S.P.M.F. - The honey market confunted with adulteration

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THE HONEY MARKET CONFRONTED WITH ADULTERATION. BRIEF DESCRIPTION OF THE SITUATION. FEBRUARY 1999. MOTIONS VOTED BY THE PROFESSION.

World Production: 1,200,000 tonnes approx.
International Sales (bulk): 300,000 tonnes approx.
Principal Exporting Countries: CHINA, MEXICO, and ARGENTINA.
Principal Importing Countries: JAPAN, UNITED STATES, and EUROPEAN UNION.

UNITED STATES

Annual Consumption, 150,000 tonnes approx. Of which 50,000 tonnes are imported (but with large variations). Effectively, the States control the market according to the principles of the free market. Consequently, the State frequently intervenes with mechanisms more or less complex, (temporary aids for storage, minimum prices, importation quotas, customs taxes that may reach 150% ad valorem) to correct the distortions that result from dumping by certain exporting countries, China in particular.

The 1998 harvest was considered to be good and there is reported to be a considerable stock from the previous harvest. (Producers are able to receive state advances enabling storage.)

As well, Canada announces a 1998 harvest of about 40,000 tonnes. ( a 30% increase)

It is therefore probable, for the next six months at least, that, overall, North America will not import important quantities of honey.

SITUATION WITH REGARD TO ADULTERATION.

The United States were the first to raise the alarm on the subject of adulteration. The principal methods of control used to this day (C13 simple or double control, method AOAC N° 991.41. White and Winters) were invented over there. Evenso, consulted operators admit that the frontier is not sealed against falsification.

JAPAN

Local production is insignificant. Consumption according to the importation figures is very irregular. After the records of recent years, (approx. 60,000 tonnes, partly used in the manufacture of a "light" drink based on honey) the collapse appears spectacular.

Only 30,000 tonnes were imported during 1997, 25% less than the preceding year.

Without an end of year upturn, 1998 will platform out at a level of about 27,000 tonnes.

Previously, supplied by Argentina, it is now China that supplies practically all the requirements.

SITUATION WITH REGARD TO ADULTERATION.

Lack of information on the situation.

ARGENTINA

Local consumption is feeble. Production is for exportation, in pots for the nearby countries (Brazil etc.), in barrels for the rest of the world.

The 98/99 harvest is coming to an end. Apart from south of Buenos Aires, IT IS FORECAST TO BE AN EXCELLENT CROP.

Already, 97/98 reached high points: nearly 70,000 tonnes exported, approx.10,000 tonnes held in stock.

Price having passed 2,000$ only 18 months ago have fallen by the end of 1998 to 1,300$./Tonne.

Selling prices of less than 1,100$/Tonne are to be found at the present moment. (around 1.30 Euro, all charges included). (1).

SITUATION WITH REGARD TO ADULTERATION

The majority of Argentinean honey is produced by professionals owning from several hundred to several thousand hives, and is usually of the highest quality. Even though certain importers in Europe and N. America have signalled a few cases of adulteration, the phenomena rests very limited.

MEXICO

In Mexico, unlike in Argentina, the bee stock has not developed in a spectacular manner. It appears that health problems are deeply rooted. Importers regularly complain of honey lots being polluted by antibiotic residues. It must also be said that the fall in the market at the end of the eighties decimated the Beekeeping population. Even though Mexico has specialised Beekeepers as in Argentina, large amounts of honey are collected from smallholders owning only a few hives. Professional competence is falling and the quality of the produce is going the same way.

The harvest is being collected at the moment. It will be excellent. Outside the areas hit by hurricane "Mitch", there has been abundant rainfall, as in the south, towards Guatemala, (where the harvest should be equally good). As usual, the prices are slightly superior to those of Argentina, but for the same reasons, it is thought that they will fall over the next few months.

SITUATION WITH REGARD TO ADULTERATION

To our knowledge, identical to that of Argentina.

CHINA

The land of great mystery!

It is also with more than 100,000 tonnes/year, the world's number one exporter.

The harvest has been described as "average", (140,000 tonnes) but this doesn't signify very much.

Between the announced production figure at the beginning of the season, and the definitive figures there maybe a disparity of up to 30%. Consumption is weak and as far as can be told is not changing very much. Evenso, the day that the Chinese population will have the ability to consume real honey, the local production risks in not being sufficient.

For 1998, the loss of Japanese and N. American markets have been evaluated at 20,000 tonnes. Therefore there are stocks of honey.

These must be sold elsewhere, principally in Europe, and this is what has been happening for several months.

The "catalogue" price, around that of 900$/tonne shows a fall of about 50%, (1) inferior in certain cases. (1 Euro, transport, Customs charges included). Taking into account the "quality", the incurred risks, the considerable control costs needed to be undertaken, when compared with Argentina, it's expensive. If they want to sell, the Chinese resort to dumping… but that's something they know how to do… and for honey, it seems that they no longer need bees for that.

SITUATION WITH REGARD TO ADULTERATION

Everybody knows that: China invented, planned and organised the large-scale adulteration of honey. For several years, as the analytical techniques for quality control were honed in the west, the Chinese improved their methods of fabrication. Certain importers affirm that the totality of their exports is adulterated. There are those that claim that the lots that pass the analytical controls contain more honey and are therefore more expensive to "make", that's all. One can only say with certitude, that a large proportion of honey exported by the Chinese and that pass through Customs wherever in the world, are falsified.

30%? 60%?, 90%, nobody knows precisely. Whatever the cause, this situation is particularly unhealthy, and it is the producers who stand to loose from the affair. This said, the solution is not easily found.

THE EUROPEAN UNION.

The principal figures (approx.)

Total consumption, 270,000 tonnes
Production 130,000 tonnes (France 40,000, Spain 30,000, Italy 10,000).
As well as 400,000 hobby beekeepers, there are approx. 10,000 full-time professional beekeepers and 40,000 part-time beekeepers
Importation from overseas 140,000 tonnes (Germany 80,000, United Kingdom 20,000, France, Spain, Italy, 10,000 tonnes each).

The European production, highly appreciated by consumers, is correctly valued when sold directly to the customer. On the bulk market, for more than fifteen years, the buyers, very concentrated, and only exceptionally, unmotivated in marketing, dictate their laws. The prices to the producer are equal, and sometimes inferior to that of the world market.

1998 saw the development of a phenomenon that we have not known for many years: the disconnection between the French and the world market.

This was due to several reasons:

1. A poor harvest in France (good in the North East, very poor elsewhere)

Due to:

Poor weather, especially in the mountains,
Health problems, Varroa in particular,
In the arable areas, a consecutive loss of harvesting bees to the use of phytosanitary products. The phenomenon is not new. There was a comparable crisis at the beginning of the '80's with the introduction of the first artificial Pyrethroids. Every year there are "accidents"? but simply today, the pressure is becoming intolerable with, in certain areas, losses of harvest that may reach 80%.
Also, an ageing of the Beekeeping population. This is maybe the most worrying phenomenon. After the fall in the market in 1986, following the arrival of the Chinese onto the market, nobody is starting out in Beekeeping. Today, 90% of French Beekeepers are over 45 years old. Every year, the older ones cease activity without replacement by younger beekeepers, and we well understand why they don't take the risk to start.

2. Problems linked to the falsification of certain imported honeys.

For a year now, supermarkets, the media, consumer associations, and, of course the fraud offices have been aware of the problem of adulterated honey. This information, still insufficient, has created a climate of legitimate suspicion on low priced imported honeys, and a growing interest for quality French production. With regard to this, one can thank the DGCCRF, who by their controls, ensure a salutary pressure. This work to protect the consumer contributes to the maintenance of quality, healthy competition, and hence, a support to the market..

Certain enlightened individuals involved in supermarket distribution, alas not all, are becoming a little more attentive. It is evenso still far from sufficient. The question that still needs to be answered is: by which method are we able to convince all concerned with supermarket supply to practice the principle of maximum precaution. Is it a dream to ask them, at least in France, to impose on their suppliers a quality control that enables the guarantee 100% that the DGCCRF will no longer find adulterated honey on the shelves??: (recall that, in the targeted investigations over the last two years, more than 10% of the samples taken from shops showed using current analytical techniques results that indicated falsification.)

All these reasons mean that, today, French honey in bulk, attracts the highest prices for honey originating in the European Community.

It is the first time for 15 years that there is such a disparity of prices in Europe. The northern countries have massively increased their importations of Chinese honey.

Looking at Germany, it has reduced considerably its purchases from southern European areas: Greece, Italy, Spain, Portugal, and especially France…In 1998, for the first time for many years, there has practically been no bargaining for exportable French honey at world prices. Essentially in bulk, French honey has been sold in France.

This situation is very fragile.

If the urge of conscience that is now taking place in France does not spread to the rest of Europe,
If the Offices of Control in each country, does not confront the problem in the same efficient and energetic way as the DGCCRF,
If as well one has the "bad luck" of a good harvest,

one risks finding during the next season prices that will have fallen by 20 to 40%. In the state that it is, convalescent Beekeeping will certainly not recover.

It is for this reason that we are resolutely mobilised in regard to our four motions (see annexes):

The transfer of the DG III to the DG VI, to give to the product its agricultural production status,
The turning back of counterfeit at the point of entry into the E.U., that is to say at Customs clearance,
The reinforcement and not the "simplification" of the regulations. Even though at the present time counterfeiting is illegal, it exists all the same. If tomorrow it is rendered legal, nothing will stop it
A sanction against fraud sufficiently dissuasive, and, in all cases, at least a minimum equivalent to the profits made from the fraudulent action.

Notes to consult on the Internet for more complete information on the subject:

The scandal of honey falsification. 44 pages and photos. www.apiculture.com/spmf

(1). At the date of 20.02.99, all the markets in $ mentioned have fallen by 15% approx.

MOTIONS ADOPTED DURING PLEANARY SEANCE OF THE SPMF GENERAL ASSEMBLY. MEJANNES LE CLAP (FRANCE) 3RD.FEBUARY 1999.

MOTION No. 1

The General Assembly of the SYNDICAT DES PRODUCTEURS DE MIEL DEFRANCE,

(SPMF) together in plenary seance on the 3rd. February 1999 in MEJANNES LE CLAP

Consider the danger to honey, that is, one day the term may have its meaning changed and may come to mean any type of substitute:

Take the resolution enabling, within the European Community, honey and relevant regulations come under the competence of the DG VI (Office of Agriculture), instead of the DG III, (Office of General Industries),
Affirm with force that it is inconceivable that honey, an excellent natural food, produced by bees from nectar and honeydews secreted by plants, will not in the future be considered as a product resulting from an agricultural activity.
That such a situation has authorised practices such as honey adulteration by addition of industrial sugar syrups and has justified technical procedures such as ultra-filtration - which have no justification except to mask falsification.

Abstentions, 0
Votes against, 0
Motion carried unanimously.
SPMF. FEBRUARY 1999.

MOTION No. 2

The General Assembly of the SYNDICAT DES PRODUCTEURS DE MIEL DEFRANCE,

(SPMF) together in plenary seance on the 3rd. February 1999 in MEJANNES LE CLAP

after having note and studied,

The conditions of competition and generalised fraud in the world honey market,
The alarming results of the last enquiry carried out by the DGCCRF. into supermarket supply, showing that more than 10% of the samples of imported honey taken from supermarket shelves when analytically tested according to the AOAC methods were falsified,

CONSIDER THAT ADULTERATED HONEY MUST NO LONGER PASS THE FRONTIER.

To make that possible an inter-ministerial unit of control with a protocol such as that put in place for B.S.E.( "The Mad Cow disease"). Bringing together in association,

Custom and Excise,
General Office for Competition in consumer products and the Repression of Fraud.
Ministry of Agriculture, (veterinary services, General Food Committee).

At the same time as Customs clearance, there should be verification of the imported merchandise arriving under the name of "honey" to prove that it has not been adulterated by exogenic sugars.

To ensure that adulterated honey is not mixed at a later date with true honey enabling it to "pass" below the threshold of the analytical methods actually in place,

This control unit should have the power to return the merchandise back to its point of departure.

CONSIDER THAT THERE IS A NEED FOR AN EXTENSION IN THE SYSTEM OF CONTROL AT EUROPEAN LEVEL.

Without this, once present in any country of the E.U., the adulterated honey is free to circulate throughout without any possible protection for the consumer.

One market, one control.

Abstentions, 0
Votes against, 0
Motion carried unanimously.
SPMF. FEBRUARY 1999.

MOTION No. 3

The General Assembly of the SYNDICAT DES PRODUCTEURS DE MIEL DEFRANCE,

(SPMF) together in plenary seance on the 3rd. February 1999 in MEJANNES LE CLAP

After having taken into account that, even though the regulations clearly forbid the counterfeiting of honey, more and more low priced honey circulate that have been "stretched" with the aid of Industrial sugar syrups,

CONSIDER THAT THE EXISTING LAW MUST BE MAINTAINED AND RENFORCED.

Under cover of "simplification", two procedures are being discussed to modify World law,(CODEX) and European( Directive E.U. 74/409)regulation. The authorities in Brussels have their backs against the wall.

If one continues to prevaricate, the result will be a regulation that allows for the sale of false honey.

Therefore a political decision has to be taken: there must be no "simplification", instead reinforce the existing regulations.

Abstentions, 0
Votes against, 0
Motion carried unanimously.
SPMF. FEBRUARY 1999.

MOTION No. 4

The General Assembly of the SYNDICAT DES PRODUCTEURS DE MIEL DEFRANCE,

(SPMF) together in plenary seance on the 3rd. February 1999 in MEJANNES LE CLAP

after having note and studied,

The conditions of competition and the generalised fraud in the world honey market,
The alarming results of the last enquiry carried out by the DGCCRF. into supermarket supply, showed that more than 10% of the samples of imported honey taken from supermarket shelves when analytically tested according to the AOAC methods were falsified,
The court cases and their results to the present day relating to this type of affair,

CONSIDER THAT FRAUD SHOULD BE PUNISHED.

At the present, the courts are badly informed of the social and economic consequences resulting from this type of cheating…

Frequently the operators found guilty have been given fines inferior to the profits made. Sometimes the case isn't even followed up.

The Minister of Justice needs to send a circular to the courts, so that the state prosecutors are informed of the social and economic consequences associated with counterfeiting in the honey market.

Abstentions, 0
Votes against, 0
Motion carried unanimously.
SPMF. FEBRUARY 1999.

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