Food safety is a growing concern in Chinese agriculture. The Chinese government oversees agricultural production as well as the manufacture of food packaging, containers, chemical additives, drug production, and business regulation. In recent years, the Chinese government attempted to consolidate food regulation with the creation of the State Food and Drug Administration in 2003, and officials have also been under increasing public and international pressure to solve food safety problems. However, it appears that regulations are not well known by the trade. Labels used for "green" food, "organic" food and "pollution-free" food are not well recognized by traders and many are unclear about their meaning. A survey by the World Bank found that supermarket managers had difficulty in obtaining produce that met safety requirements and found that a high percentage of produce did not comply with established standards.[6]
Traditional marketing systems, whether in China or the rest of Asia, presently provide little motivation or incentive for individual farmers to make improvements to either quality or safety as their produce tends to get grouped together with standard products as it progresses through the marketing channel. Direct linkages between farmer groups and traders or ultimate buyers, such as supermarkets, can help avoid this problem. Governments need to improve the condition of many markets through upgrading management and reinvesting market fees in physical infrastructure. Wholesale markets need to investigate the feasibility of developing separate sections to handle fruits and vegetables that meet defined safety and quality standards.[7]