By RON PHIPPS - Apiservices

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By RON PHIPPS - Apiservices
by RON PHIPPS

Introduction                                honey. TR is a hero to all who value     “Year of the Bee.” The essential role
   “From a banana I could carve a           authenticity.                            bees play in food security and ecologi-
stronger backbone than his.” Teddy            We need to understand that adul-       cal sustainability has been recognized.
Roosevelt, the first American to win        teration is not just adding extraneous      Demand for authentic honey is
a Nobel Prize, said of Supreme Court        adulterants but includes processes       increasing and supply is decreasing.
Justice Oliver Wendell Holmes.              that preclude the complex interaction    Some buyers are now paying over
   It was Teddy Roosevelt’s courage         of botanical and zoological life forms   the market price to secure supply
that created the U.S. Food and Drug         which create honey. All the modes of     because they know prices will rise
Administration to assure the authen-        adulteration and their detection must    further. A famous spice buyer once
ticity, purity and safety of the food       be understood.                           said to me, “We need assurance of
supply and drug supply. It was TR             We are on the verge of the final-      supply. We can’t put a nickel in a tin
who had the courage to oppose the           ization of the U.S. Pharmacopeia         of cinnamon.”
violation of antitrust statutes by mo-      standard, which was recommended             Prices paid to U.S. beekeepers in
nopolies and cartels, which colluded        by Professor Michael Roberts to the      November of 2020 ($1.40-2.00/lb. as
and conspired to control markets and        American beekeeping industry. Le-        reported in the National Honey Re-
standards and reduce competition,           gal experts on Food Fraud and Eco-       port) contrast sharply with the rising
disrupting the legitimate interests of      nomically Motivated Adulteration         retail prices of 2020 which reached
the American people.                        (EMA) have recommended new               a 5-year high of $8.09/lb. in May.
   To escape the horrendous heat and        types of contracts and more intru-       During the past six years the general
humidity of Washington, DC, Presi-          sive and comprehensive traceability      trend has been that selling prices of
dent Roosevelt spent summers on             regimes.                                 retailers and packers have increased
Long Island. The building which was           International governments and          while the prices to beekeepers and
TR’s “Summer White House” during            organizations are recognizing that       honey exporters were collapsing.
his Presidency now houses a res-            the phenomena of Food Fraud and             By mid-autumn 2020, authen-
taurant named “Wild Honey.” TR’s            EMA arose through collusion and          tic honey was sold at over $2.00/
face is carved on Mount Rushmore            conspiracy.                              lb. ($4.40/kg). Canadian honey has
in South Dakota with the faces of                                                    gone to some packers at $2.08/lb.
Washington, Jefferson and Lincoln.          A sea change                             Forward contracts for Argentine
South Dakota is the world’s center            A Sea Change occurs in the year        honey are already based upon $1.81-
of production of high quality clover        which has been designated as the         2.09/lb. Argentine exporters have

Chart 1 U.S. Retail Honey Prices by Month

February 2021                                                                                                             1
By RON PHIPPS - Apiservices
ket at low prices.
                                                                                      Concurrent with the increased de-
                                                                                   mand and the short supply of authen-
                                                                                   tic honey, the dangers in trafficking in
                                                                                   adulterated honey are dramatically
                                                                                   increasing.

                                                                                   A favorable confluence
                                                                                      Governments and judicial systems
                                                                                   in Europe and North America are
                                                                                   increasingly aware of the emergence
                                                                                   during the past decade of the national
                                                                                   and international collusions to estab-
                                                                                   lish cartels and monopolies which are
                                                                                   detrimental to the interests of both
                                                                                   producers and consumers. Such car-
                                                                                   tels seek to police themselves. Such
                                                                                   monopolistic behavior is noted by
                                                                                   economists as well.
                                                                                      The U.S. Pharmacopeia is finalizing
                                                                                   their important and strong standard
                                                                                   for honey. It is anticipated that this
Chart 2 Average Honey Import Price per Pound 2020 and 2019                         will be finalized by the end of Janu-
                                                                                   ary 2021. Numerous comments have
reported how the beekeepers are de-         crazy physical long hours to be        been submitted by diverse interests
manding increasingly higher prices.         able to stay in this worthwhile        within the industry. The statement
Argentine beekeepers are already            business they love.”                   was strong, and while it may be en-
being paid 40% higher than in 2020.                                                hanced, we anticipate that it will
A surge in prices for organic honey          Chris calculates the cost of keep-    remain strong. The document is a ful-
had also begun. Organic honey from        ing 7,000-8,000 hives, writing that      fillment of Roberts’ advocacy in his
Brazil has been sold to North Amer-       “the feed increases and cost of labor    first White Paper concerning honey
ica at $2.05/lb.                          increases … [and] the American bee-      fraud (www.apiservices.biz).
   Graphs provided by Dr. Stan Da-        keeper just keeps plodding along            Apimondia’s Statement on Honey
berkow and published in the ABJ           with the increases in expenses.”         Fraud, which came out in Janu-
(September 2020) showed the increase         The contradiction between hugely      ary 2020, will likely remain in place
in retail honey prices and in the pack-   increasing “honey” exports, stable       in 2021. These two documents will
ers’ prices, whereas the prices paid to   numbers of beehives, and significant     greatly contribute to the movement
beekeepers collapsed over the past 6      declines in productivity per hive,       to ensure the authenticity of honey
years, especially the past 3 years.       has, in the words of Prof. Michael       products. Dr. Stan Daberkow, emeri-
   In the autumn newsletter of the        Roberts, rendered the beekeepers         tus economist of the U.S. Depart-
American Honey Producers Associa-         an “Endangered Species.” The Api-        ment of Agriculture, has stressed that
tion, Chris Hiatt described how the       mondia Regional Commission of the        standards for agricultural products
cost of production of American honey      Americas and the Apimondia Sci-          should be independent of their ul-
went up for his beekeeping opera-         entific Commission of Beekeeping         timate use. That is correct and it im-
tions by 250% from 2008 to 2019. He       Economy calculated that during the       plies these should apply to the retail,
also stated:                              past 5 years the cumulative losses       manufacturing, food service, cosmetic
                                          to beekeepers are $1 billion. As the     and pharmaceutical industries.
       “Honey prices paid to bee-         U.S. import statistics illustrate (see      There are new efforts to define
    keepers have not kept pace with       Chart 2), the collapse of prices per-    proper modes of production of honey.
    the rise at the retail level, and     sisted through the first 9 months of     Dr. Jeff Pettis, formerly of the USDA’s
    two years ago for the first time      2020. The authors of the Apimondia       research sector, and current Presi-
    the National Agricultural Sta-        report estimate that the cumulative      dent of Apimondia, gave the Keynote
    tistics Services [NASS] reported      losses during the past 6 years have      speech at the AHPA’s annual confer-
    that pollination passed honey         now reached $1.35 billion. When con-     ence, which was transmitted by video
    for beekeeper income. My fam-         sideration is given to Hiatt’s point     in December 2020. Dr. Pettis’ speech
    ily’s company keeps our hive          regarding increased costs of produc-     was entitled “Bees, Food Fraud and
    numbers up by making nucs             tion, the cumulative losses to bee-      Hope.” He pointed out that the pro-
    after almonds in California and       keepers are approximately $2 billion     duction of unripened, immature, high
    again after apples in Washing-        over the past 6 years! A Sea Change      moisture honey represents an illicit
    ton. Queens do not live as long       is imperative.                           mode of production. He described
    as they used to. The varroa/             The magnitude of these losses to      how Chinese beekeepers extract the
    virus complex, mite treatments,       beekeepers has spurred persistent        honey from the frame the day of pro-
    nosema, are all very hard on the      and recurrent reports and rumors of      duction and then send it on its jour-
    queens. We replace close to 80%       the launching of a new antidump-         ney to factories.
    every year. Many beekeepers I         ing suit against the imported honey         The apiservices website, which is
    know are struggling and work          which has been flooding the U.S. mar-    widely read, has a description about a

2                                                                                            American Bee Journal
By RON PHIPPS - Apiservices
meeting between French beekeepers
and Chinese honey exporters, when
the Chinese mocked the French meth-
ods of producing authentic honey
since they did not produce the huge
quantities with a low cost of produc-
tion which allow the Chinese to re-
ceive enormous profits.
   At Apimondia, some Chinese
honey producers described that 95%
of Chinese honey is extracted as im-
mature honey with moisture content
of about 45%. In a recent conference,
another Chinese expert referenced
that 90% is immature honey. The Chi-
nese themselves call this “feng mei
shui” or “water honey.” This mode
of production has been exported,
along with Chinese resin technology,
to at least two major honey exporters
in Asia. Some of those exporters, as
the chart below illustrates, are highly
dependent upon the U.S. market and
have great difficulties exporting to       Chart 3 Percentage of Total Honey Exports Destined to the U.S.
other markets. The virtue from the
point of view of the fraudsters of that    portant work with the United Nations       food fraud criminology. Various in-
mode of production, which is a mode        Food and Agricultural Organization.        ternational organizations, not just
which has been witnessed by many           Since food fraud is an international       the judicial system, are integrating
western members of the honey indus-        problem, involving collusions and          adulteration and criminology. In ad-
try, is it can produce huge quantities     conspiracies on an international level,    dition to the academic world the is-
of honey and do so at a very low cost      the solutions must be international in     sue of food fraud has appeared in the
of production.                             nature.                                    mass media including the BBC, Net-
   Dr. Pettis quoted from an article by      Recently an important and timely         flix ("Rotten"), Vice, the Australian
Etienne Bruneau, which included the        book has been published, “Food             press, news reports in the U.K. and
dramatic illustration of the astonish-     Fraud: A Global Threat With Public         India in late 2020. Undoubtedly more
ing growth of exports from Asia and        Health and Economic Consequences”          revelations await publication. Dr. Pe-
the modest increase in the number of       (ed. Rosalee S. Hellberg, Elsevier         ter Awram writes, in his paper “The
beehives (Chart 4).                        2020), which includes a chapter on         History of Honey Fraud” (The British
   What is consistent with the descrip-    honey fraud by Prof. Norberto Garcia       Bee Journal, June 2020), “The interna-
tion of honey in Codex, Apimondia,         and Dr. Stephan Schwarzinger. The          tional traffic of adulterated honey has
and the efforts of the U.S. Pharmaco-      development of international food          increased to unsustainable propor-
peia is the principle that honey must      fraud law is inclusive of analytic de-     tions in recent years.”
be extracted only when it is fully         tection methods and strategies for            A series of podcasts on the use of
ripened and mature. The function           detecting food fraud. Furthermore,         Nuclear Magnetic Resonance for
of bees is not simply to “transport”       there is a whole chapter devoted to        detecting food fraud in numerous
nectar, but rather to transform nectar
into honey.
   Prof. Enrique Bedascarrasbure is a
world expert on how authentic honey
can, must and should be produced in
tropical and semi-tropical regions.
Honey exporters in countries in those
regions have consistently affirmed
“we can produce authentic, mature
honey, but it takes longer and we can-
not meet the quantity and price de-
mands of the American market if we
employ those modes of production.”
This mode of production is not a mat-
ter of climate but is driven by the eco-
nomic interests of those engaged in
honey fraud in the food sphere.
   Prof. Michael Roberts, a pre-emi-
nent legal authority on international
food fraud, including food fraud in
the honey industry, continues his im-      Chart 4 Marche Asiatique (+ Ukraine)

February 2021                                                                                                              3
By RON PHIPPS - Apiservices
taries coalescing in a Great River for
                                                                                     Authenticity in Honey.

                                                                                     Imported Honey Prices, Quantities
                                                                                     and Markets
                                                                                       Argentina
                                                                                       Many contracts from 2020 that
                                                                                     were speculatively entered will have
                                                                                     difficulty being fulfilled because the
                                                                                     price from Argentine beekeepers
                                                                                     has increased about 40% from a year
                                                                                     ago, and as the demand for authentic
                                                                                     honey further increases, that increase
                                                                                     will steepen. Argentina shipped to
                                                                                     the world about 74,000 metric tons in
                                                                                     2020, one of the highest amounts dur-
                                                                                     ing the past decade. Given the fact that
                                                                                     the Canadian honey crop is essentially
                                                                                     sold out, the demand upon and the
                                                                                     prices of authentic Argentine honey
                                                                                     will continue the wave upward.

                                                                                        Brazil
Chart 5 U.S. Honey Imports from Different Origins                                       In 2020 there appeared for the first
                                                                                     time the aberration that the significant
products is being released. The first      rate mandate to create a new genera-      price differential between conven-
podcast “Honey Fraud” features Prof.       tion of consumers. At the same time,      tional and organic honey collapsed.
Michael Roberts and myself. The sec-       the awareness of the social responsi-     This reflects the terrible state of the
ond in the series addresses the sci-       bility of retailers and manufacturers     market for honey.
ence of detecting adulteration and         to combat food fraud and economi-            Prices for organic honey began
the importance of food fraud law. The      cally motivated adulteration has          moving upward in the second half
third will present discussions of geo-     grown.                                    of 2020 and by October import prices
graphical and botanical origin in the         The U.S. Congress has mandated         were around $1.31/lb. As a leader in
wine industry, and the law in respect      the procurement of NMR technology         Brazil’s honey trade said about the
to the proper and accurate marketing       for honey. As Kelvin Adee said in the     price increases: First the prices were
of wines.                                  Honey Producer Newsletter, “Test-         too low to begin with. Then there was
  Another factor is the emergence of       ing of imported honey is a must. This     a surge in buying from companies
consumer movements which include:          needs to be done by Customs and           afraid to run out of the product dur-
1) eco consumers, 2) sustainability        Border Protection (CBP) as a regula-      ing the pandemic. Problems with the
consumers, and 3) authenticity con-        tory process. Ideally, 100% of the im-    honey crop itself created further pres-
sumers. Multinational corporations         ported honey would be tested.” It is      sure on the prices during that period.
are aware they must respond to these       anticipated that samples have already     Prices in December were $1.64-1.82/
consumer interests, especially if they     been drawn from shipments.                lb. in Brazil.
are to successfully fulfill their corpo-      All of these developments are tribu-      Suppliers in Brazil and Argentina
                                                                                     have asked to renegotiate or cancel
                                                                                     some old contracts signed before the
                                                                                     pandemic. Brazil exported from Jan.
                                                                                     until Nov.: 71,000,000 lbs. to the U.S.
                                                                                     and 16,530,000 lbs. to the European
                                                                                     Union.

                                                                                        Canada
                                                                                        Canadian beekeepers are reporting
                                                                                     rising prices reaching USD$2.08/lb. in
                                                                                     December.
                                                                                        Interestingly, now that the market
                                                                                     is steeply rising, the manipulators are
                                                                                     offering prices above the market in an
                                                                                     effort to control the authentic honey
                                                                                     which is now in high demand but di-
                                                                                     minished supply. The masters of mar-
                                                                                     ket manipulation expect that prices
                                                                                     will continue to increase for authentic
                                                                                     honey. The reality of a Sea Change is
                                                                                     increasingly apparent throughout all
Chart 6 Unit Prices of Honey Imported by the US 2019-2020                            levels of the market.

4                                                                                              American Bee Journal
By RON PHIPPS - Apiservices
Dramatic events in the U.K., India          golden syrup, invert sugar syrup,         fect the international honey industry
and Canada relative to honey adul-          rice syrup into India to submit           remains to be seen. But already, prior
teration                                    necessary documents with de-              to the pandemic, Chinese interests
  United Kingdom: Reports from the          tails of the manufacturer with            were acquiring honey companies in
U.K. regarding adulteration findings        end use to whom the syrups will           Europe, South America, North Amer-
in honey at major retail outlets spread     be supplied.                              ica, Australia, and Asia. China’s appe-
in November, 2020. We excerpt from            The same Chinese companies              tite for strategic resources, including
the Sunday Mail:                            that advertise this fructose syrup        agricultural resources, and its willing-
                                            that can beat C3 and C4 tests also        ness to print money and incur huge
    U.K. Sunday Mail November               export to India …                         national debt loads, have heightened
  2020                                        Several countries export fruc-          concern about China’s international
    Tests conducted on own-brand            tose syrup to India, but “China is        economic activities.
  honeys from Co-op, Tesco, Sains-          driving the trend of fructose syrup          While China lauds its commit-
  bury’s and Asda suggest they              quantity imported in India.”              ment to battling climate change, it is
  have been bulked out with                   A Chinese exporter told the             the only major country in the world
  cheap syrups made from rice               investigator for Down to Earth:           which in 2020 increased its emissions
  and corn – without the retailers'         “most of their clients mix 50-80          of CO2 heat trapping gases.
  knowledge …                               per cent syrup in their honey.” In-          All these macroeconomic, geopoliti-
    Ten of the 13, including Asda           vestigators found that “Samples           cal and global climatic concerns man-
  Set Pure Honey and Sainsbury’s            with adulteration up to 50 per            ifest the general principle that what
  Clear Honey, tested positive for          cent pass Indian tests.”                  happens in a given domain cannot be
  the presence of enzymes indicat-                                                    fully understood without reference to
  ing that they may be “adulterated          Canada: The 2020 Canadian authen-        what is happening in other domains
  with inverted syrup” …                  ticity study indicated the presence of      with which it inevitably interacts.
    If the analysis, using a new          adulteration even in a relatively so-
  generation of "nuclear magnetic         phisticated and high quality market.        The toolbox and its proper use
  resonance" tests, is proven, it         This is the second report and it reflects      The most advanced and compre-
  would represent the U.K.’s big-         a change attributable to strong efforts     hensive tool, which also has the most
  gest food fraud since the horse-        by Canadian beekeepers and atten-           wide global database, is NMR.
  meat scandal in 2013.                   tion from the media to highlighting            But there are also other methodolo-
                                          and overcoming use of adulterated           gies, including High Resolution Mass
   India: We excerpt below from an        honey. It is worthy to note that Can-       Spectrometry (HRMS). Each of these
in-depth 40-page report by Sunrita        ada imports very modest amounts of          methods is powerful, if properly and
Narain, investigating honey adultera-     honey from origins with a clear his-        appropriately used.
tion in India. This report was pub-       tory of adulteration.                          It must be noted that the Indian
lished in Down to Earth magazine in                                                   analysis for adulteration cited earlier
December 2020.                            Macro conditions                            was confined to extraneous sweeten-
                                             The macro geopolitical context in-       ers, including bioengineered sweeten-
     After investigating the “golden      cludes: 1) the COVID-19 pandemic            ers. The testing methods used were
  syrup” and fructose syrup use           threatening human health, the econ-         not applied to the analysis of resin
  in bulk honey, the investigators        omy, a hunger crisis, and long term         technology nor the extraction of imma-
  studied 13 Indian retail honey          impacts on education and individual         ture honey, both of which are known
  brands. After analysis in In-           psychology; 2) a climate crisis, with       sources of adulteration in India.
  dia, tests in Germany showed,           expectations of more fires, droughts           In Germany, where many of the
  “Almost all samples failed on           and floods; 3) a global debt crisis         laboratories are found, the law for
  Nuclear Magnetic Resonance              which impacts the currencies of ma-         certifiers is such that if and when
  Spectroscopy (NMR) test. Labora-        jor nations; and 4) unpredictable and       adulterated and fraudulent products
  tory said, ‘indicates adulteration/     rising freight rates.                       are certified as pure, it is inadequate
  addition of sugar syrup.’ Of the 13        The impact of these events on            to say that this company or that or-
  brands only three brands passed.        global agriculture becomes of increas-      ganization instructed me to test for A
  Of the 22 samples only five sam-        ing concern. The agricultural sector        and B when in fact the certifier had,
  ples passed test. Rest were adul-       can no longer ignore these events.          or should have had, sufficient knowl-
  terated.” …                                In his keynote address, Dr. Pettis re-   edge to know that parameters C, D
     On May 20, 2020, FSSAI [In-          ported that “rising atmospheric CO2         and E must also be checked. Under
  dian government food authority]         is reducing by 30% the pollen concen-       international laws regarding certifica-
  issued an order on the import of        tration of a floral pollen source essen-    tion of authenticity, the certifier is re-
  golden syrup, invert sugar syrup        tial for North American bees.”              sponsible to make sure all the relevant
  and rice syrup. This order says            As many countries have entered se-       and appropriate parameters indicat-
  that FSSAI has been informed            vere recessions, debt and stagnation,       ing modes of adulteration have been
  that “sometimes these syrups are        it is interesting to note that Chinese      investigated.
  used in the production of honey         venture capitalists have become very           We have seen attempts to use the
  because it is cheaper in cost and       aggressive throughout the world in          wrong tool and also to use the right
  due to similar properties and           acquiring energy resources, high tech       tool, but in an improper and limited
  easy availability.” It directed         companies, agricultural resources,          manner. You can use a saw to hammer
  that all importers/food business        mines, etc. To what extent that eco-        a nail; you can’t use a hammer to cut
  operators, who are importing            nomic acquisitiveness has or will af-       and shape a piece of wood.

February 2021                                                                                                                 5
By RON PHIPPS - Apiservices
The fundamental fact is that the          Since food fraud in the honey            Mr. Phipps is President and founder of CPNA
past decade has revealed multiple so-      sphere represents the third largest        International, Ltd. He is a former member of
                                                                                      the National Honey Board and Co-Chairman of
phisticated modes of adulteration of       and most prevalent fraud in food,          the Committee for the Promotion of Honey and
honey. The Apimondia document on           new types of contracts are required.       Health. He was a recipient of a National Sci-
food fraud, and other articles, bear       Those contracts must include: 1) a         ence Foundation Fellowship in the Philosophy
witness to adulteration by extrane-        comprehensive traceability system          of Theoretical Physics. He was an Organizer of
ous sweeteners, some of which have         which includes modes of production,        the 2020 Beethoven Festival by the CPI at the
been bioengineered, and the use of         botanical sources, geographic re-          magnificent Planting Fields Arboretum. In 2017
                                                                                      he was appointed Vice President of the Api-
resin technology to remove antibiotic      gions, extraction procedures, climate      mondia Scientific Commission on Beekeeping
residues, unpalatable flavors and to       conditions, storage conditions; 2) the     Economy. He has worked with FDA to develop
transform dark honey into extra light      use of the appropriate test method-        a research protocol for the global diversity of
amber and white honey.                     ologies to detect all relevant modes       honey. e-mail: info@cpnaglobal.com
   NMR has the potential, if fully and     of adulteration.
appropriately used, to detect mul-
tiple modes. One of the most impor-        Two sides of the coin
tant modes is to detect immature,            The markets must integrate and
unripened honey. NMR can analyze           harmonize the incentives to consume
36 chemical profiles and parameters        and to produce honey. This “Year of
within the chemical profile of honey.      the Bee” will be a year in which to re-
There are so many parameters because       move beekeepers from the list of en-
mature, authentic honey has multiple       dangered species. It is a time to show
constituents. As mentioned earlier, the    integrity and respect for those who
function of bees is not simply to trans-   produce botanical products and pro-
port honey from place to place, but        tect nature.
rather to gather nectar and transform        It is time to stand up and turn the
it to honey through the completed and      coin on its other side, for the creative
complex interactions of botanical and      marketing of honey depends upon the
zoological life. When NMR was first        authenticity of honey.
introduced, Dr. Gudrun Beckh made            Beekeepers, honest packers and
the point that the NMR profiles of im-     honest exporters will inevitably in-
mature, unripened honey resembled          creasingly take initiative in the cre-
the profiles of nectar. Which is to say,   ative marketing of this beautiful
nectar is not honey.                       product of nature.

6                                                                                                 American Bee Journal
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