Natural Products Insider

MAY-JUN 2018

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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62 INSIDER May/June 2018 While China is well-established in the production and export of goods, it is a large region, and each supplier is different. Some are honest, truthful, straightforward and more transparent than others. It is not always possible to go online and compare websites to determine who is the best partner. When working with partners in the region, it is important to bring up areas of concern early in the process, and establish a relationship of trust. Those looking to source ingredients from China should plan to visit the partners' facilities every two to three years, or more frequently, to ensure ongoing quality and compliance. Another area of concern is ensuring partners can provide a sustainable and suffi cient supply of ingredients. It is important to feel comfortable with the partnership long-term, while providing checks and balances to ensure quality, consistency and supply will continue over time. The customer should also understand the Chinese partners' long-term investments to ensure future operations and a sustainable future. It is important for brands to ensure supply partners in China are compliant with the regulations for the regions the brands work within. For example, U.S. companies should inquire about compliance with specifi c FDA requirements, as FDA monitors Chinese companies through FDA registration, random examinations at the port and in-person audits. FDA now works more closely with China Inspection & Quarantine (CIQ) to perform those duties. When sourcing ingredients from China, brands can take steps to help ensure trusted, long-term partnerships, material quality, consistent supply and transparency: Get referrals from other trusted industry members. Determine who is supplying the main industry players. Ask the right questions from the start. Visit the production site as often as possible. Ensure suppliers comply with certifi cations, when applicable, and regulations. Perform regular audits. Regularly test random ingredient samples. Elaine Yu is president of Layn USA (layncorp.com), a global leader in the vertically integrated production of premium- quality, plant-based sweeteners, fl avors and botanicals. China Sourcing NEW CHINA FOR FOOD CHEMICALS AND NUTRITIONAL INGREDIENTS 1995 2015 Now the game is changing. The Chinese government is treating the environmental problem as one of the most important political issues. The strict inspection and punishment measures will be long lasting. The environmental and manufacturing safety concern is real and has brought serious anxiety to most manufacturer owners in China. Due to the lack of alternative regions or countries to supply the ingredients, the whole world will face supply chain crisis and significant high cost products for the next few years. First of all, maybe half of the Chinese manufacturers will be forced to stop their production. Stronger Chinese manufacturers will have more influence for the supply chain. Customers of weak manufacturers will need to find alternative suppliers and the choice will be very limited. Secondly, the manufacturing cost will rise and be much higher. Reasonable pricing structure will be re-established. Lastly, supply chain alliance will form and become more and more popular. It's now a top priority to alliance with strong suppliers and manufacturers to secure the stable supply of the ingredients. With necessary advanced preventive action, PAT Vitamins is ready to take the challenge and emerge to be a much stronger nutritional ingredients supplier. WWW.PATVITAMINS.COM 1(626) 810-8886 China has spent more than 20 years to compete for manufacturing of basic chemicals, food chemicals and nutritional ingredients. With numerous failures and sacrifices, Chinese manufacturers have emerged as a superpower for the supplies of food chemicals and nutritional ingredients. For many of the ingredients, China has dominated the supply. As we experienced in the last 20 years, when Chinese manufacturers started to offer an ingredient, they always forced the price down. The whole world has benefited from the Chinese manufacturers for low cost ingredients for many years. Scan Here LEARN MORE about the Chinese market, and conn ect with ingredient buyers and suppliers at SupplySide China, at Area B, China Import and Export Fair Complex on June 28 to 30, 2018 in Guangzhou, China.

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