The ACCC alleges that Lactalis’ Golden North ‘Country Fresh’ 2L milk and Ferguson Valley ‘WA DAIRY FRESH’ 2L milk were labelled as fresh milk, when each contained substantial amounts of powdered reconstituted ingredients.
Lactalis’ products were identified in an ACCC investigation of the milk processing industry, which included obtaining information and reviewing the products of several major dairy processors and retailers.
The ACCC’s investigation found that processors and retailers largely label their fresh milk products accurately.
However, the ACCC’s investigation identified that Lactalis added substantial amounts of reconstituted skim milk and lactose to its Golden North ‘Country Fresh’ 2L milk.
It also identified that Lactalis has added substantial amounts of reconstituted lactose to its Ferguson Valley ‘WA DAIRY FRESH’ 2L milk.
Australian Dairy Farmers said this week’s ACCC action against Lactalis Australia should serve as a warning to the dairy industry, highlighting the importance of consumer trust and the growing pressures facing Australian dairy farmers.
ADF president Ben Bennett said consumers deserved complete confidence in Australian dairy.
“Australian consumers have a right to know what they are buying, and Australian dairy farmers deserve a marketplace built on honesty and trust,” Mr Bennett said.
“While we welcome the ACCC’s action, let’s face it – a $59,400 penalty is nothing for one of the world’s largest dairy companies. It sends a message, but it needs to change behaviour.”
Mr Bennett said the case was about much more than product labelling.
“The broader concern is what this says about what happens when Australian dairy farming is continually squeezed,” he said.
“We continue to lose dairy farmers and local milk production.
“Western Australia now has fewer than 100 dairy farmers, and similar pressures are being felt in dairy regions across the country.”
He said when Australian milk production declines, processors had fewer local options which creates a greater reliance on substitute ingredients and imported products.
“When you don’t value Australian milk, eventually you have to replace it.
“Whether that’s imported dairy products or powdered ingredients, it’s not what Australian consumers expect when they buy fresh milk.”
Mr Bennett said maintaining consumer confidence should be a priority for the entire dairy supply chain.
Lactalis has also acknowledged underpayments to an undisclosed number of Australian employees.
The company carried out a review of awards applying to employees and turned up a number of deficiencies.
The company said it was taking action to correct the mistakes and had self reported its findings to the Fair Work Ombudsman.
