OIA131 Appendix Two.pdf

From:
Clayton Cosgrove
To:
s9(2)(a)
Cc:
s9(2)(a)
Subject:
Meeting confirmation - Yohan Senaratne Managing Director – International A2 Milk and Minister Hoggard 22
July 3.30pm Parliament
Date:
Tuesday, 9 July 2024 1:29:35 PM
Hi s9(2)
Thank you for your assistance with the above meeting request.
(a)
I can confirm that Yohan
Senaratne Managing Director – International A2 Milk and I will attend the meeting with
Minister Hoggard on 22 July 3.30pm at Parliament. I have sent s9(2)(a)
(copied in)
some material which outlines the discussion points in respect of FSANZ’s proposed
changes to the Infant Formula standard (P1028).

Thank you again for your assistance and please feel free to contact me directly if you
require further information.
Kind regards
Clayton

Clayton Cosgrove
Director
Cosgrove & Partners Ltd
Tel: s9(2)(a)
Email: s9(2)(a)
Website: www.cosgroveandpartners.com

CONFIDENTIALITY NOTICE: The information in this document and attachments is
confidential and may also be legal y privileged. It is intended only for the use of the
named recipient. If you are not the intended recipient, please notify us immediately and
then delete this document.
Thank you.

under the Official Information Act 1982
Released

under the Official Information Act 1982
Released

some material which outlines the discussion points in respect of FSANZ’s proposed
changes to the Infant Formula standard (P1028).

Thank you again for your assistance and please feel free to contact me directly if you
require further information.
Kind regards
Clayton

Clayton Cosgrove
Director
Cosgrove & Partners Ltd
s9(2)(a)
s9(2)(a)
Website: www.cosgroveandpartners.com

CONFIDENTIALITY NOTICE: The information in this document and attachments is
confidential and may also be legally privileged. It is intended only for the use of the
named recipient. If you are not the intended recipient, please notify us immediately and
then delete this document.
Thank you.

under the Official Information Act 1982
Released

under the Official Information Act 1982
Released

New Zealand opts out of joint standard

New Zealand will opt out of the Australia New Zealand joint infant formula
standard, Food Safety Minister Andrew Hoggard says.

“After discussion with Cabinet, Cabinet has decided not to adopt the Australia
New Zealand joint infant formula standard.

“New Zealand sought a review of the new labelling requirements, but my
Australian colleagues were not in a position to support it. As a result, we will now
implement a New Zealand standard over the next five years.

“So long as infant formula is safe and the claims on labels are not misleading,
consumers should be allowed to make their own informed choices.

“We were only wanting modifications to two parts of the standard that relate to
restrictions on labelling and do not suit the New Zealand context. The vast
majority of the standard is good and supported by industry.

“The Government remains committed to the continued success of the Joint Food
System and working towards food standards harmonisation.”

ENDS

Media contact: Rebecca Flannery +64 27 345 4443

under the Official Information Act 1982
Released

From:
Clayton Cosgrove
To:
s9(2)(a)
Subject:
FW: Request for review of regulatory changes proposed under Proposal P1028 – Infant Formula
Date:
Monday, 8 July 2024 12:39:45 PM
Attachments:
image001.png
image002.png
image003.jpg
image004.jpg
image005.jpg
Hi s9(2
Thank you for taking my call today. As discussed, please see the email below. As agreed, I
)(a)
will give you a call this afternoon with the feedback you requested.
Many thanks for your time and assistance.

Kind regards
Clayton

Clayton Cosgrove
Director
Cosgrove & Partners Ltd
Tel: s9(2)(a)
Email: s9(2)(a)
Website: www.cosgroveandpartners.com

CONFIDENTIALITY NOTICE: The information in this document and attachments is
confidential and may also be legally privileged It is intended only for the use of the
named recipient. If you are not the intended recipient, please notify us immediately and
then delete this document.
Thank you.

From: Yohan Senaratne s9(2)(a)

Sent: Friday, July 5, 2024 3:01 PM
To: Clayton Cosgrove s9(2)(a)
Cc: David Borto ussi s9(2)(a)
under the Official Information Act 1982
Subject: Request for review of regulatory changes proposed under Proposal P1028 – Infant
Formula

Hi Clayton,

I wanted to raise an urgent concern we have regarding FSANZ’s proposed changes to the
Infant Formula (P1028).
Released

Context on P1028:
FSANZ has been engaging on amendments to the Infant Formula regulations in the
Food Standards Code through a submissions process since 2022.
During this period, a2MC has been actively working with FSANZ via the submissions

process. We have also met with FSANZ to discuss our concerns directly.
In June, FSANZ Board approved draft variations to the Code.
The amendments are now being considered by Australian and New Zealand food
ministers, with a final decision anticipated by late August 2024.
The variations will be gazetted if Food Ministers do not request a review.

Context on Infant Formula Industry in New Zealand and The a2 Milk Company:
Infant Formula exports is a multi Billion-dollar sector for New Zealand
The a2 Milk Company is a key component of this accounting for a substantial
proportion of New Zealand exports
Founded in New Zealand, The a2 Milk Company was the pioneer of A1-Protein
Free milk
The a2 Milk Company is a Top-5 brand in the China Infant Formula Market and
is listed on the NZX with a market capitalization of ~$5bn
All Infant Formula by The a2 Milk Company is made in New Zealand by Synlait,
Mataura Valley Milk and Yashili NZ with exclusively New Zealand Milk
The a2 Milk Company’s Infant Formula Revenue from New Zealand Milk
totaled s9(2)(b)(ii)  in FY23
The key market for New Zealand Infant Formula exports is China - the world’s largest
infant formula market
Product made in New Zealand under the Food Standards Code competes in
the China Cross Border E-Commerce (CBEC) Market
In the CBEC Market, Food Standard Code regulated product competes with
product made in Europe to European regulations

Our concerns with P1028:
The amendments to the Code are extensive but our key concerns relate to two
issues:
111 Protein source:  The draft Code requires that the primary protein source be
stated in a prescribed fashion (e.g. cows milk, goat milk, soy).  This does not
permit reference to protein fractions inherently present in milk.  Accordingly,
under the Official Information Act 1982
a2MC would not be able to differentiate its protein source from conventional
milk based formulas.
111 Ingredients:  While nutrition content claims have been prohibited on infant
formula and follow-on formula for many years, the draft Code also prohibits
claims/information about ingredients.
s9(2)(ba)(i)
Released

s9(2)(ba)(i)
We do not consider there to be a sufficient public health benefit (if any) of making
these amendments that warrants the potential adverse trade and economic impact
of doing so

Our request:
We would like the food ministers to request a review of some of the changes
proposed under P1028 by FSANZ
We would be grateful if Minister McClay and Minister Hoggard are free to meet so we
can share our concerns and answer any questions in person

For further context, attached is the letter sent to Minister Hoggard this week detailing our
concerns.

Kind Regards,
Yohan

Yohan Senaratne
Managing Director – International
s9(2)(a)

a2milk.com.au

The a2 Milk Company acknowledges the Traditional Owners of the land on which we live and work, and
recognises their continuing connection to lands, waters and communities. We pay our respect to Elders
past and present

under the Official Information Act 1982
This email and any accompanying attachment(s) are confidential and may contain
information that is privileged. If this email is not intended for you or you have
otherwise received the email in error, you must not use, read, forward, print,
distribute or copy the email and/or attached file(s). Please contact the sender
immediately and permanently delete the original email and any attachments. This
communication should not be copied or disseminated without permission. If you
respond to this email, you agree it is not received by The a2 Milk Company until the
Released
email comes to the attention of the addressee. Please consider the environment
before printing this email

under the Official Information Act 1982
Released

s9(2)(b)(ii)
under the Official Information Act 1982
Released
3

NZ Food Treaty – context
• The Agreement between the Government of Australia and the Government of New Zealand concerning a joint food standards system (Food Treaty) sets out the principles underpinning
the Australia New Zealand Food Standards Code (Code) and the processes through which the Code can be amended or reviewed from time to time.
• While the objective of the parties in forming the Code is for the same food standards to apply in both Australia and New Zealand wherever possible, there are certain circumstances
where the New Zealand Minister may elect a different position to apply in New Zealand compared to Australia (see Annexure D). This will apply where the New Zealand Minister
considers that a proposed food standard would be inappropriate for New Zealand on the basis of one or more prescribed grounds, being exceptional health, safety, third country trade,
environmental, and/or cultural grounds.
• Where those prescribed grounds exist, the Food Treaty sets out three possible “variation” options which the New Zealand Minister may elect, depending on the circumstances. These
are:
1.
Modifying the relevant food standard;
2.
Developing a separate food standard which will apply in place of the relevant food standard;
3.
Opting out of the relevant food standard.
• Options 1 and 2 will only be available if the relevant food standard is still under development by FSANZ (i.e. prior to FSANZ approving the food standard). Where the relevant food
standard has already been approved by FSANZ (which is the case in relation to P1028), then the Food Treaty only allows for the New Zealand Minister to elect Option 3, namely opting
out of the relevant food standard.
• To make an election under Option 3, the New Zealand Minister should, in a timely manner, inform the Council that New Zealand needs to opt out of the food standard. This will
involve:
• Informing the Council of the prescribed grounds for the opt out (e.g. unacceptable risks to third country trade); and
under the Official Information Act 1982
• Providing a note detailing those prescribed grounds and the reasons why the proposed standard is inappropriate for New Zealand. This note will also need to explain why a modification or separate standard would not
be adequate to deal with the exceptional circumstance (i.e. because the relevant standard has already been approved by FSANZ).
• Once the New Zealand Minister has made an election under Option 3, then the relevant food standard will be applicable only in Australia. The Code will include an annotation
indicating that the food standard does not apply in New Zealand.
Released
4

under the Official Information Act 1982
Released

Objectives for today
• Share our concerns regarding P1028
• Discuss ways to achieve the overall intent of P1028 whilst also addressing our concerns
under the Official Information Act 1982
Released
2

under the Official Information Act 1982
Released

We are aligned to the vast majority of changes recommended in P1028.
But have deep concerns regarding the impact of three specific elements
Protein source statement
1
Prohibited representations – ingredients
2
Trade Marks
3
(Section 4.15 of the Approval Report)
(Section 4.19 of the Approval Report)
Summary of
• The specific protein source (e.g., cow’s
• Packaging must not contain information
• Although FSANZ explicitly stated that trade
Proposed
milk) must be included in the statement of
relating ingredients, except for use of the
marks fall outside the scope of P1028 in
Changes in
protein source and statement of the name
word “milk”, a reference in a statement of
consultation documents, the enforcement
P1028
of the food on the front of the package.
ingredients or a reference in a declaration
and interpretation of these regulations
• Other references to the protein source are
or statement expressly permitted or
rest with individual jurisdictions as FSANZ
prohibited elsewhere on the label.
required by the Code.
is not the enforcement agency in respect
of breaches of the Code.
Challenges
• The specific protein source does not
• The provision of information related to A1
• s9(2)(b)(ii)

include protein fractions.
and A2-type beta casein is not permitted

• The prohibition on references to protein
in the nutrition information statement

sources elsewhere on the label except in
(NIS) or elsewhere on packaging.

the statement of ingredients prevents
•s9(2)(b)(ii)

reference to protein fractions inherently

present in the milk source.

• Protein sources that are inherently

under the Official Information Act 1982
present or absent in the milk source

are not ingredients so cannot go in the

ingredients list.

Released
4

under the Official Information Act 1982
Released

Ways to achieve the overall intent of P1028 whilst also addressing concerns
a2MC View
•
We are aligned to the vast majority of changes recommended in P1028
of Proposed
•
Our concerns are specific to Sections 4.15 and 4.19 of the Approval Report
Changes in
P1028
Requested
•
The Minster seek to have Food Ministers request a review of the aspects of P1028 relating
action
to Sections 4.15 and 4.19 by FSANZ; or
•
If a majority of Food Ministers will not agree to a review of those aspects of P1028, notify
the Ministers that aspects of P1028 are inappropriate for New Zealand on the basis of the
exceptional circumstances to New Zealand as set out in Annex D of the
Food Treaty (exceptional circumstances includes third country trade), requiring the Ministers
to request a review.
•
If a review is requested on the basis of exceptional circumstances, we request that the
Minister engage with FSANZ on whether a New Zealand specific amendment sh
under the Official Information Act 1982 ould be
proposed or whether New Zealand should opt out of aspects of P1028
Released
12

under the Official Information Act 1982
Released

The a2 Milk® difference goes beyond the selection of a cow
under the Official Information Act 1982
Released
3

under the Official Information Act 1982
Released

We continue to invest in further understanding the a2 Milk® difference
under the Official Information Act 1982
Released
5

From:
s9(2)(a)
To:
s9(2)(a)
Subject:
Fwd: Danone and FSANZ P1028 regulations
Date:
Sunday, 19 May 2024 9:50:57 AM
Attachments:
image001.jpg
Briefing from Danone NZ.pdf
316. Hon Hoggard followup letter.pdf
Hi s9(2)(a)  are you able to organise for Andrew to meet with Danone about this “plain
packaging” of infant formula issue? Alternatively, meeting with you would suffice
From: Nick Gowland s9(2)(a)
Sent: Thursday, May 16, 2024 2:43 PM
To: s9(2)(a)
Subject: Danone and FSANZ P1028 regulations

Hi s9(2)(a)

Thanks for your time on Tuesday.  Just following up on that issue I flagged on behalf of my client
re: FSANZ regulations for infant formula.  For your background, have attached their BIM and
follow-up letter to Minister Hoggard.

They are very keen to meet with the Minister at his convenience.  They’re concerned that the
FSANZ regulations won’t be sufficiently modified for continued operation in NZ.

Danone are also of the view that remedying MPIs export exemption process won’t be sufficient.

Without modification, Danone global may well decide to move its NZ operation to one of its
other international sites to manufacture and export formula. A $1 billion export industry is at
stake.

The Australian Minister of Health’s office is apparently unaware of the consequences to New
Zealand with these regulations.  It was communicated to me by someone connected with his
office, that NZ Min sters should make the case more forcefully with their Australian
counterparts.

under the Official Information Act 1982
In fairness  Danone haven’t been engaging with Minister Hoggard’s office anywhere near enough
on this.  But they’ve asked me to act on their behalf and keep you updated so Ministers fully
understand the likely consequences.

Would it be possible to help a meeting with my client?  Alternatively, I’m happy to meet
Ministers’ staff to properly brief on the issues.

Thanks
Released

Nick

under the Official Information Act 1982
Released

From:
Nick Gowland
To:
s9(2)(a)
Cc:
Jonathan Chew
Subject:
Introductions
Date:
Friday, 14 June 2024 9:51:10 AM
Attachments:
image001.jpg
Hi s9(2)
(a)

It was nice to catch up with you. As promised, introducing you to Jonathan Chew – CEO of the
Infant Nutrition Council.

He is very happy to speak with you. His mobile is s9(2)(a)

I’ll leave with the two of you to take things from here.

Cheers

Nick

Nick Gowland
Director
s9(2)(a)
PO Box 25-529, Wellington 6416

LinkedIN | Blog

under the Official Information Act 1982
Released