[EVENT]Studying Socioeconomic Myths

Food-Safety Myths

(1) Cost Structure
From melamine, plasticizer, toxic starch, toluene ink-cleaning, cottonseed issues, to the recent gutter oil crisis, which I refer to them as the “Melamine Phenomenon.” This phenomenon does not only involve plasticizers, but the issue exists in every industry and every field, only not revealed to the public eye.

The Melamine Phenomenon occurs in an oversupplied market, where fierce competitions in pricing cause certain competitors to lose profits, who are presented with only two choices: either to withdraw from the market, or seek low-costing raw materials, even adopt methods or items that should not be used, which results in causing harm to the consumers.

Therefore, under the pressure of budgets, procurements are usually won by the lowest bidder, and the successful bidder can either keep suffering financial losses, or replace the original certified materials in order to generate some profits.

(2) Purchasing Power
In the structure of an M-shaped society, there is a decline in middle classes, and a large increase in the ratio of low-income earners. Also, the average salary of the majority cannot keep up with the annual growth in commodity price which heavily reduced the purchasing power. As a result, retailers do not dare to raise their prices without much consideration for fears of business being won over by their competitors, which made the matters worse for the manufacturers to simply survive. When a company cannot earn profits, there would not be any benefits for the employees, and raising salary is out of the question to say the least.

(3) Corporate Conscience
Corporate profit gains should be rationalized, and not maximized! The trend of maximizing profits would possibly lead to near-sightedness, desiring for immediate benefits without concerns for the future, and even gaining profits with any means necessary without any regard for consumer rights and safety, leading to a disastrous end.

*The three gigantic cogs of Corporate Conscience namely 1) Cost Structure, 2) Purchasing Power, and 3) must be engaged simultaneously. The retailers must consider both quality and price, corporations must adjust employee salaries in accordance with business status, and also adhere to conduct honest businesses, in order to establish a healthy society, create harmonious labor relations, and put consumers at ease.

Certification Myths

(1) Certification Unit
Everyone in the business is aware that certifications can be bought with money and some paperwork; but what good are such certifications for? In the past, most companies that caused issues all had certifications. Therefore, only credible certification units can be trusted.

(2) Certification Scope
A certification can be obtained even if partial inspection is done only to one production line or one production room. In the past, most issues occur in other uncertified production lines or plants.

(3) Extent of Implementation
Certification units only come once for annual reviews; therefore many companies only tidy things up before a review or certification takes place due to cost considerations or in fears of rising issues. There is no difference between only implementing superficial measures and not certified.

Myths of Inspection Reports

(1) Confusion of Inspection Reports
Submitting only items that do not really matter or guaranteed to pass for inspections, and not crucial key items, yet claiming to be XX certified. Ex. SGS Microwaveable Testing: Only conducting structural testing, but not dissolution testing.

(2) Confusion of Submitted Samples
Samples submitted for inspection are not actual manufactured products, which causes the market to be filled with a wealth of sub-quality products.

(3) Confusion of Inspection Standards
Usually for some inspection items, for example, the inspection item “eluted substances” qualifies if it is below a certain PPM value, not necessarily without eluted substance at all. This would likely to be used to intentionally confuse the public and be attacked by competitors in the same field. Another example is that, years ago, according to national regulations, food containers must not contain fluorescent agents, yet, only “migratory fluorescent agents” is harmful to human bodies, while “non-migratory fluorescent agents” are accepted by the U.S. FDA. Yet, unfortunately, popular products from our affiliated corporation were forced to be removed from the market due to the backwardness of our national standards.

Myths of No.5 PP (Polypropylene)

Dr. Jie-liang Lin once mentioned, plastic containers should not be used to contain hot foods. If it cannot be avoided, then No.5 PP would be the safest material to use. In truth, no certain container is completely safe, therefore, I personally recommend to the government for years that: 1) Ban the use of high-contamination materials, ex. PS and PVC. 2) Promote low-contamination materials, ex. PP ) Promote even lower low-contamination materials.

Due to the characteristics of PP products, they cannot be individually processed and applied to the manufacture of other related products, and must go through EVA copolymerization processing with a relatively small amount of PE in order to be applied. The point is whether or not the submission qualifies, and whether or not the sample submitted is the same as the product manufactured.

Myths of Deforestation
Paper cups must adopt a high ratio of NBSK (Northern bleached softwood craft), which is commonly obtained from North America, North Europe, and Southern regions of the Soviet Union, while the planted forests are secondary forests, certified by FSC, PEFC, and SFI. Yet the heated topic of deforestation revolves around hardwood rainforests in the Amazons and Java, which unscrupulous businessmen continue to fell in order to acquire rich lands to grow food crops.

In truth, only 10% of the forests are certified. Cutting one tree and planting 5 saplings, and the wood obtained from these 5 saplings in 20 year’s time is used in wooden buildings and furniture, while the discarded scarps and branches become raw materials for the paper. They are actually renewable just like vegetables.

Myths of Water Washing

Each year, Taiwan relies on typhoons in summers and autumns, as well as southeast monsoons, to bring about abundant rain and water resources. Yet, steep terrains and limited water reservoirs cause a constant dry state in areas other than regions from Ruifang of Taipei City to Jiaoxi of Yilan. Washing tableware in households not only consumes a large amount of water, it also requires an adequate amount of surfactants (dishwashing liquids). The waste water goes into the sewage along with food scraps, becoming another kind of pollution.

As for recycling paper food containers, business operators pay the recycling fees, yet are unaware of how the actual recycling process goes. Nevertheless, recycling oily paper containers with food residues is not economically efficient at all. Furthermore, cups in many Household Registration Offices in Taipei are never used, after the use of paper cups are banned because the consumers are worried if they happen to use an unclean cup, they would be inflected with diseases. As monthly wage increases every year, it is not cost-efficient to employ people to wash the cups, while using mechanical dishwashers raise the issue of not able to clean the cups thoroughly.

Conclusion

With the rapid advancement in technology and the evolutions in the modern era, people require a quality living environment other than just meeting the basic living conditions. On top of material comforts, they also demand conveniences in life, and the use of disposable diapers, toilet paper, and tableware are unavoidable. In truth, our 6.5 billion population is a cancer on the surface of the Earth; looking at today's eating habits, take-outs are becoming a norm. What we can do is to start on product design and manufacture, seeking for a way to reduce environmental pollution, ex. adopt the paper-reducing and safer No.5 PP lamination paper containers, biodegradable plastic lamination paper containers. We commit ourselves to better the living environment and be environment-friendly at the same time of pursuing business performance; this is the key philosophy that supports Totempak.

R&D Director: Morgan, Sheng-hung, Lin

Mr. Morgan Sheng-hung Lin is the founder of Totempak, and a 20-year veteran in the paper-importing business. He excels at innovative R&D, and has a wealth of understanding in the characteristics and applications of various paper materials.