Feed Strategy - January 2018 - 40

40 ❙ FeedStrategy
FRAUDULENT ORGANIC GRAIN IMPORTS

A brief history of EU organic grain fraud
2007: The Italian authorities started
to investigate potential organic fraud,
under the code name Puss in Boots,
where conventional raw materials
were passed off as being organic by
using fake documentation.

2013: The
Italians ran
Operation Green
War and more
people were
incarcerated.
2011: Several

Source: Paul Poornan

CEOs of Italian
organic
companies went
to prison.

2015: Pesticides were

detected in Ukrainian
organic sunflower seed
extractions on arrival in
mainland Europe.

2014: Operation Vertical

Bio uncovered a gang
running a network of
organizations in Italy,
Malta, Moldova, Romania
and the Ukraine.

Prior to regulation, criminal opportunists took advantage of a booming demand for organic grains in Europe.
New companies were founded to locate and import organic
raw materials from anywhere in the world; many of these
companies found new suppliers who grew organic materials by
default and persuaded them to become certified. The increased
search for organic raw materials that were priced at twice
conventional values or conventional price plus US$120 per ton
unfortunately attracted the attention of fraudsters.
For example, one Italian criminal gang was so bold as
to set up fake certification bodies in Malta and Moldova
called ICS Biozoo, where documents were processed in a
"fake" country called Transnistria. Transnistra is sandwiched
between Moldova and the Ukraine and, although it is not recognized by any member of the United Nations, it has its own
president, parliament, anthem, passport, flag and currency. A
country that is off the map has advantages when it comes to
laundering conventional raw materials into organic.

European organic regulation
In 2007, EU standards increased with the introduction
of Commission Regulation (EC) No 834/2007 regarding
organic production and labeling where there are several

New rules set to make European
food safer: www.WATTAgNet.com/
articles/30155

references to "avoiding deceptive practices," "to avoid
fraud" and "verification of compliance." This was followed by Commission Regulation (EC) No 889/2008 adding the subject of control, which is updated on a continual
basis. Commission Regulation (EC) No 125/2008 implemented controls for organic products that are imported
from non-EU countries. Now European feed millers had
to ensure that every organization in their supply chain,
hauler, domestic store, importer, exporter, foreign store,
foreign hauler and original arable grower were trained,
licensed and audited to handle certified organic materials.
By 2015, mainland Europe was generally self sufficient
of organic cereals, except for the U.K., which had become
increasingly dependent on the Ukraine. With its recent experience of fraud, Europe increased its testing of organic
raw materials to verify authenticity. A consignment of
Ukrainian organic sunflower imported into Europe was
found to be contaminated with a pesticide. Following an
investigation by the EU, the certification body responsible
for the organic certificate was delisted. Since then, most of
the Ukrainian companies that were exporting organic raw
materials have disappeared. Consequently, the U.K. has
had to tap into the European and global organic supply
chains, and global prices have risen.
In hindsight, while the frauds have been operating,
global raw materials have been relatively plentiful, when
www.WATTAgNet.com ❙ January 2018


http://www.WATTAgNet.com/articles/30155 http://www.WATTAgNet.com/articles/30155 http://www.WATTAgNet.com

Table of Contents for the Digital Edition of Feed Strategy - January 2018

Feed Strategy - January 2018
Contents
In the Mix
Consumer interest drives transparency in feed production
6 challenges facing the global animal feed industry
Marketing-driven poultry production’s real feed costs
How feed extrusion can improve digestibility, safety
Advances in ruminant environmental impact reductions
Secrets of successful piglet feeding after weaning
EU’s history of fraudulent organic grain imports
Products
Marketplace
Feed Strategy - January 2018 - Feed Strategy - January 2018
Feed Strategy - January 2018 - Cover2
Feed Strategy - January 2018 - Contents
Feed Strategy - January 2018 - In the Mix
Feed Strategy - January 2018 - 3
Feed Strategy - January 2018 - 4
Feed Strategy - January 2018 - 5
Feed Strategy - January 2018 - Consumer interest drives transparency in feed production
Feed Strategy - January 2018 - 7
Feed Strategy - January 2018 - 8
Feed Strategy - January 2018 - 9
Feed Strategy - January 2018 - 10
Feed Strategy - January 2018 - 11
Feed Strategy - January 2018 - 12
Feed Strategy - January 2018 - 13
Feed Strategy - January 2018 - 6 challenges facing the global animal feed industry
Feed Strategy - January 2018 - 15
Feed Strategy - January 2018 - 16
Feed Strategy - January 2018 - 17
Feed Strategy - January 2018 - 18
Feed Strategy - January 2018 - 19
Feed Strategy - January 2018 - Marketing-driven poultry production’s real feed costs
Feed Strategy - January 2018 - 21
Feed Strategy - January 2018 - 22
Feed Strategy - January 2018 - 23
Feed Strategy - January 2018 - 24
Feed Strategy - January 2018 - 25
Feed Strategy - January 2018 - How feed extrusion can improve digestibility, safety
Feed Strategy - January 2018 - 27
Feed Strategy - January 2018 - 28
Feed Strategy - January 2018 - 29
Feed Strategy - January 2018 - Advances in ruminant environmental impact reductions
Feed Strategy - January 2018 - 31
Feed Strategy - January 2018 - 32
Feed Strategy - January 2018 - 33
Feed Strategy - January 2018 - Secrets of successful piglet feeding after weaning
Feed Strategy - January 2018 - 35
Feed Strategy - January 2018 - 36
Feed Strategy - January 2018 - 37
Feed Strategy - January 2018 - EU’s history of fraudulent organic grain imports
Feed Strategy - January 2018 - 39
Feed Strategy - January 2018 - 40
Feed Strategy - January 2018 - 41
Feed Strategy - January 2018 - 42
Feed Strategy - January 2018 - 43
Feed Strategy - January 2018 - 44
Feed Strategy - January 2018 - 45
Feed Strategy - January 2018 - Products
Feed Strategy - January 2018 - 47
Feed Strategy - January 2018 - Marketplace
Feed Strategy - January 2018 - Cover3
Feed Strategy - January 2018 - Cover4
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