North America: Product safety – (Poorly) made in China

Source: www.ethicalcorp.com

American consumers are demanding to know the products they buy from China are safe, after a spate of health scares has put corporate sourcing policies in the spotlight

Chemically tainted pet food, lead-laden toys, bacteria-contaminated spices and fatally defective tyres – these are just some of the imports to have upset US consumer confidence in goods made in China this year.
With more than $288 billion in Chinese goods imported into the US each year, companies big and small know that one bad ingredient, part or product could spell disaster for their brands.
Food companies are particularly under threat, as consumers and regulators come to realise just how much the industry depends on China for basic ingredients. Thirteen per cent of the US diet, including 80% of its vitamin C, 50% of its garlic and 40% of its apple juice, is sourced from China.
Although recent scares have seen lawmakers calling for tougher trade restrictions, business analysts say pressure on big brands from Wall Street and the buying public can do more to promote safe products than trade barriers would.

Responsible sourcing

Questions of ethical and legal responsibility certainly have companies scrambling to show Wall Street and consumers they are sourcing responsibly and thoroughly policing their supply chains.
General Mills, the second largest breakfast cereal maker in the US with brands including Cheerios, is one of many food importers to step up supervision of local vendors and conduct more unannounced third-party audits of manufacturers in China. Kellogg, the nation’s largest cereal maker, says it has increased its use of outside services that scrutinise Chinese suppliers and has identified alternate suppliers for vital ingredients.
Toys R Us, which has almost 600 US stores, has hired two new executives to oversee product safety and procurement and has upped its product safety spending by 25% over the past six months.
Domestic ingredient wholesalers are also stepping up their monitoring and testing. Woodland Foods told National Public Radio it now tests every container of material it imports and has expanded the number and types of contaminants screened for. The company says its Fortune 500 clients are also taking a greater interest than ever in its safety inspection procedures.
China, for its part, has closed more than 180 food plants over safety concerns and executed the former head of its food and drug agency for taking bribes, in an effort to stave off growing concern over the safety of its exports. The country’s government is quick to point out that 99% of Chinese food exports have met US quality standards in the past three years.

But the “Made in China” label is causing hesitation and concern among consumers, and has those manufacturers that are able touting “China-free” status. For shoppers, finding the lowest price has suddenly taken a back seat to product safety.