A recent incident in which the Shanghai Husi Food Co repackaged and sold chicken and beef that were past their sell-by dates has refocused international attention on food safety in China. It comes as the Taiwanese government looks to set up free economic pilot zones, which would include agricultural added-value manufacturing, calling for circumspection and vigilance in this area.
The first issue is that multinational companies like Shanghai Husi’s parent company, the US-based OSI Group, adopt different control standards and production methods in different regions and countries depending on their respective food safety rules, causing product quality to widely vary. The government should demand that foreign-invested companies operate according to high standards adopted in Europe, North America and other advanced regions. It should not follow the Chinese government in providing preferential policies to encourage foreign investment in China, including tax breaks, quick customs clearance and relaxed inspection procedures. If multinational companies abuse such privileges by prioritizing profits over social responsibilities, they will lose out by damaging consumers’ faith in their global brands.
Second, Japan has been adversely affected by this incident, despite its food inspection and management practices being among the strictest worldwide. It was found that 12 percent of the chicken meat used in chicken nuggets by McDonald’s in Japan is supplied by Shanghai Husi, as are two kinds of chicken products sold by the FamilyMart convenience stores. This follows last year’s revelation about the presence of agricultural chemicals in some frozen food products in Japan. These incidents have left authorities considering how best to seek compensation.
If such things can happen in Japan, there is sure to be some increase in food safety risks in Taiwan if — as the pilot zones plan proposes — it permits value-added agriculture in the special designated areas, involving imports of agricultural ingredients from many countries. Even minor issues with raw materials will affect the quality of finished products to be exported and marketed as “Made in Taiwan.” This would badly dent the reputation of Taiwanese-made products. Thus, consideration should be given to labeling goods with the country of origin for both raw ingredients and the finished products.
Trends in food industry supply chains for more diverse raw material sources mean that dishonest practices at any link in the chain will cause problems throughout the system. This calls for instituting joint liability and establishing stricter control and monitoring systems for the safety of imported agricultural materials, such as tracing and tracking systems, mandatory registration of food manufacturers, and hazard analysis and critical control points all achieved through international consultation and cooperation. Government subsidies could counter increased costs, but so far the government is yet to play an active role.
Finally, given that Chinese agricultural products will be the main source of raw materials for processing in the proposed pilot zones and considering the problem of Chinese farm products containing traces of harmful agricultural chemicals, medicines, heavy metals, hormones and so on, a one-size-fits-all approach to safety will not do.
The government should apply different levels of inspection and quarantine depending on how strictly different nations manage their respective agricultural production. Only by doing this can authorities properly perform their function of ensuring food quality and safety.
Lee Wu-chung is a professor of agricultural economics and former director of the Yunlin County Government’s Department of Agriculture.
Translated by Julian Clegg
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