Voluntary Report - public distribution

**Date:** 10/11/2005

**GAIN Report Number:** AS5032

AS5032

**Australia**

**Food and Agricultural Import Regulations and Standards**

**Country of Origin Labeling Likely to Change**

**2005**

**Approved by:**

![](media/image1.wmf)Kathleen Wainio, Agricultural Counselor

U.S. Embassy

**Prepared by:**

Lindy Crothers, Agricultural Marketing Specialist

**Report Highlights:**

FSANZ has made its recommendation on country of origin labeling to the
Ministerial Council and released its Final Assessment Report for
Proposal P292. In summary: There have been no changes to the proposed
requirements for packaged food or unpackaged fish, fruit & vegetables.
Unpackaged fresh pork and preserved pork will have to be labeled in the
same way as unpackaged fish, fruit & vegetables. Food sold for catering
purposes will have to be labeled with country of origin information.
Food sold direct to the public by restaurants, caterers, etc. will not
have to be labeled with country of origin information.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Canberra \[AS1\]

\[AS\]

Food Standards Australia New Zealand (FSANZ) has finalized its review of
Country of Origin Labeling requirements, which began in May 2004, and
has now made recommendations to the Food Regulation Ministerial Council.
FSANZ is recommending the package of measures to strengthen country of
origin requirements in the Australia New Zealand Food Standards Code.

The Ministerial Council is expected to consider FSANZ\'s recommendations
in late October 2005. If the ministers do not seek a review, the new
country of origin standard could become law as early as November 2005.

**Summary of Key Recommendations**

**Packaged Foods**

-   The country where the food was produced, made, manufactured or
    packaged must be identified on the label.

-   The actual country must be stated on the label, rather than relying
    on a statement that the product is imported.

-   A range of statements is allowed, consistent with those allowed
    under trade practices law - for example, \'made in\...\', \'product
    of\...\' or a qualified claim such as \'made in country X from local
    and imported ingredients\'.

-   The terms \'made in\...\' and \'product of...\' must comply with
    trade practices legislation.

**Unpackaged Foods**

-   Requirements as for packaged foods, but applying to unpackaged and
    processed fruit, vegetables, seafood, pork and nuts.

-   The application to pork is new to the Food Standards Code and has
    been included at the request of the pork industry and consumers.

-   Unpackaged foods will be required to have the country of origin
    stated on a label - e.g. a sticker on an orange - or have a sign
    adjacent to the product at the retail display.

-   The print size on the signs must be at least 9mm and the information
    should be set out legibly and prominently (e.g. in contrasting
    colors).

FSANZ sees the major benefit of the recommended country of origin
arrangements as providing consumers with clear and unambiguous
information on the source of a food product, both packaged and
unpackaged. Other benefits include:

-   Unpackaged foods will now be treated in a like manner, whether
    locally produced or imported - addressing a present inconsistency,
    and potential breach of Australia\'s World Trade Organization (WTO)
    obligations, in the Food Standards Code;

-   The proposed requirements bring unpackaged foods into line with
    general labeling provisions in the Code; and,

-   Consistency with trade practices legislation.

**Likely Introduction Of The New Arrangements**

Once ministers have accepted the recommendations and the standard has
become law, industry will have a phase-in period, during which
businesses will have to prepare and apply food labels and signage that
comply with the new requirements. The phase-in period is likely to be as
follows:

-   Unpackaged fish, fruit, vegetables and nuts and packaged fresh
    produce - within 6 months of the standard becoming law

-   Unpackaged pork products - within 12 months

-   Other packaged foods - within 2 years (with an additional 12 months
    for existing stocks).

**Further Information**

Details of FSANZ\'s consultation process and the reports prepared in
response to these consultations can be obtained from the [FSANZ
website](http://www.foodstandards.gov.au/standardsdevelopment/proposals/proposalp292countryo2452.cfm).

FSANZ and the Australian Competition and Consumer Commission (ACCC)
intend to prepare a user guide to explain the relationship between trade
practices and fair-trading laws and the Food Standards Code.

FSANZ will also facilitate a consumer awareness program - for example,
provision of country of origin information in the supermarkets.