Confusion reigns amongst food producers and consumers in New Zealand over the labelling requirements for GM foods. On 28 July 2000 the Australia New Zealand Food Standards Authority ("ANZFA") agreed to a standard for the labelling of GM Foods which will take effect in September 2001. One of the issues which has arisen in recent months, amongst both food producers and consumers, is how the new labelling regime will stack up against our current consumer protection legislation.

The ANZFA Code

Standard 18 of the ANZFA Code will require food or food ingredients which contain novel DNA or protein to be labelled. Food containing genetically modified ingredients will have the ingredients labelled in the ingredients panel while single-ingredient foods will require the words "genetically modified" to appear against the name of the food on the front display panel.

Foods that will be exempt from these requirements are:

- highly refined foods such as sugars and oils where the effect of the refining process is to remove novel DNA or protein;

- processing aids or food additives such as chymosin used in cheese manufacture and vitamin C which is used as an antioxidant in fruit juices. Processing aids/food additives will not be exempted where novel DNA and/or protein is present in the food to which it has been added;

- flavours which are present in a concentration less than or equal to 0.1% in the final food;

- foods prepared at point of sale, for instance all deli, restaurant, cafe, and fast foods; and

- food where any one ingredient contains up to 1% of genetically modified material and the presence of that material is unintended.

The Implications of the Exemptions

These exemptions have rattled nerves on both sides of the GM foods debate. The reaction from anti-GM lobbyists is that the legislation is a huge compromise for New Zealanders especially as they will see foods containing genetically engineered refined sugars, starches, oils, canola, potato, corn, sugar beet, soy, and cotton going unlabelled. Concerns have also been raised over there being no labelling requirement where a manufacturing process has involved genetically engineered processing aids/additives or where foods have been prepared at the point of sale.


The issue for food producers is how they should label food falling within the exemptions. This is particularly important to manufacturers of processed foods as food of that nature will regularly come within the exemptions to standard 18. Many food manufacturers are, understandably, keen to use the phrase "GM free" wherever possible. However, the Commerce Commission has produced a guideline on how it intends to exercise its "watchdog" status under the Fair Trading Act 1986 in relation to GM food. That guideline states that a person cannot say or imply that a food product is "GM free" if the product contains any GM ingredients or if any genetic engineering is part of the production process.

What does it all mean for food manufacturers?

It means that although food falling within the labelling exemptions does not have to be labelled as "genetically modified" it cannot necessarily be labelled as "GM free". It is clear that food manufacturers utilising GM ingredients, even if those ingredients have been refined to a point where there is no novel genetic material/protein present, will have to remain extremely cautious about how they label and promote food products after standard 18 becomes mandatory in September this year.

Important Facts

"Green Party MP Sue Kedgley today said the Government's back-down on GE labelling left consumers with a watered down labelling regime which would be hopelessly confusing and would provide inadequate information"
Green Party Press Release

This is a general summary only and should not be taken as a substitute for specific advice.

x-tech group Simpson Grierson Web site: x-tech group Simpson Grierson

Contacts

Michael Sage, Partner, michael.sage@simpsongrierson .com
Earl Gray, Partner, earl.gray@simpsongrierson.com
Jan Kelly, Partner, jan.kelly@simpsongrierson.com
Anna Jellie, Solicitor, anna.jellie@simpsongrierson.com

September 2001