Dairy Product Safety on the Agenda

Ensuring food safety and raising consumer confidence has been the central preoccupation of the whole dairy industry this year. In this context, the 19th annual meeting of the China Dairy Industry Association (CDIA) was held on 13-15 September in Fuzhou, Fujian province, with the theme of safety, responsibility, reputation, according to Dairy Products China News 1310 issued by CCM.

 

Due to the efforts made by the Chinese government and the dairy processors,the dairy industry has continued in its recovery with slight growth. According to the data from the National Bureau of Statistics, dairy output reached 13.1 million tonnes in H1 2013, with a YoY growth of 11.6%. From this figure, liquid milk/yoghurt and milk powder/formula reached 11.3 million tonnes and 0.8 million tonnes, up 12.4% and 5.9%respectively year on year. Meanwhile,the dairy industry recorded a net profit of USD1.4 billion (RMB8.7 billion) in H1 2013, up 23.6% YoY.

 

However, consumer confidence in domestic dairy products is far from restored, which can be reflected by a number of data. China imported 91,500 tonnes of infant formula (in retail packaging) in 2012, up 16.9% over 2011, while it imported 56,000 tonnes in H1 2013, an increase of 28.5%.Imports of liquid milk increased from 40,500 tonnes in 2011 to 93,800 tonnes in 2012 and then rose to 96,000 tonnes in H1 2013, up 152% over H1 2012. Moreover, all these figures exclude the volumes coming in directly as a result of consumers’ overseas purchases.

 

Additionally, the dairy industry continues to face insufficient milk supply. This has been underlined with the shortages in availability of domestic liquid milk in some cities since early September (this has been seen in diverse locations including Guangzhou, Shenzhen and Jinan). The shortage stems from falling cow numbers in key milk production areas as household producers have been exiting the market, leaving the large-scale dairy farms unable to keep pace with demand. The interrupted supply of milk powder from New Zealand has also played a part here of course. It appears likely that some companies will aim to safeguard their profitability by decreasing production of mid-market and low-end liquid milks in order to maintain output of premium products.

Promoting the safety and quality of dairy products is still the key task for the Chinese government. According to Mr. Ma Chunliang, Deputy Director of China Food and Drug Administration(CFDA), the Detailed Rules for Infant Formula Processor Approval will be released soon: this is in review phase,with 10,000+ opinions submitted from the public on its topics (please see Dairy Products China News Vol.6 September Issue, p8). The CFDA is now formulating other policies and measures, such as regulations controlling infant formula sales in pharmacies, labelling and packaging for infant formula, plus a system recording production information on the infant formula processors.

 

By the end of June, 917 dairy processors had received production licenses compared with 716 at the end of 2011. From the latest figure 128 are infant formula processors, compared with 119 at the end of 2011. Mr. Song Kungang, the CDIA’s Director, noted that China’s dairy industry has entered into an adjustment and refinement stage, and especially the infant formula industry will face consolidation as a number of dairy processors will be eliminated in the near future. (Note: some earlier figures put out on the total number of processors were lower due to the exclusion of small scale dairy companies). The changes on pharmacy sales are important when it is considered that dairy products sell at an estimated 2.1 million individual points of sale (that is retail stores of all types) around the country as against infant formula selling through just 500,000.

 

Mr. Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology (MIIT), indicated that the acquisition and reorganization of the dairy industry will be promoted by both market mechanisms and government guidance. The key factors of production– inputs to the production process, including land, capital, information, etc – will be concentrated amongst the leading companies upon which the government will focus its support and also its pressure to upgrade. In addition, large-scale companies are encouraged to merge and reform small-scale companies; middle and small scale companies are encouraged to merge and set up industrial alliances; moreover MIIT is also encouraging competitive and listed companies to put in place international business strategies.

 

It’s worth noting that the China Chamber of Commerce of Foodstuffs and Native Produce (CCCFNP) established a dairy product imports working group on 11 September, part of the Chinese government’s move to ensure the safety of imported dairy products. This working group will specialise in solving the problems faced by the growing number of dairy product importers – currently, 1400+ import agents of dairy products have been recorded by the CCCFNP.

Table of Contents of Dairy Products China News 1310:

Key Processors’ Performance in H1

Dairy Product Safety on the Agenda

Dumex Caught in Bribery Scandal

Government Further Promotes Infant Formula Consolidation

Hebei Promotes Milk Powder/Formula Industry Development

Huishan Dairy IPO and Listing

Beijing Sanyuan to Expand Formula Business

Shengmu Farming Plans for Organic Growth

Tianyou Dairy Targets Infant Formula

Modern Dairy Performs Well in 2013

Yinqiao Biotech Launches New Fresh Milk

Treasure of Plateau Launches Yak Milk Infant Formula

Dairy Products China News, a monthly publication issued by CCM on 15^th, offers you the latest information on new market dynamics, company development, new products, technology, packaging and raw material supply, etc. It also focuses on the government’s direction and polices, helping you get the whole picture of the industry. 

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Draft Rules for Infant Formula Processors Launched

According to Dairy Products China News 1309 issued by CCM, on 2 August, the China Food and Drug Administration (CFDA) issued the draft revised version of the proposed Detailed Rules for Infant Formula Processor Approval for 2013 to solicit opinions from the dairy industry and the public (the previous version was issued by the General Administration of Quality Supervision, Inspection and Quarantine and took effect from 1 November 2010). The period for receiving comment on the revised draft lasted for 13 days and closed on 15 August. Compared with the old version, the new draft is more specific and includes some new regulations, aiming to increase the requirements for infant formula processors in production and management aspects. Some new regulations are notable:

• Food safety management. Processors are required to implement Hazard Analysis Critical Control Point (HACCP) and Good Manufacturing Practice (GMP) systems. Companies are required to set up a quality and safety management department, with full-time managers responsible for the establishment, implementation and improvement of the company’s food safety and quality system

• Raw materials. Processors using raw milk are required to build their own dairy farms, while those using milk powder are required to have a clear, defined and controlled milk source (whether through building their own farms, cooperating with other companies or having firm contractual relationships in place with producers); water supply for processing and cleaning should be purified to meet the quality standards in the Pharmacopoeia of China; processors must make a safety and quality assessment of their raw material suppliers and sign a quality assurance agreement with them, in which both sides must take on responsibility for quality

• R&D capability. Processors should establish an R&D department capable of developing new infant formula products, determining the products’ shelf life, researching potential risk factors in the production process and taking corresponding measures. The department should have no less than 5 researchers, including at least 2 senior engineers or holders of a master’s degree

• Information management. A searchable system should be established to provide information on labelling, packaging, quality standards and factory inspection report for consumers; processors must record data on their operations from raw material procurement through to product sales in order to establish a complete product traceability system

• Storage and distribution. The storage area should have enough space to house all goods in an orderly fashion, including raw materials, finished products, packing materials etc; the warehouse should be able to protect the goods from the effects of the climate; the company should complete data records on materials circulation

In addition to the above aspects, some other regulations are more specific and stricter compared with the old version. For example, in terms of production facilities, the requirements include cleanliness of the production environment, required production equipment and detection equipment, etc. More pieces of equipment are required than before: 13 dry blenders are required instead of 6, for instance, with stricter requirements for these items. This implies processors will need to buy more equipment, so impacting their production costs.

The core objective of the new document is to strengthen management in the infant formula sector and ensure the quality and safety of products, signifying the Chinese government’s determination to promote the development of the local infant formula industry. In line with the requirement for sector consolidation, it will prove much easier for large-scale processors to meet the new requirements in areas such as GMP and R&D than for some small scale processors, which may even lack a technician. Processors are expecting the authorities to provide more details; there is a general expectation that about half of the small scale processors may be eliminated from the dairy market, and more strict regulations will follow.

On the same day (2 August), CFDA issued a list of 128 domestic companies that are qualified for producing infant formula. The list will assist the public to readily identify the producers as a basis for assessing their qualifications and credentials. CFDA said that it will launch a campaign to examine and record information on the infant formula processors as part of its efforts to clean up the industry and standardise product information, and detailed information on the infant formula producers and their products will be published after this campaign. It indicated that some small players are expected to be eliminated in this manner.

Table of Contents of Dairy Products China News 1309:

Dairy Industry Progress in Q2

BCA Releases Infant Formula Quality Comparison Report

Infant Formula Sales to Roll Out at Pharmacies

Infant Formula Processors Show Growth in H1

Bacteria Crisis Shakes Chinese Customers’ Confidence

Draft Rules for Infant Formula Processors Launched

Government Promotes Dairy Industry Development

Beijing Sanyuan Continues Integration

Xiyuchun Dairy to Enter Infant Formula Market

Rapid Development of Raw Milk Supply in Heilongjiang 

Raw Milk Price Rises

Aohua Food Launches Almond Protein Milk

Dairy Products China News, a monthly publication issued by CCM on 15^th, offers you the latest information on new market dynamics, company development, new products, technology, packaging and raw material supply, etc. It also focuses on the government’s direction and polices, helping you get the whole picture of the industry. 

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Summary of domestic pesticide consumption in recent years

Frequently exposed by media and environmental protection organizations in recent years, food safety cases caused by pesticides have drawn the public's attention across China. These cases have caused much disappointment, not only significantly impacting the competitiveness of Chinese crops, but also threatening consumer health and reducing the public's trust in food safety levels.

Thus, it is necessary to analyze and address food safety cases regarding pesticides urgently. Here are four aspects for summarizing the reasons for these food scandals, including the consumption situation of pesticides, pesticide users (farmers), pesticide producers and dealers (enterprises) and pesticide management (policies).

Increasing domestic pesticide consumption volume

According to the report concerning pesticide residues of Chinese herbs conducted by Greenpeace, the domestic total pesticide consumption volume has been increasing since 1995 in general, except a slight decline from 2000 to 2001. In 1995, China's annual consumption of pesticides reached about 1.09 million tonnes. After the development of agricultural planting for 16 years, it is 1.79 million tonnes at present, increasing by 64.40% compared with that in 1995. Particularly from 2002 to 2011, the pesticide consumption volume was climbing by about 3% every year. Although the data in 2012 has not been issued yet, it is believed that it also enjoyed about a 3% year-on-year growth rate.

In contrast, the Chinese planting area has been decreasing generally since the mid-1990s. According to Chen Xiwen, a member of Chinese People's Political Consultative Conference (CPPCC), the Chinese planting area declined from 130.07 million ha. in 1996 to 121.73 million ha. in 2008. Then, for the following five years, the area maintained the level above 120 million ha. (1.8 billion mu, the warning line of planting area set by the China authority).

In conclusion, since the pesticide consumption volume has keeping increased and the planting area has been scaling down over the past few years, the average of pesticide consumption volume per ha. doubled in 2011, compared with that in the mid-1990s. Therefore, overall pesticide pollution and crop's pesticide residues in China are likely to be inevitably more severe.

Low utilization rate of pesticide application in China

Of nearly two million tonnes of pesticide used for plant protection in China every year, the effective utilization rate is only about 30%, meaning that the rest ends up as hazardous pollution and discharges into water, soil and the atmosphere, which not only does harm to the environment, but also intensifies the severe condition of pesticide residues on crops, whereas, in the past and at present, most domestic pesticide manufactories and farmers still focus on pesticide's input volume too much, but have ignored how to improve the effective utilization rate of pesticides.

Product structure of domestic pesticides on minor crops adjusted slowly

On one hand, most food safety cases involving pesticides have shown serious problems regarding pesticide residues of highly toxic products, which indicate that the application of highly toxic products is still popular in China. On the other hand, product structure optimization of domestic pesticides is developing fast, along with many new eco-friendly products introduced mainly by multi-national agrochemical enterprises in these years, whereas most of these products have been introduced intensively for several major crops namely rice, corn, wheat and vegetables.

In contrast, many minor crops including ginger, Chinese herbs, etc. lack new eco-friendly pesticides for protection, and even there are no legally registered pesticides for some minor crops. Therefore, traditional, highly toxic pesticides are applied on minor crops without appropriate instructions, which leads to the nationwide existence of pesticide residues of highly hazardous pesticides.

National citizens are paying more attention to the safety and quality of foods.

The overall level of citizens' living quality has gradually heightened along with China's economic development during these decades, although the extreme disparity between the rich and the poor has also been triggered. The Chinese, especially people in big cities, are more concerned with their health instead of simple subsistence only, and in this case, food possessing safety and high quality are required in domestic agricultural production. But as a matter of fact, citizens are much dissatisfied with chemical-intensive agriculture in China because there have been increasing food safety scandals exposed by the media attracting the public's attention and condemnation.

In consideration of the above, a healthy and eco-friendly development method is in great demand by Chinese agriculture.

Source: China Crop Protection Monthly Report issued by CCM in July 2013.

Table of Contents of China Crop Protection Monthly Report 1307:

Food safety scandal involving aldicarb

Increasing food safety scandals involving pesticides in China

Summary of domestic pesticide consumption in recent years

Small farmers applying pesticides improperly

Pesticide operators offer hazardous products to farmers

Inefficient supervision and gaps drive food safety issues

Resolution of pesticide safety problems and relevant policy dynamics

Restriction management of highly toxic pesticides in China

Media and NGOs should play a positive role to boost pesticide management

Crop Protection South America Monthly Report, a monthly publication issued by CCM on 31^st, offers timely update and close follow-up of South America's crop protection industry’s dynamics and the crops’ evolution and trends. This monthly report also features in-depth analysis on market development through abundant facts and figures.  

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

High-toxic insecticide aldicarb involved in food safety scandal

In May 2013, an insecticide namely aldicarb (Brand name in Chinese: Shennongdan) involved in a food scandal which happened in the rural areas of Weifang City, Shandong Province. It has been confirmed that some farmers in the areas had been overusing aldicarb, which is an illegal and highly toxic insecticide to grow gingers, leading to public condemnation. The increasing number of food safety scandals these years in China not only indicates the weakness of pesticide supervision and management, but also reflects farmers' habit of choosing pesticides: pursuit for low price, quick and high efficacy in China, according to CCM’s latest issue of Insecticides China News.

As a highly poisonous carbamate insecticide, just 50 milligrams of aldicarb is enough to kill a person weighing 50kg. According to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), aldicarb is only allowed to use on cotton, tobacco, peanuts, roses and sweet potatoes under highly strict rules on application. However, on 4 May, 2013, an investigative report by China Central Television (CCTV) revealed that farmers in Weifang had been using 120-300kg/ha. aldicarb for growing gingers, nearly three to six times above the safe level for targeted crops mentioned above. This is entirely a threat to public health and infringement to the rules of the ICAMA.

What's more shocking is that ginger farmers actually did recognize aldicarb's toxicity. One interviewee said that she was aware of the high toxicity of the product and dared not to use it in fields where gingers are grown for export and her family, her aldicarb-contaminated gingers were sold on the domestic markets. Another respondent said he had been using aldicarb for more than 20 years since it was first introduced to the market, as it has a stronger control effect on insect pests and nematodes and a lower price than other products.

There are multiple reasons for the emergence of aldicarb-contaminated gingers and other food safety scandals in China during the past years. Firstly, most farmers choose and apply pesticides based on the price of pesticides and their experiences. They used to purchase cheaper pesticides with quick effect but high toxicity instead of eco-friendly products with low toxicity. While spraying pesticides, they usually ignored the introductions on package, undereducated and unaware that they should comply with the introductions.

Secondly, the food safety scandals witness weak supervision on pesticide management and food safety. As mentioned above, the farmers in Weifang had already used aldicarb on gingers with a volume exceeding safe level for a long time, but what is surprising is that the circulation and application of aldicarb have not been inspected by authorities in these years; aldicarb-contaminated gingers were not identified during food safety inspections until they were marketed across China.

Besides, the lack of legal and effective insecticides is another reason for the ginger scandal. Like other minor crops in China, ginger doesn't draw enough attention of agrochemical enterprises for R&D or registration of applicable corresponding insecticides, as the economic return generated from investment in pesticides on minor crops is reckoned to be less than that in major crops. According to the ICAMA, there's only one valid registration of insecticide for ginger–98% methyl bromide GA–in China as of 13 May, 2013. This is far from enough to fulfill the demand of controlling ginger insect pests.

Along with more and more food safety scandals exposed by media these years, Chinese authorities would have to tighten its inspection on both pesticide management and food safety and be more accountable to improve the overall supervision mechanism in the future. Enhancing the ability and efficiency of law enforcement is considered to be primarily imperative. Meanwhile, boosting the development of eco-friendly pesticides and improving farmers' technological knowledge of pesticide application are required in the long run. Furthermore, it is advised that the government should strongly support the pesticide registration for minor crops, such as providing financial subsidies, just like Zhejiang Province did (please refer to Insecticide China News Volume 06 Issue 02 on Page Nine, Water bamboo receives pesticide registration subsidy in Zhejiang Province).

Different from China, some of other countries and regions in the world have washed out aldicarb. In 2010, the US Environmental Protection Agency (EPA) and Bayer agreed to carry out an entire ban on aldicarb use in the US: all remaining aldicarb uses will end no later than August 2018, as a new risk assessment conducted by the EPA indicated that aldicarb no longer met food safety standards. In 2012, both Brazil and Peru repealed the registrations of aldicarb and started to forbid the product for sale.

Table of Contents of Insecticides China News 1306:

Will EU-wide ban on three neonicotinoids affect China?

High-toxic insecticide aldicarb involved in food safety scandal

Dow to introduce sulfoxaflor to China

Hunan Huinong's tea saponin biopesticide to come out in H2 2013

Doramectin to be applied as insecticide in China

Remarkable growth of pymetrozine registrations continues

Qiheng Agro-chemical to receive investment from listed household chemical company

Redsun Biochemical to shut down compulsively required by government

Jiangsu Changqing to enhance wastewaster treatment and warehouse management

Anhui Futian to set foot in insecticide production

Agrochemical multinationals actively invest in China's pesticide industry

Hunan Haili intends to produce thiodicarb TC (4,000t/a) for export

Bifenthrin export 2012: rises in TC export volume but declines in value

Monthly ex-works prices of main insecticides in China, June 2013

Monthly port prices of main insecticides in China, June 2013

Monthly FOB prices of main insecticides in China, June 2013

Insecticides China News, a monthly publication issued by CCM on 10^th, provides the latest and influential analysis on insecticide industry. Major contents include special report, company dynamics, market dynamics, supply and demand, price analysis, policy, raw material and intermediate.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and consultancy service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Stronger Focus on Food Safety

In mid-March the Chinese Ministry of Health (MOH) asked for advice from the public in response to the draft of the 2013 National Food Safety Standard, according to CCM’s monthly report, Dairy Products China News 1303.

The draft is mainly a revision of some food safety national standards, including food products, detection methods, food additives, nutriment supplements, nutrition & special diet foods and requirements for production and operation. It has also been suggested that a General Standard of Nutrition Supplement for Pregnant, Post-Natal and Breastfeeding Women should be set up.

In view of the significance of food safety, this is the 2nd time that the public’s views have been collected for the draft. By the end of January, the China National Centre for Food Safety Risk Assessment (responsible for the risk assessment, monitoring,early warning and communication of national food safety, and food safety standards) had received 1,288 suggestions on the topic, leading it to draw up a draft on this basis.

 

The draft is also a response to a succession of food safety incidents. Mainly because of the quality scandal which hit Mengniu, the draft has an added Aflatoxin detection method and a quality standard for raw milk. The arguably low standard of raw milk has been widely considered as key to most of the quality scandals hitting the dairy sector, with different parties quarrelling about what standard should be applied, pushing the government to address the issue.

Alongside the draft, a number of administrative measures have been taken to prevent food quality accidents:

• The MOH has strengthened the supervision of food products through national surveillance. In late January, it indicated that the focus of 2013’s work will be upon addressing issues in several key areas, notably grain, vegetables, meat, dairy products, infant foods and illegal additives. Infant foods, formula and accessories are of special concern. 50%+ of China’s county level administrative regions should monitor for food contaminants and other harmful factors, according to the MOH

• In early March, Gansu Province detailed its food safety work in 2013. Dairy products, edible oil, liquor, meat, food additive and etc. are listed to be important aspects and supervisors at all levels have to attend a total of over 40 hours’ training about food safety

 

• In mid February, the Department of Health of Guangdong Province solicited the views of consumers in respect of a range of regional food safety standard revisions, citing its goals as being to encourage progress in food safety technology, independent innovation and industry development

• Sichuan Province organised the “One Hundred Days Action”around the theme “2013 food safety”. The programme divides into 4 stages, from 20 February to 31 July, emphasising relevant departments’ responsibility in food safety

During the sessions of the NPC & CPPCC (the National People’s Congress and the Chinese Political Consultative Conference), food safety was a topic frequently discussed. Infant formula attracted the most attention, especially after the establishment of Hong Kong’s regulatory limits on purchases of infant formula products. Mr. Zhou, director of the State of Administration for Industry & Commerce of China, revealed that it will release specific rules to reinforce the management of infant formula products, which would cover the whole production chain, although no details about the specific rules have been forthcoming to date.

 

Although domestic dairy products have gradually regained some consumers’ confidence, the perceptions amongst the public remain a major obstacle. The General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ) publishes data on qualification rates of domestic dairy products checked. It states that 99% of domestic dairy products are passing when checked nowadays, a rate higher than for imported dairy products. Mr. Yang, the deputy director of AQSIQ, announced that 0.26% of domestic dairy products failed when checked during 2011 and 2012, compared with a failure rate of 0.76% for imported dairy products in 2012; in the case of domestic infant formula the failure rate was 0.77% in 2012, 0.37% lower than for imported infant formula.

Clearly besides the various governmental actions, food companies are keen to play key roles in food safety, as demonstrating high levels of quality will be critical to their brand awareness an brand reputations. A good example of this was seen on World Consumer Rights Day (15 March), when Mengniu organised interactive activities nationwide to raise public awareness of consumer rights protection, in the process positioning its products as offering high quality and safety.

Table Contents of Dairy Products China News 1303:

Royal Dairy Growth Plan

Hong Kong Acts on Infant Formula Trade

The Price of Imported WMP Rises in March

Prospects for E-commerce

Stronger Focus on Food Safety

DMK Plans Expansion in China

Want Want China Prospers with Dairy

Strategy Adjustment at Black Cow

Modern Dairy Performs Well in H1 2013

Mengniu Launches New Ice Cream

By-health’s Strong Performance in 2012

MiMille Introduces Premium Infant Formula

Dairy Products China News, a monthly publication issued by CCM on 30^th or 31^st, offers you the latest information on new market dynamics, company development, new products, technology, packaging and raw material supply, etc. It also focuses on the government’s direction and polices, helping you get the whole picture of the industry. 

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and consultancy service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Sweetener Industry May Benefit from Quality Credit System Construction

On 2 May 2012, the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China issued an announcement to promote the construction of Quality Credit System, aiming to strengthen the social consciousness of quality credit. And both food industry and food additive industry are listed as pilot units. Of course, as a member of the food additive industry, sweetener industry is also on the list. It is predicted that the construction of Quality Credit System may bring some new development opportunities to sweetener industry in China, according to CCM’s June issue of Sweeteners China News.

In fact, since people's consciousness of food safety has enhanced and food safety incidents have frequently emerged in the past few years, Chinese government has taken a number of measures to deal with food safety problems. For example, on 13 Oct. 2011, the Ministry of Health established the National Food Safety Risk Assessment Center in Beijing. This time, food industry and food additive industry are also involved in the announcement mentioned above, which is one measure taken by Chinese government to deal with food safety problems. According to the announcement, local governments shall take a series of measures to strengthen the social consciousness of quality credit: establish enterprise quality credit files with real-name system; found public service platform for products' credit information; strengthen quality credit evaluation system; intensify punishment for missing of quality credit and implement classification supervision by quality credit rating.

For sweetener producers in China, to become a quality credit demonstration unit will be conducive to their development.

 

Firstly, becoming a quality credit demonstration unit may bring them more opportunities. In fact, as a major downstream market of sweeteners, food industry (including both food and beverages) prefers sweetener suppliers with high quality credit in China attributed to the following two aspects. On one hand, food industry is also listed as a pilot unit in the construction of Quality Credit System. It is believed that in order to enjoy a good development in the future, food enterprises should make efforts to improve the quality of their products. On the other hand, food safety incidents have frequently emerged in China in the past few years, such as the scandal of carcinogens contained in dairy products of Inner Mongolia Mengniu Dairy (Group) Co., Ltd., a major dairy producer in China. Therefore, in addition to improving product quality, food enterprises will also put more emphasis on selecting those raw material suppliers with credible and good corporate image, such as sweetener suppliers with good quality credit. Moreover, if a sweetener producer is a quality credit demonstration unit, its products are easier to get preference from downstream companies.

 

Secondly, becoming a quality credit demonstration unit makes sweetener producers more likely to get government aid. Actually, Chinese government always encourages the development of those enterprises that follow the government's development plan through various ways, such as reducing tax and providing credit. Since Chinese government has put forward to promote the construction of Quality Trust System, it must encourage enterprises that are actively involved. For example, in order to promote the development of renewable energy and new energy, Chinese government has provided subsidies for fuel ethanol producers since 2004. COFCO Biochemical (Anhui) Co., Ltd., the largest fuel ethanol producer in China, for example, got a subsidy of USD86.46 million from the government in 2011, which is more than the company's sales deficit. 

However, how can a company become a quality credit demonstration unit in China? It is estimated that sweetener producers can make efforts in the following aspects: firstly, the quality of products should conform to the standards both at home and abroad or to industrial standards; secondly, they must pass the random check on product quality carried by local governments; thirdly, they should build up a positive image and reputation.

Source: Sweeteners China News 1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_190.html

Content of Sweeteners China News 1206:

China's saccharin output reaches 3,043 tonnes in Q1 2012

CSA releases reward notice to against sugar smuggling

National food safety standard of maltitol launched

Output value of China's beverage industry increases in Jan.-April 2012

Global Sweeteners may suffer net loss in H1 2012

Layn to merge wholly-owned subsidiary

EU makes final verdict of anti-dumping investigation into Chinese cyclamate

Consumption of acesulfame-K in China expected to increase in 2012

Overview of Chinese sorbitol industry in Jan.- May 2012

Sweetener industry may benefit from Quality Credit System construction

FOS drives Shandong Baolingbao and QHT to perform well in Q1 2012

Xiwang Sugar further focuses on HFCS business

Shanghai Suzan starts sucralose project

… …

If you are interested in CCM International’s June issue of Sweeteners China News, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

Sweeteners China News is a monthly newsletter published by CCM International Limited. Based on China market, CCM offers timely update and close follow up of China’s various kind of sweeteners market dynamics, analyze the market data and trends, Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, Consumption Trend & Competitiveness.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1116.html

April Issue of Dairy Products China News Comes Out

CCM International’s April issue of Dairy Products China News has newly published recently. The latest issue covers a range of sector developments but stand outs are Wahaha seeking dairy farms in Australia and Fonterra looking to expand its dairy farms in China. Heading to farm in either direction demands deep pockets and political goodwill. The idea of partnerships to facilitate such ventures – whether between Fonterra and Shanghai Pengxin or others – may make a lot of sense.

Certainly producing milk in China has state support: the Chinese Government wants international dairy companies to establish industrial-style farms to produce high quality fresh milk for its consumers weary of food scares centred on dairy products. Ironically perhaps – although in truth this signifies a structural adjustment in the sector which should surprise no-one – the corollary of this is that for many dairy farmers in China life is getting harder. The recent reduced prices for milk being paid by Wondersun in Heilongjiang present a contrast to the April prices rises from Mead Johnson and Nestlé. Such price rises appear to have limited impact on sales, reflecting the specifics of the product category.

At a wide level, unexpectedly low import figures for March 2012 reflect modest levels of domestic demand in China. These are figures to watch as private consumption needs to rise to reduce the need for investment spending. Doubters over the economy’s future are not hard to find, although most private sector forecasters remain positive. The Asian Development Bank, for one, expects GDP to rise to 8.5% in 2012 and consumption to grow by 12% in 2012 and 2013, reflecting higher wages and rising government expenditure on social services. It believes the latter will encourage Chinese consumers to save less: going on price trends, they may well have to. Please check the April Issue of Dairy Products China News to discover more.

Headline News in the latest issue include:

-Recently, several large-scale grain & food processors have made steps towards further diversification – a sign of trends in the market which seem likely to accelerate in the future.

-In late February, the General Administration of Customs of China confirms a higher tariff on milk powder imported from New Zealand from 1 March.

-On 6 March, the State Council issues a new policy to support the development of leading agriculture enterprises in line with recent trends in the agribusiness sector.

-Yunnan launches a guideline for the formulation of local food safety standards which is being implemented from 1 April.

-On 14 March, Yili announces its investment programme and development goals for 2012, shortly after the release of its full report for 2011.

-On 3 March, Wahaha reveals its plans for dairy farming in Australia, in line with the company’s diversification and integration strategies.

… …

Dairy Products China News, is co-published by CCM International & Orrani Consulting, which is unique in combining genuinely global experience in the dairy industry. Dairy Products China News brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market. If you need more information of this newsletter, please feel free to contact us at econtact@cnchemicals.com.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1059.html