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Conveyor Currents                       September 25, 2015       
In This Issue
CGFA Feed Manufacturing Study Group Meeting Notice
You're Invited to CGFA Career Fairs
CGFA District Meeting: October 12th
Senate Approves Grain Inspection, Meat Pricing Bill
FDA Publishes Final FSMA Feed, Pet Food Rule; AFIA Identifies Key Components
FDA, Industry Plan Webinars, Meetings to Explain Final FSMA Feed Rule, Compliance
EPA Silent on Final RFS Action; Companies Slam White House Policy; USDA Spends on Ethanol Pumps
Pope Francis Calls on Congress to Work Together
USDA Extends Dairy Margin Protection Program Sign-up
Positive Train Control Implementation Deadline Could Negatively Affect Rail Service
Heavy Truck Bill Introduced
House Ag to Hear Vilsack, Burwell Explain Plans on Federal Dietary Guidelines
Senate GOP Introduces Bill to Kill WOTUS; Groups File Petition for Review, Vacate Rule
Russia Contemplates Permanently Cutting Off All U.S., EU Meat Imports
Statement by House Speaker John Boehner
CGFA Careers Center
Upcoming Dates
 

2016

October 12: CGFA Day At The Races Fresno

(flyer)

 

January 13-14, 2016: 

Grain & Feed Industry Conference

The Embassy Suites on Monterey Bay

April 27-30, 2016:

CGFA Annual Convention The Manchester Grand Hyatt San Diego 

 

May 4-5, 2016

 California Animal Nutrition Conference at the DoubleTree by Hilton Fresno Convention Center      

Fresno, CA 

 

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CGFA Feed Manufacturing Study Group Meeting Notice

Chairman John Austel and CGFA staff have scheduled the next meeting of the CGFA Feed Manufacturin
g Study Group for Thursday, October 29th from 9:30 am until approximately 12:00 noon.   The meeting will take place at the Clarion Hotel in the Vineyard  Room - 1612 Sisk Road, Modesto, CA 95350 (209) 521-1612.  The committee will be discussing Food Safety Modernization Act final rule "Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Food for Animals"  as well as other issues and concerns facing the industry.   Please RSVP if you will be able to attend this meeting by Friday, October 23rd - by email or phone (916) 441-2272.

You Are Invited to CGFA Career Fairs

CGFA will be participating in four upcoming career fairs at each of our target universities this Fall. Our goal is to provide members of CGFA with the opportunity to connect with qualified students and spread awareness of the growing number of diverse opportunities available in the grain and feed industry. CGFA will have a booth at the following events:
 
Careers in the California Grain and Feed Industry
Careers in the California Grain and Feed Industry
Cal Poly San Luis Obispo
October 7-8
9:30AM - 1:30PM 
 
UC Davis
October 14
10:00AM-2:00PM
 
CSU Fresno
October 20
11:30AM-3:00PM
 
CSU Chico
November 4
                                                                            10:00AM-2:00PM
 
CGFA will be covering the booth cost for these fairs in order to provide our members with the opportunity to attend, participate, and engage in the associated activities. This opportunity allows you to attend as a member of CGFA and represent your company if you wish to share potential career opportunities available.
 
We invite and encourage you to participate in these events as a member at the CGFA booth! Please email [email protected] if you are interested in attending one or more of the career fairs.
 
Be sure to post any available job openings on the CGFA Career Center website, whether you can attend or not to take advantage of the pool of potential candidates that will be in attendance at these career fairs! We also ask that you follow and engage with CGFA on our social media channels (Facebook, Twitter, LinkedIn, YouTube), and incorporate a link to the CGFA Career Center and the CGFA Career Video on your company website to help share these valuable resources.
 
We encourage all members to participate in the events taking place in your area, especially if you are an alumni of one of the above listed universities. Please take a look at the locations and times of each of these career fairs and email [email protected] if you are interested in attending. Feel free to reach out with any additional questions you may have regarding these events.
 
CGFA District Meeting: October 12th Day At The Races
Pleas join California Grain & Feed Association on
Monday, October 12, 2015
 The Big Fresno Fair in Fresno, CA at the Races
 
Live horse racing is back in the Brian I. Tatarian Grandstand at The Big Fresno Fair, with plenty of hoof-pounding action!  Don't miss the excitement of live horse racing; it's only here once a year. Your registration includes admission to the fair and an air conditioned seat at the exclusive Turf Club. Dinner will be on your own after the races - some may want to stay at the fair and enjoy the other activities and others may want to head out after the races - we'll leave that to you.
 
Win, Place or Show - You Will Want To Be There!!  Only $22.00 per person - Meet the group at 12:30 PM - Post time is 1:15 PM - Limit First 40
 
QUESTIONS? Call us at (916) 441-2272 
Email Donna Boggs  [email protected] 
Email Nicole Dominguez  [email protected]

[Click here to register]


Senate Approves Grain Inspection, Meat Pricing Bill


The grain industry this week won a major victory when the full Senate approved a compromise grain standards/meat pricing bill that includes authority for private inspection of grain for export when government inspectors aren't available due to labor disputes and when both buyers and sellers agree.  The Senate Agriculture Committee approved the bill late last week, and final approval came on a unanimous consent vote. 

Also included in the legislation is reauthorization of meat price reporting, as well as extension of the National Forest Foundation Act.  Both grain inspection and meat price reporting laws were set to expire September 30, and are now reauthorized through 2020.  Also included is a requirement that USDA immediately report to Congress on how it plans to handle a potential labor disruption at a grain inspection facility. 

The Senate's bill is supported by the House Agriculture Committee after much negotiation between the House and Senate agriculture committees.  The changes, said Sen. Pat Roberts (R, KS), Senate Agriculture Committee chair, provide "improved transparency and predictability throughout the federal grain inspection system." It is expected the House will adopt the Senate version of the bill as early as next week.

FDA Publishes Final FSMA Feed, Pet Food Rule; AFIA Identifies Key Components

FDA September 17 published the long-awaited final feed rule under the Food Safety Modernization Act (FSMA), arguably the most sweeping changes in how animal foods are regulated in 70 years.  Entitled  "Current Good Manufacturing Practice and Hazard Analysis and Risk-Based Preventive Controls for Food for Animals," publication sets off a staggered compliance date schedule, with compliance dates set one, two, three or four years off from the date of publication, depending on the size of the firm. Full details of the rule can be found at www.fda.gov, and following prompts to the special section on FSMA. 

FSMA was signed into law on January 4, 2011, and provides FDA with sweeping new authorities designed to prevent food safety episodes.  FSMA authorizes FDA to promulgate new rules for preventive controls, develop performance standards, create new administrative detention rules, provides authority for mandatory recall of adulterated products and provides authority for hiring more than 4,000 new field staff among other provisions. 

It is unclear whether Congress will provide sufficient funding to fully implement the law, though top FDA officials appeared on Capitol Hill last week asking Senate appropriators for at least another $109 million for FY2016 to implement FSMA.  Since 2010, FDA has received $162 million to implement FSMA, and Congress has already rejected the Obama Administration's request for user fee authority to fund FSMA implementation, only saying FSMA funding would be a top priority "if we have extra money to spend."

Highlights of the rule as identified by the American Feed Industry Assn. (AFIA), include the following: 
Compliance dates -- AFIA and others in the animal food industry told the agency the original compliance dates proposed by FDA for implementing the rule would be difficult to meet given the drastic new requirements for the industry, especially related to Current Good Manufacturing Practices (CGMPs). The majority of the animal food industry has not operated under regulated CGMPs, except for the production of medicated feed. Additional time was requested for animal food facilities to be allowed to focus on implementing CGMPs first, and then an additional year to implement the hazard analysis and preventive control aspects of the rule.  FDA has set the following compliance dates for the rule:     
            
Business Size                  CGMP Compliance Date     Preventative Controls Compliance Date

"Large" Businesses                 1 year - Sept. 17, 2016              2 years - Sept. 17, 2017
(other than small and 
very small businesses)

Small business                       2 years - Sept. 17, 2017             3 years - Sept. 17, 2018
(employing fewer than 
500 full-time employees)

Very small business*               3 years - Sept. 17, 2018             4 years - Sept. 17, 2019**

 *A business averaging less than $2.5 million per year, during the three-year period preceding the applicable calendar year in sales of animal food plus the market value of animal food manufactured, processed, packed or held without sale (e.g., held for a fee or supplied to a farm without sale.)

**Except for records to support its status as a very small business, which a company must start maintaining on Jan. 1, 2017.

Can CGMPs be used to control the identified hazards that require preventive controls? AFIA contends nearly all hazards in an animal food plant can be controlled by adherence to CGMPs, except for pet food plants where preventive controls will need to be applied to control microbial hazards.  AFIA continues to believe such an approach would significantly lessen the cost for both types of animal food plants, and urged FDA to acknowledge this in the final rule.  At this time, in reviewing the rule and after an initial discussion with FDA staff, it is believed FDA has agreed that CGMPs can control an identified hazard; however, facilities need to treat CGMPs as a preventive control, meaning facilities will still need to implement measures for monitoring, verification, validation and documentation.  AFIA is still reviewing the final rule and will continue to discuss this aspect with FDA to gain a better understanding and communicate with the industry on the determination. 

Part 11 exemption for electronic records: The biggest cost savings for the industry achieved in the final rule was the exemption granted from FDA electronic recordkeeping requirements. Under this agency rule, firms are required to "validate" each computer system keeping required records by any FDA rule or print, sign, date and file each record requiring such and maintain for one or two rules. The FSMA final rule granted an exemption to this provision for the massive records required for the animal food FSMA rule.  AFIA requested such an exemption and strongly supports this approach by FDA. 

FDA, Industry Plan Webinars, Meetings to Explain Final FSMA Feed Rule, Compliance

Immediately upon FDA publication of the final Food Safety Modernization Act (FSMA) preventive control rules for animal and human foods, the agency announced it will hold a public meeting on October 20 in Chicago.

At the same time, the American Feed Industry Assn. (AFIA) will hold a free webinar for all feed and pet food company employees on October 7, from 2-4:30 p.m. to inform the industry what's in the new final feed rule, when the rule will be effective, how different sized companies are affected, what changes are in the final rule compared to the proposed rule and who needs to comply with the new rule. 

The FDA October meeting, also set to be broadcast as a webinar, is designed to show how the final rules changed from the proposed versions, and to "discuss the plans for guidance documents and outstanding issues that might be addressed in guidance;  provide an update on the development of implementation work plans, and answer questions."  Details and preregistration for the meeting can be found at the special FSMA section of www.fda.gov

In addition to AFIA's October webinar, it has scheduled two "FSMA Phase III" face-to-face meetings.  These one-day sessions are set for December 8, 2015, in Arlington, Virginia, prior to AFIA's Regulatory Training Seminar (December 9-10), and January 27, 2016, at the International Production & Processing Expo in Atlanta.  Registration is available at www.afia.org.

EPA Silent on Final RFS Action; Companies Slam White House Policy; USDA Spends on Ethanol Pumps
With a November 30 deadline rapidly approaching for EPA to finalize its Renewable Fuel Standard (RFS) mandates for various biofuels, including ethanol, the agency is unusually quiet about whether it plans to increase the RFS blending levels from those proposed in May. 
 
Meanwhile, executives from 23 companies producing cellulosic, biodiesel and renewable diesel - federally defined "advanced biofuels" for RFS purposes - slammed the Obama Administration last week for including a waiver in its May RFS proposal that would allow petroleum companies to challenge RFS gasoline blending levels based on so-called "distribution" issues.
    
And in a related development, USDA announced last week it is pushing $100 million in grants to 21 states to help install 5,500 gas pumps and other equipment capable of pumping higher blends of ethanol. The current maximum blend level is 10%.  

The ethanol industry particularly is pressuring EPA to increase its proposed RFS for corn ethanol, demanding the agency embrace the statutory levels set when the RFS was created in 2007.  The agency proposed in May an ethanol RFS of 16.5 billion gallons for 2015, and 17.4 billion for 2016.  The law says those levels should be 20.5 billion and 22.25 billion, respectively.  EPA set the 2014 ethanol RFS at 15.93 billion. 
 
However, EPA Administrator Gina McCarthy told a Growth Energy meeting in Washington, DC, her plan is to "spur ambitious, but achievable growth," but offered no other hints on where her agency may go on increasing the ethanol RFS. 
 
The advanced biofuels executives are angry with the EPA waiver provision for oil companies because they contend the oil companies are creating the distribution problems themselves, in some cases by blocking brand-licensed gas stations from selling certain biofuels blends.  They said allowing the waiver would "gut the core of the concept behind the (RFS) law."  They also reiterated such moves by the Administration continue to cause uncertainty in the marketplace, costing the industry $14 billion in investment. 
 
"President Obama is asking for our support on his Clean Power Plan, but what is he doing to support the RFS, our country's only law on the books directly aimed at climate and clean energy?," the executives said.

As for USDA's investment in ethanol blend pumps and infrastructure, the $21 million is part of a competitive grant program called the Biofuel Infrastructure Partnership (BIP), under which states match grant amounts to expand infrastructure for distribution of higher ethanol blends, specifically 15% and 85% blend levels.  Overall, USDA said it has received applications for over $130 million in BIP grants, and only $100 million is available. 
 
Pope Francis Calls on Congress to Work Together 


Pope Francis took Washington, DC, by storm this week, drawing huge crowds as he used a two-day visit to sweep from the White House to parades in the "Popemobile" to the first-ever U.S. canonization mass to visits with the poor and ultimately to, an address to a joint session of Congress, the first by a Pope. 
 
In his nearly one-hour speech to Congress, 78-year-old Pope Francis walked a fine line between the political and the philosophical, but the essence of his message was that Congress must set aside political differences and work together to address the challenges of poverty, immigration reform, climate change and other primarily social issues.
  
The Pontiff couched his aspirational remarks in the context of American history as a land of immigrants, and conjured the images and actions of Abraham Lincoln, Martin Luther King, Thomas Merton and Dorothy Day, the latter being a 1950s-60s journalist and social activist.  He reminded the lawmakers of Americans' immigrant heritage, as well as calling for the wise use of technology and the need to remediate climate change in so far as actions by man impact the environment, the subject of a recent papal encyclical. 
 
Following the speech, the Pope appeared with congressional leaders and Vice President Joe Biden on the Speaker's balcony where he blessed the nearly 50,000 gathered to watch his speech on giant TV screens. 
 
USDA Extends Dairy Margin Protection Program Sign-up

Dairy producers now have until November 20, to decide whether or not to sign up for the 2016 cycle of dairy margin insurance, USDA announced this week.  The margin insurance program give financial support to dairy farmers when the difference between the price of milk and feed costs falls below the coverage level chosen by the farmer. Farmers enrolled in 2015 need to select coverage for 2016 and pay their $100 administrative fee, with any unpaid premium balances paid in full by the enrollment deadline to remain eligible for higher coverage levels in 2016, the department said.  Farmers are also allowed to work with milk marketing companies to remit premiums on their behalf.
 
 
Positive Train Control Implementation Deadline Could Negatively Affect Rail Service
If congressionally mandated changes in rail safety processes aren't reviewed, there's a high likelihood there will be rail service interruptions this fall, according to several Class I railroads.  Major railroads sent letters to Senate Commerce Committee Chair John Thune (R, SD) saying industry can expect service interruptions since the rails cannot legally haul freight if they haven't implemented so-called Positive Train Control (PTC) systems, safety systems which are meant to monitor and control train movement, including stopping trains in emergencies. 
 
PTC installation must be completed by December 31, according to the Rail Safety Improvements Act of 2008.  However, the seven Class I railroads say they'll miss that deadline and Congress must delay the implementation date.  The problem isn't the entire line, executives said, but "serious questions whether (rails) should operate on subdivisions that have not been equipped with PTC in knowing violation of the federal law that mandated PTC as of January 1, 2016." 
 
The Canadian Pacific told the Senate "that if Congress does not act, actions that the individual rail carriers might take, such as embargoing or rerouting traffic, have the potential to interfere with the fluid operation of the network."  Agri-Pulse, an agriculture newsletter, reported the Union Pacific said in statement that "neither passenger traffic nor chemicals that Americans need and use every day...will move on the Union Pacific system by the end of 2015."
 
Heavy Truck Bill Introduced

A bill to give states the authority to allow trucks weighing up to 91,000 pounds with six axles and additional braking power to operate on federal highways within their borders was introduced by Rep. Reid Ribble (R, WI) and nine bipartisan cosponsors.  The trucks are no longer or wider than conventional semitrailer rigs. 
 
Ribble hopes to get his bill into the House version of a multi-year reauthorization of federal highway, bridge and commuter system construction projects.  Although the Senate passed its reauthorization bill without the heavy truck language, the House Transportation & Infrastructure Committee is planning to begin markup of its bill in early October.  
 
The goal of the legislation is to let shippers run full truckloads of goods on the federal interstate highway  system, rather than the less-than-truckload shipments now moving under the current 80,000-pound limit, unchanged since 1982.  Supporters of the legislation contend the heavier trucks will result in fewer trucks moving the same or more cargo, reducing fuel use, wear and tear on bridges and highways, as well as lessening environmental impact. 
 
The heavier trucks currently operate in Maine and Vermont under long-term programs authorized by Congress four years ago, and independent university studies have shown the trucks to be as safe as or safer than conventional rigs. 
 
Proponents also point out that trade will likely benefit as Canada and Mexico already allow trucks as heavy as 96,000 pounds on their highway systems.  In a recent report to Congress, the Department of Transportation (DOT) found that the six-axle trucks weighing 91,000 pounds would not put additional strain on interstate bridges as they fall within the "federal bridge formula" for weight.
 
Class I railroads oppose the heavier trucks, fearing the heavier vehicles will divert freight away from rail. However, large shippers contend rail is used generally to move inbound ingredients and parts to manufacturing facilities, while trucks are generally used for deliveries, practices that will not change.
 
House Ag to Hear Vilsack, Burwell Explain Plans on Federal Dietary Guidelines

The House Agriculture Committee has summoned Secretary of Agriculture Tom Vilsack and Secretary of Health & Human Services Secretary Sylvia Burwell to an October 7 full committee hearing to hear the two explain not only the status of federal dietary guideline recommendations, but the process by which the controversial recommendations were developed and how comments will be reviewed.
  
The guidelines are under fire by nearly all of U.S. agriculture because the advisory committee which developed the draft guidelines went beyond its charter on diet and nutrition, including environment, tax and "sustainability" factors in the guidelines recommended earlier this year to USDA and HHS.
  
House Agriculture Committee Chair Mike Conaway (R, TX), along with committee subcommittee chairs Rep. David Rouzer (R, NC) and Rep. Jackie Walorski (R, IN), sent Vilsack and Burwell a letter earlier this year raising concerns about the process and the product the advisory committee developed.  More recently, Conway and committee ranking member Rep. Colin Peterson (D, MN) asked the two cabinet secretaries to explain their plans for reviewing the nearly 30,000 public comments received on the proposed guidelines. 
 
"Every American is affected by these nutritional recommendations, which is why it is essential for them to be based on sound, consistent and irrefutable science.  However, the (advisory committee) greatly exceeded its scope with its February, 2015, report by straying from traditional nutritional recommendations and advising on wider policy issues like sustainability and tax policy," said Conaway.  "The Agriculture Committee is committed to making sure the 2015 guidelines reflect the science, not the individual policy positions of the advisory committee members." 
 
Senate GOP Introduces Bill to Kill WOTUS; Groups File Petition for Review, Vacate Rule

Forty-seven Republican Senators last week introduced a resolution of disapproval on EPA's "waters of the U.S. (WOTUS)" rulemaking, a move designed to kill the rulemaking, but even if successful would face a presidential veto.  At the same time, several industry organizations, including agriculture groups, filed in federal court a petition for review of the rulemaking, charging the rule does not do what the agency says and provides no clarity for stakeholders.
 
The WOTUS rule is currently in effect in all but 13 states after a North Dakota judge blocked the August 28 implementation in states which petitioned the court for an injunction.  A separate court action asking both the government and the states to show cause why the judge should not expand his injunction to all 50 states is pending. 
 
The Senate action was taken under the Congressional Review Act, a law passed that allows Congress to step in and reverse a rulemaking.  It's only been used once before during the Clinton Administration, and faces the same challenge that in the case of a presidential veto, both chambers need a two-thirds affirmative vote to override the White House. 
 
The legal petition for review filed by industry groups was signed by the American Farm Bureau Federation (AFBF), the American Petroleum Institute (API), the American Railroad & Transportation Builders, Leading Builders of America, the National Alliance of Forest Owners, the National Association of Home Builders, the National Association of Manufacturers (NAM), the National Cattlemen's Beef Assn. (NCBA), the National Corn Growers Assn. (NCGA), the National Mining Association, the National Pork Producers Council (NPPC), the Public Lands Council and the U.S. Poultry & Egg Assn. (USPEA).
 
Russia Contemplates Permanently Cutting Off All U.S., EU Meat Imports

The Russian government, in a draft decree published on the Ministry of Economic Development website in early September, announced it is considering whether to ban all meat imports from the U.S. and the European Union (EU) - permanently.  
 
Current Russian meat imports are based on quota system, and the draft document proposes to hold U.S. and EU quotas at 2015 levels.  However, the decree reads: "Within five days of the possible abolition of the special measures for the supply of meat products from the U.S. and EU (food embargo), their quota will be redistributed among other participants of foreign trade turnover."
 
"It is obvious that Russia is not going to renew the import of meat from the U.S. and the EU, as it may radically change the situation on the national meat market, and would jeopardize the profitability of a number of projects laid down after the introduction of the embargo," said a Russian trade analyst. 
 
However, the Russian National Meat Association said the decree is more symbolic, given Russia is looking to cut off all meat imports from all nations in 2016.  "We expect that imports of meat may almost completely stop because low domestic prices and reduced purchasing power make it economically senseless," the group said.  The association added it does not anticipate that increases in domestic meat production will be enough to cover the drop in imports. 
 
Statement by House Speaker John Boehner

WASHINGTON, DC - House Speaker John Boehner (R-OH) today issued the following statement:
 
"My mission every day is to fight for a smaller, less costly, and more accountable government.  Over the last five years, our majority has advanced conservative reforms that will help our children and their children.  I am proud of what we have accomplished.

"The first job of any Speaker is to protect this institution that we all love.  It was my plan to only serve as Speaker until the end of last year, but I stayed on to provide continuity to the Republican Conference and the House.  It is my view, however, that prolonged leadership turmoil would do irreparable damage to the institution.  To that end, I will resign the Speakership and my seat in Congress on October 30.

"Today, my heart is full with gratitude for my family, my colleagues, and the people of Ohio's Eighth District.  God bless this great country that has given me - the son of a bar owner from Cincinnati - the 
chance to serve."

 
CGFA Careers Center
The CGFA Careers Center can help connect you with qualified and talented employees searching for dynamic and challenging career opportunities. After registering, you can post job & internship openings available at your company, as well as view potential candidates' resumes and upcoming career fairs.

Follow CGFA's page Careers in the California Grain & Feed Industry on LinkedIn and encourage your audiences to as well to help get the word out!