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.

1Environomica unlocking sustainable change

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


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


Global import flow of honey

Source www.tridge.com 4Environomica unlocking sustainable change

Top importing countries


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


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


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


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


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


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



$ 128,610,000

United Kingdom: SWOTs


$ 677,506



172 MT



$ 3,73



volume and value


market access

Weaknesses


certified Fairtrade

Commonwealth members

may gain advantage on

competitors after Brexit

Opportunities




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



$ 129,300,000

France: SWOTs


$ 122,552



33.7 MT



$ 3.44



volume and value


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



limits / suspend access



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


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%).

26

31


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



$ 30,810,000

United Arab Emirates: SWOTs


$ 116,963



20.2 MT



$ 9.42



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



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


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


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



$ 6,610,000

South Africa: SWOTs


$ 1,386,408



654.4 MT



$ 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



product placement

Niche premium market too

small to absorb large

volumes

Threats


SSA honey in volume

Significant share of SSA

honey on overall imports

Proximity to MOZ facilitates

export

Strengths


22

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.

Environomica unlocking sustainable change

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



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



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



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



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



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



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


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

30

Suggested export strategy timeline


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

31



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

32



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unlocking sustainable change

www.environomica.com

regional and international prospects for trading in

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