A Hamilton-based dairy company, Milkio Foods Limited, has been fined for falsely advertising its products as “100% Pure New Zealand” despite using imported ingredients, specially Indian butter.
On Monday, the New Zealand Commerce Commission fined Milkio Foods Limited 420,000 NZD (384,800 AUD) after the company pleaded guilty to 15 breaches of the Fair Trading Act. The breaches involved making false representations about the origin of the butter used in their ghee products, a staple in many households worldwide.
The Commission’s investigation revealed that Milkio falsely claimed its ghee products were made from New Zealand dairy when, in fact, the core ingredient—butter—was imported from India. The company went so far as to use phrases like “100% Pure New Zealand” and “from the clean green pasture-based dairy farms in New Zealand” in their marketing materials, which misled consumers both domestically and internationally.
Judge Thomas Ingram, who presided over the case at Hamilton District Court, emphasized the potential harm these misrepresentations could cause to the New Zealand dairy industry.
“The company’s false claims could severely damage the trust that consumers and international markets place in New Zealand’s dairy products,” Judge Ingram noted during sentencing.
Compounding the issue, Milkio Foods Limited also used the FernMark logo and licence number without proper authorization. The FernMark logo is a trusted symbol globally, signifying that products are genuinely made in New Zealand. However, Milkio provided false and incomplete information to retain the approval to use this logo, further misleading consumers about the true origin of their products.
Vanessa Horne, the Commerce Commission’s Fair Trading General Manager, underscored the importance of the case, given the global value of New Zealand’s export brand.
“New Zealand has built an international reputation for high-quality dairy products, which underpins the value of our dairy industry and exports,” said Ms Horne in a statement, adding, “Milkio took advantage of this reputation to promote its own products, deceiving consumers and potentially harming the entire industry.”
New Zealand’s dairy industry is a cornerstone of the country’s economy, renowned for producing high-quality milk, butter, and other dairy products from its rich, green pastures.
The Commerce Commission’s decision to prosecute Milkio Foods Limited was driven by the need to protect this reputation. “This conviction should serve as a warning to others who may be looking to falsely claim the New Zealand brand,” Horne added, stressing the integrity of the country’s dairy exports must be preserved.
The case was initially referred to the Commerce Commission by the Ministry for Primary Industries, highlighting the collaborative effort to maintain the credibility of New Zealand’s agricultural exports.
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