In spite of increased oversight, such as the USDA’s Strengthening Organic Enforcement (SOE) rules implemented last year, occurrences of fraud in regards to organic sourcing remains a multibillion-dollar problem. The demand for organic food and beverage products continues to grow, driven by consumer preferences for health-conscious and environmentally friendly choices. However, as the organic market expands, so does the risk of fraud.
Organic fraud occurs when non-organic products are falsely marketed as organic. This can happen at multiple points in the supply chain, from farm-level misrepresentation to fraudulent documentation in global trade. Food and beverage manufacturers must be vigilant in their sourcing strategies to ensure authenticity, maintain consumer trust, and comply with stringent regulatory requirements.
According to Kathryn Britton, Executive Vice President of the watchdog group Where Food Comes From, common fraudulent practices in organics include:
- Blending organic with non-organic ingredients – Mixing organic and conventional ingredients to increase volume while fraudulently maintaining an organic label.
- Misrepresentation of country of origin or international equivalency – Sourcing non-organic ingredients from regions with weak enforcement and mislabeling their origin.
- Lack of traceability – Inadequate supply-chain transparency that allows fraudulent ingredients to enter legitimate markets.
Fraud vs. Adulteration
While organic fraud involves the misrepresentation of non-organic goods as organic, food adulteration is a broader issue that encompasses any intentional addition of inferior or harmful substances to food products. Food adulteration can include adding synthetic chemicals, artificial colors, or low-cost fillers or alternatives to increase profit margins at the expense of safety and quality.
Unlike organic fraud, which primarily deceives consumers seeking organic integrity, food adulteration can pose significant health risks and often violates food safety regulations. Both issues require rigorous oversight, but organic fraud demands additional scrutiny within the certification and labeling processes. With strict organic certification and oversight, such adulteration is much more likely to be avoided.
ABCs of Organic Botanicals
In the herbal trade—whether herbs for foods, dietary supplements, or other markets—there are special issues relating to herbal quality and raw materials of which buyers need to be aware. For this reason, the American Botanical Council (ABC), in partnership with the American Herbal Pharmacopoeia (AHP) and the University of Mississippi’s National Center for Natural Products Research (NCNPR) developed the Botanical Adulterants Prevention Program (BAPP). As described by the ABC, the BAPP is “the largest international nonprofit consortium focused on reducing adulteration in botanical ingredients used in dietary (food) supplements, conventional foods, cosmetics, and other natural health products.” The consortium’s “Best Practices SOP” is designed to “empower suppliers, buyers, and analytical laboratories to ensure the removal of irreparably adulterated and possibly dangerous products (that buyer and supplier agree cannot be lawfully remediated) from global commerce within a contractual framework.” This framework was “vetted by industry stakeholders through two rounds of public input and carefully designed to be flexible.” The description of the BAPP system also notes that its “contract language and SOP templates include simple but robust GMP-consistent dispute resolution provisions that fairly protect the confidentiality and interests of all parties.”
In the recent past, with the disruptions and burdens to global supply chains, the opportunity for fraud in all markets has been increased. Another current burden to the system that increases the risk for economic and organic adulteration is the redefining and restructuring of trade agreements and tariff structures. In some cases, this will lead to prices rising, and even when temporary, such cost increases have historically resulted in increased adulteration.
“Shortcuts in the food industry are common, regardless of whether sourcing internationally or domestically,” notes Annie Ryu, CEO and founder of The Jackfruit Co., makers of Jack & Annie’s organic plant-based products. “With organic or any other certification, it’s important to have checks in place to know you’re getting what you think you’re getting. With our pioneering a leading global supply chain for jackfruit, over the past 10-plus years we learned a long time ago to ‘inspect what we expect’.”
Preventive Measures
Ryu’s method for preventing organic food fraud when sourcing organic ingredients is to start at the source. “We work with thousands of small farmers, where the average farm is fewer than five acres,” she explains. “It’s always been important to our supply chain—in terms of ensuring the right quality, volume, and price—to have local staff on-site where we’re sourcing our jackfruit.”
However, it should also be emphasized that buying certified organic, fair trade and/or regenerative products makes any food much less likely to be adulterated, as certification requires proof of chain of custody (transparency and traceability), while being checked by a third-party certification body. In comparison, regular food buying processes are often lacking full transparency and traceability.
“We view fraudulent practices within the organic supply chain as a serious threat, directly impacting consumer trust and our brand’s integrity,” states Rahul Shrikant, Vice President of International Operations for Global Village Fruit, Inc., a builder of international supply chains for fruits that works with The Jackfruit Co. “Recent global supply chain volatility and high food inflation have magnified these concerns, increasing the inherent risks to quality assurance, particularly for organic products. This environment necessitates an even more vigilant approach to safeguarding our supply chain.”
Global Village works hard from its end to prevent organic food fraud for companies sourcing organic ingredients. “Our defense against organic food fraud is built on a proactive and multilayered approach,” explains Shrikant. “This includes rigorous supplier evaluation, frequent and in-depth audits—both internal and through trusted third parties—and a commitment to working closely with farmers and processors who demonstrably adhere to stringent organic standards.”
Track and Trace
Part of Global Village’s due diligence extends to thorough inspections of its member facilities. Its comprehensive system, encompasses meticulous documentation requirements, independent testing protocols, and strong, transparent supplier relationships. “This forms a robust shield against potential fraud,” says Shrikant. “Our processes are designed to detect any deviations early, enabling swift corrective action and ensuring the unwavering authenticity of our organic ingredients. This proactive approach provides us with confidence in the integrity of our supply chain and the quality of our foods.”
According to Shrikant, the most significant hurdle in controlling organic food fraud lies in ensuring end-to-end traceability, particularly as ingredients move through complex, multi-stage supply chains. “The potential for upstream manipulation of documentation and inconsistencies in certification standards across different regions further complicate this challenge,” he says.
“To directly address this, we employ full-time personnel who work directly with our farmers and co-packers,” continues Shrikant. “This hands-on approach allows us to move beyond mere paperwork, emphasizing physical verification, rigorous testing, and the cultivation of strong, trust-based relationships as essential tools for maintaining the integrity of our foods.”
DIY Organic
For some food entrepreneurs, the best way to ensure ingredients are authentically organic is simply to take the matter into their own hands. A perfect example is provided by Annie Ryu, CEO and founder of The Jackfruit Co., makers of Jack & Annie’s organic plant-based products. By sourcing their jackfruit directly from thousands of small farms, they have helped each of these individual farms attain organic status. “For jackfruit in India, where jackfruit is native, more jackfruit is actually grown organically than is certified as organic,” says Ryu. “The typical farm with jackfruit is a small farm where gaining certification is relatively resource-intensive, and jackfruit—naturally abundant—hasn’t always been connected to a market or buyer.” Being a mission-driven organization with a goal of lifting small farmers out of poverty, Ryu recognized the relative difficulty for a small farmer to gain organic certification. “It is frustrating,” she noted, “since the small farmer is more likely to miss out on the financial benefit of the organic premium.” Ryu confronted the challenge head-on by leading the farmers she works with toward becoming dedicated organic suppliers.
Global Village’s approach has paid off, as Shrikant describes. “During a co-packer evaluation, we encountered a seemingly confident supplier of organic products. However, our on-site assessment revealed a critical lack of fundamental systems for tracing organic produce on their factory floor. This absence created a high probability of unintentional commingling between organic and conventional materials. This finding underscored the critical importance of direct verification and robust traceability systems, even when initial assurances appear strong.”
It is the responsibility of every business to maintain organic integrity throughout its own supply chain and business practices, and this has been mandated through the Strengthening Organic Enforcement (SOE) rule, which mandates that all USDA certified operations have an organic fraud prevention plan added to their organic system plan.
“Transitioning to the additional regulatory elements of SOE has not been a simple task for many in the organic supply chain,” adds Britton. “But we’ve been able to work alongside our organic customers to make the new components digestible and meaningful. There is no doubt that fraud will be harder to commit now that SOE is in place, which only builds reassurance in the value of organic for both food producers and consumers.”
In order to help companies to be compliant with the SOE rule, the Organic Trade Association (OTA) has developed Organic Fraud Prevention Solutions, which include the course “Developing an Organic Fraud Prevention Plan.” The USDA’s Organic Integrity Learning Center offers additional courses such as “Preventing the Organic Fraud Opportunity” and “Organic Fraud and the Criminal Mind.”
Simply Good Business
Beyond regulatory compliance, ensuring organic authenticity is a strategic business imperative. Fraudulent ingredients can lead to reputational damage, product recalls, and legal liabilities. On the flip side, investing in strong sourcing practices builds consumer trust, enhances brand credibility, and strengthens long-term supplier relationships.
Building direct, long-term relationships with producers not only strengthens supply chain transparency but also creates natural safeguards against fraud. Collaborations like the EBI Network are designed to foster exactly this kind of trust-based collaboration—connecting brands with vetted growers and processors who are committed to sustainable and ethical practices. These relationships serve as a living verification system, grounded in mutual accountability and shared values.
No Monkeying Around with Organic
Edward & Sons Trading Co., an organic coconut supplier and leader in ethical and sustainable food products, proudly announced that its long-time Thailand coconut supplier has been named PETA Asia’s “Prestigious Company of the Year” for its commitment to ethical sourcing practices, including monkey-labor-free coconut harvesting. Who knew?
Beyond risk mitigation, these supply relationships are also a powerful marketing asset. Today’s consumers are looking for more than just an organic seal; they’re seeking stories, values, and impact. Brands that can trace their ingredients to specific communities, cultivation methods, or conservation efforts are able to craft narratives that resonate emotionally and ethically with their audience.
By leveraging the EBI Network, companies don’t just secure clean supply—they gain access to authentic, place-based storytelling that strengthens brand identity and customer loyalty.
As the organic market matures, manufacturers must proactively address fraud risks to uphold industry integrity. By leveraging technology, transparency, and building supply relationships, food and beverage companies can confidently bring genuine organic products to market—delivering on the promises that consumers expect and deserve.
