Tag Archives: China

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Food Fraud With Nasty Results

By Susanne Kuehne
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Susanne Kuehne, Decernis

Global food supply chains are complex and therefore quite vulnerable to errors or fraudulent activity. A company in Chile repackaged and falsely labeled cheap raspberries from China, reselling them as top-level organic Chilean raspberries in Canada. These raspberries were linked to a norovirus outbreak in Canada, sickening hundreds of people. A whistleblower complaint helped to uncover this fraudulent scheme that posed a significant risk to human health.

Raspberry, Decernis
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

Resource

  1. Sherwood, D. (October 6, 2020). “How a Chilean raspberry scam made its way into Canada leading to a norovirus outbreak”. Reuters.
Susanne Kuehne, Decernis
Food Fraud Quick Bites

Food Fraud, Fruit Fraud

By Susanne Kuehne
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Susanne Kuehne, Decernis
Lemon
Find records of fraud such as those discussed in this column and more in the Food Fraud Database.
Image credit: Susanne Kuehne

Even unprocessed fruit can be a target for food fraudsters. Fraudulent fruit does not only damage a company’s brand, but it also may have pesticide and other residue levels above the permitted limit. Counterfeit branding and packaging was used in exports of 2 tons of lemons from China. It is not the first time that such fraud happened and the affected company won a lawsuit earlier this year. To prevent such mislabeling in the future, the company finally registered its brand with Chinese authorities.

Resource

  1. Phil Taylor (August 6, 2020) “Counterfeit Unifrutti lemons seized in China”. Securing Industry.

 

Susanne Kuehne, Decernis
Food Fraud Quick Bites

A Case Of Fake Wine Classification

By Susanne Kuehne
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Susanne Kuehne, Decernis
Bordeaux, fraud
Find records of fraud such as those discussed in this column and more in the Food Fraud Database.
Image credit: Susanne Kuehne

Based on a classification system that was established more than 150 years ago, wines from the world-renowned region of Bordeaux can fetch high prices and enjoy a high degree of recognition and popularity. The Conseil Interprofessionnel du Vin de Bordeaux (CIVB) and Chinese authorities set a precedent by sentencing a wine supplier for offering fake “Bordeaux” wines. Nearly 10,000 bottles of mislabeled “Bordeaux” wines were seized, and the guilty judgment included fines and a suspended prison sentence.

Resource

  1. Taylor, P. (June 30, 2020). “Bordeaux wine body wins key counterfeit lawsuit in China”. Securing Industry.
Coronavirus, COVID-19

China Stops Poultry Imports From Tyson Foods Due to COVID-19 Concerns, Clamping Down on Inspections

By Food Safety Tech Staff
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Coronavirus, COVID-19

On Sunday China’s General Administration of Customs announced that it would be suspending imported shipments of poultry from a Tyson Foods plant based in Springdale, Arkansas. The suspension is reportedly due to an outbreak of coronavirus cases at the facility.

On Friday Tyson Foods announced the results of COVID-19 testing conducted at its facilities in northwestern Arkansas (Benton and Washington counties): 3,748 employees were tested; 481 tested positive, and 95% were asymptomatic.

“The results across our Northwest Arkansas facilities, and the country more broadly, reflect how much is still unknown about this virus, which is why Tyson is committed to providing information to our local health officials and enhanced education to our team members,” said Tom Brower, senior vice president of health and safety for Tyson Foods stated in a company press release. “Through our inclusive approach to large-scale testing, we are finding that a very high level of team members who test positive do not show symptoms. Identifying asymptomatic cases helps the community, since other testing is often limited to people who feel unwell.”

Meanwhile, it has also been reported that officials in China want the inspection process of overseas shipments ramped up, as they suspect that COVID-19 could be present on imported frozen food products.

Over the weekend PepsiCo’s Beijing operations were suspended following confirmed coronavirus cases at its chips production facility.

Last week new cases of the coronavirus were reported in Beijing, leading to concerns of a resurgence of the virus. Some new cases have been linked to the Xinfadi Market, a wholesale food market.

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Milking The Business

By Susanne Kuehne
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Susanne Kuehne, Decernis
Cow, milk, adulteration
Find records of fraud such as those discussed in this column and more in the Food Fraud Database. Image credit: Susanne Kuehne.

Milk has enjoyed increasing popularity in China, however, the milk supply chain is still vulnerable to fraud throughout the country. Milk can be adulterated in variety of ways, from dilution with water to the addition of carbohydrate- or nitrogen-based and protein-rich adulterants as well as a variety of unapproved (sometimes hazardous) additives. This study used Fourier transform-infrared spectroscopy to determine fraud in 52 ultra-high-temperature commercial milk samples. Twenty-three percent of the samples turned out to be adulterated and some of the samples were even flagged for multiple issues.

Resource

  1. Yuzheng Y., et.al. (June 1, 2020) “Prevalence of Milk Fraud in the Chinese Market and its Relationship with Fraud Vulnerabilities in the Chain.” MDPI.
Kevin Kenny, Decernis
FST Soapbox

COVID-19 Supply Chain Disruptions on the Horizon

By Kevin Kenny
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Kevin Kenny, Decernis

On the one level, it’s still too early to see full supply chain stoppages, other than growing port and customs delays. While one does not need a crystal ball to see that significant issues are already on the horizon, it takes time for both positive and negative supply impacts to wend their way through the chain.

My company, Decernis, a FoodChain ID Company, provides a complete regulatory intelligence software suite that covers more than 100,000 global regulations in 219 countries, and as such, we have a unique global perspective on how the pandemic is going to affect the supply chain.

Among the countries to watch is India, which imposed a nationwide 21-day shutdown on March 25 and thus far is the tightest lockdown in the world. In the large cities, the lack of public transportation has forced newly unemployed to walk home, often over a period of days, to their home villages. This creates a challenge for the economy because India depends on seasonal migrant and factory workers.

Unlike most countries, pharmaceutical and supplement manufacturers, as well as food processors, are entirely shut down. While farm operations and their supply chains are exempt, there is no harvest without migrant labor. Moreover, truckers transporting frozen goods often are stopped en route due to uneven permit enforcement across states. Add to this the problem of export foods stuck in containers or ports with limited market access, combined with import/export restrictions, and a crisis is at hand.

And, while the Indian government has not banned rice exports, India’s Rice Exporters Association effectively suspended exports because of dramatic labor shortages and logistical disruptions. So, while buyers exist, there is no practical way to harvest, process or ship those exports.

Combine the lack of migrant agricultural workers with the closing of restaurants and schools in many countries and economies are left with a steep drop in demand. As a result, unprocessed food including pork, eggs, milk and early-harvest fruits and vegetables are being destroyed or “tilled under.”

Countries whose leadership is turning a blind eye to the pandemic (i.e., Brazil) will ultimately see a more significant impact.

Another major player to watch is China, where the tariff crisis initially exposed supply chain vulnerabilities. Combined with the current pandemic, businesses now see that sourcing can often be a more substantial factor than price.

Prior to COVID-19, the United States, among other countries, initiated a trend toward blatant economic nationalism, which significantly accelerated this year. In an effort to protect their populations and national security, countries (i.e., Cambodia, India, Kazakhstan, Russia, Serbia and Ukraine) halted the export of vital commodities. As a result, critical supplies have been diverted to more developed countries that can outbid and pay a higher price, leading to food security risks in smaller and weaker markets.

These factors will trigger a rethinking of supply chains in the medium and long term. The cost savings realized in China, India, Vietnam and Thailand will be weighed against the threats to supply chain stability. The result may be a subtle new form of supply chain nationalism, where companies prefer more reliable local production to lower-cost, more vulnerable foreign production. The recent sourcing trend for large multinationals to partner with fewer, trusted providers could reverse once the dust settles from this pandemic.

The decrease in air cargo capacity (due to the grounding of passenger aircrafts) has also played a significant role in supply chain disruption and will lead to dramatic short-term increases in the cost of air freight.

Last, but certainly not least, will be the fallout from obvious bankruptcies. As an early indicator, 247,000 Chinese companies declared bankruptcy in the first two months of 2020, with many more closures expected.

Obvious candidates include movie theaters, airlines, cruise ships, retailers, and hotels, but any company caught carrying a large debt load is also endangered. Pharma companies and those in oil, gas and petrochemicals will also be affected by a perfect storm of oil market collapse.

On a positive note, any supplement (i.e., Vitamin B, C and D) food commodity (i.e., blueberries, oranges) and processed food products (i.e., juices, yogurts) perceived to have immunity-boosting potential will likely see a short and long-term boost in sales. Botanicals, however, may soon have significant new sourcing problems.

As they deal with consequences of this pandemic, global companies will need to strategize for building a more durable and flexible supply chain. These unprecedented times are sure to spark more innovation and technological growth to address the challenges industry is facing.

Susanne Kuehne, Decernis
Food Fraud Quick Bites

Finding the Root Cause for Starch Fraud

By Susanne Kuehne
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Susanne Kuehne, Decernis
Food fraud, cassava starch
Find records of fraud such as those discussed in this column and more in the Food Fraud Database.
Image credit: Susanne Kuehne

Due to its lower cost, cassava starch is a common adulterant in higher priced starches, such as for potato and wheat. Tests with droplet digital polymerase chain reaction ddPCR in China uncovered that over 30% of sweet potato starch samples, 25% of cornstarch samples and 40% of potato starch samples were adulterated with cassava starch. Besides the economic impact, this kind of fraud also poses a risk to consumers allergic to cassava.

Resource

  1. Chen, J., et. al. (February 26, 2020). “Identification and quantification of cassava starch adulteration in different food starches by droplet digital PCR”. PLOS One.
Karen Everstine, Decernis
Food Fraud Quick Bites

Fraud in Alcoholic Beverages

By Karen Everstine, Ph.D.
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Karen Everstine, Decernis

Recently, a group of researchers published a paper that documented unique chemical “fingerprints” left by whiskies after evaporation that could be used to identify the origin (specifically, American whiskeys in relation to Scotch and Irish whiskies.) Authentication of value-added label attributes in wine and spirits is important for protection of producers, brands and markets. Other examples include varietal fraud and geographic indication misrepresentation with wines and counterfeit production (intellectual property infringement) of a variety of spirits.

Food Fraud, wine
The Food Fraud Database has captured 220 incidents of fraud involving all alcoholic beverages and 63 specifically involving wines. (Source: Grape Wall of China)

Unfortunately, alcoholic beverages are also prone to fraud involving the addition of substances that can cause illness or death. This often happens at the local level, with the production of “moonshine” or other unlicensed spirits. Some of the substances used have included methanol, isopropyl alcohol and industrial-grade alcohol.
One notable incident from the 1980s had global implications and severe market effects. Diethylene glycol was added to Austrian wines, resulting in recalls around the world when the adulteration was detected. Fortunately, no illnesses or deaths were reported. Just a year later, methanol added to Italian wine caused both hospitalizations and deaths. More recently, incidents involving the addition of methanol to spirits have caused deaths in India, China and Malaysia.

Authentication and traceability for alcoholic beverages, and specifically wines, lend themselves to technology-enabled solutions such as blockchain. On a lighter note, take a look at some of the labels documented by reporters covering the wine market in China. In a high value marketplace such as the wine business, there is no end to creativity in labeling.

Kroger

Kroger to Sell Groceries in China Via Alibaba

By Food Safety Tech Staff
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Kroger

The Cincinnati-based supermarket chain Kroger has entered into a pilot partnership with Alibaba’s Tmall Global platform to sell its “Our Brands” products online to consumers in China. This platform is China’s largest business-to-consumer marketplace, and helps retailers that don’t have physical operations in the country build virtual storefronts and send products to China.

The pilot will start with Kroger’s Simple Truth products, which are positioned as natural and organic, and are also the second-largest brand sold in Kroger stores. This year alone the brand generated more than $2 billion in sales, earning it the title of largest natural and organic brand in the United States, according to Kroger.

“Kroger is the world’s third largest retailer by revenue–$122.7 billion in sales in 2017,” said Yael Cosset, chief digital officer at Kroger in a news release. “We are creating the grocery retail model of the future by focusing on digital and technology.”

The partnership also supports the company’s “Restock Kroger” pillars of redefining the grocery customer experience by elevating “Our Brands” and creating customer and shareholder value through promoting top line growth via alternative revenue streams.

American beef

United States and China Finalize Details on Beef Exports

By Food Safety Tech Staff
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American beef

On Tuesday Secretary of Agriculture Sonny Perdue announced the posting of technical documents pertaining to the shipments of U.S. beef to China. Last month the United States and China reached a trade agreement that allowed the export of American beef to China, where the meat has been banned since 2003.

The USDA Agricultural Marketing Service posted the requirements for the Export Verification program for U.S. companies shipping to China. The program will allow packers to apply for approval to export to China. In addition, FSIS updated its online Export Library with China’s requirements for certifying U.S. beef.

According to the USDA, China’s beef imports have increased from $275 million in 2012 to $2.5 billion in 2016. As the world’s largest beef producer, the United States generated more than $5.4 billion in global sales last year.