New Food Act is tough on firms

On March 1 2016, the new Food Act 2014 came into force. All new food businesses established after this date must follow the new rules.

Existing businesses will be given time to change over to the new rules during a three-year transition period between March 1 2016 and February 28 2019.

The new rules are designed to recognise each food business is different. They step away from the previous one-size-fits-all approach to food safety.

However, has this reform gone too far by imposing compliance costs that impose a large burden on some of our smaller food suppliers, such as market stall vendors?

The Food Act recognises that food suppliers such as market stall vendors are lower risk, but they are nevertheless required to operate under a national programme tier, at level 1, 2, or 3, depending on the type of food they sell, and the associated risk

So what do these businesses have to do to comply?

Firstly, growers who sell their own fruit and vegetables at market stalls and fundraising stalls, such as those at school fairs, are exempt and do not have to comply.

However, other stall holders like those selling fruit drinks, jams or pickles, or baked food, such as cakes and biscuits, will be required to comply with the applicable national programme.

Compliance with the national programme tiers requires registration with the local authority and, at least, an initial audit of processes to ensure that they are safe, with the requirement to have follow up checks every two to three years.

Compliance with a national programme will require meeting prescribed standards covering everything from cleaning and waste management and disposal to equipment standards and hygiene. While food safety is important, registration and ongoing verification come at a cost that is prohibitive to most small scale and hobby level sellers. A balance must be struck. Many producers in the dairy, horticulture and agriculture industries are looking to diversify and are looking for new ways to supplement their business income. This might be by selling their produce on a smaller scale to local markets and is to be encouraged.

However, food safety regulation for these fledging businesses creates another level of compliance.

For some, the cost of compliance is prohibitive and the benefits to the local economy that flow from supplying and supporting local produce are then compromised.

❚ Lawyers and legal executives from Auld Brewer Mazengarb & McEwen write about legal topics affecting farmers. The content of this article is necessarily general and readers should seek specific advice and not rely solely on what is written here. Those who would like further information on any of the topics, please contact Auld Brewer Mazengarb & McEwen. This column was prepared by Phil McCarthy here who can be contacted by emailing Philip.McCarthy@abmm.co.nz