Some net friends have said that everything going into our mouths is fatal. The first one is foods, and the second one is drugs. A person may be greeted by the God of Death when he is sick but without drug, or hungry but without food. This sounds really frank, but it has represented the most direct consumers’ voice of food safety problem.
Food safety requires that foods will impose no risk, either acute or chronicle, on men’s health, and it is an absolute concept. Food safety is a cross-disciplinary field that specially target at the discussion of the assurance of food hygiene and eating safety, reduction of disease risk and prevention of food poisoning during food processing, storage, sale and other courses.
Recently, Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food that is the licensed chicken meat supplier to Beijing Olympic Games and the largest chicken meat supplier to KFC and McDonald’s, has been invited to SOHU Green Interview Room to talk about green food and its supply chain and share his advanced thoughts about green operation and ecological protection.
Photo: Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food (Asia) Limited, the Chairman of Alxa SEE Ecological Association (SEE)
(Photographer: SOHU Green. SHI Shaochen)
SOHU Green Interview site. Left: Mr. Mark Han Jia-Hwan. Right: SOHU Green. Rongrong
(Photographer: SOHU Green. SHI Shaochen)
What we have been doing is to confirm product quality.
Hostess (SOHU Green. Rongrong): Mark Han, could you briefly introduce DaChan Food to net friends, since most of them must know KFC, McDonald’s and Dicos, but they may not hear about DaChan? As the supplier to these foreign fast food chain stores, what is DaChan supplying to these enterprises? How about the quantity?
Mark Han: Do you know that in every three KFC fried chickens, one is provided by DaChan? We are also the largest supplier to McDonald’s, and the most important supplier to Japan’s high-end market, and we ever accounted for 10% of the cooked food and chicken kebab markets in Japan. Later, we were appointed as the licensed chicken meat supplier to Beijing Olympic Games. What we have been doing is to assure that the quality of chicken meat is safe and traceable. This is what we must do.
Hostess: I have some understanding of the “traceability”. It is the “Activity Traceability System” and “Internet Traceability System”, and consumers can gain much information about the products they have purchased through these two systems.
Mark Han: Yes. After the tainted milk accident broke out last year, I think that since we have done so many things, why we do not let consumers know about these things. In China, like SOHU, there are advanced and abundant Internet resources. Besides, there are many things matching the Internet. DaChan is one of few companies that take advantage of the Internet to communicate with consumers about the traceable agricultural products in the world. Like Facebook, the system can trace back to which farm the chicken comes from, when it is transported out of the farm, and there is the analysis report attached to such information, and when it is processed into the food. In my opinion, this is a great thing. We have done this before. After the tainted milk accident, we brought the system to come into the light in the first half year.
In my opinion, the activity traceability system has two meanings. Supposed that there are two alike tomatoes, one carries a lot of information about which farm it comes from and on which day it is picked, about that there is no pesticide or fertilizer, about the ingredients and how much the heat it will offer. The other tomato carries no information at all. Under such a circumstance, the tomato carrying information will be of higher value. Hence, that we use information means we add the information to another traditional industry, so that consumers truly feel that we are not dealing with the quality, but we have been paying great attention to quality. This time, we present the quality to consumers via the Internet.
The second big meaning is that we think consumers have many rights to know, for example, consumers have right to know whether the quality is safe, and this is what he cares most. With the traceability system, he can participate in it and search any information he wants. By doing so, we aim to evoke consumers’ attention to the consciousness of product quality.
Hostess: As far as I know, no matter in China or in the rest of the world, this system is a very advanced.
Mark Han: Europe began to focus on the traceability 10 years ago. The most important thing in food industry is the traceability. In the food industrial chain, the most three troublesome things are meat, egg and milk, and these three are all animal protein, which is of great importance in the entire food chain. Firstly, it is the most important nutrition for men. Men will become strong and grow up by eating animal protein. Secondly, it is highly risky. It often has nothing to with food companies, and it has been doomed on feeding farms. If farmers carelessly add some drugs that should not have been added. Under such a circumstance, whatever we do will change nothing, since the quality of the meat has been affected. Thirdly, large-sized companies should shoulder their social responsibility in the supply of meat, egg and milk. They should clearly tell consumers where these foods come from, on which day the farms purchase the chickens or pigs, on which day the farms sell them, what lot of feeds they have eaten, and whether they have been inspected or not. These are all great things to do.
We have been wondering whether we can be a model in the industry of meat, egg and milk and become a mode of the industry. We should clearly tell consumers what happens, and this is their rights and the integrity that a company should stick to.
After contemplating the advantage of the integrated business, I think it is a very green concept, a concept of green revolution. Besides, we can also take advantage of the Internet. Now, DaChan Food has 30 factories including feeds factory, electric slaughtering factory, foods factories, chicken breeder factory and so on. There has been complete and thorough information about our 3,000 farms, through which we can observe the actual situations anytime. In my opinion, any larger meat, egg or milk factories that have the ability to do this should set out to do this.
A company’s reputation is the base of its operation
SOHU Green Interview site. Playing of the promotional film of DaChan’s “Activity Traceability System”
(Photographer: SOHU Green. SHI Shaochen)
Host: When consumers understand the traceability system, they must doubt the validity of the information, since all information comes from DaChan itself. So, where is the reliability? Do you think how consumers should treat the traceability system correctively?
Mark Han: Firstly, it closely relates to the reputation of the company itself. The image of the company is the very fundamental base. Consumers must know the company. As for DaChan, I am convinced that within so many years, we have built up solid base. If consumers know that DaChan has had its products exported to Japan, that DaChan is one of two licensed chicken meat suppliers to Beijing Olympic Games and that DaChan is the largest supplier to KFC, they should have confidence in us. Secondly, we have asked the SGS Group in Swiss, a company that is the best one in the industry of inspection, testing, certification & verification services, to examine and verify our system, so as to assure that the system is authentic and complete. We are doing this with a down-to-earth attitude.
Hostess: Just now, you mentioned that DaChan was appointed as the licensed chicken meat supplier to Beijing Olympic Games. I want to ask you a question on behalf of common consumers: what’s the difference between the foods for Olympic Games and the ordinary foods? There has been the rumor among people that the vegetables for Olympic Games are watered with milk, and then the foods for Olympic Games become very mysterious suddenly.
Mark Han: Think about it! Before participating in a game, athletes will take blood tests. If there is any strange ingredient in the milk or eggs they have eaten and therefore they cannot participate in the game, it will be an international event. The foods for Olympic Games pay great attention to safety, so there is no any drug residue or other addictives in the foods. The foods should be very reassuring, safe and green. This is the core of the foods for Olympic Games.
There is no loophole in the traceability of the foods for Olympic Games. This is not an exaggeration. During Olympic Games, our factories were surrounded and guarded by policemen. When we were manufacturing products, there were policemen standing beside to supervise the production. This is a choice of 100% justice in the competition for the appointed supplier to Olympic Games.
Hostess: That is to say, what DaChan supplied to Olympic Games is not different from what you supply to ordinary consumers.
Mark Han: Yes. We are promoting the traceability system now. However, in my opinion, in terms of being totally traceable, there is a little difference -the information can be inquired and obtained by consumers via the Internet if they like. It means a little higher than the standard for Olympic Games. Furthermore, the traceability system for meat, egg and milk industries have been proved to be applicable.
Mr. Mark Han Jia-Hwan: Previously chicken-filled brain has made some room for desert (2)
2009-11-19
Six wings of the chickens supplied to KFC? It can never be true.
Photo: Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food (Asia) Limited, the Chairman of Alxa SEE Ecological Association (SEE)
(Photographer: SOHU Green. SHI Shaochen)
Hostess: In daily consumption, many people like to choose cage-free chickens and domestic chickens. What’s the difference between the chickens fed by people and the cage-free chickens in terms of nutrition?
Mark Han: I think what matters most is what the chickens eat. We choose the best corns and the soybeans imported from the U.S. Furthermore, we add sea buckthorns in the feeds, which will be able to make chicken meat taste fresh and tender and hold much more water. The fresher the raw material is, the healthier the chickens will be. The cage-free chickens eat fresh foods when they are fed out of cages. If there are good feeds, the chickens must be very healthy. Besides, there may be a strong point for cage-free chickens, that is to say, they walk more. Recently, we have introduced such chickens, such as quality black-bone chickens, yellow chickens, etc.
I firmly believe what matters most is not that the chickens have many gimmicky names, but what kinds of feeds they eat, and whether these fees are fresh and select.
Hostess: It is certain that such products will be highly priced. So, consumers may hesitate to purchase these products for price reasons.
Mark Han: we have made many surveys and investigations, When the price is 30% or even 50% higher, consumers are willing to purchase such highly priced products. I am sure that our products will not be priced higher than this.
Hostess: Have you ever seen such articles on the Internet that someone said that the chickens for KFC have 6 wings. Why are there such rumors?
Mark Han: It cannot be true. I believe that some rumors on the Internet are just for fun. We are the largest supplier and we know the status of global chicken meat. The net friends often talk about hormones. But as far as I know, hormones are very expensive. How can it be possible that we feed expensive hormones to cheap chickens? If so, we will suffer great losses. I think any company, even those small and ordinary companies, can never do this. In addition, the gene innovation and gene modification technologies are not so advanced. The chickens are still chickens. There cannot be a chicken with 4 wings. It is unbelievable. Besides, there is the rumor about test tube chickens. It is even ridiculous.
Hostess: In your opinion, what’s the most important reason for the generation of such rumors?
Mark Han: I think that there always someone on the Internet that like Xiaqi Hong. They spread rumors for fun. However, as time goes on, others may be wrongly informed.
Hostess: so, the human factor is the most important reason?
Mark Han: Yes. Anyone who has a little bit of scientific knowledge and learn about the industry will know it can never be true.
Photo: Mr. Mark Han Jia-Hwan, the Chairman of the Board of DaChan Food (Asia) Limited, the Chairman of Alxa SEE Ecological Association (SEE)
(Photographer: SOHU Green. SHI Shaochen)
Hostess: Now, you are the Chairman of Alxa SEE Ecological Association (SEE). We know that previously, you were the first Vice-Chairman of SEE. What will the change of the position impact on you?
Mark Han: Previously, my brain is stuffed with chickens. Why chickens? The chicken represents the future. In China, the reason that the chicken consumed per capita is low is that the quantity of chicken meat processed by the industrialized system is small. Now, we promote the concept of green environmental protection. Chickens are animals that do not eat too much grain and release very low carbon emission. To eat 1kg beef will consume more carbon than to eat 1kg chicken meat. The chicken meat products can be diversified and modernized, and are very healthy featuring high protein and low fat. So, I think chicken meat is the best meat.
Previously, I was thinking about the development of chicken meat products all the day. Now, I spend more than half a day in thinking about the desert and prevention and control of desertification, especially after I was elected Chairman of SEE. We take the position of chairman in turn. Each chairman serves for 2 years so that every member has the chance to serve SEE. This time, they elected me to be the chairman. I think the big change is that from the perspective of environmental protection, I will consider whether my company will set an example for others. The nature of my company is closely related to land and agriculture, so I think I should care about such things more.
Hostess: In your opinion, what’s the relationship between the ecological environmental protection and the operation of enterprise? Or they are not related to each other at all?
Mark Han: Most entrepreneurs including me have learned to be modest in SEE, because previously, we thought that the environmental protection bears resemblance to the operation of enterprises. When you make clear and simple goals, business principles, there will be results. Entrepreneurs are less patient. But when you find that it is totally different and that you are dealing with the nature, you need to be modest.
Previously, we found out the source of sand storm: sheep had eaten the grass roots, and after the grass roots were pulled out and eaten, the desertification would be much more serious. Besides, there was a large population, and they were bounded there since they could not graze sheep. So there were thousands of people who had no jobs and there were millions of sheep. On the contrary, our enterprises were in need of as many workers as possible. So we helped them to get employed. It should be definitely a win-win situation. This was a simple and natural idea of an entrepreneur. Later, we found we were seriously wrong. We did not respect the humanity or them. They do not like to work in factories. Their land is their home. The grassland is their home. They like grazing sheep and respect the natural rules.
From then on, we learned to be modest most of the time, and learned how to co-exist and deal with the nature. For all participating enterprises, we have paid a lot, but what we have learned is more than what we have paid. Previously, environmental protection was just a slogan. Now, the more we get involved, the more we want to change, and the more we want to participate.
Hostess: These two seemingly different jobs have something in common actually.
Mark Han: For example, your experience, ambition and thought, and you can make some contributions. But basically, you will be not so eager for quick success and instant benefit, and you will not be short-sighted. You need more patience to look at the entire environment and the entire greenness, and that is really a big market.
You are not only a money maker. You are a person of the society.
Hostess: The green environmental protection must demand that an enterprise has a new promotion its business principle, strategy and technology. So, how do you connect the idea of greenness with the profits of your enterprise in this aspect? I have seen the contents that advocate the green office on the wall of your company, so it is certain that DaChan has been promoting the spirit of green environmental protection.
Mark Han: I want to explain this from several prospects. Corporate social responsibility (CSR) is a popular term these days. CSR is more and more important. The prime task of an enterprise is to seek the maximal profits for its shareholders, so how can you spend the profits on public welfare programs? I think this is a very important argument.
In addition, the environmental protection itself is the corporate social responsibility. It occurs to me that the management master Michael Porter has ever talked about the strategy. An enterprise cannot mess about the businesses, and your prime task is to help your shareholders to earn money, but this does not conflict with your CSR. These two sides can be complimentary. You should choose the enterprise-related CSR activities. There must be some reasons for a company to survive in the society and to make some contributions. You must be able to find something that indirectly relates to your enterprise or helps your company but is of the nature of public welfare. You should think about it and think about it with creative ideas.
Especially nowadays, enterprises grow larger and larger and face more and more social pressure. You are not a person that can only make money, you are a person of the society, and you are a person that makes contributions to the society. It is better that you connect these two sides together instead of conflicting them. CSR should be one link of the marketing strategy. You should actively think about it. Especially when your enterprise grows larger, a lot of environmental protection authorities and non-governmental organizations closely observe your activities. The society needs you to do more things. You should not only concentrate on making profits. What you will do will help you with the money making. So you should view the issue from the perspective how you can connect your marketing strategy with your CSR. Our parent company is a special one. Our business is a vertical integrated one, and our industrial chain starts from the source that is the land, the farmers and the crops to the consumption terminal. This chain is very long. However, we should think about it this way that we should do many things relating to our CSR despite the length of the chain. For example, how to help with the establishment of green agricultural circle? That we have more contract farmers is to fulfill our CSR.
Secondly, it is the biggest thing in recent years. The globe has tremendously changed and brought about severe consequence. Yesterday, a friend came to see me from the desert. When he passed the Gobi, he found that all migratory birds were flying northward. Now, it is winter, and these birds should fly southward, but maybe the south part is very dry. These climate changes are too astonishing.
Two months ago, Taiwan was stricken by flood, a world-class flood. However, Taiwan is not the only one that has suffered from the global climate anomalies. The climate change is closely related to every one of us. If it changes to the better side, it will help with the growth of your enterprise. Everything is directly or directly related to your enterprise.
SEE is very special. It is not a NGO that only deals with environmental protection, but a NGO that prevents and controls desertification. We have a group of entrepreneurs participating in the program. We aim to evoke the sense of CSR of these enterprises so that they can realize that environmental protection relates to their enterprises. They are engaged in environmental protection because it will bring them profits indirectly, but not because of Mr. WANG Shi’s face. we should try every effort to think about how to do some fundamental things indeed.
In the short term, it seems that we have to spend some costs. Your worries do not conflict with what I have talked about. But you should view the problem from this perspective. However, to help the penguins in Antarctica and the polar bear in arctic areas may be not of direct help to your company. And to help the rhinoceros in Africa is beyond your ability. So, what will you do? The key point is that you should firstly deal with the things that closely relate to your enterprise. However, I am convinced that environmental protection is an all-round thing.
Hostess: I have learned that what DaChan will do next is to introduce the terminal products to consumers, such as the brand of “Beautiful Kitchen” and a series of products featuring traceability. Could you briefly introduce your plans relating to the greenness?
Mark Han: What we hope is to become the model in China’s meat, egg and milk industrial chains. A larger company should shoulder more responsibility. To do these things means that our costs will increase, but we hope that our consumers can be accustomed to it, and they can know that it is a necessary thing for DaChan to be engaged in these public welfare programs. This, in my opinion, is very important. We hope that in next two to three years, DaChan is a brand that can really be trusted by consumers, and our products are the ones that consumers have confidence in and are reassured to eat. Besides, DaChan has approaches and a trustworthy mechanism which enables the Company to introduce many branded products from the upstream to the downstream of the industrial chain. Once this brand is built up, we can introduce many foods, from the fresh meat to the processed food products. We will introduce products similar to those in Beijing Yishoudian, for example, the braised products. But now, we concentrate on roast chickens and spiced foods that can be traced.
It will be much better what we have been doing can stimulate our competitors to walk on the same way, and I believe that the central government will pay more attention to this trend. Sometimes, Europeans go even further. They worry about your rice and worry about whether you have chopped down the rainforest in Amazon River Zone to make room for the planting of soybeans, and whether the planted soybeans have been turned into the feeds and fed those chickens that eventually become hamburgers in McDonald’s. They care about more.
What we actually care about is the feeding farms themselves and whether the feeds for chicken feeding and pig feeding are healthy and safe or not. It is of significant importance that the chicken breeder, pig breeder, feeds and drug usage plan are safe. Then gradually we extend our business to the foods that will be showcased in our food stores. At that time, our integrated business is complete and covers all aspects. We directly manage the nature and feature of the meat, egg and milk in the integrated business, and then extend our platform from other aspects inside the meat, egg and milk industries. We hope to show the rest world that Chinese can achieve it to add information to their products and to add lots of information to an amazing food chain. And this is a great principle of great value to food safety. (The end).
