South American Grain Fraud Allegations Draw Industry Scrutiny

Cornucopia has long called on the USDA to stop fraudulent organic grain imports from crossing U.S. borders.

Cases of fraudulent organic grain imports originating from Eastern Europe are well documented, as is the USDA’s failure to expeditiously investigate and impose penalties on bad actors intent on defrauding American farmers and consumers.

Now the article below discloses that South America may also be an origin of concern.

According to a complaint submitted to the USDA, Rivara SA, an Argentinian company, exported millions of pounds of fake organic corn and soybeans to the U.S.

The complaint relies on recorded conversations of a Rivara employee who allegedly admitted that Rivara was engaged in import fraud.

Perdue Agribusiness, a subsidiary of Perdue Farms, is Rivara’s largest customer.  Because Perdue Farms is the largest organic chicken producer in the U.S., the allegations raise serious concerns about the integrity of much of the U.S.’s organic chicken supply.

The article also notes that Tiryaki, the largest supplier of organic grain into the U.S., is transitioning to a new certifier after its former certifier, Control Union, was suspended by the USDA.

Cornucopia previously reported that USDA’s suspension followed the European Union’s action against Control Union for poor performance that facilitated organic fraud.

Cornucopia was the first to publicly call attention to the Tiryaki supply chain and will continue to monitor suspicious imports wherever they originate.

Organic-grain complaint raises questions about major Argentine supplier
Company in Argentina is scrutinized over its practices
by Adam Belz
Associated Press

For years, American farmers’ battle against fake organic-grain imports has centered on Eastern Europe. Now, an organic farm in South America is being scrutinized.

A lengthy complaint filed with the U.S. Department of Agriculture, and obtained by the Star Tribune, alleges fraud at an organic-grain company in Argentina that exports millions of bushels of organic corn and soybeans to the United States each year.

The complaint said that Rivara SA deliberately used prohibited fertilizers and herbicides to produce grain that it then passed off as organic to U.S. customers, including the largest U.S. producer of organic chickens.

The 115-page complaint against Rivara is painstakingly detailed, and raises concerns in a global supply chain — organic grain — that has been rife with problems as the market for organic poultry, eggs and milk in the United States has quickly outpaced the supply of domestic corn and soybeans to feed those animals.

Officials at the USDA’s National Organic Program (NOP) would not confirm receipt of the complaint or say whether an investigation is underway. Matthew Haverstick, a lawyer at Kleinbard LLC in Philadelphia, told the Star Tribune he filed the complaint last December.

Read the entire article.

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