DENVER—Rocky Mountain Farmers Union (RMFU) is very pleased with the U.S. Department of Commerce’s preliminary determination announced earlier this week on honey imports from Argentina and the People’s Republic of China. The preliminary determination acknowledges that these countries have been selling honey in the U.S. market at levels below their cost of production. Preliminary anti-dumping fees are 40 percent for China and 56 percent for Argentina.

“This is some of the industry’s best news in a long time,” said Englewood honey producer Paul Hendricks, a member of RMFU and the American Honey Producers Association (AHPA).

According to Lyle Johnston, a Rocky Ford, Colo., beekeeper and AHPA vice president, the Commerce Department action is expected to boost beekeepers’ honey prices by about 25 cents per pound, increasing the price per pound from its current 52 cents to around 77 cents. That is good news, but no windfall for producers who say the break-even price for most commercial honey producers is 65-70 cents per pound.

“This is a sort of David and Goliath victory when a small (producer) industry like ours goes against big processors and wins. It shows what can be accomplished when producers band together,” said Johnston. “Without this victory, the U.S. honey industry would have been decimated.”

Hendricks contends, however, that higher producer prices do not justify price increases at the retail counter. “Retail honey prices have not declined since producer prices plunged, so there is no logic for retailers to raise consumer prices,” Hendricks said.

The U.S. International Trade Commission in a preliminary determination Nov. 13, 2000, ruled that the dumping of Argentine and Chinese honey onto the U.S. market has harmed U.S. honey producers. U.S. honey producers expect the final determinations by both organizations, to be made this summer and fall, to be in their favor.

In addition to strengthening domestic honey prices, due to a trade provision known as the Byrd Amendment, penalty assessments could end up in the pockets of producers.

“The Byrd Amendment is a relatively new trade provision which Farmers Union strongly supported in order to return money to those who were harmed by import dumping,” said RMFU President Dave Carter.

Hendricks does not object to the United States importing honey, as U.S. production is currently around 220 million pounds annually, and demand is 325 million pounds annually. “What we object to is our prices being pushed down by cheaper imports, especially when foreign producers’ costs are lower due to fewer health and safety regulations,” Hendricks said.

Assessments on Chinese and Argentine honey go into effect May 14, 2001 and are retroactive to all honey imported from those countries 90 days prior. Assessments continue for five years.