China honey demand key to Capilano growth

Soaring Chinese demand and growing local health markets represent the sweetest opportunity for honey producer Capilano, a new analyst report says.

Rising demand for honey in China and a growing local health market are the best opportunities for Australia's biggest honey producer, Capilano, to grow, a new analyst report says.

Last year Capilano secured 75 per cent of Australian honey production, but it is in China, where a "thriving demand" for imported honey products continues to grow that the biggest opportunities exist, according to Patersons research analyst Jon Scholtz.

Mr Scholtz said Capilano shares are currently fairly priced at $17.72, but a growing potential for sales traction into richer export markets - especially China - will be critical to improving revenue and share price.