The estimated cost of food fraud to the global food industry is estimated to be between $10-40 Billion per year.
Food prices have been rising fast recently due to a diverse set of events including the war in Ukraine, disruptions in the global food supply chain, and impacts of climate change on extreme weather events. High prices and volatility in commodities markets are making it more attractive for criminals to pass off cheap, noncompliant or adulterated / counterfeit products as high quality and more costly produce.
Price volatility in the food and drink sector is likely to continue as climate change impacts agricultural output and supply chain disruptions affect availability of core ingredients. The increasing fraud risk requires a review of the processes in place to mitigate the risk to consumers, protect the brand’s reputation and avoid any impact on the financial performance of the business.
Produced by Lockton with contributions from specialist partners, including Campden BRI (opens a new window), the trusted, premier, independent technical partner of choice for the food and drink industry, our latest whitepaper report offers guidance to businesses on:
Navigating challenging markets
Mitigating the risk of food fraud in supply chains
Transferring residual risk to the insurance market
