Qingxin Chen University of Central Lancashire, Preston, UK

Transcription

1 Qingxin Chen University of Central Lancashire, Preston, UK ICFSNPH 2015: 17th International Conference on Food Safety, Nutrition and Public Health Zurich, Switzerland on July, 29-30, 2015.

2 1. Background 2. Planning 3. Objectives 4. Literature 5. Preliminary Research 6. Expected Contribution 7. Reference

3 The development of Chinese economy Figure 1. China Economic Miracle

4 China Dairy Product Industry China urban dairy consumption, 2007 to 2030 forecast (kg/capita/year) Infant formula milk powder imports (tonnes)

5 Years Serious Incidents 2004 Fake Milk - Big Head Disease" 2008 Melamine Contamination - Kidney Stones 2009 Contaminated With Flavacin M Mercury-Tainted 2012 Mixing Up The Expired Formula 2013 Involving Cancer Causing Toxin, Excessive Amount Of Aflatoxin

6 The reputation of the Chinese companies has negative impact. Local consumers are reluctant to buy domestic infant formula but turn to infant formula from the foreign companies. Many countries authorities have issued a alert and put a ban on all types of dairy products from China. Chinese parents start to smuggle the infant formula from other developed countries.

7 Affected other countries' resident to obtain milk for their babies. Barred the sales of infant milk formula to Chinese parents. Restricted the Chinese smuggling of baby formula.

8 Background Information Research Aim & Objectives Literature Review Preliminary Research Interview Analysis Summary Future works

9 1 Quality management systems and their implementation. 2 Key actors in the supply chain management process in production. 3 Barriers and drivers when implementing QMS. 4 Significant issues regarding governance, legislation, corruption, economic pressures. 5 Auditing the implementation of QMS and the measures taken by the companies.

10 QMS: ISO 9000 series, Six sigma, Lean management, TQM. Key actors: Farmers, Input suppliers, Credit sectors, Dairy processors and Government. Barriers: Lacking of quality supervision from Companies, Legal institution and Government. Drivers: Melamine incident, Customers awareness. Significant issues: legislation, Corruption, Shortterm economic profits.

11 Four famous and influential Chinese companies were selected and represented by the letter 'A, B, C, and D'. The market capitals are over 20 billion, and have altogether 39% of market share. Companies have complied with these new and revised quality management law. The qualitative data was collected by interviews from managers who are from different departments. Companies Category Area Ownership Market Capital ( billion) Market Capital (In 2012) Company A Liquid Milk, Milk Powder, Ice Cream Hohhot, Inner Mongolia State-owned % Company B Company C Company D Milk Powder, Milk Beverage Yoghourt, Liquid Milk, Milk Powder Milk, Milk Powder, Yoghourt, Cheese, Juice Beijing State-owned % Inner Mongolia Private % Shanghai Diversified ownership shareholding %

12 Analysis of various facets of the melamine issue and identification of corruption, economic pressure, governance and legal aspect. Unveiling the main inducement behind the issues. Investigating the relationship between QMS and Chinese baby dairy industry. Providing appropriate framework to help the Chinese dairy products companies to control the process of quality.

13 Batt, P. 2006, expanding the quality concept to satisfy consumer demand, published by Curtain University of technology, Perth. Chang, G. 2009, Total quality management in supply chain, international business research, volume 2, issue 2. Crosby, P. 1979, Quality is free, McGraw Hill, New York. Demining, W. E. 1986, Out of the crisis, MIT press. Enderwick, P. 2009, "Managing quality failure in China: lessons from the dairy industry case", International Journal of Emerging Markets, Vol. 4 Iss: 3, pp Ge, X. and Yang, Z. 2009, PRC food safety law and its impact on Chinese food Industry, published by Winston and Strawn LLP. Jacobs, A. 2008, "Chinese Release Increased Numbers in Tainted Milk Scandal." The New York Times. 2008, Chinese Release Increased Numbers in Tainted Milk Scandal, Available at: < Accessed on [17th May 2013] Kenneth, R. 2005, project quality management: why, what and how, By Fort Lauderdale, Florida. Ni, H. and Zeng, H. 2009, Law enforcement is key to China s food safety, International Journal of Quality and Reliability Management, Vol 157 (7), pp Wang, K. 2013, China Strengthens control over infant formula production, Ropes and Gray, China Life Sciences.

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