World Grain - June 2017 - 89

FEATURE: ORGANIC GRAINS IN DEMAND

INSIGHT ON ORGANIC GRAINS:
Mercaris provides supply and pricing data

cluding Red Star organic block yeast and
Saf-Pro 40 Organic, a deactivated yeast
WKDWSURYLGHVÀDYRUDQGUHOD[LQJDFWLYLW\
in doughs.
AB Mauri launched an organic line of
GRXJKVWUHQJWKHQLQJ DQG H[WHQGHG VKHOI
life systems in October 2015. The original portfolio focused on organic, enzymeEDVHG R[LGDQW H[WHQGHG VKHOI OLIH DQG
conditioning systems, said Paul Bright,
innovation manager for AB Mauri North
America, St. Louis, Missouri, U.S.
"Since the introduction of our organicFHUWL¿HGGRXJKFRQGLWLRQLQJDQGEUHDGVRIWening lineup 18 months ago, we have continued to add to our offerings," Bright said.
AB Mauri has added two organic
white distilled vinegars in both 120- and
300-grain options. The company in 2016
introduced a line of Non-GMO Project
YHUL¿HG GU\ \HDVW SURGXFWV IURP LWV
9HUDFUX]0H[LFRIDFLOLW\
³7KHRUJDQLFWUHQGLVGH¿QLWHO\WKHUH
and our customers are increasingly making these products available to consumers
demanding an organic bakery option,"
Bright said. "There is a strong correlation
between the growth in organic and the
demand by consumers for greater transparency in product labeling and their desire to know more about the foods they
are eating."
Cargill, Minneapolis, Minnesota, U.S.,
recently added soybean oil, high-oleic
VXQÀRZHURLODQGGHRLOHGFDQRODOHFLWKLQ
to its organic portfolio, said Julie Robey,
strategic marketing leader, global edible
oils solutions for Cargill.
"When companies decide to switch to
organic products, they need to make sure
they have a secure supply pipeline of organic ingredients to deliver on their brand
promise," she said. "Cargill can help customers achieve peace of mind through assured supply, a history of quality and food
VDIHW\ IRUPXODWLRQ DQG VXSSO\ FKDLQ H[pertise, as well as cost management."
Jeff Gelski is associate editor of Milling & Baking
News, sister publication of World Grain. He may
be reached at jgelski@sosland.com.
We want to hear from you - Send comments and
inquiries to worldgrain@sosland.com. For reprints of
WG articles, e-mail reprints@sosland.com.

www.World-Grain.com / World Grain / June 2017

The first survey took place in 2012. Then
Mercaris officially launched as a company about
three years ago, seeking to fill a market need
for data such as acreage and pricing on organic
grains, said Alex Heilman, director of sales.
"We essentially created the largest organic
and non-GMO grain survey across North
America," he said.
Mercaris, based in Silver Spring, Maryland,
U.S., through its data plans provides information on organic and non-bioengineered/nonGMO corn, organic and non-bioengineered/
non-GMO soybean, and organic wheat. The
company in the future hopes to add soybean
meal and oils, said Heilman, who previously
worked in commodity sales and merchandising for Miller Milling Co., Minneapolis, Minnesota, U.S.
Kellee James, chief executive officer,
founded Mercaris after spending five years at
start-up company Chicago Climate Exchange
(CCX), an electronic trading platform and registry for spot, futures and options on carbon,
sulfur, clean energy and other environmental
derivatives. Chris Duesing, co-founder and
chief technology officer for Mercaris, has 15
years of experience in software development
and most recently was the director of application development for the CCX.
Mercaris publishes monthly market updates,
quarterly imports reports, an annual acreage
report and annual commodity reports. Pricing,
at a minimum, comes out once a week, Heilman said.
"That is the bulk and backbone of what we
do," he said of pricing.
Mercaris runs national average prices and
also breaks out prices regionally, between
food and feed and between spot and forward.
Mercaris divides regions into three in the
United States and two in Canada.
A Mercaris Auction Platform, an electronic
venue, facilitates the buying and selling of
identity-preserved agricultural commodities.
Mercaris on April 13 said more than 280,000
bushels of organic grain had been traded
year to date on the on-line platform, which
was more volume than traded in all of 2016.
The auction covers organic, transitional and
non-bioengineered/non-GMO corn, soybeans,
wheat and other small grains.
For its clients, Mercaris offers several different data plans, Heilman said. A less expensive
one is geared toward farmers. A more inclusive data plan is geared toward large grain

companies, large dairies, consumer product
goods companies and venture capitalists.
A geospatial mapping tool helps support
the milling industry specifically. It may show
potential areas of opportunity, where voids in
the market may be and where competitors are.
To obtain data, Mercaris surveys the first
handlers of grain, primarily elevators. About
60 first handlers participate in the survey.
"Those participants are everyone from
small, regional, one-location elevator (operations) all the way up through some large multinational companies that maybe have 25-plus
locations," Heilman said.
Non-disclosure agreements are signed. Grain
handlers share volume pricing and other data.
Mercaris aggregates the data to publish reports.
Mercaris also tracks imports of organic
wheat, corn and soybeans. Imports account
for more than 50% of domestic consumption
in each of those three organic crops, Heilman
said. Organic durum wheat imports in 2016
reached 976,000 bushels at an average price
of $13.76 per bushel on a delivered cost basis,
according to the U.S. Department of Agriculture's Foreign Agricultural Service. Organic
soybean imports in 2016 reached 13.8 million
bushels worth $270 million, and organic yellow dent corn imports reached 21.7 million
bushels worth $160.4 million.
Mercaris reported domestic organic acreage
in 2016 of 482,207 for wheat, 292,919 for
corn and 150,789 for soybeans.
Exports of organic wheat, corn and soybeans grown in the United States hardly exist
because of demand from domestic buyers.
"Organic demand completely outpaces
organic supply domestically," Heilman said.
"This market does need to grow pretty drastically."
Tracking organic pricing and supply has become less difficult over the past few years.
"When we first started doing this, the organic markets essentially were really shrouded
in secrecy," Heilman said. "There wasn't necessarily a drive for more market transparency.
There were a few larger players who had kind
of cornered the market, so to speak, and so
more insight was not necessarily a good thing.
"However, the industry has changed pretty
significantly in the last couple of years. There
are also a lot more smaller players that are
stepping in who really do rely on a little more
market transparency in order to grow their
business and also grow their access to acres."
89

http://www.World-Grain.com

World Grain - June 2017

Table of Contents for the Digital Edition of World Grain - June 2017