THE TRANSFORMATION OF COMPETITIVE POLICY AMONG LEADERS IN THE HONEY EXPORT MARKET: FROM COST MANAGEMENT TO QUALITY DIFFERENTIATION

Abstract

The purpose of this article is to conduct an evolutionary study of the mechanisms underlying the transformation of China’s, Argentina’s, and India’s competitive policies in international honey markets. The analysis demonstrates that major honey suppliers are implementing a low-price policy in competitive international markets. The main drawbacks of implementing a low-price policy are summarized; these include efforts to reduce costs by adulterating honey, engaging in “honey laundering” schemes through transit hubs, and acquiring honey processing enterprises in third countries. The potential economic, structural, social, and market consequences of importing adulterated honey are summarized. It is demonstrated that adulteration allows for a reduction in the supply price of honey due to both lower prices for modified sugar syrups and economies of scale. The implementation of a competitive price-leadership strategy faces increasingly high barriers in the U.S. and EU markets due to anti-dumping procedures in the U.S. and stricter requirements for quality, safety, traceability, and labeling in the EU. Objective reasons for the implementation of a low-price competitive strategy have been identified, namely the low cost of labor, technological equipment, and honey production technology. The study examines the role of the state and municipalities in supporting the development of beekeeping as a means of increasing crop yields through the bees’ role in pollination, as well as boosting employment and income levels among the rural population. This study examined the evolution of national honey quality standards in China, Argentina, and India and concluded that recent changes to these standards are aimed at boosting foreign trade in honey through quality differentiation (China, Argentina) and through verification of authenticity (India). In addition, there has been a strengthening of national controls in these countries over the quality and safety of exported honey, which is driving a shift in the competitive strategies of honey suppliers toward verifiable quality. All of this may influence the redistribution of market shares in the structure of international honey trade.