The latest round of U.S. tariffs will “essentially stop all honey heading into the U.S. from Canada,” according to the president of the Saskatchewan Beekeepers Development Commission.
Simon Lalonde says the 50 per cent tariff on $28 billion worth of goods, including honey, that went into affect on Friday “is just too big of a price.”
“The Canadian beekeepers can’t absorb that on their bottom line and most U.S. [honey packers] will probably just source their honey from other countries that they import into the U.S.,” Lalonde said.
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Most of Canada’s honey is shipped and sold domestically. The two other major markets are the United States or Japan.
Western Canada — and disproportionately the Prairie provinces — supplies the bulk of honey to the United States, Lalonde said.
Between 15 and 20 per cent of honey produced in Canada — approximately 12 million pounds — is exported to the U.S., Lalonde said, making the loss of that market a big problem for producers.
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Beekeepers are right in the middle of honey season, Lalonde said. It’s their busiest time, with many producers focused on harvesting.
Lalonde said the industry is now waiting to see what happens on Sept. 8, when Prime Minister Mark Carney has said Canada will place retaliatory tariffs on U.S. goods.
“Until things start to calm down, and [we] get a good idea if this is going to be a long term issue or if it’s going to be solved in the next few months, [that] might make a really big difference to beekeepers,” Lalonde said.
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The Saskatchewan Chamber of Commerce has said it is “deeply concerned” about the impact of the latest round of tariffs.
It said the consequences will be devastating for some sectors of the Saskatchewan economy.
The chamber came out in support of the federal and provincial governments’ decision to stand firm in the face of “uneconomic and unfair U.S. demands.” It also called for support from both levels of government to support business across Saskatchewan.
“As an export-driven province, our prosperity depends on access to markets around the world,” the chamber’s statement said.
One Saskatchewan company has seen a benefit from the retaliatory decision by other Canadian provinces to remove American-produced liquor from their shelves. Although Saskatchewan briefly chose that path, it ultimately decided to leave the choice in the hands of consumers.
As CBC reported earlier this month, the sale of American-produced alcohol dropped by 40 per cent during the last fiscal year, despite the province putting American liquor back on the Saskatchewan shelves.
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Black Fox Farm and Distillery owner Barb Stefanyshyn-Cote said the tariffs have opened consumers’ eyes and shifted their priorities.
“People are more interested in searching for Canadian products, or products that we’re proud to showcase actually right here in Saskatchewan. And so I would say it’s been a benefit to us to have less competition out there,” Stefanyshyn-Cotee said.
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Lalonde said there may not be a change in the domestic price of honey this season. The bigger question is whether Canadian producers will find new markets to export their honey to.
“I don’t think there’s going to be any knee jerk management changes to businesses,” Lalonde said.
He said that if the average Canadian family were to eat half a container of honey more in a season, it would help counter the loss of the U.S. market.
