Member Alert
Peru Adopting New Standards for Use of Milk Powder
On April 7, Peru published new regulations concerning the use of milk powder in certain dairy products. Of significant concern is the new mandate that prevents Peruvian dairy processors from labeling evaporated milk manufactured with milk powder as such. All fluid products previously using the word "milk" and using milk powder as an ingredient must be now renamed under the new regulation. The exact limitations are yet to be determined or clarified.
Peru is implementing the standards under the guise of aligning with the U.S. Food and Drug Administration's (FDA) 21 Code of Federal Regulations (CFR) 131.130 which defines evaporated milk as: "the liquid food obtained by the partial elimination of water only from the milk." In reality, the new regulations are being implemented to undermine imports, not to support Peruvian consumers. Peru is a milk deficit country, where U.S. milk powder plays an important role in providing an affordable and nutritional food source to a large segment of the population.
According to the new standards, if processors choose to continue using milk powder in the manufacturing of such products, those must be called a different name that could include a ""dairy product" ("producto lacteo") or other names yet to be determined. The regulation defines a dairy product as "a product obtained through any processing of milk, which can contain food additives and other ingredients functionally necessary for processing."
Curiously, this new regulation will also suspend the microbiological specification requirements for raw milk intended for processing until December 31, 2026. This decision could result in unintended consequences for consumers by lowering the quality and perhaps even the safety of milk produced in Peru while simultaneously making milk more expensive.
Peruvian manufacturers of evaporated milk have 180 days (until October 2022) to meet the requirements of the new decree. USDEC is engaging with U.S. government agencies, Peruvian industry and Peruvian officials to design a strategy to prevent or minimize the impact on U.S. milk ingredient exports to Peru.