USDA& USAID Export Food Aid Conference Biotechnology Panel ...

mutebabiesBiotechnology

Dec 6, 2012 (4 years and 11 months ago)

199 views

1

Facilitating the Marketing

of America’s Grain

Grain Inspection, Packers and Stockyards Administration

John B. Pitchford

Director of International Affairs

Grain Inspection, Packers & Stockyards Administration

November 15, 2004

Berkeley, California


2



Federal Grain Inspection Service


U.S. Grain Standards Act


Agricultural Marketing Act

U.S. Department of Agriculture

Grain Inspection, Packers and Stockyards Administration


3

Mission


To
facilitate the marketing

of

livestock, poultry, meat,
cereals,
oilseeds, and related agricultural
products,

and promote fair and
competitive trading practices for the
overall benefit of consumers and American
agriculture.

4

Core Business Practices


Provide the market with terms and methods
for quality assessments



Protect the integrity of U.S. grain and
related markets



Provide official grain inspection and weighing
services for American agriculture

5

Service Provision


Terms (i.e., grades/standards)


Maintain grading standards for grains,
rice, beans, peas, and lentils


Analytical Methods


Maintain over 1,400 methods of analyses


Official Inspection System


Annually certify the quality and quantity of 96.5
million metric tons of grain exported to more than
130 countries around the world




6

Grain & Oilseed Marketing Channels

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals

$

$

Value of product differentiation


The U.S. grain market ranges from the commodity market
to the very high value added identity preservation system.
Between these two extremes lies an evolving market of
greater product differentiation driven by technology,
consumer demands, and global competition.


E

E

Market efficiency

7

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals

Commodity Market


High volume


Low margins

U.S. Grain Standards


Grain type


Class


Subclass


Quality

Yellow corn

White corn

Soybeans

Hard Red Winter Wheat

Hard Red Spring Wheat

Soft Red Winter Wheat

Soft White Wheat

Hard White Wheat

Grades 1
-

Sample

Practical Market Driven

Thresholds/Tolerances

Mixed Grain > 10%

Lower Grade

WOCL


U.S. # 1
<

2%


U.S. # 2
<

5%

Testing
: rapid (minutes), accurate (USDA reference),


reliable, inexpensive
.

Grain & Oilseed Marketing Channels

Multiple commodities coexist in current market


8

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals

Grain & Oilseed Marketing Channels



Protein



Oil



Starch

Technology offers the opportunity to
expand the measurement of
attributes. The challenge is to define
the appropriate attributes that reflect
end
-
use value for the diverse
products made from today’s cereals
and oilseeds.

9

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals

Farmers contract with handler or processor

to produce a specific variety for a specific quality attribute
.



Premiums



May specify agronomic practice



Seed verification (tag, invoice, etc.)

-

Testing unlikely (too costly and slow)



U.S. standards and quality requirements



Specified delivery time and location

Trend:



Quality of protein



Composition of oil



Starch attributes

Grain & Oilseed Marketing Channels

10


Market/Customer Defined


Documentation


Testing


Process
-
based

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals



New evolving market



Small volume



High risk



Premiums

Grain & Oilseed Marketing Channels

11

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Pharmaceuticals



High value specialty market



U.S. Standards



Processed
-
based



Audit and certification

Grain & Oilseed Marketing Channels

12

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic



Small very high value market



Produced and processed under


government permit and oversight

Grain & Oilseed Marketing Channels

Pharmaceuticals

13

Commodity

Easily

Measured

Attributes

Variety

Specific

Absence of

Attribute

Organic

Grain & Oilseed Marketing Channels

Pharmaceuticals

Facilitate marketing beyond
the traditional commodity
markets



Quality Standards



Testing Technology



Process
-
based systems



Harmonization


14

Quality Standards


Maintain standards that reflect the evolving
market needs


New crops


e.g., Hard White Wheat


New agronomic practices


e.g., herbicide resistant
crops


New quality attributes


e.g., low linolenic soybeans


New ways of measuring existing quality attributes


e.g., wheat protein quality


15

Testing Technology


Improve the ability to differentiate end
-
use
quality


Identify key quality attributes


Establish consensus on reference methods


Transfer reference method to market
-
relevant rapid
analytical tool


Establish consensus (national/international) on
reporting quality results

Examples:


Extractable and fermentable starch


Protein quality


Amino acid profile


Wheat baking quality

16

Process
-
based Systems


Support marketing systems based on quality
management processes


Company or organization develops
Quality Policy,
Quality Objectives, and Quality Procedures to meet
customer demands


USDA verifies adherence to the Quality Management
System through third
-
party audits based on ISO 9001
requirements


Company or organization may market their process or
product as “USDA Process Verified”


17

Harmonization


Provide technical assistance to minimize market
disruption due to quality standards and regulations



Ensure that quality assessments are accurate and
reliable, and that all parties involved understand how
quality is defined and measured



Misunderstandings or disagreements about the meaning
of basic quality terms, or misuse of quality terms, can
result in costly marketing disruptions


18

Conclusion


Quality standards must reflect changing market
needs


Testing technology needs to keep pace with new
quality attributes


Process verification of quality management systems
can further facilitate trade


Harmonization of the terms and measurement of
quality promotes efficient trade


Accurate and reliable application of standards and
technology are essential