IGQI Advisory Committee Meeting July 13, 2012 Charles Hurburgh, Professor, Agricultural and Biosystems Engineering AGENDA 9:30 AM Welcome and introductions College of Agriculture, Extension update plans: John Lawrence 10:00 AM Bioprocessing projects: RFS, E15 and pathways for plants to expand Current projects – corn sourcing and frac Discussion of future direction and opportunity 11:00 AM QMS/Food Safety projects FSMA and grain handling – update FDA grant update, results 12:00Noon Lunch Break 12:30PM Storage and Grain Management projects Storage Team Potential mold toxin and other drought impacts 2:00 PM Update; International Center for Grain Operations and Processing 2:30 PM Next meeting plans then adjourn. Suggested date: Friday, January 4, 2013 Program Update Agriculture and Natural Resources Extension College of Agriculture and Life Sciences GQI Projects 2013 Bioprocessing QMS/FSQMS Food Safety Grain Management Processing inventory FDA Food safety project Grain storage team Fractionation Training (FSMA)- industry component Update materials Feed balance QMS templates, etc. Current events Soybean marketing 30% Traceability 40% 30% Expectation: Each project will create at least 2-3x its allocation in proposals ~ $150,000 Extension Allocation FY2013 104 Corn Grind for Ethanol 102 Million bushels 100 98 96 94 92 90 88 86 Sep- Nov- Jan- Mar- May- Jul10 10 11 11 11 11 Sep- Nov- Jan- Mar- May11 11 12 12 12 Source: DOE-EIA Extension and Outreach/Department of Economics 1000 Ethanol Stocks 950 Million gallons 900 850 800 750 700 650 Sep- Nov- Jan- Mar- May- Jul- Sep- Nov- Jan- Mar- May10 10 11 11 11 11 11 11 12 12 12 Source: DOE-EIA Extension and Outreach/Department of Economics U.S. Blended Gasoline Consumption 7.6 bil. gal. 7.4 bil. gal. Source: DOE-EIA, via USDA-ERS Extension and Outreach/Department of Economics Extension and Outreach/Department of Economics 1 12 n- Ja l-1 Ju 0 11 n- Ja l-1 Ju 9 10 n- Ja l-0 Ju 8 09 n- Ja l-0 Ju 7 08 n- Ja l-0 Ju 6 07 n- Ja l-0 Ju 5 06 n- Ja l-0 Ju 05 n- Ja $ per gallon $2.50 Ethanol Margins $2.00 $1.50 $1.00 $0.50 $0.00 -$0.50 Prices Ethanol Extension and Outreach/Department of Economics Corn Jan-12 Jul-11 Jan-11 Jul-10 Jan-10 Jul-09 $1.50 Jan-09 $1.00 Jul-08 $2.75 Jan-08 $1.50 Jul-07 $4.00 Jan-07 $2.00 Jul-06 $5.25 Jan-06 $2.50 Jul-05 $6.50 $ per bushel $7.75 $3.00 Jan-05 $ per gallon $3.50 Extension and Outreach/Department of Economics Ethanol Gasoline 5/3/12 1/3/12 9/3/11 5/3/11 1/3/11 9/3/10 5/3/10 1/3/10 9/3/09 5/3/09 1/3/09 9/3/08 5/3/08 1/3/08 9/3/07 5/3/07 1/3/07 $ per gallon 4.00 Fuel Prices 3.50 3.00 2.50 2.00 1.50 1.00 0.50 Relative Prices 1.25 1.20 1.15 1.10 1.05 1.00 0.95 0.90 0.85 Corn Ethanol Extension and Outreach/Department of Economics Gasoline 7/3/12 6/19/12 6/5/12 5/22/12 5/8/12 4/24/12 4/10/12 3/27/12 3/13/12 2/28/12 2/14/12 1/31/12 1/17/12 1/3/12 0.80 Extension and Outreach/Department of Economics 1/3/15 7/3/14 1/3/14 7/3/13 1/3/13 7/3/12 1/3/12 7/3/11 1/3/11 7/3/10 1/3/10 7/3/09 1/3/09 7/3/08 1/3/08 7/3/07 1/3/07 $ per gallon 0.16 Blending Margins 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 -0.02 -0.04 RFS 40 35 Billion gallons 30 25 20 15 10 5 0 2009 2012 2015 2018 2021 Conventional Biofuels Cellulosic Biofuels Biodiesel Additional Advanced Biofuels Extension and Outreach/Department of Economics RFS Detail 2010-12 16 Billion gallons 15 14 13 12 11 10 2010 2011 2012 Conventional Biofuels Cellulosic Biofuels Biodiesel Additional Advanced Biofuels Extension and Outreach/Department of Economics 16 RFS Implementation 2010-12 Billion gallons 15 14 13 12 11 10 2010 2011 2012 Conventional Biofuels Cellulosic Biofuels Biodiesel Additional Advanced Biofuels Extension and Outreach/Department of Economics Value Added Agriculture Program Current Projects within the IGQI Bioprocessing Group July 2012 - Development of Iowa Grain Flow Survey 2013 - Validation of Ethanol Yield Equation - Plant test with new corn genetics - United BioEnergy survey - Discussions with fractionation companies www.iavaap.org Extension and Outreach/Department of Economics Grain Storage and Handling Team • First issue team under new plan • Grain science well understood. Challenge is volume and value of grain • Delivery team of field specialists Shaun Shouse, Greg Brenneman: ABE Kelvin Leibold, Steve Johnson: Farm Mgt Mark Licht: Agronomy • Collect regional info; short multi media on key topics, annual technology review and updates, early warning. Harvest conditions and projected needs The first condition (heat at silk) for aflatoxin has been met. We will review and update our aflatoxin/mycotoxin materials (Hurburgh, Robertson, Shepherd) New concern- FSMA, the reportable food registry and crop insurance. (Hurburgh, Laury) If severe drought; nitrate levels in silage (Loy et al.) High alpha amylase corn. Bad in corn dry milling and alkaline cook. One plant plans to take all. List of training topics that might be useful. Aeration management: Brenneman Dryeration: Shouse Ventilation – fan sizes and performance: Brenneman Energy bulletins: Hanna –format to use for all the handouts. Mycotoxins: Robertson, Hurburgh and Licht Food safety act and grain farms: Laury and Hardy Bin drying: Drying systems - how should I spend my money: Economics of drying and storage: Leibold and Johnson Grain testing – grading: Hurburgh FDA - Food Safety Modernization Act Update registration every two years A written food safety plan is required Carrier certification and examination (BSE)!!!!! Surveillance inspection every 5-7 years Accuracy guidelines for enhanced traceability FDA now can force a recall Self reporting website apply to mycotoxins??? Inspect records and audit without prior cause First Actions • Train new inspectors, visit facilities • Emphasis on food safety plans – FEED! • Specific audits and checks in familiar areas; eg sanitation, BSE/meat products • Traceability/recall – ask state of the art • Wild card: Moldy grain and mycotoxins • Third party audits – fading reputation Food Safety Training for Bulk Agricultural Product Handling and Processing Charles R. Hurburgh, Jr., Professor, Agricultural and Biosystems Engineering Principal Investigator Project Team-ISU • Dr. Charles R. Hurburgh, PI • Dr. Jim Roth, DVM, CoPI; – Center for Food Security and Public Health Educational Resources, College of Vet. Med. – Feed Safety and Animal Health tracking • Dr. Gretchen Mosher, Industrial Technology; – risk, mapping • Howard Shepherd, IGQI Coordinator • Connie Hardy, Extension; current practice survey ISU Responsibilities: Process map of grains supply chain and food safety risk points Survey of current food safety regulatory practice, jurisdictions. Templates and procedure for creating a food safety plan/recordkeeping plan Course unit in animal production from the food safety viewpoint Course unit on traceability and recordkeeping Risk analysis of the grain supply chain ISO22000 coded to FSMA; PAS220, 222; AAFCO; FDA job analysis Scientific publications and list of publications in the FSQMS area. KSU Responsibilities: Feed short course taught at KSU (VM101) Process for ANSI accreditation of training materials Course unit on mycotoxins Addition of Food Safety Plan development to the GEAPS QMS course Farm Grain – Field and Storage Risks AFLATOXIN – case study Action Level (ppb) Reference Corn and peanut products intended for finishing (i.e., feedlot) beef cattle 300 CPG 683.100 Cottonseed meal intended for beef, cattle, swine, or poultry (regardless of age or breeding status) 300 CPG 683.100 Corn and peanut products intended for finishing swine of 100 pounds or greater 200 CPG 683.100 Corn and peanut products intended for breeding beef cattle, breeding swine, or mature poultry 100 CPG 683.100 Corn, peanut products, and other animal feeds and feed ingredients but excluding cottonseed meal, intended for immature animals 20 CPG 683.100 Corn, peanut products, cottonseed meal, 20 and other animal feed ingredients intended CPG 683.100 Commodity Animal Feeds Mycotoxins • Aflatoxin • Fumonisin • Vomitoxin • Zearalenone • Ochratoxin Mycotoxins are an example of a food safety issue that covers the entire supply chain. VM101: Grain and Feed Mill Operations June 25-29, 2012 Date Time Presentation Title Speaker Organization June 25th 8:00 AM Importance of Feed and Food Safety and this course Hull FDA Monday 8:30 AM Course Orientation McKinney KSU 9:00 Evolution and Current Structure of the U.S. Feed & Animal Industry Fairfield NGFA 10:00 Grain Production and Handling Hurburgh ISU 10:45 Break McKinney KSU 11:00 Feed Mill Tour 12:00 PM Lunch 1:00 Grain and Ingredient Quality and Storage Hurburgh ISU 1:30 Molds & Mycotoxins Channaiah KSU 3:00 Break 3:30 Problem Exercise 4:30 Recap 5:00 Adjurn June 26th 8:00 AM Milling Miller KSU Tuesday 9:00 Oilseed Processing & Biodiesel McKinney KSU 10:00 Break 10:15 Corn Processing: Wet Milling, Dry Miling, Dry Grind Ethanol Hurburgh ISU 11:00 Rendering Hamilton/Meeker Darling/Natl. Renderers 12:00 PM Lunch 1:00 Bakery and Dairy Products McKinney KSU 1:30 Ingredient Receiving & Logistics Stark NCSU 3:00 Break 3:15 Problem Exercise 4:00 Recap 4:30 Adjourn VM101: Grain and Feed Mill Operations June 25-29, 2012 (cont'd) June 27th 8:00 AM Medicated Feed Additives Fairfield NGFA Wednesday 9:00 Animal Nutrition & Diet Formulation Megan Smith ISU 10:00 Break 10:15 Vitamins & Minerals Stark NCSU 11:30 Problem Exercise 12:00 PM Lunch 1:00 Particle Size Reduction & Steam Flaking Fahrenholz NCSU 2:00 Batching & Mixing McKinney KSU 3:00 Break 3:15 Pelleting Fahrenholz NCSU 4:45 Recap 5:00 Adjourn June 28th 8:00 AM Pellet Cooling & PPLA Stark NCSU Thursday 9:30 Load Out and Warehouse 10:00 10:15 Break Hazard Analysis of the Feed Industry 12:00PM Lunch 1:00 2:30 2:45 4:30 5:00 June 29th Friday Stark NCSU McKinney KSU Feed Mill Workshops Break Feed Mill Workshops Recap Adjourn McKinney/Stark/Fahrenholz KSU/NCSU McKinney/Stark/Fahrenholz KSU/NCSU 8:00 AM PPE & Conducting a Safe Inspection Epperson AFIA 9:00 Course Assessment & Course Evaluation 10:00 Adjourn 1. 2. 3. 4. 5. 6. 7. The second year project will continue the sector specific training approach Make the basic feed course (FFM) will be made more accessible in an on-demand format as well as in a physical classroom format. This will be done by condensing individual course units into 20-30 minute webinars, each with a 5-10 question self test at the end. The FFM course repeated at North Carolina State, but in a shorter format assuming that participants have seen selected key elements by webinar, in advance. Classroom time can be redirected to problem solving exercises. The structure and materials for the Advanced Feed Manufacturing will be created. The wheat supply chain training( always connecting feed components to the feed course) –production, milling, flour distribution to the baker, feed by products – will be done. Kansas The corn and soybean supply chain training- wet milling, ethanol, dry milling, soy crush, soy expeller plus production and product distribution to second stage will be done in the webinar followed by shorter on-site training format. owa. The basic animal husbandry and nutrition will be expanded to other species beyond cattle and swine, for inclusion in the AFM training. The identification of risk points and priority with industry will be published. Food Safety Plan Dr. Angela Laury Department of Food Science and Human Nutrition Extension and Outreach Food Safety Plan • All companies must have plan by June 2012 • More detailed than a traditional HACCP Plan • New concept of proof of compliance – More than prevention • Companies must evaluate known and reasonably foreseeable hazards • Science (validation) and Risk-based (traditional contamination) prevention strategies (interventions), monitoring (written), and record keeping (traceability) • Each program requires a separate hazard analysis Food Safety Checklist Part 1: Food Safety Program Questions Yes Food Safety Program 1 A documented food safety program that incorporates Quality Management Program has been implemented 2 The operation has designated someone to implement and oversee the food safety program Name______________________________________ 3 All food safety documentation is located in one central location. Where:_____________________________________ 4 Records are kept for two years in an orderly manner. 5 A map of the facility and grounds is available. No N/A Documents, filenames Aflatoxin Years • 1983 • 1988 About the same as 1983 • 2005 SE IA 5-10 counties Summary from 2005 1. Accurate testing 2. Accurate sampling 3. Need for flexibility in testing and sampling 4. Costs incurred by producers for the aflatoxin testing 5. Role of elevator in the sampling and testing process 6. Insurance coverage in bins. 7. Why can't corn go in the bin and still be covered in Iowa? 8. Timely visit by adjuster 9. Consistency among insurance companies 10. Inconsistency in information 11. Consistency in the field testing process 12. Extreme variability within fields 13. International implications for grain < 20 ppb aflatoxin 14. Use of grain > 20 ppb aflatoxin in livestock feed 15. What to do with truck loads of rejected corn 16. Marketing high testing grain 17. Variance for > 300 ppb grain by FDA 18. Co-mingling grain 19. Regulations after grain is at the elevator 20. How to measure the yield for APH if the field is zeroed out because of aflatoxin 21. Can corn be destroyed by leaving it in the field? 22. Can processing destroy aflatoxin? 23. This is beyond the control of producers 24. Worker safety issues in working with this corn The primary education and applied research partner to the global grain handling and commodity utilization industry. INTERNATIONAL CENTER FOR GRAIN OPERATIONS AND PROCESSING INTERNATIONAL CENTER FOR GRAIN INDUSTRY OPERATIONS AND PROCESSING ICGOP Organization – Current Draft $500K over 5 years = Board In kind counts. Companies by themselves or Organizations pool funds Scientific Societies ex Officio Incorporators: ISU, KSU, AAI, KGFA, GEAPS KSU: Lead, Distance Ed. ISU: Issue solving, Ed. February 3, 2012: Kansas City ICGOP Organization – Status • Articles of Incorporation: – Filed in KS – KGFA Official Agent • Tax Exempt Application: – – – – Information under review Submit to Legal Counsel by Aug 1, 2012 GEAPS has offered to pay attorney fees KEY!!: Affiliation Agreements:AKA who does what Attachment A: Sample Affiliation Agreement AFFILIATION AGREEMENT BETWEEN AGENCY 1, AGENCY 2, AGENCY 3…….. THIS AGREEMENT (“Agreement”) is made and entered into as of ________, 20__ by and between Agency 1, hereinafter referred to “AGENCY 1”, and Agency 2, hereinafter referred to as “Agency 2.” WHEREAS, AGENCY 1 is (State Name) not-for-profit corporation that receives funds pursuant to ________________ and provides _________________________________ ______________________________________________________________________ WHEREAS, Agency 2 is (State Name) not-for-profit organization that receives funds pursuant to ________________ and provides _________________________________ ______________________________________________________________________ WHEREAS, AGENCY 1 and Agency 2 recognize the need for and desire to aid in the development of _________________________________________________________ ______________________________________________________________________ NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and intending to be legally bound hereto, the parties hereby agree as follows: I. SCOPE A. AGENCY 1 RESPONSIBILITIES: AGENCY 1 agrees to undertake the following responsibilities with respect to the Affiliation Agreement: 1. Where To Find Us… Analytical Programs Quality Management Systems