Strengthening Australia’s country of origin labelling framework for food Mike Lawson, Portfolio Strategic Policy Division April/May 2015

Agenda Presentation −Problems with the current labelling rules −Proposals for change Plenary discussion – identify problems Table discussions – identify solutions Table feedback Next steps

Improving country of origin labels Country of origin labelling needs to give consumers the information they need, without imposing excessive costs on industry The current system is not working, and the mandate is clear – we need to make changes We want you to help us identify options But they have to be defensible in WTO, which limits what we can require

What is the problem? Numerous Parliamentary inquiries have questioned the usefulness of the current framework – it is complex ‘Made in Australia from local and imported ingredients’ is meaningless Food can be “Made in Australia” without any Australian ingredients The 50 per cent value of production test is costly for industry Some consumers think labelling is weak and not policed

Origin statements: currently “Grown In Australia” or “ Product of…” −Entirely or almost entirely Australian Made in Australia −Substantial Transformation AND −50 per cent value o Nothing required about ingredients, characterising ingredients or significant ingredients Packaged in Australia Not false or misleading

New labels under consideration (Concept) Domestic – text and graphicImported– text no image GRAPHIC Country of origin claim prescribed text – will clearly explain what is done in Australia and the proportion of Australian ingredients Country of origin claim prescribed text – to match the domestic text as closely as possible. All text to be at least 30 per cent larger than surrounding mandatory text and within a prominent box.

New text under consideration (examples only) Grown in (or Product of) Australia –with 100% Australian ingredients Made [processed] in Australia (substantial transformation) –From more than 90% local ingredients –From more than 50%local ingredients –From less than 50% local ingredients –From less than 10% local ingredients –From 0% local ingredients Packaged in Australia –From …. (see above)

Visual representation of percentage of local ingredients (examples only)

A chance to have your say – Problems?

A chance to have your say – Issues Do you have preferences (including cost or marketing impact) about the logo (kangaroo, map, flag, colour, black and white, etc)? Do you have preferences (including cost or marketing impact) about the text? (terms: grown, made, processed, manufactured, etc; size) Will a requirement to indicate the percentage of ingredients affect branding/costs? How often and how much do you change the mix between local and imported ingredients for seasonal/availability/cost reasons? All ingredients, significant or characterising? What about water (reconstitution)? What about coverage – e.g. should alcoholic beverages be excluded

A chance to have your say – Solutions?

Next steps Finalisation of options based on comprehensive regulation impact analysis, informed by: –Industry roundtables in capital cities and some regional centres –Consumer testing/consultation –Cost benefit analysis Commonwealth consideration of options by August. Agreement to changes to the current framework sought from states and territories in accordance with agreed intergovernmental processes. Transition period for industry, and education campaign Updates on our website:

Department of Industry and Science Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone