Cereals are fortified by adding either an iron compound such as ferric phosphate, or by adding reduced iron. Reduced iron is another name for food grade iron filings, which are simply small, edible pieces of iron. Any food, especially cereal, which has reduced iron listed as an ingredient, contains these iron filings.The iron filings you see are safe to eat. When the iron mixes with stomach acid, it changes to a form that your body can absorb easily. Our bodies usually absorb only 5-15% of the iron in the food that we eat, and puts it to use to produce hemoglobin, a chemical in the red blood cells that binds to oxygen and allows blood to transport oxygen throughout our bodies. A person who has an iron deficiency produces fewer, smaller and less effective red blood cells. If all the iron in your body were extracted, you would have enough iron to make two small nails.You are able to separate the iron from the rest of the oatmeal/grits ingredients with the help of the magnet. The iron metal is attracted to the magnet. The plastic bag keeps the iron from sticking to the magnet. When you remove the magnet from the plastic bag, the iron will drop down on the paper where you can easily collect and examine it.