Study shows high costs for industry

A recent study shows it would cost Australians $120 million a year to extend country-of-origin labelling to canned or packaged food that includes two or less principal whole fruit or vegetable products.

The report also shows that only 10% of consumers would appreciate the extra information about the origin of the ingredients according to the Parliamentary Secretary to the Minister for Health and Ageing, Christopher Pyne.

"The Australian Government, with the agreement of the Australia and New Zealand Food Regulation Ministerial Council, directed Food Standards Australia New Zealand (FSANZ) to undertake a comprehensive impact analysis on the costs and benefits of the proposed extension of labelling requirements," Pyne said.

"The report, which includes an independent study by the Centre for International Economics, concluded that this benefit to consumers would be outweighed by the costs to industry, which would harm the competitiveness of affected Australian-made goods in domestic and global markets."

Pyne also stated that, as a result of the study, the Government would not support the proposal to extend country-of-origin labelling when it is considered this week by the Australia and New Zealand Food Regulation Ministerial Council.

FSANZ has already introduced a standard for unpackaged fruit and vegetables, meat and fish products, so consumers can clearly see the origins of products in the supermarkets.

"Country-of-origin labelling is important to enable Australians to support their domestic agricultural and manufacturing industries," Pyne said.

"But supporting industry requires us to take a sensible approach to this issue. Adding unreasonable cost burdens to local companies would be counterproductive to our aim, which is to help local companies."

The Minister for Agriculture, Fisheries and Forestry, Peter McGauran, has announced that the Australian Government has agreed to establish a high-level working group to develop recommendations in relation to accurate labelling of the food we purchase.

The working group will develop a voluntary "Australian Grown' labelling scheme, as well as examine provisions in the Trade Practices Act, to better reflect the "content' of packaged food products.

This initiative is in addition to the decision in October last year to strengthen the existing country-of-origin labelling measures covering fresh fruit, vegetable, seafood and pork and all packaged food.