Author: Alan Bjerga

U.S. Dairy Industry Praises Administration and Congress for Final Passage of USMCA

Posted on by Alan Bjerga

ARLINGTON, VA – The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) cheered today’s Senate vote paving the way for the President’s signature of the United States-Mexico-Canada Agreement (USMCA).

Looking ahead, USDEC and NMPF urged U.S. officials to carefully monitor Canada and Mexico’s USMCA commitments once the trade deal takes effect to ensure its provisions are enforced accordingly so that the dairy industry is able to reap the full benefits of the agreement negotiated by Ambassador Lighthizer and the negotiating teams at USTR and USDA.

“USMCA makes important strides to break down trade barriers, opening the door to new opportunities and supporting the flow of high-quality American dairy products to two valuable export markets,” said Tom Vilsack, president and CEO of USDEC. “The strong enforcement measures included in the final agreement give officials the tools necessary to hold our trade partners accountable and ensure the gains secured by USMCA are completely realized. We are grateful to the Administration for the sizable accomplishments secured in USMCA on dairy. With this trade deal complete, negotiators can now turn their attention to other key markets around the world in order to gain further ground for U.S. dairy.”

“America’s dairy farmers are celebrating today’s bipartisan vote as a win. Under President Trump’s leadership, USTR and USDA negotiated an agreement that will deliver a more certain future for our dairy farmers and rural economy,” said Jim Mulhern, president and CEO of NMPF. “The U.S. must now remain diligent and proactively work with Canada and Mexico to implement USMCA in both letter and spirit. Full compliance is essential to achieving more fair trade with Canada and protecting American-made cheeses in Mexico.”

USMCA fundamentally changes Canada’s trade-distorting policies, reforms Canada’s controversial dairy pricing system and provides exclusive Canadian market access for U.S. farmers and manufacturers. According to the International Trade Commission, U.S. dairy exports are projected to increase by more than $314 million a year. USMCA also strengthens the relationship between Mexico and the U.S. and establishes new protections for products that rely on common cheese names, such as parmesan and feta.

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Dairy Applauds Key Achievements Made in China Phase One; Still, Dairy Market Access Contingent on Lifting Retaliatory Tariffs

Posted on by Alan Bjerga

ARLINGTON, VA –Today’s signing of the Phase One trade agreement with China makes important advances on nontariff issues harming U.S. dairy trade. While promises of additional Chinese purchases of U.S. agricultural products in the next two years are encouraging, the benefits for the dairy industry remain unclear. Given that China’s retaliatory tariffs remain a significant impediment to U.S. dairy sales in China, the U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) stress that work with China is not complete until the retaliatory tariffs against all U.S. dairy exports are fully lifted.

“Today’s announcement of a deal that makes progress on regulatory restrictions and other nontariff barriers hindering dairy trade is a positive step forward. These are important deliverables that USDEC has been pressing China for over the course of the last few years,” said Tom Vilsack, president and CEO of USDEC. “We need to continue to work with our government, China’s government and our customers to finish the job by lifting the remaining Chinese retaliatory tariffs against our exports.”

“America’s dairy farmers have been disproportionally harmed by China’s retaliatory tariffs, and we cannot ask our farmers to continue operating under this financial uncertainty,” said Randy Mooney, dairy farmer from Rogersville, MO and Chairman of NMPF, who joined President Trump and administration officials at the White House signing ceremony on Wednesday. “We appreciate the hard work invested by both the U.S. and Chinese governments, but we urge China to swiftly lift all retaliatory tariffs against U.S. dairy products and work with U.S. suppliers to fulfill their purchasing commitment.”

The Phase One deal with China makes progress on nontariff barriers important to U.S. dairy, such as:

  • Tackling facility and product registration steps that have stymied firms seeking to export to China for several years;
  • Improving the regulatory pathway for exports of infant formula and fluid milk (including extended shelf life milk) to China;
  • Creating new transparency and due process obligations regarding geographical indications and common food names; and
  • Promises of increased purchases of U.S. agricultural goods, including dairy.

Left to be fully resolved is how China will fulfill its commitment to purchase large quantities of U.S. agriculture products, including dairy.

China remains a valuable export market for U.S. dairy products, despite retaliatory tariffs. Over the 12-month period spanning December 2018 – November 2019, U.S. dairy exports to China totaled $377 million in sales. However, retaliatory tariffs on U.S. dairy products have steeply disadvantaged the U.S. industry compared to its competitors and contributed to 47 percent decline in U.S. exports to China over that same period, harming U.S. farmers, manufacturers and exporters.

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The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.
The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products.

Dairy Defined Podcast: NMPF’s Bleiberg Looks at Legislative Year Ahead

Posted on by Alan Bjerga

Election years always pose challenges for getting things done on Capitol Hill, but dairy is well-positioned to make gains in 2020, according to Paul Bleiberg, the National Milk Producer Federation’s vice president of government relations.

Senate approval of the USMCA trade agreement and a Senate plan on agricultural labor are only two topics in which positive steps could occur, said Bleiberg, NMPF’s chief policy staffer for the past two years. Child nutrition, transportation could also get put on the front burner, depending on what Congress decides to take up this year. “The completion of the USMCA process and the work in the Senate on ag labor are the top two priorities,” Bleiberg said.

Bleiberg also discusses dairy’s role in the 2020 elections and how dairy producers and allies can affect policy. To listen to the full podcast, click here. You can also find the Dairy Defined podcast on Apple Podcasts, Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

(Note: NMPF’s Dairy Defined podcast explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

 

 

 

Dairy Defined: Be Thankful for Dairy’s Global Success This Christmas

Posted on by Alan Bjerga

ARLINGTON, Va. – Despite the seasonal pressures to buy, buy, and buy, the holidays are best as a season for giving. Yes, that means solicitations – deserving charities fill mailboxes, and earnest pleas to remember the less fortunate have become staples of the holiday season.

But for many people in less-wealthy parts of the world, the property for which they can be most thankful is something people in rich nations take for granted: Dairy cows. For all the disparagement it receives in some, more affluent quarters, the fact is that dairy provides livelihoods and nutrition to  hundreds of millions of people, many of them poorer, worldwide. Dairy lifts people from poverty and protects them from hunger. Dairy gives women jobs and sends girls to school. Dairy supports ecosystems and connects farmers to markets.

Stepping outside first-world problems for a moment, here for the holidays are a few thoughts on dairy’s global reach, and why we should be thankful for dairy farmers worldwide. (Thank you to Global Dairy Platform, an industry partnership that demonstrates dairy’s contribution to global food systems, healthy diets and sustainable livelihoods, for sharing data and graphics.)

  • The world is home to about 133 million dairy farms, with about 600 million people living on those farms. Another 400 million additional people work full-time jobs throughout dairy’s value chain That means more than roughly 1 in 8 people on the planet – 1 billion – are economically supported by dairy.

 

  • Most developing-world dairy farms have herds of two or three cows. Farms with more than 100 cows represent less than 0.3 percent of all dairy farms worldwide.

 

  • Of those 133 million dairy farms, 37 million of them are run by women.
  • Milk and dairy products account for about 14 percent of all global agricultural trade.

 

  • Finally, dairy is continually becoming more climate-efficient; greenhouse gas emissions have dropped by 11 percent per unit in the past decade. In North America the declines have been even steeper, falling not just per unit, but in total gross emissions as well.

 

Dairy is a big deal globally, just as it is in the United States. But dairy looks different in developing countries. It looks more basic, like something that’s essential to simple survival. Like something that should be nurtured and supported as a basic human right.

So when rich-world advocates call for sweeping changes to global diets or eliminating entire agricultural sectors — even though such goals could be met in ways that would allow agriculture to thrive, reduce poverty and contribute to climate and nutrition solutions — keep that in mind. This isn’t only about the 40,000 U.S. dairy farms that are the most carbon-efficient in the world. It’s about 133 million farms and a billion people, many who have much more to worry about than whether their beverage choices signal virtue to their privileged friends.

Let’s be thankful that dairy benefits everyone, regardless of their circumstances or wealth. Let’s work to encourage and sustain its success and celebrate its many contributions to our health and prosperity this Christmas season. Happy holidays, and a happy new year for dairy.

 (Note: NMPF’s Dairy Defined explores today’s dairy farms and industry using high-quality data and podcast interviews to explain current dairy issues and dispel myths.)