I-Mei Foods Co. Ltd. has been able to escape Taiwan's ongoing plasticizer food scandal, as well as the melamine milk powder scare two years ago, because it runs a state-of-the art NT$60 million food safety lab at its factory in Nankan near Taoyuan International Airport. Inside the 650-square-meter laboratory, a technician with long pencil-straight hair drips some liquid into a test tube. Behind her black-rimmed glasses, her eyes reveal intense concentration.

She is going through the preparatory steps to check the substance for plasticizers: After methanol is added to the sample, the test tube is shaken and centrifuged to separate impurities from the liquid. Then the samples are weighed and run through a chromatography system. On the computer monitor a curve begins to gradually emerge with a series of spikes, some large, some small. The spikes that form at different time points on the chromatogram correspond to substances of different structures and molecular weights. The test determines whether the sample contains any plasticizers and, if so, in what quantities.

The Secret Weapon for Braving the Plasticizer Scandal

Recently, the I-Mei food safety lab has become very busy.

As one of a handful of food makers who were not caught up in the plasticizer scandal, I-Mei has emerged as a saint among the sinners. Recognizing the company's exemplary attitude and practices, Taiwanese Internet users have renamed the company "Saint I-Mei." Its products are experiencing brisk sales as worried consumers desert scandal-tainted brands. On top of 150 to 200 routine tests per day, the I-Mei laboratory is now conducting additional plasticizer tests on some 70 to 80 samples of its own products and on samples provided by other companies.

All of a sudden, people are becoming curious about the company, and eager to know how I-Mei managed to remain completely unaffected by the scandal.

"Now everyone says they realize we've invested millions in our laboratory, but the real key point is that you need to spend time and effort starting with the purchase of raw materials," says I-Mei president Luis Ko. The generally low-key Ko has always insisted that it takes more than lab tests to guarantee food safety.

When President Ma Ying-jeou recently visited the lab, Ko stressed that it is necessary to debunk the myths surrounding "product sampling, inspections and laboratories." He told Ma that it was particularly ill-advised to let manufacturers themselves pick the samples they send to government food safety agencies and private-sector test laboratories, because such tests will produce false data, rendering the islandwide effort to eliminate problematic food products futile.

Ko also pointed out that consumers, small shopkeepers, and food stall owners are not to blame and are helpless in this situation. He urged the government to come up with effective measures to better prevent and curb food safety problems. He suggested providing guidance on production technologies and processes that do not require food additives, teaching the correct use of plastic containers, and providing lists of suppliers of uncontaminated raw materials and semifinished products.

Fourfold Controls

At I-Mei prevention starts with the selection of raw materials and ingredients that are used in production.

For instance, if there are alternatives, I-Mei refrains from using raw materials from China, because they are highly likely to be contaminated with heavy metals, antibiotic residues, bleach, preservatives and pesticides.

"Based on our testing experience, around 80 percent of products are problematic because of these five kinds of contaminants," notes Ko.

To cite an example, in order to avoid bleached or preserved products, I-Mei does not go to China for dried lily buds – a popular ingredient in Asian cooking – but sources it elsewhere for NT$450 a kilo, three times more than in China. For the same reasons, the company does not use dairy products from China, a wise decision that spared I-Mei from the melamine milk powder scandal in 2008.

Moreover, the company is keenly aware that quality has its price, and it therefore selects raw materials and ingredients not solely based on their cheapness.

For example, if a supplier offers raw materials at just 30 percent or 40 percent of the usual cost, I-Mei personnel will get suspicious rather than rejoice over the apparent bargain.

As a further safety measure I-Mei requires suppliers to provide a list of their other customers. If these are companies that are known to value food safety, then the supplier is considered trustworthy.

Inspections are only the final check. In addition to its original quality management system, I-Mei established its food safety laboratory in Nankan six years ago, replacing all existing instruments and devices to build a more comprehensive food safety system.

Noting that he can do lab tests himself, Ko says suppliers are more ready to accept his opinion when he screens raw materials. Ko's expertise also has a certain deterrent effect on dishonest suppliers.

"If suppliers know that you are able to test their stuff, they won't give you bad things," Ko points out.

Liao Yi-chen, who heads the I-Mei lab, joined the food maker 13 years ago. The scholarly-looking Liao holds a doctorate in food engineering. He left his job in academic research to help I-Mei set up a factory in Jiayi that is able to cleanse rice of residual agricultural chemicals and heavy metals. The rice is then marketed under the "good rice" label. Six years ago Liao planned and set up the food safety lab.

When new products are developed, I-Mei first looks at the raw materials to pinpoint possible chemical, physical or microbial hazards. The approximately 50 product developers at the Nankan and Longtan factories are required to write an "incoming raw material inspection list" which specifies the tests that the lab needs to conduct. Samples are routinely drawn from finished products for further testing.

On top of that, each factory has five to ten quality control technicians. They can request specific lab tests beyond routine controls. Given the current plasticizer scandal, they might ask the lab to test company products for plasticizer contamination.

The lab is also in charge of collecting domestic and international food safety information and conveying it to the company's food safety task force, which is comprised of the heads of production, quality control, research, and procurement. The task force holds regular and ad hoc meetings to discuss new information and decide whether new items should be added to quality control tests.

Presently, I-Mei spends between NT$5 million and NT$6 million per month on the lab's operating costs and payments for instruments and other hardware. The lab's ultra high-performance liquid chromatograph alone – the machine that played a crucial role in detecting plasticizer contamination in the current food scandal – cost more than NT$10 million.

Margins Slim in Food Industry

But no matter how thorough I-Mei's source management, "it's impossible for us to be that smart," Liao says. Plasticizers were not supposed to be used in foodstuffs at all, but that is where they were found. This was something they could not have predicted. The I-Mei philosophy – "Avoid adding additives whenever possible" – probably played a greater role in saving the company from the plasticizer scandal than its rigorous testing.

"We are one of the few companies in the world that use only minimal amounts of additives," Ko declares proudly.

This has been the I-Mei tradition since the company started out in 1934 as a cake store. Across the entrance of the Nankan factory's visitor center is written a famous statement on food-making by former I-Mei chairman T.C. Kao, who passed away last year: "A trade for honest people, a good-hearted industry."

"The old chairman used to say: ‘Reasonable prices, genuine ingredients – when something goes into your stomach, peace of mind and safety are what matters," recalls Lee Yu-ling, assistant to the president.

I-Mei tries its best not to use food additives. There are a few exceptions, such as red turtle cake. The cakes are used for offerings, and since tradition requires them to be an auspicious bright red, food coloring is added. The meatballs sold at the I-Mei store on the first floor of the factory complex look particularly dark, because they are made without sulfur dioxide, a widely used bleaching agent. Ko also requested that the sausages for the employee restaurant be made without nitrous acid, which acts as a preservative and keeps meat looking red.

Even for French bread, which contains only a few basic ingredients, I-Mei does not allow the use of bread improver, which makes the dough rise evenly and look nice. Neither does it use malt extract for better aroma.

"We use flour, salt, yeast and water – that's it," declares baker Tsai Tsung-ta. Tsai, who has worked as a baker for ten years, previously worked for chain stores and an airline catering company. Tsai explains that bakery chains often use bread improvers or ready-made bread mixes. And red bean paste fillings also contain additives that make the paste easy to shape and prevent it from melting after baking. Baking bread without additives requires true skill.

Since I-Mei uses genuine ingredients, its production costs are 15-20 percent higher than the industry average. As a result I-Mei has found it difficult to establish a position for its products in certain price-sensitive markets. Many restaurants and wedding halls that have adopted a profit center system go for low-price, high-quantity fruit juices and soft drinks. Therefore, I-Mei beverages are not competitive in that sector.

Isn't the company worried about not making money?

"Making huge profits in the food industry is truly impossible. As long as we're able to maintain a stable gross margin, I think we should be satisfied," says Ko. "After all, life is about more than just money."

Translated from the Chinese by Susanne Ganz