Changes to allergen labels in the New Zealand Australian Food Standards Code are likely to come at a cost to the food industry but are intended to reduce the impact of food allergens on society.
Originally proposed in 2018, The Plain English Allergen Labeling (PEAL) seeks to make allergen labels clearer and more consistent on the Australian food package.
As it stands, the Code requires that all 11 known foods and ingredients that may cause adverse allergic reactions be labeled when present in food.
However, the reason for the proposed changes is that there are currently no requirements as to how these determinations must be made, leading to confusion and uncertainty. potentially life-threatening. There is also evidence that the lack of specific requirements on how allergens can prove has created uncertainty for compliance by the food industry and regulators in implementing the Code.
The changes will take effect in mid-February unless a review is requested from the Ministerial Forum on Food Regulation this month after they were approved by the Australian and New Zealand Food Standards Board (FSANZ). ) in December.
Changes to the Code
After first considering two options – maintaining the status quo by not amending the Code or forcing businesses to name allergens using mandatory naming terms in bold – FSANZ came up with a third deeper and more expensive proposal. .
Option three states that businesses must declare allergens using mandatory named terms in bold, with additional requirements for display in the ingredient statement as well as in a separate allergen summary statement.
Code changes require mandatory designated terms of source of allergens when exposing allergens, and for businesses to separate molluscs, individual tree nuts (such as Brazil nuts, cashews and pecans among others) and wheat, barley, rye or oats and gluten if present.
The allergen label also follows specific instructions regarding the form, wording and location of the test.
When the changes to the Code take effect, there will be a transition period of three years followed by a two-year stock trading period to implement PEAL.
FSANZ stated that the transition period would allow any relevant food to be sold as long as the food complies with the allergen certification requirements contained in the Code or the modifications arising from this recommendation.
Cost to business compared to society
Of the 30,000 food products sold or ‘stock holding units’ (SKUs) in the Australian market (including fresh produce), more than half are expected to contain allergens and the change will affect them.
The changes are likely to cost the Australian industry between $ 41 million and $ 105 million, around $ 2733 and $ 7000 per SKU. This does not include the cost of controlling the movement and its implementation, and of setting up various allergen testing requirements overseas where products are traded and not used. special leaflets for the market already.
However, FSANZ said the change will eventually pay off when it takes into account the impact of food allergens on society.
The Australasian Society for Immunology and Allergy (ASCIA) Food Allergy factsheet states that food allergies occur in about 10% of babies, 4–8% of children and about 2% of adults in Australia and New Zealand.
This suggests that between 656,045 and 856,178 people a year will get food allergies.
FSANZ estimates that the social cost of food allergies will be between $ 6 and 8.1 billion annually.
The five-year implementation period is also expected to allow most businesses to update their labels within their normal label renewal cycle, reducing new label costs by 70% (down to $ 31.5 million or $ 2100 per SKU).
FSANZ estimates that, with all the features under consideration, the change would have to lead to a reduction of at least 0.25% of the annual social cost of food allergies over a ten-year period to provide a benefit. .