Baked Goods Manufacturing Business Guide
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All 17 Documented Cases
Allergen Mislabelling & Non-Compliance Penalties
Estimated AUD 15,000–50,000 annually per business (penalty range + recall costs + lost sales during suspension)Allergen declaration failures violate mandatory labelling requirements. Baked goods with undeclared or incorrectly labelled allergens (e.g., egg, milk, tree nuts) trigger FSANZ enforcement action, product recalls, license suspension, and fines. NSW Food Regulation 2025 introduces 'Increased fees and penalties' and prohibition orders with resumption fees.
Allergen Incident Recalls & Customer Compensation Claims
AUD $20,000–$500,000 per recall event (destroyed inventory: 30–80% of batch value; customer compensation: AUD $5–$100+ per consumer claim; legal defense: AUD $10,000–$100,000+)Allergen cross-contamination causes product recalls, triggering direct costs (destroyed stock, logistics, customer refunds) and indirect costs (reputation damage, loss of retail shelf space, legal liability). ACL and product liability insurance gaps expose manufacturers to uninsured losses.
Dedicated Allergen Prevention Infrastructure & Compliance Systems
AUD $30,000–$150,000 annually (equipment lease/depreciation: AUD $10,000–$50,000; cleaning/testing supplies: AUD $5,000–$20,000; staff training: AUD $5,000–$15,000; compliance consulting/audits: AUD $10,000–$40,000)Allergen prevention infrastructure includes: dedicated allergen-free production zones/equipment, enhanced cleaning protocols (validated procedures + verification testing), staff training and certification, third-party allergen testing, and compliance documentation systems. These are non-revenue-generating investments mandated by food safety standards.
Allergen Labelling Non-Compliance Fines and Product Destruction
AUD $500–$5,000 per non-compliant batch (relabelling costs, reprinting, labour); AUD $10,000–$50,000+ for full batch destruction; compliance verification: 20–40 hours/month manual label auditingUnder Food Standards Code Standard 1.2.3 and Schedule 9-3, all food labels must declare allergens in plain English, bold font, in a specific format and location[1]. Non-compliance triggers product seizure, destruction, or costly re-export[1]. The two-year transition period ends 25 February 2026, after which all stock must comply[1]. Baked goods commonly contain multiple allergens (milk, eggs, wheat, nuts, sesame), increasing labelling complexity and error risk.