FoodLegal

By Joe Lederman and John Thisgaard (FoodLegal Co-Principals) 

© Lawmedia Pty Ltd, April 2025 

Australian Competition and Consumer Commission (ACCC) News

1.     ACCC releases final report on 2024-2025 supermarket inquiry

On 21 March 2025, the ACCC released its final report for its 2024-2025 supermarkets inquiry. The inquiry covered issues such as competition within Australia’s retail sector, consumer experiences, supply chains and supermarket margins in the context of increasing prices.

The report comes as a new mandatory Food and Grocery Code takes effect, imposing requirements for large grocery retailers and wholesalers when dealing with their suppliers (see Item 2 below).

The ACCC report also makes several recommendations to address competition and consumer issues in the grocery industry, including:

·        Requirements for supermarkets to publish all prices online

·        Greater transparency about the rebates suppliers pay to supermarkets

·        Amending the mandatory Food and Grocery Code to remove the ability for supermarkets to negotiate out of any protections under the Code

·        Mandatory notification of packaging size changes to avoid ‘shrinkflation’

·        Greater transparency about loyalty programs and how they impact product value

2.     Mandatory Food and Grocery Code takes effect

On 1 April 2025 the mandatory Food and Grocery Code of Conduct (Food and Grocery Code) took effect.

The Food and Grocery Code contains protections for suppliers of grocery products when dealing with large grocery wholesalers and retailers. It also imposes obligations on retailers and wholesalers relating to issues including supply agreements, payments from suppliers, fresh produce pricing, supplier intellectual property, dispute resolution and record-keeping and compliance.

The Food and Grocery Code is a mandatory Industry Code under the Competition and Consumer Act and is enforced by the ACCC. Breach can result in fines exceeding AUD$10m.

Tariffs and quotas news

3.     United States imposes tariffs on Australian exports, including beef

On 2 April 2025 the United States announced it would impose a 10% tariff on Australian exports.

In making the announcement, the US Administration referred specifically to Australian beef. The Australian Government has announced funding for affected industries.

4.     India imposes tariffs on Australian pulses

On 1 April 2025 the Indian Government implemented tariffs of 11% on lentils and 10% on chickpeas. The tariffs will apply to pulses exported from Australia.

The tariffs had previously been removed in February 2022.

Australian food regulatory news 

5.     DAFF publishes dairy risk review

On 4 March 2025, the Department of Agriculture, Fisheries and Forestry (DAFF) published its final import risk review for ‘Dairy products for human consumption’. The review aimed to update Australia’s dairy import conditions and reflect the current and future trading environment.

Under the updates, key risk measures for imported dairy will include:

·        further risk management options for countries not free from foot-and-mouth disease and/or sheep pox and goat pox;

·        removal of specific risk management for lumpy skin disease virus; and

• addition of further risk management measures for peste des petits ruminants virus in imported dairy products (except for cheese) of ovine and/or caprine origin.

At the date of this article (April 2025), DAFF has not formally announced a timeline for these changes to take place, but expects a transition period of at least 12 months to apply.

At the time of publishing its review, Australian importers are dealing with foot and mouth disease outbreaks in Germany, Hungary and Slovakia (see Item 4 below).

6.     DAFF consultation on proposed change to include new “organic” requirements for algae

On 21 March 2025, DAFF announced a consultation on proposed changes and additions to the national standard for organic and bio-dynamic produce. The proposed changes concern a new algae section to the national standard. The proposed changes include the scope of the standard, definitions, the standard itself and a relevant appendix.

The national standard for organic and bio-dynamic produce is a voluntary industry standard, but is used to inform requirements for organic certification schemes and for products exported from Australia that claim to be “organic”.

Submissions close on 20 April 2025.

7.     FMD outbreak in Hungary and Slovakia

DAFF has published an Import Industry Advice Notice that Hungary (effective 7 March 2025) and Slovakia (effective 21 March 2025) have notified the World Organisation for Animal Health (WOAH) of an outbreak of foot and mouth disease (FMD).

DAFF is currently assessing the biosecurity risk to Australia and considering changes to import conditions regarding dairy, beef, reproductive material, veterinary therapeutics, pet food/stock feed and laboratory goods of various sources from these areas.

There is also an ongoing FMD outbreak in Germany, which was notified to the WOAH on 10 January 2025. Dairy products that have been sourced from or manufactured in Germany face increased restrictions and risk assessments.

FoodLegal can advise companies importing products that have been sourced from, manufactured in, or using ingredients from Hungary, Slovakia or Germany.

8.     TGA Updates recall procedure

On 5 March 2025, the Australian Therapeutic Goods Administration (TGA) replaced their Uniform Recall Procedure for Therapeutic Goods with the new Procedure for Recalls, Product Alerts and Product Corrections (PRAC). The PRAC contains improved readability, however the same process for sponsors.

New guidance and terminology will apply, and the previous System for Australian Recalls Actions has been renamed the Database for Recalls, Product Alerts and Product Corrections (DRAC).

9.     Office of Gene Technology Regulator opens consultations on safflower

The Australian Office of Gene Technology has opened consultations on an application from Miruku Australia Pty Ltd to conduct a field trial of safflower which has been genetically modified for dairy protein production and altered fat composition.

A Risk Assessment and Risk Management Plan is available. Submissions are open to 1 May 2025.

This consultation relates to a trial crop. Any use of genetically modified ingredients in food must undergo a separate pre-market assessment under Standard 1.5.2 of the Australia New Zealand Food Standards Code.

10.  ABAC decision on ‘shoeys’

On 28 January 2025, an Alcohol Beverages Advertising Code (ABAC) panel made an expedited determination on alcohol advertising by Fizzy Mates Pty Ltd. A complaint was made concerning eight different social media posts, including videos, which depicted alcohol use alongside swimming, operating a boat and performing a ‘shoey’.

Under Part 3 (a)(ii) of the ABAC Code, alcohol consumption must not be shown, encouraged or treated as amusing or irresponsible. ABAC found that the depiction of a shoey had breached part 3 (a)(ii) by depicting the rapid consumption of alcohol.

Part 3 (d) of the Code states that the consumption of alcohol must not be shown before or during any activity that requires a high degree of alertness or physical coordination such as controlling a motor vehicle, boat, machinery or swimming. ABAC found that Part 3 (d) was breached by the posts that depicted alcohol consumption on a boat.

The company has accepted the breach and then removed or modified the posts.

11.  ABAC decision on beer represented as ‘cereal for dinner’

On 25 February 2025, an ABAC panel made a determination on a social media post by Modus Brewing. Modus brewing made an Instagram post with three images where the popular cereal ‘Froot Loops’ was used to advertise beer which was branded as ‘cereal for dinner’.

A complainant had argued this had strong or evident appeal to minors.

Part 3 of the Code states that an ad must not strongly appeal to minors. The panel determined that the marketing was not intended to target minors, but it nonetheless did appeal to minors due to the cereal imagery, its familiarity and relatability to minors. Therefore, the complaint was upheld.

Food Standards Australia New Zealand (FSANZ) News

12.  FSANZ opens public consultation on review of caffeine permissions

On 4 March 2025, FSANZ opened public consultation on Proposal P1056 – Caffeine review. This is the second call for submissions under this Proposal.

The Proposal focuses on:

-        Addition of caffeine to Formulated Supplementary Sports Foods;

-        Prescription of maximum one-day levels of caffeine from any source; Prescribing the inclusion of caffeine in the NIP;

-        Prescribing the maximum concentration of caffeine;

-        Addition of mandatory warning statements for products containing caffeine.

This April 2025 edition of FoodLegal Bulletin includes an article on the implications for businesses from these proposed amendments.

Submissions close 15 April 2025.

13.  FSANZ opens public consultation on Egg food safety and primary production requirements

On 31 March 2025, FSANZ public consultation on Proposal P1060 – Egg food safety and primary production requirements. The proposed amendments aim to address two primary issues:

-        Increasing rates of salmonella illness that is linked to eggs and egg products; and

-        Changes to the Australian risk environment regarding Salmonella Enteridis and Salmonella Typhimurium, which are currently not factored into existing food safety measures within the Food Standards Code. In 2018-19, a Salmonella Enteridis outbreak linked to eggs resulted in 245 illnesses.

Submissions close 12 May 2025.

14.  FSANZ calls for comment on applications

FSANZ is currently calling for comment on the following applications:

·        Application A1323 - Food derived from insect-protected soybean line COR23134. The application was made by Corteva Agriscience Australia Pty Ltd. Submissions are open to 15 April 2025.

·        Application A1315- Chitosan and (1,3)-β-glucans from white button mushrooms (Agaricus bisporus) as a food additive. The application was made by Chinova Bioworks Inc. Submissions are open until 6 May 2025.

·        Application A1314 - Permitting small dogs and cats in aircraft cabins. The application was made by Virgin Australia. Submissions are open until 30 April 2025.

15.  FSANZ completes administrative assessment of new Applications

FSANZ has completed an administrative assessment of the following Applications to amend the Food Standards Code:

·        Application A1328 - Aminopeptidase from GM Trichoderma reesei as a processing aid, made by Danisco Australia IFF

·        Application A1326 - Addition of phytosterols, phytostanols or their esters as a novel food to bread and bread products, made by George Weston Foods

·        Application A1325 - Extension of use of steviol glycosides in hotplate flour products, made by George Weston Foods.

FSANZ will start its in-depth assessment of the above Applications and will announce an opportunity to comment at a later date.

16.  FSANZ approves Application A1302 – Food derived from insect-protected corn line MZIR260

On 26 March 2025, FSANZ approved Application A1302 by Syngenta Pty Ltd to amend the Food Standards Code to permit the sale and use of food derived from genetically modified corn line MZIR260.

FSANZ has notified the Food Ministers’ Meeting, which has 60 days to either request FSANZ to review its approval or inform FSANZ it does not intend to request a review.

New Zealand

17.  NZ Gene Technology Bill undergoes consultation

The New Zealand Government closed its latest round of consultations on proposed changes to gene technology laws on 17 February 2025..

The Gene Technology Bill was introduced in late 2024 and aims to:

-        Establish a separate gene technology regulator within the Environmental Protection Agency;

-        Set up a separate risk-based regulatory regime;

-        Provide a flexible and efficient framework for risk management (e.g. for breeding, making, importing and decision making on gene technology and GMOs);

-        Provide specific exemptions for low-risk technologies; and

-        Align New Zealand with international trading partners.

Currently (as at April 2025), regulation of gene technology and genetically modified organisms (GMO) in New Zealand falls under the Hazardous Substances and New Organisms Act 1996. The New Zealand Government expects that the Bill will pass Parliament and enter into force by the end of 2025.

18.  NZ Food Safety publishes food safety governance principles for directors

In March 2025, New Zealand Food Safety (a branch of the NZ Ministry for Primary Industries) published guidance material for directors of food businesses concerning their food safety governance obligations. The guidance covers implementing a food safety culture, risk management, system design and company performance.

You can find the guidance on FoodLegal InHouse.

19.  Commerce Commission files charges against HelloFresh

On 11 March 2025, the New Zealand Commerce Commission announced it had filed criminal charges against HelloFresh New Zealand for allegedly misleading consumers in New Zealand through ‘cold calls’ to reactivate subscriptions.

The Commerce Commission alleges that Hello Fresh offered customers a discount voucher without it being made clear that acceptance of the voucher would reactivate their subscription. The Commerce Commission claims that this conduct was misleading in breach of the NZ Fair Trading Act.

20.  NZ MPI opens consultation on Biosecurity (Meat and Food Waste for Pigs) Regulations 2005

The NZ MPI has opened consultation on a review of the Biosecurity (Meat and Food Waste for Pigs) Regulations 2005. The review is intended to reduce biosecurity risk and improve the MPI’s ability to monitor compliance.

Submissions close 27 April 2025.

21.  Updated MRLs for Agricultural compounds

The New Zealand Ministry for Primary Industries (MPI) has proposed updates to maximum residue levels (MRLs) for agricultural compounds.

New Zealand sets its own MRLs in the Food Notice: Maximum Residue Levels for Agricultural Compounds. The MPI proposes to update several MRLs for agricultural compounds listed in Schedule 1, including two new entries for MRLs and 12 amended entries for existing MRLs.

The proposal is open for comment to 16 May 2025.

22.  NZ MPI publishes Poison Use Statement – Human consumption and pet food

On 11 March 2025 New Zealand Food Safety published an updated Poison Use Statement for Human Consumption and Petfood.

The updated Poisons Use Statement replaces two separate statements (one for food for human consumption and one for pet food). The Poisons Use Statement is a requirement under the Animal Product Notice: Production, Supply and Processing and must be provided by a hunter to a processor when supplying animal materials.

United States

23.  US to explore elimination of GRAS process

The United States Secretary of Health and Human Services has directed the Food and Drug Administration (FDA) to explore ways to eliminate the Generally Recognised as Safe (GRAS) process. According to the Secretary, this process allows food companies to introduce ingredients into the food supply without oversight or formal safety review.

The US FDA strongly encourages manufacturers to submit GRAS notifications to the FDA, however it is possible to self-affirm a substance is GRAS without notifying the FDA.

24.  FDA extends compliance date for food traceability rule

On 20 March 2025, the US FDA announced that it intended to extend the compliance date for the Food Traceability Rule by 30 months. The food traceability final rule creates additional recordkeeping requirements for persons who manufacture, process or hold foods that are on the food traceability list.

United Kingdom

25.  UK bans livestock due to FMD outbreak

The United Kingdom government has banned imports of some meat and dairy products from Hungary and Slovakia due to an outbreak of foot-and-mouth disease (FMD). A confirmed case of FMD was found on a cattle farm in North-West Hungary, near the Slovakian border.

Affected imports include cattle, pigs, sheep, goat, fresh meat and dairy. This ban follows existing prohibitions on imports of some animal products to the UK from Germany due to a separate outbreak in Brandenburg.

26.  UK FSA consultation on adopting EU requirements on breakfast food products into UK law

On 19 March 2025, the UK Food Standards Agency (UK FSA) opened a consultation on transposing (transferring) new requirements in EU Directive 2024/1438 into domestic Northern Ireland legislation. The directive amends four directives on honey, fruit juices, jams, jellies, marmalades and preserved dehydrated milk products.

The four directives are as follows:

·        Directive 2001/110/EC relating to honey

·        Directive 2001/112/EC relating to fruit juices and certain similar products 

·        Directive 2001/113/EC relating to fruit jams, jellies and marmalades and sweetened chestnut purée

·        Directive 2001/114/EC relating to certain partly or wholly dehydrated preserved milk

The consultation closes on 14 May 2025.

This is general information rather than legal advice and is current as of 7 Apr 2025. We recommend you seek legal advice for your specific circumstances before making any commercial decisions.