Horsing Around with the Global Food Chain

By Nayan Chanda

"Waiter, there's a horse in my soup!" For European consumers who enjoy the convenience of frozen precooked meals like lasagna, this is no longer an unsavory joke. Europeans are angry about globalization and suspicious of its products. Along with horsemeat, a powerful anti-inflammatory drug phenylbutazone, normally administered to horses as a pain treatment, has entered the European food chain, triggering investigations and soul-searching about the efficacy of governance in an intricately interwoven world. As with previous cases of fraud and poisoning of processed foods and beverages in globally traded products, the horsemeat saga once again throws the spotlight on an emerging reality: For a safe and sustainable global supply chain, there's no substitute for effective local governance.

Receive email alerts

The scandal erupted in mid-January when British food inspectors discovered horse DNA in packages of beef lasagna marketed by Findus Group, headquartered in Britain. Initial investigations unraveled a spaghetti-like supply chain linking at least five European countries that had managed to re-label the less expensive horsemeat as beef: Findus placed orders for lasagna, cannelloni, spaghetti bolognaise and moussaka at a Luxembourg-based French company Comigel, which had contracted with the French processing company Spanghero to source beef. The contract went to a Dutch trader based in Cyprus. The Cypriot company in turn outsourced the order to a Dutch company which subcontracted another company. The order ultimately landed with a Romanian abattoir that supplied minced meat to Spanghero. According to Benoît Hamon, the French deputy minister in charge of consumer affairs, Spanghero mislabeled Romanian horsemeat as beef. By substituting horsemeat for beef, Hamon said, Spanghero may have made a €550,000 profit.

Since this chance discovery of mislabeling in Findus lasagna, more cases have been exposed - an Irish company sold mislabeled Polish horsemeat, and several UK companies have marketed horsemeat as beef burgers and kebabs. By the latest account, some 750 tons of horsemeat have gone into 13 European countries of which 550 tons were used in the manufacture of more than 4.5 million meals. According to the French minister, fraudulent sales of horsemeat had been going on for months.

UK government testing has shown that little over 1 percent of declared beef products were horsemeat - enough to have shaken consumer confidence in precooked supermarket meals. Supermarkets have withdrawn beef Bolognese sauce, beef broth soup, meat pasta sauce and chili con carne suspected of containing horsemeat. From being a straightforward case of mislabeling or fraud, the scandal took a more ominous turn last week when the UK's Food Standards Agency said phenylbutazone, a drug potentially harmful to human health, was identified in carcasses of horses, some of which were exported to France. There's no taboo attached to horsemeat in Europe; restaurants put it on menus and serve it to customers. And although the British government's chief medical officer has discounted the risk of ingesting a dose that could be harmful to humans, the revelations have left a bitter taste with consumers. If horsemeat was sold under the label of "100 percent pure beef," what else have consumers been fed that's yet to be revealed?

The horsemeat scandal has highlighted a dark side of the globalized economy. The 2008 global financial crisis that encompassed the European Union triggered a deep economic recession that affected all aspects of life. Many horse owners, fallen on hard times, abandoned their animals. Instead of incurring the costs of euthanizing them, owners sent the animals to abattoirs to bring in needed cash. In Ireland, the European country with the largest concentration of horses, some 25,000 were sent to slaughterhouses in 2012. The economic crisis accounts for a tenfold increase in the slaughter of horses during the past four years, resulting in a sharp drop in the price of horsemeat. On the other side of the continent, the 2007 Romanian ban on horse-drawn carriages on highways had a similar effect, accelerating the slaughter of horses. Leaner horsemeat, which costs half the price of beef, found its way into the food chain.

1 | 2 | Next Page››

Nayan Chanda is editor of YaleGlobal Online and co-editor of A World Connected: Globalization in the 21st Century. © 2013 Yale Center for the Study of Globalization

(AP Photo)

Sponsored Links
Nayan Chanda
Author Archive