Noon International: Food Trading Import Export

It appears that frozen water chestnuts, one of our imports from China, used for blending with stir frys, pastas etc. will be hard to come by at reasonable prices.  This year they have once again encountered weather problems causing much of the raw material to become rotten.  The total growing area has decreased by up to 30% in some areas as farmers seek out better crops to produce. The canning industry, the largest user of water chestnuts will also be short putting more upward pressure on pricing, along with inflation, energy cost, RMB appreciation and so on. 

The end result is higher pricing and shortage.  Another indicator of food inflation.

Technorati Tags: Noon International, China, water chestnuts

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This is an interesting article (http://www.bloomberg.com/apps/news?pid=email_en&refer=home&sid=aq_idaiqb638) that explains the rational of the Chinese currency appreciating against the dollar to a rate of 7 RMB to 1 USD.  This is about a 6% increase  over  the current exchange rate of 7.49 RMB to the dollar and another reason why we can expect to see food inflation on  our frozen vegetables from China in the coming year.

Technorati Tags: Noon International, China, RMB

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As an importer of frozen vegetables it is our responsibility to help the exporting country with the regulatory laws and in particular the pesticide tolerances for vegetables.  Pesticides is the number one problem for frozen vegetable imports.  As a general rule pathogens and bacteria are not of concern because the vegetables are blanched for several seconds killing bacteria.  However the pesticides are another issue all together. 

The EPA (Environmental Protection Agency) is responsible for testing and determining the tolerance levels for pesticides.  In 1996 congress passed  the FQPA (Food Quality and Protection Act) which changed the guidelines for developing tolerances for pesticides.  Now they not only look at the pesticide used on the agriculture products in isolation but they also consider the pesticide that may be in the drinking water supply and residential usage of pesticide.  Thus they are looking at the total cumulative effect of the pesticide based on their “Risk Cup”.  The risk cup is equal to the full amount of pesticide that a person could receive every day for 70 years without significant health risk reduced by some factor to make it child safe. 

All this is great and makes me happy that they are looking at the whole picture (or more of  the picture) to evaluate risk. This is definitely a step in the right direction.

What I am confused about is that it is based on science and if it is based on science why do some countries have different levels of tolerance or maximum residue limits (MRL).  We need to work on the MRL’s on a global basis so that we all win regardless of country that we may live in.

What is more frustrating for me as an importer is the inability to give information to our suppliers abroad.  How can we tell them that the product must meet EPA (FDA) guidelines for pesticides if we can’t find the information ourselves?  I have spent several hours looking and trying to find the data but without success.  If we are going to live in an international society we have to be open and transparent with such basic information.  Perhaps the EPA and/or FDA will come to the 21st century and post this information on their websites.  Let’s make our world better by working together to provide the safest food possible.

Technorati Tags: Noon  International, pesticide, EPA, FDA, FQPA, food quality

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We have just returned from Anuga (Cologne, Germany) where Lily Noon presented a speech covering China.  She presented her speech to a group of over 250 people attending the Golden Ice Crystal Awards on October 16.  She gave a short brief overview of China and how it has progressed over the last 25 years.  The key focus of the speech was based on the word crisis.  In Chinese the word crisis (WeiJi) is composed of two characters.  One is danger and the other is opportunity.  She masterfully weaved and articulated her speech around this topic and explained how the current difficulties in China are creating a crisis but it is in reality an opportunity to improve dramatically and excel into to the future.  So what appears as danger today is in reality an opportunity to make a dramatic leap forward in food safety.

Perhaps we can all learn from the word WeiJi (crisis) and remember that a crisis is only a hidden opportunity.

Technorati Tags: Noon International, weiji, China, food safety, crisis

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More on Trader Joe’s decision to discontinue sales of single ingredient foods produced in China.  Today I read in http://www.arcamax.com/businessnews/s-247137-479367 and http://cbs2chicago.com/business/trader.joes.chinese.2.409777.html that TJ’s has made the decision to phase out single ingredient products made in China because of consumer pressure.  They will continue to sell multi ingredient products that may contain products from China, meaning they don’t have to disclose that it contains product of China because it is below X percent of the total value of the item.  TJ’s goes onto say that they believe the current single ingredient products meet their high quality specifications but the consumer has voiced their opinion, and they listened.

We must assume that the consumer is making this statement based on food safety concerns and not making a political statement.  If this is the case, then why would TJ’s still allow China products in multi ingredient products?  This is not logical.  Why would the consumer feel safe eating a multi ingredient product that contains some percent of product from China but not feel safe from eating a single ingredient product from China?

All the multi ingredient items that contain some product from China will not be marked or have a warning “this contains some products of China” so how can the consumer make  rational choices?  If TJ’s is stopping single ingredient then they should stop multi ingredients products that contain products from China.  This would be consistent and logical.  But only stopping one (single) and not the other (multi) implies that one is safe and the other is not.

What if TJ’s stopped importing broccoli packed in China but uses broccoli in a mixture with other vegetables from other countries.  It’s the same broccoli so how can one be seen as safe while the other is not?

TJ’s, in my opinion, must be consistent if they want kudos, otherwise they will end up being fools.  Either stop all products from China or don’t stop any.

In my opinion, I believe that TJ’s product from China does meet their specifications because I have seen some of the facilites and know their standards.  The key is to know your supplier, and educate the customer.

In the end the consumer is right.  Why don’t Whole Foods customers have the same concerns?

Technorati Tags: Noon International, Trader Joe’s, China, Whole Foods, food safety

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Predictions From Chinese Farmers Almanac for Agriculture in 2008.

The Year of the Rat 2008 is predicted  to bring poor  quality agriculture crops this year.  They are predicting flooding in the spring and summer and drought during the autumn and winter.  This coming year will bring a higher percentage of mice  and insect infestation.  (Also this will be a bad year for infectious disease for  human beings.)

In general the Year of the Rat will be below normal for China’s agricultural products.

Technorati Tags: Noon  International, Year of the Rat, China, agriculture

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It appears that Beijing CIQ (China Inspection and Quarantine Bureau) are enforcing new rules on the Fujian CIQ.  This new procedure is expected to last about 2 months.

The latest new regulation from the CIQ in Zhangzhou, Fujian applies to the inspection procedures as follows:

1. Inspection by the CIQ can be done only after all the products are packed  in their export cases.
2. The factory must perform all the microbiological and pesticide testing before the CIQ inspection.
3. The factory can only apply for the CIQ inspection only after all testing documentation is completed.
4. Then the CIQ inspectors will sample and test microbiological and pesticide residue analysis of the final products.
5. CIQ will sign export documentation after all test from CIQ are sampled and approved.

The new regulations implemented will have an impact on exports and will delay shipments even further.  Instead of 14 days we are now looking at about 25 days minimum between receipt of an order and shipment.

Buyers and shippers must now plan for shipments further out.  JIT is no longer possible because of the delays getting CIQ approval and documentation. 

Technorati Tags: Noon International, CIQ, China

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It appears that Trader Joe’s has made the decision to stop selling any food items that say “Product of  China”.  What this means is that any food products packaged in China will no longer be sold in Trader Joe’s stores.  The start date is supposedly January 1, 2008.

However from what I am hearing they will still allow Chinese ingredients repacked in the USA or other country.  The key is if the value added is greater than the China ingredient it can take on a different origin.  For example if packed in the USA and one ingredient is of Chinese origin but the balance is of USA then it can bear the “Product of USA” on the package.

What is the point?  Will they advertise that they don’t carry and food made in China?  While some vegetable blends may still have Chinese ingredients.  Do they believe that the consumer is naive?  Do they take us for fools? Why the deception?

If the consumer doesn’t want product of China then I would assume they also don’t want it in a blend that doesn’t have to state that some small percentage is from China.

The way I see it is either you’re pregnant or you’re not, their is no in between.

 (As an importer of Chinese vegetables we only work with reputable factories and don’t have any problems with our vegetable sourcing.)

Technorati Tags: Noon International, Trader Joe’s, China

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Today’s article from the Washington Post highlights a meeting between the FDA and their counterparts in China regarding food safety.  It goes on to say that they are both very close to an agreement which they expect to finalilze by December on improving China food safety.  In the article it mentions Rep. Rosa DeLauro (D-Conn) and Sen. Richard J. Durbin (D-Ill) as frequent critics of China’s food safety.  Why do we point the finger at China?  Are we trying to use them as the scapegoat?  Why is the importer  not responsible?  The passage of laws is only a reactive measure and what is needed is a proactive measure.  We need a global awareness of food safety and  that  includes everybody from the US to Europe to China to …  A shift in our thinking.  A global cultural change.  A global awareness of food safety.

First as an importer of frozen vegetables and working with China for more than 2 decades it is  our responsibility to know our supplier.  We make it our mission to visit China regularly, too visit the factories, to know our suppliers.  That is where food safety starts and it ends with you and I the consumer, understanding and knowing the potential food risk, which will always be present albeit not very often. 

We cannot eliminate 100% food risk, but we can certainly work to achieve zero risk.  It all starts with knowing your supplier.

Technorati Tags: Noon International, food safety, China, FDA, DeLauro, Durbin

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The “Made in China” just won’t go away and food from China is no exception.  Today I heard and I cannot substantiate that Trader Joe’s has made the decision not to use frozen vegetables from China.  If it is true, is this decision based on consumer pressure or is this a corporate decision?  Even if they eliminated frozen vegetables from China, does it increase food safety?  No, it will not.  Food safety is not just a China problem it’s a global problem.  Just look at our previous post regarding FDA detentions, Mexico is number 1 in that category.  Have we heard anything about food products from Mexico?  Nada (nothing).

Just check the FDA recall list and see how many companies are from China (http://www.fda.gov/oc/po/firmrecalls/rssRecalls.xml).

Today in the NY Times there is an article about the Japan testing method compared to the FDA. They say it might be superior to our FDA’s methodologies.  They test more samples (10% compared to 1%) but is that the answer? No, more testing doesn’t solve the problem, it’s a reactive measure.  Okay the Japanese have a license program with China that limits the exporters, is that the answer? Maybe, but if you know your supplier is it necessary to get the license?  What if the USA importer and/or customer is doing their due diligence, would this help?  You bet. It all gets back to knowing your supplier.  Basic fundamental stuff - knowing your supplier.

Some people might find it strange that just a few years ago, imported frozen vegetables that were rejected in the USA by the  FDA for pesticides, we could re-export to Japan, who had no problems with the pesticide issue.  Japan finally woke up to pesticides and created their own “Positive List” just over a year ago.  Japans concern about food safety is due more to consumer awareness which is happening not only in Japan but globally as well.

Food safety is a global concern and just picking on one country will not solve the problem.  We all have to work together to make food safer, supplier, importers, retailers and consumers.  Awareness comes but just one step at a time.  Just remember that cigarette smoking, environment issues, MADD (mothers against drunk driving) where non issue 20, 30 or 50 years ago.

With the current consumer awareness of food safety let’s work together and create a new culture, a food safe culture, a global food safe culture.  A true win-win.

Technorati Tags: Noon  International, China, Japan, food safety, recall, culture, Trader Joe’s 

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