CHINA'S melamine poisoning crisis, blamed for the deaths of four babies and illness in 54,000 others, has highlighted Australia's lax food labelling laws, Greens MLC John Kaye says.

Mr Kaye said Australians' health was potentially at risk because country-of-origin food labelling regulations allowed the real sources of ingredients to be hidden.

Existing standards meant foods labelled "Made in Australia" could mostly consist of overseas-sourced ingredients, he said.

"Food products can contain ingredients from countries with lower food safety standards and still be labelled as 'Made in Australia'," he said. "In a globalised food industry the country of origin of all ingredients needs to be clearly labelled."

Last week Food Standards Australia said it was taking seriously reports that fruit and vegetables grown in China and exported to Australia could be contaminated with melamine.

"At this stage we can find no evidence that fruit and vegetable imports are unsafe but it's certainly something we're looking at," a spokesman said.

Primary Industries Minister Ian Macdonald said labelling laws were adequate and breaches could attract fines of up to $275,000.