Author: Alan Bjerga

Trade Policy Victories for U.S. Dairy

Posted on by Alan Bjerga

Shawna Morris HeadshotBy Shawna Morris, Senior Vice President for Trade, NMPF and U.S. Dairy Export Council.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are proud to be the voice of defending the American dairy industry and promoting dairy exports in Washington D.C. and around the world. Looking back at this past year of trade policy, American dairy producers and the entire industry have much to be proud of.

U.S. dairy exports are on track for another record year in both value and volume — despite a lack of new market access, protectionist actions in key markets, and ongoing supply chain challenges.

Working with the government to help U.S. dairy thrive

The record export numbers are happening despite high costs and unreliable shipping networks that are still causing headaches for the industry more than two years after the global COVID-19 outbreak first snarled supply chains.

NMPF and USDEC have led the way in working with the U.S. government to address the concerns. In June, President Biden signed the Ocean Shipping Reform Act into law. Championed by NMPF and USDEC, the legislation limits ocean carriers’ ability to deny exports and charge unreasonable fees, clearing a significant hurdle for dairy exporters.

Elsewhere, the EU’s abuse of geographical indication rules continues to threaten U.S. producers’ access to foreign markets for common-name cheeses like “Parmesan” and “Feta.” In collaboration with the Consortium for Common Food Names (CCFN), NMPF and USDEC have pushed the U.S. government to proactively defend the rights of U.S. cheesemakers and fought the court battles necessary to advance this effort.

That work resulted in a key win last January, when a U.S. District Court ruled in our favor that “Gruyere” cheese can be produced anywhere – not just in France or Switzerland. This landmark victory again proved that common names are widely understood to refer to types of food, regardless of where they are produced.

Holding Canada responsible

The U.S.-Mexico-Canada Agreement (USMCA) provided a much-needed update to trade rules. NMPF and USDEC supported it as a deal that would increase exports and boost farm gate milk prices.

Unfortunately, Canada hasn’t held up its end of the bargain. By reserving most of its dairy tariff rate quotas (TRQs) for Canadian processors and directly impairing American exporters’ ability to access the Canadian market, it’s clearly a break of the USMCA’s TRQ provisions that allow market access.

NMPF and USDEC successfully advocated for last year’s initiation of the first-ever USMCA dispute settlement process. The United States won the initial case in January, but upon Canadian refusal to comply with the ruling, NMPF and USDEC prompted the U.S. government to pursue a second dispute panel, resulting in the U.S. seeking formal consultations with Canada in May. The organizations have urged a strong response on behalf of wronged U.S. dairy industry members to ensure that America’s dairy sector receives the full export benefits promised under the agreement.

Strengthening relationships in Latin America

NMPF and USDEC finalized partnerships with the Chilean National Federation of Producers (Fedeleche) and Rural Society of Argentina this year that will advance shared policy priorities internationally. Far more than just agreements on paper, these relationships set a foundation to confront emerging threats, both in key export markets and in international standard-setting bodies to ward off anti-trade and anti-dairy policies.

These examples are just a slice of the trade policy issues that touched the U.S. dairy industry in 2022, but each highlights the great potential of the American dairy industry to grow worldwide and shows the need for the U.S. government to work with us to get there. Looking to 2023 and beyond, NMPF and USDEC are looking forward to ensuring that exports keep growing in volume and in value, supporting the bottom line of dairy farmers, manufacturers, and workers throughout the country.

This column originally appeared in Hoard’s Dairyman Intel on Dec. 26, 2022.

NMPF’s Bjerga on Dairy’s Recent Policy Wins

Posted on by Alan Bjerga

As the year comes to a close, the National Milk Producers Federation is applauding two recent measures that support the dairy industry. NMPF Senior Vice President of Communications Alan Bjerga spoke with RFD-TV’s own Janet Adkison about how the Growing Climate Solutions Act and Sustains Act benefit dairy farmers, and what USTR’s announcement of a new request for dispute settlement consultations with Canada means for U.S. dairy.

 

https://www.rfdtv.com/two-recent-measures-from-congress-and-ustr-are-giving-a-boost-to-dairy-farmers

Scholarships give back to dairy, NMPF’s Ayache says

Posted on by Alan Bjerga

 

The National Dairy Leadership Scholarship Program supports dairy research — and the industry as a whole — by assisting students who do cutting-edge scholarship, and then stay within the sector, said  Nicole Ayache, National Milk Producers Federation Vice President, Environmental Stewardship and Sustainability, in an interview with the National Association of Farm Broadcasters. “We’re really trying to support those individuals and their career. We want them to stay within dairy and contribute to our community,” she said. More information on the scholarships and how to donate to them is here.

U.S. Dairy Salutes USTR’s Pursuit of Canadian USMCA Compliance

Posted on by Alan Bjerga

ARLINGTON, VA – The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) commend the U.S. Trade Representative’s announcement today that it is filing a new request for dispute settlement consultations with Canada in order to expand the scope of the second U.S.-Mexico-Canada Agreement (USMCA) dairy dispute to include additional elements necessary to ensure that Canada fully complies with its USMCA obligations.

The initial USMCA dispute panel, launched by the United States in May 2021, found Canada in violation of USMCA’s tariff-rate quota (TRQ) provisions by reserving most of its preferential dairy TRQs for Canadian processors. In March 2022, Canada released its revised approach to USMCA TRQs, which still violated the USMCA, by providing inequitable advantages to Canadian dairy processors and failing to administer TRQs in a manner to ensure full use of TRQs as intended by USMCA. This prompted USTR to request formal consultations with Canada over the measures, the first step in bringing a second case before a USMCA dispute settlement panel.

Today’s actions are the culmination of months of painstaking work to evaluate the strongest basis for the United States’ case and find the best approach to bring Canada into compliance given its persistent violations.

“We thank USTR and USDA for their diligence in working to ensure that American dairy producers have the market access promised under USMCA. NMPF is committed to doing everything it can to support the case,” stated Jim Mulhern, president and CEO of NMPF. “At the end of the day, if Canada continues to flagrantly flout its obligations, the U.S. government has to be ready with retaliatory measures that make the Canadian government reconsider its actions.”

“It is deeply unfortunate that Canada simply refuses to honor the full terms of our agreement,” said Krysta Harden, president and CEO of USDEC. “USMCA is a fair deal that was thoroughly negotiated and agreed to by the Canadian government. The U.S. dairy community is thankful the administration and Congress have taken Canada’s violations seriously and are fighting for full export benefits that the American dairy industry earned.”

 

NMPF Lauds Bipartisan Ag Climate Measures in Appropriations Package

Posted on by Alan Bjerga

The National Milk Producers Federation (NMPF) today commended Congress for including the Growing Climate Solutions Act and the SUSTAINS Act in its final fiscal year 2023 budget package. These measures will help dairy farmers seek additional sustainability opportunities as they work to fulfill the dairy sector’s voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050.

“Environmental markets and conservation programs have the potential to meaningfully assist dairy producers as they work to meet their 2050 environmental stewardship goals,” said NMPF president and CEO Jim Mulhern. “The Growing Climate Solutions Act and the SUSTAINS Act will strengthen these important tools.”

The Growing Climate Solutions Act, authored by Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, and Senator Mike Braun, R-IN, passed the Senate last June on a bipartisan vote of 92-8. The legislation would enable USDA to register technical service providers that help farmers implement stewardship practices that can generate credits on environmental markets. In turn, producers will be better positioned to participate in these important markets. Reps. Abigail Spanberger, D-VA, and Don Bacon, R-NE, have introduced companion legislation in the House.

The SUSTAINS Act, authored by House Agriculture Committee Chairman-elect Glenn ‘GT’ Thompson, R-PA, passed the House Agriculture Committee in May on a bipartisan voice vote. The measure would allow private sector funds to supplement existing funding for farm bill conservation programs, which are continuously oversubscribed. The bill is an innovative approach to boosting funding for USDA conservation programs, which provide important technical assistance to dairy farmers for a variety of stewardship practices.

In addition to the sponsors of both bills, committee leaders Rep. David Scott, D-GA, and Sen. John Boozman, R-AR, also played important roles in finalizing the bipartisan package.

“We commend the leaders of the Agriculture Committees – Senators Debbie Stabenow and John Boozman and Reps. David Scott and GT Thompson – for working together to fashion this bipartisan agreement on agricultural climate legislation,” Mulhern said. “We look forward to working with them and their colleagues to build on this progress in the new year.”

Biosecurity Critical to Dairy Every Day

Posted on by Alan Bjerga

By Miquela Hanselman, Regulatory Affairs Manager, NMPF.

In the winter months, people often take extra precautions against illnesses like the flu or the common cold because they understand the benefits of staying healthy. Every farmer knows that simple on-farm actions help keep animals healthy. But routine best practices — as well as enhanced ones that are especially important in a world of animal disease outbreaks that destroy markets as well as herds—are critical to keep top-of-mind as farmers strive to have healthy animals, healthy employees, and a healthy dairy economy.

That’s why the National Dairy Farmers Assuring Responsible Management (FARM) Program created the first Everyday Biosecurity Manual. Biosecurity is the newest FARM Program area, beginning in 2021 through funding from USDA’s National Animal Disease Preparedness and Response Program. It focuses on increasing awareness of biosecurity throughout the dairy industry by providing practical and effective steps to further promote cattle health. This voluntary program complements the animal health and husbandry recommendations included in the FARM Animal Care, Drug Residue Prevention, and Environmental Stewardship programs.

Seven areas to protect health

The Everyday Biosecurity Manual outlines small, routine steps dairy farmers can take to protect herd and employee health through seven areas — animal health and disease monitoring, animal movements and contact, animal products, vehicles and equipment, personnel, cleaning and disinfection, and a line of separation. Putting everyday biosecurity measures in place can prevent the introduction, detect the presence, and contain the spread of diseases among both cattle and people. Everyday biosecurity practices protect against common diseases like contagious mastitis, respiratory infections, and scours. With effective everyday biosecurity steps, farmers can prevent or lessen the impact of these diseases on their cattle.

Biosecurity is a multistep process. Along with everyday measures, producers also need enhanced biosecurity to protect cattle from highly contagious foreign animal diseases such as foot-and-mouth disease (FMD). FARM Biosecurity also complements the Secure Milk Supply (SMS) Plan for Continuity of Business during an FMD outbreak, which includes enhanced biosecurity recommendations. The FARM Biosecurity program aligns everyday steps with these enhanced steps to ensure producers have the right tools to protect their cattle from common or high-consequence diseases.

The SMS Plan was developed in collaboration with industry representatives, state and federal animal health officials, and academic partners with USDA funding beginning in 2009. In an FMD outbreak, dairy farms located in a regulatory control area would need a movement permit issued by the state to ship cattle, semen, embryos, and possibly raw milk. The FARM Biosecurity Program is also developing an online option for producers, their veterinarian, and their FARM evaluator to create an enhanced biosecurity plan ahead of an outbreak. Once put in place, cattle will be better protected against FMD, and producers will be better positioned to meet the biosecurity movement permit requirement to move their cattle and products during an FAD outbreak.

Good biosecurity takes time and practice to be effective. Making these practices routine — or reinforcing the best management practices in the Everyday Biosecurity Manual — can help protect animals from all kinds of diseases. This ultimately moves the industry one step closer to protecting cattle and the U.S. milk supply. Visit nationaldairyfarm.com/farm-biosecurity/ for more information.

This column originally appeared in Hoard’s Dairyman Intel on Dec. 12, 2022.

NMPF’s Galen on DMC Signup

Posted on by Alan Bjerga

 

NMPF Senior Vice President Chris Galen reminds farmers of the upcoming Dec. 9 deadline to enroll in the Dairy Margin Coverage Program in an interview with the National Association of Farm Broadcasters. This year’s payments under the program — the result of high input costs eating into record prices — show the wisdom of DMC’s design, Galen said.  “As we head into 2023, we know that milk prices aren’t going to be as strong,” Galen said. “We know that input costs are still going to be significant.”

China’s Dairy Demand May Be Sluggish in ’23

Posted on by Alan Bjerga

By Stephen Cain, Director of Research and Economic Analysis, NMPF.

Outside of cheese, China is the number one importer of essentially every major dairy product. Globally, the world’s most populated country purchases 27% of all traded dairy products on a milk solids basis. China accounts for roughly 20% of all U.S. dairy exports and nearly half of all U.S. dry whey exports.

All of this makes China an unquestionably important market; yet, over the last year, Chinese demand has been down significantly. Chinese milk solids imports over the last 12 months are down 16%, and they’re heavily down in skim milk powder (-20%), dry whey (-17%), and whole milk powder (-24%). Two key pieces that have led to the pullback are high stockpiles and COVID-19 lockdowns.

Following the onset of the pandemic and wanting to ensure adequate supplies on hand, China built up some impressive stocks, especially in skim milk power and dry whey. From mid-2020 through mid-2021, Chinese milk solids imports climbed 32% over the preceding 12 months. For the same time period, skim milk powder and dry whey imports rose 32% and 50%, respectively.

This high purchase volume outpaced demand and led to stock build up. These high stocks, coupled with then-high global prices, led China to pull back from the global market and instead work down its stockpiles. That largely kept Chinese purchasing depressed over the past year. Encouragingly, stocks are now approaching more normal levels, which supports China returning to the market, especially for skim milk powder and dry whey.

More COVID-19 lockdowns throughout China are also plaguing demand. While the rest of the world moves on from the pandemic and reverts to pre-COVID-19 life, China seems to be charging in the opposite direction. The zero-COVID policy in China has led to extreme measures in the country, with huge swaths of the population being locked down as the country continues its losing battle against the disease.

Earlier this year, Shanghai, the largest city in China with roughly 25 million residents, was put in lockdown for two consecutive months. Since then, lockdowns have only increased in number and severity, with some estimates as of late October stating there were more than 200 million people affected by lockdowns nationwide.

While many agree China relaxing its zero-COVID approach would be beneficial, rising cases in the country suggest that’s unlikely to occur. The country is facing the highest rate of new cases since the start of the pandemic, which means lockdowns and tough restrictions are only going to become more commonplace. That’s hitting dairy demand. Restaurants and the food service sector are hugely important to dairy consumption in China, but that consumption avenue is being restricted as consumers are increasingly unable to leave their homes. Until lockdowns and restrictions ease, Chinese dairy demand will continue to be challenged.

Source: USDEC, Our World in Data

Dairy is only one part of a Chinese economy that’s facing headwinds. A limited gross domestic product (GDP) growth outlook, a teetering real estate sector, and depressed, COVID-19-driven demand from lockdowns are creating a challenged economic outlook. The 2022 GDP forecast is estimated at 3.2%, which would make for one of the worst performances in nearly half a century; 2023 looks only slightly better, with forecast growth of around 4.4%.

Similarly, Chinese dairy demand in 2023 is likely to see similar sluggish growth. Despite the melancholy economic outlook and lockdown projections, Chinese imports in 2023 will likely be up, but not at substantial volumes, and certainly not same at the growth rate we saw in 2021. As stocks are depleted and domestically produced products (which are largely more expensive than imports) fail to meet demand, China will have to return to the global market. The biggest swing factor, though, remains COVID-19 lockdowns. If China doubles down on lockdowns, demand will likely continue to be depressed and imports will be challenged. Should they ease, China will certainly need product, and greater imports will follow — and that would be good news for U.S. exporters.

 

This column originally appeared in Hoard’s Dairyman Intel on Nov. 28, 2022.

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NMPF Calls on Lawmakers to Support Domestic Infant Formula Production

Posted on by Alan Bjerga

In a letter to lawmakers, the National Milk Producers Federation urged support for domestic infant formula production as the production shortfalls that stripped store shelves of necessary infant formula have eased. Given the improving situation, tariff waivers that could discourage the production of a safe, secure domestic infant formula supply should be allowed to expire at end of this year as scheduled, NMPF said in the letter to the chairmen and ranking members of the Senate Finance Committee and House Ways and Means Committee.

“Given that the temporary production shortfall that gripped American families in need of formula earlier this year has abated, we urge Congress to ensure that the unique, unilateral tariff benefits granted to our trading partners under the Formula Act and the Bulk Infant Formula to Retail Shelves Act end as scheduled at the close of this year,” said NMPF Chairman and CEO Jim Mulhern in the letter, dated Nov. 17 . “We respectfully request your opposition to any effort to extend these preferential tariff benefits beyond the end of this year.”

A strong, diversely sourced domestic infant formula production industry ensures the highest quality, safest products while supporting rural jobs and domestic producers.

NMPF, IDFA Seek to Fix WIC Proposal that Would Decrease Access to Dairy’s Nutrients

Posted on by Alan Bjerga

ARLINGTON, Va. and WASHINGTON, DC – Representing dairy farmers, cooperatives, and processors, the National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) issued the following joint statement in response to USDA’s proposed changes to the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) released today:

“It is unfortunate for WIC participants that the proposed rule would decrease access to dairy products and the unique nutrient profile they provide, especially considering the current Dietary Guidelines for Americans (DGA) note that a staggering nearly 90 percent of the U.S. population does not consume enough dairy to meet dietary recommendations. At a time of rising food costs and high food insecurity, we should focus on increasing access to a wide variety of healthful, nutrient-dense, and affordable foods, including both fresh produce and dairy products. It’s disappointing that the proposed rule would limit WIC family purchasing power for nutritious dairy foods, particularly at a time like this.

“WIC is central to helping ensure pregnant women, new mothers, infants, and children have access to the nutrients needed for growth and development at the critical life stages surrounding pregnancy, birth, and early childhood. The vast body of nutrition science demonstrates that nutritious dairy products like milk, yogurt, cheese, and cottage cheese are especially important in the diets of women, infants, and children. Dairy is a source of 13 nutrients, including three of the four nutrients of public health concern as noted by the DGA, which is why dairy has always played a significant role in the WIC program.

“NMPF and IDFA commend USDA for suggesting approaches to make the nutrient-dense food provided by the WIC program more accessible, including expanded options for yogurt and cheese varieties and for proposing WIC participants be able to purchase these dairy products in a wider variety of product package sizes that are more commonly found in grocery stores. We also applaud USDA for its continued commitment to nutritional equivalency in substitute products, rejecting those that do not provide an equivalent nutrition package, as recommended by the DGA.

“We look forward to working with USDA to modernize the WIC food package for eligible families to access nutrient-dense milk, yogurt, and cheese varieties that are a part of their everyday diets and accessible in neighborhood stores, thus fulfilling the program’s nutritional objectives. IDFA, NMPF, and our members will advocate against reducing the amount of nutritious dairy foods provided through WIC in USDA’s final rule because we are committed to reducing food insecurity, malnutrition, and diet-related disease while improving health outcomes by making it easier for all Americans to access healthy, affordable foods, including nutritious dairy products. We hope USDA will work to achieve these same objectives as they develop a final WIC rule, which, given dairy’s unique nutrient package and incomparable role in nourishing WIC participants, will require USDA not to decrease access to dairy in the WIC program.”

 

NMPF Urges Sped-Up FDA Approval of Climate Friendly Feed Additives

Posted on by Alan Bjerga

ARLINGTON, VA — NMPF called on the U.S. Food and Drug Administration to use existing legal authority to modernize its regulations allowing for faster approval of animal-feed additives that reduce greenhouse gas emissions, submitting comments to the agency today that highlighted the need for urgent action to enhance dairy’s role as a climate solution.

“Innovative and voluntary solutions are needed to reduce greenhouse gas (GHG) emissions, including methane,” said Dr. Jamie Jonker, NMPF’s chief science officer, in the comments submitted today. “Enteric emissions directly from cows currently account for roughly one third of all GHG emissions from dairy farms and present an important area of opportunity for methane reductions. Feed composition changes can directly or indirectly reduce enteric emissions resulting from livestock.”

While animal-feed additives are a promising path toward a net-zero future for dairy as outlined in industry goals, the pace of their approval lags that of competitors such as the European Union due to current FDA processes. By streamlining bureaucracy and allowing feed-additives to be treated as foods rather than as drugs, the United States can maintain and advance its global leadership in sustainability, Jonker wrote.

Through the U.S. Dairy Net Zero Initiative, a collaboration across dairy organizations, dairy-farm research is advancing new technology and new market development opportunities to make sustainability practices more accessible and affordable to farms of all sizes, including enteric methane reduction.

“One of the greatest opportunities that exists for U.S. dairy farmers is their ability to provide real solutions to many of today’s biggest environmental challenges like GHG emissions,” Jonker wrote. “Embracing new practices and technologies is key to making America’s dairy farmers an environmental solution while providing wholesome and nutritious dairy products to the U.S. and the world.”

For more on how dairy is advancing its stewardship and best practices, visit the National Dairy FARM (Farmers Assuring Responsible Management) Program’s Environmental Stewardship page.

NMPF’s Bjerga on the Congressional Elections and Dairy’s Challenges

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga details some of the policy and marketplace challenges U.S. dairy is striving to meet, regardless of the cloudy outcomes of Tuesday’s congressional elections, in an interview with RFD-TV. Opportunities to grow markets via sustainability, an adequate safety net in the upcoming farm bill, and sensible industry regulation all loom in 2023, with dairy well-positioned to make progress.