Australia’s food labelling system is designed to give consumers clarity and ensure they can make informed choices about the origin of the food they buy.
The Federal Government has introduced Country of Origin labelling reforms for food. This is regulated through a mandatory information standard under the Australian Consumer Law, and the ACCC rather than through the Australia New Zealand Food Standards Code.
The new obligations have been mandatory since July 2018.
However, the reality is far from straightforward, with inconsistencies and ambiguities that can confuse shoppers. In particular, the difference between “Australia Made” and “Product of Australia” labels is a source of confusion, leading to misleading perceptions about the true origins of the food. Here we explore the shortcomings of the Australian food labelling system and the impact on consumers and local producers.
The Rise of Misleading Labels
In recent years, there has been a growing demand for more transparency regarding the sourcing of food products. Consumers are increasingly concerned about where their food comes from and how it is produced. This is especially true for Australians, who are proud of their local agricultural industry and prefer to support homegrown products. As a result, the “Australia Made” and “Product of Australia” labels have become vital signals of trust, but these terms are often not as clear as they seem.
The key issue lies in the varying definitions of these labels and how they can be applied to a product. The current labelling regulations allow both “Australia Made” and “Product of Australia” labels to be applied to a wide range of food products, but they are not synonymous and do not always reflect the same level of local involvement in production.
“Australia Made” vs. “Product of Australia”
The “Product of Australia” label is meant to indicate that a product is almost entirely sourced and produced within the country. To carry this label, the product must meet strict criteria: at least 90% of the ingredients must come from Australia, and the final processing and packaging must take place within the country. This label is more reliable for consumers who want to support Australian agriculture, as it signals a higher level of local involvement in the product’s creation.
The “Australia Made” label indicates that a significant portion of the production process occurred in Australia. However, this does not necessarily mean the entire product is sourced or processed locally. For example, a food item could be made in Australia but contain ingredients that are imported, sometimes even from countries with lower food safety or environmental standards. The term “Australia Made” might give consumers the impression that they are purchasing a product that is entirely Australian, but in reality, this is often not the case.
However, the distinction between these two labels is often subtle and not well understood by the average consumer. Research shows that many shoppers equate “Australia Made” with “Product of Australia,” despite the fact that the former can involve imported ingredients. This confusion can lead consumers to unknowingly buy products that don’t meet their expectations of local production, undercutting the efforts of local farmers and producers who rely on the “Product of Australia” label to differentiate their goods.
The Problem with Labelling Regulations
The lack of clarity around these labels reflects broader issues with the food labelling regulations in Australia. The criteria for using the “Australia Made” and “Product of Australia” labels are not as transparent as they should be. This allows companies to exploit grey areas in the law and use labels that might mislead consumers about the true origins of their food.
For instance, products bearing the “Australia Made” label may contain only a small proportion of Australian ingredients or may have undergone minimal processing in the country. Companies can also source ingredients from overseas, process them in Australia, and still use the “Australia Made” label. This discrepancy is frustrating for consumers who assume that such products are fully Australian-made, and it also gives an unfair advantage to companies that take shortcuts with their sourcing and production processes.
Impact on Local Producers and Consumers
The lack of transparency in food labelling has real-world consequences for both local producers and consumers. Local farmers and food manufacturers invest heavily in sustainable, ethical, and high-quality production methods. They rely on clear and trustworthy labelling to promote their products and build consumer loyalty. However, when labels like “Australia Made” are used loosely, it undermines the value of genuinely Australian products and makes it harder for local producers to differentiate themselves in the marketplace.
Consumers, too, suffer from the confusion. Many Australians want to support local businesses and buy products that are both ethically sourced and produced in their own country. When labelling fails to provide clear information, they may inadvertently support businesses that don’t align with their values, or worse, buy products that they believe are Australian but aren’t.
Australia’s food labelling system requires a fundamental overhaul to ensure greater transparency and consistency. Clearer guidelines are needed to distinguish between “Australia Made” and “Product of Australia,” with stricter criteria and better consumer education to accompany these labels. For instance, clearer definitions could stipulate that “Australia Made” products must meet a certain threshold of local ingredients, or that the label must explicitly state whether the product contains imported components.
Ultimately, better food labelling is essential for empowering consumers to make informed choices and for supporting local farmers and food producers. Until the labelling system is reformed, Australians will continue to face confusion at the supermarket, and local businesses may struggle to compete against misleadingly labelled products. It’s time for change to restore confidence in Australia’s food labelling system.
