This paper presents the results of a choice experiment that encompassed the labelling options outlined in the Australian and New Zealand government's recently finalized mandatory labelling system for genetically modified foods (GMF's) and foods that contain genetically modified ingredients. The labelling scheme is to be implemented across both countries from December 2001 onwards. Results suggest difficulties ahead for manufacturers and growers of GM labelled product if there is an ample supply of GM-free labelled alternatives. It is also likely that manufacturers and growers of GM-free product will realize greater levels of demand over non-labelled and GM product even when these alternatives are substantially cheaper.