Inspection of Buying/Selling and Handling 6. Product Flow Inspection 1 Inspection of Buying/Selling and Handling Farm production on-farm processing Buying General handling and storage Processing Ware- housing Processing Selling/ Buying Farm 1 Farm 2 Export Must be under supervision of the ICS Training Manual on the Evaluation of Internal Control Systems

6. Product Flow Inspection 2 Check during Buying The organic status is checked at delivery/purchase. Only the product of approved organic farmers is considered organic. The verification is done on basis of certified farmers list. What proof of organic status do purchase officers have at hand? How error-proof is the system? Considering the overall system - is there sufficient evidence that the delivered product originates from certified farmers only 7.1.4 The amount of product supplied is compared with estimated yield. In case of doubt, product is kept separate until clarification by ICS Manager. Procedures and/or forms for this. Are purchase officers aware of this duty? Training Manual on the Evaluation of Internal Control Systems

Buying Documentation Date Farmer’s name & code number Quantity 6. Product Flow Inspection 3 Buying Documentation Date Farmer’s name & code number Quantity Organic quality indicated Product indicated (if different products) Farmer receives a receipt Training Manual on the Evaluation of Internal Control Systems

Critical Control Points Buying Procedures 6. Product Flow Inspection 4 Critical Control Points Buying Procedures Are buying personnel aware of the organic handling rules? Would buying personnel have major incentives to cheat? Are there standardized buying and handling procedures? Are these procedures realistic in a stressful day-to-day buying situation? Any risk of commingling during buying and intermediate storage (all steps must be known)? What “exceptional situations ” could occur, and how would personnel deal with such situations? Calculate product flow for several lots. Especially check any critical periods, e.g., with high demand – low production? Training Manual on the Evaluation of Internal Control Systems

General Handling Requirements of Organic Products 6. Product Flow Inspection 5 General Handling Requirements of Organic Products Separation of qualities (organic, conversion, conventional) at all stages Labeling as “organic” at all stages Lot number system if possible – traceability! Incoming as well as outgoing goods need to be carefully documented. No contamination (e.g., no fumigation) No irridiation Only permitted facility pest management Warehouses usually need to be inspected (if labelling or repacking takes place, warehouses have to be inspected as processors!) Training Manual on the Evaluation of Internal Control Systems

Inspection of Organic Processing 6. Product Flow Inspection 6 Inspection of Organic Processing Post-harvest processing at the farm level is usually inspected by the ICS and re-inspected in course of the ICS farm re- inspections All central processing units need to be inspected and certified (just as any organic processor) Training Manual on the Evaluation of Internal Control Systems

Post-Harvest Processing on the Farm 6. Product Flow Inspection 7 Post-Harvest Processing on the Farm Drying Peeling/de-shelling Cutting De-pulping (coffee) Fruit drying in Turkey Coffee de-pulping in Tanzania Drying and selection of coffee in Bolivia Tea processing at a farmer´s place in China Training Manual on the Evaluation of Internal Control Systems

Central Processing Units 6. Product Flow Inspection 8 Central Processing Units At central processing site and/or contracted processing site Drying Sorting/grading Blending and mixing Grinding/cutting De-hulling (e.g., dry processing coffee) Multi-ingredient processing (e.g., frying banana chips in oil) Packaging Grading and sorting bananas in the Phillipines Frying of bananas in oil Packaging potato starch in China Training Manual on the Evaluation of Internal Control Systems

Important Requirements for Organic Processing 6. Product Flow Inspection 9 Important Requirements for Organic Processing Separation & identification separation during processing separation during storage & transport labeling as “organic” at all stages lot number system if possible Organic ingredients & processing aids only organic ingredients only permitted processing aids Documentation processing records warehouse records inventory records Training Manual on the Evaluation of Internal Control Systems

How to Ensure Separation during Processing? 6. Product Flow Inspection 10 How to Ensure Separation during Processing? Examples how separation of organic and non-organic products can be achieved: Only handle organic goods. Separate production lines (e.g., processing machinery). Process organic goods at separate times, e.g., only every Monday morning when all machines are clean. All processing is strictly batch-wise. Well trained staff. Continuous supervision during organic processing. Training Manual on the Evaluation of Internal Control Systems