WASHINGTON — Significantly higher honey prices are anticipated in the wake of preliminary anti-dumping findings issued in July by the US Department of Commerce. The findings relate to exports of honey into the United States and will prompt significant duties if finalized at proposed levels.
The DOC also imposed retroactive duties that could total an estimated $50 million in additional industry duties on honey imports back to 2022, when anti-dumping duties were first imposed on several companies in the four largest exporting countries. The findings are the latest in a series of actions involving US honey imports that span about a quarter of a century.
The American Honey Producers Association, Bruce, SD, and Sioux Honey Association, Sioux City, Iowa, petitioned the DOC in April 2021, alleging Argentina, Brazil, India, Ukraine and Vietnam were shipping honey to the United States at less-than-fair value that was injurious to US honey producers. The DOC initiated anti-dumping investigations a month later.
Final determinations were issued by the DOC and the International Trade Commission in the spring of 2022, with findings in favor of the US plaintiffs against exporters in Argentina, Brazil, India and Vietnam. The four countries are the largest honey exporters, accounting for about 80% of US honey imports. Ukraine was not included. Anti-dumping duties of 5.52% to 83.72% were imposed on companies from the four countries on June 1, 2022, and are effective for five years, pending other actions.
The recent DOC actions concern preliminary findings from an administrative review of anti-dumping duties on honey exported to the United States from certain companies in the four countries during specific time periods through 2023. Such reviews are common in anti-dumping cases.
The DOC published its preliminary findings concerning certain exporters in Argentina and Vietnam on July 5. Anti-dumping duties on honey imports from Argentina were raised to 58.34% from 16.9% and will equate to price increases of 35¢ to 45¢ per lb of honey, according to one major food manufacturer. Anti-dumping duties on the two largest exporters of honey from Vietnam were raised to 100.54% and 154.47% from 60.03% and will equal price increases of 30¢ to 35¢ per lb, the industry source said.
Reductions were made in anti-dumping rates for honey imported from Brazil and India, but the lower rates will have minimal impact because Brazil primarily supplies higher-cost specialty organic honey and India maintains a minimum export price that keeps its prices above those of Vietnam.
The retroactive portion of the preliminary findings will make the higher anti-dumping rates on Jan. 1, 2025, retroactive to June 1, 2022.
The average price of all grades of domestically produced honey sold through all outlets was $2.52 per lb in 2023, down from $3.01 per lb in 2022, according to the US Department of Agriculture. Prices of imported honey (bulk, duty paid, ex-dock or point of entry) as of July 26 ranged between $1.36 and $1.55 per lb from Argentina, $1.24 and $1.55 from Brazil, 87¢ and $1.40 from India, and 84¢ and $1.22 from Vietnam, according to the USDA’s National Honey Report.
Honey imports accounted for about 80% of total US honey used in 2023, according to USDA data. India has been the major exporter of honey to the United States since 2021, accounting for 39% of total imports in 2023, followed by Argentina (23%), Brazil (11%) and Vietnam (6%), with about 70 other countries making up the remaining 21%.
The United States used an estimated 550 million lbs of honey in 2023, according to the USDA. Although dwarfed by sugar and corn sweeteners (12.3 billion lbs and 6.6 billion lbs, respectively), honey is the next largest caloric sweetener consumed and is valued as a natural sweetener, among other reasons. Most imported honey goes to industrial users (food manufacturers) because of its lower price point relative to domestically produced honey.
US honey production has declined sharply over the past two decades, in part because of lower-priced imports, according to US honey producers. Domestic honey production in 2023 was estimated at 139 million lbs (69,500 tons), down nearly 40% from 2000. Imports during that time increased by 120%, reaching 439 million lbs (219,500 tons) in 2023.
At 550 million lbs, domestic use of honey in 2023 was up 37% from 2000, peaking in 2021 at 618 million lbs (309,000 tons). The increase in the amount of honey used domestically relied on increases in imports because domestic production has declined steadily since the 1990s.
US honey imports have been a point of contention for decades. Issues have included “honey laundering,” when honey from a restricted country (often China) is first exported to a third country, thus showing the third country as the origin, and “economically motivated adulteration,” when honey is diluted with liquid sugar or corn sweeteners and isn’t 100% pure honey, even if sometimes labeled as such.