the destruction of margins by big business I have decided to get into the honey business. With this in mind, I recently attended a bee conference. In addition to being very interesting, it was also somewhat concerning. The majority of producers in Australia sell their honey to Capilano, the nation’s largest processor of honey (the […]

the destruction of margins by big business I have decided to get into the honey business. With this in mind, I recently attended a bee conference. In addition to being very interesting, it was also somewhat concerning. The majority of producers in Australia sell their honey to Capilano, the nation’s largest processor of honey (the largest shareholder of which is a business associated with Kerry Stokes). Capilano pays producers around $6.00 a kilogram. Capilano, in turn, sells its output to supermarkets who retail it for around $6.00 for 375 grams. The academics tell me that due to a range of factors, Western Australian honey is among the best in the world. Despite this, Capilano, with the help of Coles and Woolworths, has turned it into a commodity. In doing so, returns to producers have been limited as, indeed, has occurred with many other products including milk and bread. While I…