Douglas Farm

"AUSTRALIA'S biggest commercial honey group, Capilano Honey, has warned it will lose about $2 million in the first half of the financial year, a slide back into the red that could jeopardise its attempts to meet a $10 million debt deadline in March.

Capilano, close to launching a rights issue, said yesterday that worsening exchange rates for exporters and shrinking honey supplies due to drought were to blame.

''International conditions for supply of raw honey remain unpredictable,'' Capilano said. ''These conditions have a material unfavourable impact on Capilano's profit expectations through decreased export revenues and expected 'mark to market' devaluation of assets held in other currencies and higher-than-expected domestic honey prices to secure supply.''

It said the dire environment would force it to retreat from some of its offshore markets, including a large proportion of the Canadian market."

Full Article:

http://www.smh.com.au/business/outlook-not-so-sweet-for-honey-giant-20091216-kxmr.html

Further:

Austraia is trying to raise half a million dollars a year for research and development with a new levy plan.

Bee keepers, pollinators and queen bee breeders have agreed to switch from the current levy of 2 cents/kg on honey to a $1 per bee hive.

Australian Honey Bee Industry Council chairman, Lindsay Bourke, says while the industry has voted it through, they still need to figure out the details.

"The state's don't want to collect it and send it off to the commonwealth and if the commonwealth collects it there is a fee," he said.

"We haven't worked that out yet, but it's for Australia's interests and for the bee keeping industry that we all pay our little bit for research and development.