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Could Australia be hamstrung by earlier WTO country-of-origin ruling?

By RJ Whitehead

- Last updated on GMT

Could Australia be hamstrung by earlier WTO country-of-origin ruling?

Related tags Australia Junk food

Could Australia be hamstrung by earlier WTO country-of-origin ruling?

Australia will revamp its “Made in Australia” kangaroo food logo to boost the impact of a new country-of-origin labelling system, Prime Minister Tony Abbott has announced.

Abbott and Agriculture Minister Barnaby Joyce this week outlined the government’s plans to use a gold bar as the new national standard to indicate if food has been grown, processed or packaged in Australia. 

The labels combine in the iconic green and gold kangaroo with a yellow bar showing to what extent a product has been grown or made in Australia along with the percentage of local ingredients. 

The new format will start off voluntarily, though manufacturers have been advised that they will be compelled to adopt such labelling from next year if the proposal gains traction across Australia.

The issue of labelling is especially emotive in patriotic Australia, where a 2013 poll showed that almost two-thirds of Australians would opt for Australian-made products even when they cost more than imported goods.

"What this is about is being truthful to the Australian people about what they buy with their money​," said Joyce.

"The Australian people overwhelmingly wanted greater clarification and greater honesty in the description of where their product comes from​.”

The agriculture minister was referring to a hepatitis scare earlier this year when a brand of frozen berries, which were grown and packed in China although linked to Australia by labelling, hit the headlines for possibly being behind the outbreak.

The government had avoided the country-of-origin labelling debate for a long time, but was forced to readdress it after widespread criticism of the current system, which opponents said did not provide consumers with enough accurate information. 

The move was met with support by Australian grocers, with the Australian Food and Grocery Council saying the government’s decision was “recognition of the importance of Australian jobs in the food production and processing sector​”.

The retention of the term ‘Made in Australia’ and wider use of the well-known ‘Australian Made’ logo underlines the value of the more than 300,000 jobs in Australia’s food and grocery processing sector, with almost half of those jobs in rural and regional areas​,” said Gary Dawson, the AFGC’s chief executive.

Dawson then urged the government to “understand” the cost, complexity and added red tape that new labelling would impose on the industry, with “the burden falling hardest on small business and those companies affected by seasonal variations in their sourcing​”.

A flexible and practical approach, focused on the information that is most valued by consumers, will be essential during the transitional phase​,” Dawson advised.

However, any joy for consumers or the industry might be short-lived if the new system is deemed to breach World Trade Organisation regulations. 

When country-of-origin labelling was proposed earlier this year, there was speculation that any change would mirror a past WTO ruling on labelling for the American beef industry, which adjudged it to favour domestic livestock.

Abbott said he was confident the new regulations would satisfy WTO rules and Joyce insisted the US case was not comparable.

Kiwis in favour of more advertising restrictions, according to ‘flawed’ junk food survey

New Zealanders want the government to place greater controls on junk-food advertising to children, with almost three-quarters calling for stronger restrictions. 

Rich
NZFGC chief executive Katherine Rich

A poll commissioned by researchers at Auckland University found 40.5% of Kiwis were strongly in favour of more restrictions on the promotion of unhealthy food and drinks to children, while almost one-third more were "somewhat" in favour. 

The survey is part of research to investigate new ways of dealing with an obesity epidemic that has seen the South Pacific nation accommodate the third-highest proportion of overweight or obese children in the developed world. Currently, 11% of New Zealand children are obese. 

Boyd Swinburn, who is conducting the research, said such strong support to limit junk food advertising should be seen as a call to arms for the government to act. 

This finding is not surprising​,” said Professor Swinburn. “Parents do not like having to say ‘no’ to their children all the time. The pester power that the marketing to children creates really undermines parents’ efforts to give their children a healthy diet​.”

Clearly the public are very supportive of the government taking a much stronger lead in protecting children and supporting parents by restricting unhealthy food marketing that targets children​.”

However, the New Zealand food industry’s apex body, the Food and Grocery Council, has accused researchers of using leading questions in the study to suggest that a large proportion of junk food advertising was directed at children.

Katherine Rich, chief executive of the FGC, also pointed out that the survey featured an opt-in poll for those who had a particular interest in a given topic, rather than developing a more appropriate random sample.

"The questions are extremely leading, creating the impression there is a lot of advertising directed at children, when this is simply not the case. It's a classic push-poll designed to get a certain answer​.”

She said many of the respondents might not be aware of the codes and policies that already existed in New Zealand.

"Food companies already adhere to these strict rules. These include food advertising rules that are overseen by the Advertising Standards Authority. They are stringent and clear codes and I’m not sure where they could be strengthened​.

Rich said that most FGC members had publicly committed not to place advertising in locations where children would be the main audience. 

Our members view the codes as important and the right thing to do​,” she added.

Reader’s Digest commends Blackmores with seventh gong on the hop

Blackmores has been named Australia’s most trusted vitamin and supplements brand by Reader’s Digest for the seventh consecutive year. 

Blackmores

A poll of 2,410 Australians awarded Australia’s biggest natural health company the title based on a local measure of brand preference and consumer trust. 

Trust is not something you can buy or manufacture; it is earned from years of dependability, reliability and consistency​,” said Dave Fenlon, Blackmores’ regional managing director. 

BioCeuticals to incorporate Spanish chondroitin sulfate in its range

Spain’s Bioibérica will provide chondroitin sulfate to BioCeuticals of Australia for use across its joint-care range.

BioCeuticals

The Australian company will also extend its portfolio with a new product, Chondroitin BioActive, which may help slow the progression of mild osteoarthritis of the knee, as well as provide temporary relief of symptoms including joint swelling, pain and reduced mobility. 

BioCeuticals manufactures practitioner-only therapeutic supplements, which will now contain Bioibérica’s CS b-Bioactive in its joint-care products.

The pharmaceutical-grade chondroitin sulfate, has been through more than 20 clinical trials and treated 14m patients around the world. Tests have shown its efficacy in reducing pain and improving the mobility of patients with osteoarthritis.

Recent reports have stated the supplement could control the course of the disease and reduce the need for knee prostheses. 

“This is an important step in Bioibérica's 2015 international expansion plan for its human health division. This year, our chondroitin sulfate has entered new markets, such as Poland, Hungary and Austria, thanks to strategic alliances with companies that share a profile similar to our own: scientists who stand behind the highest quality product and who are committed to the patient,” said José Escaich, Bioibérica's chief executive. 

CS b-Bioactive already available in countries including Spain, Italy, Holland, Germany, Finland, the United States and Malaysia. 

According to the government figures, nearly 2m Australian’s—or 8% of the population—have osteoarthritis, with two of every three patients women. Chronic joint disease costs the government more than AU$1.5bn each year.

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