018 (MT)
50,600 MTFrom Sub-Saharan Africa
172 MT
Average price (USD/kg)
$ 2.54 From Sub-Saharan Africa
$ 3,73
Imports from SSA countries
less than 1% of market
volume and value
Stringent regulations for
market access
Weaknesses
Largest global market for
certified Fairtrade
Commonwealth members
may gain advantage on
competitors after Brexit
Opportunities
Failure to comply with
regulations and standards
Failure to fetch premium
price
Uncertainty over Brexit
negotiations outcome
Threats
Second largest EU market for
SSA honey (value & vol)
Fifth largest global import
market (value)
Commonwealth trade
benefits
Strengths
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Import value 2018 (USD)
$ 129,300,000
France: SWOTs
From Sub-Saharan Africa
$ 122,552
Import volume 2018 (MT)
37,680 MTFrom Sub-Saharan Africa
33.7 MT
Average price (USD/kg)
$ 3.43 From Sub-Saharan Africa
$ 3.44
Imports from SSA countries
less than 1% of market
volume and value
Stringent regulations for
market access
Lowest price for SSA honey
Weaknesses
EU market with most routes
to East and South SSA
Declining production triggers
surge in demand
Growing market share for
organic and fairtrade
Opportunities
Failure to comply with
regulations and standards
limits / suspend access
Failure to fetch premium
price in lack of research and
product placement
Threats
Highest number of suppliers
from SSA
Third largest global market
for SSA honey (value & vol)
Fourth largest global import
market (value)
Strengths
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Middle Eastern markets
The Middle East is currently the third largest global market with 31,000 MT overall
imports in 2018. Largest share in import volume and value is held by GCC
countries with 26,000 MT in 2018 (86%).
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Middle East market analysis
• GCC countries import less honey from Sub-Saharan African countries
than the EU in terms of both global and domestic share in trade volume
• The best prices in GCC countries are paid for premium quality honey that
has recognizable nutritious and medicinal values
• Bee products may exported to GCC countries if the competent
authorities and establishment in the country have fulfilled requirements
• Suggested key market to target: United Arab Emirates
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Import value 2018 (USD)
$ 30,810,000
United Arab Emirates: SWOTs
From Sub-Saharan Africa
$ 116,963
Import volume 2018 (MT)
9,110 MTFrom Sub-Saharan Africa
20.2 MT
Average price (USD/kg)
$ 3.38 From Sub-Saharan Africa
$ 9.42
Imports from SSA countries
less than 1% of market
volume and value
Import volume of SSA honey
only 20 MT in 2018
Weaknesses
High demand and low
domestic production
High premium prices for
specialist honey
Consumer taste may be
more accustomed than EU
Opportunities
Failure to fetch premium
price in lack of research and
product placement
Failure to place product if it
does not match consumer
preferences
Threats
Largest Mid East market for
SSA honey (value & vol)
More accessible regulations
than in the EU
UAE supplies honey to MOZ
Strengths
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Regional markets
Honey import markets in Southern and Eastern Africa are generally of smaller
volumes and value than EU and GCC markets. South Africa is the largest regional
market with 4,400 MT of imported honey in 2018.
4,4
0,4
0,1
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Regional market analysis
• South Africa is the largest import market for SSA honey in terms of volume, but market is worth less than half the EU market for SSA honey
• Bee products from MOZ may be more likely to enter the market than in the EU and the Middle East
• South Africa is the suggested primary key regional market to target
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Import value 2018 (USD)
$ 6,610,000
South Africa: SWOTs
From Sub-Saharan Africa
$ 1,386,408
Import volume 2018 (MT)
4,410 MTFrom Sub-Saharan Africa
654.4 MT
Average price (USD/kg)
$ 1.50 From Sub-Saharan Africa
$ 1.55
Market dominated by low-
quality honey from China
Low avg price for SSA honey
Excluding Zambia, then
imports from SSA less than
1% (value & vol)
Weaknesses
Most accessible regulations
SA supplies honey to MOZ
Growing demand due to loss
in production capacity
Demand for HQ honey as a
result of scandal
Opportunities
Failure to fetch premium
price in lack of research and
product placement
Niche premium market too
small to absorb large
volumes
Threats
Largest global market for
SSA honey in volume
Significant share of SSA
honey on overall imports
Proximity to MOZ facilitates
export
Strengths
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THG is an example of inclusive
beekeeping business model
that completes the value chain
in 16 African countries and
exports to international
markets.
THG is selling Tanzanian
multifloral honey exported to
GCC countries for a price
ranging from $5.20 to $6.20
USD/kg.
The Hive Group 0% 73%
Models and opportunities
Wildlife Friendly
Enterprise NetworkSlowfood presidia
Honey in MOZ is often
produced in forest areas
populated by vulnerable and
endangered wildlife.
The WFEN scheme may be
accessible to MOZ producers
and attaining the certification
may help articulating the
‘specialness’ and the ‘story’
that are necessary to place
the produce on regional and
international niche markets.
SFP are for virgin honey
obtained from indigenous
botanical species made in a
traditional production area
and for species, subspecies or
native populations of bees
whose conservation is
threatened.
The SFP scheme may also
help articulate the
‘specialness’ and the ‘story’ of
MOZ honey.
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Conclusions & recommendations
To sustainably export Mozambican honey, start producing and processing high-quality differentiated
product to place on the target markets and fetch premium prices. Specialist honeys sell on international
markets for US$5.00-90.00 per kilo, while blended grades sell for US$1.10-2.30 per kilo.
Recommendation 1. Perform a survey to assess the learning needs of key value chain actors and then
build their capacity for producing, processing and supplying specialist monofloral and multifloral honey.
Likewise, research and development are needed to support marketing claims for premium MOZ honeys.
Bet on quality rather than on quantity1
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Conclusions & recommendations
The accessibility of European, Middle Eastern, and regional markets for SSA honey is inversely related to
their respective value. None of the assessed countries imports more than annual 150 MT of honey from SSA
suppliers, except for South Africa that pays the lowest price for SSA honey.
Recommendation 2. A multiple-stage export strategy should be synched with the process of building
Mozambique’s capacities to comply with regulated standards of higher-end markets. Start with targeting
regional markets (South Africa), while building capacity to meet import requirements and customer
preferences on Middle East markets. Only venture on EU markets once compliance with regulations at
national and supply-chain levels have been achieved and the product’s distinctive features isolated and
certified.
Adopt an export strategy with multiple targets 2
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Conclusions & recommendations
In order for honey to enter the EU, country of origin shall meet requirements to enter the Third Country List.
The accreditation process involves obligations to bare by the competent authorities in MOZ and investments
to be made in product testing and safety measures (estimated cost €20,000+).
Recommendation 3. Advocate at and assist the Ministry of Agriculture of MOZ with the submission of a
honey Residue Management Plan to the EU and build value-chain capacity to meet specific product
standards and requirements including for food safety, pesticides residues, quality standards and labelling.
Assist MOZ with fulfilling EU accreditation process3
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Conclusions & recommendations
The EU is the largest global market for SSA honey in terms of traded value. Thus, it is likely to play a crucial
role for the medium and long term sustainable development of the MOZ honey industry. But not every
price will serve the purpose.
Recommendation 4. In order to fetch a premium price on higher end EU markets, market the product to
influence consumers’ willingness to try unfamiliar flavours and to raise awareness of the special qualities and
purity of Mozambican honey and its ecologically sound origins. Taking success stories such as the Manuka
honey from NZ as an example.
Market product to build reputation on specialness4
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Conclusions & recommendations
GCC countries import less honey from SSA than the EU. However, GCC regulations are more accessible than
EU and the per capita consumption of honey is the global highest. Info on Middle Eastern honey markets
are scattered unless intermediated: need for venues to promote knowledge transfer between industry
stakeholders.
Recommendation 5. Organize exchange events between key MOZ value chain actors and SSA honey
export stakeholders (such as THG) to promote knowledge transfer and networking. In order to fetch a
premium price, MOZ honey suppliers will need to tap into demand for specialist honey and match national
consumer preferences for colour and taste.
Access to GCC markets through info and research 5
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Conclusions & recommendations
South Africa is the largest global market for SSA honey in terms of traded volume. However, market
dominated by low-quality blended grade honey. MOZ honey suppliers will need to fetch a premium price to
place a product on a market where blended grades are paid between US$1.34 and US$2.71.
Recommendation 6. Build value chain capacity to reach premium grade quality first, in order to
guarantee margins for sustainability of the export operation thereafter. Then target the South African honey
market with a differentiated product and market it for its distinctive nutritional and medicinal features to
fetch a premium price.
Reach premium grade then target South Africa6
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Conclusions & recommendations
Beeswax market is worth over US$350 million in global trade value and sees four African countries among
the top ten producers. Global bee pollen market is worth over US$550 million and is expected to reach
US$850 million by 2026. These are valuable opportunities to diversify the sector and make the most of
beekeeping operations, while strengthening the MOZ honey value-chain.
Recommendation 7. Identify and analyse markets for beekeeping by-products. Then, integrate training
module on good practices in harvesting and handling the beekeeping by-products. Also, assess potential
for processing and exporting cosmetics raw beekeeping products mixed with locally available natural oils
(such as from the locally abundant sesame seed).
Diversify export strategy with by-products 7
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Assist accreditation process
of MOZ on the EU Third
Country List
EU accreditation
Production standard and
product differentiation
survey
Research
Capacity building on: (a)
producing, processing and
supplying speciality
mono/multifloral honey and
(b) harvesting and handling
by-products
Capacity building
2020
Characterization of MOZ
honey grades, origins and
properties
Characterization
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Suggested export strategy timeline
Environomica unlocking sustainable change
Research on consumer
preferences in chosen GCC
markets to place product
through marketing
campaigns based on its
distinctive, differentiated
features
Premium on international markets
Place product on key
regional market through
marketing campaigns based
on its distinctive features
Premium on regional markets
Organize events for
knowledge transfer on inter-
national honey
trading best practices to
favour networking
Organize netwoking events
2021
Trigger process to enter one
or more certification
schemes
Start certification process
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Suggested export strategy timeline
Environomica unlocking sustainable change
Promote stakeholder
participation in international
events to broaden the reach
of Mozambican honey
Take part in international events
Secure organic and/or
Fairtrade and/or other
certification for the
product to market it on key
EU markets and fetch a
premium price
Secure certification for EU niche markets
2022/3
Assess prospects for
diversification on established
trade routes to sell
beekeeping by-products
R&D for by-products
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Suggested export strategy timeline
Environomica unlocking sustainable change
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