The volatility and high feed costs we have had over the past few years have been very stressful for livestock producers. It’s a relief to see that lately livestock values are high and feed costs are getting cheaper while also having reports of great positive closeouts in all species. This is truly a testament of the stability of you, our producers, and your ability to manage not only your animals, but your farming business as well. You need to be well positioned to face the challenges from both. We at CVA are in the same boat.
We need to be well positioned to meet not only the day to day issues that come from feed production, but we must also be ready to face stresses that come from outside our company. Many of you may not be aware of the new Food Safety Modernization Act (FSMA) regulations we must meet to remain in the feed business. Our previous standard for feed production is what we used to refer to as Good Manufacturing Process’ (GMP’s). FSMA moves well beyond the scope of the former GMP standards, which primarily was designed as a standard to produce safe feed for animals to consume, now moving to standards of food safety for humans who consume these animals.
In addition, the new standards will include our plan to defend against outside threats such as bioterrorism, biosecurity, and potential ingredient recalls from outside sources. Hopefully you can see the feed manufacturing business has changed dramatically and the pace of that change is accelerating. Fortunately, CVA is moving rapidly as well. We currently have two feed mills, located in Duncan and Utica, with Hazard Analysis Critical Control Point (HACCP) certifications in place. HACCP is the highest level of food safety certification attainable in our market segment. CVA is dedicated to doing our part in meeting and exceeding food safety requirements.
Hazard Analysis & Critical Control Points (HACCP): HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product.
FDA Food Safety Modernization Act (FSMA): The FDA Food SafetyModernization Act (FSMA), the most sweeping reform of our food safety laws in more than 70 years, was signed into law by President Obama on January 4, 2011. It aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to preventing it.