AUSTRALIA is grappling with a burgeoning crisis in its food industry as food fraud takes a devastating toll on both the economy and consumer trust, experts say.
Recent reports indicate the illicit industry is now siphoning a staggering $3 billion annually from the nation’s coffers, while deceptive food products flood the market, posing significant risks to public health and safety.
Food fraud encompasses a wide range of deceptive practices, from mislabelling and adulteration to counterfeiting and substitution.
It affects various categories, including veal, wine, fish, and molluscs, which alone account for economic losses estimated between $700 million and $1.3 billion each year.
AgriFutures Australia said that the globalised food supply chain and mounting geopolitical and environmental pressures are providing fertile ground for fraudsters.
These criminals often exploit unsuspecting consumers, charging premium prices for substandard or fake products.
UNSW Associate Professor, Julian Cox, warns that food fraud goes beyond financial losses; it jeopardises consumer health and safety. Instances where harmful chemicals were found in baby formula serve as stark reminders of the dire consequences.
Food fraud’s impact reverberated globally, damaging industries and triggering trade bans, as exemplified by the 2013 European meat contamination scandal, which revealed the presence of horse and pig DNA in beef products, Prof Cox said.