Seafood Companies Fight Fraud With Traceability

Seafood fraud has existed probably as long as men have pulled fish from the sea.

In the global seafood supply chain, fish caught or farmed in Chile or Thailand can be on the plate of a New York restaurant in a day or two. With thousands of miles from pole to plate, it’s tempting, and profitable, to engage in shenanigans such as species substitution that can boost profits for those willing to risk their reputations.

The experience of the industry in dealing with this problem might prove instructive for other industries where supply chains have become a source of compliance and reputational risk. As a result of a rule in the 2010 Dodd-Frank law, many companies must now scrutinize their supply chains for minerals that originated in conflict regions of Africa, while the risk to a company’s reputation is illustrated by recent news that Burger King BKW -0.22% dropped a supplier after its meat supplies were found to contain traces of horsemeat.

With a 2010 report from the Grocery Manufacturer’s Association putting the cost of food fraud in the U.S. at $10 billion a year, the seafood industry has turned to technology, adopting tools that can track a fish from a specific boat or farm all the way to its final destination on a plate or seafood display case.

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