[Federal Register Volume 65, Number 214 (Friday, November 3, 2000)]
[Notices]
[Pages 66228-66230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28146]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration


Protein Certification

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final notice.

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[[Page 66229]]

SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) will begin certifying wheat protein content results on any 
specified moisture basis requested by applicants, in addition to 
certifying results on the current 12.0 percent moisture basis. This 
change was requested by importers of U.S. wheat.

EFFECTIVE DATES: May 1, 2001.

FOR FURTHER INFORMATION CONTACT: Paul Manol at GIPSA, USDA, STOP 3632, 
1400 Independence Avenue, SW., Washington, DC, 20250-3632; FAX (202) 
720-1015; or E-mail [email protected].

SUPPLEMENTARY INFORMATION: On May 1, 1978, GIPSA (then the Federal 
Grain Inspection Service or FGIS) began offering official wheat protein 
testing for Hard Red Winter and Hard Red Spring wheat to interested 
parties in the grain industry. An ``as-is'' moisture basis was used to 
calculate protein content, though it could also be determined and 
recorded using any specified moisture basis if requested by the 
applicant for inspection. GIPSA received numerous complaints, mostly 
from foreign buyers, about calculating protein content on an as-is 
moisture basis. These complaints were generally about low protein 
levels which, in part, appeared due to the difference between the U.S. 
and Canadian methods for computing and stating protein content. Canada 
was using a fixed 13.5 percent moisture basis; the U.S. an as-is 
moisture basis calculation. When using an as-is moisture basis to 
certify protein, the certified protein result depends directly on the 
moisture level of the wheat--it is inversely proportional to the 
moisture content. Consequently, as the moisture content of the wheat 
gets lower, the protein content reported on an as-is basis gets higher. 
This phenomenon can give the perception that the protein level 
increased when, in fact, it remained unchanged.
    To address these concerns and increase the uniformity of official 
protein reporting procedures, FGIS proposed, in 1986, to revise its 
Grain Inspection Handbook to certify protein content on a constant 12.0 
percent moisture basis. A 12.0 percent moisture basis was recommended 
by various grower and processor organizations, as well as the Grain 
Quality Workshops, because this percentage represented the average 
moisture content of wheat exported from the United States. Certifying 
protein content on a constant 12.0 percent moisture basis would provide 
buyers and sellers of U.S. wheat results that could be easily evaluated 
and compared with results from other major wheat exporting countries. 
For example, Canada uses a 13.5 percent moisture basis, Australia uses 
either 11.0 percent or ``as-is'', England and Sweden use 15.0 percent, 
and many Eastern European and other countries around the world use the 
dry matter basis. This proposal, announced in the May 30, 1986, Federal 
Register (51 FR 19556), solicited industry comment on this action.
    Comments on the May 30, 1986, proposal generally favored a constant 
moisture basis for protein determination. Some commentors suggested 
using either a dry matter (0.0 percent moisture basis) or a 14.0 
percent moisture basis as the constant. European flour mill purchase 
specifications typically use a dry matter reporting basis, whereas 
American mills rely on a 14.0 percent moisture basis. The majority of 
commentors, including foreign buyers, supported the proposal to 
certificate protein on a constant 12.0 percent moisture basis. 
Consequently, FGIS announced this change in the August 26, 1986, 
Federal Register (51 FR 30323) to become effective May 1, 1987.
    Moving to a constant 12.0 percent moisture basis eliminated varying 
protein results caused by fluctuating wheat moisture levels. To date, 
GIPSA only certifies protein results on a 12.0 percent moisture basis.
    The current 12.0 percent moisture basis requirement for protein 
analysis in wheat may not be fully facilitating the marketing of export 
wheat. A number of U.S. wheat importers have asked GIPSA to provide 
optional certification of wheat protein content results on any 
specified moisture basis requested by applicants, in addition to the 
current 12.0 percent moisture basis.
    To address these requests, GIPSA published a Notice in the October 
1, 1998, Federal Register (63 FR 52681) that solicited comments on 
introducing flexible certification in our protein testing program, in 
addition to maintaining the standardization of results. Allowing 
certification on the 12.0 percent moisture basis and, optionally, on a 
moisture basis requested by the applicant would provide sufficient 
information on the inspection certificate to facilitate the marketing 
of wheat. Although this certification option was developed to address 
the export market's need, it could be used for domestic shipments as 
well. This would be especially true in situations when an exporter is 
originating wheat to fulfill an export contract that requires a 
moisture basis other than 12.0 percent. Therefore, this certification 
option would be available from GIPSA field offices, delegated States, 
and designated agencies. Adopting this action would allow GIPSA and the 
grain industry the greatest flexibility in the certification of wheat 
protein. Protein results would continue to be certified on a constant 
12.0 percent moisture basis on all certificates, but GIPSA also would 
have the flexibility to meet customers' requests for additional 
information.

Discussion of Comments Received

    A total of 22 comments were received from several foreign wheat 
millers and governments (Jordan, Syria, India, and Poland); State Wheat 
Boards/Commissions (California, Idaho, Nebraska, and Oregon); a State 
Department of Agriculture (Wisconsin); U.S. Wheat Associates; and U.S. 
grain industry trade groups (National Grain & Feed Association (NGFA) 
and North American Export Grain Association (NAEGA)). One domestic 
miller also commented on the proposal.
    Thirteen comments favored the notice as it was written; that is, to 
allow for protein certification on any moisture basis requested by an 
applicant as well as the current 12.0 percent moisture basis. These 
comments were from the State Wheat Boards/Commissions, the State 
Department of Agriculture, U.S. Wheat Associates, and several foreign 
entities.
    Two comments (NGFA and NAEGA) opposed the proposal as written. They 
suggested that reporting protein results on 12 percent and alternative 
moisture bases would likely create documentation problems for 
processing letters of credit. They suggested using one basis or the 
other, but not both.
    The remaining seven comments, from foreign entities, suggested 
reporting results on any moisture basis requested; a 12 percent basis; 
an ``as-is'' basis; or a dry matter basis. One commentor suggested 
certifying the testing methodology.
    Producer groups tend to favor certifying protein content on a 12-
percent and any requested moisture basis. Their rationale is that dual 
certification would alleviate any ``misperception'' that a grain 
handler could purchase grain on a 12-percent basis and subsequently re-
market the same lot of grain using a lower moisture basis, thereby 
``increasing'' the protein content. This was one of the concerns about 
GIPSA's original policy that certified protein content on an ``as-is'' 
basis.
    Other comments in support of the change concurred that it would add 
flexibility to the U.S. wheat marketing system and allow the U.S. 
industry to

[[Page 66230]]

better meet its customers needs. The change would allow buyers to 
better compare U.S. wheat to that of other wheat exporting countries 
and reflect the U.S. wheat industry's commitment to meet customers' 
needs. Further, it was suggested that the change would allow the 
national protein certification system to retain its uniformity and meet 
customers' specific contract needs.
    GIPSA believes that introducing flexible certification in the 
protein testing program, in addition to maintaining standardization of 
results, will have a positive impact on export and domestic markets. We 
do not believe that this change would create documentation problems for 
processing letters of credit as two commentors suggested. On the 
contrary, providing for this option in the certification program will 
give the market the flexibility that it needs. Further, alternative 
protein reporting would be only used on a request basis. The effective 
date of this change is May 1, 2001. This will allow sufficient time for 
interested persons to become familiar with this option and allow the 
industry to make any adjustments deemed necessary.
    Protein analysis and certification by GIPSA has always been 
optional; that is, buyers and sellers contractually agree whether or 
not to request official protein testing services. Wheat protein content 
would be certified on an alternative moisture basis only upon specific 
request by an applicant. In lieu of such a request, wheat protein would 
continue to be certified on the current 12.0-percent moisture basis. 
Overall, this certification option would allow GIPSA and the grain 
industry the greatest flexibility in the certification of wheat 
protein.
    Accordingly, GIPSA will begin certifying protein content in wheat 
using the current 12.0 percent moisture basis and any other moisture 
basis requested by an applicant. This certification option will go into 
effect May 1, 2001. GIPSA field offices, delegated States, and 
designated agencies will be responsible for the applicable mathematical 
calculations for certification using the following industry recognized 
formula:
[GRAPHIC] [TIFF OMITTED] TN03NO00.025

Where:
X = the protein content at a moisture basis other than 12.0 percent 
requested by an applicant.
P = the protein content determined at a 12.0-percent moisture basis.
PX = the moisture basis specified by the applicant (using the 
``official'' moisture meter results if the applicant requests protein 
content be certified on an ``as-is'' basis).

    For example, if an applicant requests that protein results also be 
certified on a dry matter or 0.0 percent moisture basis and the protein 
content of the lot was determined to be 13.5 percent on a 12.0 percent 
moisture basis, the following calculation would be used to obtain the 
alternate protein result:
[GRAPHIC] [TIFF OMITTED] TN03NO00.026

    Further, the statement on the certificate would read as follows:

    Protein 15.3%, dry matter basis, which converts to 13.5% 
protein, 12.0% moisture basis. Protein content reported on an 
alternative moisture basis in addition to the U.S. standard 12.0 
percent moisture basis at applicant's request.

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.)

    Dated: October 30, 2000.
David Orr,
Acting Administrator, Grain Inspection, Packers and Stockyards 
Administration.
[FR Doc. 00-28146 Filed 11-2-00; 8:45 am]
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