The dairy industry urges FDA action against "dairy-free butter" labeling, citing federal standard violations & consumer confusion.
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Federal Standards Violated? Creamery Giants Demand FDA Crackdown.

The dairy industry is mounting a strong pushback against the use of traditional dairy terms, specifically “butter,” on plant-based alternatives. The American Butter Institute (ABI) has formally urged the U.S. Food and Drug Administration (FDA) to take decisive action against products like Country Crock’s “dairy-free butter,” arguing that such labeling is misleading to consumers and directly violates federal standards defining butter as a product made exclusively from milk or cream. This move intensifies the ongoing “butter battle” in the agribusiness sector.

Christopher Galen, executive director of the ABI and senior vice president for the National Milk Producers Federation, contends that plant-based manufacturers are attempting to “leverage the premium perception of real dairy butter” at a time when sales of traditional margarine and other vegetable oil spreads are declining. He asserts that calling an “ultra-processed seed oil concoction” (like Country Crock’s product, which is 79% plant-based oil spread) “butter” is a “total oxymoron” and undermines the integrity of food labeling.

The core of the dairy industry’s argument rests on the federal standard of identity, which legally defines butter as a milk-derived product. ABI emphasizes that manufacturers of traditional butter are required to adhere to these stringent federal labeling standards. They argue that allowing “fake butters” to use the term not only breaches these rules but also confuses shoppers, eroding confidence in what they are purchasing within the dairy products market.

This current contention echoes a similar objection raised by the National Milk Producers Federation in 2019 regarding Country Crock’s use of “plant-based butter” in its marketing. The dairy industry‘s consistent stance is that if a product is not made from milk, it should not be permitted to use dairy-specific terminology. This ongoing debate reflects a broader industry-wide push for stricter enforcement of labeling laws for plant-based alternatives to milk, cheese, and other dairy foods.

The outcome of this complaint to the FDA could significantly influence the competitive landscape of both dairy and non-dairy markets. The dairy industry is hopeful for sympathetic consideration, particularly within a climate that emphasizes “real foods” and “whole foods,” contrasting with ultra-processed alternatives. This legal and marketing skirmish highlights the intensifying competition and regulatory challenges facing both traditional dairy producers and innovative plant-based manufacturers in the evolving food industry.

Source: 953 MNC: Dairy industry pushing back against dairy-free butter

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