Increasing Imports of Honey Leading to Price Destruction
WASHINGTON, DC – U.S. honey production has remained relatively stable over the past 10 years, averaging about 157 million pounds per year, even as producers have grappled with significant overwinter colony losses and variable honey prices.
North Dakota leads the nation in honey production, and along with Montana and South Dakota, these Northern Plains States are responsible for nearly half of all honey produced in the United States. While the volume produced domestically has been relatively steady, the U.S. consumption of honey and honey-sweetened products has steadily grown since the 1980s.
To meet the increasing demand, the industry has opened the trade doors to the point that imported honey now accounts for 70 percent of the U.S. supplies (416 million pounds).
The downside to abundant supplies however is the lower prices received by producers, including a 24 cent per pound decline in 2019, equal to an 11 percent loss in value.
(SOURCE: Economic Research Service)