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GFSF serves as an industry platform to help improve food safety in the Asian market. This blog offers the most up-to-date news on Asia's food safety events.

Friday, February 28, 2014

Richard Gilmore's quotes in the article of Infozone




What Richard Gilmore, the president of GIC Trade, Inc. said in Farm Foundation Forum on Feb. 19 was excerpted in Infozone article! GIC Group is actively participating in Food Safety Forums, including being a panel.

To read the article, click the LINK.



China's food safety lapses create oppourtunity for Malaysia

China's food safety issues and the subsequent turn by middle-class consumers towards quality imports have made it a hot market for Malaysia's halal foods, according to a top Malaysian government official.


Dato Seri Kamil Bidin, chief executive of the Halal Industry Development Corporation, told FoodNavigator-Asia that China is now the top export market for Malaysian halal foods. 

Established in 2006, the HDC works for the overall development of the halal industry in Malaysia.

"China's halal market is worth US$2bn and is growing exponentially," said Bidin, who was speaking at Gulfood, the world's largest annual food and beverage industry show.

Halal opportunity
China has a minority population of Muslims that tops out at 20 million, but according to Bidin, with all the food safety issues that China has had in the recent years, an opportunity has been created for halal foods.

"Halal is seen as an assurance of safety and quality in China. When all the food scandals started happening (and received media coverage), people there started placing more emphasis on halal foods," Bidin said.

According to Bidin, the majority of the halal foods being exported are in the confectionary and snacks segment.

"Now when people see the halal certification label from Malaysia, they know that it has gone through stringent quality and safety checks,"  he added.

Malaysia jumps in
The certification muddle in China is another factor that has helped Malaysian halal foods. In China, halal producers must have their products certified by local provincial governments and ethnic affairs commissions.

This creates a situation where there are halal products on the market with various types of halal logos and certification, designated by province and region on the packaging.

However, Malaysia is one of the pioneers in halal certification, having introduced a national standard about four decades ago, said Bidin, which has been accepted by CODEX and also replicated by many other nations, making it one of most recognized type of standards in the world. 

Thursday, February 27, 2014

China's growing appetite fueling Australian red meat exports

China's consumption of lamb and beef has grown explosively over the last 12 months, making it one of Australia's top red meat markets, an industry official said.


Jamie Ferguson, regional manager for the Middle East and North Africa at Meat and Livestock Australia, told FoodNavigator-Asia that China had gone from being the number 8 market for Australian red meat to number 3 in under a year.

 "The growth has been phenomenal," said Ferguson, who was speaking at Gulfood 2014, the annual food and beverage industry show for the Middle East.

Meat and Livestock Australia is the peak marketing and development body for Australia's cattle, sheep and goat producers.

"What has happened in China is that they have depleted their cattle (both beef and lamb) stocks heavily," said Ferguson. "So they have decided to top up from other countries."

Ferguson pointed out that only three countries are legally allowed to supply China, the other two being New Zealand and Uruguay. "So we have been in a great position to take advantage of this opportunity." he said.

Opportunity well tapped
Data from the government backs this up. According to the Department of Agriculture, Australian beef, veal, lamb and goat exports to China surged during 2013, to 256,993 tonnes, accounting for 17% of Australia's total exports, compared to 6%, at 79,153 tonnes in 2012.

Of these, Australian beef and veal exports to China during 2013 climbed significantly, to 154,833 tonnes, up 371% year-on-year. The beef cut in the greatest demand was brisket, at 29,960 tonnes, up 423%.

In terms of Australian sheepmeat exports during 2013, lamb shipments were up 34% year-on-year, to 39,535 tonnes, while mutton exports surged 254%, to 57,888 tonnes, accounting for 34% of Australia's total exports.

According to Ferguson, the market in China has seen an even mix between the retail and food service industry. 


Perception of safety helping
"We are seen as country that is clean and safe. There probably has been some uptake based on their food safety standards and that is why we are one of only three countries allowed to legally sell there," said Ferguson, when asked if China's food safety issues have inadvertently opened the door to Australian exports.

On the rest of Asia, Ferguson said that the country was seeing high growth in Indonesia, Australia's closest neighbor, Malaysia and Hong Kong.

Date from the government revealed that Australian red meat exports to the wider Southeast Asia region during 2013 surged 85% year-on-year, to 448,838 tonnes. 













Tuesday, February 25, 2014

One dead and seven hospitalized in listeria outbreak



One person has died and seven others have been hospitalized after an outbreak of Listeria linked to cheese.

Five of the illnesses (2 mother-newborn pairs and a newborn) were related to pregnancy and all patients are Hispanic.

Further investigation is needed to determine the source of the patients' illnesses, including whether they relate to food products that tested positive for Listeria, said the US Centers for Disease Control and Prevention (CDC).

Detection in Virginia
The Virginia Department of Agriculture and Consumer Services (VDACS) and the Virginia Division of Consolidated Laboratories (DCLS) detected Listeria monocytogenes in cheese produced by Roos Foods Inc. of Kenton, Delaware.

It was isolated from a sample Cuajada en Terron (Fresh Cheese Curd) manufactured by Roos Foods and collected by VDACS food safety inspectors at Mega Mart, a retail store in Manassas, Virginia.

Seven people have been sickened in Maryland and one death was reported in California.

Pulsed-field gel electrophoresis (PFGE) is being used alongside whole genome sequencing. The 5 isolates already sequenced are closely related, said the CDC.

Available information shows illness dates range from 1 August to 27 November 2013.

All patients in Maryland reported consuming soft or semi-soft Hispanic-style cheese and shopped at different locations of the same food store chain, said the CDC.

Brands produced by Roos Foods include: Santa Rosa de Lima, Amigo, Mexicana, Suyapa, La Chapina and La Purisima Crema Nica.

Presumed positive
As part of an ongoing investigation, testing of cheese products my the Maryland Department of Health and Mental Hygiene (DHMH) is presumptively positive for Listeria bacteria. 

While confirmatory testing is underway, DHMH advises consumers not to eat any cheese products made by Roos Foods, or foods that have been made with these cheeses.
The DC Department of Health (DOH) advised district residents not to purchase or consume Roos cheese products. 

No lot or date coding information has been identified; but as a measure of precaution district food safety officials pulled the products from shelves.

Any individuals who purchased the product should not consume and should discard any remaining portions, said the agency. 













Fake-food scandal revealed as tests show third of products mislabelled

Consumers are being sold drinks with banned flame-retardant additives, pork in beef, and fake cheese, laboratory tests show

Some ham tested contained 'meat emulsion' (meat ground with additives so fat can be put through it) or 'meat slurry' (removing scraps of meat from bones). Photo: Alamy

Consumers are being sold food including mozzarella that is less than half real cheese, ham on pizzas that is either poultry or "meat emulsion", and frozen prawns that are 50% water, according to tests by a public laboratory.
The checks on hundreds of food samples, which were taken in West Yorkshire, revealed that more than a third were not what they claimed to be, or were mislabelled in some way. Their results have been shared with the Guardian.
Testers also discovered beef mince adulterated with pork or poultry, and even a herbal slimming tea that was neither herb nor tea but glucose powder laced with a withdrawn prescription drug for obesity at 13 times the normal dose.
A third of fruit juices sampled were not what they claimed or had labelling errors. Two contained additives that are not permitted in the EU, including brominated vegetable oil, which is designed for use in flame retardants and linked to behavioural problems in rats at high doses.
Experts said they fear the alarming findings from 38% of 900 sample tests by West Yorkshire councils were representative of the picture nationally, with the public at increasing risk as budgets to detect fake or mislabelled foods plummet.
Counterfeit vodka sold by small shops remains a major problem, with several samples not meeting the percentage of alcohol laid down for the spirit. In one case, tests revealed that the "vodka" had been made not from alcohol derived from agricultural produce, as required, but from isopropanol, used in antifreeze and as an industrial solvent.
Samples were collected both as part of general surveillance of all foods and as part of a programme targeted at categories of foodstuffs where cutting corners is considered more likely.
West Yorkshire's public analyst, Dr Duncan Campbell, said of the findings: "We are routinely finding problems with more than a third of samples, which is disturbing at a time when the budget for food standards inspection and analysis is being cut."
He said he thought the problems uncovered in his area were representative of the picture in the country as a whole.
The scale of cheating and misrepresentation revealed by the tests was described by Maria Eagle, the shadow environment secretary, as unacceptable. "Consumers deserve to know what they are buying and eating and cracking down on the mislabelling of food must become a greater priority for the government," she said.
A Defra spokesperson said: "There are already robust procedures in places to identify and prevent food fraud and the FSA has increased funding to support local authorities to carry out this work to £2m.
"We will continue to work closely with the food industry, enforcement agencies and across government to improve intelligence on food fraud and clamp down on deliberate attempts to deceive consumers."
Testing food is the responsibility of local authorities and their trading standards departments, but as their budgets have been cut many councils have reduced checks or stopped collecting samples altogether.
The number of samples taken to test whether food being sold matched what was claimed fell nationally by nearly 7% between 2012 and 2013, and had fallen by over 18% in the year before that. About 10% of local authorities did no compositional sampling at all last year, according to the consumer watchdog Which?
West Yorkshire is unusual in retaining a leading public laboratory and maintaining its testing regime. Samples are anonymised for testing by public analysts to prevent bias, so we are unable to see who had made or sold individual products. Many of the samples were collected from fast-food restaurants, independent retailers and wholesalers; some were from larger stores and manufacturers.
Substitution of cheaper ingredients for expensive materials was a recurring problem with meat and dairy products – both sectors that have seen steep price rises on commodity markets. While West Yorkshire found no horsemeat in its tests after the scandal had broken, mince and diced meats regularly contained meat of the wrong species.
In some cases, this was likely to be the result of mincing machines in butcher's shops not being properly cleaned between batches; in others there was clear substitution of cheaper species. Samples of beef contained pork or poultry, or both, and beef was being passed off as more expensive lamb, especially in takeaways, ready meals, and by wholesalers.
Ham, which should be made from the legs of pigs, was regularly made from poultry meat instead: the preservatives and brining process add a pink colour that makes it hard to detect except by laboratory analysis.
Meat emulsion – a mixture in which meat is finely ground along with additives so that fat can be dispersed through it – had also been used in some kinds of ham, as had mechanically separated meat, a slurry produced by removing scraps of meat from bones, which acts as a cheap filler although its use is not permitted in ham.
Levels of salt that breached target limits set by the Food Standards Agency were a recurring problem in sausages and some ethnic restaurant meals. The substitution of cheaper vegetable fat for the dairy fat with which cheese must legally be made was common. Samples of mozzarella turned out in one case to be only 40% dairy fat, and in another only 75%.
Several samples of cheese on pizzas were not in fact cheese as claimed but cheese analogue, made with vegetable oil and additives. It is not illegal to use cheese analogue but it should be properly identified as such.
Using water to adulterate and increase profits was a problem with frozen seafood. A kilo pack of frozen king prawns examined contained large quantities of ice glaze, and on defrosting the prawns themselves were found to be 18% added water. Only half the weight of the pack was seafood as opposed to water.
In some cases the results raised concerns over immediate food safety. The herbal slimming tea that was mostly sugar contained a prescription obesity drug that has been withdrawn because of its side-effects.
Making false promises was a dominant theme among vitamin and mineral supplements. Of 43 samples tested, 88% made health claims that are not allowed under legislation because there is no science to support them or were mislabelled as to their content in some way.
Even when fraud or mislabelling is found, it is not aways followed up. Once it has detected a problem with a product, a council is required to refer it to the home authority in which it was originally made, which may or may not take enforcement action.
Richard Lloyd, executive director of Which?, called for more effective use of resources and tougher penalties.
"No one wants to see another incident like the horsemeat scandalhappen again and the rigorous enforcement of standards underpinned by effective levels of food testing is essential for restoring consumers' trust in this industry," he said.

Friday, February 21, 2014

McDonald's Taiwan says all products free of plastic-based additive

A McDonald's meal. (Photo Courtesy of McDonald's)


McDonald's Taiwan has declared that all breads, pancakes and cakes sold at its outlets in Taiwan are free of azodicarbonamide, a plastic-based additive, amid food safety concerns sparked by reports that the chemical was found in breads sold by a sandwich chain.

The McDonald's made the declaration in a statement released on its official website Sunday, and said all the products are produced in Taiwan.

The company has declared the previous day that it respects Taiwan's regulations governing food sanitation. It underlined its use of strict quality control procedures to ensure all food products are in accordance with the quality and safety standards in the country.

The McDonald's US headquarters has recently issued a statement on its official website, rebuking rumors saying its McRib contains harmful chemicals.

"The truth is a small amount of azodicarbonamide, a common flour-bleaching ingredient, is used in our McRib bun. This is a common food additive and is used in many items on your grocer's shelves, including many hot dog buns and other bread products that you probably already purchase."

The additive is regulated under the Food and Drug Administration (FDA) and "is considered safe." "It is not a yoga mat, plastic or rubber," the statement said.

"A variation of azodicarbonamide has commercial uses and is used in the production of some foamed plastics, like exercise mats. But this shouldn't be confused with the food-grade variation of this ingredient," the statement added.

Azodicarbonamide is a chemical used to make yoga mats, shoe soles and other rubber-like objects to add elasticity. It is, however, also approved by the US FDA as a dough conditioner.

The azodicarbonamide issue has caused quite a stir on the island following foreign wire reports that the breads sold by Subway, a global sandwich chain, contained Azodicarbonamide.

Subway Taiwan has declared that its sandwich breads sold at Subways restaurants in Taiwan do not contain the chemical that has been found in breads sold by the sandwich chain in North America.

Over 10,000 prosecuted over food safety



 Some 10,100 people have been prosecuted for production and sale of substandard and poisonous food between 2011 and 2013, China's Supreme People's Procuratorate (SPP) said here on Friday.

According to data from the SPP, prosecutors also approved the arrest of some 7,000 people linked to manufacture and marketing of food products.

Speaking at a press conference in Beijing, Nie Jianhua, SPP vice directorin charge of public prosecution, said illegal workshops, factories and markets were the major sources of problematic food.

Suspects were mainly self-employed business people, farmers or unemployed, he added.

Prosecutors also revealed at the press conference details of five criminal offences concerning food safety which, accroding to the SPP, were of "instructive" importance.

In one such case, a suspect named Liu Liguo sold 100 million yuan's worth of "gutter oil" made from kitchen waste between December 2007 and July 2011. Some 9 million yuan's worth of such unsafe oil entered the cooking oil market.

"Gutter oil" literally refers to recycled oil dredged from gutters behind restaurants as well as inedible animal oil. The oil, which contains carcinogenic substances, is dangerous if consumed.

Liu was given a life sentence in 2013.

In another case, Sai Yue and Han Chengwu, director and vice director of the Chongming county bureau of quality and technical supervision, were sentenced to six and two years and a half in prison for dereliction of duty and taking bribes after a food company in Chongming was found to have produced poisonous cooking oil.

Official dereliction and graft played a major role in food safety cases, said Guan Fujin, another vice director.

He said 531 officials had been investigated in 2013 over their involvement in cases concerning harmful medical and food products.

Thursday, February 20, 2014

Agricultural cooperatives can ensure food safety: experts


BEIJING, Feb. 19 (Xinhua) -- China should focus on agricultural cooperatives to ensure better food safety and quality, industry experts said at a meeting on Wednesday.

Partnerships between farmers and firms can ensure product safety and quality via agricultural cooperatives, said Yin Chengjie, head of the Chinese Association of Agricultural Economics.

China has more than 980,000 agricultural cooperatives involving more than 74 million farming households, or around 28.5 percent of the country's total.

Currently Chinese agricultural cooperatives lack financing, technology and management as well as services, and their quality and efficiency need to be improved, Yin said, suggesting to learn from the practices of Netherlands' cooperatives.

The Netherlands boasts high-quality dairy products despite its limited natural resources. Its dairy sector boom is attributed to its unique cooperative model between farmers and firms, according to Atze Schaap, Director Dairy Development China at Royal FrieslandCampina, a Dutch dairy company.

Under the cooperative model, farmers and dairy firms share risks and profits throughout the industrial chain. Farmers are obliged to ensure high-quality milk and firms have to buy it all at a fixed price according to the contract, and share dividends with the farmers if they make profits.

"This model gives farmers a higher share of the value added, improving their bargaining power and reducing market risks, meanwhile it guarantees quality, safety and sustainability," Schaap said.

China has an annual growth rate of about 6 percent for dairy product consumption while production expansion lagged behind to be around just 2 percent, said Bi Yu'an, a senior official with China Food and Drug Administration.

The demand-supply gap for safe and high-quality dairy products has widened because of the lack of incentives for dairy farmers and loose cooperation between firms and them, Bi added.

Chinese consumers prefer foreign dairy brands due to a lack of confidence in domestic products. This is a hangover from a trust crisis in 2008 when a dairy firm was found to have added cancer-causing melamine in baby formula.

Zheng Xinli, vice executive secretary with China Center for International Economic Exchanges, a leading Chinese think tank, believes one key problem compromising the country's food safety is the lack of a share-holder mechanism to drive farmers to ensure food quality.

"Firms and farmers should work together for mutual benefits, and cooperatives can pave the way for developing reassuring made-in-China products," Zheng added.

Wednesday, February 19, 2014

Richard Gilmore on Farm Foundation through C-Span (Feb. 19)




This link is the video recorded by C-Span today. 



China dumps grain policy to boost meat production


Chinese per capita meat consumption has doubled since 1992, but the average American still eats twice as much meat each year. That suggests there is still much more room to grow in China, where incomes are rising and appetites for ever richer diets are steadily growing.


For decades, China’s rulers deemed grain production a linchpin to its national security. The policy of self-sufficiency was a legacy of its planned economy from the days of Mao when China was increasingly isolated from the outside world.

But China’s communist founders couldn’t have predicted the nation’s dizzying rise in meat consumption, which has grown nearly ten-fold to 71 million metric tons since 1975.

That’s why China has been increasingly importing grains such as soybeans and corn from the U.S. and Brazil to boost its livestock population. Grain self-sufficiency was becoming like communist dogma in China: more a theory than a practice.

Then last week, Beijing called it quits by announcing it was scaling back its annual grain production targets to put a greater emphasis on quality rather than quantity.

The decision frees up precious little arable land for more high value crops such as fruit and vegetables. And it could help ease the pressure on food inflation, an issue linked to social stability and driven largely by the price of pork.

The shift in grain policy was the clearest signal that policymakers had decided meat production was paramount, a pivot that will ripple across the globe and probably intensify China’s quest for foreign sources of meat, grain and dairy.

“The decision last week signals a clear intent by the Chinese government to facilitate more and cheaper imports of corn, wheat and other grains for its meat industry,” said Shefali Sharma, director of agricultural commodities at the Washington-based Institute of Agriculture and Trade Policy (IATP). “China has become a critical actor in the global industrial meat complex, a move that carries significant weight for global grain and meat production.”

The nonprofit group, which advocates sustainable food policy, said China’s struggle with food safety may be exacerbated by its attempt to expand its meat industry. The effort could expose China to some of the pitfalls industrialized farming in the U.S. has faced, namely large-scale contamination, antibiotic resistance and environmental damage, it said.

The IATP examines the many challenges of feeding China in a research report released Tuesday titled “Global Meat Complex: The China Series.” The study looks at the country’s rising dairy demand, its massive pork industry and attempts to modernize its poultry production.

One reason to pay attention: China’s meat consumption is far from peaking. Though Chinese per capita meat consumption has doubled since 1992 to  52.5 kilograms, the average American still eats twice as much meat each year. That suggests there’s still much more room to grow in China, where incomes are rising and appetites for ever richer diets steadily growing.

“Understanding how Chinese companies are ‘going out’ to develop their supply chains, and how major U.S. and other international livestock and dairy companies are ‘going in’ to China, better prepares us to address the global nature of this industrial complex and its impacts both domestically and globally,” Sharma said.    







Tuesday, February 18, 2014

The Food Safety Modernization Act and the International Window: Half Open and Half Shut

For Immediate Release
 Contact: Yuting Guo
Co-Director, Global Food Safety Forum (GFSF) and Business Development (Asia Pacific)
The GIC Group
1434 Duke Street
Alexandria, VA 22314
yguo@gicgroup.com

February 19, 2014


Today, Rick Gilmore, Chairman of Global Food Safety Forum, addressed the international impact of the Food Safety Modernization Act of 2010, as a member of a panel hosted by the Farm Foundation on the implementation of  FSMA.
He underscored that until the rules are finalized, no later than the court ordered deadline of June 30, 2015, suppliers and importers will continue to be in limbo.  "The gate is wide open for fraud to go undetected, food origin untraced and unverified, and consumer confidence to plummet, " said Gilmore.  "Without an enforceable and predictable food safety system in place, there is no water's edge."

Despite the uncertainties and problems facing the global supply chain, Gilmore cited the example of China where enormous progress has been made in the legal architecture but where compliance still falls seriously short.  According to Gilmore, "So long as there's a lack of clarity on such issues as third party auditor certification, all parties face the uncertainty of mounting liability exposure. "FSMA can be a catalyst for harmonization of standards and uniform compliance," he concluded, "but so long as regulations remain unwritten and enforcement unfunded, the whole global supply chain system can be upended."  

More restaurants tied to food fraud

Eatery menus above labeling law; lies abound in profit pursuit

More than a typo: A notice Wednesday at a Chinese restaurant in Sapporo apologizes for deceiving clients about the food served. | KYODO


Following Hankyu Hanshin Hotels Co.’s recent admission that dozens of its restaurants misrepresented the food on their menus, “revelations” have emerged that several other establishments around the nation are doing the same thing.

The Ritz-Carlton hotel in Osaka and the Renaissance Sapporo Hotel in Hokkaido, for example, recently admitted using ingredients that are cheaper or more easily obtained than the premium items advertised on their menus.

On Thursday, even the prestigious Imperial Hotel Ltd. admitted that it once served frozen juice labeled as “fresh” at restaurants in its Tokyo and Osaka hotels.

Imperial said the orange and grapefruit juices had been served until May 2006 and May 2007, respectively, after procuring freshly squeezed juice from a Tokyo supplier in frozen form. The juices are now being served freshly squeezed.

High-end eateries, such as those in luxury hotels, often tout the quality and safety of their fare to provide an air of exclusivity while cutting costs in the kitchen.

The government “is stepping up” regulations on food labeling, including product origin explanations for items sold in shops, but interestingly enough, the government’s regulations do not apply to restaurant menus.

While the Consumers Affairs Agency studies whether Japan’s latest food fraud cases fall under the scope of a more general law — the competition policy law to prevent all types of businesses from mislabeling products — the credibility of restaurant menus will be left in the hands of the businesses.

“We called big ones Japanese tiger prawns and small ones ‘shiba’ shrimp. It was an established display practice at the restaurant,” Renaissance Sapporo General Manager Hiroshi Harata admitted at a news conference Tuesday to apologize for the misrepresentations that took place in its restaurants.

The Hokkaido hotel was using cheap shrimp at its Chinese restaurant that differed from the shrimp listed on the menu. His explanation echoed the one issued by Hankyu Hanshin Hotels.

False advertising has also surfaced at three restaurants owned by a Shikoku Railway Co. subsidiary in Tokushima and Ehime prefectures, and hotels in Hamamatsu, Shizuoka Prefecture, and in Otsu, Shiga Prefecture.

The labeling of foods that can easily be confused with upscale products are regulated by the Agricultural Standards Law.

Fish merchants, for example, used to be able to label Patagonian toothfish as “ginmutsu,” a name reminiscent of the pricey “mutsu” fish. Now it is required to be called “mazeran ainame” (Magellan greenling) or “mero.”

Restaurants, however, are above the law. They are also above a new food labeling law due to take effect as early as spring 2015 that will combine three existing food laws, including the Agricultural Standards Law.

The logic of leaving restaurants unregulated is simple — according to the government.

“It is because it can be assumed that (the origin of) food served at restaurants can be explained if you ask about it on the spot,” an unnamed civil servant in charge of the matter at the Consumer Affairs Agency said.

The origins and producers of food are increasingly being identified at restaurants, including those in hotels, amid rising concerns about food safety, especially in light of the Fukushima meltdown disaster.

Michiko Kamiyama, a lawyer representing the group Food Safety Citizens’ Watch, said many customers have high expectations for food served by restaurants linked to expensive hotels.

“Customers make efforts to dine at hotels because they seek added value. They are expecting to get something that is worth the money they are spending.”

Gurunavi Inc., which runs an online restaurant guide, conducted a poll in 2009 to find out what kind of menu information puts guests at ease.

According to the poll, 72.5 percent want to see the “product origin,” followed by “calorie content,” “ingredient and nutritional information” and “taste and texture.”

The fifth most sought-after piece of information was “food producers,” with 26.3 percent, the poll of about 1,500 people said.

Gurunavi told restaurant managers who are members of the site that efforts to convey they are using carefully selected products will be an asset to their businesses and help generate fare that attracts customers.

“It has become difficult for consumers to discern (ingredients) by taste. They can only believe in professionals serving food. The psychological damage stemming from the betrayal (caused by the frauds) is considerable,” said Tomoko Yoshida of Gurunavi’s public relations group.

After serving up to 47 types of ingredients different from those advertised on its menus for seven years, Hankyu Hanshin Hotels has refunded at least ¥20 million to more than 10,000 customers so far.

Among other misrepresentations, its restaurants lied about the areas where its vegetables were grown and claimed the ready-made cakes and chocolate sauce it was serving up were handmade.

Like other firms, the hotel chain’s main business took a hit from the 2008 global financial crisis. So it started lying about the food on its menus in a bid to bring in patrons, according to Hankyu Hanshin Hotels President Hiroshi Desaki, who said Monday he would step down to take responsibility for the scandal.

In the restaurant industry, it is widely believed the main tenet of profitability is reducing food and labor costs. The eateries in the scandals were likely trying to slash food costs to “maintain quality of service.”

“Menu descriptions were created to meet consumers’ preference for brand products, and when they couldn’t obtain the stated ingredients, they just used food from different places of origin and may have become inured to the practice before it became a custom,” claimed hotel and eatery consultant Hiroshi Tomozawa.

Based on his 40 or so years in the hospitality industry, Tomozawa said there is a need to improve communication within the organization and to allow a different section to check all the products sourced by the purchasing unit.

Friday, February 14, 2014

E-Commerce Gives a Lift to China's Rural Farmers


A recent series of food safety scandals has created a hunger in China’s big cities for natural or traditionally grown food, absent buckets of fertilizer and pesticide. Two beneficiaries of this new market are Li Chengcai, 83, and his wife, 76-year-old Cheng Youfang, who grow white radishes in fields shadowed by the Yellow Mountain range. They get orders online from distant urban customers willing to pay more for flavorful, safe food.

The couple lives in Bishan, a village of 2,800 residents, in an old stone home on a narrow street lined with crumbling mansions. Rich merchants built the homes more than a century ago when the village, in southern Anhui province, was in its heyday. Many villagers, including their four daughters, have left for the cities. In 2011, China’s population was more than half urban for the first time. But Li and Cheng, who are illiterate and speak only their local dialect, say they have no plans to leave. Fortunately, a new opportunity has come to them—as it may to many more farmers in the next few years.

About a year ago, Zhang Yu, a 26-year-old “young village official”—that’s her actual title—knocked on Li’s door. In the summer of 2012, as national newspapers carried heated debates about genetically modified organisms and food safety, Zhang and a few other young colleagues had an idea. In their capacity as village officials they launched an account on Sina Weibo, a microblogging site, to post items about the fresh, traditionally grown produce of the Yellow Mountain region. Soon afterward they began an online store through Alibaba Group’s Taobao.com platform to connect local farmers with urban buyers. The first order, for 5 pounds of sweet corn, came from a resident of the wealthy port city of Dalian.

STORY: How to Reach China’s Avid Online Shoppers
The online grocery, officially known as the Young Village Officials’ Farm, has customers in Beijing, Shanghai, and elsewhere, and about 10,000 followers on Weibo. Twenty-seven farms now fill orders, including that of Li and Cheng, who sell dried radishes. Customers place orders online, and Zhang visits farmers to inform them of the order and work out logistics and shipping. Zhang says the reason for their success is a renewed interest in local farming traditions—which she documents in lush photographs on social media—and strict quality control. Her team inspects harvests and literally throws out bad apples. “We prefer to work with farmers in mountainous regions with better natural environments,” she says.

In an area where the average monthly household income is only about 600 yuan ($99), farmers selling produce through the online grocery store can increase their income by a third, according to Zhang. The store’s most popular items include dried bamboo shoots, firm tofu, and jars of honey. Many of the farmers can’t read and have never used the Internet. But they can still reap the economic benefits of e-commerce with the help of younger villagers who “use the Internet on our phones,” says 20-year-old Mu Er, general manager of an inn in Bishan. Zhang sends Weibo postings from her Xiaomi smartphone.

Zhang’s online store is part of a growing trend that could change the economic prospects of China’s rural population and slow the migration of young villagers to the cities. According to a December 2013 report from Alibaba, China’s e-commerce giant, the number of Taobao stores registered to rural IP addresses in China rose 25 percent in the past year, to more than 2 million. At least a few e-commerce businesses have not only padded rural incomes but also made some wealthy. Former farmer Liu Yuguo founded an online business selling woolen yarn from his home in the rural outskirts of Beijing in 2007; now he imports yarn from Inner Mongolia, employs 200 people during peak sales season, and drives a BMW.

STORY: Why Xi Jinping Is Visiting Poor Farmers
Rural residents are also going online to buy items they can’t easily find in nearby stores. With increased exposure to television and social media, “consumers in remote areas are now very aware of brands,” says Jeff Walters of the Boston Consulting Group’s Beijing office. Mu, the innkeeper, says he buys shoes from Taobao because “shoe stores here only offer low price and low quality.”

A June 2013 Taobao study found that consumers in China’s small cities spent a greater proportion of income shopping online in 2012 than those in China’s big cities. A March 2013 McKinsey Global Institute Study, China’s E-Tail Revolution, showed that in the smaller cities—essentially country towns—the average online shopper spent 27 percent of her disposable income via e-commerce. It’s “bridging the gap between people’s aspirations and what is locally available offline,” says Yougang Chen, a McKinsey partner in China and co-author of the report.

In Zhejiang province’s Suichang county, the local government has made online shopping easier by establishing drop-off and pickup sites for merchandise. As Barney Tan, a senior lecturer in business at the University of Sydney who’s done research in Suichang, explains: “Farmers can place orders for shampoo and farming supplies in bulk, and there are common established points of delivery.”

While the migration from China’s countryside into its cities shows no sign of reversing, the rise of e-commerce in rural areas does afford more opportunities. “We need to better balance development between the rural and urban areas,” says Ou Ning, an editor who moved to Bishan to study rural growth. He worries about the social cost of seeing rural areas as left behind. McKinsey’s Chen says the villagers’ online grocery store and other businesses have potential. “Chinese people’s love of different kinds of food is already creating a very good market,” he says. “The Internet has liberated millions of entrepreneurs in China.”

Wednesday, February 12, 2014

Fresh-food suppliers warned over meat storage in Hong Kong


Dozens of fresh-food suppliers were slapped with warnings last year for failing to store chilled meat properly, lawmakers heard yesterday.

One supplier was in danger of losing its licence as it had been selling frozen poultry as fresh meat despite repeated warnings, the Food and Environmental Hygiene Department said.


The department was criticized by the administration watchdog in October for lax monitoring of shops that sold frozen products.

"In response to the Ombudsman's recommendations, the department will increase the frequency of surprise checks on fresh-food suppliers that sell chilled meat and poultry," undersecretary for food and health Professor Sophia Chan Siu-chee told a Legislative Council panel on food safety and hygiene.

The department issued 48 verbal warnings and 10 warning letters to such suppliers last year, Chan said.

In October, the Ombudsman said that of 46 vendors at seven wet markets, 26 did not fulfill the licensing requirement to keep frozen meat below 4 degrees Celsius. Chilled chickens were sold in plastic containers with no refrigeration, and some were displayed without cooling containers, to make them appear fresh.

Its report accused the department of a lack of inspections, ineffective informal warnings and allowing shops too much time to rectify their problems.

Steven Ho Chun-yin, the lawmaker for the agriculture sector, said there had been many complaints of vendors passing off chilled poultry as fresh.

Legislator Wu Chi-wai said the errant supplier should have lost its licence when it was found to have breached hygiene conditions, instead of being issued with repeated warnings.

Chan said the department would refuse to process the licence renewal application of a supplier that had committed repeated breaches.

It had also formulated clear guidelines to define minor breaches and enforcement action, to be observed strictly by inspection officers, she said.

She added that the department was vigilant in acting against irregularities related to the storage and sale of chilled meat at improper temperatures.

Tuesday, February 11, 2014

Starbucks confirms use of chemical food additive in China

People eat inside a Subway store in Shenyang, 
Northeast China's Liaoning Province on Monday. Photo: CFP



US-based coffee chain Starbucks confirmed the use of a chemical substance known as azodicarbonamide in its food products in China, pledging the use of the additive as “legal.”

In a statement sent to the Global Times Monday night via e-mail, Starbucks said some pastries sold in its China stores contain wheat flour with the additive, which is fully compliant with local food safety regulations in China.

The e-mail pointed out that azodicarbonamide is an approved food additive for pastry production according to GB2760 China Food Additive Standard.

Starbucks made the announcement after foreign media reported that US consumers have been protesting fast-food restaurant Subway’s use of the chemical to enhance bread’s elasticity, but which poses a potential health hazard. According to CNN, the same chemical is also found in the bread products of other US chains such as McDonald’s and Starbucks in the US.

A McDonald’s representative contacted the Global Times by e-mail on Monday, saying there is no azodicarbonamide in its bread sold to the Chinese market.

Subway, one of the world’s largest fast-food chains, said Monday that the bread it uses in the Chinese mainland does not contain azodicarbonamide, calling for Chinese consumers to“rest assured.”

The news caused a stir among netizens when they discovered the same chemical is also used in making yoga mats and shoe soles.

“Azodicarbonamide is not present in any bread sold in Subway restaurants in the mainland. However, while it is fully approved by relevant government authorities in the US, this particular ingredient is already in the process of being removed from US bread,” Subway said on its official Sina Weibo account.

Some food safety experts were quoted by the National Business Daily (NBD) on Monday as saying that azodicarbonamide itself is safe, but it might release a chemical substance that causes cancer when being baked at high temperature.

According to the NBD, while the US, Brazil, and the Chinese mainland allow the legal use of azodicarbonamide in food making, it has already been banned in Singapore, Australia, Japan and the EU a long time ago due to its potential hazards.

In recent years, Western fast-food chain stores have expanded rapidly in China, lowering their threshold for franchise membership along the way.

Subway alone expanded from 355 stores to 400 stores during a period of nine months last year.

Friday, February 7, 2014

Salmonella outbreaks expose weaknesses in USDA oversight


USDA inspector showed up at Rick Schiller’s home in November to collect potential evidence from his freezer: three pounds of chicken thighs, wrapped in plastic and stamped with a Foster Farms label.

Schiller, a 51-year-old California advertising executive, had recently returned from a five-day stay in the hospital prompted by severe vomiting, diarrhea and an infection that left his joints throbbing and his right leg purple and twice its normal size.

State lab tests run on Schiller had already confirmed the diagnosis: a salmonella infection linked to Foster Farms chicken, part of a widespread outbreak that has food-safety advocates and some public health officials warning about the potential for food-borne illnesses to become more and more severe in the age of antibiotic-resistant “superbugs.”

Federal regulators and poultry companies are scrambling to find new ways to reduce salmonella contamination, which sickens a million Americans annually. And the Agriculture Department is planning to expand rules to limit salmonella on chicken parts, not just whole birds.

But food-safety groups say this doesn’t go far enough and that the USDA should ban the most perilous salmonella strains from poultry altogether, just as it did with other dangerous bacterial strains in many beef products.

Poultry processors have resisted such an approach, arguing that it would be expensive and ultimately futile because salmonella is so pervasive.

The salmonella strain that sent Schiller to the hospital — a type known as Heidelberg — has been linked to numerous outbreaks in recent years, including the one at Foster Farms, which officially has sickened 430 people in 23 states but probably has harmed many more. The pathogen has sent double the usual rate of victims to hospital emergency rooms, one reason the Centers for Disease Control and Prevention called dozens of experts and investigators back to work during the government shutdown this past fall to more closely track the outbreak. Some strains of Heidelberg also have proven resistant to several types of commonly prescribed antibiotics.


Crackdown on E. coli

Noah Craten was 18 months old when he ended up in an Arizona children’s hospital in October after an unshakable fever that lasted nearly a month. Doctors eventually discovered that an infection in his bloodstream had caused abscesses on the boy’s brain. Surgeons had to slice open his scalp and cut open a piece of his skull to remove them.

After three weeks in an isolated hospital room and countless doses of antibiotics, Noah returned home in early November. Tests run by state health officials showed he had been infected with a Heidelberg strain, linked to the Foster Farms outbreak.

Cases similar to Noah’s prompted the CSPI to file a petition with the USDA in 2011, outlining legal arguments for why it thinks certain strains of salmonella should be banned because they present acute health risks, especially to the very old and very young.

The agency declared a zero-tolerance policy for the strain in many beef products after hundreds of Americans fell ill and four children died in 1993 after eating tainted hamburger meat from fast-food chain Jack in the Box.

As researchers eventually identified other types of E. coli that were particularly virulent and resistant to antibiotics, those likewise got labeled “adulterants” by the USDA, meaning the agency considers them dangerous substances that should be banned from commerce. A ban gives the USDA legal authority to order recalls, something it does not have with salmonella.

The result: Over time, deaths and infections from E. coli have decreased significantly.

“It worked,” said Seattle lawyer Bill Marler, who specializes in food poisoning cases and is representing Schiller. “Ninety-five percent of my cases used to be E. coli. Today it is nearly zero. The industry will kick and scream, but they can fix it.”


‘Simply not feasible’

The chicken industry has long argued that it would not be realistic to expect processors to do away with salmonella on raw meat and that consumers must bear some responsibility in appropriately preparing it.

“Eliminating bacteria entirely is always the goal. But in reality, it’s simply not feasible,” said Tom Super, a spokesman for the National Chicken Council. “No legislation or regulation can keep bacteria from existing. . . . The only way to ensure our food is safe 100 percent of the time is by following science-based procedures when raising/growing, processing, handling and cooking it.”

Both salmonella and E. coli can be killed by cooking meat to the appropriate temperature, but the USDA has determined that the risks are too great to place that responsibility on the shoulders of consumers when it comes to the more dangerous E. coli strains.

CSPI and epidemiologists hope that by expanding this approach to select salmonella strains, the industry will be provided with the incentive it needs to scale back on the overuse of antibiotics on the farm. Experts say this practice has contributed to the rise of superbugs, both in animals and in humans.

As George Washington University epidemiologist Lance Price explains it, as more and more antibiotics are used on chickens, some types of salmonella are better able than others at surviving the bacteria-killing treatments. “It’s like someone is shooting at the bacteria and some of them have put on bulletproof vests,” Price said. “The bacteria with the bulletproof vests are going to be the ones that survive.”

Some of those bulletproof bacteria are rendering numerous classes of antibiotics all but useless, and public health officials have warned of the long-term consequences.

Daniel Engeljohn, an assistant administrator at USDA’s Food Safety and Inspection Service, said the agency is reviewing the legal petition from CSPI and is not making any public comments about whether some salmonella strains should be banned. But in private conversations, food safety advocates say, USDA officials expressed concern that prohibiting the strains could invite a legal challenge from industry.“We don’t want to live in a world without our most effective antibiotics,” Price said. “There’s not an infinite number of ways to kill bacteria. This is not a game we can play indefinitely.”

In the meantime, Engeljohn said the agency’s focus on improved sanitary conditions and more stringent pathogen testing in plants will “have a positive impact on public health.”

The USDA is also touting a proposal that would revamp its poultry safety inspection system altogether, something it says will reduce salmonella illness rates by 1.9 percent, according to an agency study. The Government Accountability Office, however, said this figure is suspect, given that it uses incomplete and antiquated data.



The parts vs. the whole

Even as the USDA has shown little appetite for banning any type of salmonella in the near term, the agency is trying to tackle what almost everyone agrees is a shortcoming in current oversight: contamination standards apply only to whole chicken carcasses, not parts.


In 1998, the USDA told processors that no more than 23 percent of whole chickens in any plant could test positive for salmonella. In 2011, the agency lowered that limit to 7.5 percent and began posting test results online.

“The result is the contamination rate of the carcasses has dropped,” said Robert V. Tauxe, the CDC’s deputy director for the division of food-borne, water-borne and environmental diseases. “But here’s the puzzle: The frequency of human illness didn’t change.”

Why?

“Just about everybody buys [chicken] parts,” Tauxe said, but there’s no government standard for salmonella levels in chicken breasts, thighs and legs. “If you look at how much salmonella is on the parts, there’s a lot more than is on the whole carcass.”

The USDA has said it plans to institute new standards regulating chicken parts as soon as this year. Aware of that, the National Chicken Council said the poultry industry has been taking a “hard look” at how to further reduce contamination, particularly in the processes that involve slicing whole chickens into parts, which can introduce and spread bacteria.The USDA itself suspected this, and two years ago it collected data on salmonella levels in chicken parts. The results provided a possible explanation for why illness rates remained so high: 24 percent of parts were contaminated with salmonella, nearly four times the amount as on chicken carcasses. That same percentage held true at the Foster Farms plants tested during the recent outbreak, USDA officials said.



Slow recoveries

Under the cloud of crisis, Foster Farms has said it has adopted “23 new processes” to reduce salmonella. Although the company has declined to provide specifics, USDA officials said many of these changes involve applying antimicrobial treatments to chicken parts after they are processed, such as adding new equipment to spray and soak chicken parts with bacteria-killing chemicals.

“Foster Farms is among the first to do this unilaterally,” Engeljohn said.

To meet any new standard, companies will probably rely on greater use of chemicals. USDA inspectors and plant workers have previously complained of severe respiratory disorders as the use of chemicals in poultry plants has spiked in recent years.

In its latest update, the CDC said the Foster Farms outbreak finally appeared to be over, 212 days after investigators first began tracking it. But for some victims, the fallout of the outbreak won’t end anytime soon.

There are lingering questions about exactly how salmonella infected Rick Schiller, Noah Craten and others — whether from undercooked chicken or perhaps a contaminated fork or spoon. There are also questions about their recovery.

At home in Glendale, Ariz., Noah’s parents keep a close eye on their youngest son as he approaches his second birthday. Still at risk for infection, he must undergo an MRI every few months. He takes medication to prevent seizures, and doctors have warned he could suffer learning and vision problems as a result of his brain surgery.

Schiller still eats poultry, but only if it’s completely burnt on the outside. Doctors have given him cortisone shots and steroids to help with the lingering pain in his right knee, part of a condition known as reactive arthritis often associated with severe salmonella infections.“It’s just really going to be a waiting game,” said his mother, Amanda.