Maintaining I ntegrity and Quality of Organic Grains from Producer - - PowerPoint PPT Presentation

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Maintaining I ntegrity and Quality of Organic Grains from Producer - - PowerPoint PPT Presentation

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


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SLIDE 1

CGCI 1

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

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SLIDE 2

CGCI 2

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

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SLIDE 3

I Want to go Organic Now What?

CGCI 3

Rules & Regulations Documentation Ingredient Cost & Availability Maintaining Quality Inspections Pest Management Education & Training

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SLIDE 4

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

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SLIDE 5

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

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SLIDE 6

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%

  • f total organic sales

 $9.5 billion in sales in 2009, up 11.4%

from 2008

CGCI 6

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SLIDE 7

Full Circle

CGCI 7

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SLIDE 8

CGCI 8

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

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SLIDE 9

CGCI 9

I P/ Organic I t’s a Storage Thing!

Farmer A Farmer B Farmer C

Commodity Identity Preserved

  • r

Organic

Segregation!!!

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SLIDE 10

CGCI 10

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

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SLIDE 11

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

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SLIDE 12

CGCI 12

US Organic Regulations

 Regulations

 Irradiation, sewage sludge and genetically modified

  • rganisms 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

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SLIDE 13

I Want to go Organic What Can I Expect?

 Documentation &

inspections

 Limited pest management

tools

 Higher cost  Limited availability/planning

CGCI 13

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SLIDE 14

The Organic Chain Multiple Links Required

 Seed Supplier  Farmer  Cleaner/Producer  Manufacturer  Retailer  Restaurant  Consumer

CGCI 14

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SLIDE 15

Organic Food/ Feed Chain Limited 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

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SLIDE 16

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

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SLIDE 17

CGCI 17

Organic Farmer Transitioning to Organic

US Organic farm certification

 3 year process

 Transition required  Rodale Institute

 http://www.tritrainingcenter.org/code/index.php

‘cides

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SLIDE 18

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

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SLIDE 19

CGCI 19

Organic Farmer - continued

 Segregation

 Planting  Harvesting  Handling  Storage  Shipping

 Storage & monitoring  Education & training  Organic yearly inspection  Sample submission

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SLIDE 20

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

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SLIDE 21

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

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SLIDE 22

Processor/ Cleaner

continued

 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

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SLIDE 23

Processor/ Cleaner – process

 Precleaning  Aspiration  Cleaner/gravity table  Destoner  Color sorter

CGCI 23

Bugs

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SLIDE 24

Crop Quality Can Vary

2009 Crop

 Very poor quality

 Wet storage  Over drying  Cracked, broken corn  Processing problems

 Growing conditions

 Late planting  Late harvest CGCI 24

2010 Crop

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SLIDE 25

Pest Management Criteria

 Effective  Timely  Cost effective

CGCI 25

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SLIDE 26

Various I nsect Control Methods

 Vacuum  Nitrogen  Heat  Ozone  CO2  Spinosad

CGCI 26

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SLIDE 27

Food Manufacturer

CGCI 27

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SLIDE 28

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

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SLIDE 29

CGCI 29

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!

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SLIDE 30

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

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SLIDE 31

I nsect Control Whose Bug?

CGCI 31

Supplier Shipping Food Manufacturer

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SLIDE 32

Bugs Don’t Carry I dentification Papers

 Insect identification

 ID please  Education & training

CGCI 32

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SLIDE 33

Consumer Confusion

 Organic Labeling  GMOs  Natural

CGCI 33

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SLIDE 34

CGCI 34

Organic Labeling

 European Union (EU)

 It is either organic or not

 United States

 Multiple Organic categories

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SLIDE 35

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

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SLIDE 36

CGCI 36

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

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SLIDE 37

USDA Cracks Down

 Additional funding and manpower  Use of synthetic materials  Certification agencies  Producers

CGCI 37

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SLIDE 38

CGCI 38

Thank You