USMEF Watches Potential Fallout from Chinese Milk Contamination | USMEF conti...

USMEF Watches Potential Fallout from Chinese Milk Contamination

USMEF continues to monitor possible fallout from the unfolding contaminated milk crisis in China. USMEF-Beijing reports that the involvement of top leaders in the issue indicates a high level of concern over the state of the country’s food-safety infrastructure. In a statement made in New York Tuesday, Premier Wen Jia Bao was quoted as saying China will “draw a lesson” from the contaminated milk scandal and that the incident could have serious social implications. China has also announced the dispatch of over 1,600 teams to inspect all production facets of China’s dairy industry.

USMEF representatives attended a China International Food Safety & Quality Conference in Beijing this week, organized by China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The milk powder incident was a major topic of discussion by international and domestic speakers during the two day event. AQSIQ’s Ministerial level head, Li Chang Jiang, resigned from his post to take responsibility for the incident just two days before the conference convened this past Wednesday. Senior AQSIQ officials were mostly absent from the conference’s opening ceremony, but Mr. Xiang Yu Zhang, the agency’s chief inspector, stated that China’s food-safety system was “behind” that of other countries, and stated a willingness to cooperate with other nations to strengthen the country’s food-safety infrastructure. Former USMEF Chairman Dennis Erpelding delivered an address at the conference, highlighting the value of international food-safety guidelines in a world where the importance of the international meat trade to consumers is growing.

Fallout from the milk scandal escalated this week with a growing number of nations banning Chinese dairy products. On Thursday, the European Union recalled and banned imports of all Chinese manufactured baby food after finding contaminants in products on store shelves. Official Chinese statements reported midweek that 53,000 infants had been affected within China, with four deaths. Thirteen thousand children remain in hospitals throughout China. USMEF believes there will be further repercussions on China’s current food-safety infrastructure, as more revelations unfold indicating that responsible officials and manufacturers were aware of possible melamine contamination of milk as far back as last year. According to media reports, national food-safety officials only initiated widespread investigation and actions after a plea by New Zealand’s Prime Minister. A New Zealand company, Fonterra, is a major investor in Sanlu, a leading Chinese milk producer whose select dairy products have been found to contain high concentrations of melamine.

“There are potential economic and institutional implications of the crisis,” said Joel Haggard, USMEF’s senior vice president for the Asia Pacific region. “Although speculative at this point, there could be more changes in the scope of food-safety responsibilities of the relevant Ministries and organizations that have food-safety oversight functions.”

USMEF is also monitoring the possible impact on the red meat production sector, noting that dairy bull calves are a significant source of cattle for the country’s beef supply. According to USMEF-Beijing’s North China Representative Donald Song, “We see a mobilization of effort among China’s ministries to deal with the present crisis. Our main contacts are very busy at the present time.”

AES Means Big Changes for Exporters

Since the new Automated Export System (AES) requirement will mean big changes, members should contact USMEF (303-623-6328, Technical Services) or the Agriculture Transportation Coalition (AgTC) with any concerns, especially with the following:

• The AES mandates the electronic filing of shipping information 24 or more hours in advance of loading onto the carrier. Does this timeframe pose problems or alter the usual shipping protocol?
• USMEF notes that the electronic worksheet for AES filing requires the inclusion of seal numbers and container numbers, and it is unclear if this is required or optional.

• Exporters should review the electronic worksheet now to determine if any of the fields will cause problems.
• Carriers are changing their shipping protocols, including the requirement for documentation to be completed 24 hours in advance of the AES and penalty fees for late filing.

The AgTC will be meeting with AES officials next week to discuss any issues raised by exporters. 

USMEF participated in an AgTC conference call yesterday. Details are online: AgTC Actions to Clarify AES Rules and Carrier Requirements. Registration for the AgTC’s Mid-Year Conference is also online.

FSIS Makes Changes to Online Library

Members should refer to the online FSIS Export Library  for recent updates on the regulations for export to Canada and the approved plant lists for Russia and Australia.

The South Korean export requirements include “additional plants added to the “Official List of Eligible Bovine Suppliers” for Korea on September 24, 2008.” The list can be found on the AMS Web site.

USMEF Watches Potential Fallout from Chinese Milk Contamination

USMEF continues to monitor possible fallout from the unfolding contaminated milk crisis in China. USMEF-Beijing reports that the involvement of top leaders in the issue indicates a high level of concern over the state of the country’s food-safety infrastructure. In a statement made in New York Tuesday, Premier Wen Jia Bao was quoted as saying China will “draw a lesson” from the contaminated milk scandal and that the incident could have serious social implications. China has also announced the dispatch of over 1,600 teams to inspect all production facets of China’s dairy industry.

USMEF representatives attended a China International Food Safety & Quality Conference in Beijing this week, organized by China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The milk powder incident was a major topic of discussion by international and domestic speakers during the two day event. AQSIQ’s Ministerial level head, Li Chang Jiang, resigned from his post to take responsibility for the incident just two days before the conference convened this past Wednesday. Senior AQSIQ officials were mostly absent from the conference’s opening ceremony, but Mr. Xiang Yu Zhang, the agency’s chief inspector, stated that China’s food-safety system was “behind” that of other countries, and stated a willingness to cooperate with other nations to strengthen the country’s food-safety infrastructure. Former USMEF Chairman Dennis Erpelding delivered an address at the conference, highlighting the value of international food-safety guidelines in a world where the importance of the international meat trade to consumers is growing.

Fallout from the milk scandal escalated this week with a growing number of nations banning Chinese dairy products. On Thursday, the European Union recalled and banned imports of all Chinese manufactured baby food after finding contaminants in products on store shelves. Official Chinese statements reported midweek that 53,000 infants had been affected within China, with four deaths. Thirteen thousand children remain in hospitals throughout China. USMEF believes there will be further repercussions on China’s current food-safety infrastructure, as more revelations unfold indicating that responsible officials and manufacturers were aware of possible melamine contamination of milk as far back as last year. According to media reports, national food-safety officials only initiated widespread investigation and actions after a plea by New Zealand’s Prime Minister. A New Zealand company, Fonterra, is a major investor in Sanlu, a leading Chinese milk producer whose select dairy products have been found to contain high concentrations of melamine.

“There are potential economic and institutional implications of the crisis,” said Joel Haggard, USMEF’s senior vice president for the Asia Pacific region. “Although speculative at this point, there could be more changes in the scope of food-safety responsibilities of the relevant Ministries and organizations that have food-safety oversight functions.”

USMEF is also monitoring the possible impact on the red meat production sector, noting that dairy bull calves are a significant source of cattle for the country’s beef supply. According to USMEF-Beijing’s North China Representative Donald Song, “We see a mobilization of effort among China’s ministries to deal with the present crisis. Our main contacts are very busy at the present time.”

AES Means Big Changes for Exporters

Since the new Automated Export System (AES) requirement will mean big changes, members should contact USMEF (303-623-6328, Technical Services) or the Agriculture Transportation Coalition (AgTC) with any concerns, especially with the following:

• The AES mandates the electronic filing of shipping information 24 or more hours in advance of loading onto the carrier. Does this timeframe pose problems or alter the usual shipping protocol?
• USMEF notes that the electronic worksheet for AES filing requires the inclusion of seal numbers and container numbers, and it is unclear if this is required or optional.

• Exporters should review the electronic worksheet now to determine if any of the fields will cause problems.
• Carriers are changing their shipping protocols, including the requirement for documentation to be completed 24 hours in advance of the AES and penalty fees for late filing.

The AgTC will be meeting with AES officials next week to discuss any issues raised by exporters. 

USMEF participated in an AgTC conference call yesterday. Details are online: AgTC Actions to Clarify AES Rules and Carrier Requirements. Registration for the AgTC’s Mid-Year Conference is also online.

FSIS Makes Changes to Online Library

Members should refer to the online FSIS Export Library  for recent updates on the regulations for export to Canada and the approved plant lists for Russia and Australia.

The South Korean export requirements include “additional plants added to the “Official List of Eligible Bovine Suppliers” for Korea on September 24, 2008.” The list can be found on the AMS Web site.