CGCI 1
Maintaining Integrity 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
[email protected]–763-2861
www.clarksongrain.com
CGCI 2
Clarkson GrainNiche Focused & Client Driven
Provide IP and organic grains, oilseeds and ingredients to the food & feed industries Corn – white, yellow, blue, waxy Soybeans Organic lecithin
Identity Preservation (IP) – 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
I Want to go OrganicNow What?
CGCI 3
Rules & Regulations Documentation
Ingredient Cost & Availability
Maintaining Quality
Inspections
Pest Management
Education & Training
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
CGCI 8
Organic is IPIP 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 9
IP/OrganicIt’s a Storage Thing!
Farmer A
Farmer B
Farmer C
Commodity Identity Preservedor
Organic
Segregation!!!
CGCI 10
Non-GMO Another IP & 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 11
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 12
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
I Want to go Organic What Can I Expect?
Documentation & inspections
Limited pest management tools
Higher cost
Limited availability/planning CGCI 13
The Organic ChainMultiple Links Required
Seed Supplier Farmer Cleaner/Producer Manufacturer Retailer Restaurant Consumer
CGCI 14
Organic Food/Feed ChainLimited Tools for All
Rodent Control No poisons, mechanical traps only
Insect control Cleaning & sanitation Moisture control Time of year/temperature Diatomaceous earth Beneficial insects
CGCI 15
Fumigation
Light traps Pheromone traps CO2
CGCI 16
Seed Supplier
Soy Variety “Wildcat123” Acceptable process quality Acceptable agronomic quality Organic under US rules, EU rules, other
Purity Variety – 99% GMO – 99.9%
3rd Party Approval – pre or post delivery
CGCI 17
Organic FarmerTransitioning to Organic
US Organic farm certification 3 year process
Transition required Rodale Institute
http://www.tritrainingcenter.org/code/index.php
‘cides
CGCI 18
Organic Farmer Available markets
Food and Feed Contracts/premiums
Generally smaller scale Limited tools
Fertilizer Weed & insect control
Great attitude Good infrastructure
Follows protocols Program hygiene Set backs Coordination with
neighbors
CGCI 19
Organic Farmer - continued Segregation
Planting Harvesting Handling Storage Shipping
Storage & monitoring
Education & training
Organic yearly inspection
Sample submission
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/Cleanercontinued
Minimize handling Organic purges required Monitor bins & product Insect control & monitoring Cleaning & sanitation Record keeping & yearly
inspections Product returns
CGCI 22
Time of year - “Gut Slot” deliveries Just in time cleaning
& deliveries Insect life cycle CO2
Processor/Cleaner – process
Precleaning Aspiration Cleaner/gravity table Destoner Color sorter
CGCI 23
Bugs
Crop Quality Can Vary2009 Crop
Very poor quality Wet storage Over drying Cracked, broken corn Processing problems
Growing conditions Late planting Late harvest
CGCI 24
2010 Crop
Pest Management Criteria
Effective
Timely
Cost effective
CGCI 25
Various Insect Control Methods
Vacuum
Nitrogen
Heat
Ozone
CO2
SpinosadCGCI 26
Food Manufacturer
CGCI 27
CGCI 28
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 29
The IP Supply ChainWork with Your Supplier
Once you select an IP 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!
Organic Manufacturer Requirements
Contract/specifications Zero insects Live or dead insect(s) Primary or secondary feeder
Cleaning/sanitation Just in time deliveries
Clean drop gate Truck purge
Education & training Facility and stored grain monitoring
CGCI 30
Bugs
Insect ControlWhose Bug?
CGCI 31
Supplier Shipping Food Manufacturer
Bugs Don’t Carry Identification Papers
Insect identification ID please
Education & training
CGCI 32
Consumer Confusion
Organic Labeling
GMOs
Natural
CGCI 33
CGCI 34
Organic Labeling European Union (EU)
It is either organic or not
United States Multiple Organic categories
CGCI 35
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 36
Organic Labeling in the USContinued
Made with Organic Ingredients (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
USDA Cracks Down
Additional funding and manpower
Use of synthetic materials
Certification agencies
Producers
CGCI 37
CGCI 38
Thank You
Top Related