Healthcare Business

Food Makers Ask FDA For More Regulation: Target China

The Grocery Manufacturers Association is going to ask the government to strengthen regulation of food imports. The group, which includes Kraft (KFT) and Coca-Cola (KO) wants “beef up federal oversight of imported food and ingredients,” according to The Wall Street Journal.

While the group wants more reviews of farms and packing houses in the US, the obvious target for the request is China. GMA is “also seeking to increase the FDA’s funding next year by $200 million so its inspectors can travel overseas to examine plants.”

Some industry experts are surprised at the request for more review and regulation. But, it would appear that they are missing the point. By asking for broad regulation, GMA is expecting the FDA to catch tainted Chinese imports. That in turn makes food produced in the US much more attractive to consumers, which will tend to push up prices.

The GMA is no fool. It wants the US government to spear head a movement to push out Chinese competition to domestic producers.

Douglas A. McIntyre