SEAFOOD CONSUMPTION : THE IMPACTS OF LABELLING

Download FRDC Project No. 2009/216 Final Report (PDF | 4 MB)

The Northern Territory (NT) was the first Australian jurisdiction to implement such laws so far along the supply chain. In all other Australian jurisdictions seafood labelling laws cease at the back door of food outlets, leaving consumers unable, in many instances, to readily determine if the seafood in their meals is imported or harvested in Australia.

The NT fish retailer seafood labelling laws had been in place for 16 months when this project commenced and the projects aims were to formally measure the impact the labelling laws were having along the supply chain, and whether the labelling laws had lead to changes in seafood purchasing behaviour at a food supply level, as well as with consumers.

The information obtained through this project was designed to specifically assist the NT seafood industry and NTG to assess the impacts of the current labelling laws, and to provide information to other Australian jurisdictions who may be considering a similar approach to labelling

The project methodology used a quantitative approach involving face-to-face surveys of two specific groups; Food Service Sector Venues (pubs/clubs, cafes/restaurants and takeaways) and Consumers. This was achieved through 5 waves of surveys over a 12 month period, to take into account Darwin’s distinct seasonal activity based around the tourism industry and local fishing fleet activity.

The survey results demonstrated a high level of consumer support for seafood labelling laws that identify imported seafood. They also highlighted supply chain challenges and opportunities for the seafood industry and food service sector, plus a number of issues in respect to the impacts the labelling laws had on the food service sector and consumers which are discussed briefly below.

The survey showed that the source of seafood has not changed dramatically as a result of the labelling laws, but there has been a drop in the use of imported product provided by seafood wholesale suppliers to fish retailers.

The laws are generally supported by both the food service sector and consumers although there was a degree of confusion as to what the labelling laws involved, and a general lack of awareness that the legislation was in place. This confusion is brought about when seafood is unlabelled, therefore resulting in consumers being unable to determine where the seafood comes from. This may have been an issue before the legislation came into force but the labelling laws do not stipulate that all seafood should be labelled, therefore leaving an avenue for this confusion to continue. Subsequently there is a greater reliance on ongoing education to explain the laws to the relatively transient population of the NT and the large number of tourists visiting the NT. A possible solution would be to legislate that all product is labelled as Australian or imported, thereby simplifying the education process for consumers (i.e. if everything was labelled this doubt would be removed).

The surveys also showed that labelling laws influence consumer choice, and it was rated as a key decision factor - simple concise labelling would ensure the relevant information is provided. The influence of tourism activity on menus generally lead to an increase in volume of seafood sales, and this increase was covered by a combination of imported and Australian product.

The cost for the food service sector of implementing and complying with the legislation was generally not significant. Businesses appeared to adjust quickly, with the vast majority being in a position to comply with the legislation within a month of its implementation. Major concerns from this sector related to having to update and change menus/special boards due to supply issues with ‘local’ product, and the need for the ongoing training of staff. The food service sector in Darwin has a considerable staff turnover and consequently, knowledge of labelling laws tended to be frequently lost to the organisation, therefore necessitating ongoing and proactive education programs.

The NTG Fish Retailer licensing system provided an extremely useful mechanism for making initial contact with the food sector participants in the project.

The consumer survey showed that after freshness, country of origin is the second most influential factor for consumers when choosing seafood for a meal. Survey results also showed that consumers are willing to pay a premium for seafood labelled ‘local’. Although general awareness was low, 82% of respondents indicated that an understanding of the NT Seafood Labelling laws would significantly influence their choice of seafood purchase. This reiterates the value of having labelling laws clearly and consistently detailed at the point of sale.

The survey also highlighted some areas that need further work, such as understanding the seafood supply chain better so as to improve access to local species, understanding the current barriers, and understanding the drivers for choice from a purchase perspective.

FRDC Project 2009/216: Tactical Research Fund: Tracking the impacts on seafood consumption at dining venues arising from the Northern Territory’s seafood labelling laws is supported by funding from the FRDC on behalf of the Australian Government

Project Investigators:
Chris Calogeras, C-AID Consultants
Katherine Sarneckis, Northern Territory Seafood Council
Leonie Cooper, NT Fisheries
TY Lee, Australian Culinary Association (NT)

 

Seafood Industry Alliance submission on Review of Food Labelling Law and Policy

• May 2010 (Download PDF | 704 KB  )

• November 2010 (Download PDF | 775 KB)

Northern Territory Seafood Council submission on Review of Food Labelling Law and Policy

• November 2010 (Download PDF | 775 KB)

Fish Labelling Fact Sheet : Download PDF