Kiwis, dairy and alcohol top list of fakes, says OECD

By Ahmed ElAmin

- Last updated on GMT

Kiwis, conserved vegetables, milk powder, butter, ghee, baby food,
instant coffee, alcohol, drinks, confectionery, and hi-breed corn
seeds are among the most counterfeited articles in the world
according to a new report.

The details are contained in a report on counterfeiting and piracy of all products by the Organisation for Economic Co-Operation and Development (OECD). The report, an assessment of the problem, highlights an issue that developed economies are keen to stop. While food and beverage counterfeits form a small part of the trade, such products along with fake drugs, can cause health problems or even lead to death for unsuspecting consumers. Counterfeiting and tampering can undermine consumer trust in the quality and safety of a branded food product, leading to a loss in market share. Processors can also be fooled into buying fake ingredients for their products, further endangering the quality of their brand. In response, some companies have turned to new forms of packaging and intelligent labelling to ensure that consumers and customs can check for authenticity. In a preview of the report the OECD estimates that trade in counterfeit and pirated goods across national borders may have totalled around $200bn (€150bn) in 2005 in the OECD member countries. The total value of trade in counterfeit and pirated goods, including products made and sold inside the same country, may have been several hundred billion dollars higher, the report stated. Asia emerges as the largest source for counterfeit and pirated products, with China as the single largest source economy. Counterfeit food and beverages are appearing in Africa, Asia and Latin America, the report stated. "Trade in counterfeit goods is a big problem and getting bigger,"​ said John Dryden, a deputy director at the OECD. "It is pervasive, it involves some pretty unsavoury and ruthless characters, and it has serious implications for health, safety, living standards and jobs. It is also a major disincentive to invent and innovate."​ The OECD report makes a number of recommendations for ways to address these issues: The OECD has called for governments to increase their enforcement of existing laws. The organisation also called on governments to strengthen their co-operation with industry to make current policies more effective and help identify new strategies to fight counterfeiting. "One of the biggest challenges facing governments and business is getting reliable and up to date information on the extent of counterfeiting and piracy and the impact on economies,"​ the organisation said. "The OECD recommends governments and business invest more in collecting and analysing information, agree a common approach to collecting enforcement data and develop a framework to report the health and safety effects."​ In the EU the private sector, through organisations such as Confederation of the Food and Drink Industries of the European Union (CIAA), has consistently advocated improved intellectual property protection as the key to EU competitiveness. There are some signs that the problem is diminishing in Europe. In 2006, the amount of counterfeit food and drink products seized at the EU's borders decreased by 77 per cent, according to European Commission figures. The lower figures for food and computer equipment were the only bright spots in the year, as the amount of overall seizures increased by 330 per cent to 250 million counterfeit and pirated articles. A total of 1,177,785 fake food and beverage products were seized by member states customs officials in 2006, a drop of 77 per cent, according to the EU's annual report on the issue. Turkey remains the main source of fake food and beverages, accounting for 18 per cent of the total. It is followed followed by China (16 per cent), Singapore (12 per cent), Hungary (seven per cent), and Tunisia (six per cent). Other countries accounted for 41 per cent. In terms of overall quantities of all food and non-food items seized, China accounts for 80 per cent of all articles seized at the EU's borders. EU legislation, which came into effect on 1 January 2007, requires all of the bloc's importers and exporters to have a special security certificate for easier access across borders. The new procedure is aimed at reducing terrorism, fraud and counterfeit products. The EU Customs Security scheme allows those qualifying for the special security certificate to move their goods quickly to and from the EU. Companies that fail to comply with the new rule could face crippling delays to their exports and imports, burdening them with extra costs, according to analysis by Ernst & Young. The full report is due to be released at the end of this month.

Related topics Markets

Related news