True Source CertifiedNorth American Beekeeping Conference

Galveston Texas January 6, 2011

Presentation Outline

• Overview of True Source Honey• History of True Source Certified• Main Elements of Certification• General Requirements of Certification• Invitation to Participate

Jill Clark – Dutch Gold Honey Tim Burleson – Burlesons Zac Browning – Browning Honey Brent Barkman – Golden Heritage Foods

Overview of True Source HoneyTRUE SOURCE HONEY PLEDGE

We pledge to protect our customers and consumers, as well as the global reputation of honey products, by ensuring to our utmost ability that honey is ethically sourced in a transparent and traceable manner from known beekeepers and brokers; that honey moves through the supply chain in full accordance with U.S. law and without circumvention of trade duties; that it carries truthful labeling as to its source, has been tested to ensure quality, and has been handled in a safe and secure manner from hive to table.

History of True Source Honey• Originally a collaboration of 4 companies.

– Dedicated to Education and Outreach– Sharing a common sourcing philosophy

• Recognized a need to verify claims related to sourcing practices.– Requires independent oversight.– Requires open participation.

• Gave True Source Honey to the Industry– Formed a 7 member governing body.– Relinquished rights to trademark and ownership.

Introduction of True Source Certified

• Background– The True Source Honey Pledge, or any similar claim, carries little

weight without some mechanism to verify the claim – certification is that mechanism.

– Many members of industry already making a claim similar to the Pledge and engaging in independent activities to support that claim.• Requiring specific export documents from country of origin.• Refusing to purchase from suspect countries.• Conducting extensive testing to assure origin and quality.• Requiring proper import documentation.

Introduction of True Source Certified

• Development– Identified a reputable international audit firm.– Identified a Processor/Exporter in India willing to beta test

the program.– Engaged members of industry – Beekeepers, Exporters,

Importers, Packers to develop rules and audit criteria.– Development continues, participants and other interested

stakeholders are encouraged to provide feedback.– Opportunity for industry input in mid February.

Main Elements of Certification

• Use of True Source Certified ID # on Shipments• Document Audit – Traceability System• Product Audit (Sampling and Analysis for Country of Origin)• Purchasing from Approved Countries.

– North America: Canada, Mexico, United States– South/Central America: Argentina, Brazil, Chile, Guatemala,

Uruguay– Europe: Ukraine– Asia: China, India, Vietnam– Other: Australia, New Zealand

Introduction of True Source Certified

Auditor: Issues True Source Certified ID # to Each Load

AUDITORAudits Beekeeper to verify supply

authenticity

AUDITORSamples

TestsSeals

Containers

AUDITORVerifies receipt

of sealed container by

Packer

IMPORTERBEEKEEPER PACKEREXPORTER

AGGREGATOR

Introduction of True Source Certified

• The Role of 3rd Party Auditors– Audit against standards developed by True Source Certified.– Maintain all information gathered during an audit as confidential

between Intertek and their client – the participant.– Make a determination of pass or fail based upon the outcome of the

audit and issue a report of findings to the client.– Communicate to True Source Certified when participants achieve

Certification and are entitled to recognition on the website and eligible to use trademarks.

– Describe ‘Paper Trail’, ‘Product’.– Describe Unique ID Number – ‘Certifying the Honey’ concept.

The Case for Certification• Customers, Consumers and the Media

– Customers looking for an easy way to compare potential suppliers, mitigate risk and avoid bad publicity.

– Consumers value clear declaration about the origins of the foods they eat, a certification program and logo approach is well understood. (Organic, Rainforest Alliance, Fair Trade).

– The media is quick to draw attention to sensational stories and paint entire industries with a broad brush – certification by an independent party can counter negative press.

– Some major US retailers and distributors have already expressed significant interest in the concept of True Source Certified.

The Case for Certification

• Costs– Annual Membership Fee

• Based upon volumes and specific to position in supply chain.• Dedicated to maintenance of website, development and

maintenance of standard.

– Beekeeper Fees• Based on size of operation ie. number of colonies• Different levels for different groups? Need feedback.

General Requirements of Certification• Packer

– Submit an Annual Fee and pre-certification questionnaire.– Maintain import documentation for every load purchased– Participate in and pass a Certification Audit– Purchase from a Certified Processor/Exporter and through a participating Importer.– Submit to random Surveillance Audits to reconcile purchases to sales and sample collection to test

for country of origin.• Importer

-- Note: Importers are not “Certified”, but must be registered participants that assist exporters and packers follow True Source requirements.

• Processor/Exporter– Participate in and pass a Certification Audit.– Submit to Random Surveillance Audits.– Source Honey for processing and export from only the country of operation (no Imports from 3rd

countries for re-export.– Maintain records that can show traceability to suppliers and beekeepers that will be audited.

Beekeeper Certification Requirements

• Good record keeping to show that colony numbers support production.

• Batch coding of drums,(by tank lot, daily production, truck load, etc) will be an essential element.

• Accessibility to facility for audits that may be necessary to assist in Packer certification.

• Dues paid at a level set in proportion to production. (need help to establish this)

• General support for the program with suggestions that could be incorporated to make it better.

Introduction of True Source Certified

• True Source CertifiedTM recognizes the value of continuous improvement.

• Change is both inevitable and encouraged.– Program revisions will take place on a scheduled basis.– Invitation to participate in a seminar in February.

• Open participation results in a more robust system.– As a Board Member, upon certification.– As a participant on an advisory panel.

Invitation to Participate• Provide Feedback (Open Comment Period)

– Right Now– In Person During the Convention– Through e-mail: info@truesourcehoney.com– Mid February during true source industry roundtable

• Commit to Certification– Participation is open to everyone.– Everyone starts at the same place – no company is certified to date.– All information is handled by the 3rd party auditors – no risk of

competitors exposing information to other participants.