Destination of Yongcheng feed oil unclear; Jiang Yi-huah explains food safety improvements: heavy penalties, segregation, traceability

Amid the ongoing food safety turmoil, Premier Jiang Yi-huah of the Executive Yuan personally held a press conference this afternoon to explain in person the food safety measures he had proposed on September 17, which include 8 major measures: heavier criminal penalties and fines, higher whistleblower rewards, a central whistleblower hotline, segregated management of oil products, waste oil recycling management, implementation of three-tier quality control, food traceability and tracking, and reform of the food GMP system.

Regarding the more than 30,000 tonnes of feed oil whose whereabouts are unknown, which the public has questioned, Wang Cheng-teng, deputy chairman of the Council of Agriculture, explained that the main problem with this more than 30,000 tonnes of unconfirmed oil lies with Yongcheng, because Yongcheng is the manufacturer that imported the largest volume from Da Xingfu and has dealings with 97% of downstream feed industry operators. After deducting the portion that flowed to Zhengyi and Ting Hsin, 82% of this more than 30,000 tonnes was used by feed mills.

However, a comparison of data from the Ministry of Finance and the District Prosecutors Office found that, besides Da Xingfu, Yongcheng also imported oil from other places. Therefore, apart from the 82% of this more than 30,000 tonnes used by feed mills, there are still many tonnes of oil that cannot be matched up, and no conclusion can be reached at present.

Flow chart of feed oil from Chiang Kuan and Hsin Hao to Zhengyi and Ting Hsin (three slides in total; can be enlarged for reading or downloaded below)

More than 30,000 tonnes of feed oil with unknown whereabouts mainly went downstream to Yongcheng; apart from feed use, the rest has not yet been clarified

Jiang Yi-huah said that over the past month or more, the concrete achievements so far include: segregated management of edible, feed and industrial oils; restricting and banning the import of waste oil; increasing and issuing special whistleblower rewards; implementing first-tier self-management quality control for edible oils and a traceability and tracking system; and conducting a comprehensive inventory of waste cooking oil and establishing a control mechanism. Regarding the food GMP system, a review has now been completed and a concrete transformation plan proposed, under which it will be handled by the private sector with strict government oversight. In addition, the Food Safety Office will coordinate and supervise food management measures and continue to push forward. It is expected that by the end of the year, inspection operations will be completed for all 258 edible oil and fat factories nationwide; in the next stage, the government will also inspect the raw materials of various livelihood commodities.

The public still has many doubts about the more than 30,000 tonnes of feed oil whose whereabouts are unknown. Wang Cheng-teng, deputy chairman of the Council of Agriculture, said that from ROC year 99 to the present, Taiwan imported about 72,000 tonnes of oil from Da Xingfu. Of the 10 importing manufacturers, 2 food manufacturers used 10,000 to 20,000 tonnes, and the remaining 48,000 tonnes flowed to 8 feed oil operators. However, these 8 also include Yongcheng, which used part of the feed oil in edible oil. The remaining 6 importers of feed oil were found upon inspection not to have used it for food, accounting for about 10,000 tonnes. Because Yongcheng also imported other oils and fats, there are still many tonnes of oil that cannot be matched up, and no conclusion can be reached right now.

Draft amendments to the Act Governing Food Safety and Sanitation encourage reporting of wrongdoing; rewards raised by 50-60%

On September 25, draft amendments to certain articles of the "Act Governing Food Safety and Sanitation" were sent to the Legislative Yuan for review, in order to increase criminal liability, fines and administrative penalties, and on October 16 they completed review by the Social Welfare and Environmental Hygiene Committee, with 8 draft articles amended and passed and 19 articles reserved for cross-party negotiation. Regarding the increase in whistleblower rewards, Jiang Yi-huah pointed out that for the farmer who reported the tainted oil of Kuo Lieh-cheng in Pingtung this time, the central government issued a special reward of 2 million yuan, and will also issue a reward of 500,000 yuan to Mr. A in Tainan.

On November 5, the Ministry of Health and Welfare amended Article 4 of the "Regulations Governing Rewards for Reporting Cases of Violating Food Sanitation", raising the amount of whistleblower rewards to 20% or more of the fine or administrative penalty, and some special municipalities have already raised rewards for major reported cases to 50%-60%, encouraging the public to bravely report wrongdoing.

By the end of the year, 231 edible oil manufacturers with capital of less than 30 million yuan are expected to be inspected

On October 31, the Ministry of Health and Welfare completed inspections of 27 edible oil and fat factories with capital of 30 million yuan or more. Among them, Zhengyi, Chiang Kuan, Tatung Chang Chi and Ting Hsin have already ceased operations, and another 1 is a feed mill and 1 produces lard for its own use. Among the remaining 21, some factories had deficiencies in GHP, and local health authorities have ordered the operators to make improvements within a deadline, with those failing to improve to be dealt with according to law. In addition, it is expected that by December 31, inspections will be completed for the subsequent 231 edible oil manufacturers with capital of less than 30 million yuan.

Segregated management of imported oil products implemented from November; food and non-food factories must have separate plant sites

From October 31, segregated management of imported oil products was fully implemented. Imported oils and fats are divided into edible oil, feed oil and industrial oil, all of which require approval from the competent authority and control of their flow, and imports under code CCC1518.00.50.00-2 are restricted. On November 4, the Ministry of Economic Affairs also stipulated that newly established factories engaged in food manufacturing and processing shall register as factories under Article 13 of the Factory Management and Guidance Act, their main products shall be limited to food, and they may not engage in non-food manufacturing or processing at the same plant site, so as to strengthen factory management and safeguard the public interest.

Edible oil and fat manufacturers with capital of 30 million yuan or more required to implement mandatory self-inspection

Jiang Yi-huah pointed out that three-tier quality control includes first-tier quality control through operators' self-management, second-tier quality control through mandatory third-party verification, and third-tier quality control through government inspection, sampling and evaluation. Edible oil and fat manufacturers with capital of 30 million yuan or more began implementing the mandatory self-inspection system on October 31. In addition, 5 major categories - aquatic products, dairy products, meat products, food additives imports and manufacturing, and special nutritional foods - will be subject to mandatory implementation by December 31. Furthermore, 8 major livelihood commodity manufacturing industries - starch, flour, sugar, salt, soybeans, wheat, corn and soy sauce - will be subject to mandatory implementation from July 104. From November 7, the food industry categories required to undergo third-party verification will be announced successively. The Executive Yuan has agreed to add 70 inspection personnel to the Food and Drug Administration of the Ministry of Health and Welfare, to be centrally dispatched to help local authorities strengthen food management.

GMP system retained; future label certification and verification to be handled by third-party verification bodies

In promoting food GMP reform, the Executive Yuan completed discussions with industry operators and experts and a consumer opinion survey on October 30. Opinions from all sides tended toward retaining the GMP system but reforming it substantially, and shifting it to private-sector operation with strict government oversight. The Ministry of Economic Affairs has carried out GMP transformation planning, under which future label certification and verification will be handled by third-party verification bodies accredited by the international TAF, while government resources will be used for oversight and inspection, implementing the three-tier quality control principle of "operator self-discipline, institutional verification, and government inspection."