The issue emerged this week after Cambodia said it had halted exports from Utah-based company Ambrosia Labs, which claims to be the first of its kind to bank human breast milk sourced overseas and export it into the United States.
The firm's customers are American mothers who want to supplement their babies' diets or cannot supply enough of their own milk.
The milk is pumped in Cambodia, frozen and shipped to the US where it is pasteurised and sold by the company for $20 each 5 oz (147 ml) pack -- roughly the volume of half a can of Coke.
On Monday Cambodia's customs department said it had stopped exports temporarily "because the product comes from a human organ" adding the government planned to hold talks on whether to let the trade continue.
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UNICEF -- the arm of the UN protecting children -- said excess breast milk should remain in Cambodia, one of Southeast Asia's poorest countries, where many babies lack good nutrients. "Breast milk banks should never be operated by exploiting vulnerable and poor women for profit and commercial purposes," Iman Morooka, the agency spokeswoman in Cambodia, told AFP.
Malnutrition "remains a threat to children's wellbeing in Cambodia, and proper breastfeeding is one of the key factors contributing to a child's good health and nutrition", she added.
Cambodian Health Minister Mam Bunheng declined to comment on the issue when contacted by AFP on Wednesday.
Ambrosia Labs did not respond to repeated requests for comment.
In previous press interviews the firm said its model encouraged Cambodian women to continue breast feeding, earned them much needed extra income and helped plug milk bank shortages in the US.