Maintaining I ntegrity and Quality of Organic Grains from Producer to Processor Methyl Bromide Alternatives Workshop at KSU, May 11-13, 2010 Rick Bucker, Ph.D. General Manager Clarkson Grain Co., Inc. Cerro Gordo, Illinois 61818 rick.bucker@clarksongrain.com 217–763-2861 www.clarksongrain.com CGCI 1
Clarkson Grain Niche Focused & Client Driven Provide I P and organic grains, oilseeds and ingredients to the food & feed industries Corn – white, yellow, blue, waxy Soybeans Organic lecithin I dentity Preservation (I P) – Segregated by Variety Organic or non-GMO Flavor/Color/Composition Specific hybrids to meet customer requirements Clients in North America, Asia, EU, and South America Production in North America and China CGCI 2
I Want to go Organic Now What? Rules & Documentation Regulations Inspections Maintaining Quality Education & Training Ingredient Cost & Availability Pest Management CGCI 3
What Does Organic Mean? Organic is an agricultural methodology that promotes environmental sustainability, fosters animal wellbeing and enhances biodiversity and the preservation of ecological systems. CGCI 4
Why do Consumers Want Organic Foods? No pesticides or synthetic fertilizers President’s panel results Not made with GMOs Better flavor More nutritious Better for the earth CGCI 5
The Organic Market U.S. sales of organic food & beverages hit $24.8 billion in 2009, up 5.1% Food sales grew by only 1.6% Organic foods were 3.7% of food sales in 2009 compared to 1.2% in 2000 Organic fruits and vegetables represent 38% of total organic sales $9.5 billion in sales in 2009, up 11.4% from 2008 CGCI 6
Full Circle CGCI 7
Organic is I P I P What? IP stands for Identity Preservation Maintain identity based on segregation from the seed to the manufacturer Involves the whole supply chain Referred to as specialty, premium, high value or niche market grains or oilseeds Not a commodity USDA graded product IP grains/oilseeds are chosen for their specific end use Requires a premium for the farmer to grow Organic is an example of Identity Preservation CGCI 8
I P/ Organic I t’s a Storage Thing! Segregation!!! Farmer A Farmer B Farmer C Commodity Identity Preserved or Organic CGCI 9
Non-GMO Another I P & Organic Challenge Market dominates, not production, not the farmer Markets and clients differ US – no official claim EU Base – 0.9% Extreme – 0 - 0.1% Korea – GMO free Official versus commercial standards – ex. Japan GMO free Wind drift The ethanol tsunami CGCI 10
US Organic 101 Organic is a process claim, not a product claim Regulated under USDA National Organic Program (NOP) Since October 21, 2002, it is a federal offence to label any food product “organic” unless it has been certified Certification is required Approximately 55 US agencies Approximately 40 International Agencies CGCI 11
US Organic Regulations Regulations Irradiation, sewage sludge and genetically modified organisms prohibited Reflects NOSB recommendations for items on the national list of allowed synthetic and prohibited natural substances Antibiotics are prohibited in organic meat and poultry feeds 100% organic feed required for organic livestock Natural has nothing to do with Organic CGCI 12
I Want to go Organic What Can I Expect? Documentation & inspections Limited pest management tools Higher cost Limited availability/planning CGCI 13
The Organic Chain Multiple Links Required Seed Supplier Farmer Cleaner/Producer Manufacturer Retailer Restaurant Consumer CGCI 14
Organic Food/ Feed Chain Limited Tools for All Rodent Control No poisons, mechanical traps only Insect control Light traps Cleaning & sanitation Pheromone traps Moisture control CO 2 Time of year/temperature Diatomaceous earth Fumigation Beneficial insects CGCI 15
Seed Supplier Soy Variety “Wildcat123” Acceptable process quality Acceptable agronomic quality Organic under US rules, EU rules, other Purity Variety – 99% GMO – 99.9% 3 rd Party Approval – pre or post delivery CGCI 16
Organic Farmer Transitioning to Organic US Organic farm certification 3 year process Transition required Rodale Institute http://www.tritrainingcenter.org/code/index.php ‘cides CGCI 17
Organic Farmer Available markets Food and Feed Contracts/premiums Generally smaller scale Limited tools Follows protocols Fertilizer Program hygiene Weed & insect control Set backs Great attitude Coordination with neighbors Good infrastructure CGCI 18
Organic Farmer - continued Segregation Planting Harvesting Handling Storage Shipping Storage & monitoring Education & training Organic yearly inspection Sample submission CGCI 19
Farmer’s Embrace Biotech Crops Farmer Benefits Insect resistance Herbicide tolerance Biotech Varieties Introduced in 1996 GMOs Today Soybeans – 91% Corn – 86% Cotton – 88% CGCI 20
Processor/ Cleaner Specifications/contract Farm inspection & samples Storage on farm or at the processor Receiving & testing Quality Mycotoxins – aflatoxin, fumonisin and vomitoxin Education & training CGCI 21
Processor/ Cleaner continued Minimize handling Time of year - “Gut Slot” deliveries Organic purges required Just in time cleaning Monitor bins & product & deliveries Insect control & monitoring Insect life cycle Cleaning & sanitation CO 2 Record keeping & yearly inspections Product returns CGCI 22
Processor/ Cleaner – process Precleaning Aspiration Cleaner/gravity table Destoner Color sorter Bugs CGCI 23
Crop Quality Can Vary 2009 Crop 2010 Crop Very poor quality Wet storage Over drying Cracked, broken corn Processing problems Growing conditions Late planting Late harvest CGCI 24
Pest Management Criteria Effective Timely Cost effective CGCI 25
Various I nsect Control Methods Vacuum Nitrogen Heat Ozone CO 2 Spinosad CGCI 26
Food Manufacturer CGCI 27
Higher Prices for Organic Raw Materials Yellow Corn - bulk US# 2 Feed $3.75/ bu Food $4.00/ bu Organic $5.00/ bu White Food Corn - bulk Conventional $4.50/ bu Organic $9.00/ bu Blue Corn - bulk Conventional $14.50/ bu Organic $24.00/ bu CGCI 28
The I P Supply Chain Work with Your Supplier Once you select an I P or Organic corn hybrid: Not available “off the shelf” Contracting with the farmer from August to January Planting in April, May and early June New crop available from September/October on When it is gone, it is gone! CGCI 29
Organic Manufacturer Requirements Contract/specifications Zero insects Live or dead insect(s) Bugs Primary or secondary feeder Cleaning/sanitation Just in time deliveries Clean drop gate Truck purge Education & training Facility and stored grain monitoring CGCI 30
I nsect Control Whose Bug? Food Supplier Shipping Manufacturer CGCI 31
Bugs Don’t Carry I dentification Papers Insect identification ID please Education & training CGCI 32
Consumer Confusion Organic Labeling GMOs Natural CGCI 33
Organic Labeling European Union (EU) It is either organic or not United States Multiple Organic categories CGCI 34
Organic Labeling in the US Four Labeling Categories 100% Organic Must contain 100% organically produced ingredients not counting water and salt May carry the USDA Organic Seal Organic Must contain at least 95% organic ingredients by weight not counting water and salt May contain up to 5% of non-organically produced agricultural ingredients or other substances allowed by 7 CFR 205.605 Must not contain added sulfites May carry the USDA Organic Seal CGCI 35
Organic Labeling in the US Continued Made with Organic I ngredients (or similar wording) At least 70% of the content is organic Front panel may display the phrase “Made with Organic” followed by up to three specific ingredients May contain up to 30% of non-organically produced agricultural ingredients or other substances allowed by 7 CFR 205.605 May not display the USDA Organic seal May contain some Organic ingredients listed on ingredient panel Less than 70% of ingredients are Organic May contain over 30% of non-organically produced agricultural ingredients or other substances allowed by 7 CFR 205.605 Organic ingredients may be listed as such on the ingredient panel but can not be mentioned on the main panel May not display the USDA Organic seal CGCI 36
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