- China Business Blog - http://www.chinabusinessservices.com -

The Poisonous Supply Chain

Remember Sudan Red? It was the carcinogenic additive found in products from KFC, Heinz and others in China (and elsewhere, including some products in the UK) back in 2005. It seems that lessons have still not been learned and that dangers are still lurking…below the surface of pet food, among other places. The FT notes that:

When the food contamination issue last hit the headlines, my firm [1]was engaged to conduct some investigations into the supply chain, and to find out about how reputable, international brands had managed to find themselves selling poison to their loyal customers. At that time (and, I suspect, again now) the problems occurred to two main reasons.

Of course the costs of prevention would have been far less than the costs of the cure. Hindsight may be a wonderful thing but, as the Scouts like to say, it is better to “be prepared”. A little due diligence, testing, and risk management can go a long way…a lot further (in the right direction) than reliance on regulators. This is again highlighted by the current trial of the former head of the State Food & Drug Administration, Zheng Xiaoyu. China Examiner (h/t China Digital Times [2]) reports:

Anyone who bribed their way into the market in those years (or any other time) will face some sleepless nights. As will anyone who has a long chain of unknown and untested suppliers. As I have said before, Due Diligence = Sound Sleep [3].

See new sources: