Beekeepers fear that a system where access to beekeeping sites is auctioned off online will increase overheads and lead to further declines in the industry

Beekeepers in New South Wales fear for the industry’s viability after access to some apiary sites was put up for auction for the first time and fetched what one expert called “unsustainable” prices.

An online auction of apiary sites in May by the Forestry Corporation of NSW saw prices top $17,500 (or $3,500 a year for five years) with an average of $1,311 a year. Beekeepers fear the auction prices could lead to dramatically increased overheards.

Casey Cooper, the president of the NSW Apiarists’ Association, called the prices “unsustainable” and said it could lead to further declines in the beekeeper industry, which has already been hit hard by drought that led to a decade-long honey shortage.

Neil Bingley, a second-generation beekeeper and executive councillor of the association, said in a good year the potential value of honey for one of the auctioned sites would reach only $15,000 gross.

“I know that country well because my family has kept bees in the area for generations,” Bingley said. “It’s spotted gum country which means it is only going to flower once every four to 10 years.”

The 24 auctioned sites were located near Batemans Bay on the south coast of NSW. There are 4,000 apiary sites across the state which normally cost $90 a year for an annual licence.

However, a spokeswoman for the forestry corporation said it was not fully satisfied that the ballot and first-come first-served systems were “the most transparent or equitable way” to allocate permits on state forests.

“An auction provides all interested beekeepers with the same information about vacant sites at the same time, and gives all parties an equal opportunity to bid for the vacant sites at a rate they consider to be fair,” she said.

The spokeswoman said there was a large range in the prices paid for different sites, which indicated fair market value varied significantly from location to location.

Beekeepers move their hives throughout the year to wherever flowers are budding. Cooper said the average beekeeper in NSW might operate across many different sites, spending 6-12 weeks a year at each site.

NSW is home to more than 3,000 apiarists, nearly one third of the country’s total. Most commercial apiarists operate 400-800 hives but some have more than 3,000 hives, according to a report by the Rural Industries Research and Development Corporation.

Cooper said auction winners would struggle to recoup their money if the area was hit by unfavourable weather conditions. “Fire could change the whole scope of that site. They’ll be worth nothing and those blokes will have wasted their money.”

In Queensland, beekeepers pay an annual fee of $120.40 to licence sites. Cooper agreed the industry could withstand a price hike of 50-100%, but said the auction model would lead to such dramatic price increases it would mean business closures and discourage young people from taking up the work.

Any change to the apiary industry could also lead to knock-on effects on other agricultural products. About 65% of agricultural production in Australia depends on pollination by European honeybees, including almonds, apples, stone fruit, onions, cherries, beans and pumpkins.

Such intensive pollination services made it vital beekeepers had access to the sites offered by the forestry corporation, which are rich in native floral resources and are pesticide-free, to maintain hive condition.

“We need to go into these areas to build our bee populations and get them strong enough to go and do pollination,” Cooper said.

The NSW minister for primary industries, Niall Blair, acknowledged the importance of crown land access to apiarists, and called the trial “one way of examining practices to see if there is better way to ensure the allocation of these sites”.

The forestry corporation said it was reviewing the implications of the trial results and would discuss them with industry representatives before determining whether auctions will be used in any other state forest locations.