**Statement of Lloyd Day, Administrator**

**Agricultural Marketing Service**

**U.S. Department of Agriculture**

**Before the**

**Subcommittee on Horticulture and Organic Agriculture**

**House Committee on Agriculture**

**May 15, 2007**

Mr. Chairman, and members of the Subcommittee, good morning and thank
you for the invitation to appear before you today. I appreciate the
opportunity to share with you a brief overview of the activities and
services of USDA's Agricultural Marketing Service (AMS).

As you know, the U.S. Food and Drug Administration (FDA) is the Federal
agency with primary responsibility for the food safety of horticultural
products. At the U.S. Department of Agriculture, the Food Safety and
Inspection Service holds similar responsibility for meat, poultry, and
egg products.

The mission of AMS is to facilitate the strategic marketing of
agricultural products in the domestic and international marketplace. AMS
is not a food safety agency. The agency does respond to requests from
producers to support their product quality control efforts. For example,
producers have asked AMS to establish programs to provide independent
verification that FDA guidance is being followed.

**[AMS Audit-Based Programs]{.underline}**

For many decades AMS has offered voluntary, user-funded, product quality
grading services as well as plant sanitation reviews based on FDA's Good
Manufacturing Practices. In recent years, AMS has expanded these
traditional services through the addition of audit-based programs based
on internationally recognized quality management system protocols. Some
of these newer programs incorporate food safety-related elements
reflecting market demand for greater food safety assurance as a quality
attribute of products being marketed.

Audit-based programs tend to focus on the management of production and
handling systems. They provide a basis for third-party verification of
conformance to production and handling standards, methods, or
procedures. Through these programs, it is possible to verify that
processes are working within established limits. Production and handling
systems are documented, specific processes are monitored and measured,
and product identity and traceability are required. Processes
specifically relating to the management and minimization of food safety
risks may be included.

In the horticultural or specialty crops area, AMS product grading, plant
sanitation review, and audit-based programs are conducted with a Federal
workforce of some 800 full and part time employees. Additionally, AMS
has cooperative agreements with nearly all State Departments of
Agriculture, under which their fruit and vegetable inspectors receive
training and are granted Federal licenses to assist in the delivery of
AMS services and programs, adding another 3,500 skilled professionals to
the agency's deployable workforce.

***Good Agricultural Practices and Good Handling Practices Audit
Verification Program***

One recent example of an audit-based program fashioned around food
safety-related objectives is the Good Agricultural Practices and Good
Handling Practices (GAP/GHP) Audit Verification Program. This program
assists farms and packinghouses through verification of their adherence
to FDA's *Guide to Minimize Microbial Food Safety Hazards for Fresh
Fruits and Vegetables*. It is a uniform, nationwide program that is
voluntary and funded by user fees.

The GAP/GHP Program originated from a request by the New Jersey
Department of Agriculture and the Association of Fruit and Vegetable
Inspection and Standardization Agencies. A program was sought that would
enable growers and packers to demonstrate adherence to Good Agricultural
Practices and Good Handling Practices as was being required by their
retail customers.

As identified in FDA's guidance materials, participants in this program
demonstrate control in several areas of their operations to minimize
microbial hazards, including water supplies, manure management, worker
health and hygiene, sanitary facilities, field and parking area
sanitation, transportation, and product traceback.

Primary users of this program include fresh fruit and vegetable growers,
packers, shippers, and others in the marketing chain. Currently, audits
are performed at 317 farms and facilities in 32 States and Puerto Rico,
with larger numbers of participants in California, Oregon, Washington,
North Carolina, and New Jersey. Nearly 100 fruit, vegetable, and other
specialty crop products are covered. AMS staff and AMS-licensed and
trained State employees perform the on-site audits.

***Qualified Through Verification Program***

Another example of an audit-based program offered by AMS is the
Qualified-Through-Verification (QTV) Program that assists fresh-cut
fruit and vegetable processors in managing food safety risks. There are
currently 10 fresh-cut plants participating in the QTV program.

QTV is a voluntary, user-fee program that provides third-party
verification of a fresh-cut processor's adherence to its Hazard Analysis
Critical Control Point (HACCP) plan. Under the QTV program, processors
identify and document critical points in their production process,
measure performance of their operation at these critical points, and
position themselves to detect and address any deficiencies as they might
emerge.

Third-party verification by AMS involves initial document review and
subsequent on-site audits. The frequency of audits begins at two week
intervals with reduced frequency possible based on a firm's performance.
AMS staff involved in administering this program have received training
in HACCP and audit procedures.

With FDA's March 2007 release of its *Guide to Minimize Microbial Food
Safety Hazards of Fresh-cut Fruits and Vegetables*, AMS has modified its
QTV program to incorporate this guidance regarding the identification
and implementation of appropriate measures to minimize the risk of
microbial contamination during the processing of fresh-cut produce. In
addition, participants in the QTV program will be required to source
products only from growers that adhere to Good Agricultural Practices as
outlined in FDA's *Guide to Minimize Microbial Food Safety Hazards for
Fresh Fruits and Vegetables.*

**[Marketing Orders and Agreements]{.underline}**

Authorized by the Agricultural Marketing Agreement Act of 1937 (AMAA),
marketing orders and agreements assist farmers by allowing them to
collectively work to solve marketing problems.  Industries voluntarily
enter into these programs and in this way choose to have Federal
oversight of certain aspects of their operations. AMS oversees marketing
orders and agreements to ensure that they operate in the public interest
and within legal bounds.

Presently, there are 30 active marketing agreement and order programs,
covering 25 specialty crop commodities. Fees are collected from handlers
to cover the local costs of administering these programs.

Marketing orders differ from marketing agreements. Marketing orders, if
supported through industry referenda, are binding on all individuals and
businesses that are classified as \"handlers\" in the geographic area
covered by the order. Marketing agreements are binding only on handlers
who are voluntary signatories of an agreement.

***Food Quality and Safety Issues under Federal Marketing Orders***

Section 608c(6) of the AMAA provides authority to regulate the quality
of various commodities through Federal marketing orders and agreements.
USDA considers food safety to be a quality characteristic of regulated
fruit, vegetable, and specialty crops and that the absence of harmful
pathogens or toxins is characteristic of higher quality products. In
response to producer requests for support of their product quality
control efforts, AMS has incorporated food safety-related requirements
in marketing agreement and marketing order regulations for many years.
For example, testing for *Aflatoxin*, considered a possible human toxin,
has been required for U.S. grown peanuts since 1965, originally under a
Federal marketing agreement and subsequently through separate
legislation administered by AMS.

A large majority of the currently active Federal marketing order
programs include minimum grade requirements with most U.S. grade
standards having criteria related to food safety (e.g., lack of mold,
insects, foreign material, etc.). Since 1961, for example, the marketing
order for California prunes has had inspection and fumigation
requirements relative to live insect infestations. Similar requirements
for insects as well as the presence of dirt or mold have been in place
for California raisins since 1977. Beginning in 2005, Pistachio handlers
were required to test all nuts destined for human consumption for
*Aflatoxin*, which, if present, would lower the quality and market value
of pistachios. Also, for the upcoming 2007-08 crop, almond handlers will
be required to treat almonds prior to shipment to reduce the chance of
*Salmonella* contamination, a health hazard that can lower the quality
and value of almonds shipped to market.

***California Marketing Agreement***

Following the September 2006 *E. coli* outbreak linked to fresh spinach
grown in the Salinas Valley, the California Department of Food and
Agriculture (CDFA) began designing a State marketing agreement that
would require adherence to good handling practices for most companies
involved in shipping leafy greens in the State. The California Spinach
and Leafy Green Marketing Agreement (Agreement) became effective in
February 2007.

The CDFA Agreement is a voluntary program. This program licenses
signatory handlers to use a certification mark to certify the handling,
shipping, and sale of leafy green products in accordance with Best
Practices (Good Agricultural and Good Handling Practices). For signatory
handlers, the sale of such products without verified Best Practices and
trace back systems is considered an unfair trade practice. The use of
the certification mark would be denied to those firms found in
violation. The Agreement also mandates that shippers source their leafy
greens from growers who comply with a specified set of Best Agricultural
Practices.

AMS has cooperated with CDFA in the verification aspects of the
Agreement, including the design and delivery of training for the
California State auditors who will monitor compliance. During the week
of April 16, 2007, AMS and CDFA conducted the first informational audit
assessment under the Agreement. This informational assessment allowed
program managers to test procedures and to evaluate the checklist that
will be used during audits. During the week of April 30^th^, AMS and
CDFA worked together to administer additional training for the 10
AMS-licensed California Federal-State Inspection Service graders who
will perform the official audits that CDFA expects will begin in mid-May
at spinach and leafy green farms throughout the State.

According to CDFA, to date, handlers representing more than 99 percent
of the leafy greens produced in California have signed the Agreement.

To conclude, Mr. Chairman, I would like to reiterate that food safety
policy and the establishment of food safety standards are not within
AMS' mandate. However, AMS does have significant expertise and
experience in the design and delivery of marketing programs, including
those involving inspections for product quality and verification of
production processes. At industry's request, AMS has incorporated food
safety-related elements in several of its marketing programs for the
produce industry.

Thank you. I would be pleased to respond to questions.