Product of China - "Organic" Foods

Consumers who carefully check the origin of foods in their local markets, including organic foods, are more often discovering "Product of China" on the packages.

Permit me to tell you a bit about food production in China so you can better determine if there is reason for concern.

Farms operate under the strictest guidelines. Foods may not be genetically modified and must meet international food standards.

Organic tea comes from the foothills of Tibet and is fresh, tender and flavorful. On the grasslands of Inner Mongolia hormone-free beef is produced. Rice is grown from specially cultivated seeds by experts from the Jilin Academy of Agricultural Sciences and is watered by the melted mountain snow of Mt. Changbai.

These food products, which meet the highest standards are certified and stamped with a “Nation A” label.

That sounds fine, doesn’t it? Is that the organic food that's exported to the U.S.?

No, silly.

Is that the food that is available to the Chinese people?

No silly, I’ve been describing the special food supply, reserved for high level Chinese officials.

Are you now wondering why important officials in China might want and need their own secure and restricted food supply?

Are you wondering that if the absolute best, safest and finest food products are reserved for the Chinese elite, then what grade food is exported to the U.S.?

I'll address those questions.

Let me tell you about one basic food product that is made in China – cooking oil. (You may find the following information somewhat indelicate.)

Restaurants in China have waste tanks and cooking oil is siphoned from the raw sewage in those waste tanks. That tainted oil is then refined and resold.

As you would expect such an oil product contains toxins namely carcinogenic Aflatoxins. Since tainted and toxic recycled sewage oil sells for one half the price of untainted oil, oil producers in China blend the toxic oil with uncontaminated oil to increase their profit margins.

China consumes about 22.5 million tons of cooking oil per year which includes about 2 to 3 million tons of waste oil.

If this is what is produced in China for the consumption of the Chinese people, how much care do you suppose is taken with products that are exported to the U.S.?

In 2008 China experienced a problem with melamine in dairy products. (Melamine mimics protein when tested.) A few children died and hundreds of thousands suffered from kidney disorders. Recently, the problem arose again and Chinese authorities seized about 64 tons of raw dairy materials.

Farmers in China feed their dairy cows low quality feed. That inferior feed leads to low levels of protein in the milk, hence the introduction of melamine so the milk will meet the required minimum protein level.

Despite prohibitions of melamine in dairy products, dairy producers still use melamine. You can see that the authorities in China have a problem.

So, how might the authorities in China address the problem?

Hmmm…

Since it occurs to no one in China that perhaps dairy cows need better feed so their milk will contain more protein, the Chinese government has instead lowered the minimum protein level for dairy products to discourage the use of melamine.

See, the problem is all fixed.

At this point I have to admit, that as an American manufacturer I would never have conceived such a remedy for this problem, never.

The U.S. and China both produce chicken, yet China imports chicken from the U.S. and we import chicken from China. At a glance that seems ridiculous until you consider that there must be a material difference in the products from both countries.

Do you suppose that the U.S. produced chicken qualifies for a "Nation A" label?

When you shop your local market and you stumble upon food products, including organics, that are a product of China, you are also likely to notice the familiar USDA logo as well as other logos on the packaging.

Shouldn’t you, the consumer be able to find certainty and peace of mind in the certifications you find on packaging?

That would be nice but it’s not exactly possible and I’ll explain.

The USDA inspects food that is produced in the U.S. but it does not inspect imported foods. Unfortunately, the USDA certifies private inspection companies which may not be located in the U.S. Those companies may or may not certify food products from China. If they don’t inspect food in China which is possible and likely, then they rely on the certification from an inspector – wait for it – located on the farms themselves in China.

And those inspectors are paid by whom?

That inspector certifies the supposedly organic products to the middleman who certifies the supposedly organic products to the USDA and everyone’s logo and certification goes onto the packaging.

This is the process which enables everyone in the chain from the farmer in China to your grocer to pretend that a food product from China is safe and possibly organic.

This brings me to a recent email I received from a visitor to our site. From time to time I receive emails from folks who wish to share with me, their displeasure of foreign made products.

I read the emails, nod in agreement and reply.

The writer shared with me information about a fine fresh food product, found in my own refrigerator but the producer unfortunately licensed their brand name to another company who exports the U.S. product to China.

Goodness knows I most certainly support U.S. exports, so this isn't necessarily unwise, except in this situation. The food product is then supposedly made into candy and shipped back to the U.S. packaged with a familiar and trusted brand name.

The person who wrote to me had sound concerns about what possible contaminants could be introduced in China during the candy making process while I wondered if U.S. product ever actually made it into the candy. 

A food product suitable for my own refrigerator is one I consider “Nation A” grade.

Mary - web person for FindUSMade.com

Do You Have What It Takes To Be An American Manufacturer?

Could I interest you in some role-playing? Would you like to test yourself by making some important business decisions? Would you like to explore your ethics and values as well as your business savvy? If you’re game, please keep reading.

Let’s review our respective circumstances in this role-playing exercise.

I’m a manufacturer in the US and I must pay at least the minimum wage for labor.

I operate according to guidelines, regulations and laws that govern my product and my conduct. There’s a set of standards and regulations for every manufacturer operating in the US. They govern what I can and can’t do when I manufacture.

Perhaps you’re thinking that my circumstance is somewhat stifling, enough possibly to get in the way of profits. I’m thinking though that I have the easy role in this exercise.

You are a manufacturer in China. Technically, there is a minimum wage but you can ignore that if you like and pay what you wish for labor.

The Chinese government takes no proactive role in manufacturing and only addresses problems if they become known and made public. It’s extremely doubtful that your product will ever be inspected or tested. With no regulations in place to get in your way, you are free to make all sorts of choices.

That sounds rather splendid doesn't it? As a theory, regulations are an unnecessary burden that would just get in the way of your profits, right? Let’s take that theory to the real world and test your ability to make decisions.

All sorts of US companies have come to your country, China, looking for the absolute cheapest price for goods. Quality & innovation can be had elsewhere so everyone comes to you solely for cheap prices. You’re positioned well with great flexibility on how you manufacture and how low you’re able to keep labor costs. You’re ready to make some money, aren't you?

This exercise could be accomplished with a variety of products from any industry, but we’ll use simple, familiar examples.

For now, you get to manufacture paint. It’s okay if you don’t know much about chemicals because I have only 1 decision for you.

Do you use lead pigment in your paint or a more expensive alternative?

I know you just started manufacturing and this is new to you but this decision must be made in your new business. Do you have an answer? You can secure a contract and move product out the door if you've sharpened your pencil. How badly do you want a contract? Using lead pigment lowers your product cost, right?

How nice that the government - delighted with their role in the global economy, doesn't care about the decisions you make in your business. You deserve to succeed, correct? You certainly deserve the contract.

Somehow I sense that you haven’t yet committed to a decision on the lead pigment. Does something give you pause about such a choice? Oh, you know that lead is a poison, don’t you? You might worry that your paint would be used on toys. Children would be exposed to the lead in your paint and they could suffer with blood and brain disorders.

Is there any reason though to drag ethics and conscience into a business decision?

Don’t look at me, I face no such choice. I could have contracted product in China but it never crossed my mind because I don’t want any part of such a decision so I’m manufacturing in the US. You’re the one with the freedom and flexibility, which should serve business well, right?

So, do you use lead pigment in your paint or a more expensive alternative?

I understand your hesitation, believe me, I understand.

Your fellow manufacturers in China will readily make that decision so we’ll leave the paint manufacturing to them and find you another role.

Okay, how about a fun business like making toys? Congratulations, you’re now a toy maker in China. Disney is already knocking on your door with a contract for swell and cool looking painted toys. They want them of course, as cheaply as possible.

Painted toys? Eh. You know a thing or two now about paint in China, don’t you? Your government even signed a meaningless agreement in 2007 that banned the use of lead paint on toys. It’s not enforced and is ignored by your fellow manufacturers.

You’d rather not use any paint on your toys that has lead pigment. Where would you find some and what would it cost? What would it cost to test so you could be certain it was free of lead?

Pressure to produce goods cheaply, always seems to turn you and your fellow manufacturers toward difficult choices, doesn't it? Maybe you can cut back further on payroll and hope your people will still come to work. You can’t save money by cutting frivolous things like safety equipment because unlike me, you never made any such purchases. Ensuring any product safety just adds cost to your product and makes it harder to compete for contracts. You’d certainly like that contract with Disney though…

What do you do?

You haven’t had any fun yet nor have you made any money.

You know it’s possible, but maybe you’re just not cut out to be a manufacturer in China. That’s okay, neither am I.

Maybe you’d like to own an American business and outsource your manufacturing. That role comes with many perks. That could be fun. You see, if you outsource production, you can trade labor & material costs for a massive profit margin. Nice. Retailers love that margin and they'll throw consumers a dollar or three in savings to bait them into buying something imported over something domestic. Your products will get a ton of shelf space.

Go ahead and arrange that fitting for new suits at the tailor. Check out the Hamptons and choose from the many available homes. Select a designer and get the boardroom redecorated.

You'll make lots of money in business and that's what counts, right? You can nail the American dream. Who would have guessed that the path to the American dream ran through China? You'll be part of the global economy and you can have a nice office building with an American flag flying out front.

The likelihood exists that one of your products will one day be recalled, but given your massive profits, you'll be able to handle the loss from such an event.

Would that role suit you?

You don’t have to wonder at all if I envy someone in that role because if I did I would have outsourced my own production.

You know, there’s a reader I lost earlier when they decided in favor of lead pigment. I lost another reader who would have crossed their fingers when they bought paint for their toys. I lost yet another reader who is daydreaming about grand homes in the Hamptons.

I’m left only with you, someone who hasn't yet found a role that suits them in this exercise.

Welcome brother. Come have a seat by me because it’s clear that you have what it takes to be an American manufacturer. Let me tell you about the role. You won’t make massive amounts of money but if you work hard you can make a good living. In addition to income, you’ll have wonderful people who work with you daily and help you succeed in business. You’ll view them not as an expense, but as family.

You'll make decisions that serve you in the long term, not the short term since you're building a business for this generation and the next.

You’ll have to deal at times with retailers that can be downright hostile to your products because of their smaller profit margin, but you’ll take great pride in the products you produce.

You’ll sleep well and contentedly at night except when you worry about competitors foreign made products because you know where they cut corners.

When shoppers question you about your products, you can tell them honestly that quality and safety matter to you because your actions prove it every day. Any time you like you can leave your desk and step out on the shop floor. Keep your eyes and ears open because the same people with hands on your product can offer tips and ideas that you can use.

An especially good part is the customers. You’ll come to treasure them because they’re the ones who value what you produce. You’ll come to recognize their names and faces because they return so often to do business with you. You’ll be thankful that at no point in your lifetime will you likely look one of these people in the eye and apologize because your product harmed one of their family members.

You’ll also get to set up a special file. It’s not for complaints, no, it’s for those hand written letters from your customers. You’ll be surprised and flattered whenever you receive them, yet, there they’ll be with expressions of gratitude. Yep. You’ll get them and treasure them as well. You might even have them framed so they can adorn your office walls because you consider them the most prestigious awards you won this year.

You and I can laugh at those rewarded only with dollars and who don’t realize that ethics and values are very much a part of smart business. We’ll agree that the American way is the very thing we should export in the global economy.

Outside your plant, you’ll likely fly the American flag. You might even raise it yourself in the morning. You’ll know the same as I that the path to the American dream doesn't run through China. You’ll recognize everything that is right and just about that flag flying outside your door. It’s fitting for everyone whose love of country is greater than their love of money.

Mary - A proud American manufacturer and web person for FindUSMade.com