Sociedade Portuguesa de Inovação Beijing, December 2004 Key Policies, Practices and Standards for Chinese Agro-food Processing of Fruit and Vegetables

Sociedade Portuguesa de Inovação

Beijing, December 2004

Key Policies, Practices and Standards for Chinese Agro-food Processing of Fruit and

Vegetables

Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T PlatformDecember 2004

Agenda

1. Introduction of the Chinese Fruit and Vegetable Processing Sector.

2. Administration System of Chinese Agro-Food Processing of Fruit and Vegetables.

3. Legislative Regulations of Chinese Agro-Food Processing of Fruit and Vegetables.

4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards.

5. Analysis of China’s Key Policies on Agro-Food Processing of Fruit and Vegetables.


The Development History

1. Introduction of the Chinese Fruit and Vegetable Processing Sector

From 1949 to 1979, fruit juice products were very limited in the Chinese market.

After 1990, the industry achieved rapid development. In 2003, the output of fruit was more than 70 million tons. 450 million tons of vegetable were produced. The output of the fruit and vegetable juice reached 3.1 million tons.

In the 1980s, the reform and open policy gave farmers the freedom of choosing the crops and plants they wanted to cultivate. In 1989, the output of fruit juice reached 100 thousand tons.


China’s Vegetable Planting Area and Output: 1996-2003

The Development History (cont.)



China’s Fruit Output: 1990-2003

The Development History (cont.)



More than 60% of manufacturers’ equipments are integrated with the internationally prevalent technology of the 1990s, e.g. enzyme application, ultra filtration, activated carbon absorption, recovery of natural fruit aromas, etc..

Many process companies own their own material orchards, encouraged by government financial aid and other measures.

The Current Situation

With the accession of China into WTO, the issue of pesticide and chemicals residues gets more attention from processors and buyers outside China.

Most of the Chinese fruit and vegetable manufacturers started their business in the 1990s.



The Future Development and the Challenges

China is one of the biggest potential fruit and vegetable juice markets in the world.

Annual Consumption (Kg)

Countries

7kgWorld Average

19kgSingapore

16kgJapan

46kgGermany

45kgU.S.A

1kgChina

Comparison of annual per capita consumption of fruit and vegetable juice

China: Low annual per capita consumption



The Future Development and the Challenges (cont.)

Challenges on the on-going development of the industry sector

No authorative quality inspection standard of fruit and vegetable juice in China.

Chinese juice producers need to strenghten their own technical capabilities.

Still a lack of high quality fruit and vegetables.



2. Administration System of Chinese Agro-Food Processing of Fruit and Vegetables

China’s Administration System

State Food and Drug AdministrationTakes charge of the general administrative responsibility of food safety issues, i.e. drafting the regulations and laws related to food, supervising the publication of food safety information and other relevant activities, etc..

Ministry of HealthIn charge of the legislation related to the food hygiene standards.Takes the responsibility of drafting, editing and amending the national food hygiene standards.

Ministry of AgricultureHolds the responsibility of implementing the quality supervision of Agro-food and Green Food.


General Administration of Quality Supervision, Inspection & Quarantine (AQSIQ)In charge of all the affairs related to product quality in China: Chinese food market access regulation, food and cosmetics hygiene regulation, etc.

State Administration for Industry and CommerceResponsible for the supervision of the Agro-food product in the sales period and protection of the consumers’ rights against the fake and low quality food products.

2. Administration System of Chinese Agro-Food Processing of Fruit and Vegetables

China’s Administration System (cont.)


3. Legislative Regulations of Chinese Agro-Food Processing of Fruit and Vegetables

China’s legislative regulation framework: key laws

Product Quality Law of the People’s Republic of China ( P.R.C )

Food Hygiene Law of P.R.C

Trademark Law of P.R.C

Law of P.R.C on Import and Export Commodity Inspection

Law of P.R.C on the Protection of Consumers' Rights and Interests

Law of P.R.C on the Entry and Exit Animal and Plant Quarantine

Law of Sanitary and Phytosanitary of Import and Export propagation


Food Hygiene Law Principles (as an example)


Most of the above laws except Food Hygiene Law do not only regulate thefood issues, also cover the broad range of the other products. We take Food Hygiene Law as an example to examine the underlying legislative

principles of these laws.

Principle of supervision by governmentThe government establishes a system of food hygiene supervision.

Principle of thorough supervisionAny person and organizations engaged in food production or marketing within the territory of P.R.C must obey this Law.

Principle of supervision by society The government encourages and protects the social supervision on food hygiene exercised by public organizations and individuals.


Food Hygiene Law Requirements


1. The qualified Food should be non-toxic and harmless, conform to proper

nutritive requirements and have appropriate sensory properties such as colour,

fragrance and flavour;

2. Special requirements for the infants and the pre-school children;

3. Food must not contain any medicinal substances, with the exception of those

materials that traditionally serve as food and medicine and are used as raw

materials, condiments or nutrition;

4. Hygiene requirements for food additives;

5. Requirements for containers, packaging and equipment of food.


General Introduction of Chinese Standards

Chinese standards on food can be divided into four levels: national standards, industrial standards, local standards and enterprises standards;

They can also be classified as: compulsory standards, recommendation standards and technical instructive files.

A third method of categorization is dividing them as product quality standards, production standards, inspection standards, etc..

The food product quality standards in China normally include the following content such as in Quality Standard of the Fruit Juice (NY/T 434-2000):

Range Cited Standard Requirement

o Sensory o Physical and Chemicalo Hygiene

Testing Methods Testing Rule Sign and Label Package, Storage and Transport

4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards



Standards are implemented effectively by large and medium enterprises, foreign enterprises and joint ventures.

A lot of small and medium enterprises are not able to implement the national standards due to their underperforming technical capabilities and shabby equipments.

The frequency of food safety accidents in Chinareflects the poor implementation of the standardsby some SMEs in this sector.

Execution of Standards


The Green Food certification system is regulated by Ministry of Agriculture. The “Green Food” logo (see right) can be printed in the package of the food certificated as “Green Food”.

Chinese Certification System of Greed Food

The Green food standard system includes two classes of standards: Class A and Class AA.

For Class A Green Food, it is allowed to use the limited chemosynthetic fertilizer and pesticide during the production of the food.

But for Class AA Green Food, the use of chemosynthetic fertilizer, pesticide, animal medicine, feed additive, food additive and other substances harmful for the environment and the human health is forbidden.



The Organic Food system is regulated by the State Environment Protection Administration. In 1995, it established the “Rules of Organic Food Labelling” and the “Technical Code of Organic Food Production and Processing”.

Chinese Certification System of Organic Food and Non-environmental Pollution Food

The Non-environmental Pollution Food is certified and regulated by the Ministry of Agriculture. According to the Administration rule of Non-environmental Pollution Agro-food (April 29th, 2002), the certification can be classified into environment certification and product certification.



Comparison of Chinese Standards of Green Food, Organic Food and Non-Environmental Pollution Agro-Food

Utilization of the chemosynthetic

fertilizers and pesticides

Production Environment

(GB18407.1 ～ 4-2001)

Organic food Not allowedAccording to

production standard of organic agriculture

The transition period is necessary in terms of changing the common production to the

organic production.

Greenfood

Class AA

Not allowedOrganic producing

standardEnvironmental requirements of NY/T391-

2000

Class ALimited quantity

and varietyNY/T392 ～ 394 and codes of practice

Environmental requirements of NY/T39-2000

Non-environmentalpollution food

Can be used according to the

standards

Environmental requirements of GB/T1840.1-4-2001



Compared with the developed countries, Chinese current legislation systems related to food safety are not systematic and comprehensive.

Chinese standards on fruit and vegetables in the fields of production, processing and distribution are less developed than in the areas of the product standards.

Several ministries and agencies sharethe responsibility of the standard regulation,leading to inconsistences, ambiguities and incompatibilities on the fruit andvegetable process industry.

The Challenges Facing the Improvement of Chinese Standards



5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables

To prevent severe alimentary toxicosis a Market Access System was established by the General Administration of Quality Supervision, Inspection & Quarantine (AQSIQ) in July 2002. By the end of August 2003, more than 7,400 food manufacturers have passed market access evaluation.

The local quality supervision bureaus at the county level are responsible for the market access supervision in their administrative area.

If the company meets the requirements set by AQSIQ, it is conferred a “manufacture permission certificate” and a logo of “QS” can be labelled in the package of the food product. The food with this logo is permitted to be sold in the market.

Market Access Policies


• Can of fruit and vegetable: 15 months;

• Fruit and Vegetable juice in ring-pull can and glass bottle: 6 months;

• Fruit-flavour carbonated drinks in glass bottle: 3 months;

• Canned fruit-flavour carbonated drinks, ratafee and dew wine: 6 months;

• Fried dry fruit, tomato paste in iron and glass can: 12 months.

Shelf Life Policies

In 2000, new food shelf life standards were established for the food products:



From 1988 to 2002, the Ministry of Health has promulgated 20 compulsory GMP certification guidelines (one general and the others special). The special GMP guidelines focus on the canned food, glazed fruit, drinks, wine, ratafee, expanded food, healthy food and quick-frozen food, etc..

Good Manufacturing Practice (GMP) Policies

The GMP guidelines related to fruit and vegetables include: Sanitation Criteria for Can Processing Enterprises for Export. Sanitation Criteria for Drinks Processing Enterprises for Export. Sanitation Criteria for Quick-frozen instant food Processing Enterprises for Export etc.



In 2002 the Certification and Accreditation Administration developed the Regulation on Administration of HACCP Management System Certification - the government encourages exporting enterprises to pass the HACCP certification.

Government agencies also formalized a list called List of Products of Sanitary Registration for Establishments of Food for Export. The producers of these goods are obliged to implement HACCP and pass the certification.

The Food Safety Program and Activities issued by the Ministry of Health (August 14th, 2003) stipulates that all fruit and vegetable juice and can producing facilities must implement HACCP before 2006.

By the end of August 2003, 44 fruit and vegetable juice processing companies in China whose products are supplied to US market have passed the HACCP certification. Their names are linked to the official website of FDA.

HACCP Policies



General standard for the food labelling in China (GB 7718-1994) is adapted from Codex’s General Standard for the Labelling of Pre-packaged Foods (CODEX STAN 1-1991). This standard also applies to all pre-packaged foods including fruit and vegetable products in China.

The Guideline of the Logos of Organic Food, promulgated by the State Environmental Protection Agency on April 7th, 2001, stipulates that if over 95% of raw material of a processed product is certified by Organic Food Development Center (OFDC) and the product is processed and packaged in an OFDC-certified processor, the product can be labeled as "organic" and bear OFDC logo.

If less than 95% (but over 70%) of raw material of a processed product is certified, the product can not be labeled as "organic" or use the logo. But in its label, the names and proportions of the certified raw materials can be indicated.

Labeling Policies



The environment impact assessment law (Sept. 1st, 2003) has great impact on the fruit and vegetable processing enterprises.

At present the environment risk assessment system for fruit and vegetable processing has not been set up in China. However, fruit and vegetable production and processing must follow the relevant Chinese environmental regulations and avoid environmental pollution.

On December 8th, 1998 China Packaging Technology Association and China Packaging Parent Company set down the instructions for reusing package materials and call-back.

Environment Risk Assessment Policies



China government has initiated a series of

cleaner production projects since 1993. Most of China provinces, autonomous regions

and municipalities have organized the training

programs of the cleaner production since then. China's cleaner production promotion law is

effective since Jan. 1, 2003.

Cleaner Production Policies



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Thank you for your attention!

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Sociedade Portuguesa de Inovação Beijing, December 2004 Key Policies, Practices and Standards for Chinese Agro-food Processing of Fruit and Vegetables