According to a report commissioned by the Coca-Cola Retailing Research Council Asia and prepared by McKinsey & Company, retailers in Asia should be more active in setting standards for food safety and freshness. To contain threats, retailers need a management framework for their entire supply chain. Retailers should also focus on so-called “hot spots,” where the biggest risk exists, and implement proactive leadership. According to a survey of 40 managers at 17 leading food retailers in the region, the three greatest threats to the safety of fresh food in the region are residue chemicals, microbe contamination and spoilage, and veterinary diseases. These are the top three threats across all Asian nations for meat/poultry, fish/shellfish and fruit/vegetables. However, Asian countries differ as to their stages of development, including supply-chain configuration, and producer and supplier sophistication. Korea, Japan and Australia are advanced, while Thailand, Taiwan, Hong Kong, Singapore and some of China’s largest cities are mid-way. “Hot spots” vary by the development of the market. The top concern for retailers in emerging markets is the use of harmful chemicals.

Source: US Department of Agriculture