Landmark deal returns China access to over 200 US dairy firms

In the long-term, this new level of access will offer sizeable opportunities to even more milk, cheese and infant formula companies to enter the market, according to the US Dairy Export Council.

After more than two years of negotiations, the two governments reached a deal to implement a workable registration process to allow trade to expand.

Under the agreement, which focused on compliance, third-party certification bodies will audit American dairy facilities to make sure they operate within Chinese food safety requirements.

“This deal marks a significant opportunity for the US dairy industry​,” said Tom Vilsack, president and chief executive of the USDEC. 

Talks were handled by the USDEC and the National Milk Producers Federation’s policy staff, which worked closely with the US Food and Drug Administration, the Department of Agriculture. China’s Certification and Accreditation Administration represented Beijing in the negotiations.

Though it is already the world’s largest dairy importer, China’s per-capita consumption remains far below that of America, Europe and Asian neighbours including Japan and South Korea, meaning the potential to grow exports there is “tremendous​,” Vilsack added.

The deal should also support tens of thousands of jobs in the industry, extending beyond farms.

It required more than 20 meetings between the American and Chinese parties in what was dubbed an “arduous​” process. It also involved two systems audits of American facilities by Chinese inspectors to prove the “strength and effectiveness​” of production standards there and the weight of the FDA’s regulatory oversight.

“We built relationships and learned how to work closely together to get results​,” said USDEC’s operations chief, Matt McKnight. 

“The two governments did what they should do in a partnership: find a solution that suits both their needs. Sometimes that is not a quick fix. Creating a system that stands the test of time requires time​.”

America exported US$384m of dairy products to China last year, making it the industry’s third-biggest national export market, behind Mexico and Canada, though officials say market access has been a challenge.

Since 2014, China has forced exporters to certify dairy facilities to meet Chinese food safety standards before they can continue shipments. Since then, no new American plants could be added to China’s list, effectively putting companies in a state of limbo, the USDEC said.

It is expected that American companies will soon be officially registered, after which they may begin shipments, said Jaime Castaneda, the council’s vice-president for trade policy.

More from China…​

HK tests find most processed meats contain excessive sodium​

Hong Kong’s shopper watchdog has warned of high sodium levels in certain processed meats.​

Following tests of 33 samples of luncheon meat and sausages, the Consumer Council found the majority contained levels that exceeded its recommended standards. In one case the sodium level was found to be 560 times the indicated amount. Antibiotics were identified in another product. 

The council’s limits are based on Britain’s Food Standards Agency regulations, which regard a sodium level of more than 600mg per 100 grams as high. In total, 28 of the samples fell under this category. 

The Consumer Council said that a sample of Maling premium pork luncheon meat was adulterated with sulfadimidine at a level at 199.3 micrograms/kg, presumably from contaminated feed. The antibiotic can lead to allergic reactions in a small percentage of people who consume it.

A sample of Princes Hot Dogs 8s contained around 851mg of sodium per 100 grams, compared to 1.5mg/100g listed on its nutrition label. The brand has since acknowledged the discrepancy and pledged to amend the label.

“In general, processed meat products are not that good for one’s health​,” the council’s chief executive Gilly Wong said. “We advise people to balance their diets with more vegetables and examine the nutrition labels of those meat products carefully before purchasing them​.” 

Excessive sodium consumption has been linked to increased risks of hypertension and heart diseases. 

The consumer watchdog said it had sent the results to the Hong Kong Centre for Food Safety, adding that it has been following up on the antibiotics case.