Buzz around Aussies taking on NZ honey

Co-founder Jay Curtin said on Wednesday that New Zealand has done a "fantastic job" at marketing Manuka honey, which has made it easier for rival high-strength medicinal honey to be accepted.

Creating a buzz with its first crowdfunding effort to take on "big honey" at home, the social enterprise will open a second round in mid-February to give small investors another chance to dip in.

Recent success in selling to customers in the Middle East means more production capacity is needed for exporting the 100 per cent Australian fair-trade honey.

Already making a mark in Asia but challenged by China not wanting to work with Australia, the company realised it needed to diversify, Ms Curtin said.

Export deals for medicinal grade Australian honey have been struck with Kuwait and the United Arab Emirates, and there is now interest in Saudi Arabia and Qatar.

Ms Curtin said Middle Eastern buyers are happy to see a medicinal honey that tastes better than Manuka.

"We compete on price, we're competing on strength with a far more powerful option, and also on flavour."

She said up to $3 million would cover a new processing and packaging plant, secure the honey supply from beekeepers, and cover a marketing campaign.

"We need a lot of money to develop the brand and get it out there," she said.

"We're using New Zealand processing technology because we want the best of the best."

Venture capitalists have shown interest in funding the start-up but Ms Curtin is sticking to crowdfunding.

"It really is the best way to get out there," she told a webinar hosted by equity crowdfunding platform Birchal.

The first round with Birchal last year raised $700,000 from 500 people, including dozens of beekeepers.

But she said a shareholder base of 1500 could create an "army" to campaign against big supermarket chains Coles and Woolworths and get jars on shelves.

"We're all about giving beekeepers a fair go and socking it to the big guys."