1. International Food Safety and the Global Food Chain:
China’s role
Richard Gilmore
President/CEO of The GIC Group
Managing Director of Global Food Safety Forum

2. China Background Growing food product exporter
Ingredient supplier internationally

3. Background Incidents US EU Salmonella Dioxin Egg, 2010
Peanut butter, EU
Dioxin
Germany and others, 2010

4. Background Incidents China
Melamine-tainted infant formula, 2008 and 2010
Dairy products containing leather-hydrolyzed protein, 2011
Cenbuterol-tainted pork, 2009 and 2011

5. Xinhua news Probe into pork problem in China
March The State Council's call for a thorough probe into the scandal of feeding pigs with banned substances (ractopamine and clenbuterol) will help re-establish the public's confidence in the government.
China's top legislature launches new round of inspection on food safety law implementation
March The Standing Committee of China's National People's Congress (NPC) launched a new round of national inspections to ensure the country's Food Safety Law is properly enforced.
China targets dairy products, meat in food safety campaign for 2011
March China has rolled out its annual working plan to beef up food safety in 2011, as more food safety scandals have entered media spotlight and aroused public concerns.

6. Factors increasing food-borne disease
Increased consumption of high-value food commodities
Meat
Poultry
Fresh produce
Doubling of the global demand for food and of the international trade in food

7. Factors reducing food-borne disease
Ability to first detect and investigate a food safety issue and then to develop effective control measures
Key role
Intergovernmental organizations
International bodies

8. Threat to the global food chain
Pathogens and non-pathogens
Fraud
Weak regulatory
Defrauding the consumer

10. Problems
Increasingly inter-connected global food supply chain vs. fractionated management of the food chain
Direct and indirect public health threats
Rising costs of remedies
Decreased sales
Recalls and destroyed product, and
Penalties from injured parties seeking compensation through court system
Dislocation effects on a multiplicity of trade and economic indicators
Lack of consumer and commercial incentives to underwrite national/international food safety systems

11. China dairy case
Rapid growth fueled by large investments from multinational dairy firms
Highly modern and concentrated processing sector vs. raw materials from millions of small, poor and uneducated traditional farmers
Government support and encouragement for growth vs. little emphasis on inspection and safety issues

12. China dairy case Melamine crisis prompted Chinese new food safety law
Mandate regular inspections with no exemptions
New allowable tolerances for melamine in dairy products

13. Legislations and enforcement
Food Safety Law, China, 2009
Food Safety Modernization Act, US, 2011
Science-based and preventive
Import-Related Provisions
Accreditation Process for Third Party Auditors
Foreign Supplier Verification Program
Voluntary Qualified Importer Program
Third Party Certification

14. Legislations and enforcement
Lack of harmonization of standards/ certification
Regional differences in enforcement/ compliance
Overlap and lack of enforcement resources in place
Insufficient collaboration platforms for public/ private sector

15. Non-government initiative
Transaction oriented strategy
Building an International Collaborative Network standards

16. Non-government initiative
Transaction oriented strategy
Creating a collaborative industry and industry/public sector platform
Problem solving at operational level, food safety training, platform provider of dialogue
Designing risk minimization strategies for Asian markets and global food chain

17. Non-government initiative
Building an International Collaborative Network standards
Certification
HACCP
SQF
BRC
IFS
Third party audit
Industry accepted
Government recognized

18. Chinese consumers
Chinese consumers have the highest willingness to-pay for
Government certification program
Third-party certification
Traceability system
Product-specific information label

19. Survey of Beijing consumers
Consumer awareness, willingness to pay, and price premiums for HACCP-certified milk products
<20% respondents was aware of HACCP
After receiving information on HACCP
nearly all respondents were willing to pay a modest price premium for HACCP-certified products
Price of products with HACCP labels in Beijing supermarkets about 5% higher

20. Non-government initiative
Building an International Collaborative Network standards
Harmonization and International food safety standards

21. Non-government initiative
Conversation platform
Trade delegation visits to US and China
Workshop or on-site

22. Non-government initiative
International expert resources and professional expertise
Capacity building
GFSF Food Safety Workshop
Meat, November 2010
Dairy, June 2011
Exporters, June 2011

23. Non-government initiative
Rapid response team
Voucher System

24. Thank you!