NHB Restructuring Mooted

LONGMONT - May 23/02 - SNS -- The U.S. based National Honey Board is seeking to change the way it is financed as well as the structure of the board. If achieved, the changes would see the board controlled by companies handling more than 250,000 pounds of honey annually, resulting in a dramatic decrease in the number of entities involved.

The ideas came out of a recent roundtable meeting in Chicago. Roundtable participants discussed parameters for a new honey research and promotion program. Representatives from six major honey industry groups attended including the American Beekeeping Federation, American Honey Producers Association, Mid U.S. Honey Producers, National Honey Packers and Dealers Association, Sioux Honey Association and Western States Packers and Dealers.

The proposed new program would focus on four areas -- quality, protecting the image of honey, research and promotion. The group will implement the new program through legislation enacted in 1996 called the "Generic Statute." This statute allows the USDA to implement research and promotion boards more quickly than might otherwise be possible (such as by amending the National Honey Board legislation).

Under the proposed program, handlers and importers of greater than 250,000 pounds of honey annually would pay the assessment. It is estimated that 95% of current NHB funding levels would be maintained but the number of entities paying assessments would decline to approximately 100.

The proposed new board would be led by nine honey industry members -- four handlers, two importers, one representative of the honey marketing cooperative and two honey producers. Each year, the proposed board would set aside 5% of the budget for production research, to be returned to the general fund if no appropriate work was funded.

Should the proposed program fail in its authorizing referendum, each industry organization agreed to pay a share of the USDA charges (approximately $100,000) that are required to bring the proposed program to referendum.

If the referendum passes, the USDA would be paid from assessments collected by the new Board. Only those subject to paying the assessment (packers and importers) would be eligible to vote in the referendum for the new program. Additional information on the proposal is attached.

"We are pleased that the National Honey Board hosted a forum in which industry leaders devised a program that may meet industry needs," said National Honey Board Chairman Gene Brandi. He notes the four areas of focus for the proposed program are the same as the focus of the current National Honey Board.

For 15 years the mission of the National Honey Board has been "to serve the honey industry by increasing demand for honey and honey products." The structure and operation of the Board, as dictated by the Honey Research, Promotion and Consumer Information Act, has remained generally stable since its inception.