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By Jane Bardon
Tuesday, 11/03/2008
Consumers are increasingly are demanding more food produced with environmentally friendly values.But the national consumer watchdog says in many cases shoppers are being conned by labels and advertising. Farmers are also worried they'll have to pay more to produce green food, but won't get paid more for it.From big retailers like Woolworths to niche hobby farms, it seems the whole food industry wants to capitalise on enthusiasm for environmentally produced products.But not everyone's playing fair.The Australian Competition and Consumer Commission is getting an increasing number of complaints.So chairman Graeme Samuel has laid down new guidelines."The guidelines which span quite a number of pages can be summaried in two words: be honest or be accurate. They relate to the prhibitions in the Trade Practices Act against misleading and deceptive conduct."We are seeing claims being made about green, eco friendly, energy efficient products which can't be substantiated. "Some say that less water has been used or a particular environmental benefit is incorporated, when you analyse it, the reduction in water use is one or two percent or the environmental attribute that's is included in the product is of very small proportions, you've got to say, what impression is being given to the consumer by the marketing technique being used?"Graeme Samuel is promising stiff penalties if companies don't comply."Whether or not we get a financial penalty of a million dollars, with big companies ultimately that's not the real issue. The real issue is the publicity and the reputational damage that occurs and I have to say that we never ever settle matters relating to breaches of the Trade Practices Act in private."Woolworths is introducing labelling to show how much energy has been used to make and distribute its own brand products.But its chief executive Michael Luscombe is warning farmers most consumers are expect more eco friendly food, but arent prepared to pay more.And that's exactly what the National Farmers Federation's chief executive Ben Fargher is worried about."When consumers demand greater choice in regard to environmental issues then they are going to have to pay for that. If they pay more it enables the farmer to be able to provode that choice."But if the consumer expectation is that they can always get more for less, that means that farmers have to bear the extra cost of providing the environmental benefit and that squeezes their profit margins."The drive for eco food also has the Federal Government worried.Agriculture Minister Tony Burke has blasted the European Union for threatening to block imports of food transported long distances.But he isn't yet offering food exporters any practical assistance to combat anti food miles campaigns.
In this report: Ben Fargher, National Farmers Federation chief executive; Graeme Samuel, ACCC chairman
Tuesday, 11/03/2008
Consumers are increasingly are demanding more food produced with environmentally friendly values.But the national consumer watchdog says in many cases shoppers are being conned by labels and advertising. Farmers are also worried they'll have to pay more to produce green food, but won't get paid more for it.From big retailers like Woolworths to niche hobby farms, it seems the whole food industry wants to capitalise on enthusiasm for environmentally produced products.But not everyone's playing fair.The Australian Competition and Consumer Commission is getting an increasing number of complaints.So chairman Graeme Samuel has laid down new guidelines."The guidelines which span quite a number of pages can be summaried in two words: be honest or be accurate. They relate to the prhibitions in the Trade Practices Act against misleading and deceptive conduct."We are seeing claims being made about green, eco friendly, energy efficient products which can't be substantiated. "Some say that less water has been used or a particular environmental benefit is incorporated, when you analyse it, the reduction in water use is one or two percent or the environmental attribute that's is included in the product is of very small proportions, you've got to say, what impression is being given to the consumer by the marketing technique being used?"Graeme Samuel is promising stiff penalties if companies don't comply."Whether or not we get a financial penalty of a million dollars, with big companies ultimately that's not the real issue. The real issue is the publicity and the reputational damage that occurs and I have to say that we never ever settle matters relating to breaches of the Trade Practices Act in private."Woolworths is introducing labelling to show how much energy has been used to make and distribute its own brand products.But its chief executive Michael Luscombe is warning farmers most consumers are expect more eco friendly food, but arent prepared to pay more.And that's exactly what the National Farmers Federation's chief executive Ben Fargher is worried about."When consumers demand greater choice in regard to environmental issues then they are going to have to pay for that. If they pay more it enables the farmer to be able to provode that choice."But if the consumer expectation is that they can always get more for less, that means that farmers have to bear the extra cost of providing the environmental benefit and that squeezes their profit margins."The drive for eco food also has the Federal Government worried.Agriculture Minister Tony Burke has blasted the European Union for threatening to block imports of food transported long distances.But he isn't yet offering food exporters any practical assistance to combat anti food miles campaigns.
In this report: Ben Fargher, National Farmers Federation chief executive; Graeme Samuel, ACCC chairman
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