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China Briefings

Reports on China issued by Samsung Economic Research Institute

China Business Intelligence No. 173

China Business Intelligence No. 173

Samsung Economic Research Institute Beijing Office

Sept. 9, 2010

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Highlights:

A series of reports on contaminated food have raised issues of food safety control, undermining consumer trust. At the same time, the incidents have encouraged consumers, mostly the high-income class, to purchase imported food through other channels. Some sought to purchase imported goods and others resorted to organic farms. As a result, organic farms, which produce higher quality food and only sell to members, are mushrooming in province level cities. The foods are costly, but the customer satisfaction rate in regards to the quality is high because the consumers join in the whole process including cultivation, growing and harvesting. As consumer trust is crucial in this field, organic food suppliers must make the production process public, while identifying and resolving issues as early as possible.

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