A. The statement 'May contain traces of ..." is put onto food labels when manufacturers believe that the food is at risk of contamination from a problem ingredient such as peanuts or fish (called an allergen). This usually arises when nut-free biscuits, say, are baked on the same line as biscuits that have nuts.
Despite their best efforts to clean the production line, you can never rule out the chance that a small piece of nut from one batch may accidentally get into another batch or dough.
The real risk of contamination will vary depending upon the manufacturer's reason for using the statement and is very difficult to interpret as a consumer.
Allergy specialists and organisations like Anaphylaxis Australia recommend you always heed the warning statements on these products. This is especially so if you or your child are at risk of a life-threatening allergic reaction. If in doubt about a product, always call the Customer Care centre of the manufacturers.