Pig farmers welcome origin labelling while food processors stew on the cost
Australian pork producers say consumers will finally be able to see where their pork comes from.
The new Made in Australia labels are due to start in 12 months, and feature the green and gold kangaroo triangle with added extras.
It shows whether food products have been grown in Australia, and produced from 100 per cent, 75 per cent, 50 per cent or less of Australian ingredients.
The pork industry says consumers will finally learn which products use genuine Australian ingredients. (Photo: David Claughton)
The Australian labelling push is long awaited, but the issue got a kick along from the Hepatitis A scare in imported berries in January.
However, the Federal Government says this reformed Australian-made label is not about food safety.
This is about Australians consumers supporting local farmers and the pork industry is delighted.
"We have had a significant problem that 70 per cent of ham and bacon consumed in Australian is made from imported pork. But it all has a claim on it, with some variation, of 'Made in Australia'," said Andrew Spencer, chief executive of Australian Pork Limited.
"Consumers ,when we ask them, believe that means it originates in Australia.
"The new system does not allow imported pork products made into bacon or ham, with a Made in Australia claim on its own.
"That is a great step forward.
"If imported pork is cured sliced and packaged in Australia, it can have a green kangaroo label that says 'Made in Australia from imported pork'.
"That is the truth and we cannot complain.
"At the moment, the consumers' informed choice is not happening."
But it will remain voluntary for food processors to include the country of origin, say Canada for the bacon. Mr Spencer acknowledged that would be hard to enforce and impractical.
"For other food that becomes complicated. Imagine selling a cake; you have Australian flour and eggs, Sri Lankan cinnamon, Florida oranges. It's very complicated.
"But Australian consumers want to support Aussie farmers, and they support our animal welfare."
Mr Spencer could foresee a day when the Australian pork industry could expand under this new labelling system.
"We're already an industry that employs 20,000 people, worth $1 billion at the farm gate," he said.
"If this means we sell more Australian ham and bacon because consumers can access it, that is a great thing for consumers and for the industry."
The dairy industry is still considering the label, but wonders how the the consumer and competition regulator, the ACCC, will police any new law.
Already the ACCC can call for penalties for misleading labels, like the $60,000 fine for misleading country of origin labels on fresh produce in supermarkets in 2013.
In 2012, ACCC brought action against a bedding company, which "made false representations that sheepskin and wool bedding products were made in Australia and contained 100 per cent sheep wool or contained 100 per cent alpaca wool when this was not the case".
In 2010, tinned fruit company Golden Circle breached the rules, when it labelled the tins as "proudly Australian owned" when Heinz was owned by an American company and acquired Golden Circle in 2008.
The Federal Government accepted there would be added costs to industry of around $37 million, but the Australian Food and Grocery Council's Gary Dawson said the cost to industry would be more.
"When you think about a mandatory labelling change, with tens of thousands of products, the costs are going to be way, way higher than that," he said.
Mr Dawson said a key issue was that in many cases a food processor would generally use local ingredients but import them out of season.
"You can't chop and change your labels with every batch without incurring huge costs," he said.
The Food and Grocery Council represents manufacturers who also use imported ingredients, and he said the vast majority of imported foods were safe and that most food poisoning issues arose in Australian kitchens.
NSW farmers say changes welcome, but must go further
The NSW Farmers Association also welcomed the new country of origin labelling changes.
It said the changes were a good first move that saw the Federal Government progressing towards transparency on the origin of food for consumers.
However, despite this progress, the association said the current proposal failed to meet consumer expectations that labelling of key ingredients be made mandatory.
"It is important for consumers to know where their food originates, because it helps them make informed decisions about what products to buy," NSW Farmers horticulture chair Brett Guthrey said.
"The proposed logo will assist Australian families to make this choice with a simple glance.
"We hope it will see an increase in the demand for wholly Australian produced food.
"It is also good news that confusion around the description 'Made in Australia' will also be clarified by requiring the proportion of ingredients grown in Australia to be declared.
"However, the NSW Farmers Association believes the transparency deserved for Australian consumers includes the identification of where these key ingredients have been grown.
"The benefits of identifying the source of key ingredients must be at the heart of the government's announced two-year review."
Source: ABC News, Sarina Locke, July 22nd 2015
Originally published as: Pig farmers welcome origin labelling while food processors stew on the cost
