Lactalis Australia Pty Ltd has been penalized for misrepresenting two of its milk products as “fresh” when they contained significant amounts of reconstituted milk powder. The Australian Competition and Consumer Commission (ACCC) issued the company with three infringement notices for allegedly making false or misleading claims on the labels of its Ferguson Valley WA Dairy Fresh 2L milk and Golden North Country Fresh 2L milk. The company has since paid $59,400 in penalties and removed the word “fresh” from the product names.
Misleading ‘Fresh Milk’ Claims Investigated
The ACCC’s investigation revealed that both affected milk products contained substantial quantities of reconstituted ingredients derived from milk powder. According to ACCC deputy chair Mick Keogh, while some processing like pasteurization and homogenization is expected in fresh milk, consumers assume that milk labeled “fresh” is largely in its original state from the cow. He stated that the products in question were allegedly reconstituted from milk powder and skim milk, a practice that would mislead consumers if the milk was marketed as fresh.
“Most consumers would be aware milk undergoes some processing, so homogenisation [and] pasteurisation, so there may be some adjustment to the butter-fat content to meet the Australian fresh drinking milk standard,” Keogh explained. “But beyond that, we expect milk that’s labelled ‘fresh’ to be largely as it comes from the cow. In this case, it was reconstituted from milk powder and skim milk, we allege, and therefore consumers would be misled if they were advised that that was fresh milk.”
It is important to note that the Golden North Country Fresh 2L milk is distinct from the well-known South Australian ice cream brand, Golden North.
Lactalis Australia’s Response and Previous Penalties
In response to the ACCC’s findings, Lactalis Australia has paid the $59,400 penalty covering the three infringements. Furthermore, the company has taken steps to rectify the labelling by removing the term “fresh” from both the Ferguson Valley WA Dairy Fresh and Golden North Country Fresh milk products. Lactalis Australia is a subsidiary of the global Lactalis Group, which is recognized as the world’s largest producer of fresh dairy products.
This is not the first time Lactalis Australia has faced penalties related to its operations. Previously, the company was fined $950,000 in Federal Court proceedings initiated by the ACCC for breaching the Dairy Code of Conduct. These breaches involved failing to meet certain obligations during the 2020-21 milk season.
Industry Standards and Consumer Confidence
The ACCC emphasized that inaccurate labelling of milk as “fresh” when it contains additives is not a widespread issue within the industry. An extensive review of the milk processing sector by the watchdog indicated that most processors and retailers are adhering to accurate labelling practices for their fresh milk products.
Robert Brokenshire, president of the South Australian Dairyfarmers Association, stressed the importance of consumer trust. He stated that consumers must be able to rely on labels, particularly for products like “fresh full cream milk.” “Labels need to be true to title,” Brokenshire asserted. “At farm gate we’re delivering some of the highest quality, clean and green and fresh milk from our cows… that you’d get anywhere in the world. Fresh milk is fresh milk… we work hard at farm gate on social licence for the dairy industry. Animal welfare is second to none in everything we do. We have very high standards that we have to be able to pass at all times when our milk is tested.”
Broader Warning to Food Processors
The ACCC has issued a clear warning to all food processors, putting them “on notice” regarding the critical need for truthfulness and accuracy in their packaging and labelling. Mick Keogh highlighted past instances where products were mislabelled, such as those advertised as “organic” but not meeting the criteria, or products claiming a specific regional origin that was inaccurate.
“We’ve previously had situations where products described as ‘organic’ [and which] for various reasons weren’t. And we’ve had situations where…. a product was labelled as coming from a particular region, but did not,” Keogh noted. He concluded with a stern reminder: “[Food processors and retailers] risk serious consequences if they make misleading claims to consumers.” This recent action against Lactalis Australia serves as a significant example of the ACCC’s commitment to ensuring fair trading practices and protecting consumer interests in the food labelling landscape.
