Key Policies, Practices and Standards for Chinese Agro-food Processing of Fruit and Vegetables Beijing, December 2004 Sociedade Portuguesa de Inovação 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector The Development History From 1949 to 1979, fruit juice products were very limited in the Chinese market. 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. 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector The Development History (cont.) China’s Vegetable Planting Area and Output: 1996-2003 Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector The Development History (cont.) China’s Fruit Output: 1990-2003 Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector The Current Situation Most of the Chinese fruit and vegetable manufacturers started their business in the 1990s. 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. With the accession of China into WTO, the issue of pesticide and chemicals residues gets more attention from processors and buyers outside China. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector The Future Development and the Challenges China is one of the biggest potential fruit and vegetable juice markets in the world. Comparison of annual per capita consumption of fruit and vegetable juice Countries Annual Consumption (Kg) China 1kg U.S.A 45kg Germany 46kg Japan 16kg Singapore 19kg World Average 7kg China: Low annual per capita consumption Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 1. Introduction of the Chinese Fruit and Vegetable Processing Sector 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 2. Administration System of Chinese Agro-Food Processing of Fruit and Vegetables China’s Administration System State Food and Drug Administration Takes 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 Health In 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 Agriculture Holds the responsibility of implementing the quality supervision of Agro-food and Green Food. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 2. Administration System of Chinese Agro-Food Processing of Fruit and Vegetables China’s Administration System (cont.) 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 Commerce Responsible 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 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 Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 3. Legislative Regulations of Chinese Agro-Food Processing of Fruit and Vegetables Food Hygiene Law Principles (as an example) Principle of supervision by government The government establishes a system of food hygiene supervision. Principle of thorough supervision Any 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. Most of the above laws except Food Hygiene Law do not only regulate the food 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 3. Legislative Regulations of Chinese Agro-Food Processing of Fruit and Vegetables 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards 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 Chemical o Hygiene Testing Methods Testing Rule Sign and Label Package, Storage and Transport Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards Execution of 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 China reflects the poor implementation of the standards by some SMEs in this sector. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards Chinese Certification System of Greed Food 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”. 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards Chinese Certification System of Organic Food and Non-environmental Pollution Food 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”. 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards 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 allowed According to production standard of organic agriculture The transition period is necessary in terms of changing the common production to the organic production. Class AA Not allowed Organic producing standard Environmental requirements of NY/T3912000 Class A Limited quantity and variety NY/T392~394 and codes of practice Environmental requirements of NY/T392000 Green food Nonenvironmental pollution food Can be used according to the standards Environmental requirements of GB/T1840.1-4-2001 Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 4. Chinese Agro-food Processing of Fruit and Vegetables: Regulating Standards The Challenges Facing the Improvement of Chinese Standards 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 share the responsibility of the standard regulation, leading to inconsistences, ambiguities and incompatibilities on the fruit and vegetable process industry. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Market Access Policies 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Shelf Life Policies In 2000, new food shelf life standards were established for the food products: • 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Good Manufacturing Practice (GMP) Policies 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.. 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables HACCP Policies 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Labeling 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Environment Risk Assessment Policies The environment impact assessment law (Sept. 1st, 2003) has great impact on the fruit and vegetable processing enterprises. At present processing production regulations On December 8th, 1998 China Packaging Technology Association and China Packaging Parent Company set down the instructions for reusing package materials and call-back. the environment risk assessment system for fruit and vegetable has not been set up in China. However, fruit and vegetable and processing must follow the relevant Chinese environmental and avoid environmental pollution. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 5. Analysis of China’s Key Policies on Agro-food Processing of Fruit and Vegetables Cleaner Production 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. Responding to S&T co-operation with China – The Development of a Cross-Border Agro-Food Processing S&T Platform December 2004 Porto - Portugal Edificio “Les Palaces” Rua Júlio Dinis, no. 242, 208 4050-318 Porto, PORTUGAL Tel: 22 607 64 00 Fax: 22 609 91 64 spiporto@spi.pt Beijing – P.R.China XueYan Building A108, Tsinghua Science Park Tsinghua University, Beijing 100084 P.R. 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