A century-old industry in Hsinchu, China, destroyed overnight? Director-General Cai Shengxing explains in detail

NewsMarket reporters / Exclusive interview with Wang Wen-hao and Lin Hui-zhen

Before the Lunar New Year, NewsMarket and the Consumers' Foundation exposed that the rice content of commercially sold rice noodles was low, with most made primarily from corn starch. The rice content did not reach the minimum 50% required by CNS11172, and many well-known brands did not use rice at all, drawing consumer attention and casting doubt on the century-old image of the famous "Hsinchu rice noodles."

Soon afterward, China's Xiamen Evening News, Hong Kong's Apple Daily and other media within the Chinese culinary cultural sphere also investigated local rice noodle products and separately found that whether Taiwan-exported or locally counterfeited "Hsinchu rice noodles," the rice content was scarce, including products from well-known Taiwan food brands.

Of the more than 30 rice noodle manufacturers across Taiwan, 19 have joined the Hsinchu City Rice Noodle Manufacturers Association (abbreviated "Hsinchu Rice Noodle Association"). After the "fake rice noodle" incident broke out, although some members of the Hsinchu Rice Noodle Association expressed dissatisfaction, complaining that the government never counsels or cares about the rice noodle industry and readily threatens legal penalties, and even jokingly called NewsMarket, which exposed the fake rice noodles, "left-right confused," a few members insisted on producing 100% pure rice noodles and facing consumers honestly.

Hsinchu Rice Noodle Association director-general Cai Sheng-xing, after the fake rice noodle incident broke out, immediately and decisively apologized to consumers and demanded that members remove and recall products. But facing subsequent pressure from all sides, he admitted that these three-plus months had often kept him from sleeping well, worried that the century-old foundation built by Hsinchu rice noodles would be destroyed in an instant. He could not help but cry out:

Recently we have come under pressure from all sides. What we want to say is that [rice noodles are not just rice noodles]. They are a brand that Hsinchu rice noodle makers have built over many years, and also a representative of an important flavor worldwide!

How much time does it take to cultivate a century-old industry? How much time does it take to destroy a century-old industry? Have you in government thought about it? With criticism coming from many quarters at the meeting, how hard it is to speak up for a century-old industry! …. So the "Hsinchu rice noodle industry" is that miserable? We provide cheap (suitable) ingredients, (Chef A-ji's NT$59 Singapore-style fried rice noodles), yet all of it is wrong? Is there really any consumer harmed?

As director-general of the Hsinchu Rice Noodle Association, Cai Sheng-xing's sources of pressure include complaints from association members that after the fake rice noodle incident broke out, products faced claims from retailers, contract-manufacturing brands and traders, and revenue was hit, as well as criticism that the current national standard for rice content in rice noodles is outdated; there is also pressure from consumer protection groups and government agencies demanding that rice noodle products clearly label rice content and meet the national standard.

(Editor's note: According to CNS11172, products claiming to be "pure rice noodles" must have 100% rice content; "blended rice noodles" must have 50% or more rice content. Below 50%, they may only be called "blended vermicelli.")

A series of negative events has brought this century-old Hsinchu rice noodle industry to a crossroads: continue using large amounts of corn starch as the main ingredient? Or return to the true essence of rice noodles? How should the balance be struck between consumer rights and industry interests? NewsMarket reporters took the opportunity of a press conference held by the Agriculture and Food Agency to promote domestically produced pure rice noodles to interview Hsinchu Rice Noodle Association director-general Cai Sheng-xing on where Hsinchu rice noodles should go from here.

Cai: The so-called "rice noodle incident" is merely a problem of false labeling

Q: What impact has this fake rice noodle incident had on Hsinchu rice noodles?

A: This time the impact on us has been great. For example, products were removed and recalled from stores, and some demanded compensation from manufacturers. If this continues, it is no longer a question of whether the government will fine us; we have already paid a heavy price.

Q: After the incident broke out, what did the association do? Where do you think the problem lies?

A: Basically, it is just a problem of false labeling. At the first opportunity, we asked association members (meaning manufacturers that do not make pure rice noodles) to remove wording on packaging about pure rice or being made from 100% indica rice. At present, such (falsely labeled rice noodles) can no longer be seen on the market.

As for the false labeling, members are already working hard to correct it. There may still be some visible on the market, but manufacturers are working very hard to change.

Q: The fake rice noodle incident was not only in Taiwan; mainland Xiamen and Hong Kong media both reported on it, and Xiamen media even wrote that the method of making rice noodles with corn starch came from Hsinchu, Taiwan. As a Hsinchu rice noodle manufacturer, what is your view?

A: In fact, tracing back and asking the elders, at the beginning everyone made pure rice. In the 60s of the Republic of China [1970s], our country established diplomatic relations with South Africa, which produced corn, and to consolidate diplomatic ties the government imported South African corn flour (meaning corn starch). After manufacturers added it, they felt the (rice noodles) seemed a bit more chewy, and later began producing it that way.

(Rice noodles with added corn starch) seemed to get a good response from the consumer market. The market demanded that rice noodles be a bit longer, not so short, (meaning pure rice noodles break easily). This path (meaning adding corn starch) looked like it had stronger consumer demand, so manufacturers produced more, but they did not give up producing pure rice vermicelli either. Otherwise, pure rice vermicelli would be completely unseen on the market now, yet some people still want to eat that.

In fact, manufacturers very much like selling pure rice vermicelli. Although it is labor-intensive, the profit is a bit better. For example, corn flour (meaning corn starch) is 20 yuan per kilogram, and I (make it into "rice noodles") and sell it for only 25 yuan, so the profit is only 5 yuan. But I buy rice for 26 yuan, make it into (pure rice vermicelli) and sell it for over 40 yuan, which is of course better.

But (pure rice noodles) now appear to have somewhat weaker consumer demand, so we need to promote consumption of (pure rice noodles), but step by step. We continue to promote pure rice vermicelli and have never given up, but once a large retail store stocked two boxes, and after a year only half a box had sold, so the next year it was taken off the shelves.

Pure rice noodles are priced high, but consumers do not support them?

Q: According to the CNS standard, there are pure rice vermicelli with 100% rice content, blended rice vermicelli with 50% or more, and blended vermicelli with less than 50%. What are the price differences and market shares of these three products?

A: The price difference is about threefold. Taking 250 grams of rice noodles as an example, blended vermicelli with about 10% rice content sells for about 30 yuan, that with 50% rice content for 60 yuan, and pure rice vermicelli for 90 yuan. At present, about 80% of the market is blended vermicelli, and there are seven pure rice manufacturers.

Q: Where do you think the biggest difficulty in promoting pure rice noodles lies?

A: The Consumers' Foundation survey found that the current mainstream (rice noodles) on the market contain 80% corn starch and about 10% rice. It is no problem to switch back to producing pure rice vermicelli now, but it needs to be promoted slowly. For example, the Agriculture and Food Agency has promotion plans so that more and more people know about pure rice vermicelli and more and more places can buy it. Only then can this industry have a chance to be supported.

But now (rice noodle manufacturers) worry that if suddenly you give all pure rice noodles to (consumers), they will not want them either, especially outside-dining chefs. They, the chefs, (keep stressing that) consumers' acceptance of the texture of (pure rice noodles) is not that strong, because first it is expensive, and second the texture is only passable. What everyone knows as "rice noodles" is this current 80% (corn starch) thing.

Blended vermicelli not allowed to be labeled Hsinchu rice noodles will confuse consumers?

Q: Then according to the current CNS national standard, would promoting graded labeling of pure rice noodles, blended rice noodles, and blended vermicelli allow consumers to choose true rice noodles?

A: Changing it in just a day or two would leave consumers at a loss. The whole consumer market is starting to get a bit chaotic now. Whether to change the labeling or not, manufacturers have discussed a great deal.

It is not to say that we manufacturers of the current 80% (meaning producing corn starch vermicelli) are all bad. (Changing the labeling) would make this consumer market very chaotic, and even give away the product name "Hsinchu rice noodles" directly to others (meaning mainland China or Southeast Asia), which we manufacturers absolutely cannot accept.

Our greatest ability is to preserve the flavor of rice noodles, because the flavor of rice noodles was created by Hsinchu and by Taiwan. Now the rule (that rice content below 50%) means all such products must be called winter vermicelli (meaning labeled "blended vermicelli," with winter vermicelli in parentheses afterward). We are Hsinchu rice noodles yet also written as blended vermicelli, which will confuse consumers even more, because what consumers clearly recognize is rice noodles, even if (the rice content is only) 10%.

(The government) now says sorry, this is winter vermicelli (editor's note: according to CNS1484 item 2, winter vermicelli refers to the common name for "mung bean vermicelli"). This only causes confusion. It is not better for consumers, not better for the government, and not better for manufacturers. Then what is better? Discuss it.

We (Hsinchu rice noodle manufacturers) can comply with the national standard right now, but the golden signboard "Hsinchu rice noodles" cannot be removed, because if we remove it, (the Hsinchu rice noodle brand) will be handed over to manufacturers in mainland China and Southeast Asia. The elders are still here; how do we (face them)? This is where we manufacturers find it difficult.

Q: On the market some well-known rice noodle brands are also labeled "Hsinchu rice noodles," but they are neither produced in Hsinchu, and their rice content is very low or even nonexistent. How does the association handle this?

A: As long as the name bears "Hsinchu rice noodles," our association will supervise it. If problems are found, we will send a formal letter. Although they may not be association members, as long as they label it "Hsinchu rice noodles," we will not let manufacturers add harmful substances and ruin the reputation of Hsinchu rice noodles.

What exactly is the starch added to rice noodles?

Q: A while ago legislator Lin Shu-fen held a press conference questioning that the corn starch currently used by rice noodle manufacturers is generally chemically modified, and that long-term consumption as a main ingredient would affect health. What is your view?

A: I want to clarify that absolutely no member of the Hsinchu Rice Noodle Association has ever bought modified starch. Suppose corn flour (meaning corn starch) is 20 yuan per kilogram; after modification the cost must rise, possibly to 25 yuan per kilogram. At that price you could buy rice, so why would we still buy modified starch? Moreover, the modified starch companies tell us, you do not need any technique at all; just add water to my starch and mix it and you can make rice noodles. We are professional rice noodle factories; why would we leave the technique in someone else's house?

The corn starch we buy is all original-packed, original-factory, original packaging bags, and will not be adulterated. Only when buying rice grain flour can adulteration occur. I dare to guarantee that absolutely none of the Hsinchu Rice Noodle Association members buy chemically modified starch, because our member manufacturers supervise themselves and also engage in technical exchanges with one another. If your house hides something, we all know.

(Editor's note: While Cai was being interviewed by reporters, Agriculture and Food Agency inspector Song Hong-yi, hearing Cai's statement, said nearby, "A lot of imported corn starch nowadays has already been modified. They may write pure corn flour, but in fact they already modified it at the original factory in Thailand or Vietnam, though they will not tell you. We have done market surveys; in Taiwan, pure corn flour is less than 10%. You do not know that they already modified it in the exporting country; they only write corn starch on the import.)

Facing the Agriculture and Food Agency official's explanation, Cai Sheng-xing continued:

We do not study this, because modified starch is quoted at 5 yuan more, and the product name is written as modified. If it has simple modification, we do not know what they used to modify it. As for whether these modified (starches) can be imported, if they can be imported then they comply with Taiwan Department of Health regulations, and only then can we buy this thing from agents!

(Agriculture and Food Agency inspector Song Hong-yi: Right, the point here is not whether it is modified. What consumers cannot accept is that your rice noodles contain 1% rice and you tell me this is called rice noodles. Consumers cannot accept that. You can say this is called "vermicelli." There is another hidden concern: rice noodles given to diabetes patients are impure, which will make the patients' diabetes worse. So we actively promote the CAS certification mark for rice noodles, requiring rice content of at least 50% or more. Do not say below 50% and still use the two words rice noodles; that is extremely unfair to diabetes patients.)

Ahead of Department of Health regulations, Hsinchu Rice Noodle Association will implement graded labeling

Q: We know that in order to distinguish itself from inferior "Hsinchu rice noodles" produced in other regions, the Hsinchu Rice Noodle Association has designed an association-exclusive"certification mark." What are the rules for authorizing use of the mark? Does it require that rice content reach 50% or more?

A: Rice noodle manufacturers must be association members to apply for the mark. We not only test whether rice noodles are adulterated with bleach or preservatives; we require manufacturers applying for the mark to provide inspection reports, and we also actively send products to the Food Industry Research and Development Institute and SGS (editor's note: Taiwan Inspection Technology Co., Ltd.) for testing, and we also inspect factories. So this time no harmful substances were detected in Hsinchu rice noodles; there was only false labeling.

But at present the mark does not mandatorily require rice content, because many in the rice noodle association are old manufacturers; they are both boss and employee, doing even the sweeping themselves, and they run their businesses very hard.

We promote the Hsinchu rice noodle certification mark only to promote and guide manufacturers to label clearly and guarantee product safety. This is called manufacturers supervising manufacturers. Because if a manufacturer is found to have put in something bad, a fine is a small matter; the other manufacturers will all push back, because you ruined our signboard, and your company will not be able to keep operating.

Although the rice noodle industry has limited profit, we stress honest sales. If you sell pure rice noodles, then there is the price of pure rice noodles; if you sell blended rice noodles, then there is the price of blended rice noodles.

This time we are very sorry that the labeling did not let consumers see clearly. Our association will next follow the CNS national standard and divide rice noodle labeling into three grades. This incident will speed up our implementation of a graded labeling system for rice noodles.

Cai: Within one month, convene a national rice noodle manufacturers conference to discuss the "greatest common denominator"

Q: What is your view on the Food and Drug Administration of the Department of Health's delay in adopting the CNS national standard for rice vermicelli?

A: This incident has hurt us deeply. For example, products were removed from stores, and the stores also felt their reputation was damaged and demanded compensation from us. Even if the Department of Health does not fine us, public opinion has now formed, and the pressure on us is still great. Therefore we hope to convene a national rice noodle manufacturers conference to discuss the "greatest common denominator" for rice noodle standards.

We also greatly respect the Food and Drug Administration of the Department of Health for being willing to sit down with manufacturers to discuss the greatest common denominator for rice noodle standards and how the rice noodle industry should proceed in the future.

(Editor's note: Legislator Lin Shu-fen specially held a "Insufficient rice content in commercially sold rice noodles" press conference on April 2. Food and Drug Administration director-general Kang Chao-chou also said that on rice noodle standards he would find manufacturers to discuss and "obtain the greatest common denominator." Kang Chao-chou cited almond tofu as an example, asking rhetorically whether almond tofu is based on almond or tofu. Kang Chao-chou believed that rice noodles of course should be based on rice, but not calculated by weight, so the standard still needs more detailed discussion.)

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