Detection of fraud in the food chain: mission impossible? Can food Producers cope with the challenge? Beate Kettlitz Director Food Policy, Science and R&D
ESOF 2014 Copenhagen 2 Outline Introduction to food industry What are we talking about? Recommendations
ESOF 2014 Copenhagen 3 Who we are Role: Represent the food and drink Manufactures at the EU Level National federations (26, including 3 observers) E.g.: FDF (UK), ANIA (FR), BLL (DE), PFPZ (PL), FederAlimentare (IT), FIAB (SP), etc. Observers: Turkey (TGDF), Norway (NHO), Baltic (BFU) European sector associations (25) E.g.: Breakfast cereals (CEEREAL), Chocolate, Biscuits and Confectionary (CAOBISCO), Spirit drinks (CEPS), Diary products (EDA), Snacks (ESA), Soft drinks (UNESDA), etc. Major food and drink companies (17) E.g.: Coca-Cola, Cargill, Danone, Kellogg, Mars, Nestlé, PepsiCo, Ülker, Unilever, etc.
ESOF 2014 Copenhagen 4 Food and drink industry figures 2013/2014
ESOF 2014 Copenhagen 5 Challenges for the food and drink Industry More complex supply and production More elaborated food products Longer supply chains New constraints imposed by just-in-time requirements Increased level of protection Financial crisis has criminals looking for new ways to make money and they are increasingly looking at food
ESOF 2014 Copenhagen 6 Definitions: Food fraud: Fraud means the intentional violation of EU Food Law, which includes food adulteration. (Suggested definition of FoodDrinkEurope) Economic adulteration: intentional fraudulent modification of a finished product or ingredient for economic gain. (Lorna Zach a, M. Ellin Doyle b, Vicki Bier c, Chuck Czuprynski 2012) Counterfeiting: unauthorised representation of a registered trademark carried on goods similar to goods for which the trademark is registered, with a view to deceiving the purchaser into believing that he or she is buying the original goods. (Spring 2009)
ESOF 2014 Copenhagen 7 What are we talking about? GFSI 2013
ESOF 2014 Copenhagen 8 Intentional v Unintentional Adulteration GFSI, 2014
ESOF 2014 Copenhagen 9 Steps to manage the risk of economic adulteration 1. Understand portfolio vulnerabilities 2. Enhance detection programmes 3. Employ a comprehensive set of deterrence strategies 4. Deploy a holistic programme in the organisation
ESOF 2014 Copenhagen 10 Role of the entire value chain GMA 2010
ESOF 2014 Copenhagen 11 What can be done about it? Industry collaboration Collection and dissemination of information to provide safeguard for industry-wide information sharing Establish partnerships to facilitate information sharing Every value chain has its role to play in preventing fraud Increase transparency and partnership Work with researchers to better verify authenticity Legitimate businesses benefit in their operations if competent authorities limit any illegal activities
ESOF 2014 Copenhagen 12 FoodDrinkEuropes role in research involvement in Food Integrity Project Project aims to: Facilitate the sharing of information between stakeholder groups regarding European food integrity. Establish processes for harmonising & exploiting existing databases. Establish fit for purpose methodology to address stakeholder needs. Identify and address research gaps Establish a self-sustaining Food-fraud early warning system for identifying emerging fraud risks. Establish a self-sustaining worldwide network of stakeholders to ensure maximum uptake of the project legacy.
ESOF 2014 Copenhagen 13 Conclusions and Recommendations Evaluate past incidents across the industry Observe market trends Make vulnerability assessments For industry develop warning systems (e.g. to eventually include in FoodDrinkEurope incident management system) Better collaboration between industry and government to improve food control, especially in developing and emerging markets Improve detection programmes Get involved in research projects addressing the issue