IDFA is calling attention this week to new policy changes and developments in China, Indonesia and Japan that could affect the ability of its member companies to export dairy products to those markets.
The Asia-Pacific region represents an important market for U.S. dairy. China is the third largest market for U.S. dairy products, where U.S. dairy companies exported more than $386 million worth of dairy products last year. Exports of U.S. dairy products to Indonesia totaled more than $158 million in sales, while U.S. dairy export sales to Japan exceeded $205 million in 2016.
China
The Chinese government last month published its new list of dairy companies it will accept as importers to the country. The list is part of a new registration procedure for U.S. food manufacturers that export milk and milk products to China, part of the Memorandum of Understanding signed by the Food and Drug Administration and the Chinese government this June.
“IDFA has heard that several companies have experienced issues with their plant and product listings. We encourage all dairy companies to review this list and make sure your establishment and list of products is accurate,” said Beth Hughes, IDFA director of international affairs. “All revisions need to be made in FDA's Dairy Listing Module before September 1 to ensure your company can properly export to China.”
The list, which will be updated quarterly by FDA, currently includes the names of nearly 300 U.S. dairy companies. FDA’s module allows U.S. processors on the list to update their information and companies not on the list to apply for inclusion.
In the June agreement, China also recognized the U.S. Department of Agriculture’s Agricultural Marketing Service (AMS) as a third-party certifier eligible to conduct verifications required for exporters of fluid milk and infant formula.
Indonesia
Two developments in Indonesia have the potential to disrupt trade and affect U.S. dairy exporters.
The Indonesian government this month announced that U.S. dairy exporters must now pay a fee as a part of Indonesia’s import approval process. The government has yet to issue guidelines for the fee, which is 15.6 million Indonesian Rupiah, or around $1170 per business.
Indonesia’s Ministry of Agriculture also issued a regulation this month that will require U.S. dairy companies to buy local milk or invest in local on-farm dairy production activities.
As a condition for obtaining approval to import dairy products, this regulation requires local milk processors to procure local milk, and dairy product importers must fund activities to promote milk consumption. The language of the regulation does not specify how much local milk processors must procure or how much they must invest to comply.
The penalty for failing to comply with this regulation includes withholding import recommendations for the company’s dairy products.
IDFA will provide support to members who export products to Indonesia and monitor the country’s regulatory activities for further updates.
Japan
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service recently released instructions to help U.S. dairy companies obtain a new certification required for exporting raw milk and milk products to Japan for human consumption.
Beginning on November 1, Japan will require U.S. exporters of a select list of raw milk and milk products to verify online the health of animals that produced the milk. Exporters will need to complete and submit a form with this information to a Veterinary Services Center near their facility to obtain the certification.
Japanese authorities have confirmed that processed dairy products do not require any government animal health certification to ship their products..
For more information, contact Beth Hughes, IDFA director of international affairs, at bhughes@idfa.org.