In recent years, with the capital market heating up for prefabricated vegetables, numerous prefabricated vegetable enterprises have emerged. Consumer attitudes towards prefabricated vegetables vary, with some expressing concerns about food safety and others praising their convenience.
Recently, according to a report by China Newsweek, the draft of the national standard for prefabricated vegetables has been submitted, and results could be available in as little as six months. The most significant highlights include the prohibition of adding preservatives and the requirement for cold chain transportation. Additionally, the national standard for prefabricated vegetables may redefine the category, narrowing down the scope of existing prefabricated vegetables. Although the standard is still somewhat ambiguous, the two points revealed so far clearly address the public’s concerns about prefabricated vegetables in recent years.
What impact will the new standard have on the prefabricated vegetable industry and enterprises? Recently, Pengpai News interviewed relevant companies and industry experts. According to many industry insiders, the known content of the national standard seems more like a response to public concerns about prefabricated vegetables, alleviating the growing apprehension towards them. However, for companies, the new standard may lead to industry consolidation, removing some small and medium-sized prefabricated vegetable enterprises from the market.
Several listed companies engaged in prefabricated vegetable business responded: No impact on operations
On January 24, Pengpai News contacted representatives of several listed companies, including Delisi (002330.SZ), Longda Food (002726.SZ), Weizhixiang (605089.SH), Qianwei Yangchu (001215.SZ), Wufangzhai (603237.SH), and others, regarding their prefabricated vegetable businesses. All relevant staff members stated that the current content revealed by the national standard for prefabricated vegetables has no impact on their company’s operations.
“Because the company’s prefabricated vegetables are mostly frozen products, frozen products themselves require storage at minus 18 degrees Celsius, so these products basically do not need to use food preservatives,” said a representative of Delisi. According to them, the prohibition of adding preservatives may have an impact on products based on meat ingredients, but it does not affect frozen prefabricated vegetables.
Staff members from Longda Food also stated that the company mainly produces frozen prefabricated vegetables. Since frozen prefabricated vegetables require low-temperature storage and already demand full cold chain transportation, the company is already meeting the requirements of the national standard for prefabricated vegetables. “For frozen products, there may be some food additives within appropriate limits, but preservatives are not used,” said the representative. Generally, even for food additives, the range and quantity added comply with national food safety standards and regulations.
As the first listed company in the prefabricated vegetable industry in China, Weizhixiang’s representatives also stated that the company’s self-produced products do not contain preservatives and, therefore, will not be affected.
Wufangzhai, which entered the prefabricated vegetable field in recent years, produces prefabricated vegetable products mainly in the form of prefabricated cooking packages made in central kitchens, supplying more than 400 fast-food stores. Since prefabricated vegetable business accounts for a small proportion of the company’s overall operations, any impact, even if there is one, is not expected to be significant. Moreover, after the detailed rules of the national standard are released, the company can make adjustments quickly if needed.
“In fact, this is quite normal in the industry because when an industry grows, there must be some specialized measures to standardize it,” said a representative from Wufangzhai. “So everyone doesn’t need to be too nervous; it’s actually quite normal in the industry.”
Cold chain transportation requirements may eliminate many small prefabricated vegetable enterprises
Preservatives, as explained officially, are substances that prevent food from spoiling and extend the storage period of food. The “National Food Safety Standard for Food Additive Use” (GB2760-2014) specifies more than 20 types of preservatives allowed to be added to food. Each preservative has specified food types and maximum usage amounts. For example, carbon dioxide, well-known as a preservative, is frequently used in beverages.
“The addition of preservatives is not closely related to cost,” according to Ruan Guangfeng, Deputy Director and Associate Research Fellow of the Science and Information Exchange Center for Food and Health. He believes this is mainly related to the product’s process; if a product requires it, the company will use it. For example, instant noodles are dried, with low moisture content, and do not require preservatives. However, sausages are easily contaminated by Clostridium botulinum during production, requiring preservatives. In such cases, companies must use preservatives.
In fact, there is more than one way to prevent food spoilage and extend the storage period of food than just adding preservatives. Ruan Guangfeng explains that methods such as dehydration and drying, where there is no water, prevent the growth of microorganisms. Additionally, adding salt, sugar, pickling in sugar, high sugar and salt content, increased osmotic pressure, also prevents the growth of microorganisms. Sterilization and sealed storage are also effective, such as the commonly seen UHT milk and canned products, which are sealed after sterilization.
According to Yun Wuxin, a Ph.D. in food engineering from Purdue University in the United States, the new regulation prohibiting preservatives and requiring cold chain transportation implies increased technological barriers for companies. “For companies, those that do not meet the requirements need to change their technological processes, and full cold chain transportation also requires strong technical support.” In terms of the industry, Yun Wuxin believes that the biggest role of the new regulation is to establish industry standards and set industry thresholds.
“For companies, whether or not to add preservatives may not have such a significant impact,” says Gui Jiuqiang, Vice Chairman of Ziyanyan Food, “but the requirement for cold chain transportation is significant for many small and medium-sized enterprises.” In Gui Jiuqiang’s view, for listed companies with strong financial strength, many of them have the ability for cold chain transportation. However, for small and medium-sized enterprises, building their own cold chain transportation logistics is too expensive, and they may not be able to achieve it.
“Moreover, the requirements for cold chain transportation are particularly high, especially in the connection of various links. Ensuring full cold chain transportation is difficult,” explains Gui Jiuqiang, as cold chain transportation involves multiple fields such as factories, logistics, and terminals. In different domains, sometimes a few centimeters’ difference during handovers can lead to the food being outside the cold chain environment, posing contamination risks. For small and medium-sized enterprises, both technical and cost investments are substantial.
Even if some small and medium-sized enterprises choose to use third parties for cold chain transportation, their costs are several times higher than regular logistics. Gui Jiuqiang says, “If full cold chain transportation is required, this provision can eliminate many small enterprises engaged in prefabricated vegetables, and for the industry, it will be a process of reshuffling.”
With the introduction of the national standard for prefabricated vegetables, regulatory measures become clearer
Currently, two main points have been revealed about the national standard for prefabricated vegetables: first, the prohibition of preservatives and the requirement for cold chain transportation; second, the national standard may narrow down the scope of prefabricated vegetables, excluding ready-to-eat products.
Earlier, relevant standards for prefabricated vegetables were mostly formulated by local and industry authorities. The definition of prefabricated vegetables varied among different regions, especially as the scope of prefabricated vegetables became more challenging to define amid their growing popularity in the capital market.
In the industry, prefabricated vegetables are usually categorized into four types: ready-to-eat (such as eight-treasure porridge, ready-to-eat canned food); instant heat (such as frozen dumplings, self-heating hot pot); instant cook (semi-finished dishes that require heating); and ready-to-use (pre-washed and pre-cut vegetables).
Combining the revealed provisions of the new national standard, there are still many pieces of the puzzle waiting to be filled. For example, does the prohibition of preservatives and the requirement for cold chain transportation mean that prefabricated vegetables can only be frozen or refrigerated? If prefabricated vegetables are merely removing ready-to-eat products from the existing standard, does it imply that self-heating hot pots, originally classified as instant heat products, must also use cold chain transportation?
“In fact, for products like self-heating hot pots, we prefer to consider them as convenient foods, similar to instant noodles,” said Gui Jiuqiang. He believes that self-heating hot pot products do not require an open flame for heating; they are produced for convenient consumption, similar to instant noodles. If self-heating hot pots are considered prefabricated vegetables and are required to use cold chain transportation, it will inevitably increase product costs. “So, given the current unclear definition of prefabricated vegetables, it is challenging to see the impact brought about by the national standard for prefabricated vegetables.”
However, industry insiders generally have a positive attitude towards the introduction of the national standard for prefabricated vegetables. Representatives from Longda Food stated that the introduction of the national standard for prefabricated vegetables will help standardize the industry and promote its normalization. The introduction of the national standard for prefabricated vegetables means that there is now a regulatory basis for the industry, providing a “legal framework.”