It seems what is needed is some type of regional coop system.  I had heard
that Sioux Bee pays their members about $.10 more, so contacted them and got
back a letter about needing 40,000 lb  per year minimum contract to join.

There has to bee a lot of "advanced hobbyist" or "small commercial"
beekeepers who have grown past their ability to sell directly retail all
their honey.  I know that between friends, contacts etc I can move 800 -
1000 lbs of honey every year.  If I wanted to do farmers market type things
that would move more honey but would also require a significant time
commitment.  Just don't have the facilities to get the health department
inspections needed to sell into retail stores.  So what do you do with the
next 1000 lbs?  That's where the packers get you.

IMHO

Dave