• Labor availability and cost (immigration reform, minimum wage indexing and its impacts, and resolution of farm worker bargaining law).
• Federal farm bill legislation and how Oregon growers participate or benefit.
• Plant protection research, material availability, and cost in a state that produces mostly “specialty” crops.
• Availability, storage, and distribution of water, with impending pressure from climate change.
• Land use. Preservation of farmland. Balance development pressures, private property rights, and regional opportunities and needs.
• Transportation infrastructure, fuel cost, and movement of products to market.
• Need for more locally-based, value-added processing infrastructure (due to loss of a significant portion of the local processing industry in over past decade).
• Bio-technology in agricultural crops, assessing benefits and risks for Oregon producers.
• Development of new technology and its adaptation to agriculture; critical need to develop links with higher education and the high tech industry with focus on nanotechnology, laser and infrared technology, precision agriculture, mechanization, and energy and water conservation.
• Renewable energy development, in which local producers can participate and benefit.
• Access to foreign markets and development of stateside markets. Resources to address non-tariff barriers, market development, and product introduction.
• Resources to combat invasive species and their impacts on local agriculture and ecosystems.
• Regulatory challenges and the continually tightening environmental standards (costs) in Oregon and the US versus other nations.
• Aging of farmers and pending land turnover with few younger people choosing to farm; need for tax structures, financing programs and succession planning assistance to ensure a local, dynamic and viable farm infrastructure and farm population.
• Global animal disease prevention and response to maintain a viable and healthy livestock industry. Reduce disease potential for humans and animals.
• Direct marketing, certification, and access to local food markets for smaller growers.
• Public sector research funding for Oregon State University and other institutions that develop and improve agriculture production, new crops, management systems, and value-added processing.
• Public education and policy that support economically, environmentally, and socially sustainable agricultural production.
• Wildlife damage and mitigation assistance for agricultural and timber production.
• Grower access to financing and business models in order to adopt new technologies, crops, and production methods.

• Successfully implemented HB 2196, which creates a new structure for the Board of Agriculture and transitioned from an advisory board to a policy making board.Established four sub-committees to focus on critical issues facing the Oregon Department of Agriculture and the industry (see sidebar). Sub-committees met between quarterly meetings of the full Board of Agriculture.As directed by HB 2196, produced a biennial report of Oregon’s agriculture industry to be presented to the 2007 legislative session. The document provides lawmakers with information on the current state of the industry and is designed to provide assistance as the legislature makes decisions that affect agriculture.
• Individual board members met with key legislators, prior to, and during the 2005 session of the Oregon Legislature. These meetings provided important background and established relationships important in support of the Oregon Department of Agriculture and the agriculture industry. Board members also provided key testimony at selected bill hearings, and provided support for ODA’s budget.
• Completed review and approval of all 39 area Agricultural Water Quality Management Plans and Rules (SB 1010) throughout Oregon, including several biennial reviews for previously adopted plans.
• Provided input to the Oregon Watershed Enhancement Board (OWEB) that helped direct grant funding for on-the-ground projects beneficial to agricultural operators. A member of the Board of Agriculture represents the industry on the OWEB board.
• Two Board of Agriculture members represented agriculture as part of the Oregon Biopharming Ad Hoc Committee, which was formed by ODA and the Oregon Department of Human Services (DHS) in response to requests from the governor and state legislature for scientific review, analysis, and recommendations. The committee met on a regular basis to develop a consensus policy recommendation for consideration by the governor and the 2007 Legislature regarding biopharmaceuticals produced in human food or animal feed crops.
• Board Member Ken Bailey represented agriculture on the 10-member Oregon Task Force on land use planning, known as the “Big Look Committee.” The committee’s mission is to chart the future of the state’s 30-year-old land use planning system. Providing an agricultural perspective for the committee will be important to the industry’s future.
• Met in conjunction with the Oregon Environmental Quality Commission to discuss issues of common concern including water and air quality.
• Continued to advise the state’s Soil and Water Conservation Commission (SWCC) and soil and water conservation districts, as one Board of Agriculture position is filled by the chair of the SWCC.
• Established a stronger connection with farm direct marketing sector by adding, to the board, a public member with farmers’ market experience.
• Collaborated with a governor-appointed statewide food policy council. This council develops urban-rural partnerships to: improve access to an adequate food supply, eliminate hunger in Oregon, increase local purchase of regional foods, enhance agricultural viability, and expand food-related businesses and jobs.
• Endorsed by resolution, the concept of the Oregon Sustainable Agriculture Resource Center (OSARC), recognizing the rapidly growing prevalence of standards and certification requirements for agriculture and food products in the global market place.
• Supported by resolution, the Oregon Department of Fish and Wildlife’s proposed Cougar Management Plan.
• Provided input to the Oregon Department of Agriculture on a number of key and controversial issues including production of canola in the Willamette Valley, water storage and use by agriculture, and Brand Oregon activities involving ODA.
• Established a Web site that includes board member profiles, announcements, meeting agendas, board meeting minutes, and other information regarding the State Board of Agriculture. http://oregon.gov/ODA/boardoverview.shtml

• Biennial Report to the Legislature
• Labor/minimum wage
• Farm Bill
• Legislative contacts and issues
• Governor’s Office
• Pesticide Use Reporting System (PURS)

• Land use policy
• Interim review of land use system
• Water availability
• Long-term water strategy
• Senate Bill 1010 (agricultural water quality plans)

• Brand Oregon
• Transportation
• Sustainability
• Food policy councils
• Farmer’s markets
• Agricultural business development

• Bio-pharmaceuticals
• Control districts
• Links with higher education
• Technology development
• Renewable energy

• Administration and Support Services provide the core infrastructure for ODA's daily business operations:
• The Director's Office provides oversight of all functions of the department while working with the Governor's Office, legislature, other state and federal agencies, and agricultural and consumer groups to carry out the state's agricultural policy. This includes administration of the State Board of Agriculture and the department's Farm Mediation Program, supervision of price negotiations for the state's grass seed and seafood industries, and liaison for the agriculture industry on renewable energy issues.
• The Information Office is responsible for media relations, publications, Web site coordination, and various special projects. Also serves as the first point of contact for many ODA customers.
• The Administrative Services Section provides internal support for ODA in the areas of financial management, personnel, licensing, purchasing, and computer information systems. This support includes payment on all agency bills and accounts; development and management of ODA's biennial budget; monitoring of agency spending; job recruitment, hiring, and staff training; coordination of agency purchases and building maintenance; and information systems, project management, and systems development.
• The Laboratory Services Section provides laboratory chemistry, and microbiology analysis for ODA. Analyses are provided for food, dairy, shellfish, foliage, soil, fertilizer, water, and various products destined for export/import.

Director's Office

• Coordinated various emergency response plans for the agency including a Continuity of Operations Plan (COOP) that ensures the agency's basic critical functions remain active in the event of an emergency.
• Coordinated the Salmon Assistance Program, which distributed $1 million of state disaster relief funds to Oregon commercial troll salmon fishermen along the coast. Assistance was directed by an emergency declaration from the governor following harvest restrictions in 2006.
• Spearheaded and coordinated ODA's multi-division response to a major pesticide misuse incident in Oregon and Idaho onions, including the implementation of a voluntary market assurance testing program. Working with the Idaho State Department of Agriculture, efforts to sample and test onions for the detection of Furadan assured that the product was safe for distribution and consumption.
• Working with Oregon State University and the Oregon Agricultural Statistics Service (USDA), developed state-wide economic analysis of the agricultural industry, developed white papers on specific topics and trends impacting the industry, and assisted in policy development based on scientifically-sound data analysis.
• Served as the lead contact and liaison with industry and other agencies on renewable energy issues. More than 80 inquiries were provided assistance regarding potential agricultural feedstocks for biofuels. Multiple presentations were made to grower groups and other venues regarding agriculture's connection to renewable energy. Also, a web-based resource page for growers and others interested in renewable energy was developed and maintained. See: http://oregon.gov/ODA/energy.shtml
• Developed and currently maintains a Web page featuring financial resources, grants, technical assistance, and direct marketing information for growers. See: http://oregon.gov/ODA/grants.shtml
• Collaborated with ODA's Agricultural Development and Marketing Division to provide supervised price negotiations between grass seed growers and fishermen with buyers of their products. This is a unique process that affords the participants anti-trust immunity in pricing, ensures that the interests of all the parties are represented, and provides a balanced perspective to the price of these farm and ocean products.
• During 2005-2006 the Oregon Farm Mediation Program handled dozens of calls and provided counseling and assistance to parties in dispute regarding agricultural issues (contracts, nuisance complaints, farm labor, etc.). A total of 17 cases went on to mediation. Three cases settled before mediation began, 12 cases proceeded through mediation, and two cases remain open. Of the 12 mediation cases, 92 percent settled in agreement (11 of 12). Of the 17 cases, 15 were labor related while two were nuisance situations. See: http://oregon.gov/ODA/mediation.shtml

 
 
Information Office

• Responded to more than 5,000 e-mail inquiries, providing general information or referring customers to appropriate program personnel.
• Provided representation on the state e-governance committee and administers, facilitates, and coordinates overall Web development activities for the entire department.
• During 2005-06, produced 104 issues of the Oregon Department of Agriculture's "Story of the Week," 78 news releases, eight issues of the Agriculture Quarterly, the Oregon Farmers' Handbook, and annual editions of the Oregon Agricultural Resources Directory and Agricultural and Fisheries Statistics Bulletin.
• In addition to responding to more than 500 interview requests from media during the past two years, organized and conducted two highly attended media events involving the director-a tour and demonstration at a poultry operation to assure the public of safeguards against avian influenza, and an Oregon Noxious Weed Awareness Week event that featured the use of biological control agents on weeds.
• Worked cooperatively with other agencies and industry groups on numerous issues and initiatives, including the Century Farm and Ranch Program, avian influenza communications planning, West Nile Virus public outreach efforts, and development of a statewide crisis communications plan.

 
Administrative Services

• Developed and implemented a backup strategy for the agency's data in a centralized management environment, providing for disaster recovery on key network servers and services. With the implementation of both an onsite and offsite backup strategy, continuity of operations can be maintained.
• Completed security assessment on ODA's information systems by using a third party consultant. The assessment provided an operational plan for securing existing servers and enhancing the security preparations for future ODA computer servers.
• Rewrote the Food Safety Division Inspection Program for electronic reporting of inspections and put into production for sanitarians in the field. This will serve as a template for future inspection programs that will be created for other divisions in the agency.
• Completed development of the Web-based Pesticide Use Reporting System. This system, which will collect electronic reporting of pesticide usage, will be online in January 2007.
• Implemented a series of good practices to improve and provide uniformity in ODA's business, human resources, and information technology sections. This included development of an improved contracts and agreements tracking system, migration of agency staff from using paper work orders to an online "copy center" order process for photocopying needs, participation in the Designated Procurement Officer Council, and improved interface between accounting, accounts receivable, and accounts payable sections.
• Continued leadership of the Fleet Management Advisory Council for state agency automotive fleets.
• Human Resources personnel successfully processed the 2006 open enrollment for PEBB (Public Employees Benefits Board) and received training and certification in human resource management and ergonomics assessment. Staff also provided training to ODA managers and employees on preventing and dealing with harassment/sexual harassment, arranged for all agency diversity training, and initiated a series of "Managing Hostile Situations" training for divisions.
• Began implementation of the first phase of the Customer Information Relationship Management System (CRIMS) by processing Pesticide Division license renewals. CRIMS allows communications of common information to division specific systems. Reviewed and conducted testing on all remaining license types for implementation. Developed system requirements for the new accounting module component of CRIMS.
• Received the fiscal year 2005 Gold Star Certificate from the State Controller's Office for achieving statewide accounting goals and for excellence in financial reporting. The agency has a long-standing history of financial excellence and has received this certificate annually, for more than a decade.

 
Laboratory Services

• Provided testing and analysis of numerous samples provided by ODA divisions, including food samples for general bacteria and pathogens, finished dairy products, shellfish for marine biotoxins, and various samples for pesticide residues
• Continued the formalization of the quality assurance/control plan to meet accreditation program requirements of FDA, USDA and EPA.
• Over a four week period, processed and tested 615 market assurance onion samples in response to pesticide misuse. Additionally tested several hundred enforcement samples in following months for misuse investigations. (Normally scheduled for 100 samples per year from the enforcement program)
• Increased involvement in FERN (Food Emergency Response Network) by participating in meetings and trainings.
• Implemented various new test methods that provide faster and more accurate results, such as testing for Vibrio parahaemolyticus by PCR (polymerase chain reaction).

• Continue to define and develop emergency response preparedness with internal and external partners.
• Assist in the development of policy proposals for the 2007 Farm Bill based on the interests and needs of Oregon's agricultural industry, natural resources, and Oregon's sustainability goals.
• Work with growers interested in renewable energy projects, identify resources and continue to provide liaison assistance between biofuel processing facilities and growers. Work with OSU and growers to ensure that biofuel crops don't impose harm to specialty vegetable seed growers.
• Continue a collaborative process with grass seed industry and seafood industry to reach successful price negotiations.
• Ensure that all potential parties to agricultural disputes have a forum for addressing their disputes through the Farm Mediation Program, with a goal of an 80 percent settlement rate.
• Provide "Message Mapping" communications training for ODA staff most likely to respond to media and public inquiries during a crisis.
• Continue refining to improve the ODA Web site to meet increasing demand for information and services.
• Reinstate group orientation sessions for new employees, finalize and distribute a new employee handbook, and continue to obtain and present training opportunities for ODA staff.
• Information Systems to streamline various inspection records data programs used by each division.
• Consolidate and streamline various functions and systems used by ODA including invoicing systems, business programs, and the electronic-reporting of divisions' inspection programs.
• Complete the migration of information for all divisions from Agriculture Information System to License 2000, which will allow ODA customers to renew and pay for their licenses online via the Web.
• Continue the effort to centralize ODA data sources to the Customer Relations Information Management System (CRIMS).
• Continue to develop analyst cross-functional abilities in the ODA laboratory by identifying specific test and instrument training needs.
• Develop a fiscally responsible instrument replacement strategy for the laboratory that is responsive to current and future client program needs, and considers technological advances and staff training needs.
• Explore the implementation of ISO 17025 quality assurance program to assist client programs in the area of certification locally and globally.
• Work with other departmental lab groups to further enhance departmental laboratory/analytical capabilities and responsiveness.
• Assure that ODA's export program is current with changing foreign requirements and assess its role in the department's overall certification initiative.

• The amount of interest in renewable energy is growing exponentially, yet ODA lacks the resources to respond to all issues. Those issues include producer interest in growing potential feedstock crops and any associated conflicts; the need for more research into cropping and crop management; and the need for technical assistance, project development, and financial resources.
• The interest in biofuels is also creating policy and management issues with respect to product distribution systems-the public demand for biodiesel and ethanol is growing, but distribution points are limited and fuel pumps that weren't designed for these new fuels are affecting distributor warranty and consumer protection issues related to correct measurement of dispensing. The Director's Office will continue working with the Measurement Standards Division and industry interests to ensure distribution options are available, while protecting consumer and retailer interests.
• A new automated employee recruitment system is being developed by the Department of Administrative Services (DAS) that will significantly impact all agency recruiting practices.
• Succession planning, recruiting, and retaining quality employees with expertise and experience in ODA program areas will continue to be a challenge that must be met due to retirements and vacancies created as employees leave the agency.

	ADMD administrator, Gary Roth

• industry and cluster development
• market development and product promotion
• Commodity Commission oversight.

Industry and cluster development

• Spearheaded collaborative efforts to incorporate food products into Brand Oregon programs, increasing the sales of many Oregon products while highlighting the state's quality of life for the purpose of stimulating the overall economy. Efforts included but are not limited to:
• a statewide Oregon Bounty program in the fall of 2005 promoted Oregon pears, cheese, hazelnuts and wine, with the Fall 2006 Oregon Bounty program adding beer, seafood, and other local products.
• a promotion with 12 Thriftway stores featuring Oregon berries and value-added berry products. Oregon suppliers reported first time store placements as well as increased sales over the promotion period.
• Teamed up with the Oregon Annual Ryegrass Commission to lead a domestic week long trade mission to Illinois, Indiana, and Missouri. The mission introduced key Midwest agricultural educators, media, government officials, and buyers to the economic and environmental benefits of annual ryegrass as a cover crop for soybeans and corn. The mission resulted in positive publicity, as well as Oregon ryegrass orders for the coming season.
• Coordinated state efforts to secure USDA funding for a Senior and WIC Farm Direct Nutrition Program (FDNP) that resulted in $2 million in increased revenue to Oregon's farmers' markets and roadside stands. The program was expanded to serve 40,000 eligible seniors with redemption rates reaching 98 percent, at 600 participating Oregon farm stands and farmers' markets. An outreach program introduced 32 "farmer friendly" banks and credit unions statewide to accept FDNP checks without charging processing fees.
• Hosted a school lunch food purchasing workshop for Oregon food producers to learn about wellness policies and purchasing programs for schools. This is part of an effort to connect more Oregon producers with buyers to increase the amount of Oregon products served in local schools.
• Coordinated with McDonald's restaurants in the Northwest to celebrate Grower Appreciation Days. More than 180 Oregon restaurants participated, highlighting the local production and consumption of Oregon-grown wheat, onions, potatoes, blueberries, cucumbers and dairy products.
• Led the collaborative efforts of eleven different organizations in the Nexus Project to commercialize a new value-added pear product, benefiting both growers and processors. In the project's first year, the product and the processing line were developed. That created 37 seasonal jobs utilizing 2,000 tons of Comice pears for 1,500 cases distributed in Harry & David stores. Based on the successful sales of this gourmet product at $12.95 per jar, an additional 30,000 cases have been ordered.
• Provided critical support in the successful grand opening of the new $12 million wheat segregation facility near Arlington in Gilliam County. ADMD assisted with the project feasibility study and the creation of a business plan. The facility gives the region's wheat producers a competitive advantage in the marketplace and, at the same time, provides 25 new full-time jobs.
• Facilitated a series of meetings for stakeholders from throughout Oregon to find a solution to the loss of rendering options in Oregon. Steps have been taken to initiate the Oregon Solutions Project, which would provide rendering alternatives for businesses ranging from cattle and dairy producers to grocery store and restaurant owners.
• Through its partnership with OSU at the Food Innovation Center (FIC), ADMD worked to extend the center's services beyond smaller, start-up companies to include the bulk of food companies in Oregon that fall in the medium size range. In addition, ADMD is working with the industry cluster efforts of the Northwest Food Processors Association to secure funding and implement the Vision Impact and Productivity (VIP) Center. This will compliment the efforts of the FIC in bringing greater competitiveness to the food processing industry, thereby improving Oregon's economy and creating jobs.
• Participated on local, national and international levels, advocating for transportation efficiencies that keep Oregon agricultural products competitive in the marketplace. As an example, ADMD worked closely with the Oregon Freight Advisory Committee to improve the passage of trucks on Highway 140 in Southern Oregon so producers of the region can avoid traveling 200 miles out-of-route. As a result, efforts are underway at the Oregon Department of Transportation (ODOT) to investigate and implement safe, inexpensive short-term solutions and more comprehensive long-term answers.
• Continued market exploration and expansion efforts for Oregon nursery stock in China. Key efforts included a trial shipment of plant material to the Shanghai Botanic Garden, a trade development mission to Beijing, Jinan, and Shanghai, and hosting two inbound buying missions from Shanghai (November 2005 and August 2006).

 
International market development

• Launched a direct marketing campaign in Japan this biennium, with similar efforts to begin soon in Korea and Taiwan. This marketing medium, specifically internet retailers and home shopping networks, is proving to be a highly effective means of promoting and merchandising high value and value-added agricultural products. This project is the first of its kind to be executed by any state or federal agricultural promotion agency and initial sales of specialty products have been very encouraging.
• Signed a Letter of Intent on Marketing Cooperation with top ranking officials from the China Council for the Promotion of International Trade (CCPIT). CCPIT has 700 offices responsible for imports and exports. The agreement is the only one of its kind with a U.S. state and creates a marketing partnership to increase agricultural exports from Oregon to China.
• Hosted 20 international buying missions from countries representing the bulk of Asia's buying power, introducing the buyers to nearly 100 Oregon companies.
• Over the course of the biennium, ADMD led the participation of numerous Oregon companies in trade shows, trade missions, product showcases, and technical seminars in Japan, Korea, China and Taiwan for a range of products including seafood, wine, soups, sauces, dried fruits, and nuts. One product showcase series alone featured products from 10 Oregon companies in Taiwan and China. In Tokyo, 15 Oregon company principals participated in a product tasting and seminar attended by more than 200 importers, distributors and key opinion leaders.
• Total economic benefit as a result of ongoing trade activities with Oregon producers resulted in $51 million in 2005. Results for 2006 were not available at the time this publication went to print.

 
Board, committee and task force participation

• Represented ODA on the nine Governor's Economic Revitalization Teams. This participation brought invaluable agricultural perspective to these local development bodies.
• Represented ODA on the Oregon Freight Advisory Committee.
• Represented ODA on the Oregon Developmental Fisheries Board. This board provides policy guidance to the ODFW.
• Represented the ODA on the Portland Public Market Board and the Oregon Farmers Markets Association Board.
• Represented the ODA on the Northwest Food Processors Association Cluster Initiative Leadership Group.
• Represented the ODA on the Interagency Coordinating Council on Hunger.
• Represented the ODA on the State Sustainability Coordinators Committee.

 
Commodity Commission activities

• Played a key role in facilitating the continued operations of Oregon's 28 commodity commissions that have combined budgets of approximately $14 million. With staff support and oversight of the commissions' annual operational plans, contracting, budgeting and financial reporting, the commissions assess producers to conduct and fund research, generic marketing, and educational activities.
• Supervised the annual appointment of more than 70 volunteer commissioners.
• Developed a legislative concept, continuing ODA oversight functions of 25 commissions, and requiring public membership on those commission boards.
• Provided staff support to the Salmon Commission as it responded to the severely curtailed commercial salmon fishing season with relief programs for the most economically hard hit fishers.

• Create sustainable benefits and wealth for all of Oregon through meaningful agricultural development and marketing programs.
• Plan and deliver high-quality, cost effective activities that meet the development and marketing needs of Oregon agriculture and food processing companies in domestic and overseas markets.
• Become the center of new product development and innovative food through an active partnership with OSU at the Food Innovation Center.
• Ensure the efficient operation of Oregon's 28 commodity commissions.
• Expand direct marketing opportunities for Oregon agricultural producers.
• Increase offshore trading opportunities for Oregon exporters in Japan, Korea, China and Taiwan.
• Collaborate with other state agencies and local development organizations to leverage state developmental efforts, increase efficiencies, and avoid duplication of service.

• Continued increased costs for labor, insurance, and fuel, along with other present challenges, make it more difficult for Oregon producers to cost effectively provide a value packed product in the marketplace. The challenge for Oregon agriculture will be to find and develop new market niches that are sustainable. It is in these niches we see current and projected prosperity for Oregon agriculture.
• With 80 percent of Oregon agriculture's production needing to leave the state to find a market, the growing popularity of "buy local" and "sustainability" present both opportunities and challenges. Oregon's ability to address these by capitalizing on diverse and high-quality product offerings, while paying attention to health concerns, gourmet trends, and the "natural" movement will help determine the success of Oregon products both at home and in the necessary markets beyond the state's borders.

	AHID administrator, Don Hansen

Animal Health Program

• Continued with emergency response preparedness activities by refining ODA's Animal Disease Emergency Management Plan to now be integrated into the Oregon Emergency Response Plan.
• Conducted a full-scale emergency disease management exercise involving five counties to assess the effectiveness of the Emergency Management Plan.
• Continued to train ODA veterinarians, and a corps of deputy state veterinarians, enhancing their abilities to respond in an animal emergency.
• Sent ODA veterinarians to foreign animal disease diagnostician training at Plum Island, NY and Ames, Iowa.
• Worked with the public health veterinarian on a statewide campaign to inform Oregon citizens about ways to protect themselves and their horses against West Nile virus.
• Completed an emergency response plan for avian influenza (AI) in preparation for the possibility of its occurrence in Oregon.
• Worked with state and federal agencies to develop a multi-agency response plan to be used in the event of a highly pathogenic AI emergency.
• Conducted outreach to bird owners, advising them on how to counter the threat of AI to their flocks.
• Established an online Web site for backyard bird owners to list the location and number of birds they own. If well developed, bird owners could be quickly located, in the event of an outbreak of AI.
• Collected surveillance samples for AI testing from domestic birds throughout the state.
• Continued to liaison with county officials, as they developed their county emergency response management plans, and to advise them about inclusion of animal health issues.
• Worked in a cooperative effort with Oregon State University Extension faculty to educate producers about the National Animal Identification System.
• Promoted a cost-sharing program with producers that allowed them to purchase livestock identification devices and the equipment to read and/or record ID data.
• Sustained outreach and education efforts for producers to enhance animal health by promoting a Johne's disease control management model for producers to use.
• Assisted ODA and the Oregon Department of Human Services Biopharm Ad Hoc Committee to develop a consensus policy recommendation to the governor regarding biopharmaceuticals produced in human food or animal feed crops.

 
Livestock Identification Program

• 100 percent of all livestock theft reports by Oregon producers were investigated, many resulting in restitution and/or criminal convictions.
• Worked with an industry advisory group to address fee structure in light of increasing costs and a decline in statewide cow herd numbers. An immediate small inspection fee increase has been proposed. This advisory group has also been actively working, along with major industry organizations, toward a proposal for legislative consideration to adopt a long-term program direction and adequate funding. A current major proposal is to remove the mandatory inspection of horses at traditional inspection points.

 
Feed Program

• Contracted with FDA to perform BSE (mad cow disease) feeding ban inspections at every feed ingredient manufacturer in the state, along with several dairies and trucking firms. Completed 90 inspections in fiscal year 2005 and contracted to do 85 in Fiscal Year 2006.
• Staff completed advanced inspector training sponsored by the Association of American Feed Control Officials (AAFCO). This should result in consistent state-to-state inspection and enforcement for the industry.
• Completed animal protein handling inspections at 20 dairies and 10 trucking firms to verify the BSE firewall is in place.
• Attended fall 2005 ODFA (dairy farmers) meetings around the state to inform them of record keeping obligations under the BSE prevention rules.
• Decreased feed sample violation rate from 28 percent in 2004 to 23 percent as of November 1, 2006. Violations per analyte are also down.
• Performed data analysis of all 2005 samples to identify patterns of violations and learned 67 percent of the violations were due to low protein at eight manufacturing plants. Intensely focused outreach was done to reduce protein violations.
• Assisted in multi-state investigations of feed contaminants that caused animal health problems. Contamination materials included Monensin in horse feed, excess magnesium oxide in horse feed, and excess salt in bagged poultry feed.

 
Predator Control Program

• Executed work plans with USDA Wildlife Services to limit loss endured by agricultural producers, due to wildlife depredation. This includes providing funds as part of a cooperative program to control predators.

Animal Health Program

• Ensure control of large-scale animal diseases and diseases transmissible between animals and humans. Plan and prepare to prevent and eradicate exotic and emerging animal diseases.
• Continue upgrading services of the Animal Health Laboratory with new testing technologies to improve accuracy and efficiency. Cost containment coupled with quality service is a priority goal of the laboratory.
• Maintain Oregon's disease-free status in state-federal cooperative disease control programs.
• Continue vigilance for the threat of bioterrorism and agroterrorism by training and coordinating with other state, federal, and industry animal health and emergency preparedness programs.

 
Livestock Identification Program

• Maintain a high degree of professionalism and expertise that helps identify stolen or misplaced livestock and assists traditional law enforcement in prosecution of those who commit theft of livestock, primarily cattle.
• Enhance traceability of livestock animals by encouraging more branding and documenting movements more thoroughly at saleyards and country inspections.

 
Feed Program

• Ensure that all mills pass annual BSE inspections and handle restricted animal proteins lawfully.
• Continue to build concept of "feed safety is food safety" with industry. Effectiveness will be demonstrated by fewer violations on samples and decreased levels of potentially harmful ingredients in animal feed.
• Raise dairy industry awareness of the need to keep feed records, as a way to document BSE firewalls.

Animal Health Program

• Maintaining an appropriate level of surveillance for emerging and foreign animal diseases, especially avian influenza, will be a high priority.
• Enhancing the ability to locate animals that pose a disease risk to Oregon's livestock enterprises will be a challenge for the program.

 
Livestock Identification Program

• Investigate methods of incorporating new technologies into the existing program to enhance recovery of animal information. Adoption of such methods may also satisfy some of the requirements of a national animal identification system directed at controlling animal disease outbreaks.
• The biggest challenge facing the inspection program is secure and ongoing funding. This looming financial crisis will increase the burden on remaining producers as numbers decline due to loss of grazing land and high travel costs. Essentially, this is a shrinking industry that will continue to have statewide service demands.

 
Feed Program

• The price of rendered fat and meat and bone meal has decreased, making rendering economically inviable. Three of four Oregon rendering plants have closed. This has resulted in a shift in feed ingredients and has increased the cost of protein in feeds. Additional financial burden is placed on livestock producers as they try to find safe disposal of on-farm dead animals.
• The Washington cow found positive for BSE has driven home the need for 100 percent compliance with the 1997 ruminant-to-ruminant feed ban. The division has been required to inspect more facilities and farms, in search of feed by-products in waste streams. The program will also have to spend more time looking at how feed is moved and how transportation vehicles are cleaned.

Major issue Global animal disease prevention and response to maintain a viable and healthy livestock industry. Reduce disease potential for humans and animals.   ODA response The public and livestock industries have both expressed heightened concern over such issues as BSE, earlier this decade, and more recently, avian influenza. One of the best ways for ODA to respond has been to show that a great deal of planning and preparation has been undertaken to protect both the producer and the consumer.   In order to improve the ability to respond to animal diseases of concern, the State Veterinarian and staff veterinarians have gone to special training. In addition, AHID has assembled and is providing training for a cadre of 160 deputy-state veterinarians. As part of the Oregon Veterinary Emergency Response Team (OVERT) training is provided on all aspects of controlling a highly contagious fast spreading animal disease that may involve dozens of locations in several counties before it is eradicated. Team members are instructed on proper diagnostic methods, sample collection, biosecurity, personal safety, animal depopulation, and many other relevant topics.   As a means of assuring a uniform, rapid and competent response, AHID has developed an Oregon Animal Disease Emergency Management Plan. The plan outlines, in general, the steps AHID would take in an actual animal disease emergency event. For more specific disease response guidelines, AHID developed response plans for specific diseases such as an Avian Influenza Surveillance and Response Plan and the Multi-Agency Response to a Highly Pathogenic Avian Influenza Animal Emergency Plan. Full scale and/or tabletop exercises for all plans have been conducted to test their completeness and effectiveness.

	CID administrator, Jim Cramer

• Inspected 3.16 billion pounds of produce for processing and 1.3 billion pounds of fresh fruits, vegetables, and tree nuts.
• Certified for export 218 million pounds of fresh fruits and vegetables, including more than 18 million pounds of apples, 29 million pounds of hazelnuts, 33 million pounds of onions, 70 million pounds of pears, and 10 million pounds of potatoes.
• Certified 218 million pounds of fresh fruits and vegetables for export.
• Led the nation in audits for the Federal/State National Auditing Program for Good Handling Practices (GHP) and Good Agricultural Practices (GAP). A total of 75 audits were performed on facilities and farms with more than 19,000 acres certified for GAP. This voluntary program was developed and implemented at the request of the agriculture industry.
• Worked closely with USDA-Animal Health Inspection Service (APHIS) to develop a pilot program designed to ease the exporting of Oregon products. This program allows industry-employed staff with ODA training and oversight, to inspect hazelnuts and onions. The inspected product is officially recognized by APHIS for export certification. This pilot program reduces inspection costs to the industry, while improving efficiencies to ODA
• Sampled more than 8,300 lots of seed for official testing and verification as required for phytosanitary export certification.
• Seed sampling program gained recognition from the International Seed Testing Association (ISTA), allowing officially recognized samples to be taken. This furthers the agency's ability to help the seed industry move product. (ISTA is an internationally recognized seed sampling and testing process, required by many foreign markets.)
• Worked cooperatively with other divisions to provide full service product export certification including sampling, testing, and phytosanitary certification of seeds, tree nuts, fruits and vegetables.
• Provided workshops to help the industry comply with seed laws.
• Provided one-stop sampling, testing, and certification to the seed industry to help the seed industry market products, domestically and internationally, in a timely manner.
• Administered Oregon's Sod Quality Seed and Endophyte Forage Seed Tagging programs. Annually more than 229,000 tags are issued to certify seed is free of endophyte fungus, and/or meets Oregon sod quality seed standards. Both programs are voluntary and are used to increase the market share and price of Oregon seed.
• Maintained a cost effective Origin Certification Program, allowing Oregon hay, straw, and grain shippers to meet the requirements of California's exterior quarantine for cereal leaf beetle.
• Sampled, graded, and certified nearly 37,000 bales of hops in 2006 for Oregon's hop industry.
• Conducted an identity-preserved program, helping the industry gain market access and market advantage in national and international markets.
• Developed and implemented a pilot program for certification of weed-free forage and straw. This project was coordinated with the Plant Division's Weed Control Program and certified more than 900 acres in 2006.

• Develop and implement electronic certification, providing real-time information to producers and handlers for marketing of product. Electronic certification would also reduce CID support staff workload, providing increased efficiency and greater administrative streamlining.
• Provide additional value to Oregon products through verification, inspection, and certification programs to meet industry demands.
• Integrate the Plant Pathology Laboratory into the CID Division, providing a greater measure of seamless service that includes sampling, testing, and certification.
• Expand alternative inspection programs to include programs that reward companies with proven performance records, thereby increasing efficiency while reducing required oversight and cost to all parties.
• Provide an educational mechanism for Oregon producers and handlers to meet retail requirements for certification of processes as required by their customers. Areas addressed would include Good Agricultural Practices, Good Handling Practices and Sustainable Agriculture.
• Increase consumer confidence in the Oregon seed industry through regulatory and service programs.

• The challenge of moving Oregon commodities internationally and domestically continues to grow in complexity because of stricter requirements, more difficult work-plans, and a growing list of pests.
• Wholesale produce vendors, with specific process audit requirements, frequently require audits from outside the area, and sometimes outside the country. Travel time and expense, added to the audit cost, greatly increase the overall expense, cutting further into the profit margin of producers.
• It is increasingly expensive for the agriculture industry to make needed infrastructure changes to facilities and practices in order to meet market demands.

Major issue Access to foreign markets and development of stateside markets. Resources to address non-tariff barriers, market development, and product introduction.   ODA response Helping producers gain and maintain access to foreign and domestic markets is the primary function of the division. Generally, this is accomplished by working with the industry to understand their needs and the needs of their customers and developing and/or adopting certification schemes that satisfy these demands. Many certification services are long standing and traditional while others are new, innovative and proactive to market demands.   A good example of how this has worked is with the division’s efforts to provide phytosanitary certification of Oregon commodities to meet requirements of importing countries. This is done by Commodity Division inspectors through a cooperative agreement with USDA-Animal Plant Health Inspection Service. The agreement enables ODA to inspect and certify that Oregon products are free from pests or diseases that would otherwise prohibit movement into a foreign country.   In 2005 alone, more than $157 million worth of Oregon fruits and vegetables was able to be exported because of the inspection and phytosanitary certificates written by the Commodity Inspection Division. That includes nearly 125 million pounds of Oregon pears valued at $32 million, and 36 million pounds of Oregon hazelnuts valued at $26 million.   Another certification provided is the Good Agricultural Practices/Good Handling Practices program (GAP/GHP). This involves voluntary audits of processes designed to minimize the potential for microbial contamination in fresh fruits, vegetables, and nuts. This is a relatively new USDA Federal/State program still evolving to meet changing industry needs. In 2005, nearly 24,000 acres of Oregon blueberries, onions, potatoes, cherries, mint, and pears were certified by ODA under GAP/GHP with a value of nearly $82 million.   Oregon agricultural producers needing to meet market demands and conditions benefited from traditional services provided by the division, including Third Party Inspection and Shipping Point Inspection. ODA provided unbiased official sampling, grading and certification, to satisfy dealings between buyers and sellers. Without these key services and programs, Oregon agricultural commodities would not be able to enter various markets.

 

	FSD administrator, Ron McKay

Food Program

• Performed 13,064 inspections on 7,928 licensed food establishments, including retail stores, food processors, bakeries, warehouses and locker plants in 2006.
• Performed 750 contract inspections for FDA in each of the 2005 and 2006 contract years.
• Protected consumers by participating in recalls of several different products during the past year. The recalls involved cheese with Listeria monocytogenes, ice cream products with undeclared allergens, produce with E. coli O157:H7, and lead in chocolate candies.
• Responded to 464 complaints on food quality, foodborne illness and personnel practices in 2006.
• Two ODA staff received training to complete FDA contract audits. The Food Safety Division will be required to complete audits and receive certification during the next contract period. Staff also attended training on juice HACCP, dairy processing, and the state's Drinking Water Program. The training allows us to contract with the Oregon Department of Human Services-Public Health Division to perform surveys and inspections for the Drinking Water Program, thereby reducing the number of regulatory agencies inspecting food firms.
• Hired and trained two new field staff, filling all positions within the division.
• Nearly completed implementation of a new field inspection computer program to allow staff to electronically report and transfer data from the field. This required a thorough review of all information in the system and how it was used. The new inspection program will provide more information to the field staff and be easier to use.
• Updated the food regulations (Division 25) by adopting the 2005 version of the Code of Federal Regulations and repealing the organic regulations that are no longer needed because of the USDA National Organic Program.
• Responded to the industry's desire for consistent interpretation of the Food Code by standardizing ODA's inspection process in the retail food program.
• Staff continued to participate in national industry conferences such as the Conference for Food Protection, Interstate Milk Shippers Conference, and the Interstate Shellfish Shippers Conference.
• Provided frequent outreach and consumer education on food safety issues through media interviews, public presentations, and other venues.

 
Dairy Program

• Performed 1,098 inspections of dairy producers, Grade A dairy plants, and dairy product plants in 2006.
• Collected more than 1,286 milk samples to be tested for antibiotics, bacteria and standards of identity in 2006.
• Conducted 224 tests on pasteurization equipment belonging to licensed dairy processors in 2006.
• Continued to meet the requirements of the Interstate Milk Shippers (IMS) Program by inspecting all farms and plants at the required frequencies. In addition, all pasteurization equipment was tested at the required frequency of four times per year. This allows interstate shipment of Oregon dairy products.
• Continued to enforce the state's law banning raw milk sales in Oregon by removing product from sale when violations occurred. ODA has also worked with public health officials to provide outreach and education to the public on the hazards of raw milk.

 
Shellfish Program

• Issued recreational shellfish harvest closures along the Oregon coast, due to marine biotoxins (domoic acid). These closures, to protect consumer health, were done as part of a monitoring, sampling, and testing program administered by ODA.
• Issued recreational shellfish advisories for flood waters and contaminate spills, throughout the biennium.
• Issued commercial shellfish harvest closures due to the presence of marine toxins or elevated fecal bacteria levels, caused by heavy rain events. Also conducted sanitary surveys and monitored water quality in commercial harvest areas, to comply with FDA standards.
• Completed the collection of pre-season crab viscera samples and submitted them for domoic acid testing. These sample results, along with information from the states of Washington and California, allow ODA to advise the Oregon Department of Fish and Wildlife and the crab industry regarding the appropriate opening date for the crabbing season.
• Updated shellfish regulations, adding a definition for oyster seed and adopting the 2005 National Shellfish Sanitation Program Model Ordinance.
• Collected 1,175 samples of water and 385 samples of shellfish to be analyzed for bacteria and marine biotoxins.

• Complete the new field inspection computer program to include electronic transfer of data, eliminating the need for double entry procedures.
• Continue working with federal and state agencies to reduce the likelihood of a food related bioterrorism event, and prepare a response to such an event. Specifically, working with Oregon Emergency Management (OEM), ODA will coordinate its response with other federal, state, and county agencies in the event of a problem at the Hanford Nuclear Reservation or the Umatilla Army Depot. Coordination and communications will be critical in responding to any significant event. Division activities will be coordinated with the agency emergency management coordinator.
• Complete implementation of the new licensing system (L2K) and the Customer Relations Information Management System (CRIMS) Project.
• Begin using FDA's new data entry system for contract inspections, and train staff to enter the information.
• Adopt the 2005 version of the Federal Retail Model Food Code.
• Work with the Farmers' Market Association to strengthen food safety oversight at farmers' markets and other temporary food sales events.

• The complexity of inspections, and the amount of time necessary to conduct them, continues to increase as a result of mega-mergers, and new processing and food service activities in the retail food industry.
• The new allergen labeling requirements are in effect. This will require informing the industry of labeling requirements.
• The diversity of Oregon's population is increasing. Language barriers make it difficult for the division to effectively communicate food safety requirements.

Major issue Direct marketing, certification, and access to local food markets for smaller growers.   ODA response Protecting the food supply through inspection is an obvious benefit of the Food Safety Division’s efforts. Less obvious to the public, however, is the behind-the-scenes work done by inspectors to proactively assist producers and processors who want to participate in direct farm marketing activities such as farmers’ markets.   In recent years, Oregon’s dairy industry has greatly expanded its product offerings, particularly in the production of specialty and artisan cheeses. Many of these cheesemakers want to market to the consumer directly but need to know the requirements and how to get started. Oregon State University has been conducting a class for new, small cheese plants. ODA’s Food Safety Division has been participating in the class and informing students of the regulatory requirements even before they begin processing of the cheese. That helps cheesemakers avoid potential problems down the line.   The education of the processor is part of a long-time mission of the division. Inspectors have routinely worked with new businesses on plan review, process evaluation, and making sure the label and packaging is meeting all requirements– even before these new businesses begin operating. Again, the investment of time by the inspector saves the businesses potential problems down the road. This also makes it easier for these growers to market their product properly whether it is at a farmers’ market or at a more traditional retail outlet.   Finally, the Food Safety Division continues to work with Oregon’s farmers’ markets directly to help them prosper while ensuring food safety to their customers. Specifically, discussions are underway on potential regulatory amendments and perhaps licensing of vendors that will effectively deal with food safety issues at farmers’ markets.

 

	MSD administrator, Russ Wyckoff

• Remained very active in the National Conference on Weights and Measures (NCWM) with Oregon being represented on the Board of Directors and Specifications and Tolerances Committee. The NCWM is the nation's consensus body that develops model weights and measures regulations adopted by Oregon and the rest of the United States.
• As one of only eight states authorized to do so, the division performed National Type Evaluation Program (NTEP) field evaluations on large capacity weighing devices such as floor mounted, single animal, livestock, axle-load, vehicle, and hopper scales.
• Successfully completed the division's second National Voluntary Laboratory Accreditation Program (NVLAP) on-site audit. The laboratory continues to meet all National Institute of Standards and Technology (NIST) and (NVLAP) Echelon I environmental parameters. The Oregon MSD Metrology Laboratory maintains its NVLAP Echelon I accreditation for mass calibrations and is one of only a few state metrology laboratories with this NVLAP accreditation. NVLAP accreditation ensures that the MSD Metrology Laboratory is able to perform the high precision weights and measures calibrations required in today's highly technical world.
• Worked closely with Oregon farmers' markets, helping them with scale certifications and providing information on correct methods of sale for produce and other items. Division field inspectors attended farmers' market meetings to provide information to vendors and to examine their scales to ensure accuracy.
• Routinely screened gasoline to verify octane levels and periodically sampled diesel fuels. This process included reviewing the fuel delivery documentation, checking for needed labeling on fuel dispensers, and probing storage tanks for the presence of water. During the past year, the division screened nearly 3,500 gasoline samples. This ensures that over two billion gallons of gasoline and diesel sold to consumers in the state of Oregon each year meet national quality standards.
• Examined commercially used weighing and measuring devices (scales, gasoline and diesel meters, etc.) to make sure they are legal-for-trade, operating correctly, and free from fraud or misuse. These unannounced inspections at businesses throughout Oregon help assure that both businesses and consumers receive accurate measurement and that there is equity in the marketplace.
• In addition to routine inspections, division field inspectors investigated approximately 140 consumer complaints last year. Complaints were related to firewood quantity, gasoline quality and quantity, and product packaging and labeling requirements.
• MSD staff refined the screening procedures for quantity compliance audits of packaged food products. Packaged product audits help ensure that consumers are receiving the quantity that they pay for.
• Met with retailers to explain screening procedures of packaged products, results found, and to assist with solving any errors. Also provided in-store demonstrations and training.
• Assisted the alternative fuel industry in locating dispensers suitable for use with biofuels, including E85 and biodiesel fuel.
• Designed and built a test unit for high flow alcohol meter testing.
• Adopted nationally accepted labeling and fuel quality standards for biofuels, including biodiesel and ethanol.
• Worked with industry representatives to update Oregon's Administrative Rules by adopting the latest versions of NIST Handbook 44, NIST Handbook 130, and NIST Handbook 133. The handbooks are used by all US states, and adopting the latest version helps Oregon maintain uniformity with other jurisdictions.

• Work with industry on devices suitable for use with E85 and biodiesel now present in the marketplace.
• Educate weighing and measuring device service agencies regarding Oregon's weights and measures regulations.
• Explore alternative examination methods that allow the division to meet industry needs, while the number and complexity of weighing and measuring devices increases.
• Continue promoting consumer and retailer awareness through educational programs on measurement accuracy, labeling requirements, and product sale methods.
• Continue to meet the ever-growing metrological needs of Oregon businesses.
• Continue to develop Measurement Standards Division Web pages, thus increasing information, forms, and online services available to consumers and businesses.
• Continue working with industry and consumer groups to ensure equity in trade and to bolster consumer confidence in Oregon's products.
• Ensure that motor fuels purchased in Oregon meet national quality standards.
• Work with e-commerce industries to ensure fairness for online businesses and consumers.

• The division requires a secure and stable funding source in order to ensure equity in the marketplace through inspections done with adequate frequency.
• Responding to the needs of business and consumers statewide has become more challenging given division resources. This may require prioritizing responses based on the economic impact of the issue or problem.
• The number of weighing and measuring devices used commercially in Oregon has continually increased.
• The complexity of technology utilized in weighing and measuring devices has required increased inspection time by the division.
• It has become increasingly difficult for the division to contact appropriate officials in retail operations due to a high number of mega-mergers that have established corporate offices outside of Oregon.
• New marketing trends require creative inspection procedures such as test purchasing to verify transactions.
• Increased demand for alternative fuels has outstripped the infrastructure to deliver those fuels, such as storage facilities and approved dispensers.
• The motor fuel industry requires education on fuel dispensers that are compatible for use with alternative fuels coming into Oregon's marketplace. In addition, the industry needs to learn the necessary requirements for properly retrofitting existing dispensers for use with alternative fuels.

Major issue Renewable energy development, in which local producers can participate and benefit.   ODA response Renewable energy in the form of alternative motor fuels such as ethanol and biodiesel is good for not only agriculture but also benefits consumers and the environment. Renewable energy provides an alternate source of fuel that is cleaner burning and more environmentally friendly, while making Oregon less dependent on foreign oil. Farmers may also have more cropping options with opportunities for refineries located within the state. However, with most new opportunities come distinct challenges and questions.   Currently, there is a lack of approved devices for dispensing alternative fuels in Oregon and the rest of the US. The Measurement Standards Division, like its counterparts in other states, is allowing the distribution of fuels with higher ethanol concentrations and biodiesel through stand alone dispensers that are properly retrofitted for these products and that use a dedicated storage tank. This approach allows distribution of the products while giving time to manufacturers of retail motor fuel dispensers to get new devices approved for dispensing E85 and biodiesel products now in the marketplace, in a manner similar to the dispensing of other available fuels.   The division will continue to work with the National Conference of Weights and Measures, the National Type Evaluation Program, manufacturers, and all industries involved to resolve current issues while still providing consumer protection and equity in the marketplace. The end result should be good for agriculture and the state as a whole.