# Paramount Farms buying out beekeepers?



## babybee (Mar 23, 2012)

So I am hearing that Paramount farms is trying to buy out beekeepers. Is this true? And if so what is the end game? I hear they may be trying to buy 90 thousand hives!


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## Frostt (Mar 7, 2012)

It is true. they are the walmart of farming. They figure cut out the middle man and save a little. I hear that they are looking to take over the canola in Oklahoma. I've her they


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## Rader Sidetrack (Nov 30, 2011)

For more on Paramount, see this Beesource POV article by Joe Traynor (similar to the article in Bee Culture October 2006):

http://www.beesource.com/point-of-view/joe-traynor/taking-on-the-resnicks/


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## JWChesnut (Jul 31, 2013)

Dr. Gordon Wardell is on Paramount staff, and leads their honeybee program. He has been a champion of Blue Orchard Bees, as well, and Paramount has a large Blue Orchard research program. Dr. Wardell, and another Paramount beekeeper, have taken over teaching the Beekeeping class at Cal Poly (San Luis Obispo). 

Wardell has presented in numerous forums on Paramounts non-fungicide policy while bees are in the orchards. Wardell is co-author of numerous papers on IPM methods for bees, including some rigourous testing of SBB and Thymol.

Paramount purchased 2000 hives last year (per Joe Traynor), and with the level of staffing it has further direct ownership is very likely -- just a research program alone would want some thousands more colonies.

Some Paramount hives are "summering" in San Luis Obispo (on leased Cal Poly land), but a really large resident ownership would require real adjustments to provide summer forage. Seems like they would also have to buy half the state of North Dakota too.

Paramount bought a 160 acre Paso Robles winery for $65 million and a similar premium Sonoma property, so the dollar cost of 90,000 hives (and their yearly upkeep) is within its "rounding error" budget.


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## mnbeekeeper (Jun 30, 2010)

i would like to hear peoples views and thoughts on this subject. please comment folks.

i think its not a good idea to have a walmart of beekeeping. maybe im wrong tho....


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## peterloringborst (Jan 19, 2010)

> i would like to hear peoples views and thoughts on this subject. please comment folks.


This is the USA. Walmarts are allowed, so are thrift shops. The almond growers have every right to buy bees, especially with the high rental price. If I had to rent a vacation house for 200,000 for three weeks, I would certainly consider buying one -- if I had the money. On the other hand, the house needs maintenance, so if I really did have the money, renting might be less worry and bother. Depends on the landlord


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## Keith Jarrett (Dec 10, 2006)

mnbeekeeper said:


> i think its not a good idea to have a walmart of beekeeping. maybe im wrong tho....


I think it's a great idea, but maybe I'm wrong, let them figure out on there own how rough ($$$) it really is to bring a 12 frame avg to there own orchard. They will quickly learn that there own payment structure (paramount) blows. It's easy to make video's & run around to the coffee shop meetings and talk about it, it's a hole different ball game doing it.


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## Matt Beekman (Dec 15, 2007)

Keith is right on. This will be a good thing for the industry


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## loggermike (Jul 23, 2000)

This should be interesting. Odds are it will blow up in their face. But guess they can afford the loss....

"It's easy to make video's & run around to the coffee shop meetings and talk about it, it's a hole different ball game doing it. "
Funny.. but true.


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## Roland (Dec 14, 2008)

What is the line....

It is easier to talk the talk, than walk the walk.

Crazy Roland


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## clyderoad (Jun 10, 2012)

I wonder who'll be the head men in charge of all those hives?
That's alot of bee hives.
Maybe some of the guys they're buying out?
Know anyone who's sold the operation lately?


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## Adrian Quiney WI (Sep 14, 2007)

How much are they paying for a hive of bees? Are they only buying in CA, or are they picking up hives around the country?


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## mnbeekeeper (Jun 30, 2010)

Adrian Quiney WI said:


> How much are they paying for a hive of bees? Are they only buying in CA, or are they picking up hives around the country?


you looking to sell out!! ha ha. so most of you think they will make this attempt but it will likely be more than they can chew and they will just go back to leaving the bees to the beekeepers. seems like when the pockets are deep enough anything can work. 

if they wanted to buy my hives for 200 a hive and pay me a salary of 100k a year to just keep doin what im doin but they get my bees for free every spring... I might have to think about that. ha ha and they pay trucking and surup bills.


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## Adrian Quiney WI (Sep 14, 2007)

No, I am just curious about the opportunity to sell bees to another market.


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## biggraham610 (Jun 26, 2013)

peterloringborst said:


> This is the USA. Walmarts are allowed, so are thrift shops. The almond growers have every right to buy bees, especially with the high rental price. If I had to rent a vacation house for 200,000 for three weeks, I would certainly consider buying one -- if I had the money. On the other hand, the house needs maintenance, so if I really did have the money, renting might be less worry and bother. Depends on the landlord


*X2*.. Decicing who can spend what on what to try and build or expand a business for profit sounds something like a current White House Briefing. This is supposed to be a free country. I expect at the rate of decline of freedom in this country, all of us on this site, regardless of Commercial or Hobby will be seeing regulations that do nothing more than create revenue for the feds to spend on what they see fit and financially burden our cause. The Great propasal of a couple weeks ago for the "Honey Bee" is nothing more than a bait and switch that will burden the Beekeeper in the end. G


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## loggermike (Jul 23, 2000)

Of course they have a right to engage in free enterprise (well , maybe not in CA). It will be interesting to see what they do. Their bean counters no doubt see a way to save a nickel . Or maybe they plan to go into the honey business, targeting the Birkenstock crowd with 'Little Cuties' brand honey.The Resnicks are all about marketing. 

It would be ironic if their new Bee Division decides to put bees in the citrus!


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## jean-marc (Jan 13, 2005)

This will be interesting and likely good for the industry. Keith is right on in this situation. It will take a few years for this to work itself out. They may come to realize that it costs much more than anticipated. Whatever their budget is I do not think that they will come under budget often. It could get real interesting if they get some initial success after testing the waters with a few hives. The number 2000 was mentioned. If those hives come with a good experienced beekeeper and his crew it is "easy" to be successful. This could give a false sense of the business. One might get a little to bold and then a decision is made to go all in over the next 5 years and a jump is made to 10 000 hives next year with plans of being at 50 000 over the next 3 years. 

The bee business can be scaled and there are some advantages in large businesses but... you need good employees. Hard to find at low end salaries. 
Just as importantly will be the summer forage issue. One thing for 2000 hives another for 90 000 hives. The worst thing that will happen is that Paramount will come to the realisation that it costs x dollars to have x frames of bees by mid February. They may say why should we invest big dollars to do the job when beekeepers are willing to do it for less? If anything it could give beekeepers greater negotiating powers when it comes time to sign contracts. At the end of the day Paramount will likely end up having greater respect for beekeepers no matter if the go all in or not.

Jean-Marc


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## jbeshearse (Oct 7, 2009)

You guys are thinking like beekeepers, not big business. I would imagine that with 90,000 hives one could convince the political machine to swing some subsidies, etc in the right direction. Also could mean that they have already caught the scent of a change in the wind. All in all I think this is a good sign from all aspects.


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## loggermike (Jul 23, 2000)

What do Adees run? 65000 or so? And they get slapped hard every few years. 90,000? Man oh man.

A bit about them from L A Times:
http://www.latimes.com/business/la-fi-california-almonds-20140112-story.html

"Almonds are a major part of the farming portfolio of Beverly Hills billionaires Stewart and Lynda Resnick, who own brands such as Wonderful Pistachios, Pom Wonderful pomegranate juice and Halos mandarin oranges.

The couple's Paramount Farming Co. has been expanding its almond acreage in Kern and Madera counties to meet growing global demand for the tree nut. It farms 46,000 acres of almond orchards, a space the size of 13 Los Angeles International airports that produces 6% of the state's almonds.

"This is a natural place

to grow almonds," said Joe MacIlvaine, president of Paramount Farming, surveying the company's vast acreage in Lost Hills, a dusty flat 50 miles northwest of Bakersfield. "You need that Mediterranean-type climate or it won't work."

That means warm and dry weather almost year-round, and no frost during the crucial spring. That's when the $4.8-billion industry puts its faith in honeybees to pollinate the pink-and-white flowers blooming on the almond trees.

For Paramount, that requires hiring beekeepers to deploy nearly 3 billion buzzing insects. That has become increasingly difficult and more expensive with the sudden and mysterious death of billions of bees since 2006, a phenomenon known as bee colony collapse disorder.

"Our crop is entirely dependent on them," MacIlvaine said.

Harvesting isn't nearly as precarious, thanks to modern machinery. In the late summer, the orchards rumble with the sound of tree shakers — low-slung vehicles equipped with padded arms that rattle the tree trunks until they rain clouds of almonds and dust.

The almonds are sent to a state-of-the-art processing facility, which shells the nuts, checks them for defects and then hand-sorts them for different grades.

The company is building a packaging and roasting plant in Lost Hills — part of its plan to sell more of its almonds directly to consumers as a packaged snack. About 40% of the company's almonds are sold to major food companies such as Kellogg's for use in products including cereal.

Some of the nuts are also sold to China, where annual consumption of California almonds has more than doubled in the last five years to 208 million pounds, making it the top foreign destination for the California crop."


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## Honey-4-All (Dec 19, 2008)

They can keep growing almonds down there as long as they have the political finesse to keep on snagging water from Northern California. That is if there is any left to snag. Ol MR. R needs to buy himself Diablo canyon from PGE and put in a desalination plant to keep all those trees watered. How much you want to bet he's got his hand twisting gov browns mind in the "tunnels to nowhere" project whereby they can steal more water from up north while drying up all the crops around the Delta? Almonds yes. BS..... NO


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## peterloringborst (Jan 19, 2010)

> At the end of the day Paramount will likely end up having greater respect for beekeepers no matter if the go all in or not.


I think they are quite familiar with bees, beekeeping and beekeepers. I suspect many beekeepers would gladly go on salary and have a steady income, rather than having to follow the elusive honey flows. Presumably these companies have millions of acres in various states and the budget to maintain the colonies. I mean, if they pay $200 per colony already, it seems obvious they could hire a crew, pay expenses and still spend less. Otherwise, why would they attempt it?


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## Keith Jarrett (Dec 10, 2006)

peterloringborst said:


> I suspect many beekeepers would gladly go on salary and have a steady income, QUOTE]
> 
> Peter, I can't think of one good keeper that would do that, that has the management skills that they would require for that size of outfit.


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## loggermike (Jul 23, 2000)

It looks like they just want to lock in a bee supply. They have so much more money at stake in their almond acreage, that even if they operate the bees at a loss, the pollination will be worth it.IF they can pull it off.The problem isn't the few weeks in Feb, its what to do with them the rest of the year.Thats what will be interesting to me.


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## sqkcrk (Dec 10, 2005)

Are they buying hives of bees or are they buying rights to locations too?


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## JRG13 (May 11, 2012)

They'd have to look out of state for that many bees, Cali is a desert come summer time, but then again he's got the money to grease some wheels as we all know too well with the water crap that goes on


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## babybee (Mar 23, 2012)

They are looking for complete bee operations. With the conditions that the owner manages it for a certain number of years I hear. Now who would do that unless they are paying well above market value plus a large salary that would at least match the income they had been making already.


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## sqkcrk (Dec 10, 2005)

Can't really point to what they are, but there are benefits beyond income running your own business. I guess one is not being beholden to anyone unless you want to.


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## Ian (Jan 16, 2003)

Keith Jarrett said:


> It's easy to make video's & run around to the coffee shop meetings and talk about it, it's a hole different ball game doing it.


Give them a few years, only farmers are foolish enough to play this nature game... they are farmers right?


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## sqkcrk (Dec 10, 2005)

Matt Beekman said:


> Keith is right on. This will be a good thing for the industry


Because it will illustrate that paying someone else to do what you can't is smart business?


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## sjvbee (Dec 27, 2006)

They are coming to Michigan 7/25 for commercial beekeepers meeting


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## Haraga (Sep 12, 2011)

Ian. Remember One earth farms? Well they didn't last long. 
A number of Saskatchewan and Alberta First Nations plan to lease out their farmland to a company that wants to form the largest group of corporate farms in the country.

"We're pretty excited to be part of it," said Clarence Bellegarde, chief of the Little Black Bear First Nation in southern Saskatchewan. "It's a big benefit to us."

The deal, announced Thursday morning in Saskatoon, could eventually see about 400,000 hectares of farmland across Western Canada leased by One Earth Farms Corp., which will manage the project for Toronto-based Sprott Resource Corp.

First Nations, bankers, agrologists and grain industry experts are involved in the venture, Bellegarde said

The land is owned by the First Nations, but in the past they have simply leased the land to nearby farmers and have not worked the soil themselves.

Little Black Bear will be adding about 8,900 hectares to the corporation's land.

The company plans to have about 20,000 hectares in production in its first year.

The deal also involves the Muskowekwan, Starblanket and Thunderchild First Nations in Saskatchewan, and several others in Alberta, Bellegarde said.

Thunderchild First Nation, which was the first to sign on, plans to commit 20,000 hectares for leasing.

Chief Dale Awasis sees not only immediate jobs but a chance for better stewardship of the lands.

"One Earth Farms has committed to farming our land in a manner which will help our lands to rejuvenate," Awasis said. "First Nations will have the confidence that these lands will be able to provide … for future generations of our people, and, from the perspective of One Earth Farms, healthier lands provide better crops."

As part of the deal, aboriginal farmers will be hired and trained, and the bands will get shares in the new corporation, he said.

Sprott is investing $27.5 million in One Earth Farms "to establish operations, fund working capital and support its initial growth," Sprott said in a news release.

Another part of the deal will see Sprott donating $1 million for post-secondary scholarships to encourage aboriginal people to train in the agricultural industry, Bellegarde said.


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## peterloringborst (Jan 19, 2010)

> Peter, I can't think of one good keeper that would do that, that has the management skills that they would require for that size of outfit.


Interesting statement. I mean, because you can't think of one -- there aren't any? Or is it that they wouldn't be "good beekeepers" in your eyes if they did that?

I have worked for several commercial operations that employed over a dozen people at times. Most did not own bees, but were good beekeepers. Many of the very large operations have dozens of employees in many states. Why wouldn't one of these go to work for a corporation? Many bee operations are incorporated, anyway. 

I think you are thinking a bit narrowly. I have a good friend who is one of the best beekeepers I ever knew, and he hired on as a consultant to an almond grower. He got paid to inspect other guys' bees for colony strength. They wanted a real beekeeper on their side if there were disputes over the quality of the hives.


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## clyderoad (Jun 10, 2012)

Lots of former academics and retired government scientists take these big jobs too. Money talks.


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## Keith Jarrett (Dec 10, 2006)

peterloringborst said:


> Interesting statement. I mean, because you can't think of one -- there aren't any? Or is it that they wouldn't be "good beekeepers" in your eyes if they did that?
> .


I can't see much of a upside to them doing so.


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## Honey-4-All (Dec 19, 2008)

Anyone willing to sign a contract, as previously mentioned, and thereby potentially obligating themselves to any kind of enslavement with a party who can drop 10 million on a gaggle of lawyers without even looking whats still left in their wallet (just so they can outwit the beekeepers lawyer) has got to be a sucker for punishment.


:s 


Most of us aren't in this business for that reason and trying to exit the beekeeping lifestyle under those conditions would be a good reason to check oneself into an insane asylum prior to jumping overboard into any such shark infested tank.


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## jim lyon (Feb 19, 2006)

The short list of people capable of successfully managing 10's of thousands of hives are already doing so and doing quite well at it. Not sure how many of them would consider taking orders from Paramount as being a career advancement. 
Academics? Retired government scientists? Good one Clyde. :lpf:


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## Ian (Jan 16, 2003)

Haraga said:


> Ian. Remember One earth farms? Well they didn't last long.


 they aint farmers either


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## Trevor Mansell (Jan 16, 2005)

jim lyon said:


> The short list of people capable of successfully managing 10's of thousands of hives are already doing so and doing quite well at it. Not sure how many of them would consider taking orders from Paramount as being a career advancement.
> Academics? Retired government scientists? Good one Clyde. :lpf:


Very true!


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## peterloringborst (Jan 19, 2010)

> Not sure how many of them would consider taking orders from Paramount as being a career advancement.


I would expect them to hire good people to manage the bees, pay them to do what they know how to do, give them the resources to do it right. Otherwise, why would they bother? They can already rent bees, there has to be an advantage to buying them or they wouldn't have considered it.

Back in the early 1900s, extension agents recommended to fruit growers that they buy bees for their orchards. Many did, but they found that the bees required too much care when they were already occupied with other things. So, the renting of bees became the norm. Almond growers have had to face rising prices for bees, and shortages of hives when they need them.

It is quite clear that California could support the one million colonies needed, under normal circumstances. The colonies have to be managed well during the fall and winter, to be ready in February. Coastal California has the ideal climate for this, but only when the winter rains are sufficient. The key to the whole system running smoothly is efficiency. It may be that cobbling bees together from all over is simply not the best way to go about it.

Bottom line, however, is this is the almond growers' problem. Not the nation's, not yours and mine. Frankly, I think they should be allowed to import bees from Australia, like they did for a couple of years. I am in the minority on this, of course.


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## jim lyon (Feb 19, 2006)

Me? A negative bias against big business? Sorry you've got the wrong guy. Paramount can do what they wish, doesn't bother me in the least. Of the list of things that concern me, it doesn't even crack the top 50. If there is one thing I have learned over my 40+ years of commercial bee hive management is that one of the biggest challenges that you will face is keeping a qualified work force. The best always want to own and manage their own and quit taking orders from someone else. If you send an inexperienced person out in a truck with a map and instructions be prepared to see some pretty unusual things the next time around. Cell phones have improved this a lot, but there is nothing quite like an experienced person actually being there. 
The numbers we are hearing that Paramount is proposing to own are going to take a lot of qualified management. I, for one, wouldn't consider changing my situation. 
Am I wrong in stating that Paramount would first be looking at candidates that have a track record of successful management of a large number of hives? If so, what is it that lures someone who is already operating a successful operation into signing on.......and having to attend board meetings at Paramount?


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## Keith Jarrett (Dec 10, 2006)

Well Jimmy, I see you had the same luck I did. lol....

Peter, most of these keepers don't need Paramount, they are doing far better than Paramount would be willing to pay, the keepers that would take that job are the ones you wouldn't want.


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## peterloringborst (Jan 19, 2010)

> Me? A negative bias against big business? Sorry you've got the wrong guy. Paramount can do what they wish, doesn't bother me in the least. Of the list of things that concern me, it doesn't even crack the top 50. If there is one thing I have learned over my 40+ years of commercial bee hive management


Please accept my apology. I based my statement on insufficient information and I regret making it.


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## Rader Sidetrack (Nov 30, 2011)

I'm not a commercial beekeeper.
And having just witnessed the reactions to PLB's comment - perhaps I should keep my mouth shut. 

BUT  ... I can see at least once scenario where it _could _make sense for an experienced, successful beekeeper to sell to an outfit like Paramount. Such a beekeeper looking ahead to retirement - perhaps without any children active in the business - is faced with what to do with his operation when he chooses to retire. 

There is _relatively _little property assets in a bee business other than the hives - value is pretty much in the hives and resulting cash flow. Getting maximum value from breaking up a beekeeping business is likely to be difficult.

Selling the business as an ongoing operation - at a premium price - along with a contract to manage the business for a fixed period of time can be a way to maximize the recovery of cash for the beekeeper's retirement.

There are a variety of ways that both sides can benefit from such an arrangement, including contractually specified _performance _payments in future years.


Fire away! 

.


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## peterloringborst (Jan 19, 2010)

Keith Jarrett said:


> Peter, most of these keepers don't need Paramount, they are doing far better than Paramount would be willing to pay, the keepers that would take that job are the ones you wouldn't want.


That is probably true, yet I can understand why some beekeepers might trade the vagaries of the market for a steady job. I did that 15 years ago, sold my bees and went to work for a University. There are pros and cons.

On the other hand, what about the guys that are lining up for ELAP payments? Maybe they should consider working for Paramount instead of siphoning off taxpayer's money to buy more bees to lose.


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## dback (Jan 8, 2012)

jim lyon said:


> If there is one thing I have learned over my 40+ years of commercial bee hive management is that one of the biggest challenges that you will face is keeping a qualified work force.


It is nearly impossible to 'outpay' a "really qualified" mans desire to do it on his own. Any commercial beeman will echo Jim's statement.


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## Honey-4-All (Dec 19, 2008)

[QUOTEI...It is quite clear that California could support the one million colonies needed, under normal circumstances...... but only when the winter rains are sufficient.[/QUOTE]

My response is posted between these quotes " " as I am left speechless by the insurmountable absurdity of the above statement.

Are you serious or just plain ignorant of what the word "Normal" is in regards to rainfall in the Golden State and therefore the viability of doing what you say is "possible"? If the university definition of "normal" is equal to "average" then you are way off base by a factor of 50% minimally.


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## Keith Jarrett (Dec 10, 2006)

Rader Sidetrack said:


> I'm not a commercial beekeeper.
> There is _relatively _little property assets in a bee business other than the hives - value is pretty much in the hives and resulting cash flow.
> Fire away!


RS nice post. But I have a few things to add, from a commercial keepers stand point. First, 75% of our assets are in property, we buy on the out skirts of towns use them as a bee locations, then when to the likes of WalMart, schools & delvelopers comes calling they need to get those pesky bees out of the way, all of these scenerio have happen.   

I have a few good beekeeping friends that have been putting in almonds for the past few years now, so there are many keepers doing just this. or likes of this.

Most of these commercial guys are netting $100+ per hive and most of us run between 3-6000 hives. 

Hope this sheds some light.

Again, nice post RS with good humor.


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## Rader Sidetrack (Nov 30, 2011)

It sounds like KJ may be a successful real estate speculator as well as a successful beekeeper. 

I submit that those two activities can easily separated when one wishes. As Keith has noted, he sold the 'bee yard' real estate, but is still in the beekeeping business.

Selling strictly beekeeping assets is a different proposition entirely. Developers and Walmart have no use for _honey houses_ beyond scrap value.


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## bugman2 (Apr 9, 2014)

Like to see what there spraying will be like with there own bees.


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## peterloringborst (Jan 19, 2010)

> Are you serious or just plain ignorant of what the word "Normal" is in regards to rainfall in the Golden State and therefore the viability of doing what you say is "possible"?


I lived in California for 30 years, did beekeeping there for 15. California was one of the best states for bees prior to the drought. Before the astronomical increase in almond acreage, pollination was done by California bees.

Of course rainfall has always varied from region to region and from year to year. From an average of 11 inches annually in So Cal to 300 inches around Crescent City. Formerly it was much wetter, and it could return to that state. 

Coastal California has ranked as one of the best beekeeping regions in the world. This has changed mainly due to overpopulation, and water shortfalls. Given a much smaller population or much wetter winters, it might be different. Neither is under our control, it seems.


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## peterloringborst (Jan 19, 2010)

> I'm not a commercial beekeeper. And having just witnessed the reactions to PLB's comment - perhaps I should keep my mouth shut.


If I have learned nothing else from posting online, I have learned this: the shorter the post, the more likely it is to be an oversimplification and the more likely to be misinterpreted. On the other hand, nobody is right all of the time. The only way to be right even occasionally is to pay attention to what you see _and_ what others see, and what they say. My main goal getting into the fray is to learn. Sometimes I learn more from making a disagreeable statement than from saying "you guys are right on." As my old friend Allen Dick used to say (probably still does): 



> If everybody is agreeing, nobody is thinking.


(to which I would only add, the opposite is not true. If everybody is disagreeing, that's no proof that thinking is taking place)


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## dback (Jan 8, 2012)

It could work …. right people, correct plan. I know for a fact there are 'major players' that will sell and accept the 'management' positions under certain conditions. I question the potential savings vs exposure being a sound management decision for them but what do I know…..a little fart like me. The timing baffles me a bit……questions with water issues, availability of hives, contracts already sent out for next year, etc. It will be interesting.


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## Barry Digman (May 21, 2003)

It's not out of the question that billionaires are making business decisions based on information that others (us) don't have.


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## Ian (Jan 16, 2003)

"The people who usually succeed are the ones who are told they cant..." how is that for quoting myself lol, and ya, I was told I couldn't make this honey business work by more than a handfull of people all over the spectrum 

the question is, and the question that keeps spinning around is, will a board room table give enough to allow the venture to succeed ?


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## beeware10 (Jul 25, 2010)

If they do have thier own bees I'm sure it will be a good tax write off for them. lol


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## jbeshearse (Oct 7, 2009)

Barry Digman said:


> It's not out of the question that billionaires are making business decisions based on information that others (us) don't have.


Yep, for all we know they may be buying up all the hives after hearing that Monsanto was going to partner up with the big beekeepers in the implementation of their new GMO Bees.....

:ws:

:banana:

I guess for accuracy sake, I better disclaim that the above is pure fiction....... you know how rumors get started..... opcorn:


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## JWChesnut (Jul 31, 2013)

I drove the the Wasco >> Paso road today (Hwy 46), this includes multiple miles of Paramount owned Pistachio and and Almond orchards centered on their processor at Lost Hills. There is some signficant turn-over going on in Almonds in that stretch -- over mature trees going out, and new (water thrifty) orchards going in. As well as the last of the Walnuts getting chipped. The new Almond acreage I saw was on the eastside near 99 -- and is not Paramount land. 

Paramount may have decided to control the cost of pollination by under-running their $155 contracts with in-house labor. I would guess that decision was several years in the development and testing, and if it is going public, it is because it anticipates the fall, post-harvest irrigation won't happen on irrigation delivery dependent older orchards, and thus the 2015 pollination demand might be weak (e.g. >10% of the trees might be pulled from production). 

This is a demand squeeze - 2014 was actually weak, and Paramount anticipates 2015 to be worse. They likely feel they can capture enough of the supply to provide them pricing power on their orchards. Paramount is currently advertising for a deputy Strategy Manager for their Lost Hills operation with responsibilities for M & A. They likely feel their is going to be some consolidation, and the dry conditions are going to give them some cheap take-over deals.

The pollination contracts are lump cash out --- and the accounts may like amortizing that same cost over 12 months of salary. Even if the dollar cost was the same, having 12 months to spread the cost out is a great deal for a commodity marketer -- you don't have to have a cash reserve, but can pay out of sales-- so the cost of funds is negligible. If you are marginal, and anticipate the 2015 price to trend down based on grubbed out orchards, then a guarantee for the hard times might be attractive.

Paramount might be anticipating a wave of Ukrainian refugees -- lots of great beekeepers, and not enough capital to start their own operations.

Because Paramount "owns" the southern San Joaquin water bank (a paper storage fiction), they have access to a massive allotment of pumpable water. The are water king pins at this point, and can decide which trees live and which ones die.


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## Ian (Jan 16, 2003)

jbeshearse said:


> I guess for accuracy sake, I better disclaim that the above is pure fiction....... you know how rumors get started..... opcorn:


you would be surprised how often I get asked about GM bees... people think Monsanto has GM bees...


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## HarryVanderpool (Apr 11, 2005)

JWChesnut said:


> Paramount might be anticipating a wave of Ukrainian refugees -- lots of great beekeepers,........


Are you sure about that?


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## Honey-4-All (Dec 19, 2008)

Harry, As a mod you ought to know that Barry is not to hyped when the Red Flag topic comes up. Every time it shows the thread gets axed sooner or later. One could be like a politician on the subject and spin it with a little sky blue and white tinges on the corners of the red flag but the bottom line is the "same thing" as you have noted. 

Between multinationals attempting to control pollination prices and another wave of mindless hordes who fail to respect our culture getting a free pass to cross our borders I would say we are about to have the most productive bee tree in the history of the US cut from beneath our feet as we speak.

If both Stewart( as in Resnick) and Barry (as in the POTUS) get their way and are successful I'm going to venture that our current dealings with varroa and CCD will shortly become listed as "the good ol days. "!!!!!!! HELP!!!!


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## clyderoad (Jun 10, 2012)

you make it sound like nothing but doom and gloom.


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## Nick Noyes (Apr 28, 2005)

This is an interesting topic.
I don't see the doom and gloom though? Paramount Farms has 46,000 acres of almonds according to a past post, this is less than 10% of the almond acreage in California. Could they pollinate these acres with their own in house bees? I think it could happen with the right management and forage areas before and after almonds. It would just be another business inside a business.
Will it control almond pollination in California? I don't think Paramount wants to pollinate the other 800,000 acres of almonds in California. Maybe I am wrong on this.


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## HarryVanderpool (Apr 11, 2005)

Good point Nick.
Actually, if you divide the total almond acreage in 2013 (870,000) by Paramount's 46,000 it is a mere 5.2%.


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## jim lyon (Feb 19, 2006)

It's the American way. I find myself stuck somewhere between interested and indifferent. Let's face it, each year enough ordinary hives get weaseled in at extraordinary prices that Paramounts decision is entirely understandable. But of this I am confident.........strong hives will always bring top dollar regardless of what Paramount does. In all things beekeeping it's best to worry more about your own business than to fret about what others may be doing.


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## Keith Jarrett (Dec 10, 2006)

jim lyon said:


> In all things beekeeping it's best to worry more about your own business than to fret about what others may be doing.


What........ Who thought of that.

Oh.... that's right, Jimmy did.


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## peterloringborst (Jan 19, 2010)

> Here is a gem from the Australasian Beekeeper for September 15, page 45 by the editor: "The advent of the motor truck is responsible for the rapid growth of migratory beekeeping, which is here to stay. The more we consider it though, the more we are convinced that there are limits (according to the capacity of the individual) to the extent that migratory beekeeping can be carried on profitably. Up to that limit the man is master of his business, over that limit the worry and overhead expense become so great that the master changes his status and becomes a slave."


SOURCE:
American Bee Journal, February 1944


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## Nick Noyes (Apr 28, 2005)

jim lyon said:


> But of this I am confident.........strong hives will always bring top dollar regardless of what Paramount does. In all things beekeeping it's best to worry more about your own business than to fret about what others may be doing.


I agree.


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## Roland (Dec 14, 2008)

In another parlance:

"Drive your own Truck" is used by the dump truck drivers, and it means about the same thing. Don't worry about how the other guy is driving, just drive yours the best you can.

Crazy Roland


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## HarryVanderpool (Apr 11, 2005)

My favorite:

"We are all working very hard, and all trying to make a living at the same time"

Well that was cool. I quoted myself!


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## Trevor Mansell (Jan 16, 2005)

If they are just buying bee operations all they are doing is taking over ownership of bees ,which is not really adding bees to the whole pollination equation . Let them see what its like ,if you run good bees you have nothing to worry about . If you are on top of things you don't need to import Australian packages. Id be more worried about the water situation.


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## Jacobee (Dec 27, 2011)

sjvbee did you sell out to paramount at that meeting


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## Jacobee (Dec 27, 2011)

i wanted to get back to this post when i had more time. 

i am sure all who read this will not care at all but i see this as a big problem. the reason i have become a commercial beekeeper is that the trade i was in has gone down the drain. commercial/industrial refrigeration service. a very technical field that takes the average man around 10 years doing it before you know enough to go out and fix 90 to 95% of the problems, and be able to do it for 30 hours or more straight. 

during the electricity de regulation , a very big electric utility co. was trying to hold onto the supermarkets as customers because of there hi consumption and soo many of them out here. so they started a refrigeration service department and purchased 2 major contractors in the area. both had highly qualified techs and some not so good ones. many of my coworkers said it wouldnt work, i agreed. well we were half right. the newly formed service department was giving the service at a highly discounted rate.
horror stories of low temp systems being down for days at a time, huge product losses that the utility co had to pay or there insurance paid. these big companies are almost self insured to half million dollars. store managers were begging their corporate offices to please call the other companies such as the one i worked at. corporate said no they are cheaper. what they were trying to do was make all contractors bring the price down , which some did. it worked. the pay has gone down and the companies will only keep the lower paid guys busy in the wintertime. it has become a part time job for many.

i know this is soo **** long but felt i needed to say this as when a big corp has all the money in the world they can force change, and you guys are the higher paid workers. hope you all have a back up plan, i do. by the way after a few years the utility co sold off that branch because it never made money, but they kept there customers. that company has change owners a few times, cant make a profit but the supermarket chains won. they got there low budget contracts out of it, and broke the refrigeration industry, i hope their stock went up that $2 for it. i just love corporate greed. thanks to anyone who suffered thru this long post.


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## Jacobee (Dec 27, 2011)

just wanted to add that i realize they are less then 10% of growers but it can start a new trend and force prices lower.


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## LSPender (Nov 16, 2004)

Does anyone know a operation or beekeeper that sold to Paramount?


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## rhaldridge (Dec 17, 2012)

jim lyon said:


> In all things beekeeping it's best to worry more about your own business than to fret about what others may be doing.


 In all things,_ not just beekeeping_, it's best to worry more about your own business than to fret about what others may be doing.

The world would be a better place if more people followed Jim's advice.


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## jean-marc (Jan 13, 2005)

Good advice rhaldridge. After all it is the only thing you can control and change.

Jean-Marc


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## Jacobee (Dec 27, 2011)

WOW!!! nuf said i have been schooled by someone with 7 hives
he must have 1 more than i do which is why i am posting in the commercial section


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## Trevor Mansell (Jan 16, 2005)

LSPender said:


> Does anyone know a operation or beekeeper that sold to Paramount?


I heard a operation in Michigan sold out to Paramount, for a ridiculous amount of $$. But you know how rumors are. A large beekeeper in Florida (20,000 hives) was and might still be in talks with them .They are going to be at the Florida meeting next month, it will be interesting to hear what they have to say.


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## Trevor Mansell (Jan 16, 2005)

LSPender said:


> Does anyone know a operation or beekeeper that sold to Paramount?


I heard a operation in Michigan sold out to Paramount, for a ridiculous amount of $$. But you know how rumors are. A large beekeeper in Florida (20,000 hives) was and might still be in talks with them .They are going to be at the Florida meeting next month, it will be interesting to hear what they have to say.


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## Keith Jarrett (Dec 10, 2006)

Maybe it was someone in MN that sold out, Trevor.


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## Trevor Mansell (Jan 16, 2005)

I just heard it second hand from someone , I really don't know the details.


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## davidsbees (Feb 22, 2010)

Keep your friend close and your enemy's closer. I like to keep my ear the rail so I won't get hit by the train. I live in Paramounts back yard they are buying up all the small ranches in the area. Farmer that said they would never sell took the money and paramount want to be self suffient in bees and they need places to keep them.


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## babybee (Mar 23, 2012)

I talked to the guys at Paramount about a month ago after hearing some crazy rumors, and the guy in charge of buying told me that they hadn't bought any bees this year. None since they originally bought out a guy 3 years ago that owned about 3500 hives. He did say they want 90000 hives over the next 10 years and want to buy an established queen producer, ect. So maybe we will see wonderful brand honey on the shelves some day. I had heard they bought out a large guy for around 1200 per hive, but alas it wasn't the case. Cuz if it had been I wouldn't be able to get out of my honey house fast enough.


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## Keith Jarrett (Dec 10, 2006)

Nothing to fear but fear itself, do what you do well, and the rest will fall into place.


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## swarm_trapper (Jun 19, 2003)

Does any one know what they are paying for the hives that they want to buy? Just wondering.
Nick


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## babybee (Mar 23, 2012)

Sounds like market value, and they want you to come on as a manager with good benefits! Lol!!


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