There was bombshell news from the world of honey two weeks ago, and somehow we missed it. Two big honey packers, including one of the largest in the country — Groeb Farms of Onsted, Mich. — admitted buying millions of dollars worth of honey that was falsely labeled.
The goal of this mislabeling, which has been long suspected in the honey industry, was to acquire cheap honey from China. Chinese honey is subject to steep “anti-dumping” duties that the U.S. imposed back in 2008, after U.S. honey producers complained that Chinese exporters were selling their honey at artificially low prices.
Chinese exporters, however, began sending their honey to middlemen in countries like Indonesia and Vietnam, who then re-labeled it as local product and sent it on to the U.S.
Altogether, the seven defendants allegedly avoided antidumping duties totaling more than $180 million.
… with Honey Holding agreeing to pay a $1 million fine and Groeb Farms agreeing to the payment of a $2 million fine.
Sounds like a nice return on investment!