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28th November 2023 by Karen Constable

Olive Crisis (Fraud Warning)

The world’s olive crisis is hitting supply chains hard and fraud is rampant.

First it was the disease Xylella fastidiosa, which decimated olive groves across parts of Europe. Then came a drought in key growing areas of Europe. Production is down, and crime is up.

Puglia in Italy once produced half of Italy’s olive oil and was home to 60 million of olive trees, many of which were hundreds of years old but has lost 21 million trees to Xylella fastidiosa since 2013.

 

Olive oil is one of the most fraud-affected food products on earth, with reports dating back to the first century. The ancient historian Aelius Galenus described how merchants would dilute expensive olive oils with cheaper ingredients to increase their profits. A fifth-century Roman cookbook describes how to make cheap Spanish oil resemble expensive Italian oil by adding minced herbs and roots.

Since I began collecting food fraud stories in 2015, olive oil adulteration and misrepresentation have featured often, but in the past few months, the number of incidents has increased noticeably. And these days, it’s not just oil, other olive products are also at risk of food fraud.

I first started collecting information about threats to olive oil supplies in 2016, writing that olive growers were having trouble with pests and diseases, including Xylella fastidiosa, in Italy, Greece and Spain.  In 2016, experts were predicting price rises for olives and olive oils in Europe, the United Kingdom and America because of risks to harvests from the disease.

One area hit hard by the disease was the Italian region of Puglia, which used to produce 50 percent of Italy’s olive oil. Xylella fastidiosa appeared in the region in 2013, and 21 million trees were lost to it within a few years.

Less high-quality Italian olive oil meant more motivation for fraud, and the criminals responded.

In 2017, a survey of more than three hundred thousand litres of olive oil, conducted over two years in Brazil found 64% of 279 samples were substandard, with some products containing 85% soybean oil.

Since then, the number of food fraud incidents for olive oil appears to have grown, with a startingly high number this year. Among the food fraud reports that I have seen and collected for the Trello-hosted Food Fraud Risk Information Database and The Rotten Apple, this year’s tally stands at more than triple the ‘usual’ annual count.

From 2015 to 2021 there were zero to four reports of olive oil fraud in international media per year. In 2022, that number climbed to six. This year I have counted fifteen.

An unscientific tally of food fraud incidents and survey results, 2015 – 2023, by the author

 

It’s worth noting that this tally is indicative at best because it only captures incidents and survey results which are reported by mainstream media outlets or scientific journals AND discovered by me and my software during my searches for food fraud intelligence.

Olive fraud in 2023

In 2022, olive oil was predicted to become 25 percent more expensive due to droughts in the main olive-growing areas of Europe. However, the predictions fell short and prices have risen by significantly more than 25 percent.

Olives are becoming so expensive and scarce that criminals are chainsawing off fruit-laden branches of olive trees, and even taking whole olive trees from ochards by night in Europe. Some growers are even microchipping their trees in response to the thefts.

Last month, Bloomberg reported that European retail prices have doubled in the past year, and that EU exports of olive oil are expected to be lower by 10 percent.

In 2023 I have recorded a total of fifteen incidents and survey results from countries including Spain, Canada, Italy, Greece, Morroco, Brazil and Portugal. The fraud types included clandestine manufacture, marketing irregularities, theft of oil, theft of olives, labelling irregularities, blending with undeclared oils and mislabelling of the grade of oil.

In October I warned that due to the shortage of olives in Europe, non-European-grown oils could be fraudulently misrepresented as European oils.

Today’s food fraud news contains warnings about Moroccan olive oils, which are now subject to export restrictions to protect domestic supplies, after annual production dropped to less than half of 2021 levels following two years of drought in the country.

On the other side of the world, Brazillian authorities are closing down clandestine manufacturing sites, while Spanish law enforcement agencies have undertaken 300 different operations in olive growing areas, stopping vehicles full of stolen fruit, raiding oil mills and arresting mill operators who are processing stolen fruit. In Greece, the government is warning consumers of increased fraud risks and recommending they only buy their oil from reputable vendors.

Takeaways for food professionals

If you or your business purchase olive oil, limit your risk of purchasing fraud-affected oil by:
  • purchasing from reputable vendors and authorised stockists – avoid online stores, markets, street vendors, small independent outlets and anonymous sellers which are more likely to sell counterfeits and products from unauthorised or grey market sources;
  • purchasing premium brands, which are more likely to tightly control their supply chains;
  • considering sourcing oil from non-European growing regions, which may be less affected by scarcity and price increases;
  • paying attention to the taste and aroma of the oil and informing the vendor of any defects.

In short: 🍏 Olive oil has been vulnerable to food fraud since the beginning of recorded history 🍏 Experts have been warning of impending supply problems and price rises for olive oil since 2016 🍏 Tree diseases have decimated harvests in many major olive growing regions, and drought is also having a severe impact 🍏 Prices have increased significantly, for both olives and olive oil 🍏 Fraud activities in olives and olive oil appear significantly more numerous in 2023 compared to past years 🍏

Sources:

Mueller, T. (2007). Italy’s Great Olive-Oil Scam. The New Yorker. Available at: https://www.newyorker.com/magazine/2007/08/13/slippery-business

‌Ministério da Agricultura e Pecuária. (n.d.). Inspeção do Ministério da Agricultura identifica 45 marcas de azeite fraudados. Available at: https://www.gov.br/agricultura/pt-br/assuntos/noticias/mapa-identifica-45-marcas-de-azeite-fraudados

Olive Oil Times. (2022). Reimagining the Xylella-Devastated Landscape of Southern Puglia. [online] Available at: https://www.oliveoiltimes.com/business/reimagining-the-xylella-devastated-landscape-of-southern-puglia/114128

‌Petroni, A. (n.d.). The plan to save Italy’s dying olive trees with dogs. [online] www.bbc.com. Available at: https://www.bbc.com/future/article/20230111-the-super-sniffer-dogs-saving-italys-dying-olive-trees.

‌Food Fraud Advisors Food Fraud Risk Information Database: Olive Oil. Available at: https://trello.com/c/GHwJnQGp/369-olive-oil

 

This post originally appeared in The Rotten Apple.

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Filed Under: Food Fraud

20th January 2016 by foodfraudadvisors

Traceability myth #3: Traceability equals authenticity

Traceability in the food supply chain leads to authentic food: it’s a myth.  In this third and final look at common misconceptions about traceability, I examine the links between traceability and authenticity of food.

Traceability can be difficult with a complex food, but it’s not impossible.  At the simplest level it is about knowing where every ingredient in a food product has come from and being able to identify the ingredients in each batch of your product to their own individual lots.  If you are a food business that has managed to achieve a transparent supply chain then in addition to basic traceability you will also know the sources of each of your suppliers and their suppliers, resulting in a ‘trail’ that leads all the way back to the farm or fishing boat.

Knowing where your ingredients have come from and being able to trace them back to your suppliers is a great start when it comes to protecting the authenticity of your finished product.  Knowing more about your supplier’s suppliers can also give a food business peace of mind when assessing the risk of receiving fraudulent materials.  Unfortunately, though, even within a completely transparent supply chain there can be opportunities for fraudulent adulteration, substitution or misrepresentation of food materials.

Take for example a bottle of virgin olive oil on the shelves of an inner city specialty grocer; the retailer purchases from a wholesaler who has a direct relationship with the olive processor which processes olives for a collective of farmers from a small olive growing region.  It’s a short supply chain and very transparent.  The retailer knows exactly where the oil comes from.  But that does not mean that the retailer knows what was going on at the oil processing facility.  Perhaps the most recent local harvest was very poor, perhaps the processor was under financial stresses and was tempted to dilute the pure local oil with cheaper bulk oil from another region or country.  Maybe the wholesaler was tempted to switch labels on some of his olive oil ranges to increase his profits…   Each of these scenarios result in fraudulently adulterated, diluted or substituted product.  If the retailer is selling the oil with regional provenance claims, organic claims or claims about special grades or standards of oil and the oil has been adulterated, diluted or substituted he is then unwittingly committing food fraud himself.  It’s an unpleasant scenario, and one that is unfortunately common.

Transparency has many benefits to supply chain management, and can provide some assurances against food fraud but it does not automatically guarantee authentic food ingredients and food products.

Traceability myth#1; consumers want transparency

Traceability myth #2; traceability is expensive

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Filed Under: Authenticity, Food Fraud, Supply Chain, Traceability

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