The sabotage spread to South Australia at the weekend, with a needle found in a punnet of Mal's Black Label strawberries on Sunday.
Australian authorities have arrested a young boy after he admitted he put needles in strawberries as a "prank".
Six brands of strawberry supplier are believed to have been affected and their produce since recalled.
A Queensland man posted this photo of a strawberry with a needle in it after reporting his friend swallowed one.
But Dutton said he believed numerous 100 separate reports were hoaxes or copycats, and he was angry about the diversion of police resources to the matter.
It comes as New Zealand food distributors removed Australian strawberries from their shelves as a precaution, further adding to the devastation caused by the unidentified culprit.
"If they do have any strawberries it would be safest to dispose of them", Young said in a press conference.
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Some trade partners in Russian Federation and the United Kingdom have already blocked Australian imports, while New Zealand supermarket chains have announced they would pull Australian-grown berries from their shelves.
Needles have been found in more than 20 punnets of strawberries across NSW in the past week after the fruit was first sabotaged in Queensland.
Australia strawberry scare as hidden sewing needles found in fruit across the country
"The sabotage of our strawberry industry is not just an attack on hard-working growers and workers, but it reaches into nearly every home and school lunch box", she told Parliament.
"Someone is trying to sabotage the industry but also in doing that, they are putting babies' and children's and families' lives at risk", said Queensland premier Annastacia Palaszczuk.
This morning, former Deputy Prime Minister Barnaby Joyce called for a substantial reward to hunt down those behind the strawberry needle contamination crisis.
The Queensland Strawberry Growers Association suspects a disgruntled ex-employee may be responsible for placing sewing needles into strawberries sold in Woolworths.
"I'm angry for all the associated people - it's the farmers, the people who supply them, the packaging people, the truckies - with families to support, who suddenly lose their jobs", Adrian Schultz, vice president of the Queensland Strawberry Growers Association, told ABC.
"I don't care if you've got a gripe with a company, I don't care whether you've got a gripe with your fellow worker, this is a very serious thing", he said.
He said police were still interviewing the people involved.
In Queensland, struggling growers have been boosted by the announcement of a $1 million fund to help them through the crisis.
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