The economics of a food fraud incident – Case studies and examples including Melamine in Wheat Gluten

Moyer, Douglas C.; DeVries, Jonathan W; Spink, John

doi:10.1016/j.foodcont.2016.07.015

Cited by 115 publications

(44 citation statements)

References 18 publications

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“…Accordingly, we estimate the impacts of fraudulent events on wine import demand in China and examine whether these impacts are specific to exporting countries. While there is an extensive literature on the Chinese wine market (Balestrini and Gamble ; Liu and Murphy ; Anderson and Wittwer ; Muhammad et al ; Anderson and Wittwer ), and the impacts of fraud on agricultural and food supply chains (Spink and Moyer ; Zhang and Xue ; Moyer et al ; Kendall et al ; van Ruth et al ), this study is the first to estimate the impacts of wine fraud on Chinese wine demand, with a particular focus on supplying countries. This is an important contribution given the surge of fraudulent activity in the Chinese wine market and the growing importance of China as a global wine importer.…”

Section: Introductionmentioning

confidence: 99%

In Vino ‘No’ Veritas: impacts of fraud on wine imports in China

Muhammad

Countryman

2019

Aus J Agri & Res Econ

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China is one of the largest wine importing countries in the world and is poised for continued import growth in the future. Increased wine purchases throughout China have given rise to persistent fraud where fake wines are packaged and sold with counterfeit contents and labels. For exporting countries like France, counterfeit wines displace market share, damage foreign brand reputation, and cause distrust in consumers who are aware of counterfeiting problems throughout the country. We examine the impact of fraudulent wine events (as measured by negative media reports) on Chinese wine demand differentiated by supplying country. We employ the Rotterdam demand system and a switching regression procedure to estimate import demand and compare results across different media variable specifications. Results consistently show that negative reports disproportionately affect French wine regardless of how the media variable is specified. This is not surprising because most fraudulent events involve French wine counterfeits.

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Section: Introductionmentioning

confidence: 99%

In Vino ‘No’ Veritas: impacts of fraud on wine imports in China

Muhammad

Countryman

2019

Aus J Agri & Res Econ

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“…Several databases exist that classify food fraud and adulteration types, including the USP Food Fraud Database, the Economically Motivated Adulteration (EMA) Incidents Database, and the European Union Rapid Alert System for Food and Feed (RASFF; Manning, ; Moyer et al., ; Zhang & Xue, ). This study utilized the EMA Incidents Database, which defines the following food fraud and adulteration types: intentional distribution of contaminated products, artificial enhancement, counterfeiting, substitution, mislabeling, dilution, transshipment/origin masking, and theft and resale.…”

Section: Methodsmentioning

confidence: 99%

“…According to Spink, Moyer, and Whelan (2016) and Moyer et al (2017), the best strategy to minimize food fraud and adulteration is to prevent and/or reduce the opportunity for fraud through the development of a strong control culture and risk management strategies.…”

Section: Food Fraud and Adulteration Preventionmentioning

confidence: 99%

“…Opportunities for food fraud and adulteration are great due to the large quantity of food produced, exported, and imported, and the high added value of specific products. Moyer, DeVries, and Spink () reported the economic gains and impact of food frauds based on case studies and examples. According to this study, there were diverse food fraud and adulteration opportunities, and these frauds are profitable crimes.…”

Section: Introductionmentioning

confidence: 99%

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Economically Motivated Food Fraud and Adulteration in Brazil: Incidents and Alternatives to Minimize Occurrence

Tibola

Silva

Dossa

et al. 2018

Journal of Food Science

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“…Generally, the fraud databases "do not provide an overall estimate… (and)… the variability in the methods used by individual industries or commissions in the elaboration of their data makes a meta-analysis complex or impossible" (Spink & Fejes, 2012: 250). As a result, most estimates reported in the literature on the economic impact of food fraud are limited in scope, being based on anecdotal evidence of single episodes and generally based on expert guesses (Moyer, DeVries, & Spink, 2017). Even when there is an attempt to get estimates based on harmonized data (e.g., OECD-EUIPO, 2016), the estimates usually refer only to the market value of seizures rather than assessing the impact of fraudulent activities on the relevant economies.…”

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confidence: 99%

Assessing the economy‐wide impact of food fraud: A SAM‐based counterfactual approach

et al. 2020

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This paper proposes a social accounting matrix (SAM)‐based, counterfactual approach to assess the economy‐wide impact of food fraud in a given country and applies it to the Italian economy. The empirical application uses primary data collected by the authority in charge of the monitoring and repression of fraud in food value chains between the years 2007 and 2015. This is a unique dataset to analyze the issue, although it includes only data on food fraud within the country. The results of the SAM simulations show that the share of economy directly and indirectly linked to the supply of irregular food products accounts for 0.5% of the total value of output and is able to activate up to 156 thousand labor units. The net impact of food fraud on output and employment in the whole economy is negative, with losses averaging up to 1.8 billion euros of output and of 20,000 jobs per year, with a relative impact significantly larger in agriculture than in the food industry. These figures reveal an intrinsic fragility of the agri‐food system, especially in those subsectors featuring relatively large price elasticities such as quality products (e.g., wine, olive oil, cheese). The overall conclusion is that food fraud is not only a source of unfair competition to regular production activities but also has an overall contractionary impact on the whole economy due to its directly unproductive rent‐seeking nature. [EconLit classifications: C67, L66, Q13].

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The economics of a food fraud incident – Case studies and examples including Melamine in Wheat Gluten

Cited by 115 publications

References 18 publications

In Vino ‘No’ Veritas: impacts of fraud on wine imports in China

In Vino ‘No’ Veritas: impacts of fraud on wine imports in China

Economically Motivated Food Fraud and Adulteration in Brazil: Incidents and Alternatives to Minimize Occurrence

Assessing the economy‐wide impact of food fraud: A SAM‐based counterfactual approach

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