A reckless Greens proposal would result in Cadbury, Anvers, Darrell Lea and Haigh's being unable to label their products as Australian made.
Senator for Tasmania Richard Colbeck said the country of origin labelling proposal, as outlined by Greens leader Christine Milne, would make it impossible for these Australian manufacturers to proudly display the locally made tag.
"No one in their right minds would try to tell us that these are not Australian made products," Senator Colbeck said.
"They use Australian milk, sugar and many other ingredients. Importantly, they employ hundreds of Australians.
"It is populist, knee-jerk policy which hasn't been properly thought through. Like many of their ideas, it would cause considerable damage once brought into the real world.
"Under the Greens proposal, only products with 90% of their dry weight from products coming from Australia could claim the 'Made in Australia' status."
The principle ingredient in chocolate is cocoa, which is not grown in Australia in quantities which could satisfy industry demand.
"It shows contempt for the contribution of national firms, such as Cadbury, which employs 600 Tasmanians," Senator Colbeck said.
"And it leaves outstanding niche operators, such as Anvers Confectionary without an important point-of-difference against large-scale overseas competitors.
"There are far more sensible ways to approach country of origin labelling but such real-world ideas will never appeal to the Greens.
"Simplistic proposals like this one will only do more damage to Australia's manufacturing sector, which is under enough pressure without poorly thought out, populist stunts from the Greens."