international food safety and the global food chain: china’s role richard gilmore president/ceo of...
TRANSCRIPT
International Food Safety and the Global Food
Chain:China’s role
Richard Gilmore President/CEO of The GIC GroupManaging Director of Global Food Safety Forum
Background
•China–Growing food product exporter– Ingredient supplier
internationally
Background
Incidents• US
– Salmonella• Egg, 2010• Peanut butter, 2008 - 2009
• EU– Dioxin
• Germany and others, 2010
Background
Incidents• China
– Melamine-tainted infant formula, 2008 and 2010
– Dairy products containing leather-hydrolyzed protein, 2011
– Cenbuterol-tainted pork, 2009 and 2011
Xinhua news
• Probe into pork problem in ChinaMarch 23 -- The State Council's call for a thorough probe
into the scandal of feeding pigs with banned substances (ractopamine and clenbuterol) will help re-establish the public's confidence in the government.
• China's top legislature launches new round of inspection on food safety law implementationMarch 24 -- The Standing Committee of China's National
People's Congress (NPC) launched a new round of national inspections to ensure the country's Food Safety Law is properly enforced.
• China targets dairy products, meat in food safety campaign for 2011March 25 -- China has rolled out its annual working plan to
beef up food safety in 2011, as more food safety scandals have entered media spotlight and aroused public concerns.
Factors increasing food-borne disease
• Increased consumption of high-value food commodities– Meat – Poultry– Fresh produce
• Doubling of the global demand for food and of the international trade in food
Factors reducing food-borne disease
• Ability to first detect and investigate a food safety issue and then to develop effective control measures
• Key role– Intergovernmental organizations– International bodies
Threat to the global food chain
• Pathogens and non-pathogens• Fraud• Weak regulatory• Defrauding the consumer
Problems
• Increasingly inter-connected global food supply chain vs. fractionated management of the food chain
• Direct and indirect public health threats• Rising costs of remedies
– Decreased sales– Recalls and destroyed product, and – Penalties from injured parties seeking compensation
through court system
• Dislocation effects on a multiplicity of trade and economic indicators
• Lack of consumer and commercial incentives to underwrite national/international food safety systems
China dairy case
• Rapid growth fueled by large investments from multinational dairy firms– Highly modern and concentrated
processing sector vs. raw materials from millions of small, poor and uneducated traditional farmers
– Government support and encouragement for growth vs. little emphasis on inspection and safety issues
China dairy case
• Melamine crisis prompted Chinese new food safety law
– Mandate regular inspections with no exemptions
– New allowable tolerances for melamine in dairy products
Legislations and enforcement
• Food Safety Law, China, 2009
• Food Safety Modernization Act, US, 2011– Science-based and preventive– Import-Related Provisions
• Accreditation Process for Third Party Auditors
• Foreign Supplier Verification Program• Voluntary Qualified Importer Program• Third Party Certification
Legislations and enforcement
• Lack of harmonization of standards/ certification
• Regional differences in enforcement/ compliance
• Overlap and lack of enforcement resources in place
• Insufficient collaboration platforms for public/ private sector
Non-government initiative
• Transaction oriented strategy• Building an International
Collaborative Network standards
Non-government initiative
• Transaction oriented strategy– Creating a collaborative industry and
industry/public sector platform – Problem solving at operational level, food
safety training, platform provider of dialogue – Designing risk minimization strategies for
Asian markets and global food chain
Non-government initiative
• Building an International Collaborative Network standards– Certification
• HACCP– SQF– BRC– IFS
– Third party audit• Industry accepted• Government recognized
Chinese consumers
• Chinese consumers have the highest willingness to-pay for
1. Government certification program2. Third-party certification3. Traceability system4. Product-specific information label
Survey of Beijing consumers
• Consumer awareness, willingness to pay, and price premiums for HACCP-certified milk products– <20% respondents was aware of HACCP– After receiving information on HACCP
• nearly all respondents were willing to pay a modest price premium for HACCP-certified products
• Price of products with HACCP labels in Beijing supermarkets about 5% higher
Non-government initiative
• Building an International Collaborative Network standards– Harmonization and International food
safety standards
Non-government initiative
• Conversation platform– Trade delegation
visits to US and China
– Workshop or on-site
Non-government initiative
• International expert resources and professional expertise
• Capacity building– GFSF Food Safety Workshop
• Meat, November 2010• Dairy, June 2011• Exporters, June 2011
Non-government initiative
• Rapid response team• Voucher System
Thank you!