NEW MEXICO ORGANIC CONFERENCE PRESENTATION- ABOUT THOSE IMPORTED GRAINS CENTRAL PLAINS ORGANIC FARMERS ASSOC. (FORMERLY KNOWN AS KANSAS ORGANIC

Transcription

1 NEW MEXICO ORGANIC CONFERENCE PRESENTATION- ABOUT THOSE IMPORTED GRAINS CENTRAL PLAINS ORGANIC FARMERS ASSOC. (FORMERLY KNOWN AS KANSAS ORGANIC PRODUCERS) A PROUD MEMBER OF OFARM- ORGANIC FAMERS ASSOCIATION FOR RELATIONAL MARKETING

2 CPOFA is funded by a 6.5% Market Service Fee based on gross sales. The.5% of those sales that goes to OFARM, (a coop of farmer owned Marketing coops) helped fund this research. We were the first organization that started researching and questioning organic import origins. Working together as a team this is a bit of what we have discovered about imported organic grains.

3 MOPC WOMA NFO MOFC CPOFA

4 Imported organic grains are simply the result of large corporations entering into the organic market. There is less risk in building a feed mill, or a diary, or a poultry house, or an organic hydroponic greenhouse than actual farming. Spending the required three years of investment in soil building and infrastructure that an organic farm requires is a higher risk than processing. With supply not growing fast enough with a price point that could support an expansion of these less risky enterprises, the solution became imports for the growing organic market. A LOT of imports. And they needed to be cheaper than domestic production. The problem is that some or most? of these imports are not Certified Organic but have been sold fraudulently as such. Last year at this time, that was a controversial statement. This is not the case now. In this presentation we will cover: 1) the concentration of capital in corporate organics, using Small Planet Foods as an example 2) we ll go thru some of the fraud part 3) then we ll talk about what has been done and what is ongoing. The concern is whether consumers come to see organic as merely a brand that can be manipulated rather than a process based agriculture. White Wave soymilk is the best example of this.

5 ORGANIC MARKETS EU BIG, USA BIGGEST MOA Kansas City Clarksopn Jan 27,

6 MOA Kansas City Clarksopn Jan 27,

7 Are These Names Familiar? General Mills - (Small Planet Foods) Pepsi Coke Cargill Bunge ADM

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9 Challenges: Joint venture of ConAgra and Ardent Mills 35% of the flour milling market for all wheat including organic

10 How to evaluate sustainability How does the corporate model fit? Are corporations drawn to the organic To become more socially just? Or to be Environmentally sensitive? Or to capture A profitable and growing market?

11 Domestic Production Estimates Crop Acres Yield Bushels Acres Yield Bushels Corn 300, ,000, , ,875,000 Soy 180, ,400, , ,400,000 Imported Production Estimates (bu) Acres US actual Estimate Estimate Estimate Estimated Crop Growth 2017 Corn 12,000,000 23,152,000 35,000,000 51% 280,000 Soy 11,700,000 14,149,000 18,393,700 30% 525,534 MOA Kansas City Clarksopn Jan 27,

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13 Organic Grain Influences 2014 Increased pressure on domestic price 2015 Organic prices start falling due to Romanian imports 2016 Turkey becomes largest importer of organic corn and soybeans April 2016 ETKO/EU decertification; but not U.S.

14 CREDIBILITY Rule or wish NOP rules EU Equivalency Indian Equivalency Consequence if fraud by Farmer Handler/consolidator Certifier EKTO the case of the No, No, Yes certifier EU lost certification Canada lost certification USA appears last week to still be certified If no penalty, perhaps we just have a wish. If so, that is biggest single threat to the credibility of the US organic label MOA Kansas City Clarksopn Jan 27,

15 ETKO DECERTIFIED MARCH, 2016 BY THE EU JUNE 7, 2016 BY CANADA April NOP lost the appeal by ETKO to a USDA Adminstration Law Judge to be de-certified. This was not shared to the public. ETKO certified corn continues to flood US market. On January 19, 2017 OFARM along with Food and Water Watch files a FOIA request on all files pertaining to ETKO decertification and successful appeal

16 ON SEPT 1, 2016, OFARM FILED A COMPLAINT WITH THE INSPECTOR GENERAL. IN PART, OFARM ASKED: What procedures does NOP have to assess whether the EU s processes for accreditation and certification are adequate to ensure the integrity of bulk shipments of commodities that are pooled from many farms? Does NOP have an adequate system to track bulk commodity shipments produced in other countries outside the EU that are certified by EU-based certifiers, or shipped through EU countries? What other data collection should NOP set up to have a better understanding of source of imports, back to the certifier and farm level?

17 June, acres Of bu./acre

18 The Ince Atlantic is expected to arrive at the Port of Olympia's Marine Terminal on September 13, After unloading cargo, it is expected to depart around September 19, Steamship Line: Tiryaki Vessel Flag: Istanbul Cargo: Organic Grain Volume: 15,000 metric tons or 589,285 bu. of corn or 3928 acres

19 Who washed the cargo hold, elevators, conveyors? Audit Trail

20 The backbone of domestic organic certification is the audit trail- like it or not. It is or should be the same for imported grains. At this time, this is not the case. Now for our audience participation number

21 1 WHAT DO WE WANT? 2 A verified audit trail back to the field on all organic imports! 3..WHEN DO WE WANT IT? 4 NOW!!

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23 2017 o OFARM files FOIA with USDA relating to ETKO appeal o Washington Post organic fraud articles o OFARM and others taking actions against questionable imports o Food and Water Watch (Washington, D.C.)/OFARM investigation o Organic Trade Association forms Global Organic Supply Integrity Task Force o OFARM alerts USDA/NOP of fraudulent shipment o OFARM rep shares concerns with NOSB at Denver meeting in April regarding co-mingling of organic and conventional imported grains o Miles McEvoy, deputy administrator of USDA s National Organic Program, resigns in Sept.

24 The labels said organic. But these massive imports of corn and soybeans weren t, Photo credit: Washington Post (May 12, 2017)

25 Bellingham, WA September 27, 2017 What do you think demurage is on a ship this size?

26 Organic Grain Influences Office of the Inspector General Audit Report Organic food fraud leads Congress to weigh bill doubling USDA oversight Tracking import volumes

27 USDA s Office of Inspector General Found AMS was unable to provide reasonable assurance that NOP required documents were reviewed at U.S. ports of entry to verify that imported agricultural products labeled as organic were from certified foreign organic farms

28 Directives to AMS from the Inspector Generals Report Verifications at U.S. Port of Entry Request assistance from other Federal agencies (like APHIS) Develop internal systems for more organic import data Ensure organic grains aren t fumigated

29 WHAT IS OFARM ASKING FOR? 1. NOP to require any entity that imports grain to be certified (so the audit trail is maintained) 2. Putting a system in place for inspection at US ports 3. Protocols for residue testing 4. Putting in place a warning system of special protocols of imports from High Risk countries similar to the EU 5. Strengthen Accreditation of Certifiers 6. Improved transparency (similar to or link into the TRACES program in the EU) 7. Use International Maritime Laws to seize fraudulent cargos

30 WHERE IN THE WORLD IS ORGANIC HEADED?

31 Canada and/or the EU NOP Importers required to be certified Just now talking about it. Organic inspection at the ports Warning system of higher risk countries Testing protocols for banned substances

32 Organic is the Future of American Agriculture Errol Schweitzer, Executive Global Grocery Coordinator at Whole Foods Market Whole Foods is a multi-billion dollar industry leading retailer with 400 stores Consumers are demanding; More information about a products ingredient list Accentuate what s not in the product as much at what is. Prove our commitment to product safety by enforcing and publicizing strict internal standards

33 Organic Producers can take the route of being rugged individualists doing their own thing. We only need to look at our conventional neighbors to see how well that has worked.

34 OR??? We can work together to solve these problems.

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36 MISSION STATEMENT To Coordinate Efforts of Producer Marketing Groups to Benefit and Sustain CERTIFIED ORGANIC PRODUCERS.

37 OFARM pricing goals: The full recovery of all input costs for grain and livestock A return to labor and management that provides adequate family income Return on investment Income enhancement to provide for the community support for schools and churches Organic premium for production of healthy wholesome food that is environmentally responsible

38 OFARM provides services to: Promote the exchange of pricing, contracts and marketing information Facilitate negotiations and terms of the contracts Educate policy makers such as legislators Assist organic farmers with adoption of new crops and agronomic practices

39 OFARM Success Organic Federation Seen As A Strategy For Family Farm Survival, Regional Competitiveness USDA- Dr. Thomas Gray January 2012

40 ORGANIC IS PROJECTED TO GROW OVER THE NEXT 3 YEARS AT 14% ANNUALLY CONVENTIONAL FOOD SALES AT 2.5% PER YEAR

41 Currently the market is signaling to farmers with low prices no more production is needed! Additional acres needed to replace imports to bring stability: Corn-200,000 acres Soybeans-400,000 acres

42 If you are a buyer of organic grain for your farm or business, you should be asking for verification of whether the grain is produced in the U.S. or imported

43 THE IMPORT ISSUE IS NOT GOING AWAY ANYTIME SOON. U.S. PRODUCERS NEED TO WORK TOGETHER TO BE ABLE TO PUT TOGETHER UNITS OF U.S. PRODUCED GRAIN IN SUFFICIENT QUANTITIES TO BEGIN REPLACING IMPORTS.

44 Filing a Formal Complaint with NOP NOPCompliance@ams.usda.gov Phone: Fax: Mail: NOP Compliance and Enforcement Branch Agricultural Marketing Service United States Department of Agriculture 1400 Independence Avenue, S.W. Mail Stop 0268, Room 2648-S

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46 The future depends on maintaining ORGANIC INTEGRITY Producing to the highest standards in the world and maintaining those standards!

47 In conclusion- the historical record of corporate influence in environmental, economic or societal issues has not been good for agriculture. At this point, Organic Farmers still have a voice and role in changing these outcomes. In fact, this what has driven farmers to move into organics in the first place. It has been interesting to see the NOP and certification bodies responding and acknowledging their responsibilities. OFARM will continue to challenge, confront and educate the agricultural community about these and other issues concerning farmers and our communities.

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