A major Australian dairy company has been fined by a consumer watchdog for misleading consumers by labeling two of its products as “fresh milk” when they were found to contain significant amounts of milk powder.
Golden North Country fresh 2 liter milk from Lactalis Australia has been found to contain significant amounts of milk solids. (Supplied by: Lactalis Australia.)
The Australian Competition and Consumer Commission (ACCC) has issued three infringement notices to Lactalis Australia Pty Ltd for “making false or misleading statements in the labeling” of two of its dairy products – Ferguson Valley WA Dairy Fresh 2L milk and Golden North Country Fresh 2L milk.
The latter product is in no way related to South Australia’s Golden North Ice Cream.
ACCC deputy chairman Mick Keogh told SA Country Hour that both products contained “significant amounts of powdered reconstituted ingredients”.
“Most consumers are aware that milk undergoes some processing, i.e. homogenization (and) pasteurization, so there may be some adjustment to the butterfat content to ensure it meets the Australian Fresh Drinking Milk Standard,” he said.
“But beyond that, we expect milk labeled ‘fresh’ to be primarily cow’s milk.
The ACCC found that Ferguson Valley WA Dairy Fresh 2L milk was incorrectly labeled as “fresh”. (Supplied by: Lactalis Australia.)
“In this case, we submit that it was reconstituted from milk powder and skim milk and therefore consumers would be misled if they were told it was fresh milk.”
Lactalis Australia paid $59,400 in fines for three offences, and also removed the word “fresh” from both products.
The company, which owns a wide range of dairy products and brands in Australia, is owned by the multinational Lactalis group, the world’s largest fresh dairy company.
Most retailers label their milk accurately.
Labeling milk as “fresh” if it contains additives is not a widespread problem, according to the ACCC.
The watchdog’s dairy industry study found that processors and retailers generally accurately label their fresh dairy products.
South Australian Dairy Farmers Association president Robert Brokenshire said consumers needed to be confident that milk labeled “fresh whole milk” was what it was.
Robert Brokenshire says consumers should feel confident about labeling. (Supplied by: South Australian Dairy Association.)
“The label must live up to the name… we deliver to the farm gate the highest quality, cleanest, greenest, freshest milk from our cows… that can be sourced anywhere in the world,” he said.
“Fresh milk is fresh milk… we are working hard at the farm gate to gain a social license for the dairy industry. Animal welfare is second to none in everything we do.
“We have very high standards that we must meet whenever our milk is tested.”
Food processors are ‘notified’ of precise markings
The ACCC said it has alerted all food manufacturers to the importance of truthful and accurate packaging and labeling.
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“We’ve had situations in the past where products were described as ‘organic’ (and which) for various reasons were not. And we’ve had situations where… a product was labeled as coming from a certain region, but it didn’t,” Mr Keogh said.
“(Food manufacturers and retailers) risk serious consequences if they make misleading statements to consumers.”
Lactais was previously fined $950,000 for breaching the Dairy Code of Conduct by failing to meet some of its obligations for the 2020-21 dairy season in Federal Court proceedings brought by the ACCC.
The ABC has contacted Lactalis Australia Pty Ltd for comment.