Inside the secret world of global food spies

Some big food firms are backing tech that grew out of anarchic world of crypto-currencies

A bowl of ice cream on a hot day in Shanghai gave American Mitchell Weinberg the worst bout of food poisoning he can recall. It also inspired the then-trade consultant to set up Inscatech — a global network of food spies.

In demand by multinational retailers and food producers, Inscatech and its agents scour supply chains around the world hunting for evidence of food industry fraud and malpractice. In the eight years since he founded the New York-based firm, Weinberg, 52, says China continues to be a key growth area for fraudsters as well as those developing technologies trying to counter them. “Statistically we’re uncovering fraud about 70 per cent of the time, but in China it’s 100 per cent,” he said. 

While adulteration has been a bugbear of consumers since prehistoric wine was first diluted with saltwater, scandals in China over the past decade — from melamine-laced baby formula, to rat-meat dressed as lamb — have seen the planet’s largest food-producing and consuming nation become a hotbed of corrupted, counterfeit, and contaminated food.

Weinberg’s company is developing molecular markers and genetic fingerprints to help authenticate natural products and sort genuine foodstuffs from the fakes. Another approach companies are pursuing uses digital technology to track and record the provenance of food from farm to plate.Services that help companies mitigate the reputational risk that food-fraud poses is a “big growth area,” according to Rein. “It’s a great business opportunity,” he said. “It’s going to be important not just as a China play, but as a global play, because Chinese food companies are becoming part of the whole global supply chain.”

Some of the biggest food companies are backing technology that grew out of the anarchic world of crypto-currencies. It’s called blockchain, essentially a shared, cryptographically secure ledger of transactions. Wal-Mart Stores, the world’s largest retailer, was one of the first to get on board, just completing a trial using blockchain to track pork in China, where it has more than 400 stores. 

Shanghai-based Zhong An Information and Technology Services   said in June it will use the technology to track chickens from the coop to the processing facility and on to the market or store.