Health and Healthcare

Food Makers Ask FDA For More Regulation: Target China

The Grocery Manufacturers Association is going to ask the government to strengthen regulation of food imports. The group, which includes Kraft (KFT) and Coca-Cola (KO) wants "beef up federal oversight of imported food and ingredients," according to The Wall Street Journal.

While the group wants more reviews of farms and packing houses in the US, the obvious target for the request is China. GMA is "also seeking to increase the FDA’s funding next year by $200 million so its inspectors can travel overseas to examine plants."

Some industry experts are surprised at the request for more review and regulation. But, it would appear that they are missing the point. By asking for broad regulation, GMA is expecting the FDA to catch tainted Chinese imports. That in turn makes food produced in the US much more attractive to consumers, which will tend to push up prices.

The GMA is no fool. It wants the US government to spear head a movement to push out Chinese competition to domestic producers.

Douglas A. McIntyre

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.