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THE INDUSTRY'S RESPONSE
FOOD FRAUD - Threats & Impacts
Petra Wissenburg, Food Safety @Danone
Outline
 Introduction to Food Fraud
 Types
 Drivers
 Impact
 Food Industry’s Response
A Global Concern
Economically driven
Motivation is ‘GAIN’ Intentional
adulteration
Terminology
Ideologically driven
Motivation is ‘HARM’
Science based
Food borne illness
Food Fraud
Food
Defence
Food Safety
Food
Quality
Unintentional /
accidental adulteration
FOOD FRAUD
SUBSTITUTION
CONCEALMENT
MISLABELLING
GREY MARKET
PRODUCTION/
THEFT/
DIVERSION
UNAPPROVED
ENHANCEMENTS
COUNTERFEITING
DILUTION
• Sunflower oil partially
substituted with
mineral oil
• Hydrolyzed leather
protein in milk
• Poultry injected with
hormones to conceal
disease
• Harmful food colouring
applied to fresh fruit to
cover defects
• Sale of excess
unreported product
• Copies of popular foods
- not produced with
acceptable safety
assurances.
• Melamine added to enhance
protein value
• Use of unauthorized additives
(Sudan dyes in spices)
• Expiry, provenance (unsafe origin)
• Toxic Japanese star anise labeled
as Chinese star anise
• Mislabeled recycled cooking oil
• Watered down products using
non-potable / unsafe water
• Olive oil diluted with
potentially toxic tea tree oil
Terminology
* 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.
Top Foods & Ingredients for Fraud
Fish Olive Oil
Milk Honey
Food Related Crime
complex food
supply chains
Challenging
economic times
Increasing
pressure for
unscrupulous
suppliers to
commit food
fraud
Food supply is
becoming more
global
Why is Food Fraud increasing?
The horsemeat scandal
Example of Complex Supply Chain
Source: www.economie.gouv.fr
Vanilla: a classic case of supply and demand …
Euros/tonneTonnes produced
Current price: 30 € / kg
But in 2003: prices reached 500 € / kg
Food fraud risk
Example of Rising Price
Over
2,100
records
$60 million
impact for a
small $500
million company
$400 million
impact for a
large $10 billion
company
Cost of one
incident
between
2% to 15% of
ann. rev.
• source: GMA
Cost to global
food industry
est. $ 30-40
billion
• source: J. Spink, MSU
Level of fraud
est. 10%
• source: UK FSA
Some Numbers on Food Fraud
The Impact of Food Fraud
Impact on business
•Consumer trust
•Lost sales
•Crisis management
Impact on consumer
•Most cases of food fraud not harmful
•But there are some notable exceptions
Global Response
2012
2013
2014
2015
Food Fraud Think Tank - New Concept for GFSI
‘Think like a
Criminal’
Recommendations by Think Tank
• Supply chain mapping
• Socio-economic
• Behavioural
• Geo-political
• Historical
Vulnerability
Assessments
• Monitoring strategy
• Origin/label verification
• Specification management
• Supplier audits
• Analytical testing strategy
• Anti-counterfeit technologies
Vulnerability
Control Plan
‘Think like a
Criminal’
GFSI Position - Integral Part of FSMS
Prevention of
intentional adulteration
• Economically motivated
Prevention of
intentional adulteration
• Ideologically motivated
Prevention of
unintentional /
accidental adulteration
• Science based
HACCP
Hazards
TACCP
Threats
VACCP
Vulnerabilities
Food Safety Food Defence Food Fraud
Implementation of Food Fraud Prevention
Incorporation in
GFSI Guidance
Document Vs. 7
(2016)
Incorporation in
Food Safety
Management Schemes
Implementation and
execution in
companies’ FS
Management System
Certification via third
party audits
Next Steps
WHAT
• Requirements
HOW
• Guidelines for implementation
Help companies undertake a
vulnerability assessment
Help companies prepare a
plan to control the identified
vulnerabilities
Practical guidance
Initiative on the ‘HOW’
Food Fraud - Threats & Impacts

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Food Fraud - Threats & Impacts

  • 1. THE INDUSTRY'S RESPONSE FOOD FRAUD - Threats & Impacts Petra Wissenburg, Food Safety @Danone
  • 2. Outline  Introduction to Food Fraud  Types  Drivers  Impact  Food Industry’s Response
  • 4. Economically driven Motivation is ‘GAIN’ Intentional adulteration Terminology Ideologically driven Motivation is ‘HARM’ Science based Food borne illness Food Fraud Food Defence Food Safety Food Quality Unintentional / accidental adulteration
  • 5. FOOD FRAUD SUBSTITUTION CONCEALMENT MISLABELLING GREY MARKET PRODUCTION/ THEFT/ DIVERSION UNAPPROVED ENHANCEMENTS COUNTERFEITING DILUTION • Sunflower oil partially substituted with mineral oil • Hydrolyzed leather protein in milk • Poultry injected with hormones to conceal disease • Harmful food colouring applied to fresh fruit to cover defects • Sale of excess unreported product • Copies of popular foods - not produced with acceptable safety assurances. • Melamine added to enhance protein value • Use of unauthorized additives (Sudan dyes in spices) • Expiry, provenance (unsafe origin) • Toxic Japanese star anise labeled as Chinese star anise • Mislabeled recycled cooking oil • Watered down products using non-potable / unsafe water • Olive oil diluted with potentially toxic tea tree oil Terminology
  • 6. * 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. Top Foods & Ingredients for Fraud Fish Olive Oil Milk Honey
  • 8. complex food supply chains Challenging economic times Increasing pressure for unscrupulous suppliers to commit food fraud Food supply is becoming more global Why is Food Fraud increasing?
  • 9. The horsemeat scandal Example of Complex Supply Chain Source: www.economie.gouv.fr
  • 10. Vanilla: a classic case of supply and demand … Euros/tonneTonnes produced Current price: 30 € / kg But in 2003: prices reached 500 € / kg Food fraud risk Example of Rising Price
  • 11. Over 2,100 records $60 million impact for a small $500 million company $400 million impact for a large $10 billion company Cost of one incident between 2% to 15% of ann. rev. • source: GMA Cost to global food industry est. $ 30-40 billion • source: J. Spink, MSU Level of fraud est. 10% • source: UK FSA Some Numbers on Food Fraud
  • 12. The Impact of Food Fraud Impact on business •Consumer trust •Lost sales •Crisis management Impact on consumer •Most cases of food fraud not harmful •But there are some notable exceptions
  • 14. 2012 2013 2014 2015 Food Fraud Think Tank - New Concept for GFSI ‘Think like a Criminal’
  • 15. Recommendations by Think Tank • Supply chain mapping • Socio-economic • Behavioural • Geo-political • Historical Vulnerability Assessments • Monitoring strategy • Origin/label verification • Specification management • Supplier audits • Analytical testing strategy • Anti-counterfeit technologies Vulnerability Control Plan ‘Think like a Criminal’
  • 16. GFSI Position - Integral Part of FSMS Prevention of intentional adulteration • Economically motivated Prevention of intentional adulteration • Ideologically motivated Prevention of unintentional / accidental adulteration • Science based HACCP Hazards TACCP Threats VACCP Vulnerabilities Food Safety Food Defence Food Fraud
  • 17. Implementation of Food Fraud Prevention Incorporation in GFSI Guidance Document Vs. 7 (2016) Incorporation in Food Safety Management Schemes Implementation and execution in companies’ FS Management System Certification via third party audits
  • 18. Next Steps WHAT • Requirements HOW • Guidelines for implementation
  • 19. Help companies undertake a vulnerability assessment Help companies prepare a plan to control the identified vulnerabilities Practical guidance Initiative on the ‘HOW’