Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Tuesday, November 3, 2015

China's 2015 Food Law - Understanding Import Challenges

There is a nice piece in National Law Review on China's recently enacted 2015 Food Law and some of the challenges they face.  While the law was made to look like US law, there are many differences in components that are not easily regulated - "....it lacked the right enforcement devices.  Part of the food safety regime in Western countries relies on active consumer groups, industry self-enforcement, and media scrutiny.  China does not have these mechanisms."

While the 2015 law tries to encourage better 'local regulatory enforcement, food industry associations, and media oversight' there is little detail on how this can be done.  Add to this the fact the food industry is very fragmented with many smaller processors, it can be difficult to provide oversight.

Still, China is currently the third largest importer of food into the US.  With the soon to be released FDA's Foreign Supplier Verification Rule, additional attention will be required by companies and brokers importing food.

National Law Review
http://www.natlawreview.com/article/food-supply-chain-issues-china-or-china-s-new-food-safety-act-or-running-gauntlet
Food Supply Chain Issues in China (Or, China’s New Food Safety Act) (Or, Running the Gauntlet in China)
posted on: Monday, November 2, 2015

Food trade between the U.S. and China is on the rise. According to the most recent statistics, China is the third largest exporter of food and agricultural products to the U.S., behind only Canada and Mexico. And, the U.S. is China’s biggest source of foreign food and agricultural products. Under the current state of trade, the U.S. sends approximately five times the food products to China that China sends to the U.S. But in any event, with the coming into force of China’s newest Food Safety Law on October 1, 2015, food supply chain relationships between the U.S. and China are taking on additional significance.

 See more at: http://www.natlawreview.com/article/food-supply-chain-issues-china-or-china-s-new-food-safety-act-or-running-gauntlet#sthash.JcXfS3vT.dpuf

Monday, September 8, 2014

Taiwan 'Gutter Oil" is Latest Food Scandal In China

Mmmm...pasties made with gutter oil.

A new food safety scandal has emerged in Taiwan and China involving 'gutter oil' ..or recycled oil from questionable sources.  During a raid of an oil processor, it was discovered that recycled oil was sold to food companies in Hong Kong and China.  The problem is that the oil came from a number of questionable sources and therefore has the potential to contain harmful substances.

This oil was then reportedly used as an ingredient in food products including pineapple cakes.

NY Times
 http://sinosphere.blogs.nytimes.com/2014/09/08/taiwan-reels-from-gutter-oil-scandal/
Taiwan Reels From Gutter Oil Scandal
By AUSTIN RAMZY September 8, 2014 6:56 am
September 8, 2014 6:58 am

The authorities in Taiwan are scrambling to control a tainted-cooking-oil scandal that has affected hundreds of manufacturers and raised fears about health risks posed in many commonly consumed food items.

The scandal comes during the Mid-Autumn Festival and has dampened enthusiasm for giving and consuming mooncakes, a traditional seasonal snack.

Regulators are examining the extent to which the substandard oil has been exported to Hong Kong, Macau and mainland China. Hong Kong’s Center for Food Safety said Maxim’s Cakes, a prominent retailer in the Chinese city, had removed from its shelves pineapple cakes made from oil from a Taiwan manufacturer implicated in the scandal.

Monday, August 11, 2014

Increased Scrutiny of US Food Companies in China, OSI -Takes the High Road

Establishing operations in China has been a challenge for many US food companies.  This week, a Walmart store was investigated for using old oil in their store frying operation.  (Not sure how this story garnered international media attention?.)  In July, OSI, a supplier for McDonalds and KFC took a hit in the media as Chinese papers reported a scandal involving OSI's Chinese operation, Husi.  In this report, Husi was cited for mixing expired meat into their process.

The thing that seems odd with the OSI related story is that, as detailed in the NY Times piece (below), OSI has had a sterling reputation, both domestically and abroad.  So it seems weird that that they could let one of their operations fall off the rails?

No doubt, there is a lot of scrutiny on US food companies operating in China by the Chinese media and the local regulatory authorities.  Why?  One could speculate that with the increasing push of US companies into China along with mergers of Chinese and US companies for the stated purpose of improving quality (Smithfield acquisition), there may be some backlash against foreign companies pushing into the Chinese marketplace.   Add to that the negative media exposure that the Chinese food system has received by the US media and it is easy to see why so much attention on US companies (when they could also be reporting on Chinese owned companies).  So perhaps showing that US companies have their own issues is a way to make a stand.  Perhaps even more importantly, this negative media barrage provides a leg up to Chinese firms that wish to compete against the likes of  Walmart, McDonalds and KFCs in the Chinese marketplace. 

Now it is hard to say for certain to what extent the food safety allegations are true.  Certainly we have not heard any rational for the incidents from the US companies..  And while there could be some legitimate justifications for the actions used by OSI in China - perhaps the meat that was being mixed back had been frozen instead of refrigerated thus nullifying the date used on the packaging - the chairman of OSI provided no excuses but rather said they would make improvements.

Interesting though, the talking heads are still willing to take these Chinese reports at face value and spin them in order to spread fear on the safety of our own food supply.


Reuters
http://www.reuters.com/article/2014/08/09/china-walmart-idUSL4N0QF09U20140809
Chinese regulators investigating Wal-Mart store for food safety violations - Xinhua
Sat Aug 9, 2014 8:49am EDT 

* Anonymous employee's video alleges violations at deli

* Shows images of black fryer oil, worms crawling in rice

* Shenzhen authorities investigating - Xinhua

* Wal-Mart: Internal, gov't probes uncovered no evidence

SHANGHAI, Aug 9 (Reuters) - Chinese regulators are investigating a Wal-Mart store in the southern city of Shenzhen for food safety violations, the official Xinhua news service reported, based on videos it said were taken by a Wal-Mart employee at one branch.

Monday, July 21, 2014

US Companies Facing Difficulties in China After Supply Chain Issues

It is not easy for US food companies to establish operations in China, as YUM and McDonalds found out. Both companies encountered issues two years ago when a chicken supplier was found to be using antibiotics. Both were sent reeling again as a meat provider was exposed for carrying out some unsanitary practices including "workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat".

It is puzzling that the US companies catch such heat when it is the Chinese supply chains that cause them such issues.  Granted, companies need to secure their supply chains to ensure that upstream suppliers are following strict controls, however, one would thing that these suppliers are also providing other Chinese based companies their supplies as well.

Reuters
http://www.reuters.com/article/2014/07/21/us-yum-brands-food-safety-idUSKBN0FQ01P20140721
Yum, McDonald's apologize as new China food scandal brews
By Adam Jourdan

SHANGHAI Mon Jul 21, 2014 5:55am EDT

Reuters) - McDonald's Corp and Yum Brands Inc are facing a new food safety scare in China, denting the fast food giants' efforts to shore up reputations and businesses that were hurt by a 2012 safety scandal in one of their biggest markets.

McDonald's and KFC-parent Yum apologized to customers on Monday after Chinese regulators shut a local meat supplier following a TV report that showed workers picking up meat from a factory floor, as well as mixing meat beyond its expiration date with fresh meat. The firms said they'll stop using the supplier.