FOOD FRAUD - Threats & Impacts

THE INDUSTRY'S RESPONSE

Petra Wissenburg, Food Safety @Danone
Outline

 Introduction to Food Fraud

 Types
 Drivers
 Impact

 Food Industry’s Response

A Global Concern
 Terminology
Economically driven
Motivation is ‘GAIN’ Intentional
adulteration
Food Fraud

Food Food Ideologically driven

Quality Defence Motivation is ‘HARM’
Unintentional /
accidental adulteration
Food Safety
Science based
Food borne illness
 • Sunflower oil partially

Terminology substituted with

mineral oil
• Hydrolyzed leather
SUBSTITUTION protein in milk

• Watered down products using • Poultry injected with

non-potable / unsafe water hormones to conceal
• Olive oil diluted with DILUTION CONCEALMENT disease
potentially toxic tea tree oil • Harmful food colouring
applied to fresh fruit to
cover defects

FOOD FRAUD
• Copies of popular foods • Expiry, provenance (unsafe origin)
- not produced with • Toxic Japanese star anise labeled
COUNTERFEITING MISLABELLING as Chinese star anise
acceptable safety
assurances. • Mislabeled recycled cooking oil

GREY MARKET
• Melamine added to enhance UNAPPROVED PRODUCTION/ • Sale of excess
protein value ENHANCEMENTS THEFT/ unreported product
• Use of unauthorized additives DIVERSION
(Sudan dyes in spices)
Top Foods & Ingredients for Fraud

Fish Olive Oil

Milk Honey

* Source: in ‘Development and application of a database of food ingredient fraud and economically
motivated adulteration from 1980 to 2010’. J.C. Moore et al. (2012), J. of Food Science Vol. 77(4), 118-126.
Food Related Crime
Why is Food Fraud increasing?

Increasing
pressure for
complex food Challenging unscrupulous
suppliers to
supply chains economic times
commit food
fraud

Food supply is
becoming more
global
 Example of Complex Supply Chain

The horsemeat scandal

Source: www.economie.gouv.fr
 Example of Rising Price

Vanilla: a classic case of supply and demand …

Current price: 30 € / kg
But in 2003: prices reached 500 € / kg

Food fraud risk

Tonnes produced Euros/tonne

Some Numbers on Food Fraud

Over
2,100
records

Cost of one
Cost to global incident $400 million $60 million
Level of fraud food industry between impact for a impact for a
est. 10% est. $ 30-40 large $10 billion small $500
billion 2% to 15% of company million company
ann. rev.

• source: UK FSA • source: J. Spink, MSU • source: GMA

The Impact of Food Fraud

Impact on business Impact on consumer

• Consumer trust • Most cases of food fraud not harmful
• Lost sales • But there are some notable exceptions
• Crisis management
Global Response
Food Fraud Think Tank - New Concept for GFSI

2015
2014

2013

2012 ‘Think like a

Criminal’
Recommendations by Think Tank

• Supply chain mapping

• Socio-economic
Vulnerability • Behavioural ‘Think like a
Assessments • Geo-political
• Historical
Criminal’

• Monitoring strategy
• Origin/label verification
Vulnerability • Specification management
Control Plan • Supplier audits
• Analytical testing strategy
• Anti-counterfeit technologies
GFSI Position - Integral Part of FSMS

Food Safety Food Defence Food Fraud

HACCP TACCP VACCP

Hazards Threats Vulnerabilities
Prevention of Prevention of Prevention of
unintentional / intentional adulteration intentional adulteration
accidental adulteration • Ideologically motivated • Economically motivated
• Science based
Implementation of Food Fraud Prevention

Incorporation in Implementation and

Incorporation in
GFSI Guidance execution in Certification via third
Document Vs. 7 Food Safety companies’ FS party audits
Management Schemes Management System
(2016)
Next Steps

WHAT HOW
• Requirements • Guidelines for implementation
 Initiative on the ‘HOW’

Help companies prepare a

Help companies undertake a
Practical guidance plan to control the identified
vulnerability assessment
vulnerabilities