Articles by Levick Experts

U.S. food companies face a dangerous dilemma over the new U.S. Food and Drug Administration alert on farm-raised Chinese seafood, the latest in a steady drumbeat of stories about the contamination and unsanitary quality of Chinese food imports. Consumers are growing increasingly concerned every day. But American producers with an eye to future sales in China cannot risk igniting a trade war by raising too loud an alarm over Chinese products that are now essential to our economy.

The tipping point was the discovery this spring that China had been spiking its pet-food ingredient exports with melamine for years to falsely boost the apparent protein content of the products to earn higher prices. Until then, the FDA chose to look the other way while quietly petitioning the Chinese government to regulate its exports more stringently.

But after the pet food recall and revelations of other tainted Chinese imports, including meat, produce and toothpaste ingredients, pressure from activist groups and startled consumers forced the FDA to take stronger action. The agency has sent inspectors to China and issued a series of warnings about that country's food and ingredient exports. The Chinese, bristling over the international criticism, have denied any wrongdoing, while taking punitive action against allegedly derelict companies and government officials.

Smart companies should be mindful during this period of heightened tension to keep consumers informed of their efforts to safeguard the food supply without adding to the alarms of consumers. To overreact at this time could spur American consumers to reject Chinese products. If that happens, China could easily stop importing entire categories of finished American products.

The bottom line for U.S. food and consumer product companies is to openly cooperate with the FDA and keep consumers in the loop about those efforts on their web sites and in public statements. But outright condemnation or criticism of China right now - whether in news interviews or public meetings - can only jeopardize the hopes of a future open market in China... Leave the strong words to the inspection authorities. Instead, focus your efforts on keeping consumers informed, in a positive manner, as to how your company is going to help be part of the solution and how it's working with the FDA to encourage China to bring its exports consistently up to global standards.