True Source Certified National Honey Packers and Dealers Association Galveston Texas January 6, 2011

1. True Source CertifiedTM National Honey Packers and Dealers Association Galveston Texas January 6, 2011 Elise Gagnon – President, Odem International/Vice Chair, True Source Honey Lauren Brink – Food Services Manager - North American, Intertek Eric Wenger – Director of Quality, Golden Heritage Foods /Chairman, True Source Honey

2. History of True Source Honey Originally the work of 4 companies. Dedicated to Education and Outreach 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 board with limited terms. Relinquished rights to trademark and ownership.

3. What is True Source Certified? A traceability program that involves the entire supply line from beekeepers to packers through the use of a certified audit program. A certified audit program must be administered by a reputable 3rd party audit firm with international expertise.

4. Food Certification Our Organization Industries We Operate In What We Do Consumer Goods Commercial & Electrical Commodities Chemicals & Pharmaceuticals Industry and Assurance Aerospace & Automotive Building Products Chemical Consumer Goods & Retailers Electrical & Electronic Energy Food & Agriculture Government & Institutions IT & Telecom Industrial Medical & Pharmaceutical Petroleum Toys, Games & Hardlines Textile, Apparel & Footwear Testing Inspection Certification Auditing Outsourcing Advisory Quality Assurance

5. The Role of 3rd Party Auditors Audit against True Source Certified standard. Conduct audits of Processor/Exporters and Packers focusing on document and product. Maintain all information gathered during an audit as confidential between Intertek and their client – the participant. Issue a unique product Identification Number. 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.

6. Costs True Source Certified Annual Membership Fee Based upon volumes and specific to position in supply chain. Collected by 3rd Party Audit Firm. Dedicated to maintenance of website, development and maintenance of standard. Intertek Audit Fees Comparable to other food safety and quality audits. Will vary by country.

7. 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.

8. 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

9. Requirements of Certification: Packer Submit an Annual Fee and pre-certification questionnaireto Intertek. Maintain documentation for every load purchased: Certificate of Origin, Authenticity Testing Results, CBP Form 3461, Bill of Lading, Delivery Order, Warehouse Inbound Receipt, Truck Bill of Lading, True Source Honey Identification Number. Participate in and pass a Certification Audit Facility Audit Beekeeper Visits Random Sampling 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.

10. Requirements of Certification: Importer Note: Importers are not audited but must be registered participants that assist exporters and packers as they follow the requirements of the program. Register as a participating True Source Certified Importer. Submit a Membership Fee based upon volume of trade. Follow True Source Certified guidelines when transacting purchases between Certified Processor/Exporters and Packers. Requires full transparency between supply chain partners.

11. Requirements of Certification: Processor/Exporter Submit an Annual Fee and pre-certification questionnaire. Participate in and pass a Certification Audit. Audit criteria will vary depending upon country of origin and risk of circumvention. Submit to random Surveillance Audits to reconcile purchases to sales and sample collection to test for country of origin – or depending upon country of operation, participate in load supervision and sampling prior to shipment. Source honey for processing and export from only the country of operation (no Imports from 3rd countries for re-export or use). Maintain records of purchasing transactions and establish a system of traceability. Suppliers/Beekeepers will be audited as part of this audit. Participate in and pass a Financial Audit (High Risk Countries).

12. The Case for Certification Customers, Consumers and the Media Consumers value clear declaration about the origins of the foods they eat, a certification program and logo approach is well understood. 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. Food Safety Legislation Verification activities under a foreign supplier verification program under this section may include monitoring records for shipments, lot-by-lot certification of compliance, annual on-site inspections, checking the hazard analysis and risk-based preventive control plan of the foreign supplier, and periodically testing and sampling shipments. Sec. 805 c. 3 FDA Food Safety Modernization Act Validate Ethical Sourcing Claims Any claim related to sourcing practices, carries little weight without some mechanism to verify the claim – certification is that mechanism. Many members of industry are already making a claim similar to the Pledge and engaging in independent activities to support that claim.

13. Invitation to Participate Provide Feedback Right Now During the Convention, submit survey Through e-mail: info@truesourcehoney.com Attend seminar in Chicago Serve on Advisory Panel 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.