Kiwi manuka honey exporters have recorded a surge in European demand as the removal of tariffs aligns with a fall in the value of the New Zealand dollar and strong harvest volumes.
The 17.3 percent tariff removal on New Zealand-sourced honey under the new European Union-New Zealand free trade agreement is translating into increased sales. At the same time, a sliding New Zealand dollar has reduced the cost of Kiwi imports by around 8 percent against the Euro - compared to the same time last year. The reduction in the wholesale cost to European importers comes at a time when inflation and the invasion of Ukraine is reducing discretionary spending and demand for luxury goods throughout the European Union.
NZ honey sales to the EU have risen dramatically in recent years, driven by growing interest from German consumers for Kiwi manuka blends. Last year, sales to Europe reached $60 million, around 12 percent of the $500m export market.
Industry experts say the 2023 season is expected to be strong, with high moisture levels recorded at the Manuka trees' base and the predicted LA Nina weather patterns set to contribute to elevated nectar flows over the coming months.
Hive numbers around the country have also fallen over the past year by 40 percent from a peak of one million, providing more choice of placement locations for Kiwi apiarists and a higher quality export product.
Derek Burchell-Burger, Naki NZ's global market manager, said the European Union importers' response after the removal of import tariffs was immediate - contributing to an annual sales growth of over 15 percent. He said their premium manuka honey retails for up to $800 per kg in Europe and the pandemic has helped boost consumer interest in the wellness features of the product.
“While Germany is the largest EU importer of honey from non-EU countries, France is a close second with almost $1bn of the product consumed annually. We are currently in talks with a number of distribution partners in this market as we look to expand our retail presence and increase access for French consumers to manuka honey.”
Over 99 percent of Naki NZ’s honey is exported, with a small number of retailers in Queenstown providing access to the products for international visitors.
