Food processor Simplot Australia has rejected the Star system for labelling healthy and unhealthy food.
The Star rating is the result of two years of negotiation between the food industry, government and health sectors.
Simplot says it will cost $3 million to develop the new Star labels for its entire food range.
Terry O’Brien, managing director of Simplot and chair of the Food and Grocery Council, says the rating won’t tackle obesity and diabetes, as it’s too confusing.
“At Simplot, we’ve run our products through the suggested system and we’ve got anomalies all over the place, where things like products with no salt are not getting a better rating than the same product with salt.
“So if these sort of anomalies in our hands, then how the heck are they going to help the consumer?”
The Food and Grocery Council denies it’s reversed its position on the Star rating, saying it always said it had to be technically sound.
The rating excludes all drinks and confectionary.
The Food and Grocery Council estimates it would cost $200 million over two years to assess all the ingredients and change over to new labels