Cost estimation model for isolation and segregation of non‐genetically modified corn and soybeans at country grain elevators

Abstract Background and Objective Corn and soybean meal are important ingredients for livestock and poultry feed. Feed producers who wish to produce non‐genetically modified (non‐GM) feed must segregate ingredients, especially corn and soybeans, throughout the supply chain. All supply chain participants must apply segregation practices to minimize the allowable presence of GM material, termed adventitious presence (AP), in non‐GM product loads. All these actions and processes raise concerns about production costs. The approach of this study was to model the feed supply chain segregation costs at country grain elevators, focusing on non‐GM corn and soybeans. To estimate the costs of successfully reaching four specified tolerance levels (0.9%, 1.5%, 3.0%, and 5.0%), 24 scenarios were constructed and evaluated using the Monte Carlo simulation method. Input variables were drawn from previous literature findings on segregation within the grain elevator environment and the costs of segregation actions. These variables included costs for new or dedicated equipment construction, testing costs, segregation method, facility capacity, and cleaning approaches. Scenarios were categorized by segregation method and facility capacity. Findings According to the model, the grain elevator was expected to spend an additional $0.03 to $0.04 per bushel to handle and segregate non‐GM soybeans as compared with GM soybeans and an additional $0.07 to $0.08 per bushel to successfully segregate non‐GM corn. Conclusion Grain elevators are expected to spend an additional $0.03 to $0.04 per bushel to successfully handle and segregate non‐GM soybeans as compared with GM soybeans. Costs to successfully handle and segregate non‐GM corn were an additional $0.07 to $0.08 per bushel. Significance and Novelty The study provides cost estimates for segregating non‐GM corn and soybeans in a grain elevator. When non‐GM corn and soybeans are used as part of feed ingredients, feed costs will increase.