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American Focus > Blog > World News > How Organised Crime Is Exploiting Dairy Industry
World News

How Organised Crime Is Exploiting Dairy Industry

Last updated: November 11, 2024 1:36 am
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How Organised Crime Is Exploiting Dairy Industry
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In a daring heist in the UK in October, the world of luxury cheese was thrown into the spotlight. The incident, known as “the grate cheese robbery,” involved the disappearance of 22 tonnes of premium British cheese after a fraudulent order was placed under the guise of a French supermarket chain. The stolen consignment, valued at over £300,000 (around Rs 3.26 crore), included specialty cheese from farms in Somerset, such as Hafod, a rare cheddar aged for 18 months.

Patrick Holden, the dairy farmer behind Hafod, initially thought it was the largest order his farm had ever received. “It was the biggest order for our cheese we’ve ever received,” Holden told BBC. He added, “And, because it was from France, I thought, ‘finally, people on the continent are appreciating what we do’.”

However, his excitement turned to disappointment when the order turned out to be a scam, and the cheese vanished after being collected by a courier. In late October, a 63-year-old man was arrested in London in connection to the theft but was later released on bail. Despite efforts, the 950 truckles of cheese – weighing as much as four full-size elephants – disappeared without a trace.

The stolen cheese, which included £35,000 (around Rs 38.13 lakh) worth of Hafod, was processed through Neal’s Yard Dairy, a high-end London wholesaler. The heist sent shockwaves through the cheese industry, as criminals target the rising value of luxury dairy products.

While the scale of the cheese theft was extraordinary, it reflects a broader trend of food-related crimes that cost the global food industry billions each year. Cheese, particularly premium varieties, has become an attractive commodity for organised crime. Smuggling, counterfeiting, and theft of high-value products like Parmigiano Reggiano and cheddar have become common.

See also  Arla and DMK unlikely to be last big deal in Europe’s stagnant dairy market

“Cheesemaking is an energy-intensive business,” noted dairy sector specialist Patrick McGuigan. “There was a significant price increase following the disruption caused by Russia’s invasion of Ukraine,” he added. Economic factors like the war and inflation have driven up cheese prices, making them lucrative targets for criminals.

Notably, cheese prices in the UK have risen recently, with some varieties experiencing hikes of up to 6.5% in 2024 alone. “Based on price alone, cheese is one of the most desirable foods for criminals to steal,” McGuigan emphasized.

The allure of luxury cheese theft goes beyond high prices. Food appeals to criminal networks for various reasons. Andy Quinn of the National Food Crime Unit (NFCU) explained, “Crimes involving food lead to less severe convictions than drug imports, but they can still yield similar profits,” especially with premium cheese.

The illicit market for stolen cheese is not limited to the UK. In Italy, £80,000 worth of Parmigiano Reggiano was stolen in 2016. Professor Chris Elliott, founder of the Global Institute for Food Security, highlighted the prevalence of illegal transportation of cheese and wine into Russia.

To combat black market theft, the Parmigiano Reggiano Consortium has embedded tiny tracking chips in the cheese rind. These chips, with unique digital IDs, help verify authenticity and identify stolen cheese. Buyers can scan the cheese to confirm its legitimacy, though the impact of this technology on fraud is yet to be fully assessed.

TAGGED:CrimedairyExploitingIndustryOrganised
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