Despite the substantial domestic investment, the new plant has drawn swift criticism from key industry lobby groups, including the presidents of Australian Dairy Farmers and United Dairyfarmers of Victoria. Their main concern centers on the facility’s potential role in processing imported cheese, which could then be labeled as “Made in Australia from imported ingredients.” These farm leaders fear that the capacity to finalize manufacturing of cheaper New Zealand or American cheese indirectly harms local dairy producer profitability and contributed to recent factory closures, such as Bega’s Strathmerton facility.

Pure Dairy’s Executive Chairman, Adrian Josephson, countered the criticism by emphasizing the company’s current reliance on local supply. He stated that approximately 90% of the dairy produce currently processed at the Dandenong site is sourced from Australia. However, Josephson was quick to clarify that this domestic/import ratio is inherently fluid, being subject to global dairy economics and seasonal factors, citing price pressure from competitors selling cheaper cheese on the Global Dairy Trade (GDT).

Addressing the specific labeling controversy, Josephson affirmed that Australia already possesses strict food labelling laws designed to ensure consumer awareness regarding the country-of-origin for all dairy products. Furthermore, he noted that the vast majority of the new site’s output—roughly 95%—is channeled into the hospitality sector (fast food and restaurants), reflecting Pure Dairy’s historical focus on food service over retail.