ICPM-2012. Crisis Management in the Time of Changing World
Study on China’s Food Safety Issues and
Supervision Platform Based on Credit
Management
Song Guangxing 1, Tian Tian 2
1
School of Public Management, Yunnan University of Finance and Economics, China
E-mail: [email protected]
2
School of Business Administration, Yunnan University of Finance and Economics, China
（E-mail: [email protected]）
few years, China's food safety incidents broke
Abstract
out frequently, which even caused the fear of
Food safety issue exists not only in developing
the consumer for food consumption. Although
countries, but also it is actually a global
China has successively taken a series of
problem. At present, China's food safety is a
actions, such as food safety action, special
serious issue and major fatal food safety
renovation for food safety, and construction of
incidents occurred occasionally. Based on
food safety credit system etc, some problems
empirical study, this paper analyzed food
of producing and selling fake goods and other
safety issues and their causes from government
illegal activities are still very common, and the
regulation perspective. Food safety is closely
related
with
ineffective
phenomenon of lacking of credit is also very
government
serious. Therefore, to strengthen food safety
regulation-- lacking of credit and coordination
supervision is imperative. Food safety is
mechanisms. Therefore, this paper proposed
related to the knowledge of biology, health and
some suggestions to solve those problems,
quarantine
such as establishing a credit management
platform for food safety and strengthening
and
government regulation synergy mechanism.
Keywords:
Food
Safety,
political
science,
psychology
and
other
disciplines.
Domestic and foreign scholars in this field
have carried out extensive research from
Government
different angles.
Regulation, Causes and Countermeasures
1.
science,
economics, management science, sociology
Researches on the issues of food safety
focus on the following areas: the concept of
Introduction
food safety, influencing factors of food safety
According to the investigation report of the
and behaviors of main subjects related food
World Health Organization, every year there
safety.
are a large number of consumers facing
different food safety risks. As China is during
the process of transformation, the food safety
issue is more complex and difficult. In the past
© 2012. The authors - Published by Atlantis Press
323
1.1. Studies on the concept of food safety
1.2.
and influencing factors of food safety
Studies on the behaviors of main
subjects related food safety
Studies on food safety issues initially focused
These researches include motivation and
on the quantity of food security. In 1974’s
effectiveness of food safety of the suppliers,
World Food Conference held by the United
food consumption psychology and behavior,
Nations Organization (FAO), the concept of
and government behavior of food safety.
food security was defined as: in any case, all
people
have
foods
first proposed the motivation of enterprises to
necessary to maintain a healthy survival. In
improve food safety was divided into two
1980s, oversea researches on food safety
categories: one is internal motivation for
issues began to gradually transfer from the
increasing profits and reducing the production
quantity security of food to its quality safety.
costs, the other is external motivation related
In Food Safety Law of People's Republic of
to the transaction costs. After that, other
China issued in 2009, food safety refers that
scholars further noted that motivation of
the
and
enterprise food safety in different countries
conforming to proper nutritive requirements,
differed a lot[8][9],[10], and established an
and does not cause any acute, sub-acute or
effectiveness formula for food safety from the
chronic hazards to human health.
view
food
access
is
to
non-toxic,
adequate
Holleran, E., Bredahl, M.ZaibetL (1999)
harmless,
of
costs
and
benefits[11].
For
Studies on the factors influencing food
management system of enterprise food safety,
safety abroad were started as early as the
studies focused on the implementation of the
1990s, while the domestic is started a bit late.
Hazard Analysis and Critical Control Point
Research focusing in this regard in developed
(HACCP)
and
different.
management system. British scholars in this
Developed countries focused on the new
field are particularly significant, as many
technology,
Taking
scholars (such as Ehiri, Zaibet & Bredahl, and
genetically modified foods for example,
Henson and Northen,) did an exhaustive study
Taylor (1997) pointed out that the scientific
on the cost - benefit of HACCP system.
and technological progress made the further
Domestic scholars’ study on the HACCP
application
new
system is about how to create a HACCP food
technology in food production, which led to
safety management system, and the role of the
uncertainties of food safety. Kasterner.J,
system to ensure food safety in the enterprises.
Pawsey.R (2002) pointed out the impact of
For example, Song Jieshu(2005) and Yu
foreign food, and Parker (2005) studied the
Haiyan (2005), respectively, research the
impact of food bio-terrorism. In contrast,
HACCP of the traditional liquor production
domestic scholars such as Kan Xuegui(2001),
enterprises and process of chilled meat
Zhou Jiehong(2004), Liu Ting(2009) studied
processing. Zhang Jumei (2007) analyzed the
the factors affecting food safety problems
difficulties in three stages: prior to the
mainly from environmental pollution, source
implementation of the HACCP plan, the
pollution
implementation
developing
countries
trade,
of
of
new
are
terrorism.
materials
aquaculture,
and
harmful
food
additives, and market and government failure.
or
implementation.
324
ISO
series
process
and
of
quality
after
the
Research on food consumption psychology
perspective [11], [12]; Based on the view that
and behavior included consumers' willingness
government is the agent of public interests, the
to pay, purchasing power and buying behavior.
other regarded government regulation as a
Foreign scholars’ studies gradually turned
necessary means to compensate for market
from the buying behavior impacted by the
failure
consumers'
individual
asymmetric
consumers’
trust
characteristics
for
market
information
externalities
and
problem
[13].
government,
Domestic scholars like Zhou Deiyi, Xie Min,
environmental awareness, and psychological
Yu Yongda ,etc(2002) proposed the necessity
factors on food choices. The representative
of strengthening government control of food
scholars include Elaine (1999), Henson and
safety, because market failure appears if the
North (2000), etc. The domestic are mainly
market simply relies on the market mechanism.
concentrated on consumer behavior. Such as
Li Gongkui, Ying Ruiyao (2004) pointed out
Wang Zhigang (2003) and Zhang Xiaoyong
that primary cause of the "lemons problem" in
(2004), who took consumers from Tianjin as
the market was that there were defects in
study subjects, and analyzed food safety
government regulation of food safety, while
concerns of individual, and the process and
the solution to resolve the problem was
characteristics when consumer selected food.
reducing information asymmetry on food
Zhou Yingheng, Ou Yang Xi-hui (2006)
safety.
analyzed
consumer
the
safety
choice,
of
to
as
factors
on food safety, domestic and foreign scholars
production date and shelf life, using of
have done a lot of researches. Oversea scholars
preservatives and pigments and other additives,
include Henson(1999), Loader R. and Hobbs
and
and
J.E(1999). From their researches we can see
distributors getting the certification from
that the main regulatory manners of food
relevant state agencies. There are also scholars
safety include establishing and promulgating
(e.g. Ren Yan, Tang Xueyu, and Li Shiping)
laws, regulations and executive orders, issuing
studied consumers’ low degree of cognitive
relevant food production licenses，rewarding
level on green foods, and analyzed main
and
factors affecting consumers cognitive level,
implementing HACCP system, etc. Domestic
such as consumers' gender, educational level,
scholars Yang Tianhe (2004), Zhao Lindu
occupational characteristics, and level of
(2005), Zuo Jingsheng (2005) and Cheng
confidence on green foods.
Yanqing (2006) discuss the government food
origin
include
For mechanisms of government regulation
the
whether
which
influencing
manufacturers
punishing
the
relevant
acts,
and
Researches on government food safety
safety control behavior based on macroscopic
behavior include the necessity for government
angle, and put forward relevant policy
regulation of food safety and the mechanisms
suggestions, such as strengthening the legal
of government's food safety control. The
laws and regulations, establishing the food
necessity of government regulation of food
safety control department, perfecting the
safety is grouped into two categories: a class
relevant food standards, promoting consumer
regarded that government control is the game
food safety cognition, and constructing the
between various stakeholders to produce a
authentication and product recall systems.
balanced result from the game and equilibrium
325
2. China’s food safety issues and their
fertilizers,
causes
production methods of fake and shoddy foods
chemicals
etc.
Finally,
the
are more and more diverse and subtle, from
2.1. China’s food safety issues
the externality to the internality of food, and
With the rapid development of China's market
including both physical and chemical methods.
economy, the consumption trends of the
2.2. Causes of food safety issues
society
changes
from
focusing
on
the
To some extent, above-mentioned phenomena
improvement of living standards to quality of
are related to inadequate supervision of
life, and food safety has become a widespread
government, although there are still some
concern, while the exposed food safety issues
other factors. Issues on government regulation
sounded the alarm of the people again and
are mainly in the following areas: regulatory
again. So many food safety issues are serious,
laws and regulations and technical standards
which must be governed immediately. Taking
are imperfect, government regulation pattern is
the “Fuyang, Anhui Big Head” major food
defective, government regulatory systems are
safety incident in 2004 as a starting point, food
unsound
safety incidents exposed by the media present
and
corresponding
inspection
methods are backward, regulatory information
rising trend year by year. A large number of
is poor, and regulatory funding is inadequate.
“black workshops” profiteer from selling fake
China has basically formed the legal
goods, and even some well-known enterprises
framework for food safety, for example, Food
pursue their own interests at the expense of
Safety
public interests, such as “Sudanhong event”,
Law,
as
the
Basic
Law,
was
supplemented by related regulations, local
“Red Duck egg event”, “gutter cooking oil
laws
incident”, “the Sanlu milk powder incident”
and
regulations,
and
judicial
interpretations, and is compatible with other
and “poisonous bean sprouts”, “tainted pork”
laws. However, these laws and regulations do
and “leather milk” and other major food safety
not cover all aspects of food safety, only
incidents. These food safety incidents often
include some more important aspects, and lack
lead to social panic, seriously damaged public
of integrity. Moreover, there are problems
health and public safety. These food safety
related
incidents are only the tip of the iceberg of the
to
low
legal
effect
and
light
punishment in our food safety law and
food safety issues, which show a growing
regulation. In the case of no major food safety
trend. First of all, the unqualified foods
incidents, the penalties for violations of food
involve more and more fields, from the
safety often take a simple fine or suspend
traditional main by-product such as the
business for rectification, which unable to
original grain oil, meat, eggs, vegetables and
meet the pedagogical effect. Meanwhile, with
soy products to dairy products, fruits, roasted
the economic development and technological
seeds and nuts. Secondly, the harm degree of
progress, a growing number of food additives
unqualified foods is increasingly deep from the
and new technologies are applied to food
surface health hazards to the internal safety
production, but relevant laws, regulations and
hazards. Food inspection in the past only paid
technical standards for construction are not
attention to the total number of food bacteria,
updated timely, which could easily lead to
while now it checks into residues of pesticides,
326
confusion in management and potential safety
lead a lot of problems in food safety
hazard.
supervision. For division of functions is fuzzy,
The
state
and
local
government
are
each department may order to maximize their
responsible for China's food safety supervision,
own interests, competing custody or shirking
while Central Government are composed of
its regulatory responsibility, resulting in a
the Ministry of Health, Ministry of Agriculture,
range of issues such as waste of regulatory
the State General Administration of Quality
resources, poor regulatory effectiveness, and
Supervision and the Ministry of Commerce,
high regulatory cost .
who are responsible for reporting to the State
Government regulation being reasonable,
Council. These departments are self-contained,
must have a complete set of food safety
respectively,
corresponding
control system, which includes food market
extension agencies at the provincial, city and
access system, food certification system, food
county level. These food safety regulatory
safety risk monitoring and evaluation systems,
agencies are directly responsible for the local
food
government, and accept the management and
accountability system. But so far, China has
technical guidance of the central agency. Each
not established a comprehensive food safety
department forms a vertical system from the
control system, and the corresponding food
central to local, but central and local food
safety inspection means is relatively backward,
safety regulators have not formed a unified
which is reflected in the food safety inspection
and coordinated control system, and the
equipment and inspection technology. In the
relationship of food safety regulatory has not
day-to-day supervision and inspection process,
been straightened out. In this regulatory
supervisory staff relying on experience ，
system,
segment
validity, shelf life, trademark packaging etc,
regulatory approach, Ministry of Health,
make a rough judgment through verification,
Ministry of Agriculture, the State General
inquiry,
Administration of Quality Supervision and the
accuracy of the check results, The current
Ministry of Commerce respectively supervise
inspection equipment like pesticide residue is
one section of food links. On the surface, all
time-consuming and difficult to promote,
departments segmented supervision seems that
while the drugs and toxic substances residue
there are multiple protection mechanisms, but
testing methods and equipment are more
in fact the phenomenon of regulatory overlap
scarce. These problems seriously hinder
and
In
smooth supervision of food safety, are not
multi-sectoral segment supervision, as the
conducive to investigate violations, and leave
scope of regulation and regulatory content
a hidden danger to food safety. At the same
expanding, and the laws, regulations of
time,
provisions tend to use more general, vague
consumers less knowledge about pesticide
language to describe the functions of the
residues, microbial contamination, etc. We
various regulatory department, so that the
should also note that efficient government
division
various
regulation establishes on the basis of adequate
departments is not clear, and there is a certain
funding. If there is not enough funding to
flexibility and misunderstanding, which will
ensure food safety, the equipments are not
we
setting
take
regulatory
of
up
multi-sectoral
gaps
functions
is
of
serious.
the
327
recall
system,
observation,
information
and
which
food
safety
reduce
asymmetry
the
makes
updated, and supervisory techniques are
prevent counterfeit and shoddy foodstuffs into
remained
safety
circulation. The root cause of ineffective
supervision work will be restricted seriously.
government regulation is that it does not start
While funding shortage is another prominent
from the essential reason of food safety issues
problem of China's food safety supervision,
- lack of credit and lack of coordination
the investment in testing agencies, the
mechanisms. Therefore, in order to resolve
education and training of food employees,
food safety issues fundamentally, we should
food safety research, and safety supervision
not only improve the government's regulatory
network in China is far below the level of
mechanisms, develop a sound government
developed
regulatory system, and increase the regulatory
undeveloped,
countries,
food
which
is
also
an
important reason for China's food safety
funding,
problems.
construction of food safety credit supervision
Here we analyzed the reasons for China's
etc.,
platform,
and
but
also
accelerate
strengthen
the
collaboration
food safety issues mainly from the perspective
between government sectors.
of the government, while supplier, one of the
3.1. Government collaboration regulatory
main part of the market, due to a weak
mechanism
awareness of credit, are often driven by
The so-called synergy is the process that
short-term interests to take the bad behaviors.
restructuring various parts of the entirety in
Consumers with poor information on food
aspects of time, space and functional structure
safety are very vulnerable, especially the
to complete a particular job and project.
majority of rural residents, urban migrant
Synergy can produce a cooperative and
workers and groups of students, and they are
coordinated ability, which has far greater
the main victims. Therefore, the behaviors of
providers
and
consumers
are
effects than each part of the entirety. By
important
synergy we can effectively solve the problems
influence factors of food safety issues.
of
3.
information
difficulties
safety
problems
occur
frequently,
play
of laws and regulations and supervisory
regulations.
system, inadequate punishment, inefficient
Actually,
it
implies
resource
of
government
regulations.
Therefore, the synergy mechanism can also
reasons of which including the imperfectness
enforcement.
and
inefficiency, while these issues are just
Food safety credit supervision platform
Food
asymmetry
an
important
role
in
government
Government regulation is a systematic
the
engineering. According to system theories,
imbalance in the game of all stakeholders in
various functional departments in a system can
food chain, lack of social credit, and other
be considered to be subsystems. As parts of
deep-seated factors. All these factors are
the whole system, subsystems are in close
intertwined and make food safety issues more
contact, and their function will directly affect
prominent. If resolving food safety issues only
the effectiveness of the whole system. Various
from the laws and regulations, regulatory
functional sectors of the government refer to
framework, and regulatory system, we can
different aspects of food safety regulation, and
only do passive monitoring, and cannot
each department has its own function and
328
unique role, so problem in any part will affect
3.2. Contents of building food safety credit
the entire food chain security. Thus, functions
supervision platform
synergy is critical to government supervision,
To set food safety credit supervision platform,
and regulatory authorities should cooperate
we
and coordinate with each other.
collecting
regulation mode in food safety, while the
trustworthy
interrelated, and only after obtaining complete
departments,
enterprises
and
punishing
3.2.1. Credit evaluation index system of food
mode will cause serious waste of information
enterprise
irregular
The credit evaluation index system of food
through
mechanism
other
financial
discreditable enterprises.
information can we make decisions, so this
synergy
and
supervision,
information of food enterprises, and rewarding
kinds of information of food enterprises are
information
food
standards of food safety credit, releasing credit
resources are sealed in different databases. All
integrated
of
enterprise in accordance with the basic
various functional sectors, so information
be
information
database, evaluating the credit of the food
sharing mechanism of information between
can
food
constructing food enterprise credit information
Supervision, and there is no exchange and
information
quality
institutions
Bureau, Tax Bureau and Bureau of Quality
and
credit
taxation,
different sectors like Trade and Industry
scattered
constructing
companies from industry and commerce,
information of the food enterprises scatters in
The
consider:
enterprise credit evaluation index system,
The government regulation takes a segmented
resources.
should
enterprises should be consistent with China's
of
national
government regulation. Firstly, this integration
conditions,
and
based
on
the
characteristics of food enterprises, We should
needs an information platform to complete the
analyze and integrate various factors that
collection of food credit information, so as to
affect food safety credit systematically，so as
achieve a barrier-free flow of information
to analyze food safety behavior of enterprises,
among different functions, and ultimately all
and determine the size of the risk. The index
sectors complete collaboration and information
system evaluates an enterprise from internal
sharing through this platform.
and external aspects, which has three grades.
Carrying out government regulation needs
The first grade assessment indicators mainly
the support of various resources, such as
cover factors of enterprise interior and exterior.
talents, financial, material, information, etc.
The second grade indicators supplement the
While the phenomenon of resources waste is
first grade assessment indicators in food
brought about by functions overlapping and
production, processing and circulation parts.
regulatory overlap, and resources shortage is
The third grade indicators give a detailed
caused by regulatory funding shortage, we
description of each link. These indicators
require coordinating resources among different
cannot cover all the details of various
regulatory authorities, so that limited resources
enterprises. Therefore, indicators in each level
play the greatest roles for the goal of food
can be expanded correspondingly and the
safety.
grade of the index system can also be
increased so as to make the index system more
329
scientific and targeted. In this paper, a food
other types of enterprises or individual
enterprise credit evaluation index system is
evaluation can use similar index system.
offered as a reference, shown in table 1, and
First Lever Indicator
Second Lever Indicator
Third Lever Indicator
Raw Material Purchase
Source Links
Raw Material Acceptance
Raw Material Storage
Production Environment
Production and Processing
Conservancy of Sanitation
Links
Production Facility
Internal Evaluation
Product Quality Testing
Product Stock
Intermediate Links
Product Marketing
Product Recall
Enterprise Qualification
Regulatory Compliance
System Certification
Information
Operation
External Evaluation
Social Assessment
Trade Independent Management
Information
Consumer Evaluation
Table 1: Credit Evaluation Index System of Food Enterprise
The credit evaluation index system of food
credit score of it. Food enterprises credit score
safety is a multi-layer and multi-index
can be used as an important reference for the
composite
decision-making of consumers and other
system,
and
the
degree
of
importance of each indicator is different. We
information users.
can adopt expert scoring method, AHP,
3.2.2. Collection of food enterprise credit
principal component analysis, or entropy
information
method etc. to determine the weight of each
Enterprise credit information collection is
index. Based on credit evaluation criteria for
an activity of collecting, classifying, sorting,
food enterprises, we can get the evaluation of
storing scattered enterprise credit information
each indicator of a food enterprise, and then
in society actors to form enterprise credit
synthesize all indicators to get comprehensive
information
330
database.
When
select
the
channels of food enterprise credit information,
3.2.3.
we should not only ensure the availability of
information
information, but also consider the quality of
Credit
information
and
acquisition
costs.
Food
Using
of
food
supervision
enterprise
platform
credit
establishes
contacts with various government regulatory
enterprise credit information comes from the
authorities,
executive institution (including the Consumers'
networks, and enterprise networks, so credit
Association), the judiciary institution, public
data among different sectors and agencies
institutions (including water, electricity, gas),
transmit smoothly, and various functional
financial institutions (mainly the People's
sectors and agencies obtain expected data and
Bank
services
of
China),
social
intermediary
government
through
the
extranet,
platform
public
interface.
organizations (such as accounting affairs,
Through the platform, sectors of government
professional credit reference agencies, etc.),
can inquire the information of the food
industry associations, and the enterprise itself.
enterprises, and take different forms of
By the business sector we can get access to
supervision based on the credit status of the
information of business registration, the
enterprise.
credibility of the business-related activities,
coordinate and cooperate to improve the
and
penalty
timeliness and effectiveness of the regulatory.
corporate
information
administrative
Drug
The public can get query, complaints, and
evaluation via the platform, so consumers can
qualification
approval,
the
enterprise
not only obtain comprehensive information on
and
corporate
illegal
food safety, but also provide a reference for
irregularities, while the inspection information
potential customers. Enterprises can use this
of food production, processing, storage and
platform as a good publicity platform and
other aspects comes from the Quality and
build corporate reputation and brand. If a
Technical Supervision Authority and the
company's credit rating is high, it will attract
Health Bureau. Other relevant enterprise credit
many consumers to buy its products or
information, such as corporate reputation,
services, and finally, establish a corporate
fulfillment of corporate social responsibility,
brand image. By checking the reputation of
assessment of the public, consumer complaints,
other companies on the platform, enterprises
etc., comes from other relevant agencies, such
will improve the sense of competition. By
as consumer associations, social intermediary
viewing the complaints of consumer, a
agencies, and trade associations, etc. At the
enterprise can increase the awareness of social
same time, the news media reports can be used
responsibility.
as an important source of credit information.
information issued by the State, enterprises
The
collect
can understand the policies, regulations and
information scattered in various departments
industry trends and movements timely. The
and various departments can access to business
using of food enterprise credit information was
information through the platform too, so as to
shown in Fig. 1.
achieve
the
supervision
and
sectors
information of
credit
Food
various
Administration can offer
authentication,
etc.
Meanwhile,
platform
information
synergy
of
government regulation.
331
By
viewing
the
latest
Fig. 1 Using of Food Enterprise Credit Information
In summary, food safety credit supervision
supervisory system and supervisory institution,
platform can enhance communication, and
all above issues should also be considered.
promote coordination and cooperation among
First of all, the ideal of food safety
various functional sectors. So it can effectively
supervisory should
reduce the phenomenon of regulatory overlap,
government should realize that the food safety
regulatory gaps and resource waste in the
is a
regulatory
regulatory
supervision cannot be isolated. The ideal of
efficiency and the processing speed of
integrated management through the whole
emergency, and achieve function and resource
food chain “from farmland to table” should be
synergies of government regulation to some
emphasized, so as to make full and effective
extent. At the same time, through releasing the
monitoring, foreseeing and prevent the risk of
credit information of enterprises, discreditable
food safety.
process,
improve
dynamic
be
organic
transformed.
process,
so
The
the
companies will be difficult to survive in the
Secondly, the government should establish
market, so as to achieve the purpose of
complete laws and regulations system and
fundamental solution to food safety issues.
technology standards, which cover the whole
process of food producing, processing and
4. Conclusions
circulating.
or
supervisory system and supervisory institution
safety
developing
advanced
supervisory
monitoring conditions, and providing strong
credit supervision platform, strengthening
food
government
equipments and technologies, improving the
interact mutually. Therefore, building the
of
the
should increase the investment for introducing
Credit supervision platform of food safety,
awareness
Meanwhile,
activities to food safety guarantee.
supervision,
Thirdly, we should learn from developed
establishing relevant laws and regulations,
country, to build food call-back institution,
developing safety standards, and restructuring
food certification system and system of
332
rewards and penalties, and to perfect the
[7] Holleran, E., Bredahl, M. Zaibet L.. Private
existing supervisory system.
incentives for adopting food safety and
quality assurance[J]. Food policy, 24
Acknowledgement
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[8] Hobbs, J. E., Fearne, A., Spriggs, J.
This research was supported by the National
Incentive structures for food safety and
Natural Science Foundation of China under
quality
Grant 70572068
international
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