Walmart China to triple food safety spending

Walmart China has announced it will increase its spending on food safety to 300 million yuan (more than US$48.3 million) in 2013, 2014 and 2015, up from a previously announced commitment of 100 million yuan for the same three years.

The company made the announcement at the kick-off for China’s 2014 National Food Safety Week while launching the Walmart campaign: “Food Safety: We all have a role to play.” The event was held at the Walmart Supercentre Jianguolu Store in Beijing.

“This increased investment reflects our growing commitment to enhance food safety management in the supply chain and in all our stores,” said Walmart China chief compliance officer Paul Gallemore.

Walmart China president and CEO Sean Clarke echoed the same mission: “We strive for our customers to have complete trust in the products they buy from us. All our efforts are aimed to ensure the authenticity, safety and quality of food for our customers in China.”

With the increased investment, Walmart will focus on several key areas to further improve food safety management over the coming years.

More supplier audits and tests

The company will perform additional testing and tougher standards for suppliers in 2014, increasing DNA testing on meat products by 100% and facility audits and inspections of primary producers by more than 30% from 2013. The number of facility audits and inspections of primary producers were up 50% in 2013, from a year earlier.

Walmart said during 2013, it performed more than 400 DNA test for meat products, close to 1,400 third party audits and inspections of farms, factories, processing centres, slaughterhouses, and more than 50,000 product tests in the company’s distribution centres.

Expanding fresh distribution network

Walmart now has nine fresh distribution centres across China. Products are tested at the distribution centres for compliance against safety and quality standards in a testing lab. Two additional fresh distribution centres will be added by the end of this year. Once they open, Walmart distribution centres will serve every Walmart Supercentre in China.

In-store monitoring technology

In stores, Walmart is planning to introduce the Sustainable Paperless Auditing and Record Keeping (SPARK) system to China. This technology has been used successfully in Walmart’s US business and provides timely monitoring of food storage temperatures through wireless temperature measuring devices.

Mobile labs, another food safety initiative by Walmart, are to be ramped up as an additional effort to protect customers. Last year, Walmart China’s first mobile lab conducted over 35,000 tests on food in stores in Guangdong.

Other measures include enhanced in-store food safety standards and strengthened stores auditing in its more than 400 stores across China. Walmart China said it will also establish a stronger compliance team and continue investing in supplier training.