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USAID's Office of Food for Peace (FFP) will consider proposals for monetization
of Non-Fat Dry Milk (NFDM) under the following conditions:
The Cooperating Sponsor (CS) will provide FFP a written policy for
the monetization of NFDM. This policy must comply with the International
Code of Marketing of Breastmilk Substitutes and all subsequent relevant World
Health Assembly (WHA) resolutions pertinent to the sale or distribution of
breastmilk substitutes. CS will include a statement under "special provisions"
which states, "it is the intention of the U.S. Government that the NFDM commodities
provided herein are not to be used as breastmilk substitutes, nor in their
production or manufacture." Preference will be given to countries that have current laws or policies
implementing the International Code of Marketing Breastmilk Substitutes. NFDM may be sold for industrial use as an ingredient in processed
foods baked goods, yogurt, etc. NFDM must not substitute for breastmilk or
be used for products represented or locally perceived as breastmilk substitutes.
It must not be sold for direct market distribution, for example, in small
tender sales, and should not be sold directly to the consumer. CS will not sell NFDM to known manufacturers or marketers of breastmilk
substitutes or replacement foods with breastmilk substitute production facilities
in the program country. The sales contract will have a written commitment
from the buyer that the product will not be sold or freely distributed as
a breastmilk substitute, nor used to manufacture breastmilk substitutes and
that the sellers name or the name or logo of USAID will not be used in marketing,
advertising, product promotion or any implied relationship to any of the
manufacture's products. Further, CS shall make it clear to the buyer that
failure to comply with this clause will constitute a material breach of the
contract. CS will submit to FFP, as part of the proposal, a plan to monitor
for a reasonable period of time the end-use of the product. Information should
include sensitivity to problems in countries with high lactose intolerance,
proper storage and handling, and possible leakage from the buyer to the general
market. This monitoring plan must be in place prior to the arrival of the
commodity in the country. The buyer agrees in writing that the uses of NFDM will be accessible
for monitoring by USAID personnel to ensure that the use of NFDM adheres
to the above policy and does not violate the International Code of Marketing
of Breastmilk Substitutes. NFDM commodities for monetization must be labeled, "Not for
feeding children under one year of age." If repackaged for any reason, any
such package should also be so labeled. To ensure market parity, all Title II and FFP policies and regulations,
including cost-recovery, Bellmon and Usual Marketing Requirement (UMR) considerations
shall apply. The Director of the Office of Food for Peace must approve in writing any exceptions to the above policy.
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