A turning point

The fines paid by Fonterra and other infant formula manufacturers in China for its pricing policies give me pause. This may be an unpopular view, but I think that the regulators in China may be punishing the companies for something that the authorities there have failed to do – keep the domestic food chain safe and free from contaminants. Instead, they seek to impede the natural flow of trade, which requires that products in high demand command higher prices.

Like the US at the turn of the last century, China is at a crossroads when it comes to food regulation. The Jungle by Upton Sinclair, which was published in 1906, was a turning point for the US and its food industry. The conditions exposed in the book caused much consternation in the country, but ultimately they also caused change and safer conditions for both the workers in the plants and the consumers. Granted, there are still many problems with food safety in the US, but the laws are there and at least can be enforced if they’re violated.

Today, China is looking at a lengthy list of problems with its food supply. Chinese consumers buy infant formula from overseas because they do not trust domestic products. It is time for the government there to stop looking to punish others and instead concentrate their efforts on making sure consumers can safely rely on buying Chinese.