NMPF Senior Vice President Chris Galen detailed improvements to the Dairy Margin Coverage program in an interview with the National Association of Farm Broadcasters. “We encourage people to look at the dairy margin coverage program if they’re not already covered or to make adjustments in their coverage levels, because you don’t know what’s going to happen with either milk prices or feed costs,” he said.
Author: Alan Bjerga
NMPF’s Bjerga on the Urgency of Changing the Class I Mover
NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga speaks with RFD-TV about the need to change the Class I mover in a way that ends losses to dairy farmers that have totaled $1.2 billion since 2019. The mover is in the spotlight with the conclusion of USDA’s Federal Milk Marketing Order hearing in Carmel, IN.
Whole and Lactose-Free Milk Shine Bright
By Alan Bjerga, Executive Vice President, Communications & Industry Relations, NMPF
This is shaping up to be an exciting year for both whole and lactose-free milk, two growing segments of fluid milk consumption that are poised for further gains in grocery aisles as well as Washington, D.C. policy circles.
First, the facts: Even as fluid milk continues its decades-long challenge of eroded consumption as beverage markets diversify and consumer preference shifts to other forms of dairy, both whole milk and lactose-free varieties are bucking that trend. According to data from Circana Inc., which tracks retail sales, whole milk sales rose slightly (up 8 million gallons, or 0.6%) in 2023 over 2022. Because overall fluid sales declined, whole milk now makes up 45.4% of total fluid volume sold and is easily the most popular variety.
Lactose-free milk, meanwhile, reached a milestone. By climbing 6.7% to 239.2 million gallons last year, it surpassed the sales volume of almond beverages, by far the most popular plant-based milk alternative beverage. Almond’s annual decline of 9.8% is a big part of an overall consumer move away from plant-based alternatives, which have now seen two straight years of sales volume drops. Buyers are emphatically rejecting years of misleading claims that these beverages are a worthy substitute to dairy.
What’s next?
The National Milk Producers Federation is pushing for full congressional passage of the Whole Milk for Healthy Kids Act, which overwhelmingly passed the House in December and stands good prospects of passage in the Senate — if the right legislative vehicle can be found in a jam-packed election year. Bringing whole and 2% milk back to school meal menus is a great way to improve the nutrition of the next generation of milk drinkers. We have a call to action on our website urging senators to take up the bill.
Lactose-free milk is becoming the industry’s spearhead in ensuring equitable access to milk across diverse populations in federal nutrition programs. It is simply asinine federal policy to do what some vegan activists are proposing — increase access in federal programs to plant-based beverages that are both nutritionally inferior and now falling out of favor with consumers — when a beverage exists that circumvents lactose intolerance and offers all of milk’s benefits because it is, after all, milk. You will be hearing more about this in upcoming months as we strive to make 2024 a year when people become more broadly aware of just how critical lactose-free milk can be for effective and fair nutritional choices.
In what’s been a challenging time for the industry, what can the success of whole and lactose-free milk tell us? It shows that, for all the proliferation of alternatives, consumers like milk that’s most like milk, in taste and composition. They also like milk that’s accessible for everyone who wants its benefits. Quality and diversity are promising building blocks for a prosperous future. That’s plentiful in dairy, and this year, what consumers are choosing also can inform better federal policy.
This column originally appeared in Hoard’s Dairyman Intel on Jan. 18, 2024.
NMPF’s Bjerga on Plant-Based Beverage Declines
NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga discusses the decline of plant-based beverage consumption in 2023 in an interview with RFD-TV. Fluid milk seized back market share last year as plant-based beverage volume sales fell to their lowest since 2019, led by a 10 percent drop in almond drinks.
NMPF’s Larson on Whole Milk for Healthy Kids Act in Senate
NMPF’s Claudia Larson, Senior Director for Government Relations and Head of Nutrition Policy, discusses the way forward for the Whole Milk for Healthy Kids Act in the U.S. Senate in an interview with the National Association of Farm Broadcasters. “The Whole Milk for Healthy Kids Act is a common sense approach to address this under consumption of critical nutrients because it expands the options that schools can choose to serve to include two percent and whole milk,” she said.
Setting the template for U.S. dairy in 2024
By Tony Rice, Trade Policy Manager, National Milk Producers Federation
While still historically strong, U.S. dairy exports this year are down from 2022’s record year, largely because of weaker global demand coupled with rebounded global supply. That doesn’t mean the U.S. isn’t making progress in overseas markets. Despite the headwinds, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are moving toward boosting exports by successfully fighting against nontariff barriers in key markets and promoting the U.S. dairy industry.
Below are key trade policy efforts that affected the U.S. dairy industry in 2023, just a sample of NMPF and USDEC policy activities.
Working every angle to support trade
NMPF has been active this year across six continents, engaging governments and local organizations. At home, NMPF’s trade policy team filed six sets of confidential comments and seven additional sets of public comments while sending 17 letters to U.S. government agencies on issues ranging from trade negotiations to supply chain challenges.
NMPF and USDEC have also strengthened ties and forged new partnerships with local and regional organizations worldwide to improve dairy consumption while pursuing projects in the United Kingdom, China, Thailand, the Philippines, and Taiwan to boost U.S. dairy competitiveness.
Landmark common names bill introduced
For more than a decade, the European Union has imposed its geographical indication (GI) rules on countries around the world, limiting the ability of U.S. producers of common name cheeses — such as “parmesan” or “feta” — to sell their products worldwide.
Following advocacy led by NMPF, USDEC, and the Consortium for Common Food Names, as well as partners in the food and wine sectors, a bipartisan congressional group introduced the Safeguarding American Value-Added Exports (SAVE) Act in May. The SAVE Act would amend the Agricultural Trade Act of 1978 to explicitly define “common names” and direct USDA to coordinate with the U.S. Trade Representative to proactively negotiate protections for common names.
Securing a critical cheesemaker right in federal court
European interests even tried to extend their GI campaign into the U.S. market when a European dairy organization attempted to trademark “gruyere.” NMPF and its partners fought this shameless attempt to confiscate a common cheese term and secured a final victory in March when a U.S. Court of Appeals found “gruyere” to be a generic term, upholding prior decisions. This final ruling sets a strong precedent for protecting common names and should discourage EU attempts to expropriate generic terms in the United States.
Championing expanded trade following USMCA ruling
NMPF and USDEC coordinated a November 27 industry letter to the President’s Export Council (PEC) supporting recommendations from NMPF member and PEC representative Land O’Lakes to bolster American agricultural trade by expanding market access opportunities and tackling nontariff trade barriers. The Council — the primary advisory committee on international trade — unanimously approved the recommendations on Nov. 29.
The vote followed a November 24 U.S.-Mexico-Canada Agreement (USMCA) dispute panel ruling that allows Canada to continue to restrict its dairy market access. The disappointing ruling followed years of NMPF advocacy on the issue. It is work that continues as NMPF urges the U.S. government to address Canada’s trade distorting practices.
Showcasing U.S. dairy to the world
For first time in 30 years, the World Dairy Summit took place in the United States, offering an opportunity to highlight the U.S. dairy industry’s world-class products, leadership on sustainability, and dedication to innovation to an audience of over 1,240 dairy professionals from more than 55 countries.
Hosted in Chicago in mid-October, NMPF played a leading role, co-chairing the conference and helping design the conference. Over the four days, attendees enjoyed dynamic programming, including opportunities to tour nearby farms.
This column originally appeared in Hoard’s Dairyman Intel on Dec. 11, 2023.
NMPF’s Bjerga on Trade, FMMO
NMPF Executive Vice President Alan Bjerga speaks with RFD-TV about how all of agriculture needs to fight for the integrity of trade agreements in the wake of a USMCA dispute panel decision that failed to protect U.S. access to Canada’s market. The President’s Export Council, with member co-op Land O’Lakes representing farmers, discussed the importance of market access in a White House meeting on Wednesday. Bjerga also talked about the resumption of the USDA Federal Milk Marketing Order hearing in Indiana this week, and how repeated delays aren’t helpful for milk producers.
NMPF Cheese Contest: A Tradition of Excellence
NMPF’s annual cheese contest, held in conjunction with its annual meeting, has evolved from a quality-improvement initiative to a showcase of some of the world’s top cheeses, as produced by NMPF member cooperatives. RFD-TV goes behind the scenes to talk with cheese judges, contest coordinators and winners to show how the contest — which now features other dairy products — encourages the best in NMPF co-ops, and the best in cheesemaking as well.
USMCA Dispute Panel Limits Canadian Market Access
Today’s ruling by a U.S-Mexico-Canada Agreement (USMCA) dispute panel allowing Canada to restrict the dairy access that the United States negotiated for in the USMCA pact weakens the agreement’s value to the US dairy industry, according to the National Milk Producers Federation and the U.S. Dairy Export Council.
An earlier panel ruled in January 2022 that Canada had improperly restricted access to its market for U.S. dairy products. In response, Canada made insufficient changes to its dairy tariff rate quota (TRQ) system, resulting in an outcome that still fell far short of the market access the U.S. expected to receive under USMCA. To address that shortcoming, the U.S. brought a second case to challenge the changes that Canada instituted. Today the panel announced that Canada was not obligated to make further changes.
“It is profoundly disappointing that the dispute settlement panel has ruled in favor of obstruction of trade rather than trade facilitation,” said Jim Mulhern, president and CEO of NMPF. “Despite this independent panel’s adverse ruling, we’d like to thank the Biden Administration and the many members of Congress who supported us for their tireless pursuit of justice for America’s dairy sector. We urge Ambassador Tai and Secretary Vilsack to look at all available options to ensure that Canada stops playing games and respects what was negotiated.”
Since the U.S. Trade Representative initially launched the first dispute settlement case against Canada in 2021, USDEC and NMPF have worked with USTR, USDA, and Congress to try to secure full use and value of USMCA’s dairy TRQs for American dairy producers and processors.
“By allowing Canada to ignore its USMCA obligations, this ruling has unfortunately set a dangerous and damaging precedent,” said Krysta Harden, president and CEO of USDEC. “We do however want to express our appreciation for allies in Congress and the Administration for their efforts and commitment to fighting for U.S. dairy. This is unfortunately not the only shortcoming in Canada’s compliance with its international commitments. We are committed to working with USTR and USDA to evaluate efforts to address Canada’s continued harmful actions that depress dairy imports while simultaneously evading USMCA’s dairy export disciplines.”
When first implemented in 2020, USMCA established 14 different TRQs, which allow a predetermined quantity of imports at a specified low tariff rate. The TRQ system that Canada implemented awarded the vast majority of TRQ volumes to Canadian processors and granted very limited access to TRQs to distributors – resulting in limited market access for U.S. exporters. Minor modifications to that system made in 2022 have continued that imbalanced approach.
NMPF Chairman Mooney Discusses Dairy’s Strength Through Consensus
NMPF Board of Directors Chairman Randy Mooney of Dairy Farmers of America explains the organization’s role as the essential advocate for dairy farmers in Washington and how the organization works with other groups to advance industry prosperity in an interview with RFD-TV. Mooney also talks about what challenges the industry faces and how resilience is the key to future success. The segment also highlights Prairie Farms’ overall win in this year’s NMPF cheese contest.
Overcoming challenges is what we do
By Randy Mooney, Chairman, NMPF Board of Directors
We’ve had a lot of achievements this year, but it’s also been a challenging time.
A year ago, costs on the farm were extremely high, but we had prices that would cover that. This year, costs are still high, but prices are down. That’s a lot of stress on the farm. And we’re also dealing with problems that we’ve dealt with for years.
There are labor problems; you just can’t find anybody to work. Supply chain disruptions are closer to the farm this year. It’s milk trucks getting milk off the farm; it’s feed trucks bringing feed into the farm. It’s getting simple parts that we took for granted we could get anytime we wanted to. There are geopolitical issues and extreme weather events.
We have challenges all the time, but it just seems like we continue to have more. It seems like we’re in the eye of a storm. But as farmers, we always anticipate a moment before the dawn, before things turn, before things get good again.
One of the things I’ve learned is that a lot of the world is envious of what we have.
They’re envious because we have the Farmers Assuring Responsible Management (FARM) Program, a self-governing program. We have a government that recognizes what we’re doing with sustainability — it’s not being mandated down from the top.
We’re taking care of our own. Today, we produce more milk using fewer and fewer natural resources. We’re revitalizing rural communities. For every dollar generated in dairy farming, it turns over three to seven times in local communities, generating $750 billion in the United States. That‘s pretty impressive.
We’re nourishing families around the world through milk’s unbeatable nutritional value. I’ve dairy farmed for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm. We’re putting the most nourishing, most nutritious product known to man in that milk tank. And when that truck leaves, I know I’ve done something good.
Our ability to evolve how we work and adapt our resiliency is becoming more and more important. This year, we came together as an industry to unite around issues that helped build that resiliency. NMPF worked with member co-ops, farm bureaus, and state dairy organizations to come to consensus on the most substantial issues. Even going back to 2021, when you talk about Federal Milk Marketing Order modernization, we’ve worked hard to get these things done. Nobody knows what the outcome’s going to be, but you telling your story has made a difference.
Beyond that, we’re going to get a farm bill passed — we’re going have an extension. We’ve been working to implement the next version of FARM, FARM 5.0, that goes into effect in July. We also will work on promoting dairy’s sustainable nutrition. Dairy offers the most complete nutritional package available, and what’s amazing is that as we produce more milk, we’ll continue to use fewer natural resources. That’s the definition of sustainable nutrition.
For years, we’ve talked about sustainability in terms of environmental stewardship and how that translates into financial value for farms. Now, the financial values are there. You take solar panels, wind, methane digesters, and a lot of things happen on a farm that’s generating electricity to run your farms and to run your neighbor’s households. We’re there now. What we need is conservation funding in the farm bill through USDA grants through state and federal programs. There’s real money available to help us continue to do that, and we will.
No imitation food from a nut, a bean, or grain can hold a candle to dairy’s nutritional package. We all know that. That’s why it’s important to keep fighting the fight on plant-based alternative labeling. In the guidance that was issued earlier this year, the Food and Drug Administration (FDA) recognized and admitted that plant-based alternatives are nutritionally inferior to real dairy.
Dairy protein plays a critical role in feeding people around the world, and it can’t be replaced by alternatives, including plant-based. Consumers have the right to understand how they’re nourishing their families, and we’re going to continue to advocate for the Dairy PRIDE Act to try to get that passed in Congress.
We’re going to continue to fight for more flavored milk in schools and higher fat levels, especially for those children whose main source of nutrition is through the school milk program. Milk is essential to their diets, and we’re not going to give up that fight. We’re all part of an industry that’s doing remarkable things. We are winning.
This has been adapted from Chairman of the NMPF Board of Directors Randy Mooney’s speech at the National Milk Producers Federation annual meeting in Orlando, Fla., on Nov. 14, 2023. This column originally appeared in Hoard’s Dairyman Intel on Nov. 22, 2023.
Douglass, an NMPF Young Cooperator, Discusses Dairy Leadership
Sarah Douglass, a northeast Ohio dairy farmer and an NMPF Young Cooperator, talks about the crucial issues facing younger farmers and the importance of training the next generation of dairy leaders, in an interview with RFD-TV. Douglass spoke at NMPF’s annual meeting in Orlando, which features two days of programming specifically directed at younger dairy leaders.
