Wednesday, June 5, 2013

ASPECTS OF FOOD FRAUD - Part 2 of 3

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How serious is FRAUD?  Let me pose a couple questions.

 - I mix 10% high fructose corn syrup into honey and sell it as 100% pure Honey.  I make more margin and it is not hurting anyone.
 - People can eat horse - so I mix horse meat into my beef - so what?
 - People can't tell the difference between Tilapia and Red Snapper.  So I make more money and sell the Tilapia as Snapper - it's still good quality fish!
 - I can get more by smuggling my green coffee from country X into country Y, re-bag and then sell it as country Y.
 - There is a lower import tariff on my cabbage if I say it comes from Mexico and not Canada.  It is still cabbage and a good product.  I am not hurting anyone.
 - The product is still good, it is OK to change the best used by date.

These are all statements to get several points across.  The first is that the fraudster is doing this to make/save money.  In the case of the honey, the corn syrup is not an allergen and is a safe, lower cost substitute.  The problem is, with this example and the others, there is no transparency to the supply chain.  If there is a problem with the corn syrup - good luck doing a recall because there will not be a record of this raw material adulteration.  Neither will you be able to do a complete hazard analysis because there is no information on the manufacturing conditions of the corn syrup.  Thus, you will not know how extensive the problem is in your product.

Secondly, Tilapia is half the price of Red Snapper.  From a consumer perspective - I am not getting the quality that I am expecting.  If I purchase a Lamborghini - I expect a Lamborghini engine, not a Volkswagen engine.  Not that there is anything wrong with a Volkswagen - it is just the fact that it is not what I purchased.  Money is tight for many people - why should we give money away so some one else can live better (without honestly working for it).

Third - The reason for import Tariffs is to discourage product dumping.  And again, when a country of origin is changed, any issue with the product cannot be traced back to the originator.  I seriously doubt that the company/people in country X have kept documentation of the change stating "produced in country Y". 

Fourth - By changing the ingredient, country origin, date coding, location of where the product can be sold, etc. You are increasing the food safety risk to the consumer.  You loose transparency on issues such as allergens, sanitation, pesticides, heavy metals, antibiotics, and quality - just to name a few.

Fraud is a crime of opportunity which may or may not cause a food safety issue.  The fraud could endanger customers, consumers, brand equity, employment, and trust in a company. 

In part three - how to combat food fraud.

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