July 13, 2007

Ban on Chinese seafood hits US importer
 

The US FDA's ban on five types of seafood from China has affected US seafood import companies, even those who do not import the types of seafood that were banned.

Newport International, a St. Petersburg company, lost close to US$1 million when its client Publix decided to stop buying imported Chinese crabmeat from the company.

Jack McGeough, founder and chief executive of Newport International, said the company expected US$48 million in revenues this year, however, this forecast has been cast into doubt since 60 percent of his business is in importing crabmeat from China. 

Newport has decided to replace Chinese crabmeat with those from Vietnam or Thailand and estimates that prices of crab products may rise more than 65 percent. 

Newport's customers now want greater accountability, more documentation of procedures and independent testing with some even asking for plant visits.

However, McGeough thinks this is a positive development as such attitudes would help root out those who flout regulations. Meanwhile he asserts that he has confidence in the crabmeat he imports.

Newport's Chinese crabmeat has been processed exclusively at one plant in Xiamen, China, which has been visited often by the FDA, customers and independent auditors.

The company also does its own random testing both before the canned crab meat leaves China and after it arrives in the US.

However customers are demanding an expansion of the testing to include various antibiotics sometimes found in farm-raised seafood from China.

McGeough said third-party testing would add costs to the product. The extended period required to store the product in warehouses due to delays caused by testing would also incur additional charges, he noted.