National Honey Board Annual Reportand recognition on the Honey Board’s blog, Straight from the Hive. BlogHer Conference | To enter the social media/ blogger realm of marketing, the

2010

National Honey BoardAnnual Report

Contents

Chairman’s letter 3

Board Members 4

Marketing Report 5

General Consumer Public Relations 6

Hispanic Public Relations 7

Sports Marketing Public Relations 7

Foodservice Public Relations 8

Ingredient/Baking Public Relations 9

In House Public Relations 10

Research Report

Production Research 11

Other Research 13

Emerging Opportunities 14

Treasurer’s Report 15

3NATIONAL HONEY BOARD ANNUAL REPORT 2010 BACK TO CONTENTS

Chairman’s LetterIt’s been an eventful year for the honey industry, as well as for the National

Honey Board. Honey has been a hot topic in the news with stories ranging

from the honey laundering to honey purity issues. Now more than ever,

there is a great need to promote honey and all of its natural benefits at

both the retail and industrial levels, especially with higher honey prices in

the marketplace.

The National Honey Board and staff have done a great job generating

positive coverage of honey this year. Bruce Boynton, CEO, has provided

strong leadership to our team during this critical time in our industry. We

continued our marketing and public relations efforts to find new ways to

promote the usage of honey through partnerships with public relations agencies

specializing in consumer, Hispanic, ingredient, foodservice, and sports marketing

communications.

Through the transition from a Producer/Importer board to a Packer/Importer board,

we have been able to implement some valuable efficiencies, which allow for more of

our budget to be put to work promoting honey. By utilizing conference calls, we have

been able to reduce our annual meetings from three meetings to two meetings per

year, creating a significant savings in our travel and meeting expenses. We have also

streamlined our Board nomination process for additional savings to our budget.

The National Honey Board commits five percent of its anticipated assessment

revenues to fund bee research, and we are excited to continue to learn more about

current issues facing the beekeeping industry. Additional funds have been designated

toward a testing program to verify the purity of honey in the marketplace.

I would like to thank the current and past Board members, along with the alternates

and staff, for their continued commitment to our industry. Their input and support are

vital to the success of this board. It’s been a pleasure serving as your Chairman.

Thank you,

Buddy Ashurst

National Honey Board Chairman

NATIONAL HONEY BOARD ANNUAL REPORT 2010 BACK TO CONTENTS 4

2010 National Honey Board Members & Alternates

FIRST HANDLERS: BOARD MEMBERS ALTERNATE MEMBERS

Buddy Ashurst, Chairman Ilene Miller

Nancy J. Gamber-Olcott, Jim Phillips

Secretary-Treasurer Brent Barkman

Steven Smith

IMPORTERS: BOARD MEMBERS ALTERNATE MEMBERS

Bob Coyle Elise Gagnon

Charles Kocot Gregory Olsen

HANDLER/IMPORTER: BOARD MEMBER ALTERNATE MEMBER

Hans J. Boedeker Nicholas Sargeantson

MARKETING COOPERATIVE:BOARD MEMBER ALTERNATE MEMBER

Mark Mammen Robert Brandi

PRODUCERS: BOARD MEMBERS ALTERNATE MEMBERS

Zac Browning David Ellingson

Clint Walker III, Vice Chairman Mark Brady

George Hansen Bonnie Woodworth


National Honey Board Annual Marketing ReportThe National Honey Board (NHB) is dedicated to

creating promotion and advertising programs that are

designed to increase demand for honey and honey

products. The organization reaches out to consumers,

both English-speaking and Hispanic, the foodservice

industry, food manufacturers, retail and wholesale

bakers, fitness professionals, the athletic community

and nutritionists. With such a diverse group of target

audiences, the challenge lies in finding appropriate

tactics that effectively reach each segment.

To better understand the ever-evolving needs

and tastes of its audiences, the NHB conducts

market research geared toward finding the diverse

perceptions of honey and how they’re using it. Based

on this information, the NHB positions itself as the

go-to resource for all things honey, identifying trends

in which honey can fit and creating various websites

and resources for all target audiences to easily find

the information on which they come to rely.

The NHB’s marketing program strives to strengthen

and enhance the image of honey. In 2010, marketing

efforts focused on generating widespread awareness

of honey and its many uses and benefits, with special

attention given to how consumers and other targets

perceive honey and interpret marketing messages.

Through NHB’s market research and trend tracking,

the Board identified ways to emphasize how honey

fits into its audiences’ demands and the movement

toward more natural foods.

For consumers, it was about renewing an emotional

connection with honey. NHB used the iconic honey

bear as a face for the program to convey a sense

of nostalgia and family and as a reminder to pull it

off of the pantry shelf and onto the kitchen table.

For foodservice professionals, bakers and food

manufacturers, it was about getting honey back on

the menu through the appeal of honey’s functionality

and simplicity, keeping in line with the clean label

trend and sustainable or regional ingredients their

customers are demanding. For fitness professionals

and nutritionists, NHB wanted to emphasize honey’s

purity as an ingredient or sweetener and natural

energy booster.

Consumer and trade programs promoted honey

in and out of the kitchen as an all-natural, flavor-

enhancing, one-ingredient sweetener, as an energy

booster, as a skin moisturizer and as a cough

suppressant and throat soother. With elements like

recipe promotions, chef events, intensive media

outreach, sports marketing events and more,

NHB made a name for honey’s versatility through

increased publicity that showcased

honey’s marketability and

popularity in products and

promotions.


GENERAL CONSUMER PUBLIC RELATIONS $765,932

Highlights of 2010 Marketing Programs

Endangered Honey Bear Campaign | This campaign

was a major PR effort in 2010 and was launched

in the first half of 2010 to raise awareness about

imitation honey. It was designed to help consumers

understand the importance and value of checking the

label of the honey they purchase to make sure that

“honey” is the only ingredient listed. The campaign

also featured honey as the forgotten item on the

pantry shelf, highlighting it as a versatile ingredient

with many benefits including culinary applications,

as a skin moisturizer, as an energy booster and as a

throat soother.

Test Kitchen Seminars | The National Honey Board

gave a presentation at Meredith Publications,

headquartered in Des Moines and home to Better

Homes & Gardens, Midwest Living and Living the

Country Life, among others. Chef and beekeeper

Laurey Masterton served as a spokesperson and

served recipes to the editors who attended the event.

Test kitchen seminars help generate interest and story

ideas for these long-lead publications.

Editor Deskside Visits | The NHB participated

in editor deskside visits in New York City with

editors from six women’s publications. Staff and

spokeswoman Mitzi Dulan met with 16 editors, all of

whom received endangered honey bear media kits.

News Bureau | Ongoing media outreach, with a

variety seasonal, holiday, and food trend themes and

recipe releases, was conducted to generate honey

publicity.

Cooking with My Honey Bear Recipe Contest | The

NHB hosted an online recipe contest to generate

traditional and social media attention for honey

recipes. Winners received a Le Creuset cookware set

and recognition on the Honey Board’s blog, Straight

from the Hive.

BlogHer Conference | To enter the social media/

blogger realm of marketing, the NHB exhibited at

the 6th annual BlogHer conference in New York City.

Staff connected with bloggers yearning for new

topics like honey and its versatility, and provided

them with honey information and materials. The

conference boasted about 2,400 attendees and more

than 600 of those visited the NHB booth. It gave

the NHB a chance to establish relationships with key

influencers in this genre that otherwise would not

have happened.

*Media coverage for General Consumer PR included

print, online, TV, radio and direct to consumer, for a

total of 126,312,400 impressions.


HISPANIC PUBLIC RELATIONS $374,605

SPORTS MARKETING PR (Minor League Baseball) $249,975

Natural Soother Promotion | This campaign

emphasized the use of honey and honey-based

recipes to ease the discomforting symptoms of

the cold and flu season such as a sore throat.

Vocal coach, composer, and five time Grammy

award winning producer Kenny O’Brien acted as a

spokesperson, participating in media tours in New

York City and San Diego.

Purity Promotion | This promotion was a

comprehensive educational program to help raise

awareness and educate consumers about imitation

honey. The goal was to help consumers understand

the importance and value of checking the label of the

honey they purchase to make sure that “honey” is the

only ingredient. Mayte Prida, a television/radio host,

author and speaker was enlisted as a spokesperson.

The promotion included a media tour in New York

and Miami, an apiary media event in Los Angeles, a

public service announcement, Webisodes, a “how

honey is made” video, an audio news release and a

radio media tour.

This year (2010) marked the third annual NHB

partnership with Minor League Baseball that is

intended to expand awareness of honey and

communicate its positive attributes. The five teams

selected this year included the Columbus Clippers,

Iowa Cubs, Nashville Sounds, New Britain Rockcats

Ongoing Media Outreach | Chef John Sedlar was

enlisted to develop new honey-based tapas, or

appetizers or snack foods in Spanish cuisine. New

recipes and photography, along with previously

developed cocktail recipes, were used to generate

interest with media during the summer season.

*Media coverage for Hispanic PR included print,

online, TV, radio and direct to consumer, for a total of

176,600,000 impressions.

and the Norfolk Tides. Promotions included honey

as the “official natural energy booster” of the teams,

stadium signage, nightly in-stadium honey trivia

fan contests, broadcast radio announcement of the

“Pure energy play of the game,” team website banner

ads, honey on the team training tables, and a honey

purchase incentive promotion. Four out

of the five regions showed a 12 percent

or more increase in honey units sold

during the promotion period compared

to the previous year.

*Media coverage for Sports Marketing

PR included online, radio and direct to

consumer, for a total of 1,513,400,000

impressions.



FOODSERVICE PUBLIC RELATIONS $207,588

News Bureau | NHB worked with targeted

foodservice media and social media influencers

to identify opportunities to promote honey. NHB

provided information and press releases on the Honey

Locator, honey varietals and the new foodservice

poster, as well as pitched and placed recipes and

photography. Recipe and/or editorial placements

were secured in the following publications:

• RestaurantBusiness

• Flavor&theMenu

• CateringMagazine

• FoodManagement

Hot from the Hive | In 2010, NHB created this brand

new e-newsletter for foodservice professionals that

details news and information about honey. NHB sent

out two issues in 2010, the first

in August and the second in

November. The issues covered

topics such as honey as a top

trend for 2010 and 2011, survey

information and results, winter

recipes, poster availability,

honey varietals and honey

purity messaging. Through the

newsletter format and contacts,

NHB sent out two additional

e-blasts. The first covered

National Honey Month and the

second discussed the release of

the new foodservice poster.

The Honey IQ Survey | This

survey was initiated among foodservice professionals

to measure their knowledge about honey’s purity,

sustainability, taste, versatility, cost/value, etc. More

than 600 professionals participated in the survey,

which provided a solid platform to dispel myths and

educate chefs, purchasers, distributors, foodservice

media, key influencers and foodservice professionals

about the benefits of using honey in culinary

applications. The results of this survey offered broad-

ranging content to help shape NHB foodservice

programming and support NHB messaging and

outreach opportunities.

Sweetening the Pot with Honey Poster | The

NHB created a poster geared toward foodservice

professionals that showcases honey’s versatility

in culinary applications. The poster serves as an

educational piece, detailing honey’s use in all menu

parts (appetizer, entrée, beverage, dessert, etc.) and

honey’s role in a seasonal menu, and gives numerous

honey tips and ideas. NHB printed 2,000 copies that

will be handed out at tradeshows and will be available

for free (in limited quantities) upon request.

Recipe Development/

Photography | The NHB worked

with Chef Todd Downs to

develop seven new foodservice

recipes that align with today’s

top food trends. The recipes

were photographed late in 2010

and are made available to the

foodservice media to generate

interest and honey placements.

International Foodservice

Editorial Council (IFEC) | IFEC is

an annual conference for

foodservice media that provides

an unmatched opportunity to

connect with key media and influencers and secure

priority placement in many of the top foodservice

publications. The conference allows attendees to

conduct one-on-one meetings with editors to pitch

story ideas, recipes, photos and other information

that fits the needs of editors’ editorial calendars. NHB

attended the conference November 7-11, 2010, in New

Orleans, Louisiana, and hosted an action station

during an editor break, providing a honey tasting,

honey refreshments developed by a chef and honey

marketing materials.



FOODSERVICE PUBLIC RELATIONS (cont’d)

There was also an opportunity for conference

attendees to sign up for Hot from the Hive during the

action station break. NHB staff participated in editor

desk-side meetings and included a water bottle, lip

balm, honey sticks and a brochure in each of the 225

attendee gift bags (225 of each item).

Catersource | The NHB participated in the 2010

Catersource tradeshow, held March 9-10 in Las

Vegas, as a co-sponsor with Chilean Fresh Fruit. The


sponsorship included a 10-foot booth, a 30-minute

chef demonstration with chef and caterer Laurey

Masterton, and three prominent ad placements

throughout the Catersource Magazine platform (print

and online).

*Media coverage for Foodservice PR included print,

online and direct to consumer, for a total of 507,943

impressions.

INGREDIENT/BAKING PUBLIC RELATIONS $179,916

Media Outreach | The NHB worked with editors

throughout the year to secure favorable mentions of

honey in the baking, snack, candy and dairy markets.

Both print and online placements were earned with

several industry trade publications. NHB secured

placements in the following ingredient and baking

trade publications:

• SnackFood&WholesaleBakery

• Baking&Snack

• SnackWorld

• ModernBaking

• FunctionalIngredients

• FoodProcessing

• BakingBuyer

• BakingManagement

Advertising | NHB used an ad that was created in

2009 for the Baking with Honey campaign and

advertised in the following ingredient and baking

trade publications during 2010:

• SnackFood&WholesaleBakery

• Baking&Snack

• SnackWorld

• ModernBaking

• PreparedFoods

• FoodProcessing

New Market-Specific Websites | The NHB launched

market-specific websites geared to inspire and

encourage more honey usage in the baking, snack,

candy and dairy industries. Each site features new

products in that particular category that use honey as

an ingredient, and provides formulas with honey and

information on honey’s properties and versatility. To

better target food manufacturers and gain attention

through online advertising, www.MadeWithHoney.

com was created, which brings users to a web page

with four site options and allows them to easily

toggle among the sites: www.BakingWithHoney.com;

www.SnackingWithHoney.com; www.DairyWithHoney.

com; www.CandyWithHoney.com.

Trade Shows | The NHB attended and exhibited at

the International Baking Industry Exposition (IBIE) in

Las Vegas in September. The triennial tradeshow is

the largest and most predominant tradeshow in the

baking and snack industries, with more than 20,000

attendees and 700 exhibitors. NHB handed out the

Baking Resource Guide and honey substitution

charts, as well as answered questions about honey

from attendees and networked with ingredient trade

magazine editors, food manufacturers and bakers.

NHB also exhibited at SNAXPO 2010 in Fort Worth,

Texas, in March.


Snack Ideas with Honey

Brochure | A 12-page, full-color

brochure that details honey’s use

in the snack food segment was

developed in late 2010. It offers

multiple ideas on how snack food

manufacturers can incorporate

honey into an assortment of

products. The brochure will be

disseminated at trade shows and

by request in 2011.

Honey Resource Binder |

Created in late 2010, this

resource binder is geared mainly

toward the wholesale baking industry to serve as a

helpful tool when creating new products with honey.

Included in the binder are new

wholesale formulations, two retail

formulations, honey substitution

chart, research on the

foodservice industry honey

usage and highlights from

consumer research studies that

detail perceptions of honey in

baked goods. It will be available

upon request to interested retail

and wholesale bakers and at the

All Things Baking Show in 2011.

*Media coverage for Ingredient/

Baking PR included print, online

and direct to consumer, for a total of 1,866,355

impressions.

INGREDIENT/BAKING PUBLIC RELATIONS (cont’d)


IN HOUSE PUBLIC RELATIONS $112,038

Many activities are implemented and managed solely

by NHB staff, without agency involvement or costs.

These activities may crossover into some of the

above areas, but they are managed internally and

referred to as “In House” programs.

Colorado Crossroads Volleyball National Qualifier |

This was the NHB’s second year of exhibiting at the

nation’s second largest indoor volleyball event. The

tournament, held in Denver over two back-to-back

weekends in late February and early March, is for

athletes between the ages of 12 and 18. The NHB

reached out to young athletes and their families with

information about honey’s ability to be an all-natural

energy booster.

Trade Shows and Conferences | The NHB promoted

honey at several trade shows and conferences

including: The American Dietetic Association’s Food

& Nutrition Conference and Expo, the International

Association of Culinary Professionals Annual

Conference, and the IDEA World Fitness Convention.

Social Media | January 2010 marked the launch of the

National Honey Board’s social media platform,

complete with a Facebook page, Twitter profile, You

Tube channel and a blog. In its first year, the NHB’s

pages have generated more than 2,600 Facebook

fans, 660 Twitter followers, as well as positive

feedback from consumers on the content and posting

on YouTube and the blog. All of the social media

platforms were created and managed by NHB staff.

New Materials | Honey… Pure Energy – a new

brochure; A Sweet Story: The Making of Honey –

redesigned brochure for kids Popup booth displays

for specific messaging (energy, purity); Promotional

items for tradeshows.

*Media coverage for In-house PR included print,

online and direct to consumer, for a total of 76,190

impressions.

PRODUCTION RESEARCH $115,995

Project PR2010-01 | A Long-Term Plan to Improve Honey Bee Genetics ($10,000) $5,000

Dr. Marla Spivak, University of Minnesota

Abstract: This project will support the formation of a tech transfer team to assist bee

breeders with stock selection for disease and mite resistance. The project has the potential

to improve bee genetics and help the beekeeping industry nationwide in the long term.

Project PR2010-02 | Dealing with Nosema ceranae –

Infection Cycles and Treatment Needs and Approaches ($27,117) $6,779

Dr. Richard Fell, Brenna Traver, Virginia Polytechnic Institute and State University

Abstract: In an effort to better understand the transmission and annual cycle of N. ceranae,

researchers plan to monitor the infection cycle of N. ceranae in 10 hives over a twelve-month

period to learn more about the disease and its impacts on colonies during different seasons. The

data collected in this study will provide a better understanding of the seasonal cycle of nosema

infections and provide a base for the development of more effective control procedures.

Project PR2010-03 | The Costs of Following the Bloom ($47,520) $23,760

Drs. Mark J. Carroll, Diana Sammataro, and Gloria DeGrandi-Hoffmann

USDA-ARS, Carl Hayden Bee Research Center, Tucson, AZ

Abstract: Honey bee colonies in migratory beekeeping operations encounter multiple

forms of stress unique to large-scale crop pollination (National Research Council, 2007).

This project will track changes in nutrient processing and colony microbes (both beneficial

and pathogenic) over a full pollination season to assess the impact of forage nutrition

and microbial communities on colony performance in a migratory beekeeping operation.

The researchers intend to use their understanding of nutritional and microbial stresses in

migratory colonies to develop practical solutions that promote favorable nutritional and

microbial conditions within the colony. Findings could then be converted into management

recommendations and products that will be made widely available to migratory beekeepers.

Project PR2010-04 | 2010 International Conference on Pollinator Biology, Health and Policy $10,000

Penn State University’s Center for Pollinator Research

Abstract: This grant supported the July, 2010 Conference.

ResearchFor the National Honey Board, “research” means any type of test,

study, or analysis designed to advance the image, desirability, use,

marketability, production, product development, or quality of honey

and honey products. It includes scientific research, as well as market

research. Most of our scientific research includes studies to improve our

knowledge of the composition, functional properties and health-related

applications of honey, or product development to find new uses for honey.


Project PR2009-08 | Improving Colony Productivity

and Health by Improving Forager Longevity ($28,050) $14,025

Michelle Elekonich and Charles Milne, University of Nevada, Las Vegas

Abstract: The goals of this project are 1) to investigate the physiological and molecular genetic

bases of colony level differences in worker longevity; 2) connect differences in longevity to

differences in colony productivity; 3) to develop a robust measure of worker longevity that

can be incorporated into breeding programs to develop lines of bees with longer lived workers

resulting in increased colony health, pollination and honey production.

Project PR2009-02 | Quantification of the sub-lethal

effect of various crop pollens on Honey Bee Health ($35,305) $17,653

Dennis vanEngelsdorp, Pennsylvania State University

Abstract: The objective of this study is to collect and analyze samples of bee-collected pollen

for pesticides on a number of different crops that are important to beekeepers such as citrus,

almonds, apples, blueberries, alfalfa, etc. Both pollen collected from the incoming foragers

returning to the hive and pollen made into beebread by the bees will be analyzed. The sub-

lethal effect of these pollens will then be determined by performing longevity studies on adult

bees fed on the collected pollen. Half of all bees will be fed a solution containing Nosema

spores in order to determine if any immune system suppression occurs in these bees.

Project PR2009-04 | Determining if varroa mites (Varroa destructor)and pesticides

interact synergistically to harm developing honey bees (Apis mellifera) ($48,106) $24,053

Jamie Ellis, Mike Scharf, University of Florida

Abstract: The objective of this project is to determine if pesticides and varroa mites interact

synergistically to affect immature honey bees negatively. The long term goal is to use this

information to improve colony health.

Project PR2009-05 | Benefits of Propolis to Honey Bees:

Does Propolis Reduce Levels of Viruses in Larvae? ($29,450) $14,725

Marla Spivak, University of Minnesota

Abstract: The objective of this study is to measure the efficacy of propolis against common

bee viruses, including Israeli Acute Paralysis (IAPV),Deformed Wing Virus (DWV), and Chronic

Bee Paralysis Virus (CBPV).

PRODUCTION RESEARCH (cont’d)

Research


Research

OTHER RESEARCH $87,915

The Value of Honey Bees to U.S. Agriculture – The Value of Honey Bees as

Pollinators of U.S. Crops (Total: $11,000) $5,500

Dr. Nicholas Calderone, Cornell University

This project was started in 2009 and continued into 2010.

Abstract: This project is intended to be a revision and update to the 2000 study

(Morse, R.A. and Calderone, N.W.).

Honey & Beauty Research $28,499

The purpose of this project was to evaluate honey’s benefits to the moisturization and

firmness of human skin. Honey’s affect on hair is also being studied. Positive results as a skin

moisturizer added support to additional messages to consumers about honey’s benefits.

Analysis of Baking Application $15,200

American Institute of Baking

A study of honey’s functional characteristics in a baking application.

Carbon Footprint of U.S. Honey Production and Packing $21,954

University of California, Davis

Summary: The goal of this project was to establish a life cycle inventory for U.S. honey

production and processing, and to estimate the greenhouse gas emissions (GHG) associated

with honey production activities. Greenhouse gas emissions were calculated for honey

production and processing based on a limited survey sample. Researchers were not able

to conclude whether honey performs better or worse from a life cycle GHG emissions

perspective; however, the range identified in this study falls within or near estimates

of other sweetener’s life cycle GHG emissions.

Survey Research Community for Honey Purity Test $16,762

This year the NHB conducted an extensive survey of the research community to ascertain

the feasibility of developing a test or tests that can identify a product as pure honey, and

can differentiate it from honey pretenders that impact the image and marketability of pure

honey. The goal is to develop a simple, cost effective test that can be used by the honey

industry, honey users and consumers. The result was the selection of two laboratories, one in

the U.S. and one overseas, to begin work on this project in 2011.


ACTIVITIES $33,622

Baking Formulations $19,950

Summary: The American Institute of Baking developed formulas for seven bakery products

containing honey. The formulas were then included in a Resource Guide developed for the

Ingredient/Baking industry and posted on our food ingredient websites.

AIB School of Baking Scholarship $10,000

The Baking Science & Technology course includes a special applications project using honey.

Other $3,672

Agency attendance at a training meeting with AMS.

Emerging OpportunitiesFor unexpected opportunities/needs that may

occur during the year.


Budget Actual Explanatory Comments Cash in bank, beginning of year $ 827,560 $ 827,560

Receipts: Assessments - domestic honey 1,100,000 1,310,444 35% of assessments received

Assessments - imported honey 2,250,000 2,459,213 65% of assessments received

Market Access Program 120,593 120,570 NHB terminated its participation in the MAP

program 12/31/09; amount shown is residual

from 2009 activity.

Merchandise sales 29,900 35,408

Investment income 700 620

Total receipts 3,501,193 3,926,255

Disbursements: Marketing:

General consumer 810,820 765,932

Hispanic consumer 384,543 374,605

Minor League Baseball 250,000 249,975

Food service 222,550 207,588

Baking & ingredient industry 231,146 179,916

In-house public relations programs 125,000 112,038

Export promotion (Market Access Program) 67,136 67,126 Amount is a carryover from 2009 activity.

Other 46,622 45,916

Total marketing disbursements 2,137,817 2,003,096

Research:

Other research 209,472 87,915

Production research - 2010 167,500 59,564 5% of assessments was budgeted & committed;

unspent balance for 2009 & 2010 will be disbursed

in subsequent years as projects are completed.

Production research - 2009 95,614 56,431

Market research & data collection 55,250 30,386

Scientific & technical consulting 20,447 15,472

Other 2,500 1,482

Total research disbursements 550,783 251,250

Industry Services:

Fulfillment material 91,600 76,417

Fulfillment shipping 18,100 17,433

Crisis communication 20,000 11,709

Industry meetings 5,000 3,472

Total industry services disbursements 134,700 109,031

Emerging Opportunities 50,000 33,622

Other:

Personnel 747,500 742,823

Office expenses 91,100 77,660

Facilities expense 97,800 92,899

Professional services 18,500 20,397

Travel 28,100 20,644

Board meetings 67,300 41,528

Federal fees 132,900 141,137

Producer reserve 58,753 58,753

Equipment purchases 13,500 9,257

Total other disbursements 1,255,453 1,205,098

Total disbursements 4,128,753 3,602,097 Incomplete projects from 2010 were carried over

into 2011. The 2011 budget includes $262,300 of

funds committed to completion of these projects.

Cash in bank, end of year $ 200,000 $ 1,151,718 Fully collateralized in accordance with

USDA requirements

CASH SUMMARY 2010

National Honey Board Treasurer’s ReportCALENDAR YEAR 2010 ACTIVITY


To ensure accurate and reliable reporting of the National Honey Board’s financial results, an annual independent

audit is conducted by a certified public accounting firm chosen by the Board. The audit is conducted in

accordance with generally accepted auditing standards and the standards applicable to financial audits

contained in Government Audit Standards, issued by the United States Comptroller General.

The audit of the 2010 financial statements was completed in February 2011 and was presented by the auditor

to the Board at their February meeting. The audit resulted in an unqualified audit opinion, as well as audit

assurance that the Board is in compliance with investment guidelines established by the Agricultural Marketing

Service of the USDA. Copies of the audit report and complete financial statements are available from the

National Honey Board office. Call (800) 553-7162 to request a copy.

The Balance Sheet (Exhibit A) and the Statement of Revenue, Expenses and Changes in Fund Balance (Exhibit

B) from the audited financial statements are included in this report.

To ensure that the members of the National Honey Board are aware of the Board’s most current financial

results, monthly financial reports and budget variance reports are prepared by the Board’s staff. This

information is regulary reviewed by staff project managers and Board members.

Submitted by Nancy Gamber Olcott, Secretary/Treasurer

March 23, 2011_______________________________________________ _______________________

Nancy Gamber Olcott Date



December 31,

2010 2009

AssetsCURRENT ASSETS

Cash on hand and in banks $ 1,152,018 $ 827,860

MAP reimbursements due _ 120,592

Prepaid expenses 16,792 6,652

Fulfillment inventory 56,692 50,689

Deposits on leases 9,489 9,489

Total current assets 1,234,991 1,015,282

PROPERTY AND EQUIPMENT

Computer equipment 10,248 6,996

Office machines and equipment 11,409 5,404

Images portfolio 50,000 50,000

71,657 62,400

Less accumulated depreciation (31,676) (17,578)

Net property and equipment 39,981 44,822

TOTAL ASSETS $ 1,274,972 $ 1,060,104

Liabilites and Fund BalanceCURRENT LIABILITIES

Payroll liabilities $ 10,001 $ 8,497

Total current liabilities 10,001 8,497

COMMITMENTS AND CONTINGENCIES

FUND BALANCE

Unrestricted 1,064,971 792,854

Restricted – producer reserve – 58,753

Restricted – budgetary reserve 200,000 200,000

FUND BALANCE (Exhibit B) 1,264,971 1,051,607

TOTAL LIABILITIES AND FUND BALANCE $ 1,274,972 $ 1,060,104

NATIONAL HONEY BOARD BALANCE SHEET – MODIFIED CASH BASIS

Exhibit A


December 31,

2010 2009

Revenues Assessments $ 3,769,657 $ 3,345,543

Market Access Program revenue – 239,232

Investment income 620 1,366

Other (merchandise sales, donations) 35,408 31,100

Total revenues 3,805,685 3,617,241

Expenses Administrative expenses:

Administrative (Office) 437,981 405,971

Administrative (Board) 41,528 56,938

Administrative (Federal) 141,137 98,391

Total administrative expenses 620,646 561,300

Program expenses:

Advertising, public relations, and research 2,638,403 3,348,718

Industry service and support 232,802 236,857

Emerging opportunities 33,622 9,316

Total program expenses 2,904,827 3,594,891

Provision for depreciation and amortization 14,098 15,241

Write off of prepaid supplies – 5,085

Total expenses 3,539,571 4,176,517

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 266,114 (559,276)

FUND BALANCE, as previously reported – 1,632,245

Prior period adjustment – (2,165)

FUND BALANCE, beginning of year 1,051,607 1,630,080

Refunds charged to reserve – (290)

Charges to producer reserve (58,753) –

Change in inventory included in industry services 6,003 (18,907)

FUND BALANCE, end of year (Exhibit A) $ 1,264,971 $ 1,051,607

NATIONAL HONEY BOARD STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE – MODIFIED CASH BASIS

Exhibit B


Administration & Depreciation $634,744 17.9%

Emerging Opportunities $33,622 0.9%

Industry Services $232,802 6.6%

Research $292,654 8.3%


Marketing & Promotions

$2,345,749 66.3%

RESEARCH

• Developcomprehensiveknowledgeofthecomposition,

functionalpropertiesandhealth-relatedapplications

ofhoney.

• Advancescientificinterestinhoneyresearch

andapplications.

• Conductmarketresearchand/orcollectrelevant

marketingdataand/orconsumptionandtrendsdata.

• Supportthehoneyindustryineffortstomaintain

honeyquality.

• Guidedbymarket-drivenand/orscience-basedresearch,

pursueproductdevelopmentforthepurposeoffinding

orcreatingnewandincreasedusesofhoney.

• Conductresearchdealingwithhoneybeecolony

managementtohelpproducersmaintaincolonyhealth

whileallowingfortheproductionofqualityhoney.

INDUSTRY SERVICES

• Providepracticalmethodsandtoolsthathelphoney

industrymemberscapitalizeonNHBresearchand

promotionalprograms.

• InformandeducatethehoneyindustryaboutNational

HoneyBoardprogramsandactivitiesandchangesinthe

regulatoryenvironmentaffectingthehoneyindustry.

• Fosterindustryrelationshipsanddevelopment.

• Anticipatepotentialthreats,createandimplement

programstoprotecthoney’spure,naturalimage.

MARKETING & PROMOTIONS

• Increaseconsumptionandpurchasefrequency

ofhoneyusingfoodandnon-foodstrategies.

• Increasetheuseofhoneyinfoodservice

operations.

• MaintainandincreaseU.S.honey’smarketshare

inkeyexportmarkets.

• Increasehoney’susageasaningredientwith

food,beverageandnon-foodmanufacturers.

EMERGING OPPORTUNITIES

• Provideaflexiblesourceoffundsforuseat

thediscretionoftheChiefExecutiveOfficer

torespondtoissuesunanticipatedinthe

annualbudgetwhichariseduringthecourse

oftheyear.

ADMINISTRATION & DEPRECIATION

• Officeadministrativepayrolland

payrolloverhead

• Officeadministrativeexpenses

(supplies,postage,insurance,rent

andutilities,financialaudit,legal)

• Boardmeetings

• Federaloversightfees,U.S.Customs

collectionfee,OfficeofGeneralCounselfee.

• Depreciation


BY PROGRAM AREA

(Amounts include indirect costs)

2010 PROGRAM AREAS

11409 Business Park Circle, Ste. 210Firestone, CO 80504

www.honey.com

Documents

National Honey Board Annual Reportand recognition on the Honey Board’s blog, Straight from the Hive. BlogHer Conference | To enter the social media/ blogger realm of marketing, the