NFU Mutual’s Food Fraud Report 2017, published today (7th September), reveals that takeaways are the least trusted type of food outlet (42%) followed by online (21%) and convenience stores (16%).
As Britain prepares to leave the European Union, the new research by the hospitality business insurer reveals that only 12% of people have confidence in the European food chain and just 7% in the global chain, fewer than one in every ten people.
Almost three quarters (72%) believe there to be an issue with food fraud in the UK, with over a quarter also believing that they have personally experienced it (27%).
Hearing about high profile cases of fraudulent food in the media, such as the horse meat scandal in 2013, is the most common cause of reduced confidence in nearly half of consumers (46%).
Commenting on the report, Darren Seward, Hospitality Sector Specialist at NFU Mutual, said: “Therehas never been a more important time for tackling food fraud and getting regulation right as we plan to leave the European Union, but Government proposals for where we will get our food from are already under tough scrutiny from industry and consumers alike with concerns over skilled workers and quality.
“Margins made by hospitality and catering businesses are being impacted as producers are put under pressure to offset price rises caused by the weakened value of sterling and higher import charges. The squeezing of already tight budgets and resources may potentially corner producers and hospitality businesses into using cheaper global suppliers that may be more vulnerable to fraud.”
The UK food and drink industry could be losing up to £12bn annually to fraud, entering the food chain through means including falsified or inaccurate documentation, and redirection of waste products back into the supply chain or re-dating of stock2.
Darren continued: “Our research exposes the damaging effect that various influencers have had on consumer confidence over time, and shows takeaways seem to have the most work to do to improve that trust. Improving communication may be the answer as customers are increasingly demanding transparency and accessibility to food ingredients, nutritional and provenance information to inform their purchase decisions, and hospitality businesses should focus on delivering this information to stay current and catch up with retailers and producers. Much of the food industry is addressing any damage to confidence by changing supply strategies and supporting British producers – popular with consumers who want to support local businesses on home soil.
“Our Food Fraud Report provides businesses with the research findings alongside advice from NFU Mutual experts and partners to help them combat fraud and appeal to customers through transparency and trust.”
The NFU Mutual Food Fraud report, which is designed to understand challenges facing businesses working across the ‘field to fork’ supply chain, explores attitudes and influencers of trust, perceived blame, impact upon behaviour and awareness of food crime. The report includes viewpoints and advice from major industry bodies including the British Hospitality Association, British Retail Consortium, Food and Drink Federation, and National Farmers Retail & Markets Association.
One third of consumers (33%) are less trusting of products and retailers than they were five years ago, compared with only 9% whose trust has increased. A further 33% believe that food crime is likely to increase in the future.