Listed natural health and beauty products company Comvita Ltd says it still relies heavily on contracted honey suppliers, despite purchasing a fourth apiary business.
It's latest acquisition is Wanganui-based Kiwi Honey which has 3500 beehives throughout that region.
Comvita chief executive Brett Hewlett says the Kiwi Honey purchase will provide security of supply as demand rises, but his firm doesn't envisage ever owning all its own beehives.
"We still value very much the important relationship that we have with our contractor beekeepers," he says.
Comvita expects to get about a third of its honey from its own apiaries in the coming season.
Kiwi Honey has been supplying it with high quality manuka honey for more than 20 years.
Comvita says the security of supply is strategically important as the Whanganui region is known for its production of honey marketed as containing a "unique manuka factor" (UMF) potentially useful against some pathogenic bacteria.
Comvita exports its products to more than 18 countries, and Mr Hewlett says though sales in Britain remain flat due to economic uncertainty, Asian markets are performing well.
"We sell our honey predominently as a medicine, and a whole lot of value-add formulated products - cough and cold remedies up to very advanced woundcare products sold through hospitals," he says.
"Our growth is also around creating higher value for the same volume (of production)".
The company's share price fell 1.96% on Tuesday - a drop of 8c to $4.01.
