Page 5 - Food&Drink magazine July 2021

Senate inquiry into protein labelling
NEWS
Woolies, PFD deal gets ACCC tick
THE Australian Competition &
Consumer
Commission
(ACCC) has
approved
Woolworths
Group’s
acquisition of a
65 per cent stake
in PFD Food Services, citing the transaction would not be likely to lessen competition.
ACCC chair Rod Sims said that while there were concerns expressed by some suppliers, many other suppliers did not raise competition concerns.
“PFD makes up about two per cent of the overall demand from food suppliers, which was a key factor in the lack of concern from some suppliers,” said Sims.
“Our investigation focused on the potential impact of the transaction on suppliers of food and grocery products. Market feedback suggested that some suppliers see the wholesale food distribution channel as a competitive alternative to supermarkets in distributing their products.”
In May, five peak bodies across Australia urged the commission not to greenlight the acquisition because of the “significant damage it will likely cause to small businesseswhooperateinthe
food distribution sector”. Independent Food
Distributors of Australia chair Richard Hinson said, “While we acknowledge the ACCC’s efforts in investigating this proposed acquisition, we are incredibly disappointed by
the decision to allow Woolworths to acquire PFD, one of the most significant players in the food distribution services sector.”
Sims said: “The ACCC acknowledges that the acquisition will likely lead to changes in the way the wholesale food distribution industry operates.
“Despite these potential changes, we concluded that there are several competitors in the wholesale segment with similar market share to PFD and non-price aspects of competition, such as range, quality and service levels are likely to remain an important part of the competitive dynamics. Consequently, there is not likely to be a substantial lesseningofcompetition.” ✷
A senate inquiry into the use of animal protein labels by alternative proteins will specifically look at the potential damage done to the meat industry. Queensland senator Susan McDonald launched the inquiry, saying it was up to the makers of non-meat products to come up with their own product names rather than trading off animal protein labelling.
A former butcher shop owner, McDonald recently established the Parliamentary Friends of Red Meat advocacy group with Labor MP Milton Dick.
The inquiry follows a roundtable discussion held on food labelling by federal agriculture minister David Littleproud last year.
The Alternative Proteins Council (APC) cautioned against the inquiry becoming a conventional protein versus new proteins debate, as it implied new protein industries would grow at the expense of more conventional ones.
The APC said it was yet to see any evidence that justified the concerns raised regarding plant-based product labelling and looked forward to presenting the inquiry with evidence to the contrary.
“It’s time to have an evidence- based conversation about the opportunity emerging protein sectors present to Australian
farmers, and the important choice the category presents for consumers,” the council said.
Red Meat Advisory Council chair John McKillop said allowing “highly processed plant-based protein made from imported ingredients to be labelled as Australian meat” was a “national disgrace”.
“These highly processed, unnatural plant-based products are increasingly seen as a health risk and are in no way similar to the red meat produced by Australian farmers.
“The brand and reputation of natural beef, lamb and goat has been built over generations and is now being denigrated by companies that are deliberately trying to use piggyback marketing to sell an inferior product,” McKillop said. ✷
HEALTH AND SAFETY FLOORING
SLIP RESISTANT • ULTRA CLEAN • IMPERVIOUS
1800 ROXSET
1800 769 738 www.roxset.com.au
Food Factories, Meat Processing Facilities, Bakeries, Hotels, Nursing Homes, Hospitals, Restaurants, Retail Outlets, Seafood and all other Safety Surfaces.
Do you need flooring for your Food Facility?
www.foodanddrinkbusiness.com.au | July 2021 | Food&Drink business | 5