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.