By Dr Emma Surman and Dr Sheena Leek, Department of Marketing
Birmingham Business School, University of Birmingham
Food fraud is big business and hugely prevalent but how many of us are aware of what it is or what can be done about it?
It is estimated that Food Fraud contributes $14 billion to the world’s economy and this criminal activity is so profitable that narcotics gangs in Mexico have moved into the field. But as we go about our weekly shop, grab a quick sandwich for lunch, dine out with friends or consume a take way in the comfort of our own homes, we probably take for granted that what we eat is what we think it is. Understanding the challenges that food fraud poses organisations and consumers was the subject of a panel debate at the recent Future Food Symposium that we hosted at Birmingham Business School.
Bringing together a panel of experts, Sterling Crew, (Chair of the Food Authenticity Network), Jessica Merryfield (Head of Policy and Campaigns, Chartered Trading Standards Institute), John Points (Consultant and Technical Director, Food Authenticity Network), Professor Louise Manning (Professor of Sustainable Agricultural Systems, University of Lincoln) and Professor Anirban Mukhopadhyay (Professor of Marketing and Behavioural Science, Bayes Business School) the 200 delegates at the event learnt that the term food fraud encompasses a wide range of activities including;
- Mislabelling of product whereby one product is passed off as another as another (as in the horsemeat scandal in the UK in 2013),
- The diversion of food waste that is rejected or deemed unfit for human consumption back into the food supply chain (FSA, 2024),
- Adulteration of products such as the addition of other ingredients e.g. diluting fruit juice with water, adding peanut powder to almond powder (FSA, 2024),
- Substitution of one product for another -e.g. replacing lamb in dishes with goat (FSA, 2024),
- Misrepresentation – e.g. stating something is organic, free range, halal when it is not (FSA, 2024),
- Counterfeiting – the copying of a brand name, packaging, processing method, recipe (Spink, n.d.).
Supply chains are becoming increasing complex, lengthy and global, creating vulnerabilities and leading to challenges in terms of traceability of products. Add to this recent events such as Brexit, the war in Ukraine and the recent increase in employers’ National Insurance contributions which have all driven up costs. Together, these pressures are creating both the conditions and the incentive for a surge in these types of activities.
The impact of food fraud goes beyond consumer deception and trust and can have serious health and welfare implications. In 2016, a customer in an Indian restaurant was assured that a dish did not contain peanuts, but subsequently died following a severe anaphylactic shock. Investigations revealed that the owner substituted the thickening agent, almond powder, with ground nut mix which contained peanuts in order to reduce costs. The economic consequences are also large, with the aforementioned horsemeat scandal said to have cost the UK industry £850 million.
Although punishment for perpetrators can include fines and imprisonment for individuals as well as senior management, the penalties for these crimes can appear lenient in comparison to other white collar crimes.
At a policy and regulatory level, international collaboration is needed to share information, harmonise standards and regulations and conduct joint investigations (Finnerty and Campbell, 2024). At the company level, food fraud can be addressed through technologies like DNA fingerprinting, spectroscopy, blockchain, and fingerprint access controls. These tools help restrict access to high-risk areas, improve traceability, and provide consumers with more detailed information.
Organisations can further reduce the opportunity for employers to commit food fraud by conducting due diligence within the supply chain, creating an antifraud culture within the organisation and enhancing training for staff.
There is also a role for consumers: if there are any concerns or suspicions, these can be reported anonymously to the National Food Crime Unit whose role is to detect and investigate food crime.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the University of Birmingham.