Managing
be as simple as a handshake. According to the ERS data, 27 percent of all organic deals are done this good old fashioned way.
However, the organic market is trending towards the very
detailed vendor assurance programs used by many of the world’s
top food companies. These programs not only require the basic
information on the ingredient being sourced, but very extensive
details on how the product has been handled, with emphasis on
quality assurance issues. Processors want to make sure that sup-
“W“With proper planning and strong buyer-supplier
relationships, supply can be plentiful.”
pliers have the same level of quality control standards as their
plants, since they do not want ingredients coming into their
company that could possibly contaminate their facility. Some
quality assurance issues to look at adding in your contract could
include production, post-harvest or processing steps that
decrease chances of micro contamination or cross contamination from conventional ingredients or allergens. This type of
contract is often referred to as the “audit book,” since so much
data is required prior to the final ingredient purchase. These
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programs are designed for the conventional market, but in most cases
are applicable to the organic market.
Your contract can be as detailed or as
simple as you want. However, since the
total pool of organic ingredients is
much smaller, going by the book will
not always be possible and you may
have to make certain accommodations. Companies that want to make
organic replicas of their existing conventional product line sometimes find
that sourcing organic ingredients that
are functionally the same as conventional can be daunting. Minimally
processed organic ingredients are not
always as standardized as conventional
versions, which can use synthetic processing aids to ensure certain functional aspects.
Contracting Globally
As with conventional, the search
for organic ingredients is worldwide.
The ERS survey tells us that 35 percent of manufacturers’ ingredients
come from international suppliers.
Once again, when working with suppliers from different areas of the
world it’s challenging to have a completely standardized ingredient. In the
northern and southern hemispheres,
varieties are different and there are
often subtle differences in the ingredients from region to region, so again,
you must adapt. To make the differences less noticeable and therefore
more standardized, some manufacturers take all varieties of a specific ingredient, which have been sourced from
different areas of the world, and combine them into one “melting pot”
ingredient.
In addition to contracting for
organic ingredients that meet a
processor’s product specifications, the
contract should also ensure that the
ingredient is certified to meet the
USDA’s National Organic Program
(NOP) so that it can be imported into
the United States and used in USDA
certified organic products.