New Zealand dairy giant Fonterra has acknowledged that its use of the “grass-fed” label may have been misleading to consumers, raising fresh concerns over product transparency and labeling standards in the food industry. The issue has drawn attention to how such claims are defined and understood in global markets.

The company admitted that the label could create confusion about how its dairy products are produced, according to Reuters, particularly regarding the proportion of grass in cows’ diets and variations in farming practices.

Fonterra stated that while its production systems rely heavily on pasture-based feeding, not all conditions align with what some consumers might expect from a strictly defined “grass-fed” standard. Differences in seasonal feeding and supplementary inputs may influence interpretation of the claim.

The case highlights broader challenges faced by the dairy industry, where labeling terms often lack consistent definitions across regions. Consumer advocacy groups have increasingly called for clearer guidelines to prevent misunderstandings and ensure informed purchasing decisions.

Fonterra indicated it is reviewing its labeling practices and considering adjustments to improve clarity. The development underscores growing scrutiny of sustainability and marketing claims as consumers demand greater accountability from food producers.