Milling & Baking News - June 4, 2019 - 28

Food Ingredient Solutions

the certainty of another market for
organic grain that may be more local
than what they previously had access
to. So producers can be more confident in their decision to go through
the organic certification process."
ADM plans to expand the portfolio with organic whole wheat flour as
well as organic starch and gluten, Mr.
Like said. ADM's organic portfolio already includes ancient grains, beans

and pulses, nuts and seeds, and flavors and colors.
Miller Milling Co., Minneapolis,
planned to enter the organic wheat
flour market after achieving organic
certification at its Fresno, Calif., facility. The company launched a Miller's
Yosemite Organics flour product line.
Bread flour, baker's flour and tortilla
flour will be available through the
line. Organic semolina and durum

flour also will be available.
Ardent Mills, Denver, launched an
organic initiative in December 2015
designed to double the amount of organic wheat acres in the United States
by the year 2019.
"We have made tremendous progress since we were the first in the industry to launch an organic initiative,"
said Shrene White, general manager,
The Annex by Ardent Mills. "We are

Three years of patience:
Industry assists farmers transitioning to organic

armers transitioning to organic need patience, as in three years
of patience. They must use organic farming practices for three
years before their harvested product qualifies as organic - and
thus the premium price organic brings, according to the U.S. Department of Agriculture's National Organic Program.
Assistance for wheat farmers is coming from millers and grainbased foods manufacturers. They want to capitalize on growing organic sales but need the organic wheat and other organic grains to
do so.
The Organic Trade Association, Washington, addressed the transition phase in a report released in February called "U.S. Organic Grain
- How to Keep It Growing." U.S. farmland devoted to the production
of organic corn, soybeans, wheat, oats and barley grew by over 20%
to 765,000 acres in 2016 from 626,000 acres in 2008, according to
the report.
The report listed three key obstacles to switching to organics:
* The lack of markets for lower value rotation crops that boost soil
fertility and suppress weeds;
* Insufficient technical assistance and farm management resources; and
* Risk associated with the high cost of transitioning to organic and
the uncertain market guarantee at the end of the transition period.
"Because organic management systems require longer-term
planning to improve soils and optimize yields, this short-term volatility can be challenging for newly transitioned farmers, especially if
\

U.S. organic grain acreage
800,000

Wheat

600,000
Oats
400,000
Soybeans
200,000
0
2008

Corn
2010

Barley
2012

2014

Source: U.S. Department of Agriculture, NASS Quickstats Database

28 / June 4, 2019

Milling & Baking News

2016

Top 5 states: Acreage in organic grains
100,000
2014
2015
2016

75,000
50,000
25,000
0

Montana

Iowa

Minnesota Wisconsin Wyoming

Source: U.S. Department of Agriculture, NASS Quickstats Database

they do not have the right coaching and resources to manage long
term for more variables than just short-term price and yield," the
O.T.A. said.
Reasons to take the organic risk were evident as well. Overall
among wheat, corn, barley and oats, the organic premium price increased to 2.5 times the conventional price in 2016 from 1.5 times in
2011, according to the report.
To reach organic status, growers need coordinated assistance over
the three-year transition period. Such assistance already is occurring.
Kashi, a brand owned by Kellogg Co., Battle Creek, Mich., in
2016 introduced a breakfast cereal made with a Certified Transitional ingredient: hard red winter wheat processed by Hesco/Dakota Organic Products, part of Healthy Food Ingredients, Fargo, N.D.
Quality Assurance International, San Diego, had given the Certified
Transitional approval.
In February 2018, Kashi said it will source Certified Transitional
ingredients from more than 4,200 acres of U.S. farmland, a 400%
increase from 2016. Kashi products in the Certified Transitional portfolio in February 2018 included Cinnamon French Toast cereal, Dark
Cocoa Karma Shredded Wheat Biscuits and Chewy Nut Butter Bars.
Ardent Mills, Denver, provides subsidies and educational resources
to help wheat farmers move from conventional to organic crops.
Bay State Milling Co., Quincy, Mass., offers a transitional grain premium, said Shawn Hachtel, specialty commodity buyer.
"We collaborate with select wheat farmers by offering transitional

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - June 4, 2019

Table of Contents for the Digital Edition of Milling & Baking News - June 4, 2019