Natural Products Insider

SEP-OCT 2017

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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50 INSIDER September/October 2017 Over the past 30 years, much has changed in the way products are sourced, manufactured, tested and distributed. Many are unaware of the fact that post World War II, the U.S. government undertook policies that sought to relocate "dirty industries" to foreign lands, presumably with the best of intentions to help restore the economies of former enemies who had been decimated by years of confl ict and disruption. Most amino acids and other fi ne chemicals that were produced in North America for inclusion in dietary supplements are no longer produced in the United States. In addition to the presumably altruistic motive of post-war America, the publication of game-changers like "Silent Spring," the formation of the Environmental Protection Agency (EPA) and the passage of various pieces of environmental legislation protecting the air and water resources affected the appetite to produce these products domestically because of the potential environmental hazards. The oil-embargo suffered by the United States in the last century demonstrated potential weaknesses in the industrial landscape of America, and called into question the wisdom of heavy industry requiring substantial energy and natural resources. The 1980s saw a further reconfi guration of the industrial landscape of America with business schools heaping praise on the just-in-time inventory management systems espoused by the Japanese titans of industry. Adding further depth of obstruction to American production were the layers of permitting processes required before production facilities could even be built. Also in the same time, the fi nal decade of the last century witnessed the rise of China, which had emerged from its largely four-decade descent into the totalitarian centralized planning protectionism of Maoism, and entered the global marketplace as the prominent low-cost producer of just about everything. This development happened to coincide with the settlement of one of the largest price-fi xing cases in the history of the health and nutrition industry, involving various multinational companies that manipulated market conditions to artifi cially set prices at "agreed upon" levels. Because of this sordid event, many of the companies affi liated with that activity are no longer key players in the industry, or have been merged or sold off to other parties. Therefore, in just about the span of a generation, the world has completely changed for those of us in the dietary supplement space. No longer are commercial Raw Material Sourcing in a Global Supply Chain Essentials for dietary supplement manufacturers by Mark LeDoux Contract Manufacturing: Ingredient Sourcing

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