The global trade of food is a diverse and complex operation and one in which most countries strive to take part. Governments recognize that a strong national food industry is an important supplier of food to the population and a significant contributor to food security. They also view food exports as an important source of foreign exchange. The expansion and diversification of the food trade can be attributed to many factors. First, the disciplines of food microbiology, food chemistry and food technology are continuously providing a broader range of foods by developing new and more sophisticated preservation, processing and packaging techniques which make foods safer, less perishable and more attractive to the consumer. Second, rapid transport and improved handling methods have reduced the length of time and difficulties associated with moving food long distances, thus allowing traders access to new and far-away markets. Third, consumers’ tastes and food habits have become more varied and their incomes and purchasing power have risen, stimulating the demand for traditional and new foods from other regions.
As the state of the food industry and food production has changed, so too have the general environment in which food is traded and the rules that are applied. International trading in food formerly took place with little, if any, government intervention, and it was accepted that the food producers set their own standards and determined the quality of food products offered to consumers. Many traders were reputable and responsible and took great care to protect the health of consumers. However, some dishonest food traders found that the unregulated markets gave them an excellent opportunity to exploit consumers through unfair trade practices associated with pricing, misrepresentation of products and misleading labelling.