Make Allowance Changes to Take Effect Feb. 1, Following Approval by Producers

Producers and their cooperatives in all ten Federal Milk Marketing Orders have approved amended language raising the manufacturing allowances in the formulas for Class III and IV products.

USDA gave notice on December 29th that the new make allowances will go into effect on February 1, 2007. This means that all classified prices for January will be calculated with the old make allowances, and all classified prices for February will be calculated with the new ones.

The new make allowances per pound of finished product are as follows:

All elements of the Class III and IV price formulas, including these make allowances, are expected to be open for consideration at a national hearing to be called later this year. Contact Roger Cryan at the NMPF office if you have any questions.

U.S. Begins Process of Opening Border to Canadian Dairy Cattle

The Bush administration said last week it will further open the border to imports of Canadian cattle, including dairy replacements, despite questions about Canadian safeguards against BSE, or mad cow disease.

The U.S. initially placed a ban on Canadian cattle and beef in May 2003, when that country's first case of mad cow disease was found. In December 2003, an imported Canadian Holstein in Washington state became the first case of BSE found in the U.S. In 2005, USDA allowed animals less than 30 months of age to be imported, provided they went directly to slaughter.

Last Thursday, the U.S. Department of Agriculture said it would issue a proposed rule that will allow imports of Canadian cattle born on or after March 1, 1999, along with beef cuts from older Canadian cattle. That regulation also will include live animals that are imported for breeding, such as dairy heifers.

The plan will go through 60 days of public comment until March 12. Department officials said they will take into account all comments before publishing a final rule, possibly in the summer.

NMPF will be reviewing the USDA proposal when it is formally released this week, and then will file comments with the Department.

FDA Releases Risk Assessment of Cloned Animal Products

The Food and Drug Administration formally released its draft risk assessment Dec. 28th on the safety of meat and milk from cloned animals. The FDA's initial review of research submitted to the agency is that cloned animals and their products are as safe to consume as conventionally-bred animals.

As part of the effort to educate the food industry and the public on this issue, the agency released a risk management plan, a risk assessment, and a guidance for industry. Consumer-oriented materials, including basic information on cloning, can be accessed at the FDA's Center for Veterinary Medicine website.

In the coming weeks, NMPF staff will be reviewing these assessments and offering comments to the agency consistent with our existing policy on cloning. The FDA's comment period will end at some point in early April. NMPF's statement on the FDA draft risk assessment can be found on the website.

The voluntary moratorium on the marketing of cloned animal products will be maintained during the comment period.

The FDA, during a call Dec. 28th with NMPF and other stakeholder organizations, did not elaborate on possible labeling protocols, saying that such questions will be addressed at the end of the comment period. It is widely expected that labeling of cloned animal products will not be required, but whether absence claims will be permitted, and in what circumstances, remains to be seen.

Technical questions about the FDA risk assessment findings, and next steps in the comment period, can be directed to Rob Byrne, NMPF SVP for Scientific and Regulatory Affairs.

New Democrat-led Congress Begins Work

The 110th Congressional session began last week, making history with the first-ever woman serving as Speaker of the House. Nancy Pelosi (D-CA) was elected to that position at the beginning of the session.

Democratic Congressional leaders have identified a host of issues they plan to tackle early on during this session, including raising the minimum wage. An early measure that passed the House last week was a reform of lobbying regulations, which NMPF is still analyzing. The Senate, under new Majority Leader Harry Reid (D-NV), is likely to also take action on this item, but has not yet moved to do so. Other issues that are likely to be addressed early this year by Congress include government oversight, energy issues, and efforts to balance the budget. Congress will also soon begin to work on writing the next Farm Bill.

New Committee Chairmen and Ranking Members were also named. Sen. Tom Harkin (D-IA) will chair the Senate Agriculture Committee, and Rep. Collin Peterson (D-MN) will chair the House Agriculture Committee. Both have a great deal of expertise in agricultural issues and have been involved in numerous Farm Bills.

The House is still filling several vacancies on its Agriculture Committee, but the five new members on the Senate Agriculture Committee can be found on its website.

NMPF Promotes Three Staff

Roger Cryan, Ph.D, has been promoted to Vice President of Milk Marketing & Economics. Dr. Cryan works with a number USDA agencies on pricing and statistical issues, including Federal milk marketing orders. He also publishes regular dairy market outlooks, assesses economic impacts of federal regulation affecting dairy producers, and provides economic analysis in all areas of NMPF's work. Cryan had been serving as Director for NMPF since joining the organization in 2000.

Daniela Bals, previously a Coordinator, has been promoted to Manager, Regulatory Affairs. She has primary responsibilities of the environmental and animal welfare programs of NMPF. Specifically, she coordinates the activities of the Dairy Environmental Task Force. She also oversees the NMPF Scholarship Program and provides general support of all regulatory programs including those related to animal health, dairy processing, product standards and biotechnology. Bals joined the NMPF staff in 2002.

Mary Knigge has been promoted to Manager, Communications and YC Programs. Knigge joined NMPF in 2003. She will continue to provide support for general communications efforts for NMPF. Knigge remains in charge of the Young Cooperator program.

Associate Member Focus: Virginia Tech

Founded in 1872 as a land-grant university named Virginia Agricultural and Mechanical College. Virginia Tech is now a comprehensive, innovative research university with the largest full-time student population in Virginia.

Virginia Tech's Dairy Science department helps students recognize the significant contributions made by graduate students to departmental research, teaching and extension programs. Through the Virginia Tech Dairy Science department, students participate in dairy shows, have student-managed cattle sales, and handle a herd of 215 milking Holsteins & Jerseys.

Virginia Tech's representative is Dr. Mike Akers, Alphin Professor & Department Head, and can be reached at: 540- 231-6331. You can learn more about Virginia Tech's Dairy Science Department by visiting heir website: www.dasc.vt.edu.