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October 24, 2006 Volume 64. No. 21







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USDA Releases DEIP Allocations, But No Invitations

After repeated prodding by NMPF, the U.S. Department of Agriculture has finally announced DEIP allocations of 68,021 tons of nonfat dry milk, 21,907 tons of butterfat and 3,030 tons of cheese for the July 2006 -June 2007 DEIP marketing year.

However, the Department issued no invitations for offers, saying it would monitor market conditions to determine when invitations on these allocations may be used. DEIP allocations have gone unused for the past two years and USDA has given no indication that 2006/2007 will be any different.

NMPF has requested that the DEIP be used for developed markets when world prices are below domestic prices, such as is the case currently for cheese and butterfat - but not nonfat dry milk powder, which is in short supply.

In a letter to Agriculture Secretary Mike Johanns, NMPF expressed its appreciation for the DEIP allocation decision, but urged the USDA to consider accepting invitations as soon as possible.

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NMPF Asks Congress to Consider Permanent Normal Trade Relations with Vietnam

Several U.S. agriculture organizations, including NMPF, sent a letter to Congress last week urging the passage of legislation creating permanent normal trade relations (PNTR) status for Vietnam.

The letter pointed out that Vietnam's accession to the World Trade Organization (WTO) is imminent. In order for the United States to be in compliance with its WTO obligations and receive the full benefit of Vietnam's accession to the WTO, Congress must pass PNTR for Vietnam. In return, the U.S. will agree to provide the same normal trade rights to Vietnam on a permanent basis that we already provide to Vietnam on a temporary basis. Approval of Vietnam PNTR would cut tariffs on U.S. dairy exports to this dairy-importing country, thereby providing benefits by way of more favorable export terms.

The Bush Administration is particularly eager to have Congress grant Vietnam PNTR status before President Bush travels to Vietnam for a meeting there in mid-November. This trade initiative enjoys fairly broad support in Congress, and is expected to be dealt with early on in this year's Congressional Lame Duck session following the Nov. 7 elections.

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New Report Says FDA Approval of Cloned Livestock is Imminent

An article in last week's Washington Post says that the Food and Drug Administration is soon to issue a report finding that there is little risk to the public from the consumption of the milk and meat of cloned livestock.

The FDA has been examining several new scientific studies comparing the health of cloned cattle and pigs with those of sexually-produced livestock. The FDA is expected to find that the new data, along with previous studies, finds that cloned livestock and their offspring pose no unique risks to consumers.

The FDA's Center for Veterinary Medicine anticipates releasing a formal draft risk assessment by the end of the year, along with a proposed "risk management" plan. Those documents would allow the marketing of clones and their offspring for food and milk after a final period of public comment. FDA officials told NMPF last Friday that much of the research data will appear in the January 2007 issue of Theriogenology, a scientific periodical dedicated to animal reproduction.

NMPF's position is that it does not support the milk from cloned cows entering the marketplace until the FDA determines that milk from cloned cows is the same as milk from conventionally bred animals.

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NMPF Annual Meeting Fast Approaching

The members of NMPF will meet next week for the 90th Annual Meeting in Las Vegas, from Oct. 31 - Nov. 2nd.

Agriculture Secretary Mike Johanns will speak at 11 am on the 2nd. Other speakers include former Pittsburgh Steelers player Rocky Bleier, national political analyst Charlie Cook, Royal Ahold executive Allen Noddle, as well as the producer chairmen of NMPF, UDIA, NDB and DMI.

NMPF thanks the sponsors of the annual meeting, including Berkeley Farms, Co-Bank, Flair Communications, Humboldt Creamery, Kraft Foods, McLeod Watkinson & Miller, Monsanto Dairy Business, National Rural Electric Cooperative Association, Sargento Foods, T.C. Jacoby & Co., and U.S. Dairy Export Council.

NMPF also thanks those that make the scholarship program possible, donations came this year from:Cass-Clay Creamery, Inc., Dairy Marketing Services, LLC, Flair Communications, The Garrison Group LLC, Humbolt Creamery, Land O’Lakes Inc., McLeod, Watkinson & Miller, Maryland and Virginia Milk Cooperative Association, Inc., Prairie Farms, Tillamook County Creamery Association and United Dairymen of Arizona.

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Associate Member Focus: O-AT-KA Milk Products Cooperative, Inc.

O-AT-KA Milk Products Cooperative O-AT-KA Milk Products Cooperative, Inc. is headquartered in Batavia, NY and is a producer of Bulk Condensed Milk, Dairy Blends, Ultrafiltrated Skim Milk Concentrate, Grade A Milk Powders and Buttermilk Powders and Canned Evaporated Milk.

To learn more about O-AT-KA contact Clyde “Mac” McCampbell at 585-343-0536 or visit their website at www.oatkamilk.com.


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Editor: Christopher Galen (703) 243-6111 E-mail: CGalen@nmpf.org