Busted: Multi-Million-Euro Adulterated Saffron Scheme

The world’s most expensive spice recently made headlines again: a crime network was caught red-handed trafficking fake saffron in Spain, generating millions in profits. This news demonstrates once more the dire need for the food industry to address their vulnerabilities, in order to prevent the occurrence of similar fraudulent incidents.

Saffron is a spice derived from the flowers of Crocus sativus, and is mainly used as a seasoning and colouring agent in food. The vivid crimson saffron ‘threads’ are the stigmas of the saffron crocus flower. Saffron’s high price is due to the intensive labour required to produce this crop: it is cultivated and harvested largely by hand, and it takes between 80 000 and 150 000 flowers to make one kilogram of this elite spice. The price of saffron is further determined by its quality, which is influenced by colour, age, pliability and the amount of non-stigma content.

Support from the European Union’s law enforcement agency, Europol, helped the Spanish authorities in their fight against an organised crime group who laundered millions of euros through the trafficking of adulterated saffron. Around 500 shipments of adulterated saffron have been identified, worth €10 million (almost R168 million).

Before exporting it, the fraudsters mixed the pure saffron with chemicals (including non-permitted dyes) and herbs, to improve the perceived quality and increase product volumes. The criminals laundered their illegal proceeds through a complex trade-based scheme involving multiple bank transfers across the EU. The transactions along the supply chain helped create the illusion that the saffron was authentic, and deceived companies into paying premium prices for the fraudulent spice.

Food fraud is a major issue in the spices and herbs sector. The complexity of the supply chain, together with increasing market demand, contributes greatly to food fraud opportunity in the supply network. Saffron is no stranger to food fraud, and is a repeat victim of adulteration. The high cost of this premium spice makes it a prime target for fraudsters.

FACTS understands the importance of addressing supply chain vulnerabilities through a robust VACCP plan. FACTS offers a variety of food fraud prevention and detection services, including microscopic analysis to determine the authenticity of a spice or herb. Contact us today to find out how we can assist your company in combating food fraud. For more information contact us today.