USAID's Office of Food for Peace (FFP) will consider proposals for monetization of Non-Fat Dry Milk (NFDM) under the following conditions:

1. 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."

2. Preference will be given to countries that have current laws or policies implementing the International Code of Marketing Breastmilk Substitutes.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. To ensure market parity, all Title II and FFP policies and regulations, including cost-recovery, Bellmon and Usual Marketing Requirement (UMR) considerations shall apply.

9. The Director of the Office of Food for Peace must approve in writing any exceptions to the above policy.