Food fraud takes many different forms, causing negative effects in the entire supply chain. Operators within the food industry should be aware of the most important food fraud risks.
The risk of food fraud needs to be considered in all steps of the food industry supply chain. In addition to economically motivated food fraud, also climate change and its diverse effects on crops and the markets is contributing to novel risks of illegal trends emerging around the world.
The growth of non-compliance is strong: according to highest estimates, the costs of food fraud to the global food industry may be up to USD 40 billion annually, the U.S. Food and Drug Administration reveals. This may have legal, economic, social and health-related ramifications. It is thus important that companies operating within the food industry do their part to prevent risks from being realized.
Tackling a range food fraud scenarios
Mechanisms for food fraud are diverse, and constantly evolving. IFS Management has categorized types of frauds, from the substitution of products with unwanted raw materials, to the mislabeling and adulteration of products (such as enhancing product appearance) and counterfeiting, which covers copyright violations. Even small violations within the supply chain can result in significant risks down the line.
Although each company must adapt to the specific requirements of their unique environment, certain basic measures can be done to reduce risks related to food fraud.
- Identify the most significant risks to your company’s operations, including all products and services. Certain food products, such as honey and olive oil, are more susceptible to food fraud due to their high demand, price level or other variable factors.
- In risk assessments, cover the entire supply chain. Gather relevant data on products and their origin throughout the chain prevent violations and meet necessary requirements. The more complex the supply chain, the more systematic risk management is needed. Do necessary due diligence on existing or potential partners and suppliers.
- Stay ahead of the curve: monitor the changing operating landscape for emerging risks as well as new requirements. Regulations, such as EU Forestation Regulation, are paving the way for better transparency in data collection and sustainability, also in food products.
By choosing Haarla’s, you add safety to your ecosystem of food solutions. Want to learn more about how to identify risks in your supply chain? Download a free step-by-step guide to tackle food fraud. ❌ Learn how to assess risks, implement best practices, and protect your supply chain from Haarla expert!
