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A little bit of positive news for the US honey industry

Checkmite

Skepticifimisticalationist
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Furr'ners busted!

TLDR;

“The charges allege that these defendants aggressively sought and obtained an illegal competitive advantage in the U.S. honey market by avoiding payment of more than $78 million in antidumping duties, and while doing so deliberately violated U.S. laws designed to protect the integrity of our food supply,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “Not only was the Government defrauded from collecting substantial antidumping duties, but domestic honey producers and other importers were denied a fair market, according to the indictment, and the defendants distributed adulterated honey that never should have reached the U.S. marketplace,” he added.

It's called "honey laundering", and here's how it works.

It all starts in China. China, with access to an incredible supply of cheap labor, is the number one producer and exporter of "honey" in the world. Because they can produce so much so cheaply, they dump their honey on other countries, undercutting domestic suppliers and drastically lowering the price of honey.

Oh, well...tough deal, right? Not exactly. See, it's not just that the honey is so cheap. See, in America, us beekeepers harvest our honey, and the amount of honey we harvest in a given year is...well, vastly dependent on a whole slew of variables. One year - like this year! - we might have a bumper crop; another year - like last year, funnily enough - the harvest will be terrible.

In China, there's no such thing as a "bad crop". When it becomes evident that the bees will not be gathering a goodly amount of nectar, the honey-farmers there supplement the bees' stores with sugar syrup and HFCS. The bees take these sweeteners and cure them into something that looks a lot like honey, and combine them with the rest of the stores. The bees don't care. But as consumers, we care, because what's made from HFCS and sugar syrup is not real honey, it's just thicker sugar syrup or HFCS. When these products are mixed with regular honey, the honey is called adulterated.

And that's not all either. Beekeeping isn't the most labor-intensive job in the world, but hive management does take some effort. Every individual colony may have different needs or problems. Rather than take the time to inspect each hive for diseases and pests, the honey-farmers take a "proactive" approach and feed all of their colonies loads of medicines and antibiotics as a pre-emptive measure. Now, don't get me wrong - in the US, most beekeepers use medicines and antibiotics too when they're needed; but with this exception: by law, we cannot have any honey supers (hive sections filled with comb specifically used to store honey) that are destined to be extracted for human consumption on the colony when medicines, antibiotics, or other chemicals are applied, nor for a certain time period following the last application. In China, lost time is lost honey, so they have no such restrictions. The result: some of those chemicals and medications end up in the honey.

For these reasons, the US really does not want to import honey from China. I mean really; there is a 300-to-500% tariff on any honey China imports to the United States. We do this from time to time whenever we don't want a specific product imported for whatever reason - the tariff makes it so that China would actually lose money by shipping honey to America. Shut out of the market. What to do?

Well, what China does is they ship all their honey to "honey launderers" in a couple of countries - most notably Argentina, but there are others. The launderers essentially remove the "from China" shipping labels and resell the honey to US honey packers as Argentinian honey (or honey from whichever country the flipper is in). Honey from Argentina isn't subject to the same tariff, so it sells at a profit. China wins; you (the US honey consumer) and I (the US honey producer) lose.

Often it works. On some (too rare, in my opinion) occasions, as above, the plot is foiled when the USDA decides to test a shipment of honey, and finds traces of the antibiotics. Microscopic analysis of the pollen grains in the honey identifies China as the region of origin, and people get arrested. Honey packers are supposed to test the shipments for themselves - and many of them do, refusing to accept the shipment if they find antibiotics; but the packers almost never turn in the suppliers to the USDA, preferring to take a "we didn't accept it, therefore it's not our honey and not our responsibility" approach. The supplier just takes it back and re-sells it to another packer that doesn't test it, and it ends up on your supermarket shelf anyway, just under a different label.

In any case, it's good to see developments like this, as they show the process is working. The USDA is tremendously understaffed and can't test as much as we'd rather they did; but the DoJ is lately stepping up and taking an active role in investigating and prosecuting honey launderers.
 
Artist's rendering of honey launderers:

292qxk8.jpg
 
Furr'ners busted!

TLDR;



It's called "honey laundering", and here's how it works.

It all starts in China. China, with access to an incredible supply of cheap labor, is the number one producer and exporter of "honey" in the world.

Bees do work pretty damned cheap, don't they?





In China, there's no such thing as a "bad crop". When it becomes evident that the bees will not be gathering a goodly amount of nectar, the honey-farmers there supplement the bees' stores with sugar syrup and HFCS. The bees take these sweeteners and cure them into something that looks a lot like honey, and combine them with the rest of the stores.

Ahh, fraud. Finally something I can sink my small-L libertarian teeth into.

Fraud bad.


I heartily encourage you to elect politicians who will standardize the requirements, and verify them as well.


The result: some of those chemicals and medications end up in the honey.

I presume these standards have been set using science. I also presume that Chinese honey suffers, on average, from more of these chemicals when compared to the exact same analysis of US-based honey.

Olestra fat substitute for potato chips was whined about as causing cramps and stuff. "Everyone knew it", thanks to talking heads and anecdotes and the placebo effect. Then someone, shockingly, studied regular chips, and found out Olestra chips actually caused slightly less abdominal cramping.

So keep this context in mind vis-a-vis Chinese imported honey vs. domestic.


For these reasons, the US really does not want to import honey from China. I mean really; there is a 300-to-500% tariff on any honey China imports to the United States. We do this from time to time whenever we don't want a specific product imported for whatever reason

Usually paying off the domestic competition (owners or workers) who cannot keep up. I.e. doing the exact opposite of keeping the trade routes open.

Play that game at your own risk, if you actually care about the well-being of your people.






Well, what China does is they ship all their honey to "honey launderers" in a couple of countries - most notably Argentina, but there are others. The launderers essentially remove the "from China" shipping labels and resell the honey to US honey packers as Argentinian honey (or honey from whichever country the flipper is in). Honey from Argentina isn't subject to the same tariff, so it sells at a profit. China wins; you (the US honey consumer) and I (the US honey producer) lose.

Often it works. On some (too rare, in my opinion) occasions, as above, the plot is foiled when the USDA decides to test a shipment of honey, and finds traces of the antibiotics. Microscopic analysis of the pollen grains in the honey identifies China as the region of origin, and people get arrested. Honey packers are supposed to test the shipments for themselves - and many of them do, refusing to accept the shipment if they find antibiotics; but the packers almost never turn in the suppliers to the USDA, preferring to take a "we didn't accept it, therefore it's not our honey and not our responsibility" approach. The supplier just takes it back and re-sells it to another packer that doesn't test it, and it ends up on your supermarket shelf anyway, just under a different label.

In any case, it's good to see developments like this, as they show the process is working. The USDA is tremendously understaffed and can't test as much as we'd rather they did; but the DoJ is lately stepping up and taking an active role in investigating and prosecuting honey launderers.


So...the government is failing in its duty to prevent fraud, in this case, on ensuring honesty in honey imports? That's what I take from this.
 
Bees do work pretty damned cheap, don't they?







Ahh, fraud. Finally something I can sink my small-L libertarian teeth into.

Fraud bad.


I heartily encourage you to elect politicians who will standardize the requirements, and verify them as well.




I presume these standards have been set using science. I also presume that Chinese honey suffers, on average, from more of these chemicals when compared to the exact same analysis of US-based honey.

Olestra fat substitute for potato chips was whined about as causing cramps and stuff. "Everyone knew it", thanks to talking heads and anecdotes and the placebo effect. Then someone, shockingly, studied regular chips, and found out Olestra chips actually caused slightly less abdominal cramping.

So keep this context in mind vis-a-vis Chinese imported honey vs. domestic.




Usually paying off the domestic competition (owners or workers) who cannot keep up. I.e. doing the exact opposite of keeping the trade routes open.

Play that game at your own risk, if you actually care about the well-being of your people.









So...the government is failing in its duty to prevent fraud, in this case, on ensuring honesty in honey imports? That's what I take from this.

having a Domestic honey production is not only important for Honey.
also for Pollination it turned out to be very important, do to the shrinking domestic honey production, more and more bees have to be hired for pollination.
 
It seems like enforcement should pay for itself with fines and so forth. If foreign entities can not be fined, they will still have to eat the shipping costs, which should discourage the business.
 
having a Domestic honey production is not only important for Honey.
also for Pollination it turned out to be very important, do to the shrinking domestic honey production, more and more bees have to be hired for pollination.

This.
It's one of those issues where all the obvious interest and repercussions sit in the financial realm and mask a larger underlying problem. Adulterated honey = bad for beekeepers and consumers; dwindling pollinator stocks = enormously bad for agriculture as a whole and a large chunk of ecosystem functions.
 

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