Canada’s Honey Sector Braces for Impact From Looming U.S. Tariffs
In the middle of a busy honey production season, prairie beekeepers are hoping to avoid the sting of a trade dispute.
Canadian honey, which was once protected under the Canada-United States-Mexico Agreement or CUSMA, is one of the products threatened by U.S. President Donald Trump’s proposed 50 per cent tariffs.
“We were very surprised,” said beekeeper Simon Lalonde, who is also president of Saskatchewan Beekeepers Development Commission.
“We do not really see a whole lot of reasoning for it.”
Out of all the honey that the U.S. imports, only about two per cent comes from Canada, Lalonde said.
Still, the United States is one of the Canadian honey industry’s biggest buyers. American sales make up about 60 per cent of Canada’s honey exports and were valued at nearly $30 million last year.
A 50 per cent tariff would effectively close off the U.S. market, according to Canadian Honey Council Executive Director Rod Scarlett.
“Without sales, I am sure operations will fail,” he told CTV News.
“We just do not have alternative markets to sell Canadian honey.”
The vast majority of Canadian honey is either sold domestically or to markets in the U.S. and Japan.
Scarlett said the industry is working to expand into other international markets, but it is difficult to do.
The looming tariffs come at an already difficult time for Canada’s honey industry. Beekeepers are contending with parasites and years of low market prices that are making it tough to break even.
“Right now, beekeepers are essentially keeping their beehives healthy,” Lalonde told CTV News.
“All we are trying to do is keep them going until next season and hopefully the honey price goes up.”
With tariffs on the horizon, Lalonde says prices are likely to go the other direction.
“If we want to sell our honey and the U.S. is not there, we are probably selling it at a lower price, either domestically or to our other partners in Japan,” Lalonde said.
If these tariffs come into effect and last more than a few months, Scarlett said the industry will face “some pretty devastating impacts.”
Other industries could also feel the ripple effects, he added, if bee operations are forced to shut down.
“Sales of honey might be in the $200 to $300 million range each year, but the contribution to agriculture as a result of pollination is likely $7 to $8 billion,” he said.
For now, beekeepers like Lalonde are focusing their efforts on extracting honey. He plans to begin the process early next week.
Once that is done in September, he will shift his focus to any potential tariff implications.
“It is like every other farmer. (You) get the crop in the bin and then worry about how you are going to market it,” he said.
This article was first reported by The CTV News
