Addressing the issue of Sustainability.

The Western Australian (WA) honey industry faces significant challenges in achieving long-term sustainability, impacting producers’ ability to earn a viable income. While consumer purchasing behavior influences domestic sales, the industry’s financial difficulties extend beyond merely encouraging local honey consumption.

Industry Overview

Australia produces approximately 37,000 tonnes of honey annually, with WA contributing between 1,600 to 4,500 tonnes.

Despite a diverse range of honey producers and brands across Australia, the market is dominated by two major supermarket chains—Coles and Woolworths—which together control over 65% of supermarket sales.

This duopoly exerts substantial influence over pricing and distribution, often to the detriment of smaller producers.

Challenges Faced by Producers

The supermarket duopoly’s market dominance enables practices such as squeezing suppliers and predatory pricing, reducing profit margins for local producers.

For instance, Coles’ recent decision to remove 2,500 products, including those from small honey producers, has raised concerns about diminishing competition and its impact on local businesses.

Additionally, cheaper imported honey remains an attractive alternative for cost-conscious consumers, making it increasingly difficult for Australian honey to compete.

Strategies for Improvement

To address these challenges, a collaborative industry approach is essential. Key strategies include:

1. Advocating for Supermarket Accountability: Apply pressure on major retailers to reduce the dominance of imported honey on shelves and prioritize Australian products.
2. Strengthening Retailer-Producer Relationships: Encourage supermarkets to engage with local producers through transparent, equitable partnerships that provide long-term stability.
3. Consumer Education: Inform the public about the unique qualities, benefits, and pricing structures of WA honey to support informed purchasing decisions.
4. Retail Marketing Support: Supermarkets should actively promote Australian honey in-store through strategic advertising and product placement.
5. Industry Training & Business Strategy Development: Support honey producers in navigating negotiations with large distributors to ensure equitable treatment and competitive market positioning.

Conclusion

If the domestic market fails to provide viable opportunities, many honey producers may shift focus to international markets, where they can achieve sustainable pricing through trusted retail and distribution channels. While exports offer growth potential, ensuring a strong domestic market is critical for preserving the local honey industry, maintaining consumer choice, and ensuring the long-term viability of WA’s honey sector.

References

Australian Government Department of Agriculture, Fisheries and Forestry. (n.d.). Honey bees. https://www.agriculture.gov.au/agriculture-land/farm-food-drought/hort-policy/honeybees

Davies Apiaries. (2007). The future of the Australian honeybee industry. https://www.aph.gov.au/Parliamentary_Business/Committees/House_of_Representatives_Committees?url=pir%2Fhoneybee%2Fsubs%2Fsub051.pdf

Ethical Consumer Group. (n.d.). Supermarkets in Australia: Market power and ethical concerns. https://ethical.org.au/issues/supermarkets-in-australia/

Rutherford, T. (2025, March 1). NSW honey packer says Coles is hurting small producers in its push for profits. The Guardian. https://www.theguardian.com/business/2025/mar/01/coles-supermarket-reducing-products-simplifying-range-honey-feature