Why Beekeepers Are Switching From Honey Production to Pollination Services

In 2016, pollination services overtook honey as the primary revenue source for American beekeepers. The shift happened quietly, documented in USDA statistics rather than announced with press releases. One number crossed above another. Revenue from renting hives to pollinate crops exceeded revenue from selling honey.

The crossover represented decades of accumulated changes. But the underlying driver was simple: California needed bees for almonds.

The Numbers Tell One Story

A typical commercial beekeeping operation managing 1,000 colonies in California generates approximately 60% of its revenue from almond pollination alone. Honey represents roughly 25% of total income. The remaining 15% comes from pollinating other crops, plus occasional sales of bees, queens, or beeswax.

This allocation differs dramatically from the national average, where honey still accounts for close to 50% of beekeeping revenue. But the national average includes substantial numbers of operations that don't participate in almond pollination. For the commercial beekeepers who do - which increasingly means most commercial beekeepers - almonds dominate the business model.

In 2017, US farmers paid $320 million total for pollination services. Almond producers alone accounted for $256 million of that amount - 80% of all pollination spending nationwide. Apple and blueberry industries each paid approximately $10 million. Every other crop combined accounted for the remaining $44 million.

By 2024, total pollination service value exceeded $400 million, still heavily concentrated in almonds.

The per-hive economics explain the concentration. Almond pollination fees averaged $165 per colony in 2016, roughly triple the $55 average for other crops. That premium persists. Beekeepers receive $150-200 per hive for almonds compared to $50-75 for most other crops.

Honey, meanwhile, faces downward price pressure. Wholesale honey prices hover around $3 per pound - down from historical highs and competing with imports that account for over 60% of US consumption. A well-managed hive produces 40-60 pounds of honey annually. At $3 per pound wholesale, that's $120-180 in honey revenue. A single almond pollination contract pays more than an entire season of honey production.

The math is straightforward. The transformation it drove took forty years.

What 418,000 Acres Became

California produced 370 million pounds of almonds from 418,000 bearing acres in 1995. By 2020, output reached 3.115 billion pounds from 1.25 million acres. The expansion peaked around 2023-2024 at approximately 1.4 million bearing acres before recent removals slowed growth.

That three-fold increase in almond acreage between 1995 and 2020 created unprecedented pollination demand. Almonds require heavy bee stocking - traditionally two colonies per acre for standard varieties, one colony per acre for newer self-fertile cultivars like Independence and Shasta. Self-fertile varieties occupied roughly 7% of bearing acreage as of 2024.

The 2025 almond bloom required an estimated 2.8 million bee colonies. That represents more than the total number of managed honeybee colonies in the United States as of January 1, 2024 (2.7 million). Every commercial colony in America, plus imports, barely meets almond demand alone.

And almonds bloom in February. The earliest major pollination event of the year, occurring when most bee colonies are still in winter cluster or just emerging. Before beekeepers can split strong hives to replace winter losses. Before most other pollination opportunities even exist.

That timing creates leverage. Almond growers must secure colonies in fall, months before bloom, often contracting for more bees than they actually need as insurance against shortages. Supply constraints drive prices up. Beekeepers who previously planned schedules around maximizing honey production now organize entire operations around being ready for almonds in February.

The Honey They Don't Want

Almonds produce honey. Bees placed in almond orchards during February bloom collect nectar and make honey. The problem: almond honey tastes bitter. Generally considered unpalatable for direct consumption. It has some commercial use in brewing and baking where the off-flavors get masked, but commands significantly lower prices than honey from other sources.

So beekeepers accepted higher almond pollination fees partly as compensation for producing low-value honey. The early bloom timing also meant preparing hives in ways that prioritized bee population over honey stores - feeding colonies sugar syrup through winter, building up worker numbers, essentially creating strong pollination units rather than honey-producing operations.

Compare this to traditional beekeeping economics. Historically, beekeepers moved hives to follow nectar flows. Spring in one region, summer in another, fall in a third location. Building honey stores, extracting periodically, managing colonies for maximum honey production. Pollination services existed but functioned as supplemental income or as positioning moves - placing hives in an area for pollination, then keeping them there for the subsequent honey flow.

Almonds broke that pattern. Beekeepers started organizing around a single early-season pollination event that produced unusable honey, then scrambling to reposition hives for actual honey production afterward. The logistics became inverted. Instead of producing honey and occasionally renting pollination services, operations rent pollination services and occasionally produce honey.

The Migration Pattern

California's almond bloom in February draws colonies from across the continental United States. Approximately 68% of all US commercial bee colonies participate in almond pollination. They arrive from Florida, Georgia, Montana, Idaho, North Dakota, South Dakota - anywhere beekeepers operate large enough colonies to justify cross-country transport.

The movement creates the largest managed pollination event worldwide. Thousands of semi-trucks carrying pallets of hives converge on California's Central Valley. The migration happens annually, driven by economics that make the trip worthwhile despite costs.

Transporting bees across state lines involves fuel, labor, permits, inspections at California border stations, and wear on equipment. A commercial operation moving 2,000 hives from North Dakota to California spends substantial resources on logistics. But almond pollination fees justify the expense.

After almonds bloom in February-March, many beekeepers move colonies to other California crops - cherries, apples, melons. Others transport hives back across the country to their home states for summer nectar flows. Some stay in California through summer, though forage quality in the Central Valley agricultural zones often disappoints compared to northern states' abundant summer wildflowers.

The pattern creates specific vulnerabilities. Colonies stressed by transport, exposed to high concentrations of other colonies (and their parasites and pathogens), pushed to build population rapidly for early pollination rather than allowed natural seasonal cycles. The intensity required to meet almond demand takes a toll.

The 2024-2025 colony losses - where commercial beekeepers lost 62% of hives - occurred primarily in operations preparing for almond pollination. The timing wasn't coincidental. The economic model that concentrates most commercial colonies in California in February also concentrates risk.

What Traditional Operations Lost

Beekeeping operations historically relied on honey as primary income, with pollination as supplementary revenue. That model allowed flexibility. Bad honey years could be offset by good pollination years and vice versa. Geographic diversity - operating in multiple regions or having multiple income streams - provided resilience.

The shift toward almond-dependent economics removed much of that flexibility. When a single crop in a single state during a single month generates 60% of revenue, everything else becomes secondary. Investment decisions, equipment choices, management practices, even breeding preferences for bees all optimize for almond pollination rather than honey production.

This matters when things go wrong. The 2025 colony losses hit operations preparing for almonds especially hard because those beekeepers had already invested in building strong colonies for February. They'd fed sugar through winter, stimulated brood production, potentially split hives early to meet contracted colony numbers. Then the colonies died.

Those losses meant not only dead bees but also unfulfilled pollination contracts. Almond growers who'd paid deposits for colonies that no longer existed. Beekeepers who'd built entire business models around almond revenue suddenly having no product to sell during their most important month.

Traditional honey-focused operations face different vulnerabilities. Bad weather, poor nectar flows, disease problems all reduce honey production. But those tend to affect operations gradually rather than catastrophically. A operation focused primarily on honey might have a bad year with 30% lower production. An operation dependent on almond pollination that loses 60% of colonies in January has no fallback.

The Infrastructure That Followed

The almond pollination boom created supporting industries. Bee brokers emerged to match beekeepers with growers, handling contracts and logistics. Transport companies specialized in moving hives efficiently across long distances. Indoor winter storage facilities in Idaho and Montana allowed beekeepers to maintain colony health before California deployment.

Indoor storage addresses a specific problem. Traditionally, beekeepers transported colonies to California "holding yards" in November, where hives waited through winter before February bloom. But colonies held outdoors in unfamiliar locations often struggled - losing population, spreading diseases among concentrated hives, lacking proper nutrition. Indoor storage facilities maintain stable temperatures, reduce honey consumption, and improve colony survival through winter.

The facilities represent substantial infrastructure investment justified by almond economics. Beekeepers pay for storage, but the service increases the percentage of colonies strong enough for pollination contracts. The math works only because almond fees are high enough to support the cost structure.

Similarly, bee breeding programs increasingly focus on traits valuable for almonds: early-season population buildup, tolerance for transport stress, disease resistance under high-density conditions. Honey production traits - like propensity to store excess honey or gentleness during extraction - become less important than pollination traits.

Equipment manufacturers adapted too. Hive designs optimized for transport rather than stationary use. Lifting equipment for loading trucks efficiently. Specialized packaging for queens shipped to rebuild losses. The entire industry reoriented around pollination-centric operations.

Why Self-Fertile Almonds Haven't Changed Much

The development of self-fertile almond varieties like Independence and Shasta promised to reduce bee dependency. Traditional almonds require cross-pollination between varieties, necessitating heavy bee stocking. Self-fertile trees can self-pollinate, theoretically requiring fewer bees.

Early adoption suggested significant potential. Self-fertile plantings grew rapidly in the mid-2010s as growers anticipated reduced pollination costs. Research from UC Davis examined whether self-fertile varieties truly needed bees at all.

The results were mixed. Self-fertile trees produced significantly lower yields without bees - often 40-60% reductions compared to bee-pollinated trees of the same variety. While self-fertile genetics meant some nut set occurred without pollinators, economic yields still required bees. The question shifted from "do they need bees" to "how many bees do they need."

Current recommendations suggest one colony per acre for self-fertile varieties versus two colonies per acre for traditional varieties. That represents meaningful savings - roughly $165 per acre in pollination costs. But it doesn't eliminate bee dependency entirely.

Self-fertile varieties currently occupy about 7% of California's bearing almond acreage as of 2024. New plantings of these varieties slowed after initial enthusiasm. Partly because pollination cost savings proved smaller than anticipated. Partly because self-fertile varieties haven't consistently matched traditional varieties in yield and kernel quality. Partly because even with self-fertile genetics, optimal production still requires bees.

The net effect: self-fertile almonds slightly reduced total bee demand but didn't transform the fundamental economics. California still requires 2.8 million colonies for 2025 bloom. Beekeepers still organize operations around almond contracts. The dependence continues.

The Price Mechanics

Almond pollination fees jumped dramatically between 2004 and 2006, more than doubling from around $55-60 per colony to $120-150. The increase reflected sudden adjustment in a market experiencing rapid demand growth as new almond acreage came online while bee availability remained constrained by colony collapse disorder (CCD) starting in 2006.

Since that jump, fees have remained elevated with gradual increases. The $165 per colony average in 2016 has trended toward $180-200 per colony by 2024, though variation exists based on colony strength, contract timing, and specific grower requirements.

Fee structures now often specify frame counts - typically 8-10 frames of bees per hive compared to 4-5 frames in earlier contracts. This "frame inflation" represents quality escalation. Growers pay for stronger colonies that provide more effective pollination. Beekeepers deliver larger populations, which requires additional feeding and management cost.

The dynamic creates pressure on both sides. Almond growers face pollination as 5% of total production costs - far higher than the 1% typical for most crops. That expense matters significantly when almond prices decline, as they have from mid-2010s peaks. Low commodity prices combined with high pollination costs squeeze profit margins.

Beekeepers, meanwhile, face pressure to deliver strong colonies despite rising colony losses. When winter mortality hits 40-60%, rebuilding to contracted colony numbers requires splitting remaining strong hives or purchasing bees from other operations. Either approach costs money and reduces profitability.

The result: almond pollination fees must stay high enough to cover beekeepers' increasing costs while growers resist further increases that erode already thin margins. The equilibrium feels unstable. Supply constraints support high fees. But those high fees incentivize both technological solutions (self-fertile varieties) and operational changes (growers reconsidering new plantings) that could reduce demand.

What Honey Production Became

Honey didn't disappear. Beekeepers still produce and sell honey. But honey production increasingly functions as a secondary activity conducted between pollination contracts or in regions where pollination opportunities don't exist.

The operations that remain heavily honey-focused tend to be smaller scale - hobbyists and sideliners managing fewer than 50-500 colonies. These beekeepers don't have the equipment, logistics capabilities, or colony numbers to participate efficiently in large-scale almond pollination. They produce honey for local sales, farmers markets, direct-to-consumer channels.

Commercial operations managing 1,000+ colonies generally participate in almond pollination regardless of whether they historically focused on honey. The revenue difference is too large to ignore. A beekeeper who previously managed hives primarily for honey production in North Dakota or Montana now transports colonies to California for almonds, returns them for summer honey flows in their home state, and potentially moves them again for fall pollination contracts.

The honey produced becomes supplemental income rather than primary business focus. Which ironically may improve honey quality in some cases - beekeepers positioning hives for optimal forage rather than convenient locations, extracting honey from flows that produce distinctive varietals rather than mixing everything together.

But the overall volume of domestically produced honey has stagnated or declined even as bee colony numbers remained relatively stable before recent losses. Because bees managed for pollination services don't necessarily produce maximum honey. The management priorities differ. Pollination prioritizes large populations of foraging bees during bloom periods. Honey production prioritizes consistent foraging over long periods and management that encourages bees to store excess honey rather than consume it for population expansion.

By August 2025

The economic transformation appears permanent. Beekeeping businesses have reoriented around pollination services with honey as a byproduct rather than the reverse. The infrastructure supporting this model - transport logistics, broker networks, indoor storage, specialized equipment - represents substantial sunk costs that reinforce existing patterns.

Almond acreage may be plateauing around 1.4 million bearing acres after decades of expansion. Recent years have seen more acreage removed than planted for the first time in decades, driven by low almond prices, water scarcity concerns, and the costs of complying with California's Sustainable Groundwater Management Act. If that trend continues, pollination demand might stabilize rather than continue growing.

But stabilization doesn't mean reduction. California still needs essentially every commercial bee colony in America for February bloom. And those colonies are increasingly difficult to maintain given rising losses from varroa mites, viruses, pesticide exposure, and accumulated stress from intensive management.

The collision between growing pollination demand and declining bee health creates obvious tension. Pollination fees must stay high enough to support beekeepers through 40-60% annual losses. But high fees make almond production less profitable, potentially accelerating orchard removals. Fewer almonds means less demand for bees but also less income for the beekeeping industry that restructured around almond contracts.

The system reached a strange equilibrium. Too expensive to expand, too entrenched to abandon, too valuable to both industries to let fail. Beekeepers can't stop doing almonds because that's where the money is. Almond growers can't stop using bees because nut set requires pollinators. Both face increasing costs from colony losses that nobody has solved.

Meanwhile, honey production continues - smaller scale, more distributed, less economically central than historical norms. The sweetener that humans have valued for millennia still exists. Bees still make it. Beekeepers still extract and sell it.

It just stopped being the point of beekeeping.

That shift happened gradually enough that few people noticed it was happening. One year pollination revenue was 45% of the total and honey was 47%. The next year those numbers reversed. Then pollination pulled further ahead. By the time anyone looked closely at the industry economics, honey had become a secondary product.

The bees produce it regardless. Whether anyone structures a business around it is a different question.