NZ to seek review of infant formula rule as cloud hangs over $1b of exports

Monday, 22 July 2024

Danone has argued a new standard would in effect require infant formula to be “white-labelled” in plain packaging.

The Government will seek a review of a proposed trans-Tasman infant formula labelling standard that Danone warns threatens 441 jobs and $1 billion of annual exports, Prime Minister Christopher Luxon has announced.

Luxon said the Government would oppose the new labelling requirements when Food Minister Andrew Hoggard meets with Australian federal and state food ministers on Thursday.

French multinational Danone has forecast it may need to shift the manufacturing of infant formula away from New Zealand if the new standard, developed by Food Standards Australia New Zealand (Fsanz), is ratified unchanged next month.

The standard would introduce further controls on the statements infant-formula manufacturers can make on their products, reflecting Fsanz’ concerns parents may be unnecessarily persuaded to feed formula to infants in preference to breast-feeding.

Danone’s Sydney-based director of legal compliance, Maria Venetoulis, has told The Post the new standard would hamper its exports to China and South-East Asia by in effect prohibiting it from telling consumers about “innovations” in its products.

The jobs of workers at its Nutricia formula plant at Clydevale near Balclutha and its canning plant in Mangere in South Auckland would be at risk, she has said.

Food Minister Andrew Hoggard will meet with Australian food ministers on Thursday.

Luxon suggested Australian and New Zealand interests diverged because the supply of infant formula was about a $2b business in New Zealand but about a $300m one in Australia.

The new standard had been 11 years in the making “and we've got issues with a small part of it”, he said.

There were a range of escalations the Government could put in place if Australia did not agree to changes, he said.

“But let's first and foremost let Minister Hoggard meet with his counterparts in Australia.”

The two countries have previously diverged on their approach to the regulation of Kava, when that became subject to a Fsanz standard, but it is understood having different standards for Australian and New Zealand infant formula could be more consequential.