Australia's largest producer of small goods has been slapped with a record fine for labelling 100 tonnes of bacon from overseas as "Product of Australia".

Primo SmallGoods meat processing plant in Chullora, in Sydney's west, is the largest of its kind in the southern hemisphere.

Its abattoir in Port Wakefield, South Australia processes more than 10,000 pigs a week for domestic and overseas markets.

A magistrate in Sydney's Downing Centre Court today handed down a fine of $237,575 to Primo plus $200,000 in costs for mislabelling Danish and Canadian bacon products as Australian.

NSW Primary Industries Minister Steve Whan said irrespective of the origin of the meat consumers should get what they pay for.