Eco-Labeled Foods Face High Fraud Risk, Research Shows

Organic and eco-labeled food products face high risk of food fraud because they command a higher price, and the growing market for sustainable and premium foods increases the risk, according to market research group Ecovia Intelligence.

Such fraud has economic, environmental and health implications; greater transparency in the supply chain can combat the problem, Ecovia suggests.

In May, 2017, a shipment of 36 million pounds of corn and soya beans into the U.S. was falsely labeled as organic; by obtaining organic status, the shipment - which originated in Ukraine - increased in value by about $4m on arrival in California.

Ecovia Intelligence says Asia faces the most risk from food fraud. “In the last decade, food scandals have involved mislabeled organic pork, rotten meat, and sewage oil,” Ecovia reports. “In 2008, the adulteration of dairy products and milk powder with the industrial chemical melamine led to six baby deaths and 300,000 sick.”

Asia faces high risk because of the growing demand for organic food combined with a lack of regulations and/or enforcement.

Cocoa and Sugar at Higher Risk

Confectionery containing fairtrade or organic cocoa and sugar carry one of the highest risks of adulteration and mislabeling in the food and drink industry, Ecovia Intelligence told Confectionary News. The supply chains for these items is particularly long and complex, making them a target for fraud.

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Such fraud has economic, environmental and health implications; greater transparency in the supply chain can combat the problem, Ecovia suggests.

In May, 2017, a shipment of 36 million pounds of corn and soya beans into the U.S. was falsely labeled as organic; by obtaining organic status, the shipment - which originated in Ukraine - increased in value by about $4m on arrival in California.

Ecovia Intelligence says Asia faces the most risk from food fraud. “In the last decade, food scandals have involved mislabeled organic pork, rotten meat, and sewage oil,” Ecovia reports. “In 2008, the adulteration of dairy products and milk powder with the industrial chemical melamine led to six baby deaths and 300,000 sick.”

Asia faces high risk because of the growing demand for organic food combined with a lack of regulations and/or enforcement.

Cocoa and Sugar at Higher Risk

Confectionery containing fairtrade or organic cocoa and sugar carry one of the highest risks of adulteration and mislabeling in the food and drink industry, Ecovia Intelligence told Confectionary News. The supply chains for these items is particularly long and complex, making them a target for fraud.

Read Full Article