A new EU proposal to label all previously frozen butter 'defrosted' could confuse consumers and lead to more than 50% of butter having to be sold at a cheaper price, dairy industry experts have warned.
The move would mislead consumers into thinking there was a quality issue between it and fresh butter, which was not the case, they claimed in response to European Council proposals tabled in December.
"The separation would create two markets: one for 'normal butter' and one for defrosted butter which the consumer would certainly view as a second-class product although there is absolutely no difference in terms of quality," said Jukka Likitalo, legal adviser at Eucolait, the European Association of Dairy Trade.
It could lead to a situation where "the defrosted one might become cheaper", he added. This would devalue up to half the market as up to half of the 1.9 million tonnes of butter produced in the EU every year was frozen. As well as adding cost to the supply chain, a change to the labelling regime would also be impractical, he said, adding that frozen butter was currently used quite legitimately to balance fresh butter supplies. It would hit imports too as these were transported frozen.
Arla, which imports frozen New Zealand butter for its Anchor brand, said it was standard practice to use frozen butter to manage cream supply and demand.
"The European Dairy Association is lobbying the European Parliament on behalf of the industry, which opposes the proposal because freezing butter does not affect the quality," she added.
Dairy UK, which is lobbying for the reference to be removed, said it was concerned suppliers would interpret the regulations differently. Defra added that it was looking into the impact of certain technical aspects of the proposal, which is due for its Second Reading in the summer.
Eurolait said it intended to convince the EU institutions of the negative impact the proposed amendment would have.
The move would mislead consumers into thinking there was a quality issue between it and fresh butter, which was not the case, they claimed in response to European Council proposals tabled in December.
"The separation would create two markets: one for 'normal butter' and one for defrosted butter which the consumer would certainly view as a second-class product although there is absolutely no difference in terms of quality," said Jukka Likitalo, legal adviser at Eucolait, the European Association of Dairy Trade.
It could lead to a situation where "the defrosted one might become cheaper", he added. This would devalue up to half the market as up to half of the 1.9 million tonnes of butter produced in the EU every year was frozen. As well as adding cost to the supply chain, a change to the labelling regime would also be impractical, he said, adding that frozen butter was currently used quite legitimately to balance fresh butter supplies. It would hit imports too as these were transported frozen.
Arla, which imports frozen New Zealand butter for its Anchor brand, said it was standard practice to use frozen butter to manage cream supply and demand.
"The European Dairy Association is lobbying the European Parliament on behalf of the industry, which opposes the proposal because freezing butter does not affect the quality," she added.
Dairy UK, which is lobbying for the reference to be removed, said it was concerned suppliers would interpret the regulations differently. Defra added that it was looking into the impact of certain technical aspects of the proposal, which is due for its Second Reading in the summer.
Eurolait said it intended to convince the EU institutions of the negative impact the proposed amendment would have.
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