The Burlington, Iowa Hawk Eye
12-14-06
Food trackers expand with industrywide demand
By Mike Augspurger
The Burlington, Iowa, Hawk Eye
A Midwest firm knows the importance of tracking its soybean-oil production from
the pods in the field to the bottles in the store.
Asoyia LLC, based in Winfield, Iowa, grows low-linolenic acid soybeans used in
making a trans-fat free soybean oil for several uses.
Major food processors and services are either using or testing the oil, derived
from a soybean developed over a period of several years by Iowa State
University researchers.
"We're the world's leading producer. It's absolutely essential to trace our product.
We're making a quality product and we're very serious about traceability," said
Rich Lineback, vice president of sales and marketing for Asoyia form in 2004 as
an offspring of the Iowa Quality Agriculture Guild.
Twenty-five farmers founded the company that has headquarters along the main
drag in Winfield, population 1,100. The company contracts with others for
growing, distributing, refining and storing the product. From its initial days, Asoyia
focused on becoming an International Standardization Organization, adhering to
principles that had been primarily used by industrial manufacturers.
Adopting those ISO principles lends credence to the company's ability to track its
product, which is essential in minimizing the production and distribution of unsafe
or poor-quality products. Asoyia wants to ensure its soybeans are 99.5 percent
GMO-free, which is the highest level of certification required for grain used in the
making the oil, Lineback said.
"We run a very tight identify-preservation program - tightest program as anyone
runs," he said.
A couple of years ago, the company had 25,000 soybean acres under contract.
Next year, 190 producers will grow more than 100,000 acres to meet an everincreasing demand for the oil.
The company sells 80 percent of its oil to food processors, with the remaining 20
percent being used by restaurants, hospitals and colleges or sold at retail outlets.
Besides the low-fat cooking factor, chefs also like the oil because it last longer on
shelves and food prepared in it tastes better.
About 300,000 food products are on store shelves in the United States, with
approximately 10,000 new products introduced each year, according to the U.S.
Department of Agriculture.
Many buyers now require suppliers to establish traceability systems and verify
information, usually through third parties. The USDA says the growth of thirdparty certifying agencies is forcing the whole food industry toward documented
tracking systems.
Asoyia, for example, has regular third-party inspections of farms, storage areas
and distribution points. Farm fields and storage areas also are marked by global
positioning systems that are combined with other methods to track the product's
movement.
Since Asoyia began its operations four years ago, no loads of
soybeans have been rejected at delivery points.
The soybeans are refined by Cargill, which also maintains standards regarding
tracking food production.
"Obviously, they are a very high-quality operation," he said of Cargill, which also
uses security measures.
Asoyia became partners with the food giant because officials knew it would take
the Winfield company years to reach the level of Cargill's sophistication.
"We've been smart to partner with experts," he said, which allows Asoyia to
concentrate on marketing.
The company also helps farmers manage their fields to optimize yields. Raising
the low-fat soybeans also means 45 to 95 cents more per bushel for the farmer
than received for a regular soybean crop.
"We have a very aggressive premium structure," he said.
Houlihan's, Diamond Dave's and Pizza Ranch are among the latest regional and
national customers using the oil. Asoyia oil also is used in more than half of the
Goldfish crackers made by Pepperidge Farm.
A recent Wall Street Journal article about Asoyia also has increased the
company's exposure to the food-processing world.
"We are picking up new distributors every month. We have several new products
that will be launched through 2007," Lineback said.