The Provision Trade Federation has warned members the EU is preparing to ban the use of the term bio' and eco' on non-organic produce from July 2006.
Director general Clare Cheney said the move to restrict the use of the term bio' to describe organic produce would mean some standard live yogurts would have to be relaunched at great expense, and consumers would be confused.
The terms bio' are eco' are used as shorthand for organics on the continent, but in the UK bio' is used by suppliers to refer to a live yogurt culture, and eco for ecologically friendly, rather than organic.
Cheney said: "It is annoying we are not allowed to use language well understood in the UK It is not just a nuisance, but a matter of principle too."
Consumers might think a favourite product had been discontinued if bio' was banned, she added.
DEFRA has already opposed the amendment to EC Regulation 2092/91, but with Spain the only other member state in opposition, it is still likely to be passed.
A spokeswoman for yogurt brand Onken said: "We are hoping we will be allowed to continue to use our Biopot and BioWild brands as they are trademarked. If we had to change our packaging and names it would be expensive."
Detergent brands would also be affected by the ban.
Infinity Foods, which distributes Ecover products in the UK, said it could have big implications for the brand.