I am a little surprised that the 'news' about Sioux Bee and the Argentina
coop has received so much attention, as this ground was extensively covered
on this list about 3 years ago.

At some point Sioux Bee decided that they were going to lose significant
market share if they did not join the crowd and buy cheap honey from
Argentina and China to blend with their more expensive honey from the US.
Under our crazy labeling regulations they then changed their label to read
(approximately) 'this honey may be from US, Canadian, Argentina or Chinese
sources'.

Their logic was that they best served their members by maintaining or
increasing market share, and the only way they could do that was to insure
that their costs of honey were not higher than those of their competitors.
I don't have to tell you that this led to producer/packers in Buffalo New
York losing market share to Sioux Honey (with their all-american
image)...but on the other hand for several years the members of Sioux Bee
received 20%+ more for their honey than if they had to sell it on the open
market to those such as Dutch Gold.  All of this was extensively discussed
on this list.  Much of the material I obtained from a Board member of Sioux
Bee.

It would appear that the only thing that has happened 'now' is that Sioux
Bee has taken steps to assure themselves of a source of inexpensive honey
for the future.  If China is unable to straighten out their problems, or
divert enough of their honey to Thailand, Vietnam, Philippines, etc. for
re-shipment, Sioux Bee will still have a source of inexpensive honey to
'blend'.

My reading is that Sioux Bee would like our crazy labeling regulations to be
changed so that they could have two 'brands'.  One All-American that they
could sell for a 'premium' price, and another labeled as from 'foreign'
sources.  However, the major food companies are totally against this, as are
the grocery chains, etc.  Until it happens, Sioux Bee is going to protect
their market share by joining the crowd.

Lloyd
Lloyd Spear, Owner of Ross Rounds, manufacturer of comb honey equipment
for beekeepers and Sundance pollen traps.
http://www.rossrounds.com
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