Dealing Under the Dinner Table: Fraud in Canada’s Food Supply
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Thedecentralization of agriculturehas separated most of us Canadians from primary food production. Normally, this is fine. Farmers care about their farms and product quality, Health Canada and the Canadian Food Inspection Agency (CFIA) havewell-established safety regulations, and law enforcement bureausactively monitor food systems for violations. Now, combine that team with the responsible labelling, consumer information, and product representationthat should already be occurringif the manufacturer is credible, and Canada’s food supply is safe. Unfortunately, Canada’simport relianceand global supply chain uncertaintiesaccentuated by the COVID-19pandemic have revealed cracks in our food supply chain, leaving far too much room for malicious intervention.
Food fraud describes thedeliberate misrepresentationof a food product, such that the contents do not match the label. Fraud can come in many forms depending on the product (from diluting the product toadding ingredientsto putting a completely different item on the shelf in the same packaging) and may havenegative health and safety implicationsthat are done foreconomic gain. This can be easily confused withfood threats, which are also deliberate misrepresentations of foods but are done to strike consumer fear, harm, and supply chain disruption. Very simple examples of fraud would be sellingwater buffalo as bison meat, preying on consumers’ ignorance of the cost and quality difference, or as seen in theUnited Kingdom in 2013, when up to a third of Tesco frozen beef products were contaminated with horse meat.
The aquaculture industry is a particularly weak point of food safety. An investigation of high-risk Canadian seafood species available at market found that, in the three years of sampling,47% of products were mislabelledand, of those mislabelled samples, nearly three-quarters were beingsold as a more expensive product. I’vewritten in the pastabout how this continued problem is a byproduct of abandoning the 2019 boat-to-plate traceability proposal, as it is much easier to contaminate the food supply chain (or unknowingly distribute contaminated product) when participants are only askedfrom whom they received the product and where it will be moved next.The traceability requirement expands to all food sectors, asmost food players (80%) have an inadequate understandingof available and applicable preventative food risk practices.
Policy-Trust Dynamics
Improving food safetypolicy requires consumer trustto effectively work, which can be challenging to find consensus when values and personal responsibility differ across individuals and market participants. Take Figure 2, which lists the order of consumer trust of entities participating in the food supply chain.
Figure 2 Hierarchy of consumer food safety trust
Public health institutions who performrisk assessments, identifying the likelihood and severity of safety concerns if notproperly mitigated, are understandably very credible voices. Similar sentiments are made about farmers in charge of food production, who consumers believe are unlikely to engage in operations that put public health/safety at risk. In line with the figure, it isrecommended that consumers purchase frombig-name grocery stores or from-source products, as branded stores likely have a better understanding of their supply chain and there are fewer stops from farm to household with from-source.
Unfortunately, perceived trust does not reduce the risk of fraud, and food definitions within regulations are typically deemed“too generic” and therefore easy targets for fraudsters. Restaurants, for example, have a muchhigher rate of food fraud(mislabelled food) than other sources because they have limited control over where and how their delivered ingredients are sourced. As well, distributors, the step in the supply chain before restaurants and grocery stores,believe they have less responsibilityin ensuring product quality than farmers and manufacturers. When actors feel as though the problem is separate from their business and lack of mitigative action, itprevents adequate and increasedsurveillance, testing, andblockchain traceabilitythat is required for improved food credibility.
The Cost of Doing the Right Thing
A few of the primary reasons fornot employing preventative measuresare (in no order) lack of knowledge, inability to see how their business can improve, time required, and the cost of implementation. Unfortunately, all of these are required, and it will become increasingly costlier to comply with appropriate legislation. InMarch 2023, the CFIA increasedits food safety inspection fees by nearly three and a half percent and, again,nearly doubled that ratein March 2024. The philosophy behind inspection fee increases is that it disincentivizes food fraud by increasing individual investment in accuracy; it costs more to certify the product, so there should be a higher probability of authenticity since there is more to lose if they fail inspection.
Costs will rise further if and when government bodies recognise thesuggestions made by the industrylike more thorough supplier details in import documents, stronger consequences for fraudsters, and improving standards for what can and should be on a food label. Compliance is a separate problem, especially sincelarge companies moving large quantitiesof products – those that are likely more financially capable of adopting fraud prevention – are better able to conceal quality changes. This is not to imply that enterprises are, indeed, misleading their patrons, rather more effort is required for sufficient monitoring, and it is easy for malformations to be missed.
Canada’s food supply is safe but there is room for improvement. It isnot just a supplier problemas much as it may feel that way; we, as consumers, also have a duty to consume responsibly. Made-in-Canada products are generally a good way in which the risk of inauthentic food can be reduced, however, it completely depends on the product, available substitutes, and associated businesses. Although food fraud may not be an everyday occurrence, it is important to understand how our public health authorities protect Canada’s food supply and how the response to the issue is evolving.
Claire Williams
Claire is a research assistant at the University of Saskatchewan. In 2019, she completed her degree in animal science and her degree in agricultural and resource economics in 2020 from the U of S. She subsequently completed her Master's in Agriculture Economics under the supervision of Dr. Tristan Skolrud in 2023. As of the summer of 2022, Claire has joined Dr. Smyth's research team and is collaborating on SAIFood posts.