APIS Volume 7, Number 6, June 1989
In this issue
- Fate of Proposed Varroa Rule by APHIS
- How to Price a Product
- Wild Honey Bees in Arizona
VARROA RULE--WHAT HAPPENED?
By now, most folks know that the proposed Varroa rule published in the Federal Register on March 16, 1989 was abruptly withdrawn by APHIS on April 13. According to Dr. Eric Mussen, in From the U.C. Apiaries," the following is his analysis of what really happened. This is written in the first person on occasion. The "I" refers to Dr. Mussen in all cases.
"Dealing with the spread of exotic pests and diseases in honey bees has turned out to be too much for the federal government. The United States Department of Agriculture Animal Plant Health Inspection Service (USDA/APHIS) is the agency that oversees prevention of introduction of agricultural pests into the United States and quarantine and eradiction of the pests if they become introduced into the country. APHIS was very much involved in the northern and central California medfly eradication program and the Africanized bee eradication program around Bakersfield a few years ago. So why are the bee mite problems different?
Do beekeepers in the United States look forward to introduction of exotic pests to challenge their beekeeping skills? I doubt it. Did all U.S. beekeepers consider the federal prohibition on importing bees into the country rational and abide by its tenants? I doubt it.
Once Acarapis woodi and Varroa jacobsoni were introduced into the country, did every beekeeper accept the inevitable (that his or her bees would become infested) and ask the regulatory personnel not to intervene? I know this is not the case.
In simplest terms, the beekeeping industry is too mobile to control. That statement may not be accepted by long time honey producers and noncommercial beekeepers who keep their hives on a single location 12 months of the year. That type of beekeeper requested protection from having mites brought into their areas and the state regulatory personnel are doing their best to provide protection. But the bigger picture involves the need for honey bees in commercial crop pollination. In the study just completed by the National Honey Board, researchers determined that over $9 billion worth of crops are dependent on honey bee pollination in the U.S. While a few states, like California, have much greater demands for bees than most other states, some commercial pollination occurs in all states.
The source of the bees is the interesting part of the story. Communications that I have had with people in eastern states suggest that out-of-state, migratory beekeepers provide pollination services in many states where there are more than enough "local" bees in the neighborhood to get the job done. The resident beekeepers simply have neither the equipment nor the desire to move their hives to the orchards.
In California there is now a demand for 800,000 to 900,000 hives of bees for almond pollination each February. The carrying capacity for the state the rest of the year might cover 400,000. It is obvious that hives of bees must be trucked into the state from other locations to meet this need.
Since our agricultural industry, nationwide, depends so heavily on highly migratory beekeeping operations, it proved to be impossible to regulate the spread of the mites by quarantine and eradication.
The Negotiated Rule Making Policy had not been tried by APHIS until the question of what to do about Varroa jacobsoni arose. The idea was to have a group of people, representing all the various aspects of beekeeping and crop pollination, come to a consensus on what should be done nationally to protect beekeeping operations from contracting mite infestations. Deliberations took place twice, over many days and nights, near Washington, D.C. Then the final plan (negotiated rule) was announced in the March 16th Federal Register with a short comment period.
A number of written comments were generated in response to the proposed rule, but that happens following most statements of regulatory intent in the Federal Register. Of interest, and also having much persuasion, was the fact that among the letters were statements from members of the rule making committee saying that they could not support the rule they helped to develop.
So the intended regulations are history, and it is obvious that the federal government probably will stay out of the bee pest and disease eradication business from now on. However, there are some things that possibly could and should be salvaged from this exercise. APHIS administrators developed a manual that discusses diagnostic, control and certification procedures for use with Varroa mite. That information could be very useful for state regulatory personnel. Now, everything comes right back to the states in dealing with the mites. Remember that it is the state of destination (or states that are passed through to get there) and not the state of origin of a load of bees that determines the critera for letting out-of-state bees into that state. It is up to the regulatory personnel in the state of origin to certify the bees using the state of destination's criteria."
Two things should be added to the above discussion. Beyond the manual developed for Varroa detection and control, there exists a videotape produced at the University of Florida on detection also funded by APHIS. This is VT 249 available through your local county Cooperative Extension Office. Those in Florida wishing to know more about moving bees out of state should contact their local bee inspector or the State Apiarist, Mr. Laurence Cutts, Division of Plant Industry, phone 904/372-3505.
PRICING YOUR PRODUCT
Establishing a price for any product is not easy. The following article was reprinted by the Provincial Apiarist, Douglas McCrory, in his Ontario newsletter. "Pricing Maple Syrup," by W. Langenber, K.C.A.T. was orginally printed in the Ontario Maple Syrup Newsletter, edited by John. W. Butler. It has ideas which can be easily applied to honey.
Putting a price tag on maple syrup is one of the most difficult tasks a maple syrup producer has to face. Over pricing will result in consumer resentment and under pricing in an inadequate return on investment. Knowledge of market conditions, consumer attitudes and production costs are all essential to evaluate when determining the true retail value of maple syrup.
Setting a Pricing Structure:
In determining the retail price of maple syrup, first the production costs should be considered, which have been estimated for 1988 to be about $7.00 per Litre (L) if the bush consists of 1000 taps or less. From the basic production costs the sale price can be estimated by using the mark-up scale. This mark-up scale is determined by the demand for the product. Since the demand for maple syrup is high not only in North America but also in Europe, the following mark-up scale is not unreasonable. The bulk price can be set with a mark-up of 20 to 25% over the cost price, the wholesale price at 35 to 45% over the cost price and the retail price 65 to 75% over the cost price as outlined in Table 1.
Table 1: Bulk, Wholesale and Retail Pricing of Maple Syrup per Litre (about one U.S. Quart) Based on a Production Cost of $7.00 per Litre (including container).
BULK PRICE WHOLESALE PRICE RETAIL PRICE
(in a drum) (in containers) (in containers)
Cost Price: $6.00/L Cost Price: $7.00/L Cost Price: $7.00/L
Mark-Up 20-25% from Mark-Up 35-45% from Mark-Up 65-75% from
Cost Price Cost Price Cost Price
Sale Price Range Sale Price Range Sale Price Range
$7.20 - $7.50/L $9.45 - $10.15/L $11.55 - $12.25/L
Average Sale Price: Average Sale Price: Average Sale Price:
$7.35/L or $9.80/L or $11.90/L or
$29.40/4L $39.20/4L $47.60/4L
Percentage of Retail Percentage of Retail Percentage of Retail
Price Price Price
62% 82% 100%Retail Pricing:
The price tag on maple syrup sold in retail stores depends on the container size the syrup is sold in. The smaller the container, the higher the unit price will be as it will cost more to fill smaller containers. The following pricing scale outlined in Table 2 can be used to determine the price range for various container sizes once the 4L (about one U.S. Gallon) container price has been established.
Table 2: Retail Pricing for Six Container Sizes, Based on a Retail Price of $45.00/4L.
Percentage of the
Unit Size Retail Price of 4L Retail Price per Unit
4L 100% $45
2L 55-60% $26 - $29
1L 30-35% $14 - $17
500 ml (1/2 U.S. Quart) 19-22% $ 9 - $11
250 ml (1/4 U.S. Quart) 11-15% $ 5 - $ 7
125 ml (1/8 U.S. Quart) 7- 9% $ 3 - $ 4Wholesale Pricing:
Table 3: Wholesale and Retail Values for Various Size Containers Sold in Multiple Units of Four.
Price Per Unit
Wholesale Units Container Size Wholesale Retail
4 4L $37.00 $45.00
8 2L $21.00 $27.50
16 1L $12.00 $15.50
32 500 ml $ 7.50 $10.00
64 250 ml $ 4.81 $ 6.00
128 125 ml $ 3.00 $ 4.00Be Market Oriented:
The pricing of maple syrup is determined not only by the cost of production but also by the market conditions. The pricing structure may vary from locality to locality. The price tag is to a great extent influenced by the proximity to major markets. Retailing in a souvenir shop in a large city allows for a higher pricing for a unit of syrup than when the same unit is retailed in a corner store in a rural area.
Also the retail price should be set to suit the wishes of customers. This type of pricing is very critical at the farm gate and on roadside markets. Here the customers are driving long distances to find bargains. In many European countries on the roadside market the price tag is the result of the ultimate agreement between the customer and the vendor. The level of this price tag may be somewhere between the wholesale and the retail price. After all - a satisfied customer is the gate to increased sales.
WILD BEES
Dr. Marshall Levin is concerned about bees in rocks in Arizona, according to the May cover story in American Bee Journal. He says the rest of the beekeeping community should also be. I couldn't agree more. The presence of wild or feral colonies will be a big thorn in the side of beekeepers when the African bee arrives. They will provide a great deal of competition for nectar and pollen resources and also may prove to be reservoirs of tracheal and Varroa mites, says Dr. Levin. Here are his suggestions to minimize anticipated problems:
- Locate feral colonies and evaluate their nuisance potential.
- Locate potential future nesting sites for feral colonies and keep them under observation.
- Periodically survey your neighborhood for newly established feral colonies.
- From time to time collect bees from feral swarms and have them checked for tracheal and Varroa mites.
- Learn how to kill feral bees and destroy their nests. Be prepared to do so when they are infested with mites or potentially become a stinging hazard.
There are few bees in rocks in Florida, but African bees will nest almost anywhere, including underground burrows. One key to successful beekeeping after arrival of African honey bees will be a creative public relations program by the beekeeper. Perhaps the most important thing that can be done now is to sensitize yourself and your neighbors to present and future locations of wild bees. Actively rooting out feral bee nests and helping persons contend with their "bee problems" will go a long way toward the public approval so necessary to continue keeping managed honey bees in the future.
Malcolm T. Sanford
Bldg 970, Box 110620
University of Florida
Gainesville, FL 32611-0620
Phone (904) 392-1801, Ext. 143 FAX: 904-392-0190
http://www.ifas.ufl.edu/~entweb/apis/apis.htm
INTERNET Address: MTS@GNV.IFAS.UFL.EDU
©1989 M.T. Sanford "All Rights Reserved
