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New Standards for Uses of Food Additives Probably to Affect Corn Products Little Summary: Standards for Uses of Food Additives 2011 to take effect from 20 June 2011 may have little effect on some corn products. Tag: CCM, China, corn products, food additives, citric acid, xanthan gum, lactic acid, erythritol, melamine, clenbuterol, food safety, consumption, Standards for uses of Food Additives June 22, 2011, CCM - It is reported that Ministry of Health of the People's Public of China published new Standards for uses of Food Additives (GB2760-2011) in April 2011, which will take effect from 20 June 2011. Compared with its previous edition Hygienic Standards for uses of Food Additives (GB2760-2007) taking effect from 1 June 2008, there's not much change regarding some corn products which can be used as food additives in GB2760-2011, like citric acid, xanthan gum, lactic acid; thus it's believed that GB2760-2011 will affect corn product industry little, according to CCM’s June Issue of Corn Products China News. GB2760-2011 is a major and the most important standard of food additives in China, ruling the varieties of food additives can be used, their application areas and maximum usage amount, and all manufacturers and users shall follow this standard. The biggest change between GB2760-2011 and GB2760-2007 is regulations on flavours. According to GB2760-2011, flavours can't be added within stipulated application areas and maximum usage amount. Restrictions on application area and maximum usage amount of some corn products are relaxed in GB2760-2011 compared with GB2760-2007. The June Issue of Corn Products China News also indicates that some experts consider the demand for these corn products may not skyrocket in the near future, although the restriction is eased. That's because it's not easy for food processors to adopt new food additives in the short run. What's more, the restrictions on the products are not relaxed to a large extent except erythritol. As an emerging sugar alcohol, erythritol can only be used in candy, cake, chocolate products and most beverages, according to GB2760-2007. Thanks to outstanding properties like being low-calorie and anti-tooth decay, its reputation has increased. Now, GB2760-2011 largely extends erythritol's application areas, which can increase its demand to some extent. Several food safety scandals have occurred in China since the melamine scandal in 2008, like clenbuterol in pork in March 2011, poisonous bean sprouts in April 2011, steamed buns containing illegal yellow coloring in April 2011, all of which are caused by illegally adding harmful food additives. Chinese public pay much attention to food safety and food additives, and they are losing confidence in homemade foods. This situation calls for the government's strengthened supervision of food additives. Thus, the new standard, GB2760-2011, must be guaranteed to implement more perfectly than GB2760-2007 in the future, which may bring negative effect on the consumption of some food additives.

Source: Corn Products China News June 2011

http://www.cnchemicals.com/Newsletter/CornProductsChinaNews.shtml

Content of Corn Products China News June 2011:

Furfural export volume in Jan.-April 2011 significant increases Chinese corn products Imp. & Exp. analysis in April 2011 Corn starch price witnesses downtrend through June 2011 Lysine price increases in May and June 2011 VC export price keeps stable in Jan.-April 2011 Xiwang Sugar performs better than Global Sweeteners and Baolingbao in 2010 Meihua Group, Novozymes or to jointly research using cellulosic material to produce amino acid New Standards for Uses of Food Additives probably to affect corn products little Northeast Pharmaceutical to raise USD362 million mainly for VC technological upgrade and relocation Shandong Longlive's IPO for expansion approved in May 2011 DDGS price slightly increases in June 2011 Wheat becoming alternative to corn in Chinese feed industry

Editor’s Note

Along with some food additive scandals happening in recent years, Chinese government and the public are paying more and more attention to food safety issues, and food additive has become the spotlight. China’s new Standards for Uses of Food Additives begins to take effect on 20 June 2011; the supervision of its execution will be strengthened. This standard is believed to have little affect on corn product industry in the near future, because its relative regulations on corn products have small change compared with the previous edition. Besides, the significant increase in corn price since 2010 has imposed much impact on producers of corn products. In this issue, three leading players—Global Sweeteners, Xiwang Sugar and Baolingbao—will be taken as examples and through comparison of their 2010 performance it’s founded that they all witnessed decrease in gross profit margin in 2010 due to the obvious rise of raw material cost except Xiwang Sugar. Currently, corn price still runs at a high level and this uptrend may keep going on throughout 2011, thus producers of corn products will still encounter a big challenge this year.

Corn Products China News, a monthly publication issued by CCM International on 20th of every

month, presents the latest news of China’s corn deep processing products to reveal the driving

force of the event and deeply analyzes the influence of the event on domestic and international

corn deep processing industry.

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