An increase in honey supplies along with health-conscious consumers buying more product has helped boost Capilano Honey's annual profit.
Demand for the product in Australia has been boosted by nearly four per cent over the last financial year, according to producer Capilano, which released its results this week.
It lifted its net profit by nine per cent to $10.3 million for 2016/17 by increasing its supplier base and focusing on producing more premium products such as Manuka honey and floral varieties from Western Australia.
Managing director Ben McKee said increased demand, equalling 3.9 per cent growth in volume terms in the grocery channel over the last financial year, reflected the greater consumer interest in natural, healthy foods.
In a statement, he said recent rainfall in production areas had boosted winter honey supplies, and the company was optimistic about increased production in the coming season.
At the close of the 2017 financial year, Capilano's honey stocks had lifted to 5953 tonnes, from 4960 tonnes a year earlier.
McKee said international bulk honey markets had been relatively stable after prices softened last year, but Capilano had stopped supplying some industrial sectors due to insufficient margins.
With Australian honey now an expensive commodity compared to honey from other countries, Capilano is focusing on developing widespread distribution of premium retail products.
