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• Fact Sheets 2005

Country of Origin Labelling

12 August 2005

Questions & Answers

Why is FSANZ reviewing country of origin labelling for food?

Food Standards Australia New Zealand (FSANZ) is currently reviewing country of origin labelling in both Australia and New Zealand. FSANZ’s Board will consider the final proposal in late September 2005 before the proposal is referred to the Australia and New Zealand Food Regulation Ministerial Council for consideration in early October 2005.

The Ministerial Council asked FSANZ to review country of origin labelling of food in late 2003. The Council consists of the food ministers (who are usually either a health or agriculture minister) of each state and territory, the Australian Government and the New Zealand Government. The Council is chaired by the Australian Government’s Parliamentary Secretary for Health and Ageing.

At the time, the Ministerial Council stated that country of origin labelling was not a public health and safety issue but one to enable consumer choice. The Ministerial Council’s policy guideline can be viewed at http://www.health.gov.au/internet/wcms/publishing.nsf/Content/foodsecretariat-policydocs.htm/$FILE/cool_guidelines.pdf . The first round of public comment occurred in 2004 and the second concluded in May 2005.

In drafting this new country of origin labelling standard, FSANZ must:

•  take into account the views of consumers, producers, manufacturers and retailers;
• make sure consumers have access to accurate information;
• ensure that we do not develop an expensive system of labelling, especially as costs could be passed on to consumers; and
• ensure consistent treatment of domestic and imported foods.

What are the current country of origin labelling rules in Australia?

Currently, the Australia New Zealand Food Standards Code requires the country of origin to be stated on packaged food.   Alternatively, a label could state that the product was packaged in a particular country from local and imported products. Imported unpackaged fruit, vegetables, nuts and seafood must be labelled as imported, although there is currently no requirement to label unpackaged local food as Australian.  

Also, the Trade Practices Act in Australia, whilst not mandating country of origin labelling, sets out ‘defences’ for products labelled as ‘Product of Australia’ if each significant ingredient is produced in Australia or as ‘Made in Australia’ for those products that have been substantially transformed in Australia and where 50% or more of production costs have been carried out in Australia. The statement ‘Made in Australia from local and imported ingredients’ has been considered by the ACCC in the context of qualifying a ‘Made in’ claim for manufacturers unable to satisfy the provisions for a ‘Made in’ claim. The ‘Made in Australia from local and imported ingredients’ claim provides consumers with additional information as to the origin of the ingredients used and in this example there would be more local ingredients than imported.  

What are the current country of origin labelling rules in New Zealand?

In New Zealand, country of origin requirements in the Food Standards Code only apply to wine.

What are the proposed new rules for packaged food in the discussion paper?

The discussion paper proposes strengthening the current country of origin labelling provisions in the Code. Packaged food must carry a separate statement identifying the country of origin of the food It will no longer be sufficient just to list the country in the manufacturer’s address on the label.

In Australia, the Trade Practices Act provision for ‘Product of Australia’ and ‘Made in Australia’ will provide the relevant regulation.

What are the proposed new rules for unpackaged food in the discussion paper?

The proposal extends the existing requirements for packaged foods to unpackaged fresh and processed fruit, vegetable, nuts and seafood, which must now state the country of origin, and not just state ‘imported’. This labelling would include, for example:

• both fresh tomatoes and unpackaged sundried tomatoes,
• unpackaged fresh and smoked fish fillets and frozen unpackaged crumbed fish fillets; and
• fresh apples and dried apples.

These unpackaged foods, if produced locally, must be labelled as ‘Australian produce’ in Australia and as ‘New Zealand produce’ in New Zealand. These labels are likely to be on a sign near the produce - for example a bin of apples will have a sign for price and a sign for country of origin.

The labelling, like all other food labelling provisions, will not apply to food sold in restaurants, cafes or takeaway shops.

What are some examples of what the labels will look like?

Taking the example of Australian grown beans sold in Australia:

• If the fresh beans are sold loose they will have a label stating ‘Australian …’either on the food or close to where they are sold. (Food Standards Code requirement.)
  
• If the fresh beans are wrapped in clear plastic and on a polystyrene tray they would also have a label stating ‘Australian …’ on the package or close to where they are sold. (Food Standards Code requirement.)
  
• If the beans were cooked and canned in Australia with other Australian beans in a three bean salad they may qualify to state ‘Product of Australia’ or ‘Australian …’. (Consistent with trade practices law.)
  
• If the beans were cooked and canned in Australia with other Australian grown and imported beans in a three bean salad where more than 50% of its production costs were incurred in Australia the can may qualify to   state ‘Made in Australia’. (Consistent with trade practices law.)
  
•  If the beans were cooked and canned in Australia with imported beans in a three bean salad and is unable to meet the ‘Made in’ defence the can may state ‘Made in Australia from local and imported ingredients’.   (Consistent with the ACCC guideline.)
  
• If the beans were frozen and mixed with imported vegetables the package may read ‘Packed in Australia from local and imported ingredients’.   (Consistent with the ACCC guideline.)
  
• If the beans were mixed into a salad with other Australian ingredients and displayed in a delicatessen, they would need to have a sign stating ‘Australian …’ close to where they are sold. (Food Standards Code requirement.)
  
• Beans sold for catering purposes, such as in a take away shop, cafe or restaurant, would not need country of origin labelling (Food Standards Code requirement).

Why can’t local and imported ingredients be labelled separately?

It would be very expensive to trace every ingredient in a packaged food for its country of origin as in some packaged foods there are a large number of ingredients. It was because of concerns about passing on the high cost of this type of labelling to consumers that the Australia and New Zealand Food Regulation Ministerial Council decided, in its original policy decision, that country of origin labelling would not apply to ingredients, only to whole foods.

Is imported food safe?

All food sold in Australia and New Zealand, whether it is local or imported, must be safe. The Food Standards Code is enforced by either the food agency /health department of the Australian states and territories and by the Australian Quarantine and Inspection Service at the border. In New Zealand, it is enforced by the New Zealand Food Safety Authority. These jurisdictions regularly check imported and locally produced food on the shelves for safety and compliance.

FSANZ also coordinates the Australian Total Diet Study that, every few years, checks a wide range of foods sold in Australia for a number of chemicals. Each of the 20 Australian Total Diet Studies to date have found the chemical levels tested to be well within safety limits. There are similar findings in the New Zealand.

In Australia, FSANZ also works closely with Australian Quarantine and Inspection Service (AQIS) on the imported food inspection program and any food found to be unsafe is not permitted into Australia . For more details on the imported food inspection program see http://www.foodstandards.gov.au/mediareleasespublications/factsheets/factsheets2003/importedfoodinspecti1985.cfm

When will the labelling changes take effect?

If the new standard is approved, it is proposed for the labelling requirements for unpackaged fresh, processed food and packaged fresh food to come into force 6 months after the new standard becomes law (gazettal). This will give retailers time to install information systems about their fresh fruit, vegetables, nuts and seafood and to train their staff in the new requirements.

The new country of origin labelling standard for packaged foods will be phased in over 2 years from the time it is gazetted. This period gives time for food manufacturers to make the labelling changes when they next need to reprint labels rather than go to an expensive reprint (and this cost would be passed onto consumers). Once the standard comes into force, there will be a further period for old manufactured stock (stock-in-trade) to be used up, as it would be wasteful to remove products from shelves. For example, some canned products made legally under the old requirements may have a shelf life of up to two years.

Will the labelling have to be a certain size?

The labelling on both packaged and unpackaged food must be in English, legible to the average person and distinct from the background. This is the same as all other food labelling including serious public health and safety issues such as allergen labelling. The sign adjacent to unpackaged goods must be at least 9mm in size, as many will be handwritten.   They must be clear and unambiguous.

How can businesses and consumers get more information on the new labelling?

FSANZ will be working on guidelines and an education campaign to help consumers, retailers and industry understand the country of origin labelling provisions of the Food Standards Code. The Australian Competition and Consumer Commission have already produced a guideline for the food and beverage industry providing guidance on the country of origin labelling and the Trade Practices Act. “Food and beverage industry: country of origin guidelines to the Trade Practices Act” see

http://www.accc.gov.au/content/index.phtml/itemId/306388/fromItemId/3737

How can I get a copy of the discussion paper?

You can access a copy of the summary paper and draft standard at www.foodstandards.gov.au or request a copy by email slo@foodstandards.gov.au or in Australia phone (02) 6271 2222 or fax (02) 6271 2278 or in New Zealand contact the FSANZ Office - phone (04) 473 9942 or fax (04) 473 9855. The consultation period ends at close of business on Monday 5 September 2005.

What happens after the consultation process?

FSANZ will take into account the comments received and present a final standard for decision to the FSANZ Board at a meeting in late September 2005. If the Board agrees to the standard then the Australia and New Zealand Food Regulation Ministerial Council will be notified. Each jurisdiction has a 60-day period to seek a review if they do not agree to the standard. If a review is sought the standard will be delayed while FSANZ carries out a review. If the Council does not seek a review than the new standard will be gazetted and become state and territory and New Zealand food law. However, New Zealand has the right to opt out of a standard if they wish. The Ministerial Council will discuss the standard at its meeting in late October 2005.