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7th September 2021 by foodfraudadvisors

Future and emerging threats of food fraud

Food fraud: you don’t want it.

  • If you are manufacturing, wholesaling or retailing food or beverages, fraudulent activities within your supply chain pose risks to your brand and to your customers.
  • Different food types vary in their susceptibility to food fraud.
  • The risks change over time.
  • Purchasers of food and food ingredients must remain vigilant about new and emerging risks.
  • The requirement to monitor emerging and predicted food fraud issues is a part of all major (GFSI) food safety standards.

Learn how to monitor food fraud threats here.

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Filed Under: Food Fraud, Horizon Scanning Tagged With: authenticity, BRC, food fraud, food safety standard, GFSI, horizon scanning, supply chain, VACCP

8th August 2020 by foodfraudadvisors

Organic Food Fraud in 2020

Twelve million dollars buys a lot of raspberries. Even if they are organic. In August 2019, a $12m shipment of (supposedly) organic raspberries was intercepted at the Chilean border, as they were being exported to Canada. They were accompanied by fake organic declarations and fraudulent paperwork claiming they were grown in Chile.

It was an all too common occurrence; organic food fraud, committed by criminals to profit from the higher prices consumers will pay for organic, “clean” produce. The raspberries were not grown in Chile; they had been shipped all the way from China; imported to Chile so the fraudsters could pretend they were locally grown.

And they were not organic.

Organic berries are vulnerable to food fraud

 

Sales of organic food have increased since the global corona virus pandemic started. Sales in the USA were up 50% in March 2020. An Organic Trade Association poll of “likely organic shoppers” found 90% of respondents think buying organic has become more important because of the virus, presumably because of an increased focus on health and healthy eating.

Sales of organic food are increasing year on year. In 2019, American consumers bought $55.1 billion worth of organic food, up on the previous year by 4.6% .

As organic food becomes ever-more popular, frauds like the raspberry heist are becoming more common. It is impossible for a consumer to know whether food is authentically organic or not. This makes organic fraud easy for criminals to get away with. Organic foods are one of the food types most frequently affected by food fraud, according to the Decernis Food Fraud Database.

The good news for the USA is that after many years of criticism of its organic program, the Department of Agriculture (USDA) is making a visible effort to reduce fraud in the organic supply chain.  In fact, they are proposing new rules that aim to strengthen control systems, improve traceability for organic produce, and increase enforcement of the USDA organic regulations.

Organic peas vegetable pesticide
Organic foods and food fraud are like two (freshly picked) peas in a pod.

How to protect your business from organic fraud

If you have a food business that buys or sells organic food, you are at risk, now more than ever. Global supply chains have been disrupted by the pandemic and these disruptions mean many suppliers are struggling to deliver foods that meet specifications. It is tempting for wholesalers and distributors to substitute conventionally-grown produce for organic to make extra profits, or simply to allow them to fulfill customers’ orders.

Step 1: Become aware

Don’t be blind to the risks. Organic fraud happens more often than most people realise. Would you be able to tell the difference between an organic raspberry and a conventionally grown raspberry? Probably not. If criminals in Chile found it profitable to transport fake organic raspberries right across the globe before the pandemic, you can bet they are even more motivated to perpetrate fraud in the current economic climate.

Step 2: Educate yourself

If you own a food business, educate yourself about the risks. Learn about organic fraud; how it is perpetrated, what it looks like.

Michigan State University and the USA Organic Trade Association have published a free online course in Organic Fraud Prevention. It is US-centric but contains fraud detection and prevention strategies that can be applied anywhere.

Step 3: Assess your ingredients and products

Make a list of the organic food ingredients or food products that your business purchases. For each item on the list, ask yourself the question: “Can I be sure this is really organic?”.

Right now, you probably rely on verbal assurances from suppliers or pretty logos on packaging or invoices. That’s a fool’s game.

Instead, seek proper documentation from suppliers: request copies of organic certificates and cross-check them against invoices and labels. Or take a minute to research the certifications and logos on labels. All reputable organic certification bodies maintain a list of certified products or suppliers that you can check online. If the product or grower has a genuine organic certification, you will find it listed on the certification body’s website.

Unfortunately, it’s not uncommon for food companies to use organic logos without having the proper certifications.  Always check.

You can also check the list of fraudulent certificates on the USDA organic program website.

If your business operates a food safety program it should already have a food fraud vulnerability assessment.  Review that assessment.  All organic foods should be rated as “vulnerable” in the vulnerability assessment and they must have appropriate mitigation strategies applied to reduce the risks.

Step 4; Take steps to reduce the risk

If you can’t be sure of the authenticity of the ingredients or products you are buying (and selling) you only have two choices:

(i) change your supplier to one with a properly certified organic program, or

(ii) stop making organic claims about the products you sell.

To do anything else puts you at risk of inadvertently committing food fraud, which is a criminal offence.

Consumers are buying more organic foods than ever before.  At the same time, the unstable global economy makes fraud more tempting and supply chain disruptions provide extra opportunities for criminals.  Organic food fraud puts your business and brands at risk.

Now is not the time for complacency; stay alert and keep your brands safe.

 

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Filed Under: Authenticity, Food Fraud Tagged With: food fraud, integrity, labeling, organic food, supply chain

1st March 2020 by foodfraudadvisors

Oregano Fraud; six things every food professional needs to know

1. What happened?

Testing was conducted by the Australian consumer group Choice, mirroring tests conducted in the UK and published by the UK Consumer Group Which? in 2015.  A selection of packs of dried oregano were purchased from supermarkets (grocery stores), delis (specialty food stores) and grocers (produce stores) in three cities in Australia and a single sample of each was tested.  Seven of the twelve samples, over fifty percent, were found to be inauthentic, with the inauthentic samples containing between 10% and 90% of ingredients other than oregano, including olive leaves and sumac leaves.

2. Why test oregano?  

Herbs and spices are one of the rock-stars of food fraud; their complex cross-border supply chains, high price per kilogram and the fact that they are often sold in powder or particulate forms make them prime targets for adulteration, dilution and substitution with cheaper materials.  

oregano adulteration
Source: Elliott, C. (2016) Addressing complex and critical food integrity issues using the latest analytical technologies

 

Why oregano in particular?  Professor Elliott, Director of the Institute for Global Food Security, and an international authority on food fraud conducted testing on oregano in the UK in 2015, the results of which were published by the UK Consumer group Which?.  It is possible that Prof Elliott used rapid evaporative ionization mass spectrometry (REIMS), a test method recently made available by Waters Corporation, although Which did not disclose the test method. REIMS makes use of a rapid sampling method that produces vapour which is analysed using time of flight mass spectrometry.  Sophisticated software compares molecular markers in the resulting spectrum with those in known materials in a database, allowing a sample to be quickly identified as belonging to a particular product type or not.  The method has huge potential for testing food authenticity, with one of the advantages being that unlike other tests for adulteration there is no need to specify which adulterants to seek.  A downside is that many hundreds or thousands of tests must be performed and compared to traditional analytical methods to create a database before the method can be used with confidence to determine the authenticity of any given material.

Professor Elliott recently revealed that Waters Corporation and Queens University, Belfast worked together to build a database of oregano samples (Elliott, C. (2016) Addressing complex and critical food integrity issues using the latest analytical technologies).  This means that oregano is one of the few materials that can currently benefit from accurate authenticity testing using the REIMS method. 

3.  Are the results unexpected?

Global food fraud commentators attribute the presence of significant concentrations of adulterants or diluents in dried herbs to economically motivated food fraud in most cases, as opposed to seafood mislabelling which sometimes occurs due to unintentional errors in species identification.  Food fraud is estimated to cost the United Kingdom one billion pounds each year.  It is thought to be very common among some food types, including herbs and spices.

4. Who is responsible?

It is highly unlikely that any of the brand owners named in the Choice report were aware that they were selling adulterated herbs.  Most if not all of the brands included the Australian testing would have been sourced and packed under well-controlled systems that include vendor approval processes, formal specifications for incoming materials (such as bulk herbs) as well as certificates of analysis and declarations of conformity to specification.   The fraudulent tampering probably occurred further up the supply chain during drying, bulk packing, shipping or storage.  Interestingly, all seven adulterated samples contained olive leaves and two contained sumac leaves.  It is possible that tampering occurred in two different points within the supply chain for some products; perhaps one fraudster added olive leaves to bulk lots of the herb at a location close to the oregano growing area and sumac leaves were added by someone else at a later date.

5. What are the legal and financial ramifications?

The sale of misrepresented products is a breach of Australian consumer law and ignorance cannot be used as a defense.  The incidences were investigated by the Australian Competition and Consumer Commission (ACCC), an independent authority of the Australian government.  One company was fined a substantial sum for selling product that contained only 50% oregano leaves.  It is likely that other businesses that had been supplied with inauthentic herbs sought financial redress from their suppliers, either through purchasing contract penalties or through private legal action.

When a food business chooses to voluntarily recall or withdraw their products from the marketplace they may try to claim the costs against their business insurance. Insurance companies will seek to recover their costs from further up the food supply chain and this may have an impact on premiums in coming years.

6. What should food businesses do?

No food business is immune from economically motivated food fraud and preventing food fraud from affecting a business is a multi-functional task that should involve personnel from purchasing, finance and legal departments as well as food safety and quality personnel.  In the short term however, there are some things that can be done by food safety and quality personnel to help prevent, deter and detect food fraud without a lot of investment from other parts of a food business: 

  1. Update your purchasing specifications to include authenticity requirements.
  2. Review your vendor approvals systems and revise questionnaires and requirements if required.  Consider implementing more stringent requirements for those suppliers that provide vulnerable materials.
  3. Request certificates of analysis (CofA) from suppliers of vulnerable materials
  4. Begin a testing regime for vulnerable materials
  5. Investigate the costs and benefits of supply chain audits, including whether ad-hoc, one-off visits to certain suppliers might be worthwhile
  6. Request tamper-evident packaging and bulk container tamper seals for vulnerable raw materials
  7. Ask suppliers of vulnerable materials to undertake a mass balance exercise at their facility or further upstream in the supply chain.
  8. Make a business case for switching suppliers of materials that prove to be consistently problematic and present it to your purchasing department.

Want to learn more about food fraud mitigation in the spice industry?  This article in Food Safety Magazine provides an excellent insight. 

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Filed Under: Adulteration, Authenticity, Food Fraud, Labelling Tagged With: authentic food, coles, consumer group, detection, EMA, integrity, labelling, misrepresentation, recall, sourcing, supermarket, supply chain

21st April 2019 by foodfraudadvisors

Secrets of the horsemeat scandal

How did the enactment of an obscure transport law in Eastern Europe change the face of food manufacturing forever?  Karen Constable investigates the link between Romanian road rules and the horsemeat scandal.

More than six years after it first made headlines, the series of incidents that became known ‘horsegate’ continues to impact the global food industry.  It began in January 2013, when Irish authorities revealed they had discovered horsemeat in burgers that were supposed to contain 100% beef.  The discovery sparked a frenzy of testing and soon horsemeat was being discovered in dozens of different products in countries all over Europe and beyond.  The sheer scale of the contamination sent shock waves through the food manufacturing world.  Occurring five years after the melamine in milk powder scandal of 2008, which sickened over 300,000 babies in China, this incident was unfolding much closer to home for food manufacturers in Europe.  It was a wakeup call for our industry: we could no longer pretend that food fraud of a similar scale and impact as the melamine milk scandal could not happen in the western world.

Numerous massive recalls

The scandal resulted in market withdrawals of tens of millions of food products across Europe, millions of euros of lost business and multiple prosecutions.  Consumers’ trust in manufactured food plummeted and sales of frozen hamburgers and frozen ready meals dropped by 43% and 13% respectively in the United Kingdom in the month following the first product withdrawal.

Multiple investigations

Despite some media reports claiming that the first horsemeat discovery was the result of ‘routine’ testing, it is now known that the scandal was uncovered almost by accident.  As strange as it may seem to the wider community, it is unusual for food manufacturers and regulatory authorities to test foods for materials that are not expected to be present.  This is, of course, how the perpetrators of the Chinese melamine fraud could conduct their activities on such a large scale for what is thought to be a significant length of time.  The original horsemeat tests were conducted by the Food Safety Authority of Ireland because a sharp-eyed inspector had noticed a discrepancy between packaging and labelling of frozen meat.

As the investigations began it became apparent that law enforcement and regulatory authorities were ill-equipped to manage the complex cross-border issues that arose.  Supply chains seemed hopelessly complicated to unravel, with on-paper ownership of meat often disconnected from the physical whereabouts of the food.  By the time the scandal was declared over, investigators had identified at least three entirely separate supply chains involving different slaughterhouses, traders, processors and criminals.

Beef an easy target

Horsemeat and beef meat are similar in appearance, texture and flavour.  Yet the European market for horsemeat is relatively small compared with beef; it is not consumed by people in many Western European cultures. For unscrupulous merchants, however, horsemeat’s abundance and low price made it the perfect substitute for beef.   With access to a cheap, abundant adulterant, the criminals appeared to have an easy job of it.  It was so easy, in fact, that swapping horse for beef appears to have been a long-term business plan for at least one of the meat traders involved in the scandal, Jan Fasen.  Fasen had been convicted and jailed for a similar fraud in 2007.  The name of his company, Draap, is the Dutch word for horse spelt backwards.

In 2019, Fasen and his partner Hendricus Windmeijer were convicted of false labelling by a court in Paris for their role in the supply of 500 tons of meat to ready-to-eat meal-maker Comigel in France in 2012 and 2013.

Complex supply chains

Much of the horsemeat found in the affected products originated in Romania, the by-product of a unique set of circumstances which affected the availability and price of horse meat in that country.  Six years prior to the scandal, a law had been passed banning horse drawn vehicles from the streets of cities and towns in Romania.  Within a few years there was a surplus of unwanted horses, with abandoned animals roaming city streets and parks.  The horses were rounded up and exported to slaughterhouses in neighbouring countries where they were slaughtered for legitimate human and pet food.  By 2007, however, concerns about the spread of equine infectious anaemia, a disease which was endemic in Romania, resulted in a ban on the trading of live Romanian horses.  With live exports stopped, there was nowhere for the horses to go.  Enterprising local businessmen built their own slaughterhouses in Romania and began to export horse meat to Europe.

Draap Trading, a company operated from Belgium and registered in Cyprus, was among those that purchased Romanian horsemeat.  It shipped the meat to the Netherlands where it was re-labelled as beef.  From there it was sold to legitimate meat processors, including one in France who supplied the factory in Luxembourg that manufactured lasagne and spaghetti bolognese for Findus and Aldi.

Separately, a French meat processing company, À la Table de Spanghero was also purchasing horsemeat from Romania and selling it to food manufacturers labelled as beef.  The former director and manager of Spanghero were convicted for their crimes in Paris in April 2019, with the former director being jailed for his role in the saga.

Romania was not the only source, however: the burgers at the centre of the initial discovery in Ireland contained horsemeat that came not from Romania but from Britain, Germany and Poland, via another Dutch trader, Willy Selten.  In 2015 Selten was jailed for 2.5 years for crimes related to the fraudulent supply of horsemeat in 2011 and 2012.  In November 2016 he was ordered to pay €1.2m – the estimated proceeds of his crimes – to the Dutch government.

A long history of horsemeat adulteration?

Given the history of Selten and Fasen, it seems likely that undeclared horse was present in the European food supply for many years, remaining undetected and causing no apparent harm to consumers.  We will never know whether those responsible considered the safety of consumers when planning their crimes.  We do know that unsafe adulterants are more likely to be detected, which makes them less attractive to fraudsters.  Certainly, in the melamine scandal in China, just a few years prior, consumer harm played an important role in the detection of the fraud.  In that case, it is likely that low levels of melamine had been added to milk powder and other products for many months or years without causing any immediate or obvious harm to anyone.  It is thought that the concentration of melamine in baby formula increased in 2007 and 2008 and it was the higher levels that caused kidney problems in babies.  The fraud was uncovered by authorities investigating the illnesses.  Perhaps the extra melamine had been added by mistake, or perhaps the fraudsters got greedy.  Either way, the adulteration was costly for the criminals as well as their victims: two of the people responsible were executed by firing squad in China in 2009.

During the horsemeat fiasco, and to the relief of the entire industry, no person was sickened or injured by the presence of horse in ‘beef’ products.  There was, however, a major health scare: horsemeat can contain veterinary drugs, including phenylbutazone – “bute”, which can be harmful to human health.  It was a lucky coincidence that the overwhelming majority of the contaminated products proved not to contain phenylbutazone.

From horse and beef to chicken, donkey and buffalo

As investigators worked behind the scenes, public events in the European food industry took on the appearance of collapsing dominoes: first was the withdrawal of 10 million burgers by Tesco, Lidl, Aldi, Dunnes Stores and Iceland in United Kingdom.  Tesco lost £300m in market value overnight.  In the following weeks, Asda also removed tens of thousands of products from its shelves; Tesco and Aldi extended their withdrawal from burgers to ready meals; Waitrose withdrew meatballs because of fears they might contain pork; slaughterhouses in Yorkshire and Wales were raided by regulatory authorities; the scandal spread to France and multiple arrests were made on both sides of the English Channel.

By the end of March 2013, authorities had found horse labelled as beef in three Polish factories; equine DNA had been found in chicken nuggets in Greece; water buffalo and donkey had been found in South African burgers and more big brands, including Ikea, Birdseye and Nestle had been affected with their products withdrawn from markets in Cyprus, Belgium, Spain and Czech Republic.

By year’s end, Tesco’s annual profits had fallen by 52%.  Consumer trust in large food manufacturers and retailers was at an all-time low: British consumer organisation ‘Which?’ reported that sixty percent of consumers had changed their shopping habits because of the scandal.

Standards updated

The British government commissioned Professor Chris Elliott to review and report on the implications of the horsemeat contamination for the British food industry.  The Elliott review, as it became known, resulted in the creation of a special food fraud crime unit in that country and the development of a range of other collaborative enterprises across Europe including special functions within the European Joint Research Council (JRC) and food-focussed operations by Interpol known as Operation Opson, now in its sixth year.

The food safety community, initially shocked and alarmed at the potential safety implications of the adulteration soon began a period of discussion and introspection, which often centred around the unspoken question ‘What if the meat had been dangerous?’.  The scandal broke at a time when the GFSI food safety standards were consolidating their revered positions at the pinnacle of ‘best practice’ manufacturing: the standards were being strengthened, lengthened and broadened.  Audit durations were increasing, auditor qualifications and certification systems had become more stringent and standards for packaging, storage and distribution had been upgraded.  And yet these GFSI-endorsed food safety management systems, considered to be the gold-standard for food manufacturing and administered with the strictest oversight, had revealed an Achilles heel the size of Bucharest.   The GFSI promptly created the ‘Food Fraud Think Tank’ to address the gaps and suggest solutions.  This resulted in changes to GFSI’s guidance for food safety standards, with GFSI-endorsed standards being updated to reflect the updated guidance.  The new guidance requires food businesses to formally address the risks from fraudulently adulterated ingredients when they design their food safety management systems.

The food safety landscape had changed, seemingly overnight, from one that was focussed almost exclusively on unintentional or natural contamination to one that requires food manufacturers to consider, control and prevent more unpredictable and sinister events.

In the wake of these changes, a new discipline of food study has appeared.  It is now possible to study food fraud at prestigious educational institutions, attend international conferences devoted to the topic and tune in to webinars conducted by specialists in compliance, legislation and testing.  Analytical chemistry researchers are developing ever-more sophisticated test methods for detecting adulterants.  Food businesses large and small are developing better systems to prevent, deter and detect economically motivated adulteration within their supply chains.

Food manufacturers are slowly regaining the trust of consumers, helped by the visible presence of enforcement operations and government initiatives such as the United Kingdom’s Food Crime Unit and Interpol’s Operation Opson in Europe as well as the Food Safety Modernisation Act (FSMA) in the United States.

And what of the adulterated beef?  We can only guess at how many tonnes of it was eaten by unsuspecting consumers in countries all over Europe before the scandal broke.  Contaminated product that was withdrawn from the market – tens of millions of units – was destroyed; either buried in landfill or used as animal feed.  It seems a sad and wasteful journey for the unwanted horses of Romania; a journey conceived by men who wanted to be rich and one that ultimately changed the face of food manufacturing forever.

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Filed Under: Adulteration, Food Fraud, Food Safety, Impact of Food Fraud, Supply Chain, Traceability Tagged With: authentic food, detection, economically motivated adulteration, EMA, food fraud, food safety, food safety standard, FSMA, GFSI, horse meat, impact of food fraud, recall, supply chain, traceability, VACCP

19th October 2018 by foodfraudadvisors

Raw Material Specifications

Raw material specifications are an important defence against food fraud for all food businesses.  Whether you are a restaurant, a specialty grocer, delicatessen, central kitchen, hotel or manufacturer, you are susceptible to food fraud.  Robust specifications can help to protect your food business from inadvertently purchasing, using or serving fraudulent ingredients and raw materials.  They can also help to protect your business from the financial fall-out if things go wrong.

Fraudulent materials include:

  • adulterated food ingredients, such as melamine added to milk powder to increase the apparent protein content
  • diluted food, such as dried oregano leaves diluted with cheaper leaves
  • substituted food, such as a cheaper grade of olive oil being substituted for virgin
  • counterfeit food, such as ‘fake’ premium vodkas and brandies
  • misrepresented food, such as conventionally grown vegetables that are sold as organic
  • packaging materials made with unauthorised additives, such as banned phthalates

Modern Dairy food-processing industry Worker On A Milk Factory

Specifications for raw materials and ingredients should contain the following information:

  1. Name of the material
  2. A description of the material, including biological, chemical and physical characteristics
  3. Composition of the material, including additives and processing aids
  4. Country of origin
  5. Method of production
  6. Packaging format/s or unit of measure
  7. Delivery method/s
  8. A description of the labelling, lot ID and coding for traceability
  9. Storage conditions and shelf life
  10. Preparation and/or handling before use
  11. Acceptance and rejection criteria
  12. Requirements for certificates of analysis for high risk materials or vulnerable materials
  13. Special requirements such as allergen information, organic status, GMO status, fair-trade and ethical sourcing policies
  14. Information about compliance with statutory and regulatory requirements, where relevant
  15. A requirement for suppliers to notify of any authenticity issues with the product
  16. A requirement for suppliers to notify of any changes to the product
  17. Formal agreement between the supplier and purchaser
  18. Document control features, such as author, date and page numbers.

Download our excellent template today

How to develop a raw material specification:

  • Create a template that suits the needs of your business.  A tabular format is easy to work with.  Include all of the sections above, even if you don’t think you will use them now, or if they are not relevant to some of your materials.  You can always leave them blank.
  • You should create a separate specification for every unique material, do not create category-level specifications.
  • Obtain product specifications from your suppliers and use them to add key criteria to your specifications.
  • Add any extra criteria that will help you to control the quality, safety and authenticity of your products.  It is useful to imagine that you are receiving the material at your door or loading dock; what would you like to know about the material before you accept it? For example: Is it at the correct temperature?  Is it properly labelled?  Is the packaging undamaged with no evidence of tampering?  Is the material free of undeclared allergens?  Does it have the fat content you expect?  Has it been aged (meat) for as long as you expect?  Is it free from salmonella?  Use these questions to check that you have included all important criteria in your specification.
  • Don’t forget to include requirements for suppliers to have a food safety certificate, licence, approval or registration, where relevant.
  • If you are purchasing materials under fixed supplier contracts (as would be the case for  food manufacturers), the draft specifications will need to be approved by your purchasing department and by the suppliers themselves before they can be formally issued and implemented.
  • Review each specification at least annually and update the issue/review date.

Need help?

Contact Us Today

Our food safety and authenticity experts can develop your purchasing specifications. Click here for a free introductory consultation.

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Filed Under: Learn, VACCP Tagged With: audit, authentic food, BRC, critical control points, detection, EMA, food fraud consultant, food safety standard, FSMA, GFSI, specification, SQF, supply chain, template

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