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SINGAPORE: The Singapore Food Industries, one of the largest food distributors and manufacturers here, is exploring the development of a disease-free food zone in China. It said that could help raise food safety standards there in light of the recent milk scandal.
Dairy products from China have been ordered to be taken off the shelves in the past week.
At the Singapore Food Industries, hundreds of candy bars are being quarantined until further notice from food authorities. The company’s bakery business uses the candy bars and it will now source for alternatives from Singapore suppliers.
The company, which has an annual turnover of S$250 million in Singapore, does not expect the product recall to have any impact on its bottom line.
As cities become more urbanised, the company said a key challenge ahead is in securing diversified sources of safe food. To that end, it hopes to champion a disease-free food zone in China.
The company is in preliminary talks with Chinese government officials on investing in such a zone which will have comprehensive food safety measures.
The zone could be as large as the size of Singapore and it is likely to rope in business partners when plans are firmed up.
Roger Yeo, CEO, Singapore Food Industries, said: “This cluster champions will actually put in the quality control system through different levels of the value chain, its feed, its grandparent stock, its breeders, its abattoir, its processors and the output at the end."
On the whole, the China milk scandal is not expected to raise costs in Singapore.
Wong Mong Hong, deputy president, Singapore Food Manufacturers' Association, said: "Most of the manufacturers here buy their dairy products from Australia and New Zealand. China is not a major exporting country so the quantity of export especially to Singapore is negligible."
Similarly, the Consumers Association of Singapore does not have immediate concerns but it will monitor the prices of milk-related products in its regular price survey. - CNA/vm
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