Voluntary Report - public distribution

**Date:** 12/22/2005

**GAIN Report Number:** CA5083

CA5083

**Canada**

**Honey**

**Production and Trade Update**

**2005**

**Approved by:**

![](media/image1.wmf)Gary C. Groves

U.S. Embassy

**Prepared by:**

George Myles

**Report Highlights:**

Canadian honey production in 2005 slipped to 33,918 metric tons, 1%
below the year earlier level due to lower production in Alberta and in
British Columbia. Low prices for honey are adversely affecting the
market. Some beekeeping groups are exploring Canadian anti-dumping law
provisions over concerns about imports of low-priced Chinese honey.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Ottawa \[CA1\]

\[CA\]

**Honey Production Update**

Canadian honey production in 2005 slipped to 33,918 metric tons, 1%
below the year earlier level due to lower production in Alberta and in
British Columbia. While honey output was higher in both Saskatchewan and
Manitoba, beekeepers in Alberta reported a 14% decline from last year
due to a cold summer. Almost 80% of total Canadian honey production is
produced in the Prairie Provinces. In British Columbia, honey yield was
close to the five year average but production fell 25% from last year's
near record harvest. The estimates for total Canadian honey production
are shown in the table below.

According to Statistics Canada, lower wholesale prices for honey in 2005
adversely affected the market. Some beekeepers chose to rent their hives
for pollination purposes rather than to extract the honey. Competition
from cheap imports (see trade summary) and weak bulk honey prices made
honey sales less attractive. There was a reported increase in the number
of producers who sold to the retail market because wholesale honey
prices fell well below \$1 per pound.

  --------------------- -------------- ------------- ---------------------
  **Canadian Honey                                   
  Production**                                       

                        \# Beekeepers  \# Colonies   Production (metric
                                                     tons)

                                                     

  Average 1999-2004     8,690          590,818       34,603

  2004 Revised          7,925          597,890       34,242

  2005 Prelim.          7,895          609,645       33,918

                                                     

  Source: Statistics                                 
  Canada                                             
  --------------------- -------------- ------------- ---------------------

**Trade**

**Imports**

Annual Canadian honey imports have been relatively stable in recent
years. Honey producers are complaining that cheap imported honey from
China, Vietnam and Argentina is driving down Canadian honey prices (the
table on the next page details average prices per kilogram of imported
honey). Many honey packers in Canada are blending Chinese and Argentine
honey with Canadian honey. At least one major grocery distributor is
carrying a brand name packaged honey product from Australia. U.S. sales
of honey to Canada are minor.

![](media/image2.wmf)

**Average Prices of Honey Imports**

The following table clearly shows that low-priced honey is entering
Canada from Asian countries and Argentina.

![](media/image3.wmf)

Exports

In the January to September period of 2005, the pace of Canadian honey
exports rose 3% above the year earlier level, but on balance for the
year, they are forecast to be similar, or slightly below 2004. Total
Canadian honey exports have been under pressure in recent years
reflecting strong competition in the U.S. honey market, the major export
destination for Canadian honey exports. Over the five-year period
2000-2004, Canadian honey exports recorded an annual average growth rate
of --11%.

![](media/image4.wmf)

**Policy**

Recent honey industry newsletters indicate that Alberta beekeepers are
seeking support for anti-dumping action against Chinese honey similar to
U.S. anti-dumping action (see USITC Invs. Nos. 701-TA-402 and
731-TA-892-893). Producers argue that the current bulk honey prices in
Canada are due to unfair competition from cheap imports. Wholesale honey
prices are reportedly below C\$1 per pound. So far, these developments
have not resulted in a formal petition to the Canada Border Services
Agency, the federal government department that conducts Canada's
anti-dumping and countervailing duty investigations.

# 

**Canada's Honeybee Prohibition Order**

In May 2004, The Canadian Food Inspection Agency (CFIA) enacted
regulations to permit U.S. honeybee queens from the continental U.S. and
their attendants to be imported into Canada. The prohibition for
importing any other honeybees from the continental U.S. was renewed
until December 2006. Canada has prohibited the importation of honeybees
from the continental U.S. since the outbreak of varroa mite in U.S.
honeybees 1987. Imports of bees from Hawaii were excluded from the ban.
Canada's Honeybee Importation Prohibition Regulations, in effect for
many years to protect against the importation of varroa mites, were
renewed in 1999 with the proviso that the CFIA would annually review the
health status of honeybees in Canada to ensure that continuing the ban
was appropriate. Since the last extension of the prohibition in 2000,
the health status of Canadian honeybees has deteriorated and treatment
resistant varroa mites are known to exist in at least seven (7)
provinces and antibiotic-resistant American Foul Brood occurs in western
Canada with the exception of Saskatchewan. Canadian beekeepers have
faced increasing difficulties in obtaining the necessary number of
honeybee queens for the honey production and pollination seasons due to
winter losses and limited availability from Hawaii, New Zealand and
Australia. Importing honeybee queens from the continental U.S. will help
Canadian beekeepers replenish their stock with a minimum risk of
introducing new bee diseases.

As a result of the easing of the restriction on importations of live
bees from the United States, Canadian beekeepers have increased imports
of live U.S. bees over the past two years. The value of imported Queens
from the United States reached \$1.3 million in 2005.

![](media/image5.wmf)

#  

# Tariffs

Canada applies no import tariffs to honey.

# Honey Regulations

Quality standards, packaging and labeling requirements for honey are
laid out in the Canada's Honey Regulations. The full text of the honey
regulations is available at:
http://laws.justice.gc.ca/en/C-0.4/C.R.C.-c.287/index.html

# Container Sizes

Canadian honey regulations stipulate the following metric sizes for
domestic or imported honey: any net weight up to 150 grams, 250 grams,
375 grams, 500 grams, 750 grams, 1 kg, 1.5 kg, 2kg, 3kg, and 5 kg. For
bulk containers: 7 kg, 15kg, 30 kg, or any larger container where net
weight is a multiple of 1 kg. However, there is a provision in the
regulations for novelty containers in non-standard containers at the
discretion of the Minister.

Honey packed in bulk containers and graded under these Regulations shall
be packed in accordance with the following sizes of containers:

(*a*) 7 kg;

(*b*) 15 kg;

(*c*) 30 kg; or

(*d*) larger containers the net weight of which is measured in multiples
of 1 kg.

U.S. honey cannot meet Canada #1 or #2 grade if it contains foreign
material that would be retained on a U.S. National Bureau of Standards
60 mesh screen. U.S. exporters marketing liquid honey containing a piece
of honeycomb in the jar should note this restriction. Exports to Canada
must be accompanied by an import declaration filled out by the shipper
and the importer is responsible for inspection fees. Copies of the
import declaration are available from the Dairy, Fruit & Vegetable
Division, Canadian Food Inspection Agency, telephone (613) 225-2342.

**VISIT OUR WEBSITE**: The FAS/Ottawa website is now accessible through
the U.S. Embassy homepage. To view the website, log onto
[http://www.usembassycanada.gov](http://www.usembassycanada.gov/); click
on Embassy Ottawa offices, then Foreign Agricultural Service. The
FAS/Ottawa office can be reached via e-mail at: <agottawa@usda.gov>