Parallel ownership rules for segregation and mass balance tracking

Regulatory framework and parallel ownership applicability

Parallel ownership occurs when an individual producer, producer group, or group member owns certified and non-certified units of the same product simultaneously. In previous versions, this regulatory framework was distinguished as parallel production and parallel ownership, but the regulations now collectively term this parallel ownership under the GLOBALG.A.P. General Regulations – Rules for Parallel Ownership. This scenario applies whether the non-certified product is grown internally or purchased from external suppliers. The rules affect Option 1 individual producers, Option 2 producer groups, and postharvest handling units.

The primary objective of these rules is preventing the commingling of certified and non-certified commodities while eliminating false certification claims. Applicants must declare parallel ownership during annual registration with their certification body. If a producer introduces non-certified products mid-season without prior registration, they must immediately notify their certification body and provide documented evidence of traceability and segregation procedures before handling operations begin.

While handling certified and non-certified products within the same postharvest handling unit is permitted, producing certified and non-certified units of the same product on a single production site is strictly prohibited. In aquaculture, exceptions to single-site production prohibitions are granted only on a case-by-case basis by the GLOBALG.A.P. Secretariat.

Mandatory physical segregation and product identification

Physical segregation ensures that products originating from certified production processes remain strictly separated from non-certified products across harvesting, storage, processing, and dispatch. Principle AQ 13.01 and Section 4.6 d require an effective identification and handling system to prevent mixing. Conforming products entering a postharvest handling unit must be immediately identified with a GLOBALG.A.P. Number or a unique internal reference on the smallest individually identified unit.

Identification and labelling rules restrict how certification credentials appear on products and transport documentation:

• GGN usage: Principle AQ 13.02 and Section 4.6 f mandate that the GLOBALG.A.P. Number appears on all final certified products. The GLOBALG.A.P. Number must never be affixed to non-certified products.
• Delivery discrepancy procedures: Principle AQ 28.02.03 dictates that products ordered as certified but delivered without the supplier GGN or CoC Number must be immediately relabeled and handled as non-certified.
• Transaction documentation: Principle AQ 28.04.02 and Section 4.6 h require sales invoices and shipment documents to state the GGN and positive certification status, marked as GLOBALG.A.P. certified.

Dual mass balance tracking and conversion loss verification

Parallel ownership mandates continuous dual mass balance accounting for all registered products. Principle AQ 14.02 and Section 4.6 k require producers and quality management systems to maintain updated records summarizing incoming, outgoing, intermediate, and stored quantities for both certified and non-certified streams. The mass balance calculation proves that certified output quantities do not exceed incoming certified inputs.

Mass balance verification requires precise tracking of processing yields, waste, and physical losses across all handling stages:

• Calculation formula: Principle AQ 28.01.04 defines certified outputs as certified inputs received minus conversion losses and quantity remaining in storage.
• Conversion loss rates: Principle AQ 28.01.04 and Section 4.6 m require processing yields and conversion loss rates to be calculated, verified against industrial benchmarks, and recorded for each handling step.
• Accounting parameters: Mass balance calculations must incorporate parameters such as mortalities, physical shrinkage, rejections, and product waste.
• Verification frequency: Principle AQ 14.02 and Section 4.6 c require a formal mass balance reconciliation at least annually for every registered product.

Comparison of segregation and mass balance requirements

| Compliance area | Certified production stream | Non-certified production stream | | Physical location | Dedicated production sites or Secretariat approved units | Separate production sites or non-certified supply sources | | Product identification | Identified with GGN or CoC Number on smallest units | Internal batch codes only; no GGN or CoC Number permitted | | Transaction docs | Must state GGN and GLOBALG.A.P. certified status | Standard commercial details; no certification claims | | Mass balance tracking | Inputs minus conversion losses equal maximum certified outputs | Reconciled separately to prevent certified volume inflation |

What to do now

• Update parallel ownership registration: Verify that all products owned in both certified and non-certified forms are declared in the GLOBALG.A.P. IT platform during registration.
• Establish physical segregation protocols: Implement clear visual identifiers, dedicated storage areas, and immediate intake labeling for all incoming certified batches.
• Calculate verified conversion rates: Document realistic processing yields and shrinkage rates for every postharvest handling step to support mass balance calculations.
• Conduct internal mass balance reconciliations: Perform an annual mass balance audit comparing certified inputs against outgoing sales records across all handling units.

Reference documents

• GLOBALG.A.P. general regulations – Rules for Parallel Ownership, v6.0_Apr25, Section 1, Section 2, Section 3, Section 4
• GLOBALG.A.P. Integrated Farm Assurance Smart/GFS – principles and criteria for aquaculture, v6.0_Mar23, Section AQ 13, Section AQ 14, Section AQ 28
• GLOBALG.A.P. general regulations – Rules for Quality Management System, v6.0_Sep22, Section 4.6