Re: Docket: FGIS-2000-001a
(RIN 0580-AA73)
Comments in Response to USDA/GIPSA ANPRM

Mr. Hardy:

The Grocery Manufacturers of America (GMA) appreciates the opportunity to provide the U.S. Dept. of Agriculture/Grain Inspection, Packers & Stockyards Administration (GIPSA) with the following response to its Advance Notice of Proposed Rulemaking (ANPRM) (FR 65; 71272-71273; 11/30/00).

The future of the U.S. grain handling system lies clearly in shipping an increasing volume of U.S. commodities to growing economies abroad, but also in supplying a diverse array of value-added agri-food products to food manufacturers and ultimately consumers domestically. GMA applauds GIPSA's recognition of these emerging changes in the commodity marketplace and its desire to anticipate and better serve the U.S. agri-food community.

Grocery Manufacturers of America
As background, GMA is the world's largest association of food, beverage and consumer product companies. With U.S. sales of more than $460 billion, GMA members employ more than 2.5 million workers in all 50 states. The organization applies legal, scientific and political expertise from its member companies to vital food, nutrition and public policy issues affecting the industry. Led by a board of 44 Chief Executive Officers, GMA speaks for food and consumer product manufacturers at the state, federal and international levels on legislative and regulatory issues. The association also leads efforts to increase productivity, efficiency and growth in the food, beverage and consumer products industry.

The majority of GMA members do not market the commodity products mentioned in the ANPRM. Most have quality control and assurance programs, however, that involve various levels of product tracking, segregation and testing to ensure the integrity of the incoming supplies of such products for processing into well-known, brand-name products. These specifications can change daily, if not hourly and the marketplace has continually risen to the challenge of meeting these customer-supplier demands, with relatively few accommodations including those for new technologies such as biotechnology.

Nevertheless, GMA members support the potential for biotechnology to improve the quality, safety and attributes of their products. Within the decade, GMA members envision the introduction of new value-added commodities developed through biotechnology that will provide processing efficiencies or benefit consumers directly. The ongoing segmentation and changes in commodity markets will accelerate due, in large part, to the introduction of these value-added biotech products. Whether or not such commodities are biotech commodities, however, is just one parameter that companies presently look at when determining product specifications and cannot be singled out or looked at in isolation.

General Comments
In response to GIPSA's ANPRM, GMA believes that:

O The well-developed body of U.S. legal principles on food safety, food labeling and food advertising should apply to all agri-food products. In contemplating future actions, GIPSA should focus its efforts equitably on ensuring the integrity of marketing and handling systems for all agri-food products, and not just those developed through biotechnology.
O At the most basic level, validated test methods should accompany U.S. Government review of individual biotech products to assist in the identification and marketing of such products.
O Sufficient expertise and resources exist in the private sector to respond to additional marketplace demands (e.g., new testing methodologies) in a timely manner, as the marketplace has demonstrated historically.
O It would be counterproductive to adopt specific rules about identity preservation (IP) systems and certification that would lock current practices and currently-available methods in place. Technological developments would, in all probability, quickly render them obsolete. This is particularly true if no consideration is given to the development of value-added products that one day will benefit consumers in the differentiated products of GMA member companies.
O Market mechanisms, such as price incentives, will go far to ensure that the quality and added value of agri-food products with consumer benefits are captured within IP systems. Standards of performance will be product-specific, between customer and supplier, and not based on broad commodity availability and standards, which currently justify a U.S. Government role.

Specific Questions
In response to specific questions raised by the agency, GMA provides the following comments:

As more certifying companies and organizations evolve to review and verify the performance of food company IP systems, should USDA have a role in the accreditation of these certifying companies and organizations?

As previously mentioned, GMA members see no sufficient need nor reason for a distinct set of regulations specifying the procedures for complying with laws of general application that are well-developed and which food companies have long been obliged to comply. Moreover, GMA members believe governments should not delegate law enforcement to private organizations paid by parties who have the obligation to comply.

USDA is in the process of developing a program for accrediting qualified commercial and public laboratories for the analytical detection of grains and oilseeds derived from biotechnology. Should USDA expand this program for other commercialized crops? Should USDA include laboratories outside the U.S. in its program? Would this help facilitate the marketing of U.S. crops?

The body of principles governing laboratory practices is well established, and reliable accrediting organizations already exist. Again, we see no sufficient need nor justification for an entirely distinct set of regulations and programs for agri-food products derived from biotechnology.

Should USDA provide direct analytical detection services and certification for crops derived from biotechnology? Should such involvement be limited to US crops or expanded to include imported crops?

USDA should not distinguish products of biotechnology by providing direct analytical detection services and certification for them, whether domestic or imported.

GMA appreciates the opportunity to provide this input to the Agency. Should you have any questions, please contact Karil L. Kochenderfer, Director of Environment & New Technologies with GMA at 202/295-3927.

Sincerely,

Mary C. Sophos
Senior Vice President and Chief Government Affairs Officer