Ann: Half Year Report to Shareholders, page-139

The last 2-3 years have been low supply years, the industry is over coming a shortage, hence the low supply in the recent years, what we are seeing is a return to normal supply levels, not an oversupply, in an interview Ben McKee mentioned 18months ago the supply was so low they were living hand to mouth, meaning as inventories came in they were being packed, and they physically couldn't get enough honey, having a few months honey on stock is a much better position to be in, it means your sales guys can get out there and actually make sales and win contracts.

Look at the numbers you mentioned above, $32million of honey on stock, but $67.1 million of sales, now even if you only need $700k of bulk honey to make $1M of packed product, you can see they are not over supplied, they would eat through the inventory in a matter of months if they stopped buying.