Fake food scams linked to illness and death and costing Britain up to £2billion a year

Doner kebabs, olive oil and counterfeit vodka among the products hit by a wave of organised food crime, new research shows

Food fraud has been linked to illness and deaths and could be costing Britain up to £2 billion a year, according to a major new study.

The first research of its kind reveals that criminals selling cheap food as premium products, falsely labelling meat and other foods, and secretly substituting ingredients while charging full price could be costing Britain almost £2billion a year.

Researchers conclude food fraud is causing economic harm, illness and, in the most serious cases, death.

The research from the University of Portsmouth, published in the Journal of Economic Criminology, estimates the annual economic cost of food fraud in the UK is between £410million and £1.96billion, with businesses, consumers and taxpayers all footing the bill.

To produce the estimates, researchers analysed 221 UK food fraud cases reported in the media and interviewed regulators, manufacturers, retailers, insurers and compliance firms.

They concluded that official figures are likely to underestimate the true scale of offending because many incidents are never detected or reported.

The Food Standards Agency recorded 610 food fraud incidents in 2021. However, using survey data on reporting rates, the researchers estimate the true number of offences could be up to 3,050 a year.

Among the 221 cases analysed, 10 involved illness and three involved deaths. Victims can suffer lost earnings, medical costs, pain and suffering, while businesses and public services also bear the financial consequences, the study states.

The research follows a string of high-profile food fraud scandals highlighting growing concerns about organised criminality in Britain's food supply chain.

Examples include falsely labelling food, substituting expensive ingredients with cheaper alternatives, misrepresenting food, adulterating products, forging documents, unlawful processing and diverting waste back into the food chain.

The most notorious was the 2013 horsemeat scandal, in which DNA tests revealed products sold as beef contained horsemeat.

In another case last year, one of the UK's biggest doner kebab manufacturers admitted a long-running fraud after DNA tests found products sold as containing 70 per cent lamb actually contained less than 10 per cent sheep. Investigators found goat meat, skin, fat and other cheaper ingredients were being used instead.

The researchers also identified cases involving meat falsely labelled as "lean" and a pub advertising its steak as Aberdeen Angus when it was not.

And recently, the Food Standards Agency launched a criminal investigation into allegations that an unnamed meat processor passed off large quantities of imported pork as British.

Former employees also alleged rotting meat was mixed with fresh products before processing. The allegations remain under investigation and the Food Standards Agency has said there is no evidence the food posed a safety risk.

Separate food fraud investigations have also uncovered cases in which olive oil was diluted with cheap vegetable oils, honey mixed with cheap sugar syrups, herbs and spices bulked out with inexpensive plant material such as millet or even twigs, and fish sold under the wrong species name to command higher prices.

Investigations have also uncovered cases in which prawns are injected with non-edible gels to make them heavier and look more appealing. Investigators have also found toxic pesticides have been poured into the sea to catch fish, and formaldehyde has been used to preserve seafood.

Separate investigations have also raised concerns that tomato purée marketed as Italian appeared likely to contain tomatoes grown and picked in China using forced labour.

Elsewhere, food standards officers have uncovered counterfeit vodka containing the harmful and potentially deadly chemical isopropyl alcohol, which can cause vomiting, stomach pain, dizziness, headaches and slowed breathing.

The research shows businesses lose between £268million and £1.34billion every year, accounting for around 68 per cent of the total cost. Individual consumers lose between £58million and £291million, while government agencies face costs of between £83million and £325million through investigations, prosecutions and enforcement.

Researchers estimate the average organised food fraud scheme causes more than £634,000 in economic damage.

Around 84 per cent of that reflects the wider social harm caused by the fraud, while around 16 per cent relates to the costs of investigation, prosecution and imprisonment.

The authors argue there is a strong economic case for targeting organised food fraud because the financial harm prevented by dismantling a criminal operation is far greater than the cost of bringing offenders to justice.

They estimate tackling this type of fraud could pay for itself, with an estimated return on investment of 440 per cent.

Dr David Shepherd, from the School of Criminology and Criminal Justice at the University of Portsmouth, said: "Food fraud is often perceived as a niche issue, but our findings show it has a substantial economic impact on the UK.

"It is not just about consumers paying for something that is not what it claims to be. It undermines honest businesses, distorts markets and, in the most serious cases, puts people's health at risk."

Despite the scale of the losses, the researchers conclude the UK food industry is relatively resilient to food fraud.

They say large supermarkets and major food manufacturers have developed quality assurance systems, supplier audits and testing programmes that create barriers for rogue traders trying to enter mainstream supply chains.

However, smaller retailers, independent shops, restaurants and takeaways are more vulnerable because they often lack the same level of quality control and purchasing power.

Andrew Quinn, Head of the National Food Crime Unit, said: "Food fraud is not a victimless crime.

"It undermines honest businesses and erodes people's trust, and even small levels are unacceptable. We're confident that most food in the UK is what it says it is, but this research is a welcome reminder that the risks are real and constantly evolving.

"Food businesses are the first line of defence, and we encourage them to know their supply chain and take up the free support we offer. The more we understand about food crime, the better we can tackle it together with industry and local authority partners to protect legitimate businesses and give people confidence that food is safe and what it says it is."