Consumer group Choice and retail giant Woolworths have reached rare agreement on the issue of food labelling, and in particular that Country of Origin (CoO) labelling is confusing for consumers.
Choice has released new survey data it says highlights a gap between the current CoO food-labelling system and the standard required to ensure consumers can make informed decisions.
The group said its survey of more than 700 members who regularly shop for food for their household showed understanding of CoO labels was poor, and that the absence of clear definitions left consumers ill-informed about where their food actually comes from.
“Of the respondents, only 12 per cent were able to accurately identify the meaning of 'Made in Australia', while only three per cent knew the correct definition of 'Made in Australia from local and imported ingredients',” Choice said.
“Foods labelled 'Product of Australia' didn’t fare much better – only a quarter of respondents identified the correct meaning, while only eight per cent of respondents understood the meaning of 'Australian grown'.”
Choice said that despite this poor understanding, 85 per cent of respondents said it was crucial or very important for them to be able to identify if the food they buy has been grown in Australia.
The survey also found, however, that knowing the origin of food was more important for fresh food and less so for processed foods.
The survey indicated that 73 per cent of shoppers said it was crucial to know the origin of fresh meat they purchase, 67 per cent said this was also the case when it came to fresh fruit and vegetables and 68 per cent for seafood.
On the other side of the equation, however, a mere 13 per cent of respondents said it was critical to know the origin of confectionery, 15 per cent for soft drinks and cordials, and 17 per cent for snack foods.
Commenting on the Choice survey, Woolworths spokesman Benedict Brook agreed CoO labelling was confusing and said the retailer was open to reforms of CoO labelling.
“Woolworths has long held the view that Country of Origin information is a source of confusion with many of our customers not understanding the difference between terms," he said.
"We support moves by the ACCC to further educate customers about the meaning of these terms, but we also believe there is scope to further reform Country of Origin labelling to ensure it better assists customer choice, promotes locally produced food and can be accurately provided by food manufacturers and retailers."