food, agriculture & fisheries news from the food team in ... · management upcoming events...

Edited by:

Marie Louise Flach de Neergaard

Minister Counsellor

(Food, Agriculture & Fisheries)

Anne Klinge

Commercial Intern

(Food, Agriculture & Fisheries)

This issue includes:

Events: Carlsberg groundbreaking ceremony in Yunnan province, Embassy hosts organic milk launch

News: Chinese AQSIQ Delegation’s Inspection Visit to Denmark, Update on Dairy Regulations, Status on Chinese pork production and consumption and imports, Danish agriculture and food exports to China, Chinese food inflation, The future of food security in China, Food with nutrition and Health Claims - further standardizing the supervision and management

Upcoming Events 2013: Sino-Danish Seminar on Efficient and Sustainable Pig Production, China-Denmark Conference on Food Safety and Traceability in State Guest House

News flash: Food safety, Food security, Agricultural reforms, Dairy Products and Infant formula, Grain and rice, Cooking Oil, Pet foods, Vegetables, Water territory

Food Team News – October - November 2013

1

Anne Klinge

Commercial Intern

[email protected]

+86 (10) 8532 9926

Mobile: +86 131 2137 7702

Lulu Li

Innovation Officer

[email protected]

+86 6085 2009

Mobile: +86 136 0186 6475

With the diverse academic and commercial backgrounds, offices in 4 geographical locations, a valuable network of public

institutions and private companies, and a mix of Chinese and Danish consultants the Food, Agriculture and Fisheries team

have extensive experience with assisting Danish companies entering the Chinese market.

Liu Qiang

Commercial Officer

[email protected]

+86 (10) 8532 9920

Mobile: +86 138 1126

2958

Lulu Li

Innovation Officer

[email protected]

+86 6085 2009

Mobile: +86 136 0186 6475

Shan He (Grace)

Commercial Officer

[email protected]

+86 (10) 8532 9915

Mobile: +86 138 1168 7696

Maria Rønde Holm

Commercial Intern

[email protected]

+86 (10) 8532 9926

Mobile: +86 134 146 475 905

Marie Louise Flach de Neergaard

Minister Counsellor, Team

Leader

[email protected]

+86 (10) 8532 9987

Mobile: +86 139 1023 5271

Daniela Zheng

Commercial Officer

[email protected]

+86 (23) 6372 5161

Mobile: +86 134 5236 0656

Huifang Jiang (Lydia)

Commercial Officer

[email protected]

+86 21 6209 0500 + 226

Mobile: + 86 139 1659 3810 Huifang Jiang (Lydia)

Commercial Officer

[email protected]

+86 21 6209 0500 + 226

Mobile: + 86 139 1659 3810

Li Guo

Commercial Officer

[email protected]

(+852) 8532 9995

Mobile: (+86) 13910143620

Jianru Cen (Jane)

Commercial Officer

[email protected]

+86 (20) 202 8797 320

Mobile: +86 139 2602 661

mailto:[email protected]


2

The Food Team in Trade Council China

Events:

Carlsberg groundbreaking ceremony in Yunnan province ................................................................................................ 3

Embassy hosts organic milk launch ...................................................................................................................................... 4

News:

Chinese AQSIQ Delegation’s Inspection Visit to Denmark ............................................................................................ 5

Update on Dairy Regulations ................................................................................................................................................. 6

Status on Chinese pork production and consumption and imports ................................................................................ 8

Danish agriculture and food exports to China .................................................................................................................... 9

Chinese food inflation ........................................................................................................................................................... 10

The future of food security in China ................................................................................................................................... 11

Food with nutrition and Health Claims - further standardizing the supervision and management ......................... 12

Upcoming events

Sino-Danish Seminar on Efficient and Sustainable Pig Production .............................................................................. 13

China-Denmark Conference on Food Safety and Traceability in State Guest House ................................................ 14

News Flash

Food safety ................................................................................................................................................... 15

Food security ................................................................................................................................................. 15

Agricultural reforms ....................................................................................................................................... 16

Dairy Products and Infant formula ................................................................................................................. 17

Grain and rice................................................................................................................................................ 18

Cooking Oil .................................................................................................................................................. 19

Pet foods....................................................................................................................................................... 19

Vegetables ..................................................................................................................................................... 20

Water territory ............................................................................................................................................... 20


3

The Danish ambassador to China, Mr. Friis Arne Petersen and Minister Counsellor, Ms. Marie Louise Flach de Neergaard,

attended the Danish company Carlsberg’s ground breaking ceremony for a new brewery in Dali the12th of October. The Carlsberg

group will set up a 10 million-hectolitre(hl) greenfield brewery in Dali Fengyi Innovation Industrial Park. The new brewery is 40.86

hectares and will be operational in 2015.

Present at the ceremony were Governor Mr. He Hua of Dali Bai Autonomous Prefecture of Yunnan province,

deputy governor Mr. Cheng Yunchuan of Dali Bai Autonomous Prefecture of Yunnan province, Stephen Maher,

CEO of Carlsberg China and guests from Provincial Government of Yunnan, Dali Prefecture and Municipal

Government, Mr. He Yong, Vice Secretary-General of China Alcoholic and drinks association, senior

management of Carlsberg Asia, Carlsberg China and Dali brewery Co, Ltd.

“This new brewery is one of the many examples of Danish investment in the growing consumer market of China.

Danish companies are today benefitting from the Danish government’s growth market strategy and the strategic

partnership between Denmark and China. These two political initiatives have created a positive framework for

Danish companies to operate within" says Ambassador Friis Arne Petersen. The investment framework for the

new brewery was signed during the visit of President Hu Jintao to Denmark in 2012. Under the agreement, the

Carlsberg Group is expected to achieve an annual capacity of 16 million hl by 2015, with total investment of five

billion renminbi.

Dali is the central city in the South-western Chinese province of Yunnan and is located in the heart of key

industrial parks in the province, offering great potential and abundant opportunities for the development of

industrial economies in Yunnan.


4

On October 28th 2013 the Royal Danish Embassy in China hosted the launch of “Gather in Denmark – organic life” where

Arla’s organic milk was introduced on the Chinese internet site Taobao.

The Royal Danish Embassy in China hosted the launch of “Gather in Denmark – Organic life” the 28th of

October. The Danish dairy company Arla’s organic milk was launched on the Chinese shopping website Taobao’s

online shopping portal Juhuasuan. The launch of the organic milk products marks a new important step in the

establishment of Denmark’s presence in China, as Chinese consumers are now able to buy Danish dairy products

online. The Danish Ambassador to China, Friis Arne Petersen, gave the welcome speech underlining the

importance of the cooperation between China and Denmark within the dairy industry: “The milk provided is

organic. It is produced with respect of the environment and the welfare of animals, it is the highest quality and it is

safe. With this organic milk we are providing a piece of Danish culture to the Chinese people”.

General Manager of Arla China, Toke Rasmussen, stated that the cooperation between the two companies is the

ideal way to introduce organic milk and infant formula to the Chinese online users, as this proves to be a big

market. Liu Bo, marketing director at Juhuasuan, commented that Chinese consumers desire products from

overseas and that Danish dairy products have a very good reputation in China. Therefore this cooperation

between Arla and Juhuasuan is a natural, but significant step to be taken.

The “Gather Denmark” is planned to be one of a series of events to promote good products from

Denmark on the Taobao’s online shopping portal.


5

Between 21 and 26 October 2013, a three-people official delegation was commissioned by the Chinese

General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) to perform an on-site

inspection visit to Denmark in order to evaluate the risk of exporting bovine genetic material (bovine semen)

from Denmark into China after AQSIQ enacted a ban on direct and indirect imports of bovine genetic material

from EU countries affected by the Schmallenberg virus. The inspection visit was coordinated by the Danish

Embassy in Beijing which also sent a commercial officer to accompany the Chinese AQSIQ delegation on the

entire tour as an escort interpreter.

The inspection visit started off with an opening

meeting between the Chinese AQSIQ delegation

and the Danish Veterinary and Food

Administration (DVFA) on 22 October where the

animal health status in Denmark and surveillance

and disease control system in Denmark was

introduced. Legislation and authorization of

collection centres in Denmark were also introduced

as well as an update on Schmallenberg virus status

in Denmark and EU.

The AQSIQ delegation paid a visit to Viking

Genetics bovine semen collection center in

Assentoft where the Chinese delegation were

briefed on the status of Schmallenberg virus at the center and the measures used to prevent and control the virus.

Subsequently, the Chinese AQSIQ delegation was guided to physically inspect the bovine semen collection

procedure and semen treatment in laboratories. Viking Genetics took the Chinese delegation to perform a check

on its separate barn for China production with necessary measures to prevent the bulls from biting midges.

The closing meeting between the Chinese

AQSIQ delegation and DVFA took place in

Copenhagen on 24 October where the

Chinese AQSIQ delegation made a

preliminary evaluation of the inspection visit.


6

Since the melamine scandal in 2008, the Chinese public has little confidence in locally produced infant formula. In

the first and second tier cities, the majority of the middle classed parents will usually choose imported brands over

the local brands.

CNCA (The Certification and Accreditation Administration of the People's Republic of China) under AQSIQ

(The General Administration of Quality Supervision, Inspection and Quarantine) is the governmental body which

is in charge of the registration work. Before April 2013, only meat and aquatic products are required to register

under CNCA and now CNCA requires all dairy products must be registered before 1st May 2014, otherwise, the

products are not allowed to be imported to China.

Although the official requirement on registration of dairy is only published this April, through various channels,

the Embassy and the industry understood already in 2012 that there would be such requirements. With the effort

from the Embassy, DVFA, the industry and Arla, Denmark is the pilot country with CNCA on the registration of

dairy products. DVFA and CNCA did a Dairy Registration and HACCP Workshop in November last year on the

occasion of Agriculture Ministerial visit. Since then, there has been a lot of communication between Denmark and

China on the dairy registration work. CNCA visited Denmark for a study visit of the dairy industry in March 2013.

Under the requirements from CNCA, Denmark also made a training program to CNCA inspectors in Beijing in

September 2013 where the DVFA supervision system, the controlling of the infant formula and HACCP system

were introduced. The training program in Beijing lasted four days and showed a very good outcome. It paved the

way for our next stage co-operation in dairy registration and it was a milestone for other products’ registration.

The Module Two training is scheduled to be conducted in Denmark in the last week of November where the

inspection of two infant formula plants will be done as well. Denmark will be the first country to have the

inspection of infant formula. The inspection of infant formula is mandatory in order for products to be exported

to China.

Although there is good progress on the dialogue with CNCA, there is a delay on what the industry and CNCA

planned and expected, due to the release by the State Council (chief administrative authority of China and chaired

by the Premier) of the “Further Strengthen the Works on Safety and Quality of Infant and Young Children

Formula” which instructed the exporter or its agent and importers of infant formula exporting to China to register

in China. Strict requirements are put forward including the prohibiting of the import of large package of infant

formula and sub-package in China. The importers should make sure the imported infant formula meets Chinese

food safety standards. It must provide matched production date or matched production batch number of

Certificate of Analysis on inspection. It should strictly implement the import and sales record system. The infant

formula producing company and its importer should have the food safety accountability system. News

The CFDA (China Food and Drug Administration) as the co-ordination department asked a hearing on “Plants

Production License on Infant Formula” in August 2013 and still has not released the final document yet. This

document will apply to the locally produced infant formula producers but it will also be made as a reference to the

CNCA registration requirements on overseas produced infant formula.


7

AQSIQ which is in charge of the supervision of import and export products released a Decree No.

152 “Administrative Measure on Inspection, Quarantine and Supervision of Imports and Exports of

Dairy Products” on January 24th, 2013, to regulate the exporters to provide “Certificate of Analysis”

upon arrival of the imported products. This Administrative Measure has come into force on 1st May 2013. Before

it came into force, AQSIQ released a Notice to detailed regulate the items on Certificate of Analysis.

After the State Council’s paper on infant formula, AQSIQ has released a Notice in September 2013 to regulate

that the overseas infant formula powder production plants which export to China should register, based on

“AQSIQ Decree No. 152, administrative measures on import and export dairy products inspection and

quarantine”, “AQSIQ Decree No. 145, Administrative Measures for Registration of Overseas Manufacturers of

Imported Food”, and “AQSIQ Notice No. 62 2013, Product Catalogue of Registration of Overseas

Manufacturers of Imported Food”. After the 1st of May 2014, the unregistered overseas infant formula powder

plants cannot be allowed to import. The imported infant formula powder, if its inspection date to the expiry date

is less than 3 months, then the products cannot be imported. Sub-packaging for imported bulk packaged products

in China is prohibited; imported products must be in its minimum retail packages for sales. From the 1st of April

2014, Chinese labels must be printed directly on minimum retail packaging prior to entry and shall not be added

later in China. If the product package has no Chinese label or the Chinese label does not meet Chinese law

regulation and national food safety standards, it will be treated as unqualified products, to be returned or

destroyed.

After the State Council’s paper on infant formula, MOFCOM (Ministry of Commerce) which is responsible for

domestic and international trade released a notice to emphasize the supervision on retailers and suppliers; to

strengthen its efforts on imported infant formula and have the trial of selling the infant formula at pharmacies.

Although it is not published yet, MIIT (Ministry of Industry and Information Technology) has just finished their

“Working Plan on Pushing Infant Formula Producers to Merger & Acquisition” and is now sending to the State

Council for approval. It said this working plan involved MIIT, NDRC (National Development and Reform

Council) and Ministry of Finance. It will need the State Council to final approve this working plan. The working

plan said by the end of 2018, China will have 3-5 infant formula company groups which sales revenue should be

over 5 billion RMB. The total number of infant formula should be approx. 50. The top 10 brands industry

concentration should be over 80%. MIIT will put their efforts on M&A of infant formula. The work will start

from this year, stage by stage. The first two years will be having 10 infant formula companies with sales revenue

over 2 billion RMB. The company will have its own trademarked brand and internationally competitiveness. The

industry concentration should be over 70% and the deadline of the whole work is the end of 2018. By the end of

2015, producers should have finished their rebuilding 100% in accordance with GMP for powdered infant

formula and be accredited. The non-accredited company cannot produce infant formula. China will give financial

support to the companies which pass GMP standard, including relaxing loans both conditions and terms to M&A.

China is planning to invest more than 30 billion RMB on the dairy industry which includes the support and loans

to the big companies’ M&A; loans and subsidies to dairy powders’ producing lines; R&D support to the big dairy

companies and compensation to the companies which eliminate on their own. Currently there are 128 infant

formula producers and the top 10 industry concentration is 45%.


8

Slaughtering pigs in stock are at a stable level which means the pork supply to the market will be stable in the coming weeks. As

the winter is coming, the pork consumption will increase accordingly so that the price of pork may rise.

According to the statistics of Customs, imported pork reached 430,000 tons for the past three quarters in 2013

which is an increase af 7.83% compared to the same period last year. In general, it shows that the pork

consumption and demand is strong and will support the pork price in a period.

Participation of 8th EU-CHINA Modern Agriculture Seminar

The 8th EU-CHINA Business & Technology Cooperation Fair which is hosted by the Ministry of Commerce of

China, Ministry of Science and Technology of China, China Council for the Promotion of International Trade and

Sichuan Provincial People’s Government was held from Oct.21st – 23rd in Chengdu. The Danish Embassy in

Beijing was invited to participate in the fair and also brought Mr. Nicolaj Christoffersen from Danish Agriculture

and Food Council to deliver a speech on the Danish experience for controlling the use of antibiotics effectively in

the pig production in EU-CHINA Modern Agriculture workshop which is a major event at the fair. The seminar

serves as a significant platform for foreign exchange, technology & business cooperation, and investment

promotion between western China and EU member states. The participation of the event improved the Danish

pig production promotion and the Danish experience on pig production received great attention from both

governmental and industry sides. A wide range of cooperation and exchanges in pig production will be achieved

between Denmark and China.

Smithfield case impact on Chinese pork market

As the acquisition of Smithfield by Chinese Shuanghui has been approved by governments and shareholders

respectively, they completed the case. Most stakeholders are concerned about the impacts on the Chinese pork

market from this huge acquisition. Some insiders consider that the case will exert great influence on the Chinese

pork market since more and more US pork will be exported to the Chinese market which may strike the domestic

pig industry. The CEO of Smithfield acknowledged that with great attention and expectation of rapid growing

Chinese pork market was the main reason for the acquisition from US perspective. In fact, the rapid growth of

Smithfield in recent years is mainly depending on the increase of export especially to China. Even after the

acquisition, Smithfield will not import pork products from China. Shuanghui president Mr. Wanlong expressed

that Shuanghui will benefit from the acquisition in terms of raising technology, improving food safety as well as

business operation efficiency. Some Chinese insiders consider it was a story of using market for technology

exchange. In general, the analysts expressed the acquisition will not influence the Chinese domestic pork market in

a big sense for several reasons. Firstly, imported pork accounts for tiny share of Chinese pork market which is less

than 3% according to Custom statistics in the recent two years. Secondly, slaughtering pigs in stock in China are at

a stable level which means the pork supply to the market will be stable, besides, the government will regulate the

industry to keep the stability when necessary. Thirdly, most of the imported pork are pig by-products and frozen

pork, while fresh pork is the traditional consumption of Chinese consumers so that the end consumption quality

is limited.

However, it will intensify the imported pork market in China anyway. Shuanghui which is the most influential

pork company will facilitate the imported pork from the US and promote the products by their brand and sales

channels as well as political networks around China. From this point of view, it is a big challenge for Danish pork

industry.


9

Danish exports of food and agriculture to China and Hong Kong reached more than 9.8 billion DKK in H1

2013, which is a growth of 38,7 % compared to the same period last year. The total exports experienced a growth

of 15 % compared to H1 2012, and the agricultural and food exports accounted for 58 % of the total exports

from Denmark to China and Hong Kong.

Source: Danish Statistics

The biggest export within food and agriculture is fur and skin, which takes up 79 % of the total food and

agriculture export. Meat products also continue to take up a high percentage of the food and agriculture exports

to China and Hong Kong with 10 %. Grains and feed is representing 3 % which is a slight increase from the same

period last year. The export of live animals has also increased compared to H1 2012 although it is still a very small

part of the total food and agriculture exports.

Export numbers H1 2013

Export numbers H1 2012

Live animals 20034 Live animals 0

Meat products 1002390 Meat products 911135

Dairy and eggs 84486 Dairy and eggs 99102

Aquatic products 320618 Aquatic products 193027

Grains and feed 262391 Grains and feed 84314

Fur and skin 7716520 Fur and skin 5563803

Misc. 308134 Misc. 150560

Agricultural machinery 36792 Agricultural machinery 27718

Total 9751365 Total 7029659

Live animals 0%

Meat products

10%

Dairy and eggs 1%

Aquatic products 3%

Grains and feed 3%

Fur and skin 79%

Misc. 3%

Agricultural machinery

1%

Food and agriculture exports H1 2013


10

Throughout June, July and August the overall consumer price index has been increasing, and at a higher rate than in the previous

quarter. The food index has been through a period of high growth as well as drops but has shown a stable level of growth between 7%

and 8 %, and as of September 2013 it is at an all-year high. The consumer index has also been through some ups and downs,

although less dramatic than the food index, but has throughout the past months shown sign of stabilization and growth as well.

Chinese households allocate 30 % of their expenditures to food, and thus approximately a third of the index is food.

The CPI for September 2013 has ended at a higher level than at the same time last year, which creates an

advantage for the supplier side of the economy. The CPI rose 3.1 % year on year in September 2013, up from 2.6

% in August. The food prices went up 6.1 %, compared to only 2.5 % in September 2012.

Source: China National Bureau of Statistics

The three month average of beef and mutton increased year on year with respectively 24.9 % and 13.6 %. On

average in the period March-May, pork faced a deflation but has now on average in the period June-September

increased by 4 %. The prices of vegetables and fruit are up by 12 % and 9.1 %, in the three month average. Grain

has dropped a bit in September but on the

three month average it is continuingly

increasing at a stable 4.6 % increase.

Milk and dairy products has been

continuously increasing throughout the year,

and continues to do so in September.

The pork prices have been declining from the

beginning of this year until May, but have

been rising since then. Beef and mutton prices

continue to rise, as they have all year,

although slightly less in September then the

previous months.

0.00

2.00

4.00

6.00

8.00

10.00

Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

CPI & food price index development, September 2012 - September 2013

Consumer prices (Y/Y) % Food prices (Y/Y) %

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

3 months average food inflation July to September by category


11

Food security is a topic of growing concern and importance in China and has been declared a matter of

national security. As diets change and as the population will grow to a peak of around 1.5 billion people over

the next 20 years, the demand for grain will continue to rise. China is experiencing substantial and multifaceted

supply side challenges, and will have to become more open towards EU companies in China, which is likely to

affect world markets. The supply side problems that China is facing are many, including water shortage and poor

irrigation systems, high level of pollution in both water as well as soil, poor storage of grain and vegetables leading

to big losses, former agricultural land lost to urbanisation and rising production costs. In addition to this, the

urbanisation in China has led to a large income difference in what the young people can earn in the cities

compared to what they can earn as farm employees. Another problem is that many farms throughout China are

very small, making it difficult to invest in mechanisation, irrigation or training.

Projections from FAO – OECD agricultural outlook, highlighted are the products China will need to import

2000 2005 2010 2013 2015 2022

Production mio. Kg.

Wheat 99,636 97,445 115,180 120,665 122,150 127,106

Grain 117,578 150,361 185,430 219,191 224,188 256,811

Beef and veal 5,337 5,682 6,531 6,493 6,763 7,546

Pigmeat 40,470 45,686 50,830 52,270 54,498 60,436

Poultry 12,873 13,391 16,313 18,146 18,843 21,475

Milk 11,985 31,698 40,797 46,886 49,390 57,968

Fresh dairy 7,180 23,068 31,291 36,015 38,123 44,930

Milk powder 522 978 1,085 1,256 1,299 1,509 Fish 36,171 42,710 52,153 58,660 60,950 68,640

Consumption mio. Kg

Wheat 108,000 101,850 112,446 121,698 124,085 129,391

Grain 130,757 151,056 189,502 223,814 232,846 270,120

Beef and veal 5,299 5,579 6,526 6,511 6,792 7,644

Pigmeat 40,340 45,084 50,663 52,579 54,788 60,782

Poultry 13,103 13,271 16,310 18,060 18,775 21,499

Milk Not available

Fresh dairy 7,180 23,068 31,291 36,015 38,123 44,930

Milk powder 585 1,067 1,496 1,829 1,917 2,222 Fish 34,840 39,409 48,256 53,886 56,418 63,125

- Source – FAO – OECD Agricultural Outlook 2013 - 2022

In a country with 1.4 billion people and the many growing supply side problems, it seems more likely that China’s

current 95% self-sufficiency in grain is more likely to decrease than to increase in the future, and so it will be

necessary for China to open up to international markets. The result of the increased demand in China will mean

higher consumer prices.


12

Since the carry-out of a nationwide campaign to fight illegal health food actions, illegal health food production,

unlawful business operation of health food, illegal additives and illegal marketing have been cracked down severely

and the illegal activities have been effectively curbed. In order to further rectify and regulate the production of

food with health claims and purify the market, the following measures have been announced as follows:

Firstly, food without a health food approval number must not claim to have health functions on their labels and

instructions. In order for food to claim health functions on the labels and instructions, the products must have a

food production license (QS logo), the relevant parties will be punished for false food claim and/or exaggerated

marketing; if other departments are involved, the products shall be transferred to the relevant departments for

investigation; if the products have no health food approval number, nor a food production license (QS logo), the

relevant parties will be severely punished for unlicensed food production and business activities.

Secondly, products formulated in tablets, capsules, oral liquid, granules or pills, to be consumed in accordance

with prescribed quantity and with daily intake limit, shall not be granted a food production license (QS logo).

These products claiming health functions are subject to health food approval before production and sales. Starting

from the 1st of January, 2014, these products without a health food approval number will be prohibited from

production, sale and import. Products produced or imported before 1 January, 2014 are allowed for sale till the

end of their shelf life.

Thirdly, if raw material imported for food is found to be limited for use in food with health claims only and

cannot be used for general food, entry-exit inspection and quarantine departments should examine whether the

raw material has been expressly stated in the food approval documents. If materials limited for use in health food

are found in general food, the food and drug supervision and administration department should severely punish

relevant parties according to the law.

Fourthly, approved health food should be produced and labelled strictly according to their approvals. It is not

allowed to produce, sell or import health food which is contracted to a third-party for processing.

Fifthly, the local food and drug supervision and management departments should crack down on illegal internet

sales of health food; for illegal internet sales promotion of health food, it shall be transferred to the relevant

departments for investigation.

Sixthly, consumers should enhance self-protection awareness and avoid purchasing and using health food which

does not comply with the laws and regulations. If illegal health food is found, please report to local food and drug

supervision and administration departments.

If you have any comments or questions please address them to Commercial officer Li Guo – [email protected]


13

Chongqing Committee of Agriculture, the Royal Danish Consulate in Chongqing and Rongchang County

Government will host the Sino-Danish seminar on efficient and sustainable pig production on November 16th,

2013 in Rongchang, Chongqing. The participants from Denmark will include Danbred Trading Limited, ACO

Funki A/S, Egebijerg Asia/Qingdao Huamu Machinery Co., Ltd., DanAvl, The Danish Pig Research Centre,

Skiold(Qingdao)Co., Ltd and the Danish Consulate General in Chongqing

Background information:

Chongqing is the fastest growing city in China, which creates increasing wealth, and thereby a demand for high

quality products. Chongqing also has one of the biggest concentrations of pig production in China.

Administratively, it is one of China's four direct-controlled municipalities (the other three are Beijing, Shanghai

and Tianjin), and the only such municipality in inland China. Chongqing is also a very important city with regards

to agriculture. In 2011, the number of slaughtered pig heads in Chongqing was 20 million and in entire China it

was 666 million.

Since the pig breeding industry is the main part of the city’s animal husbandry and pork is the most traditional

meat and major meat source for the people of Chongqing there seems to be good conditions for Danish

companies in this industry to establish sales and/or production in Chongqing in order to improve the food

structure from the subsistence to nutrition and health and actively promote the sustainable development of pig

production to meet people’s demand for high quality pork.

Chongqing Rongchang Pig Industry: Rongchang is the Animal Husbandry Science and Technology City of China.

Rongchang Pig, is one of the world's eight breeds and one of China's three pig species. Rongchang is becoming

one of the country's largest cultivation and export base of piglets and the demonstration base for protection and

utilization of local Chinese pig breeds, owing to the perfect breeding system, solid animal prevention and control

system and the moderate scale of breeding base.

• Annual sow herds 135,000

• Annual slaughtered pigs 908,600

• Annual export piglets 2 million

The accompanying events with the seminar is The Sixth China Animal Husbandry Science and Technology

Forum (and the Eighth China Animal Husbandry Science and Technology Exposition for New Projects, New

Technologies and New Products)

The China Animal Husbandry Science and Technology Forum (hereinafter referred to Forum) is approved by the

Ministry of Agriculture and jointly hosted by the Chongqing Municipal People's Government, China Agricultural

Society, and Chinese Association of Animal Science and Veterinary Medicine (CAAV) regularly in Rongchang,

Chongqing, which is an animal husbandry science and technology exchange event at the highest national standard.

Since September 2004, the forum has been successfully held for 5 sessions. There will be a large number of

governmental officers, research institutes, veterinary experts, scholars and business people attending this event.

The Forum has become China's most widely influential platform for modern animal husbandry science and

technology exchanges, achievements displays and economic cooperation and has gradually become

internationalized.


14

11th November, 2013

During 10-13 November 2013, Karen Hækkerup, the Danish Minister for Food, Agriculture and Fishery and the

delegation will visit China. The Royal Danish Embassy is taking this occasion to arrange a conference on food

safety, especially in perspective of the traceability system on the 11th of November 2013. The aims of the events

are: 1) to introduce the Danish policies and systems on food traceability system to relevant Chinese central and

local authorities; 2) to share knowledge on legislation, implementation, supervision and inspection of food

traceability issues in both China and Denmark; and 3) to promote the Danish food products, food

safety/traceability technologies and food industries in China.

Officials and experts from the China Food & Drug Administration (CFDA), the National Health and Family

Planning Commission (NHFPC), the Ministry of Agriculture of China (MoA), the General Administration of

Quality Supervision, Inspection and Quarantine (AQSIQ), China National Centre for Food Safety Risk

Assessment (CFSA) and China Certification and Accreditation Administration (CNCA) are all invited to

participate into the conference. All above mentioned Chinese authorities are invited to give a brief introduction of

the food safety status in China in perspectives of food safety standards, food safety supervision, inspection and

control, food safety of agro-product, registration of import/export food establishment and etc.

Danish Veterinary and Food Administration (DVFA) will represent the Danish authority to introduce food safety

standards, policies, regulations and traceability system in food production, food processing and food consumption

in Denmark/EU. Experts from the Technical University of Denmark (DTU) will present the application of

traceability system in

foodborne outbreak

control and management

in Denmark/EU. In

addition, Danish food

industry representatives,

Chr. Hansen, Arla Foods

Amba and Danish Crown

A/S will also give

presentations of food

safety within their business

areas.


15

Xinhua: Opinions solicited on draft food safety law

2013-10-29

BEIJING, Oct. 29 (Xinhua) -- The Legislative Affairs Office of the State Council on Tuesday began to solicit public opinions on a draft amendment to the

food safety law that imposes harsher punishment on violators. The draft contains changes and additional stipulations that highlight the liability of food

companies and local governments, offer innovative supervision methods and strengthen the role of the public in ensuring food safety, among other aspects.

Concerning infant formula, the draft stipulates that manufacturers should report the raw materials, ingredients and labels of their products to food safety

administrations, and they are not allowed to contract the production to other people or repackage original products. According to the draft, fines for severe

food safety violations such as use of illegal additives are 15 to 30 times the amount involved in the misconduct, up from the current five to 10 times. The

draft also stipulates that those handed jail terms for food-related violations are no longer allowed to work in the field, while the principals of food risk

evaluation institutes should be sacked if their subordinates present false evaluation reports. The current food safety law has been in place for more than four

years after taking effect on June 1, 2009. The draft is open to public feedback until Nov. 29.

Xinhua: New Zealand, China strengthen food safety cooperation

2013-11-01

WELLINGTON, Nov. 1 (Xinhua) -- The food safety regulatory agencies of China and New Zealand on Friday signed an agreement to strengthen

cooperation in food safety and quality. The Food Safety Cooperation Arrangement between New Zealand's Ministry for Primary Industries (MPI) and the

China Food and Drug Administration (CFDA) was signed in Wellington by CFDA Vice Minister Liu Peizhi and MPI deputy director general Carol Barnao.

The agreement will see the establishment of a Joint Food Safety Commission, which would allow MPI and the CFDA to meet annually to help build a better

understanding of how each other's food safety systems worked.

New Zealand Food Safety Minister Nikki Kaye said the agreement would encourage cooperation and the sharing of knowledge in the fields of food safety,

risk management, food standards and regulations. "The agreement shows commitment and a willingness between New Zealand and China to work together

on food safety programs," Kaye said in a statement. "It will allow MPI and the CFDA to work together to enhance food safety, continually improve our

regulatory regimes and enhance the bilateral relationship." The agreement would further build on the strong relationship between the two countries,

particularly in the agricultural and food sectors. The agreement comes in a year which has seen New Zealand food exports to China hammered by MPI

export certification bungles and dairy contamination scares, including the false alarm over Fonterra's botulism.

Xinhua: Food security concerns despite bumper harvest

2013-10-15

BEIJING, Oct. 15 (Xinhua) -- China recorded a bumper harvest this year. Yet agricultural problems remain and are clouding the world's most populous

country, prompting the government to take measures to beef up food security. China's grain output this summer, mostly wheat, hit a record high of 132

million tonnes, the National Bureau of Statistics (NBS) said. The production of maize, harvested in autumn, is expected to hit a record high of 215 million

tonnes, according to the State Administration of Grain (SAG).

The country's grain output rose 3.2 percent year on year to hit 589.57 million tonnes in 2012, marking the ninth consecutive year of growth, according to

NBS data.H Despite the record harvests, China's agriculture faces chronic problems. The amount of arable land is shrinking amid the country's urbanization

drive. There is water and land pollution due to excessive use of pesticides and fertilizers. Also, there is a large amount of waste in the way grain is stored,

experts argue. This year's World Food Day, which falls on Wednesday, will be themed "sustainable food systems for food security and nutrition". Echoing

the UN Food and Agriculture Organization focus, the Chinese government has vowed to ensure national food security and effective supply of farm produce.

At a central economic work conference in December, issues involving agriculture, farmers and rural areas were emphasized as a top priority for the

Communist Party of China. Issues should never be neglected in spite of bumper grain harvests for several consecutive years, according to a statement issued

after the conference. Agricultural experts point out that to fulfill sustainable food security systems, not only sufficient grain production is needed but also

sound protection of resources like land and water.

For Wang Cigen and many of his peers in the village of Hexin in Wuhu City, east China's Anhui Province, environmental protection is at the forefront of

their work. Rather than discard pesticide packages casually as he used to do, Wang now puts them in a green dustbin near his farmland. The village

committee has provided 200 such bins for farmers to use when disposing of pesticide garbage. The rubbish is then sent to Wuhu for processing and


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incineration. Over the past year, the village has collected more than 300,000 pesticide bottles and bags thanks to the pilot program initiated by Anhui

provincial authorities.

Excessive use of fertilizer is another major concern. Starting from 2005, Chinese agricultural authorities began providing free soil testing for 190 million

farmer households each year. It gave them fertilizer recommendations based on the results. The move has improved fertilizer efficiency, lowered

consumption and boosted grain output, agricultural experts said. Meanwhile, it has improved the quality of farm produce and cut down costs and labor.

So far, 1.4 billion mu (93.3 million hectares) of farmland has been tested in this way, and it is estimated that 8.5 million tonnes of fertilizer have been saved

thanks to the testing program. With central government support, China is now planning to expand the program on a larger scale. A bumper harvest can also

mean difficulties for farmers in the way they store their grain due to a lack of sufficient barns, mice and insects damaging grain, as well as mildew in rural

areas. According to a 2011 survey by the SAG, Chinese farmers lost 8 percent of their harvests due to poor storage. This equates to about 20 million tonnes

a year or equivalent to the harvest from 61.6 million mu of land.

To solve this problem, China is exploring new ways, such as establishing "grain banks", to help farmers store their grain within modern and large-scale barns.

"We shall ensure food security only if we successfully manage our harvest in every step of production, processing, transport and storage," said Cheng Biding,

deputy director of the Regional Economic Association of China.

China Daily: China allocates funds to boost food security

2013-10-21

BEIJING - The Chinese central government has allocated 600 million yuan ($97.88 million) to encourage food output and help boost China's food security,

the Ministry of Finance announced on Monday. The funds have been allocated to five major agricultural provinces of Heilongjiang, Liaoning, Shandong,

Anhui and Jiangxi to subsidize food production and upgrade agricultural technology, said the ministry. The funds will be used to encourage banks to increase

lending to rural areas, to improve farming conditions and farmers' productivity, according to the ministry. China's grain output this summer, mostly wheat,

hit a record high of 132 million tonnes, the National Bureau of Statistics (NBS) said. The production of maize, harvested in autumn, is expected to hit a

record high of 215 million tonnes, according to the State Administration of Grain. The country's grain output rose 3.2 percent year on year to hit 589.57

million tonnes in 2012, marking the ninth consecutive year of growth, according to NBS data.

SCMP: China must switch to growing GM food before it's too late: scientist

2013-10-06 Agricultural expert warns of crisis if country does not start growing modified crops and continues to rely on foreign imports. A leading

agricultural scientist's unusually frank endorsement of growing genetically modified food has reignited a debate over whether the country should reconsider

its long-time distaste for the controversial food source. Professor Wu Kongming, a member of the influential Chinese Academy of Engineering, said the

country risked increasing grain shortages and a dangerous dependence on foreign food imports if it continued to shun GM food. "The conflict between food

demand and supply in our country does not allow us to put aside the development of GM technology any longer," Wu, who is also vice-president of the

Chinese Academy of Agricultural Sciences, told China National Radio.

"China's situation has determined that we cannot follow the countries with very rich land resources to use traditional methods to satisfy our demand," he

said. "Our way out is to use modern technology to support the development of our agriculture." China imports about 80 million tonnes of grains, such as

soya beans, rice and wheat, each year, some of it genetically modified. To produce that amount of food domestically, the country would need 53 million

more hectares of farmland, 44 per cent more than there was now, Wu said. The imports had not only reduced food security but also strained global food

supply, he said, adding that the country was running out of time to switch to GM food production. Genetic modification, which is banned for staple grains

such as rice and wheat on the mainland, could help crops better weather droughts, pests and diseases, as well as help farmers achieve higher yields, Wu said.

"As the imbalance gets worse, we may have to give up cotton and oil production to ensure a stable grain supply," he said. "To China, that is a dangerous

signal." Wu's remarks make him one of the few agricultural scientists to speak up for GM food on the mainland, where opposition to the products is deep-

rooted and widespread. Many mainlanders share the concerns of people elsewhere that using GM crops could cause unforeseen damage to the environment,

such as introducing engineered genes into the wild. Others fear eating such food could endanger health, although the World Health Organisation describes

the risk of allergic reactions or transfers of antibiotic resistance as low. Some hardline communists also argue that GM crops - often produced by large

Western multinational companies - could provide a back door for an attack on the country's food supply.

A GM-rice researcher with the Chinese Academy of Sciences' Institute of Genetics and Developmental Biology said most of the mainland's scientific

community agreed with Wu, but few dared to speak up. "If I openly defended the technology, my mobile phone would probably ring from dawn to dusk

tomorrow with hate calls. That has happened to a colleague of mine," said the researcher, who declined to be named. "In this country, public fear over GM

food is bigger than the fear of atomic bombs."

Online, Wu's remarks drew mostly negative comments. "The scientists can't prove GM food is safe unless they eat it every day," an internet user from Hefei ,

Anhui , wrote on Sohu.com's discussion board. Yu Jiangli , of Greenpeace China's food and agriculture team, said people feared the inherent uncertainty of

the technology. "GM food may solve the food shortage in the short term, but in the long term it could bring other issues," she said. "In China, there are

many alternatives to improving food productivity, such as improving field management and reducing consumer waste, which are safer and more sustainable."


17

Xinhua: Gov't inputs 805 mln yuan for agriculture

2013-11-01

BEIJING, Nov. 1 (Xinhua) -- The Ministry of Finance on Friday said the government has recently allocated 805 million yuan (131.11 million U.S. dollars) to

boost agricultural industrialization. The investment aims to support new agricultural management systems and industrialization of competitive products. Of

the total, 460 million will go to leading enterprises that can help drive agricultural growth and 345 million will go to a program to support each county on one

special local product. The fund will cover 28 provinces, autonomous regions and municipalities including Beijing, Hebei and the Inner Mongolia, as well as

three cities listed independently in the state plan, including Dalian, Ningbo and Qingdao.

The Financial Times: Dumex replaces management amid China bribery claims

2013-10-14

Dumex, the baby-food brand owned by France’s Danone, said it would appoint new management at the unit following allegations that it bribed doctors and

nurses at Chinese hospitals to push parents of newborn babies to buy its infant-milk formula. Expressing “deep regret”, the company said it accepted “full

accountability” for management lapses aired in a Chinese state television report last month. The CCTV report made Danone the latest foreign company to

be targeted in Beijing’s intensifying anti-bribery probes, which have focused on pharmaceutical companies, including the UK’s GlaxoSmithKline.

At the time of the allegations, Dumex said it was “extremely shocked”, and promised to launch an internal investigation. In an emailed statement, the

company concluded that the allegations were linked to a Dumex-sponsored programme for mother-and-care education in China, which “was not properly

managed in some cases”. It said it had suspended the programme in all regions and that the management “accepted full accountability for these lapses”. It

added it would take disciplinary action according to company policy and it would introduce mandatory training in marketing responsibility for all employees.

The company said it would appoint “new management personnel to deal with relevant issues”. It added it had no further comment.

The statement, which the company said it had released to CCTV on Saturday, came on the same day that Chinese officials in the northern city of Tianjin said

they had punished 13 medical workers for taking bribes from Danone’s Chinese unit. Local government investigators said the workers were among 116

people from 85 hospitals and health groups who took bribes from the company to give talks to parents of newborns, recommend Dumex formula and give

out product samples, news agencies reported a government statement as saying. International companies selling baby nutrition in the Chinese market have

seen sales increase sharply since a scandal broke in 2008 involving the use of melamine by local producers, damaging consumer confidence in domestic

manufacturers.

Worldwide sales at Danone’s baby-nutrition division have grown more than 50 per cent since 2007 and now account for more than 20 per cent of total

revenues. Of that, the Asia-Pacific region is the most important, accounting for about 40 per cent of its business. Danone says China is the largest market

within the Asia-Pacific region, and helped to produce sales growth of 13.5 per cent in Danone’s baby-nutrition division between April and the end of June

this year. However, it emerged in August that Danone’s Dumex was one of six internationally owned manufacturers facing Rmb669m ($109m) in fines from

the Chinese government for engaging in allegedly anti-competitive pricing practices.

SCMP: Danone to name new management at China unit after bribery scandal

2013-10-15

French food maker Danone said it will appoint new management at its Dumex infant milk powder operation in China and has suspended a nutrition

programme for mothers in the wake of a bribery scandal at Chinese hospitals. Dumex China expressed “deep regret” for what it called shortcomings over a

programme that was intended to raise standards in paediatric care and included advice on nutrition. The company launched an investigation after the official

China Central Television (CCTV) reported in September that Dumex had bribed doctors and nurses across hospitals in northern China to recommend its

infant formula to mothers. Authorities in the northern city of Tianjin had punished 13 medical workers for taking bribes to recommend the infant formula,

the local government said on Monday. China is a magnet for foreign milk powder makers, with the country’s US$12.4 billion market expected to double by

2017.

But foreign firms are under intense scrutiny after a spate of media reports alleging corrupt sales practices in the industry. Authorities in August also fined a

group of mostly foreign milk powder producers including Danone a total of US$110 million for price fixing. Danone reports third-quarter sales on

Wednesday, giving the firm an opportunity to brief investors on its problems in China. “Disciplinary actions will be taken according to the relevant company

regulations including appointing new management personnel to deal with relevant issues,” Dumex China said in a statement. Dumex said its policies included

support for maternal breast feeding, as well as compliance with all local and national regulations in China.

However, it said some practices had contradicted the purpose of the nutrition programme. It did not elaborate. Additional mandatory training to ensure

compliance with the company’s marketing policies would be given to all employees, the statement said. Dumex added it would make no further comment.

The statement did not refer to separate accusations published in a Chinese newspaper last month that Danone’s advanced medical nutrition unit Nutricia had

bribed more than 100 doctors in Beijing to boost sales. Danone has said it was investigating that report. The CCTV report on Dumex led to Tianjin’s

government and police launching an investigation into the bribery accusations.


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The “serious violators” received penalties ranging from cancellation of medical licences to salary deductions, Tianjin’s government said in a statement on its

website. Several of them had to go through Communist Party disciplinary procedures. Local government investigators said the workers were among 116

people from 85 hospitals and health groups who took bribes from Danone to give talks to parents of newborns, recommend Dumex formula and give out

product samples.

World Health Organisation guidelines, implemented in China, say doctors must advise new mothers to breastfeed unless there are medical reasons to use

formula instead. Infant formula has been controversial in China since a scandal in 2008 when the industrial chemical melamine was added to baby milk and

killed at least six children and left thousands ill. The incident seriously damaged consumer confidence in local firms and led to international competitors

gaining market share. Corruption is widespread in China’s health care system, fuelled in part by low salaries for doctors and nurses.

Xinhua: China tightens regulation of imported baby formula

2013-10-16

BEIJING, Oct. 15 (Xinhua) -- China's Ministry of Commerce (MOC) on Tuesday told baby formula importers to be accurate when recording sales data and

for there to be no monopoly in the industry, which has been plagued by quality and price-manipulation scandals. The ministry vowed to provide more

convenient approval procedures for qualified importers, but told them to set reasonable prices and eradicate price manipulation and other moves that

amounted to unfair competition, according to a ministry statement. In August, Chinese authorities fined six baby formula companies operating in the

mainland, namely Biostime, Mead Johnson, Dumex, Abbott, Friesland and Fonterra, for a total of 670 million yuan (108 million U.S. dollars) following an

anti-trust investigation. The National Development and Reform Commission said formula producers set minimum resale prices for distributors and

punished those who sold their products at lower prices by suspending supplies or ending contracts. According to the MOC's statement, domestic distributors

are also asked to obey industry standards and ensure product quality.

SCMP: Japanese dairy giant Meiji quits baby milk market in China

2013-10-25

Japanese firm cites rising costs, but analysts say political and safety fears could be involved. Tough competition and rising production costs have forced

Japanese diary giant Meiji to pull its milk formula business from the China market. The company posted a statement on its website yesterday saying it would

suspend sales of three baby formula products and one milk formula for pregnant women on the mainland. "The competition in China's dairy industry is

getting increasingly intense," it said. "Despite the severe business environment, Meiji continues using Australia-imported milk powder, which has increased

our production costs year by year and resulted in a severe impact on our profit margin." But some industry experts believe the reasons for the withdrawal

may be more complicated, including fallout from the Fukushima nuclear disaster and tense China-Japan relations. "The business environment is getting more

difficult for foreign players as the Chinese government has intentionally backed home-grown dairy brands while tightening the management of foreign

producers," said Song Liang, a dairy industry analyst. In August, the National Development and Reform Commission slapped record fines of 668 million

yuan (HK$845 million) on six foreign milk formula producers for violating anti-monopoly laws.

Last month, China issued a set of new rules on imported milk powder, insisting importers limit the size of packaging, adding to their costs. Meiji, which

entered the mainland market in 2007, used to be a major rival for American and European brands like Mead Johnson. It was well received by many mothers

as "a brand more suitable for Asian babies". Yet the company suffered a severe setback in December 2011 when samples of its products were found to

contain traces of radioactive caesium as a result of radiation leaks from a meltdown at the Fukushima nuclear plant that was damaged by an earthquake and

the ensuing tsunami in March of that year. The twin disasters dented Japan's reputation for food safety, with consumers worldwide fearing radioactive

contamination.

Consumers' concerns about the products' safety have dragged down Meiji sales on the mainland by as much as 90 per cent, although the company has since

sourced milk in Australia. While giving up the milk formula market on the mainland, Meiji is much more optimistic about the liquid milk, yogurt and

confectionery sectors. Last year it invested 3 billion yen (HK$238 million) to build its first factory in China, in Jiangsu province - expected to be producing

soon.

Xinhua: Endangered indigenous rice being revived in N China

2013-10-17

SHIJIAZHUANG, Oct. 17 (Xinhua) -- A rare indigenous rice species, which was almost extinct in the 1970s due to low output, is being revived in north

China's Hebei Province. The rice variety, known as "kermes rice" for its red color similar to the dyestuff, has a history of over 300 years and was once

offered to the ancient imperial court as tribute during the Qing Dynasty (1644-1911). "It has not been easy but I have developed more than 80 mu (5.3

hectares) of the crop since seven years ago, when I got a handful of about 300 seeds of kermes rice from my friend Li Ming in Tangshan City," said Zheng

Hehai, head of Tangshan Daoxiang Rice Co., Ltd.

In the 1970s, farmers turned to other crops for their superior output and stopped planting kermes rice when it was banned by the local government. But Li

Ming's father secretly kept several spikes of the rice in his home. Later, Li happened upon the spikes and sowed the dozens of seeds. The harvest became the

seed source of current kermes rice. As one of the estimated 140,000 rice varieties in the world, kermes rice is indigenous to eastern Hebei. The plant is 30 cm


19

taller than general rice species and is vulnerable to stalk leaning. Its output is 180 kg per mu, compared with more than 700 kg for general rice, according to

Zheng. However, the rare rice variety's planting methods have been developed by the Rice Research Institute of Hebei Agriculture and Forestry Academy.

The method is still in its trial phase, but there are hopes that the work can help make kermes rice more economical to farm.

And there are good reasons for persevering, according to the strain's enthusiasts. "Kermes rice has low output and is difficult to cultivate. Why should we

expand the plantation?" asked Zheng. "First, it has special nutritional value. Second, it would be regrettable if we lost something that has existed for several

hundred years."

Tests show the amino acid content of kermes rice is 2.5 times that of general rice and the rice has hematinic and beauty maintenance functions, explained

Chen Hongcun, an agricultural official in Tangshan. "Unlike genetically modified rice, kermes rice is an original species left by our ancestors with no food

safety concerns," Chen added. "We will enhance our cooperation with agricultural authorities to study how to make the plant of the species short and

increase its output for market, said Zheng.

The Guardian: Like some fox hair with that? China digests latest food scandals

2013-10-11

It's a gourmet recipe for an indictment: take chicken anus, duck feathers and fox hair. Process it into counterfeit cooking oil. Distribute widely. Even in

China, a country frequently racked by food safety scandals, this has been a bad week. On Wednesday, a court in eastern China's Jiangsu province sentenced

16 men to prison for processing and selling 5,000 tons of recycled cooking oil made from a melange of discarded animal parts. But the stomach-churning

case was far from unique: that same day, 43 defendants were convicted in three other food safety cases in the province, most for selling meat products made

from animal waste. Three days prior, more than 30 passengers on an Air China jet ran for the toilets after eating expired beef pastries. And on Friday, an

inquiry found that almost all of the beef jerky in south-eastern Fujian province is actually chemically-treated pork. Chinese consumers have grown used to

reports of fake eggs, poisonous baby milk, exploding watermelons and glow-in-the-dark pork, a result of rampant profit-seeking and lax regulatory oversight

in the country's food industry. In May, a gang in Zhejiang province was prosecuted for passing off rat, mink and fox meat as mutton; that same month,

authorities caught a company in Hunan province making counterfeit jellyfish slices out of calcium chloride and sodium benzoate.

On Wednesday, the Lianyungang intermediate people's court in Jiangsu province convicted 16 men from a local food company, Kangrun, of illegally

processing and selling "poisonous, harmful" cooking oil to 117 businesses in 2011-12, netting 600m yuan (£6.1m) in revenue. Wang Chengkui, the firm's

legal representative, was jailed for life; his co-defendants face up to 15 years in prison. "The Kangrun company can make 'edible oil' out of chicken feather

oil, duck feather oil, pig hair oil, even fox hair oil," reported Xinhua, China's official newswire. The company also used "discarded inedible materials such as

skins and buttocks of chickens and ducks as well as pig offal," the newswire's English edition added.

Three days before that verdict was announced, more than 30 passengers on an Air China flight from the north-western region Xinjiang to Beijing fell ill after

eating an in-flight meal of expired beef-filled snacks. According to state media, a woman called Zhang discovered two dates printed on her meal's wrapper,

the most recent of which was four days in the past. Although Zhang alerted flight staff, they refused to make an announcement, as the other passengers were

already eating. Half an hour later, passengers began queuing at the toilets. Most were queasy; many had diarrhoea; some vomited. China Air refused to

acknowledge the issue until passenger accounts went viral online, then attributed the incident to a packaging mix-up.

On Friday, a reporter in south-east China's Fujian province revealed that most of the province's beef jerky is made from pork, processed into a beef-like

substance using beef extract and illegal chemicals. "Right now, almost all of the beef jerky on the market in Fujian is fake," Yao Yuancheng, general manager

of local Longhai Yuancheng Food Company, told the reporter, whose findings were reprinted by Xinhua. Pork-based beef jerky costs £4.80 a kilo to

produce, he said; real jerky costs three times as much. It takes a grand irony to get Chinese web-users riled but they were treated to an easy target last

weekend, when China's president, Xi Jinping, confronted New Zealand prime minister, John Key, about his country's food safety record.

The catalyst was Fonterra, a New Zealand firm that supplies 90% of China's milk-powder imports, recalling its products last month after a botulism scare.

"Xi stressed that food safety concerns people's health and urged New Zealand to take tough measures to ensure food quality," Xinhua reported. Before long,

hundreds of users on Sina Weibo, the country's top microblog, had posted Xi's comment aside emoticons of laughing smiley faces and downward-pointing

thumbs. "If Xi is demanding that New Zealand pay attention to its food safety, is there anything that [the government] won't say or do?" wrote one. Others

were more forthright. "First, take care of our own food safety problems," wrote user Yi Muyi. "Then talk."

The Guardian: FDA: outbreak in pet illness and deaths linked to jerky treats made in China

2013-10-23

The agency said the jerky caused illnesses in 3,600 dogs and 10 cats in six years, and that about 580 of those have died. The Food and Drug Administration is

appealing to American dog and cat owners for information as it struggles to solve a mysterious outbreak of illness and deaths among pets that ate jerky treats.

In a notice to consumers and veterinarians published Tuesday, the agency said it has linked illnesses from jerky pet treats to 3,600 dogs and 10 cats since

2007. About 580 of those pets have died.


20

The FDA's Center for Veterinary Medicine has run more than 1,200 tests, visited pet treat manufacturing plants in China and worked with researchers, state

labs and foreign governments, but hasn't determined the exact cause of the illness, the FDA statement said. "This is one of the most elusive and mysterious

outbreaks we've encountered," Bernadette Dunham, a veterinarian and head of the FDA vet medicine center, said in the statement. Pets can suffer from a

decreased appetite, decreased activity, vomiting and diarrhea among other symptoms within hours of eating treats sold as jerky tenders or strips made of

chicken, duck, sweet potatoes or dried fruit.

Severe cases have involved kidney failure, gastrointestinal bleeding, and a rare kidney disorder, the FDA said. Most of the jerky treats implicated have been

made in China, the FDA said. The FDA has issued previous warnings. A number of jerky pet treat products were removed from the market in January after

a New York state lab reported finding evidence of up to six drugs in certain jerky pet treats made in China, the FDA said. The agency said that while the

levels of the drugs were very low and it was unlikely that they caused the illnesses, there was a decrease in reports of jerky-suspected illnesses after the

products were removed from the market. FDA believes that the number of reports may have declined simply because fewer jerky treats were available.

Xinhua: China's vegetable prices to rise

2013-11-02

BEIJING, Nov. 2 (Xinhua) -- Vegetable prices in China are expected to rise in the coming months, putting pressure on the country's consumer inflation, the

National Development and Reform Commission (NDRC) said Saturday. A commission statement said as cold weather affects production and demand

increases during the new year and Spring Festival holidays, vegetable prices may rise during winter and spring.

Spring Festival, or China's lunar new year, is the country's most important holiday for family reunions. The next festival will fall on Jan. 31, 2014. Rising

vegetable prices will add pressure to China's consumer inflation, as food prices account for about one third of the country's consumer price index (CPI), a

main gauge of inflation. In the first nine months, vegetable prices went up by 5.2 percent from a year earlier, the statement said. The NDRC said supplies of

vegetables is guaranteed, citing a slight rise in vegetable plantation areas monitored by the Ministry of Agriculture.

Transportation of vegetables around the country will experience lower costs, thanks to government policies to raise the efficiency of logistics, the NDRC

said. In 2014, vegetable prices may continue to rise by a small margin partly due to rising costs of labor, the NDRC forecast. To ensure market stability, the

commission will intensify market monitoring and the release of information, lower transportation costs and raise investment in infrastructure related to the

distribution of agricultural products. China's September CPI rose from 2.6 percent in August to 3.1 percent, driven mainly by a rebound in food prices, data

from the National Bureau of Statistics showed. The bureau is scheduled to release October CPI figures on Nov. 9.

Xinhua: Chinese vice premier stresses farmland irrigation works

2013-10-24

BEIJING, Oct. 24 (Xinhua) -- Chinese Vice Premier Wang Yang on Thursday urged improved farmland water conservation to boost steady agricultural

growth. More efforts should be made on reform, infrastructure, food security, flood mitigation, drinking water and ecological safety, said Wang at a

teleconference on irrigation. Farmland water conservation is facing difficulties in organization, investment and management, since the countryside has

been through deep changes in economic and social structures, Wang said. Based on the reality of the countryside, innovation should be made in

organization and mobilization, capital investment, project management and operations, Wang said. Irrigation works should be key aspects of

agricultural infrastructure and more effort should be made to expand financial input, optimize resources allocation and improve fund use efficiency,

Wang said.

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