New NOMS for Dairy Products May Shift Import Patterns

A Lastest News about Dairy Products in Mexico

Posted on: 27 May 2012

On May 3, 2012, Mexico's Secretariat of Economy (SE) published two Official Norms related to the regulation of dairy products.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 5/16/2012 GAIN Report Number: MX2031 Mexico Post: Mexico New NOMS for Dairy Products May Shift Import Patterns Report Categories: Dairy and Products Policy and Program Announcements Market Development Reports Market Promotion/Competition Approved By: Daniel K. Berman Prepared By: Gabriel Hernandez Report Highlights: On May 3, 2012, Mexico's Secretariat of Economy (SE) published two Official Norms related to the regulation of dairy products. NOM-155-SCFI-2012 “Milk-Denomination, physical-chemical specifications, commercial information, and testing methods” and NOM-183-SCFI-2012 “Dairy formulas and combined dairy formulas- denomination, physical-chemical specifications, commercial information, and testing methods.” General Information: This report summarizes the official announcements of two Official Norms published in Mexico’s Diario Oficial (Federal Register) on May 3, 2012. SE published NOM-155-SCFI-2012 “Milk-Denomination, physical-chemical specifications, commercial information and testing methods” and NOM-183-SCFI-2012 “Dairy products and combined dairy products- denomination, physical-chemical specifications, commercial information and testing methods.” Disclaimer: This summary is based on a cursory review of the subject announcement and therefore should not, under any circumstances, be viewed as a definitive reading of the regulation in question, or of its implications for U.S. agricultural export trade interests. In the event of a discrepancy or discrepancies between this summary and the complete regulation or announcement as published in Spanish, the latter shall prevail. FAS/Mexico Analysis: The Government of Mexico is responsible for publishing measures to guarantee the safety as well as the availability of appropriate consumer information. These NOMs replace NOM-155- SCFI-2003, and encompass milk, dairy formulas, and combined dairy formulas. As the United States is principally a supplier of raw materials that go into dairy formulations, according to industry sources, the regulation should have little impact on U.S. goods even though the finished products made from the inputs would need to comply with the revised NOMs when they enter into force. The Mexican National Chamber of Milk Industries (CANILEC) has expressed its dissatisfaction with this revised regulation as the Chamber perceives this modification is unnecessary and over-regulates the industry. CANILEC alleges that the new measures will affect self-service stores that produce and sell their own brands. One of main differences between the previous and the recent publications is related to the ratio levels required for casein-protein. The 2003 version of NOM-155 indicated that the ratio of casein-protein must be at least 70 percent, while the newest modification sets the level at a minimum of 80 percent. The private sector unsuccessfully lobbied for the establishment of a more realistic level of around 76 to 78 percent. Another, significant difference is the new definition of “dairy formula.” NOM-183-SCFI-2012 defines the term as “dairy product” but the term “combined dairy product” was used previously in NOM-155- SCFI-2003. As indicated, above, the dairy industry perspective is that such changes are not justified. In addition, industry sources do not foresee any policy effect on the import of U.S. fluid milk, ice cream, or cheeses. However, as higher protein contents are required, it could lead to an increase in imports of milk protein (casein) and an offset in whey imports. Also, even though the changes would imply an increased cost for labeling, the industry believes that no disruptions will ensue as members are accustomed to dealing with requirements related to labeling issues. MX2031 New NOMS for Dairy Products May Shift Import Patterns Page 2 Important Dates 1. Publication Date: May 3, 2012. 2. Implementation Date: October 27, 2012 NOTE: Between the date of publication and the implementation of the new NOMs, the existing NOM from 2003 is applicable. Author Defined: For More Information FAS/Mexico Web Site: We are available at www.mexico-usda.com or visit the FAS headquarters' home page at www.fas.usda.gov for a complete selection of FAS worldwide agricultural reporting. Also, for further information U.S. Dairy Export Council industry members can direct questions to: U.S. Dairy Export Council (USDEC) Circuito Médicos No. 55 Interior 302 Ciudad Satélite, Naucalpan, Estado de México, 53100 México http://www.usdec.org Other Relevant Reports Submitted by FAS/Mexico: Report Number Subject Date Submitted MX2028 Dairy and Products Semi-Annual 5/14/2012 MX1106 Dairy Blends TRQ Announced 12/30/2011 MX1105 Milk Powder TRQ Announced 12/30/2011 MX1092 New Meat and Poultry Letterhead Certificates Required 12/6/2011 MX1083 Dairy and Products Annual 11/14/2011 MX1076 Mexico Eliminates Retaliatory Tariffs 10/21/2011 Useful Mexican Web Sites: Mexico's equivalent to the U.S. Department of Agriculture (SAGARPA) can be found at www.sagarpa.gob.mx, equivalent to the U.S. Department of Commerce (SE) can be found at www.economia.gob.mx and equivalent to the U.S. Food and Drug Administration (SALUD) can be found at www.salud.gob.mx. These web sites are mentioned for the readers' convenience but USDA does NOT in any way endorse, guarantee the accuracy of, or necessarily concur with, the information contained on the mentioned sites. MX2031 New NOMS for Dairy Products May Shift Import Patterns Page 3
Posted: 27 May 2012

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