Australia’s dairy industry calls for stronger labelling laws after UK Court bans oat milk company from using word ‘milk’Emma KirkNewsWireMon, 2 March 2026 2:55PM
Australia’s dairy industry is calling for stronger labelling laws following a court ruling that banned an oat drink company from using the word “milk” to describe its products in the UK.
Last month, a UK Supreme Court ruled Swedish-based drink manufacturer Oatly could no longer use the term “milk” on its products or in advertising.
In the UK, EU and US, dairy terms such as milk, yoghurt and butter are legally reserved for animal-derived products.
Terms such as “milk” cannot be used on labelling to describe non-dairy products unless it describes a feature, that a drink is milk-free.
Australian Dairy Farmers (ADF) wants enforceable rules to ban the use of dairy terms to describe plant-based products in Australia.
The industry body argues the misuse of dairy terms misleads consumers about the nature of a product, and are often used on plant-based products that “try to imitate dairy staples.”
ADF president Ben Bennet said a federal government decision to allow a voluntary approach to plant-based labelling, rather than a separation in law was “increasingly out of touch with global standards.”
“It’s about honesty,” he said.
“Words matter. When consumers pick up a product labelled ‘milk’, it should come from a cow – not a marketing department.
“Consumers should have the confidence that what they are buying is a dairy product with the natural nutritional profile that comes with dairy, not be misled by artificial alternative products suggesting they have the same nutritional benefit.
“This is why the rest of the world protects dairy words, because they mean something.
“Here in Australia, we’re allowing these products that are engineered through additives and fortification to imply they offer the same benefits as dairy products.”
In January, Minister for Agriculture, Fisheries and Forestry, Julie Collins announced the government would strengthen existing voluntary labelling guidelines through an Industry Code of Practice led by the Alternative Proteins Council.
The announcement followed a $1.5m government funded review by the by Food Standards Australia New Zealand (FSANZ) that found consumers could accurately identify plant-based products.
The research identified consumers were more likely to be confused when animal imagery was used.
Ms Collins said the Code of Practice would ensure products were readily identifiable by Australian consumers
“Australian consumers should be able to clearly identify both traditional and alternative protein sources,” she said.
“That’s why the development of an industry Code of Practice will improve existing voluntary labelling guidelines, and ensure produce is readily identifiable for Australian consumers.”
But ADF dispute the findings, saying it failed to test whether consumers understood the nutritional differences between dairy and “highly engineered plant-based imitations.”
“You cannot ask an industry that profits from using dairy language to write the rules about how dairy language should be used – they are clearly conflicted,” Mr Bennett said.
“We’re calling for clear, mandatory rules so that dairy terms are reserved for dairy.
“The world recognises that dairy words have meaning. Australia should too.”
Nutritionist Courtney Steward told NewsWire research conducted by Food Standards Australia New Zealand indicated that consumer confusion was more associated with animal imagery rather than with dairy terminology.
“If the forthcoming industry code of practice adequately addresses presentation and imagery concerns – and the sector adheres to it – further enforcement action is less likely,” she said.
The Alternative Proteins Council has been contacted for comment.
Originally published as Australia’s dairy industry calls for stronger labelling laws after UK Court bans oat milk company from using word ‘milk’
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