Food Fraud Prevention
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1 Food Fraud Prevention 24 th Australian HACCP Conference Sydney, Australia / Hosted by SAI Global August 30, 2017 / 9:20 to 10:15 AM John Spink, PhD Director & Assistant Professor, Food Fraud Initiative College of Veterinary Medicine/ Food Safety and #FoodFraud *
2 WARNING: Counterfeiters Attend Anti-Counterfeit Conferences Michigan State University 2
3 Global Trends CRIMINAL LIABILTY FOR CORPORATE LEADERS Health Hazards Financial Reporting 2017 John Spink 3
4 Massive Open Online Course (MOOC free, open, online) Free, open, online, open to everyone, includes a certificate of completion Food Fraud Overview MOOC -- May & November Food Fraud Audit Guide MOOC -- April, July, November Executive Education (Short-Course) Food Fraud Strategy, Quantifying Food Risk with Vulnerably Assessments Graduate Courses (Online, Three Credits) Anti-Counterfeit & Product Protection (Food Fraud) Quantifying Food Risk (including Food Fraud) Global Food Safety (including Food Fraud) Food Protection and Defense (Packaging Module) Packaging for Food Safety Graduate Certificate (Online, Four Courses Each) Certificate in Food Fraud Prevention (Food Safety) Master of Science in Food Safety (Online) Food Fraud Curriculum Outreach Research Education 2017 Michigan State University 4
5 Defining Food Fraud Action: Deception Using Food for Economic Gain Including the FDA defined sub-category of Economically Motivated Adulteration (EMA) Consistent with GFSI, EC/EU, UK, ISO, and others Motivation: Economic Gain Food Defense motivation is traditionally harm or terror Intentional Adulteration (general) is any substance purposely added for any reason Intentional Adulteration (FSMA-IA) is terrorist or large scale attack for health harm Effect: Economic Threat Public Health Vulnerability or Threat Examples Horsemeat in ground beef Peanut Corporation selling known contaminated product Diluted or extra virgin olive oil Melamine in pet food and infant formula Over-icing with unsanitary water Unauthorized unsanitary repackaging (up-labeling or origin-laundering) Cargo Theft reintroduced into commerce/ Stolen products Expired product date code tampering or refreshing Reference: Spink & Moyer (2011). Defining the Public Health Threat of Food Fraud, Journal of Food Science 2017 Michigan State University 5
6 The Food Risk Matrix Prevent by Understanding the Motivation Food Food Quality Fraud Food Safety Food Defense Terrorism Unintentional Intentional Action Motivation Gain: Economic Harm: Public Health, Economic, or Terror Source: Adapted from: Spink (2006), The Counterfeit Food and Beverage Threat, Association of Food and Drug Officials (AFDO), Annual Meeting 2006; Spink, J. & Moyer, DC (2011) Defining the Public Health Threat of Food Fraud, Journal of Food Science, November Michigan State University 6
7 GFSI v7 Definitions Food Safety A concept that food will not cause harm to the consumer when it is prepared and / or eaten according to its intended use. Food fraud A collective term encompassing the deliberate and intentional substitution, addition, tampering or misrepresentation of food, food ingredients or food packaging, labelling, product information or false or misleading statements made about a product for economic gain that could impact consumer health. Food defence The process to ensure the security of food and drink from all forms of intentional malicious attack including ideologically motivated attack leading to contamination. Food Security (WHO, Global definition): safe, nutritious, continuous supply of food (not protecting food from attack) 2017 Michigan State University 7
8 GFSI Conference 3/ Michigan State University 8 FoodFraud.ms u.edu
9 All Fraud UK, EU, GFSI, China, ISO FDCA & FSMA-PC Dilution What is Food Fraud? Substitution FDA/FR* Economically Motivated Adulteration Contaminant Counterfeiting Food Fraud Grey Market/ Theft/ Diversion Over-Runs Unapproved Enhancements Mislabeling Tampering 2017 Michigan State University Source: Food Fraud Think Tank Presentation, GFSI, 2012, 2013, FoodFraud.ms u.edu
10 GFSI Issue 7 Published Food Fraud Terms FSM AI 21 Food fraud vulnerability assessment The standard shall require that the organisation has a documented food fraud vulnerability assessment procedure in place to identify potential vulnerability and prioritise food fraud mitigation measures. FSM AI 22.1 Food fraud mitigation plan The standard shall require that the organisation has a documented plan in place that specifies the measures the organisation has implemented to mitigate the public health risks from the identified food fraud vulnerabilities. Every vulnerability does NOT need a control plan. FSM AI 22.2 Food fraud mitigation plan The standard shall require that the organization's Food fraud mitigation plan shall cover the relevant GFSI scope and shall be supported by the organisation s Food Safety Management System Michigan State University FoodFraud.msu.edu 10
11 Inspection or Investigation Inspection (Compliance): No active incident Function: regulatory compliance, audit inspection Convince an auditor or inspector that you meet the requirements Q: Explain the process is in compliance Investigation (Prosecution): Active incident: e.g. a baby just died Function: Legal liability, criminal investigation Present evidence to an investigator or prosecutor to prove no willful blindness or neglect Q: Explain why this incident was NOT a hazard that required a preventive control 2017 Michigan State University 11 FoodFraud.ms u.edu
12 Criminology: The Chemistry of the Crime Business Decision: Enterprise Risk Management Review Incidents Enterprise-Wide Risk Assessment Detect Deter Prevent Initial Vulnerability Screening Assessment (FFIS) (FFVA) Countermeasures Adulterants Tampering Theft Over-runs Diversion Counterfeits Rank 2017 Michigan State University 12
13 I. Implementation Steps for Government Agency or Industry Concept One: Formally, and specifically, mention food fraud as a food issue and This statement confirms that AGENCY expects the food industry to conduct risk or vulnerability assessments, including mitigation or prevention plans where warranted, on all incidents that could lead to a health hazard or the violation of a food law such as the FSMA or the FD&C. This includes all Food Fraud such as adulterantsubstances, tampering, theft, illegal diversion or gray markets, illegal mislabeling, and intellectual property rights or product counterfeiting, and others. Consistent with existing Federal and State laws and regulations, third-party certifications play an important role in supporting this type of food supply chain protection. Concept Two: Create an enterprise-wide Food Fraud prevention plan Source: Spink, J., Fortin, N. D., Moyer, D. C., Miao, H., & Wu, Y. (2016). Food Fraud Prevention: Policy, Strategy, and Decision- Making Implementation Steps for a Government Agency or Industry. CHIMIA International Journal for Chemistry, 70(5), (ISI Impact Factor = 1.349; Scopus SJR = 0.55) (With translation to Mandarin/ Chinese)
14 II. Food Fraud Prevention Strategy Implementation Series of Activities 1. Convene a Food Fraud Task Force 2. Create an Enterprise-wide Food Fraud Policy/Mission Statement and begin drafting a Food Fraud Prevention Strategy/ Plan 3. Conduct the pre-filter Food Fraud Initial Screening (FFIS) 4. Review additional needs including additional information or a more detailed Food Fraud Vulnerability Assessment (FFVA) 5. Review specific Food Fraud vulnerabilities in an enterprise risk map (Enterprise Risk Management) 6. Consider countermeasures and control systems to address the 'very high' and 'high' vulnerabilities 7. Propose a Food Fraud Prevention Strategy including the calibration of the Food Fraud risks on the enterprise risk map
15 III. Ongoing Management 1. Implement Food Fraud Prevention Strategy A. Document and refine the process B. Utilize the Food Fraud Prevention Cycle A. Assign accountability and responsibility for key actions C. At least annual vulnerability assessments (actually set by your needs and emerging incidents) D. At least annual review of the best practices and overall system this is an emerging field Michigan State University 15
16 Food Fraud Compliance Requirements: Scope Food Fraud Compliance Requirements The general compliance requirements for Food Fraud prevention are: 1. Conduct a Food Fraud Vulnerability Assessment (Y/N) 2. Written (Y/N) 3. Implement a Food Fraud Prevention Strategy (Y/N) 4. Written (Y/N) 5. Minimally conduct an annual Food Fraud Incident Review (Y/N) 6. Note: Address all types of Food Fraud (Y/N) 7. Note: Address all products from both incoming goods (e.g., ingredients) and outgoing goods (e.g., finished goods) through to the consumer. (Y/N) Reference: Food Safety Magazine, Feb 2017, Food Fraud Vulnerability Assessment and Prefilter for FSMA, GFSI and SOX Requirements, New Food Magazine, Feb 2017: Food Fraud Prevention how to start and how much is enough?, Michigan State University 16 FoodFraud.ms u.edu
17 Takeaways: Focus on Preventing all Food Fraud not only adulterant-substances All compliance not just FSMA-PC, FSMA, FDCA, or Securities Laws Reducing recall potential do your job your CFO and Board of Directors care Reducing liability Corporate, legal, regulatory, and criminal for Executives, employees and YOU Michigan State University 17
18 Graduate Course Executive Education Multi- Client Studies MOOC MSU Engagement 2017 Outcome Benefit Commitment Share your knowledge and set direction of research Share your knowledge and set direction of research Research the why s of AC/D, understand underlying drivers Engage global network of Food Fraud thinkers.. Plus Graduate Certificate in Food Fraud Prevention Develop the internal talent to support initiatives in the AC space, meet other thought leaders ( invitation only sessions for brand owners) Uncovering the drivers may lead to new strategies to combat Counterfeiting Two, 2-hour on-line webinar format with assessment. Students earn an MSU credential. 14 Weeks, online, May to August, ~$ Days on-campus ($1950) Feb 7-9 (9-10 FFIS) July 18-20/20-21 (FFIS) Sept 26-28/28-29 (FFIS) Teleconference Meetings with option for on-campus e.g. Veterinary and Animal Product Fraud Overview: Nov 7&14 Audit Guide: July 6& 13 Oct 11& : Mar, July, Nov 2011 Michigan State Michigan State University University 18 Contact: John Spink, SpinkJ@Msu.edu
19 Acknowledgements MSU Veterinary Medicine: Dean Christopher Brown, Chair Dan Grooms, Chair Ray Geor, Dr. Wilson Rumbeiha, Cindy Wilson, Dean John Baker MSU Global: Associate Provost/ Executive Director Christine Geith, Jerry Rhead, Gwyn Shelle, Lauren Zavala, Associate Provost/ EVP Dr. Karen Klomparens, Rashad Muhammad Queens s University Belfast (UK): Professor & Director Christopher Elliott, Dr. Moira Dean, Dr. Michael Hollis MSU Online Master s of Science in Food Safety: Director Melinda Wilkins, Ex-Director Julie Funk, Kristi Denbrock, Heather Ricks, Peggy Trommater, Heidi Chen, Dr. Gary Ades, Chair Ray Goer MSU Food Science: Chair Fred Derksen, Les Bourquin, Bradley Marks, Felicia Wu, VP of Research Ian Gray, David Ortega, Gale Strasburg MSU Program in Public Health: Director Michael Rip and Douglas C Moyer MSU NFSTC: Dr. Scott Winterstein, Trent Wakenight,, Dr. Kevin Walker, Sandy Enness, Jen Sysak, Dr. Rick Foster, to name a few critical contributors and supporters. MSU Food Safety Policy Center: Dr. Ewen Todd MSU School of Packaging: Dr. Bruce Harte, Dr. Robb Clarke, Dr. Laura Bix, Dr. Paul Singh, Dr. Diana Twede, Dr. Gary Burgess, Dr. Harold Hughes, Dr. Mark Uebersax, Dennis Young, and Director Joseph Hotchkiss MSU Communication Arts/ Consumer Behavior: Dr. Maria Lapinski and Dr. Nora Rifon MSU Criminal Justice: Dr. Jeremy Wilson, Director Ed McGarrell, Dr. Justin Heinonen, Roy Fenoff, Zoltan Fejas, Barbara Sayre, and Sara Heeg MSU Supply Chain Management: Dr. Cheryl Speier, Dr. Ken Boyer, Dr. John MacDonald, Chair David Closs, Dr. Stan Griffis, Dr. Judy Whipple MSU College Social Science: Dean Marietta Baba and Assoc Dean Chris Maxwell MSU College of Law: Dr. Neil Fortin and Dr. Peter Yu MSU Libraries: Anita Ezzo, Nancy Lucas, Kara Gust MSU International Programs: Dr. Mary Anne Walker, Dr. John Whimms State of Michigan s Ag & Food Protection Strategy Steering Committee: Dr. John Tilden, Brad Deacon, Gerald Wojtala, Byron Beerbower The Citadel: Dr. Roy Fenoff 2017 Michigan State University 19
20 Discussion John Spink, PhD Twitter: Food Fraud and #FoodFraud Video on YouTube: Search Food Fraud and New Zealand << to be determined >> 2017 Michigan State University 20
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