Raw honey (i.e. the stuff in beehives) has a variety of bacteria in it that *might* not be all that great for your body. Sometimes, the bacteria can grow and spread throughout a jar of honey, especially if it’s stored at room temperature. This stuff won’t *always* get people sick, but it can and it’s a risk that some nations try to protect against.
The process for removing this harmful bacteria is called “pasteurization.” It involves heating the honey to a specific temperature and keeping it there long enough to kill the bacteria. Pasteurization can also be done by using radiation, though we should understand that the type of radiation used (and the duration of exposure) is carefully controlled to avoid damaging the honey and/or getting people sick.
When you hear the term “processed honey,” it’s referring to this pasteurization process.
sorry, edited to add: raw honey is simply any honey that hasn’t been through the pasteurization process. Raw honey *can* be perfectly safe, though for some people it isn’t (based on things like personal medical history or preexisting conditions); likewise, sometimes the manufacturer will sell a bad batch of honey without realizing it, because honey has some anti-bacterial and anti-microbial qualities, but it’s not always a guarantee.
“Raw” honey is simply strained and bottled. It may be cloudy due to microscopic bits of honeycomb, pollen, etc. Some people like it better this way.
“Processed” honey is clarified so that it’s clear and smooth, and then pasteurized for safety. Some people like it better this way.
I don’t believe anyone has ever conclusively proven any nutritional difference between them either way.
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