Hamilton's Milkio Foods Claims Products Are '100% Pure New Zealand' but Imports Core Ingredient from India

Farmers' Weeklyreports that Milkio Foods' having taken advantage of New Zealand's "clean, green" international image to mislead export markets about the true origins of its core ingredients (i.e. India) has just scored the company a $420k fine.

The prosecution has come as the result of a case referred to the Commerce Commission by the Ministry of Primary Industries.

Proving the point I made in my article of earlier this week, Hamilton-based Milkio had been severely chastised for compromising the term and image of, "pristine New Zealand".

According to the Farmers' Weekly article, Milkio pleaded guilty to 15 breaches of the Fair Trading Act for making false representations about the country of origin of the butter used in its ghee products, and using the FernMark logo and licence number without proper authorisation.

The Commission said Milkio had taken advantage of New Zealand’s reputation for high-quality dairy products to promote its own products through the use of descriptions like "100% pure New Zealand" and "from the clean green pasture-based dairy farms in New Zealand".

Judge Thomas Ingram pointed to the serious damage this type of behaviour would do to our highly valued export markets, "not merely to consumers, but also to other producers who rely upon ‘Brand New Zealand’ in connection with sales of dairy products.

“This conviction should serve as a warning to others who may be looking to falsely claim the New Zealand brand.”