1932

Abstract

Food fraud represents a serious threat to the integrity of the global agri-food marketing system and has received considerable attention by policy makers, academics, and the public at large. This review presents the conditions that enable fraudulent activity in agri-food supply chains (such as asymmetric information, imperfect certification processes, supply chain complexity, and weak monitoring and enforcement systems) and discusses recent efforts to document and deter food fraud and the growing theoretical and empirical literature on the economics of food fraud. The article concludes by identifying some gaps in the literature and provides suggestions for future research.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-resource-101422-013027
2023-10-05
2024-04-18
Loading full text...

Full text loading...

/deliver/fulltext/resource/15/1/annurev-resource-101422-013027.html?itemId=/content/journals/10.1146/annurev-resource-101422-013027&mimeType=html&fmt=ahah

Literature Cited

  1. Akerlof GA. 1970. The market for ‘lemons’: quality uncertainty and the market mechanism. Q. J. Econ. 84:3488–500
    [Google Scholar]
  2. Albersmeier F, Schulze H, Jahn G, Spiller A. 2009. The reliability of third-party certification in the food chain: from checklists to risk-oriented auditing. Food Control 20:10927–35
    [Google Scholar]
  3. Baksi S, Bose P. 2007. Credence goods, efficient labelling policies, and regulatory enforcement. Environ. Resour. Econ. 37:411–30
    [Google Scholar]
  4. Bar T, Zheng Y. 2019. Choosing certifiers: evidence from the British Retail Consortium food safety standard. Am. J. Agric. Econ. 101:174–88
    [Google Scholar]
  5. Bimbo F, Bonanno A, Viscecchia R. 2019. An empirical framework to study food labelling fraud: an application to the Italian extra-virgin olive oil market. Aust. J. Agric. Resour. Econ. 63:4701–25
    [Google Scholar]
  6. Bouzembrak Y, Marvin HJP. 2016. Prediction of food fraud type using data from Rapid Alert System for Food and Feed (RASFF) and Bayesian network modelling. Food Control 61:180–87
    [Google Scholar]
  7. Bouzembrak Y, Steen B, Neslo R, Linge J, Mojtahed V, Marvin HJP. 2018. Development of food fraud media monitoring system based on text mining. Food Control 93:283–96
    [Google Scholar]
  8. Casadei E, Valli E, Panni F, Donarski J, Farrús Gubern J et al. 2021. Emerging trends in olive oil fraud and possible countermeasures. Food Control 124:107902
    [Google Scholar]
  9. Caswell JA, Mojduszka EM. 1996. Using informational labeling to influence the market for quality in food products. Am. J. Agric. Econ. 78:51248–53
    [Google Scholar]
  10. Caswell JA, Padberg DI. 1992. Toward a more comprehensive theory of food labels. Am. J. Agric. Econ. 74:2460–68
    [Google Scholar]
  11. Cawthorn DM, Steinman HA, Hoffman LC. 2013. A high incidence of species substitution and mislabelling detected in meat products sold in South Africa. Food Control 32:2440–49
    [Google Scholar]
  12. Charlebois S, Schwab A, Henn R, Huck CW. 2016. Food fraud: an exploratory study for measuring consumer perception towards mislabeled food products and influence on self-authentication intentions. Trends Food Sci. Technol. 50:211–18
    [Google Scholar]
  13. Chuah LO, He XB, Effarizah ME, Syahariza ZA, Shamila-Syuhada AK, Rusul G. 2016. Mislabelling of beef and poultry products sold in Malaysia. Food Control 62:157–64
    [Google Scholar]
  14. Deka A. 2022. The economic impacts of private politics in food markets PhD Diss. Univ. Nebr. Lincoln:
  15. Di Fonzo A, Russo C. 2015. Designing geographical indication institutions when stakeholders’ incentives are not perfectly aligned. Br. Food J. 117:102484–2500
    [Google Scholar]
  16. Di Pinto A, Bottaro M, Bonerba E, Bozzo G, Ceci E et al. 2015. Occurrence of mislabeling in meat products using DNA-based assay. J. Food Sci. Technol. 52:42479–84
    [Google Scholar]
  17. Di Pinto A, Mottola A, Marchetti P, Savarino A, Tantillo G. 2019. Fraudulent species substitution in e-commerce of protected denomination origin (pdo) products. J. Food Compos. Anal. 79:143–47
    [Google Scholar]
  18. Do TD, Choi TJ, Kim J, An HE, Park YJ, Karagozlu MZ, Kim CB. 2019. Assessment of marine fish mislabeling in South Korea's markets by DNA barcoding. Food Control 100:53–57
    [Google Scholar]
  19. Ehmke MD, Bonanno A, Boys K, Smith T. 2019. Food fraud: economic insights into the dark side of incentives. Aust. J. Agric. Resour. Econ. 63:685–700
    [Google Scholar]
  20. El Benni N, Stolz H, Home R, Kendall H, Kuznesof S et al. 2019. Product attributes and consumer attitudes affecting the preferences for infant milk formula in China—a latent class approach. Food Qual. Prefer. 71:25–33
    [Google Scholar]
  21. EPRS (Eur. Parliam. Res. Serv.) 2014. Fighting food fraud Brief. 16/01/2014 130679REV1 Eur. Parliam. Res. Serv. Brussels:
  22. EUIPO (EU Intellect. Prop. Off.) 2016. Infringement of protected Geographical Indications for wine, spirits, agricultural products and foodstuffs in the European Union Rep. EU Intellect. Prop. Off. Alicante, Spain: https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/Geographical_indications_report/geographical_indications_report_en.pdf
  23. Eur. Comm 2022. 2021 Annual Report: Alert and Cooperation Network Luxembourg: Eur. Comm https://food.ec.europa.eu/system/files/2022-07/acn_annual-report_2021-final.pdf
  24. Fagotto E. 2014. Private roles in food safety provision: the law and economics of private food safety. Eur. J. Law Econ. 37:83–109
    [Google Scholar]
  25. FAO (Food Agric. Organ.) 2021. Food fraudintention, detection and management. Food safety technical toolkit for Asia and the Pacific Rep. 5 Food Agric. Organ. Bangkok: https://www.fao.org/documents/card/en/c/cb2863en/
    [Google Scholar]
  26. Ferreira G, Tucker J, Rakola E, Skorbiansky SR 2021. Fraud in organic foods. Food Fraud: A Global Threat with Public Health and Economic Consequences RS Hellberg, K Everstine, SA Sklare 335–50. Amsterdam: Elsevier B.V.
    [Google Scholar]
  27. Firmani P, De Luca S, Bucci R, Marini F, Biancolillo A. 2019. Near infrared (NIR) spectroscopy-based classification for the authentication of Darjeeling black tea. Food Control 100:292–99
    [Google Scholar]
  28. Food Stand. Agency 2020. The cost of food crime Rep. FS 301065 Food Stand. Agency London: https://www.food.gov.uk/sites/default/files/media/document/the-cost-of-food-crime.pdf
  29. Free C. 2015. Looking through the fraud triangle: a review and call for new directions. Meditari Account. Res. 23:2175–96
    [Google Scholar]
  30. Gambelli D, Solfanelli F, Zanoli R, Zorn A, Lippert C, Dabbert S. 2014. Non-compliance in organic farming: a cross-country comparison of Italy and Germany. Food Policy 49:449–58
    [Google Scholar]
  31. Giannakas K. 2002. Information asymmetries and consumption decisions in organic food product markets. Can. J. Agric. Econ. 50:135–50
    [Google Scholar]
  32. Giannakas K, Fulton M. 2002. Consumption effects of genetic modification: What if consumers are right?. Agric. Econ. 27:297–109
    [Google Scholar]
  33. González-Pereira A, Otero P, Fraga-Corral M, Garcia-Oliveira P, Carpena M et al. 2021. State-of-the-art of analytical techniques to determine food fraud in olive oils. Foods 10:3484
    [Google Scholar]
  34. Hamilton SF, Zilberman D. 2006. Green markets, eco-certification, and equilibrium fraud. J. Environ. Econ. Manag. 52:3627–44
    [Google Scholar]
  35. Hirschauer N, Zwoll S. 2008. Understanding and managing behavioral risks: the case of malpractice in poultry production. Eur. J. Law Econ. 26:27–60
    [Google Scholar]
  36. Interpol 2022. Food crime operations: Operation Opson removes counterfeit and substandard food and drinks from the market Rep. Interpol Lyon, France: https://www.interpol.int/en/Crimes/Illicit-goods/Food-crime-operations
  37. Jones Ritten C, Thunström L, Ehmke M, Beiermann J, McLeod D. 2019. International honey laundering and consumer willingness to pay a premium for local honey: an experimental study. Aust. J. Agric. Resour. Econ. 63:726–41
    [Google Scholar]
  38. Kendall H, Clark B, Rhymer C, Kuznesof S, Hajslova J et al. 2019a. A systematic review of consumer perceptions of food fraud and authenticity: a European perspective. Trends Food Sci. Technol. 94:79–90
    [Google Scholar]
  39. Kendall H, Kuznesof S, Dean M, Chan MY, Clark B et al. 2019b. Chinese consumer's attitudes, perceptions and behavioural responses towards food fraud. Food Control 95:339–51
    [Google Scholar]
  40. Kendall H, Naughton P, Kuznesof S, Raley M, Dean M et al. 2018. Food fraud and the perceived integrity of European food imports into China. PLOS ONE 13:5e0195817
    [Google Scholar]
  41. Kennedy SP, Gonzales P, Roungchun J 2021. Coffee and tea fraud. Food Fraud: A Global Threat with Public Health and Economic Consequences RS Hellberg, K Everstine, SA Sklare 139–50. Amsterdam: Elsevier B.V.
    [Google Scholar]
  42. Levi R, Singhvi S, Zheng Y. 2020. Economically motivated adulteration in farming supply chains. Manag. Sci. 66:1209–226
    [Google Scholar]
  43. Lianou A, Papakonstantinou M, Nychas GJE, Stoitsis J 2021. Fraud in meat and poultry products. Food Fraud: A Global Threat with Public Health and Economic Consequences RS Hellberg, K Everstine, SA Sklare 85–108. Amsterdam: Elsevier B.V.
    [Google Scholar]
  44. Lippert C, Zorn A, Dabbert S. 2014. Econometric analysis of non-compliance with organic farming standards in Switzerland. Agric. Econ. 45:313–25
    [Google Scholar]
  45. Lord N, Flores Elizondo C, Spencer J 2017. The dynamics of food fraud: the interactions between criminal opportunity and market (dys)functionality in legitimate business. Criminol. Crim. Justice 17:5605–23
    [Google Scholar]
  46. Lusk J. 2018. Separating myth from reality: an analysis of socially acceptable credence attributes. Annu. Rev. Resour. Econ. 10:65–82
    [Google Scholar]
  47. Lytton TD, McAllister LK. 2014. Oversight in private food safety auditing: addressing auditor conflict of interest. Wis. Law Rev.289–335
    [Google Scholar]
  48. Manning L. 2016. Food fraud: policy and food chain. Curr. Opin. Food Sci. 10:16–21
    [Google Scholar]
  49. Manning L, Kowalska A. 2021. Considering fraud vulnerability associated with credence-based products such as organic food. Foods 10:81879
    [Google Scholar]
  50. Manning L, Smith R, Soon JM. 2016. Developing an organizational typology of criminals in the meat supply chain. Food Policy 59:44–54
    [Google Scholar]
  51. Marvin HJP, Bouzembrak Y, Janssen EM, van der Fels-Klerx HJ, van Asselt ED, Kleter GA. 2016. A holistic approach to food safety risks: Food fraud as an example. Food Res. Int. 89:463–70
    [Google Scholar]
  52. Meerza SIA, Giannakas K, Yiannaka A. 2019. Market and welfare effects of food fraud. Aust. J. Agric. Resour. Econ. 63:4759–89
    [Google Scholar]
  53. Meerza SIA, Giannakas K, Yiannaka A. 2021. Optimal policy response to food fraud. J. Agric. Resour. Econ. 46:3343–60
    [Google Scholar]
  54. Meerza SIA, Gustafson CR. 2019. Does prior knowledge of food fraud affect consumer behavior? Evidence from an incentivized economic experiment. PLOS ONE 14:12e0225113
    [Google Scholar]
  55. Meerza SIA, Gustafson CR. 2020. Consumers’ response to food fraud: evidence from experimental auctions. J. Agric. Resour. Econ. 45:2219–31
    [Google Scholar]
  56. Minoudi S, Karaiskou N, Avgeris M, Gkagkavouzis K, Tarantili P et al. 2020. Seafood mislabeling in Greek market using DNA barcoding. Food Control 113:107213
    [Google Scholar]
  57. Moore JC, Spink J, Lipp M. 2012. Development and application of a database of food ingredient fraud and economically motivated adulteration from 1980 to 2010. J. Food Sci. 77:4R118–26
    [Google Scholar]
  58. Moreira MJ, García-Díez J, de Almeida JMMM, Saraiva C. 2021. Consumer knowledge about food labeling and fraud. Foods 10:51095
    [Google Scholar]
  59. Moyer DC, DeVries J, Spink J. 2017. The economics of food fraud incident—case studies and examples including melamine in wheat gluten. Food Control 71:358–64
    [Google Scholar]
  60. Muhammad A, Countryman AM. 2019. In vino ‘no’ veritas: impacts of fraud on wine imports in China. Aust. J. Agric. Resour. Econ. 63:742–58
    [Google Scholar]
  61. Nagalakshmi K, Annam PK, Venkateshwarlu G, Pathakota GB, Lakra WS. 2016. Mislabeling in Indian seafood: an investigation using DNA barcoding. Food Control 59:196–200
    [Google Scholar]
  62. Pardo , Jiménez E. 2020. DNA barcoding revealing seafood mislabeling in food services from Spain. J. Food Compos. Anal. 91:103521
    [Google Scholar]
  63. Pardo , Jiménez E, Viðarsson JR, Ólafsson K, Ólafsdóttir G et al. 2018. DNA barcoding revealing mislabeling of seafood in European mass caterings. Food Control 92:7–16
    [Google Scholar]
  64. Parker I. 2021. The great organic food fraud. The New Yorker Nov. 8. https://www.newyorker.com/magazine/2021/11/15/the-great-organic-food-fraud
    [Google Scholar]
  65. Pechlivanos L 2004. Self-enforcing corruption: information transmission and organizational response. The New Institutional Economics of Corruption JG Lambsdorff, M Taube, M Schramm 92–104. London: Routledge
    [Google Scholar]
  66. Pimentel P. 2014. Trends and solutions in combating global food fraud. Food Safety Magazine Febr. 1. https://www.food-safety.com/articles/4323-trends-and-solutions-in-combating-global-food-fraud
    [Google Scholar]
  67. Price L, Rogers L, Lo K. 2022. Policy reforms for antibiotic use claims in livestock. Science 376:6589130–32
    [Google Scholar]
  68. Regan Á, Marcu A, Shan LC, Wall P, Barnett J, McConnon Á. 2015. Conceptualizing responsibility in the aftermath of the horsemeat adulteration incident: an online study with Irish and UK consumers. Health Risk Soc. 17:2149–67
    [Google Scholar]
  69. Schulze H, Albersmeier F, Jahn G, Spiller A. 2006. Checklist governance: risk-oriented audits to improve the quality of certification standards in the food sector Presented at the 16th Annual World Food and Agribusiness Forum, Symposium and Case Conference of the IAMA Buenos Aires, Argentina: June 10–13
  70. Sexton RJ, Lavoie N 2001. Food processing and distribution: an industrial organization approach. Handbook of Agricultural Economics B Gardner, GC Rausser 863–932. Amsterdam: North-Holland
    [Google Scholar]
  71. Shears P. 2010. Food fraud—a current issue but an old problem. Br. Food J. 112:2198–213
    [Google Scholar]
  72. Spink J, Embarek PB, Savelli CJ, Bradshaw A. 2019. Global perspectives on food fraud: results from a WHO survey of members of the International Food Safety Authorities Network (INFOSAN). NPJ Sci. Food 3:112
    [Google Scholar]
  73. Spink J, Moyer DC, Park H, Heinonen JA. 2013. Defining the types of counterfeiters, counterfeiting, and offender organizations. Crime Sci. 2:18
    [Google Scholar]
  74. Spink J, Moyer DC, Speier-Pero C. 2016a. Introducing the Food Fraud Initial Screening model (FFIS). Food Control 69:306–14
    [Google Scholar]
  75. Spink J, Moyer DC, Whelan P. 2016b. The role of the public private partnership in Food Fraud prevention—includes implementing the strategy. Curr. Opin. Food Sci. 10:68–75
    [Google Scholar]
  76. Spink J, Ortega DL, Chen C, Wu F. 2017. Food fraud prevention shifts the food risk focus to vulnerability. Trends Food Sci. Technol. 62:215–20
    [Google Scholar]
  77. SSAFE 2022. Food fraud vulnerability assessment tool https://www.ssafe-food.org/tools/food-fraud-vulnerability-assessment-tool
  78. Théolier J, Barrere V, Charlebois S, Godefroy SB. 2021. Risk analysis approach applied to consumers’ behaviour toward fraud in food products. Trends Food Sci. Technol. 107:480–90
    [Google Scholar]
  79. USDA (US Dep. Agric.) 2018. Fraudulent organic certificates. Agric. Mark. Serv., US Dep. Agric. Washington, DC: https://www.ams.usda.gov/services/enforcement/organic/fraudulent-certificates
  80. USP (US Pharmacop. Conv.) 2016. New USP food fraud database helps industry and regulators mitigate risk of food adulteration Press Rel., US Pharmacop. Conv. Rockville, MD: https://www.usp.org/news/new-usp-food-fraud-database-helps-industry-and-regulators-mitigate-risk-food-adulteration
  81. van Ruth SM, de Pagter-de Witte L. 2020. Integrity of organic foods and their suppliers: fraud vulnerability across chains. Foods 9:2188
    [Google Scholar]
  82. van Ruth SM, Huisman W, Luning PA. 2017. Food fraud vulnerability and its key factors. Trends Food Sci. Technol. 67:70–75
    [Google Scholar]
  83. Wallace LJ, Boilard SMAL, Eagle SHC, Spall JL, Shokralla S, Hajibabaei M. 2012. DNA barcodes for everyday life: routine authentication of natural health products. Food Res. Int. 49:1446–52
    [Google Scholar]
  84. Warner K, Timme B, Lowell B, Hirshfield M. 2013. Oceana study reveals seafood fraud nationwide Rep. OCEANA Washington, DC:
  85. Whoriskey P. 2017a. USDA closes investigation into a massive organic farm—but what did it check?. Washington Post Sept. 28. https://www.washingtonpost.com/news/wonk/wp/2017/09/28/usda-closes-investigation-into-a-massive-organic-farm-but-what-did-it-check/
    [Google Scholar]
  86. [Google Scholar]
  87. Xiong X, Guardone L, Cornax MJ, Tinacci L, Guidi A et al. 2016. DNA barcoding reveals substitution of Sablefish (Anoplopoma fimbria) with Patagonian and Antarctic Toothfish (Dissostichus eleginoides and Dissostichus mawsoni) in online market in China: how mislabeling opens door to IUU fishing. Food Control 70:380–91
    [Google Scholar]
  88. Xiu C, Klein KK. 2010. Melamine in milk products in China: examining the factors that led to deliberate use of the contaminant. Food Policy 35:5463–70
    [Google Scholar]
  89. Yan J, Erasmus SW, Aguilera Toro M, Huang H, van Ruth SM 2020. Food fraud: assessing fraud vulnerability in the extra virgin olive oil supply chain. Food Control 111:107081
    [Google Scholar]
  90. Zakharov S, Pelclova D, Urban P, Navratil T, Diblik P et al. 2014. Czech mass methanol outbreak 2012: epidemiology, challenges and clinical features. Clin. Toxicol. 52:101013–24
    [Google Scholar]
  91. Zezza A, Demaria F, Laureti T, Secondi L. 2020. Supervising third-party control bodies for certification: the case of organic farming in Italy. Agric. Food Econ. 8:126
    [Google Scholar]
  92. Zhang W, Xue J. 2016. Economically motivated food fraud and adulteration in China: an analysis based on 1553 media reports. Food Control 67:192–98
    [Google Scholar]
  93. Zhou X, Taylor MP, Salouros H, Prasad S. 2018. Authenticity and geographic origin of global honeys determined using carbon isotope ratios and trace elements. Sci. Rep. 8:114639
    [Google Scholar]
/content/journals/10.1146/annurev-resource-101422-013027
Loading
  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error