The federal government will provide financial backing to Australian honey growers as they defend the use of the term Manuka honey.
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A cohort of New Zealand Manuka honey producers have in recent years attempting to trademark the phrase so that it can be only be used by NZ producers.
The Manuka Honey Appellation Society has been driving the trademarking attempts but Australian Manuka honey growers are fighting back.
The Australian Manuka Honey Association has revealed that the Attorney-General's office has offered up "a significant grant" on the back of the court battles.
In recent weeks the UK Intellectual Property Office rejected an application by New Zealand producers to trademark the words Manuka honey but the MHAS is appealing the decision.
Significantly, the recent decision had the first time that the AMHA had opposed the trademarking bids in a legal situation.
Manuka honey is produced by bees foraging on the manuka tree, which grows naturally in both Australia and New Zealand, and is highly prized for its scientifically proven antibacterial properties.
AMHA chairman Paul Callander said the government grant would help equip the organisation to fight against attempts to monopolise the term Manuka honey.
"Importantly, it is also evidence that the Australian government recognises the value of the domestic industry and is willing to back us against these attempts," he said.
"Not everybody in the New Zealand industry agrees with what this group are doing either."
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Mr Callander said AMHA was confident they could successfully fight against further proceedings.
"The UK decision was significant in that it recognised that Manuka is a descriptive term for honey," he said.
"It is rightfully used by Australian Manuka honey growers as well as New Zealand growers."
Mr Callander, who is the managing director of Western Australian company ManukaLife, said the Australian Manuka honey industry was highly valuable.
"The most incredible thing about Manuka honey is the science behind it," he said.
"Manuka is an Australian native plant and the term manuka honey has long been used in Australia."
"This financial support not only increases our capability to defend our industry, it also increases our resolve to do so."