Blockchain can help reduce food fraud across industries

Food fraud remains a significant issue globally, particularly in the honey market, where counterfeit products are widespread.

Recent reports show that a large percentage of honey imports in the UK are fraudulent, with 96% of imported jars failing to meet regulatory standards.

This issue is part of a broader trend, as counterfeit honey in the EU was valued at $3.65 million in 2023.

Current efforts to track the authenticity of products, such as the EU’s Digital Product Passport, have been criticised for not being effective enough to combat fraud.

“Data, however, is not the problem. The issue is people tampering with it,” highlights Fraser Edwards, CEO of Cheqd, emphasising the main challenge.

Fraudsters often use additives like high fructose corn syrup to dilute honey, making it difficult to detect with standard tests.

The fragmented nature of global supply chains further complicates efforts to verify the origin of products, as they pass through multiple stages and countries.

While the EU’s Digital Product Passport aims to improve traceability, experts argue that it remains vulnerable to manipulation, especially when products pass through intermediary countries.

Edwards suggests that self-sovereign identity (SSI) could be a more reliable solution.

SSI uses cryptographic, verifiable credentials to track a product’s authenticity throughout the supply chain, making it more difficult for fraudsters to alter information.

“SSI provides the underlying infrastructure necessary to reliably track the identity of products across multiple bodies, standards, and regions,” Edwards explains.

SSI would empower consumers and officials to verify the authenticity of products independently, reducing the chances of fraud reaching the market.

While the EU’s Digital Product Passport offers a step forward, SSI is seen as a more robust, tamper-proof approach to addressing food fraud.