Tuesday, January 19, 2010

Foods & the Consumers

Koperasi Pengguna Sabah Bhd.
Half Day Forum - Foods & the Consumers. 21 January 2010.

ISSUES ON FOODS & BRANDED FOOD PRODUCTS by Joshua Y. C. Kong


1. INTRODUCTION
This is a very big topic as consumers' products are so wide ranging available in the market place namely produces from the farms and the branded products from the factories.

Such consumers' products are also changing regularly depending on the supplies of the raw material and demands of the consumers.
When such products are changing and abundant new products are coming to the market places, how would the consumers and the enforcement agencies deal with such items?
So various issues arise for the consumers and others such as the competitors. This paper intends to bring awareness of the issues that all consumers and traders may face.



1.1 The Food Act 1983 and Food Regulation 1985 of Malaysia were implemented in September 2003.

1.2 Hazard Analysis & Critical Control Points (HACCP)
HACCP is a management system in which food safety is addressed through the analysis and control of biological, chemical, and physical hazards from raw material production, procurement and handling, to manufacturing, distribution and consumption of the finished product. Certification of Haccp and Halal (permissible) are natural partners in the protection of consumers.
1.3 Additional data on the nutritional value of certain foods need to be included on those labels. [see para 8 below]

1.4 Global foods labelling standards under a programme known as Codex Alimentarius (food laws or food codes) to achieve international harmonisation in food quality and safety requirements.
1.5 Biosafety Act on foods is to make the labelling of products mandatory for genetically modified (GM) /living modified organisms.[LMOs]


2. ISSUES need to be addressed [ not exhaustive]
Before we can address such issues aplenty, we must know what the likely range of issues coming to the market place and consumers have really no chance to deal with the issues adequately.

2.1 Market places
We must know that various market places present different sets of issues to different types of consumers such as Hypermarkets, supermarkets, sundry shops, cheap priced shops and the open markets. There are different sets of laws (sometimes unwritten) as far as the rights of consumers are concerned depending on where we do our shopping.

2.2 Products particulars
2.2.1 Product name
Choices of product are considered to the advantage of consumers and some product names are household names due to length the products have been established in the market place while some products are less known. The status of the products are easily identified by the prices we pay for such items off the shelves. Some products are placed in shelves at the right level of access to attract more customers. So product names are important to get more sales but beware some products names are designed by similar packaging cum colours and close names in their spelling yet the quality may differ greatly and the prices are almost the same. Some of these items are imitation and can be considered fakes.



2.2.2 Product accreditation
Consumers are reminded to look for official accreditation of products by the authorised authority in the types of product to ensure quality and reliability. Beware some accreditations can be fake ones. Not every items on the shelves are accreditated especially of foreign items.


2.2.3 Product description labels
There are various types of labels on the products. Some labels are printed onto the packaging of paper or plastic or tin or can or bottles. Some labels are loose ones just pasted onto the containers. There would not be problems if the labels are of fair sizes when the product sizes are reasonable.
When the product sizes are small, the labels would be small unless the labels are presented in separate piece of paper inside the package. So how many of us have the time to study those small labels with very small prints? Also some of the particulars of the labels are inadequate. Even with those particulars of contents or ingredients, how sure are we that those description are matched by the ingredients in the products? I wonder those recently withdrawn items alleged to have contained melamine could be partly due to deliberate added ingredients to enhance the weight [or boast up the protein content in the melamine] of the products but not identified in the labels, like some unscrupulous fishmongers or traders add little stones to their sales. Some label may not even tell the consumers the origin of such products. Some products may be manufactured in other places but marked made in the country of the parent companies having factories elsewhere as now known as outsourcing. There was once certain imported oranges were stamped certain famous brand by the importing country when such oranges do not come from the country famous for that type of oranges. That is a misleading market tool. This maybe still taking place as such similar oranges may give different flavours of the same brand but fake ones.
2.2.4 Product prices
The product prices are likely most sensitive especially since 2006 when prices of most branded goods have risen substantially across the board ranging from 50-200% and maybe some items to 300%. Also some prices of the same goods are varied from shop to shop including hypermarket and supermarkets. How would consumers approach such issue as business people can decide on the pricing mechanism? Most complaining would fall on deaf ears as consumers are generally weak in the present system. There are also instances where the some selected products are shown slightly lower prices on the shelves but when we check those items out at the cash counters, the machine may register the original higher prices in the prices bar code. How many consumers would remember their reduced prices when many items are purchased at the same time? Some shops would have their prices tags on each item on the shelves but some shops would only their prices on the shelves and each item would have the barcode slip. Consumers should be very careful when making such purchases as some barcode slips have higher prices registered on each item.
2.2.5 Expiry date
The expiry dates are not prominently displayed on the products hence how many would have the time and make the effort to ensue that we buy time valid products? The assumption would be that the products on the shelves would be still yet to expire especially those bottled and canned items. The problem for consumers is that many items we buy are not used instantly but over an extended period of time depending on the size of the family. So most of us could be consuming expired goods at home. Many people also buy unprescribed pharmaceutical items off the shelf in some shops and such items are only required at home when necessary. Common items like painkillers are only required once in a while and so most of these items once expired can become ineffective. When we consume such freshly manufactured items in the western countries, they are very effective to solve our headache or pain.
2.2.6 Quality of Products
Quality of products is a very complicated issue because of assumption based on what we know and when certain ingredients of the products are not known to us, the quality of these items would be jeopardised. We need to be equipped as developing country and once third world and consuming countries of possible dumped products without our knowledge to examine all products regularly with the latest technological instruments and procedure.
The quality of the products are called into questions with such items such as genetic engineered products, overdose of preservatives including approved ones, contaminations of hazardous items like melamine and dioxin and other prohibitive items including illicit drugs but not likely revealed in the labels, synthetic items rather than natural items like vitamins and minerals supplements, contaminated by unhealthy processes; and worst is that wheat or rice is still wheat or rice even these items had gone through genetic engineered process for better productivity within shorter time of maturity. I believe it is hazardous or valueless to consume some foods when not properly matured. So the labels should list genetic modified ingredients if used in food products. The problem may arise when the manufacturers may not be aware that the ingredients they used are genetic modified items. We can distinguish the differences of good foods and fruits by its flavour or aroma when matured or cooked. Some fruits and vegetables can be eaten raw but the value of some of such items are only good when matured properly. We need to do much more research to establish such facts and nature also can teach us much more if we care to explore them.
Some of the products can be contaminated by the various ingredients of source materials which may be planted in poor and degraded over used soil. The plants may suck in such toxic material including melamine from the soil. We have to ensure that the palm oil grown in heavy chemical soils such as fertilizers and pesticides do not suck in such chemicals resulting in toxicity in biofuel to pollute the highways. Palm oil as a food ingredient may not harm us as we only consume a small amount daily. Some fruit and leafy vegetables grown on poor quality soil enriched by artificial fertilizers (not organic ones) and pesticide buried in the soil do give a hardened texture with poorer aroma. I don't think the quality of food products would improve even relying on the Foods Acts 1983 and the Biosafety Act 2007.
2.2.7 Marketing and Advertisement
We are very tempted by the way goods and products are marketed like special offers with low prices plus extra one in a certain pack. Why do we think the manufacturers do that? Also advertisment in the mass media also influence the way we spend our money and in most cases on things that are not essential. Many are tempted to give those advertised items a try such as cigarettes and coca cola or pepsi cola. But are we not paying for the costs of advertisement hidden in the pricing policy of those advertised items?
2.2.8 Obsolete/ extinct items
Due to changing technologies, some products may become obsolete and so we need to update the traders and consumers not to be trapped in such scenarios. While physical items like the typewriters as an example how many would be still using them except that the computers would be unlikely to be abandoned by reasons of alleged excessive radiation which is not the case at the moment. There are seasons and cycles of some products in line with modern day trend of supplies and demands. We are told that our staple food items are reduced to 3 major items now.
3. Market mechanism on prices
3.1 Price Controlled Items
Our substantial spending goes into price controlled items daily and more so during festive seasons. How much is that true that price controlled items are effective and value for money in term of quantity and quality because different operators would have different costs factors? Do you think in the long term price controlled items are beneficial to the consumers when supplies and demands are factors to be considered in the context of food security and safety? Take the fuel as an example, the prices in the market have now exposed the distorted situation in our subsidized system. Price control on food items would also likely face similar fate and may be too late now with the system in the nation. We need to handle the Food and Fuel Prices Upheaval (FFPU) now with appropriate measures statewise, nationwise and globalwise and deal with the corruption as one of the root causes of rising prices.
3.2 Monopoly and price level
Monopoly of goods and products has also reared its ugly head now in FFPU. With monopoly over an extended period without adequate supplies, the price level would be determined by the monopoly operators and forced on the consumers. The rice commodity is now a classic example and how can we do away with the monopoly in our system when the monopoly is over a fixed long tenure?
3.3 Sales items or low priced ones or special offers
Are these special offers an issue of consumerism or a marketing tool or both? Should we or should we not encourage such practices especially those imported fresh fruits likely damaged in transit from the trees to the market place due to poor handling and storage but they are still edible. Some of them do not look good on the outside and inside such fruits are value for money. Actually some fruits do look good from outside (pay full price) but inside rotten black. How do we complain to the traders concerned about that as how do we confirm that the fruits come from that particular shop and also more costly process to bring the rotten ones back to the shops?
4. Energy impact on the consumer products
How would we minimise the impact of rising costs of energy and transportation in our consumer products especially those in the trade of frozen foods and restaurants in the context of bulky purchases and retaining their quality in storage? We need to implement a strategy of cost savings and energy conservation.
5. Environmental impact on the consumers products
Climatic changes for the worst with rising global temperature should be addressed in the context of green economy when the environment degradation can affect the quality of our raw materials in food products while supplies would likely dwindle in such natural habitat. We should examine all the processes of the finished products from the source of raw materials to the end users or consumers so that the environment is sustainable.
6. Credit terms of suppliers.
Terms of consignments from the suppliers of finished goods and farm produces including credit terms would impact the profitability and competitiveness of the traders to benefit the consumers. When there is a credit squeeze, many businesses may find healthy cash flows a tough challenge when margins are further reduced to sell the goods.

7. Some specific monitoring of products
We know that it is comforting for ourselves that we need to do monitoring of the products but it is easier said than done. We know with the FFPU, the quality and quantity of most products are questionable but how do we deal with those unbranded items which are also our daily essential items of foods.
While we may monitor on the food safety on a range of items not to be left solely to the relevant authorities, consumers including traders need to have a better organised approach in place hence CASH had initiated Food Action Safety Team (FAST) to do that in early 2007 but aborted due to lack of support financially and interests although the desire of most consumers is there. We need to activate FAST to enable our foods are safe in term of quality and biosafety. FAST should be focussed on both the requirement of the Foods Act 1983 and the Biosafety Act 2007 simultaneously. I believe that are practical shortcoming when foods are taken separately for examinations not at the same time under these two acts. Samples of such food items may not be available when both Acts are activated on suspicion of violations.
FAST can be guided by both domestic and foreign guidance as there are many suitable websites on food quality, quantity and value on a range of issues. Such useful websites are Foodnavigator-usa.com, foodproductiondaily.com, Ap-foodtechnology.com, Foodqualitynews.com, Nutraingredients-usa.com, http://www.foodtest.co.uk/, foodanddrinkeurope.com and other newsletters such as Innovations in Food Safety & Instrumentation - Twice monthly Newsletter and
Food legislation - Twice monthly Newsletter.
8. Samples of labels
It is about the standards of such labels for foods items. See from the two samples I attached here.
9. Some specific action on complaints
Newspapers, Complaint Bureau - Federal and State, .Ligitation, Arbitration, Consumers Tribunals, The Courts are some of the avenues to resolve any trade disputes for the suppliers, traders and consumers. But each avenue has its own set of challenges and risks of solutions. Some of the efforts of these choices can be costly pursuits with practicality, time and costs to be properly considered.
CONCLUSION
We need to do a lot of consistent work on the enhancement of the quality of the products with the matching quantity so that they are value for our money after we are conscious of the challenges in strengths, weaknesses, opportunities, and threats. When we only react on something like melamine detection at a critical stage, we can see how different people including people in authorities are telling us various things at different times , especially we were told a few years back about the fake baby milk powder in China. Another example was the madcow disease Bovine Spongiform Encepalopathy (BSE) in Europe, when professional people were in debates for a decade in mid 1970s over certain findings when some claim such findings as inconclusive but when the final moments came it was too late to avoid the disasters as the incubation period matures. Mad Cow Disease was a new disease entity that first came to the attention of the health community in 1986 when an epidemic of the illness erupted and killed more than 100,000 cows in Britain and also human affected by what is known as Creutzfeldt-Jacob Disease (CJD). In the globalisation era, we need to keep abreast with developments doing concerted research and development ourselves and there are very much we can do with the level of education we have attained.
Thank You.
Notes:

Koperasi Pengguna Sabah Bhd.

Joshua Y.C. Kong