Transcript Slide 1

IP Issues and Traceability
in the Marketplace
Crop Biotechnology Update Conference
September 21-22, 2005
Dr. Gary M. Beil
Minnesota Crop Improvement Association
Current IP Issues
Background Information
It is estimated that:
•389 farms account for 10% of the agricultural
production in the US
•Just over 1% of the farms in the US account
for nearly 50% of the total agricultural
production
•More than 50% of the food consumed in the
US is produced outside of the US
Current IP Issues
MCIA – An Example of a Service Provider in
Transition
MCIA now operates in global agri-food industrial sector:
•Changed the demand for how MCIA’s core
competencies are applied to this sector
•MCIA staff has had to receive additional academic and
technical training in order to apply these core
competencies to meet the demands of this complex
global food sector
•MCIA has had to expand the portfolio of service
products we offer to our customers
Current IP Issues
MCIA – An Example of a Service Provider in
Transition
As we talk about the key growth areas for MCIA in the
future, we seem to speak a new language – new terms are
replacing the traditional jargon of our trade:
•Organic handlers and organic producers
•JAS and EU accreditation
•Livestock accreditation
•Insourcing
•Accreditation and auditing services
•ISO accreditation
Current IP Issues
MCIA – An Example of a Service Provider in
Transition
Technology remains a vital part of who we are and what we
do. But we now have to apply what we do in different ways:
•Moved from verifying seed purity to trait identity
•No longer single trait identity
•Stacking and complementing traits will become standard
issue
•We will move from traits benefiting producers to traits
benefiting consumers
Current IP Issues
MCIA – An Example of a Service Provider in
Transition
MCIA’s opportunities must be focused on selling third party
independent verification services and other related products
required by the complex global agri-food industry our clients
operate in today.
•MCIA’s business horizon changed from a focus on the
seed portion of the food distribution chain to serving all
segments of the global agri-food industry
Traceability in the Marketplace
Three signs at the Flagship Athletic Club (FAC) tell the story:
1. “FAC bans guns from these premises.”
2. “No cellular telephones are allowed in the club.”
3. “FAC is a wireless internet facility.”
Traceability in the Marketplace
Traceability has become investment worthy
•
Food producers have built systems to track
grain in a cereal box back to the farm.
•
Apples used in juices are now traced back to
the orchard.
•
Major fast food restaurants can trace the grain
used in buns back to the farm.
Traceability in the Marketplace
What is Traceability?
ISO Definition: “The ability to trace the history, application or
location of an entity by means of recorded information.”
•
In the food chain: “The ability to trace and follow a food,
feed, food-producing animal or substance through all stages
of production and distribution.”
•
In production systems: “The ability to trace the history of the
product through the supply chain to or from the place and
time of production, including the identification of the inputs
used and production operations undertaken.”
Traceability in the Marketplace
Traceability is electric connectivity
with all phases of the food chain
TRACEABILITY MUST INCLUDE:
1. A logical chain of events that can be connected
2. Process Management - A process that can be managed and
supply credible information
3. Process Verification - Credible independent verification of the
process
Traceability in the Marketplace
Traceability is electric connectivity
with all phases of the food chain
TRACEABILITY MUST INCLUDE:
1. A logical chain of events that can be connected
2. Process Management - A process that can be managed and
supply credible information
3. Process Verification - Credible independent verification of the
process
Traceability in the Marketplace
Traceability is electric connectivity
with all phases of the food chain
TRACEABILITY MUST INCLUDE:
1. A logical chain of events that can be connected
2. Process Management - A process that can be managed and
supply credible information
3. Process Verification - Credible independent verification of the
process
Traceability in the Marketplace
Why Traceability?
What is driving production agriculture to traceability?
GOVERNMENT MANDATES
Europe – Regulation EC/178/2002 defines traceability as the ability to trace and
follow food, feed and ingredients through all stages of production, processing and
distribution.
•Applicable from January 1, 2005
•Importers similarly affected: Must be able to identify from whom product was
exported in country of origin
•At a minimum, businesses must be able to:
•Identify the immediate supplier of the product
•Identify the immediate recipient of the product (except final retailer)
•e.g. one step back – one step forward
Traceability in the Marketplace
Traceability Drivers
FOOD SAFETY
•Reduce the risk of contamination of our food supply
•Increase the ability to react to inferior product performance
•Increase the probability of Safe Quality Food supplies
Traceability in the Marketplace
Traceability Drivers
MANAGEMENT OF RISKS
•A way to manage (minimize) liability
•Reduce business risks
Traceability in the Marketplace
Traceability Drivers
TERRORISM
•Identification of pathways
•Early detection and rapid response
•Development of control mechanisms
Traceability in the Marketplace
Traceability Drivers
BENEFITS FOR PRODUCERS
•Application of Process Management procedures can result
in more efficient production
•Provides vehicle to differentiate food products
•Will you sell more product?
•Difficult to assess
•Add costs
•Premiums??
•Larger Question – Will you be able to sell your product
without some sort of traceability?
Traceability in the Marketplace
TRACEABILITY SYSTEMS
Product Based
Process Based
Traceability in the Marketplace
TRACEABILITY SYSTEMS
Product Based Systems
•Seed Certification
•AOSCA/MCIA IP Grain Program
•Grain Testing Procedures
•PCR and other Genetic Tests
•Strip Tests
•Certificate of Analysis
•Any document that describes the product
and stays with the product through the chain
Traceability in the Marketplace
TRACEABILITY SYSTEMS
Process Based Systems
•ISO Based Quality Management systems
•Development of a Quality Manual
•Audit Procedures
•3rd Party Verification
•AOSCA/MCIA audited grain traceability program
•HACCP Based systems
Hazard Analysis and Critical Control Point
(Continued on next slide)
Traceability in the Marketplace
TRACEABILITY SYSTEMS
Process Based Systems (Continued)
•“Safe Quality Foods” – SQF
Applies HACCP and ISO type procedures to the
food distribution system
•EUROPGAP Certification – a process to assure producers
are producing under Good Agricultural Practices (GAP)
•Food Cert-NL – certifies individual growers under
EUROGAP standards
•AIB – process verified in the baking industry
•State “GAP” programs
IP Issues and Traceability
in the Marketplace
Crop Biotechnology Update Conference
September 21-22, 2005
END
Dr. Gary M. Beil
Minnesota Crop Improvement Association