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“Should I Be Planting Manuka for Honey ?”Presentation to Forest Tech Conference, Nov 16, 2016Stephen Lee – Commercial Manager
High Performance Manuka Plantations PGP
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“Should I Be Planting Manuka for Honey ?”
• Current Situation
• The High Performance Manuka Plantation PGP Programme
• Our Advice
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Retail shelf price of select honey products in Sainsbury’s London (per kg)
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Updated: New Zealand’s average
export price is US$18/kg, whereas
most of the other major honey
exporters are earning only US$2-
6/kg
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Conclusion
• New Zealand honey gets a VERY SIGNIFICANT PREMIUM on the world market.
• With MANUKA HONEY BEING THE KEY DRIVER behind these increases
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Why ?
• Manuka Honey is unique given its scientifically proven anti-bacterial and anti-inflammatory properties that are different to other types of honey.
• It can be used in :– As a Food Item or Food Ingredient– Ingredient in cosmetics– Natural Health Product– Medical grade pharmaceutical
• Naturally grown mānuka is unique to New Zealand and parts of Australia
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The Future
How can this be attained when the stock of wild mānuka that generates our current honey is expected to decline over time ? ……. Plantation Mānuka ?
70 mil
1.2 Bil
0
200
400
600
800
1000
1200
1 2 3 4 5 6 7 8 9 10 11 12 13
Aspirational Growth - Manuka Honey Industry
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In 2011 Manuka Research Partnership Ltd was formed by 6 shareholders comprising :
To prove Manuka plantation as viable investment to encourage an alternative land use option
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High Performance Manuka Plantation PGP Programme
The programme set out
To prove the financial business case for mānuka plantation as a viable alternate land use on marginal land and to establish service and tools to assist landowners
with mānuka plantation establishment
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Returns from 100 Hectare Block
$126,000
$1,793,800
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Cumulative Cash Flow Scenarios Yrs 1 - 25
Natural Low Medium High
Yr 7 Yr 16
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Should I Invest Yet ?
• The research to answer all key questions to a landowner is still ongoing.
• But for those prepared to take a punt …we can help ..
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Should I Invest Yet
Mānuka Farming NZ Ltd.’s strategy is built on 4 pillars :
• Proactive targeting of Landowners that meet size, location, and terrain criteria.
• Formation of strategic alliances enabling provision of full end to end service offering to customer from evaluation on land use to plantation establishment to supply arrangements with apiaries – and providing them with evaluation tools to assist landowners in their decision making.
• Formation of “Community of PGP Mānuka growers” to facilitate knowledge building, relationship building, and foster customer advocacy.
• Provision of Post Mānuka Planting Service aimed at minimising risk for landowner and increasing success rate of mānuka honey commercialisation.
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I Welcome Any Questions …..
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Thank you