http://edge.alluremedia.com.au/uploads/*/2015/09/bee.jpgPhoto: Capilano Honey.
Capilano — Australia’s largest honey company — has bought the country’s largest manuka beekeeping operation for $6 million, in a bet that it will profit from the China-Australia free trade agreement when it is passed.
As China’s demand for manuka honey increases, Capilano Honey’s sales director Peter McDonald has told The Australian that the company is ready to reap the FTA’s benefits, and more importantly get ahead of rivals in the New Zealand market.
Under the agreement between the two countries, the 15% tariff on natural honey and the up to 25% tariff on honey-related products will be removed.
“With the FTA, we’ll continue to see our sales to China double year-on-year,” McDonald said.
“When you look at the ageing population in China, there’s a demand for healthy foods and honey fits that demand.”
Manuka active honey is sourced from a species of plant native to Australia and New Zealand and is well known for its antibacterial qualities.
For centuries it has been used as a natural source of vitality, and has also been found through laboratory research to have a unique and remarkable level of antibacterial activity which has been clinically proven as helpful for wounds, skin conditions and stomach ulcers whilst boosting immunity and vitality.
In the 2015 annual report Capilano reported a net profit after tax of $7.84 million, a 70% improvement over last year’s $4.62 million.
It also reported a revenue of $120 million up from $86 million in the previous year.
“Selling and marketing premium products with beneficial health and wellness attributes have delivered heightened revenue and growth for Capilano,” said managing director Benjamin McKee in his review of the company’s operations.
“Consumer interest in honey continues to grow as part of a wider consumer interest in health and wellness and we are focused on opportunities to increase communication to consumers to drive product knowledge, usage occasions and the frequency of purchase.
“We continue to expand our emphasis and resources in key export markets. New in-market sales support in North America and Asia has been put in place to render us in a position to develop these markets as Australian honey supply improves.”
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Old article but note the impact of the Free Trade Agreement!
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