SHANGHAI — Chinese exports of foods including garlic, honey and fish fell sharply this summer as Beijing officials tightened health and safety regulations. That has meant increased revenue for some American growers whose products are now in greater demand -- but also higher prices for U.S. consumers.
Stepped-up enforcement by Chinese officials, who are trying to restore confidence in the Made in China label after a series of product-safety scares, has included aggressive inspection of certain food producers and new requirements in some cases, such as putting tracking stickers on every outbound box and increasing testing for a wider range of food- and soil-borne diseases.
In China's garlic capital in Shandong province, many of the larger exporters were forced to stop production during much of the summer while inspectors went through their plants and books. Some were ordered to install stainless-steel ceilings in factories and add new record-keeping systems. They said every container headed for the U.S. was being checked before loading, instead of 1 of every 15 or so, as before.
The result: Chinese garlic exports to the U.S. fell 39% in July from a year earlier -- a stark contrast to the 59% year-over-year increase in the first half of 2007, the latest Chinese customs data show. August figures weren't likely to be much different.
"It's a heavy burden for us, but we have no choice," said Yang Shenming, trade manager at Hongchang Fruits & Vegetable Products Co., which resumed shipping this month.
Yang, though, worries about the future. He said that before this summer he could fill an overseas order in seven days. Now it takes at least three weeks because of new inspections and lab tests. Among his added costs: dinner for government inspectors working late.
U.S. importers haven't reported quality problems with Chinese garlic. But Chinese officials aren't taking chances with some of their biggest food exports. China is the world's largest producer of garlic, supplying more than 80% of the crop imported into the U.S.
The influx of Chinese garlic in recent years has been a sensitive issue because it often sells for about half the price of U.S.-grown garlic. That's hurt farmers in Gilroy, Calif., the self-proclaimed U.S. garlic capital. But the latest slowdown in Chinese shipments has reduced supplies, pushing up demand -- and prices -- for California-grown garlic.
