U.S. Honey and Sweetener Trade: Imports, Policy & Trends

Overview of U.S. Honey and Sweetener Trade

McConnell's (2015) USDA Economic Research Service report provides a detailed portrayal of the status of honey and honey-derived sweeteners within the United States, and how these products shape trade relationships between the U.S. and other nations. The article presents data on domestic production quantities and import volumes of honey, as well as demand trends and consumption patterns. A central finding is that the U.S. does not have the capacity to meet its domestic demand for honey and therefore relies on imports for approximately two-thirds of its supply.

The article further discusses how this dependence on foreign imports creates economic vulnerability. Factors such as severe rain and hail can negatively affect honey production in supplier nations like Mexico, thereby disrupting U.S. imports. The future of U.S. trade with countries such as Mexico, Argentina, and Vietnam is also examined, with attention to deliberate efforts to maintain existing trade patterns. Agreements such as the U.S. International Trade Commission (USITC) suspension of investigations into the Mexico sugar trade are cited as salient examples of policy intervention.

The article also covers global trends in honey production and consumption. The U.S. emerges as the second largest market for honey produced in the European Union, while China is identified as the world's largest honey producer, followed by the EU. The report closes by discussing how imported honey is used in the United States: the majority goes to the food manufacturing industry, while most domestically produced honey is used for table servings and home use, owing to its higher quality. On the issue of enforcement, the author concludes on an optimistic note, indicating that the fight against illegal importation of substandard honey from China is ongoing, with authorities making significant breakthroughs daily in ensuring that only genuine honey reaches U.S. markets.

New Lessons from the Article

Several significant findings emerged as new knowledge from this article. Regarding production levels, it was notable to learn that an increase in sugarbeet production was expected in 2015 and that global sugar prices were falling sharply, thereby affecting the volume of sugar imported from Mexico. Domestic honey production in the U.S. also reached its highest point in ten years, with Texas and North Dakota accounting for the largest share of domestic production.

Another important piece of new information was the reported increase in bee colonies in the U.S. over recent years. While demand still outpaces supply, this growth signals hope for the future of domestic honey production. It was also significant to learn that imports from China, which had been the largest source of honey imports until 2006, were reduced to near zero following the imposition of an antidumping duty order on Chinese honey. As an alternative, the U.S. turned to Vietnam and Argentina for its honey supplies.

Despite these measures, Chinese honey and related products continue to enter U.S. markets illegally through circumvention and transshipment via third-party countries. The products are relabeled as originating from the transit country and shipped to the U.S. in the hands of unscrupulous middlemen. The gravity of this problem was illustrated in October 2014, when U.S. Customs authorities in Houston, Texas, seized 448,000 pounds of illegal honey valued at $2.45 million — one of many such consignments intercepted on an ongoing basis.

References

McConnell, M. (2015). Sugar and Sweeteners Outlook. Economic Research Service, U.S. Department of Agriculture.