Counterfeiting is a major problem in the global food and drink industry with the level of fraud estimated at around $50 billion a year, an audience at the American Association for the Advancement of Science (AAAS) annual meeting heard yesterday.
Worldwide trade in fake foods not only costs processors in terms of damage to brands, but also means companies have to spend more on security measures, such as holograms on packaging.
John Spink, director of the Packaging for Food and Product Protection (P-FAPP) initiative at Michigan State University said that trade in counterfeit goods is likely to increase as food prices rise.
“Products are moving around the world so fast now that there is more opportunity for fraud. When food was distributed more regionally, there was less potential for large scale fraud, or outbreaks of any kind,” he argues.
He said that while counterfeiters are seeking not to harm but to hide the act for profit, there is a public health risk associated with food fraud as in the case of milk and pet food adulterated with melamine causing deaths and kidney problems for children, and catfish containing banned antibiotics.
Other recent examples of food and beverage fraud, continued Spink, include conventionally grown vegetables sold as organic, fish sold as a more premium species, and canned energy drinks of unknown origin labeled with brand names.
The packaging expert said he is developing a criminal justice program that is focused on food counterfeiting: “We take a risk based approach to analyze where the gaps are and look closer at where there is higher reward for fraud.”
According to a 2007 report from the Organization for Economic Co-operation and Development (OECD), fruit such as kiwis, conserved vegetables, milk powder, butter, ghee, baby food, instant coffee, alcohol, drinks, confectionary, and hi-breed corn seeds are some of the most faked food and drink items.
The OECD report found that alcohol products are the prime targets for counterfeiters in the drinks sector, both because of their brand value and the high tax and excise component of the final price.
Source: FoodProductionDaily.com