[Federal Register Volume 67, Number 151 (Tuesday, August 6, 2002)]
[Notices]
[Pages 50853-50854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19668]


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 Notices
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  Federal Register / Vol. 67, No. 151 / Tuesday, August 6, 2002 / 
Notices  

[[Page 50853]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Chapter I

Grain Inspection, Packers and Stockyards Administration

7 CFR Chapter VIII


Facilitating the Marketing of U.S. Agricultural Products With New 
Testing and Process Verification Services

AGENCY: Agricultural Marketing Service; Grain Inspection, Packers and 
Stockyards Administration, USDA.

ACTION: Notice.

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SUMMARY: In response to market needs, the U.S. Department of 
Agriculture's (USDA) Agricultural Marketing Service (AMS) and Grain 
Inspection, Packers and Stockyards Administration (GIPSA) have 
developed and are planning to develop additional voluntary testing and 
process verification programs to facilitate the marketing of 
agricultural products.

FOR FURTHER INFORMATION CONTACT: Marianne Plaus, Chief, Market Analysis 
and Standards Branch, Federal Grain Inspection Service, GIPSA, USDA, 
1400 Independence Avenue, SW., Room 1641-S, Washington, DC 20250-3630; 
e-mail: [email protected]; tel: 202-690-3460; fax: 202-720-1015.

SUPPLEMENTARY INFORMATION: The marketing structure of the U.S. food and 
feed industry is undergoing significant change as it moves from a 
supply-driven to a consumer-driven market. The emergence of value-
enhanced commodities and a niche market for non-biotechnology-derived 
commodities have created a greater need to differentiate products in 
the handling system. In light of these changes, USDA sought public 
comment, through an Advance Notice of Proposed Rulemaking (ANPR), on 
how USDA can best foster the marketing of grains, oilseeds, and other 
commodities in this evolving marketplace. The ANPR, which USDA's GIPSA 
and AMS published on November 30, 2000, in the Federal Register (65 FR 
71272), closed on April 16, 2001. As a result of that ANPR, many 
respondents expressed a clear need for USDA to facilitate the marketing 
of products, not through the traditional grades and standards, but 
through the exchange of information and services concerning analytical 
testing and various marketing mechanisms, such as identity preservation 
and process verification. In response to market needs, USDA's AMS and 
GIPSA have begun to provide and are planning to develop a variety of 
programs and services to facilitate the marketing of agricultural 
products, as discussed below.

Standardizing Testing Methodology

    The rising importance of value-enhanced products with specific 
quality attributes and the emergence of a non-biotech niche market have 
created a need in the marketplace for additional testing and 
standardization procedures. USDA's experience in providing testing, 
weighing, and inspection services provides a strong foundation to 
enhance the accuracy, standardization, and availability of tests for 
new value-enhanced products. To this end, USDA's AMS and GIPSA have 
begun to provide a variety of programs and services to meet market 
needs.

Sampling Guidelines

    Recognizing that sampling is the single largest source of error in 
the analysis of grains, GIPSA developed and offered sampling guidelines 
to the grain-handling industry. As industry interest develops, AMS will 
provide a similar service for seed, fruit, and vegetable markets.

Proficiency Programs

    At the Agency's Technical Center in Kansas City, Missouri, GIPSA 
conducted a Proficiency Study to assess the capability and reliability 
of DNA-based testing for U.S. commercialized biotechnology events in 
corn. This study provided evidence of a need for standardization and 
quality assurance tools in biotechnology analysis. On February 7, 2002, 
GIPSA began offering a voluntary Proficiency Program for organizations 
testing for biotechnology-derived grains and oilseeds to help improve 
the reliability of testing. As industry interest develops, AMS will 
provide a similar service for seed, fruit, and vegetable markets.

Rapid Test Performance Evaluation Programs

    At GIPSA's Technical Center, the Agency also evaluates the 
performance of rapid tests developed to detect biotechnology-derived 
grains and oilseeds, and confirms the tests operate in accordance with 
manufacturers' claims. As industry interest develops, AMS will provide 
a similar service for seed, fruit, and vegetable markets at its 
laboratory facility in Gastonia, North Carolina.

Testing Services

    AMS and GIPSA intend to provide voluntary testing services using 
rapid test kits and other testing technology whose performance the 
Agencies have verified.

Methods Development

    AMS and GIPSA continue to develop methods and evaluate commercial 
test instrumentation to measure end-use value attributes that are 
meaningful to the marketplace. Examples of such attributes include oil 
concentration in soybeans and corn and protein concentration in wheat 
and soybeans.
    USDA will continue to monitor market trends and needs and will 
continue to expand its testing and standardization programs in response 
to market need. If new regulations are necessary, USDA will propose 
them when appropriate. At this time, USDA is not proposing any 
rulemaking or regulatory actions.

Process Verification

    Many of the ANPR respondents also described a wide variety of 
differing identity preservation and marketing systems used in the 
private sector. Given the growing importance of these marketing systems 
as more value-enhanced grains enter the commercial market and the non-
biotech niche market continues, USDA is exploring options for expanding 
its process verification programs to include seeds and bulk commodities 
such as grains and oilseeds. USDA's experience in providing voluntary, 
audit-based programs for fruits, vegetables, and

[[Page 50854]]

livestock products provides a strong foundation upon which to expand.

Voluntary Market-Based Process Verification Program for Seeds

    Under the authority of the Agricultural Marketing Act of 1946, 7 
U.S.C. 1621-1627, USDA's AMS anticipates that it will propose a 
voluntary, audit-based system of process verification for the 
production and labeling of seed. This program would be based on 
existing seed certification (or equivalent) standards and procedures, 
and existing AMS process verification programs, with additional quality 
assurance criteria as needed to substantiate label claims regarding 
seed quality, including genetic purity. This program will be based on 
market need and is expected to be of particular benefit to participants 
who intend to market seeds that have regulatory restrictions or 
concerns with transgenic event(s) that have been deregulated and 
commercialized in the United States but not in certain other markets.
    Under this program, AMS would verify that minimum criteria for seed 
production and handling have been followed, thus providing a reasonable 
assurance that claims regarding seed quality and genetic purity are 
truthful. AMS will use auditing documentation and onsite monitoring in 
the process verification program for seeds. AMS will certify that the 
seed lots produced under this program have met established quality 
assurance criteria. A statement could be included on a seed label to 
the effect that USDA-approved quality assurance procedures have been 
followed. Seed buyers will be assured that appropriate production and 
handling practices were followed to ensure the accuracy of seed quality 
claims.
    Further, minimum seed certification standards and procedures, as 
well as labeling requirements, are published in the Federal Seed Act 
regulations (7 CFR 201). The Federal Seed Act, 7 U.S.C. 1592 et seq., 
is a truth-in-labeling law that applies to agricultural and vegetable 
seed in interstate commerce. In addition to labeling requirements of 
the Federal Seed Act, additional information is allowed on the seed 
label, provided the claims are truthful. Additional label claims could 
include information pertaining to identity preservation of the seed 
lot, specific claims regarding genetic purity or maximum level of 
occurrence of transgenic material. Under the Federal Seed Act, 
techniques similar to those under the prospective 1946 Act program, 
could be used to support any additional claims.

Voluntary Market-Based Process Verification Program for Agricultural 
Commodities

    Under the authority of the Agricultural Marketing Act of 1946, 
USDA's GIPSA anticipates that it will propose a voluntary, audit-based 
system of process verification for grains, oilseeds, rice, pulses, and 
products derived from these products. The proposed system will involve 
defining minimum requirements for process-based programs to provide 
assurances through third party process verification services. This 
program will be based on internationally-recognized quality management 
system standards. The program will verify existing quality system plans 
developed by the private sector. It will be flexible enough to 
incorporate, where appropriate, already existing standards and 
procedures such as those developed by private organizations. At the 
same time, the program will have sufficient safeguards to ensure the 
integrity of its results. This program will be based on market need and 
is expected to be of particular benefic to participants who intend to 
market commodities with specific end-use attributes or that have 
regulatory restrictions or concerns with transgenic event(s) that have 
been deregulated and commercialized in the United States but not in 
certain other markets.
    Under this prospective program, GIPSA would verify that minimum 
requirements for commodity production, handling, and processing have 
been followed. GIPSA will verify compliance with the requirements by 
reviewing required process documentation plans and auditing the 
performance adherence to the prescribed plan to ensure the plan is 
followed. GIPSA will certify as to the market partipants' adherence to 
their processes, when applicable.
    GIPSA and AMS plan to propose process verification service programs 
in the Federal Register in the near future.

    Authority: 7 U.S.C. 71 et seq. and 7 U.S.C. 1621 et seq.

    Dated: July 31, 2002.
Donna Reifschneider,
Administrator, Grain Inspection, Packers and Stockyards Administration.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-19668 Filed 8-5-02; 8:45 am]
BILLING CODE 3410-EN-U