NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga takes viewers on a tour of the Dairy Experience at this week’s Joint Annual Meeting in Orlando, FL. From information booths to ice cream, this year’s event brought together a diverse dairy community, showing farmer unity and industry pride during a time of transition at NMPF.
Author: Alan Bjerga
NMPF’s Mulhern Reflects on Policy, Legacy
NMPF President & CEO Jim Mulhern, who is retiring at the end of this year after a decade at the helm of the organization, discusses dairy’s current policy challenges in an interview with RFD-TV. “A lot of this focus of the farm bill for us is in the bucket of either economic risk management issues, conservation issues, trade issues, and nutrition,” he said. “I would say the biggest challenge for the future is to lean in, to take on the challenges that we all see out there and look for workable solutions.”
Dairy is a staple in spite of inflation
By Allison Wilton, Coordinator, Economic Policy and Global Analysis, NMPF
U.S. dairy consumption has been steadily rising for years, reaching more than 11.5 million metric tons (milk solids equivalent) in 2022. This is up 15% from ten years ago. As one of the highest dairy consuming countries in the world, U.S. per capita consumption of cheese, yogurt, and butter has grown steadily for years. Recent food trends are bringing fun and innovative twists on common dairy products; as examples, butter boards went viral last year as a new “charcuterie” option, and health influencers are raving about the benefits of adding cottage cheese into recipes for higher protein and healthy fats. Ultimately, dairy demand remains resilient even when facing significant headwinds.Dairy’s resiliency is true on a global basis, too. On average, 13% of the global consumer’s protein came from dairy in 2022, a rise compared to 2021 and a significant leap over the past decade. In fact, global dairy protein consumption has grown by nearly 25% over the last decade.
Still, despite that resiliency, inflation and economic uncertainty have affected consumers and the dairy industry.
Inflation had mixed effects
In 2022, consumers started to really take notice of rising grocery and food costs. Prices for goods across all categories, not just dairy, were starting to climb more than usual due to several factors, including the ongoing COVID-19 pandemic and international supply chain disruptions. Inflation reached a peak in summer of 2022, and though it has eased slightly since, prices are still significantly higher compared to three years ago.
Source: NMPF-USDEC, IRI, NPD
Grocery and food items were some of the most prevalent and hardest hit areas by inflation, and dairy products were not immune. The price of dairy in food and beverage stores rose by more than 15% in 2022 compared to 2021, the highest jump in prices of all categories. The value of dairy sales grew significantly in 2022. Even so, and although this can partially be attributed to the higher prices, the growth in dairy sales (up 14.7%) outpaced that of non-dairy categories (8.3% greater).
Additionally, though all categories’ volume fell, the volume of dairy products sold fell less than that of non-dairy products. In other words: even though dairy had higher inflation rates, the slide in volume sold was less than the dip of other food and beverage categories. Shoppers were continuing to put dairy products in their cart despite the higher prices. That’s a testament to the dairy’s place as a dietary staple for many around the country and the world.
Dairy demand persists
Consumers prefer dairy products over plant-based alternatives: sales of cheese, frozen products, and other dairy goods dwarf plant-based imitations in stores. As even more alternatives fill shelves, dairy doesn’t lose shelf space. Rather, per capita consumption in several areas have grown, including cheese (up 17% from 2020), yogurt (up 5%), and butter (up 21%). The dairy aisle remains of top value when compared to other aisles within major food and beverage stores and is one of the fastest growing aisles in terms of sales dollars, topping $75 billion in 2022.
Cheese is expected to grow only more popular as time goes on, as is butter and yogurt. The U.S. dairy industry is poised to meet this demand as the industry advances in the coming years. As inflation wanes, consumers may return to trying higher value dairy products, of which there is no shortage. U.S. dairy will continue to be a major part of consumers’ diets and shopping carts.
This column originally appeared in Hoard’s Dairyman Intel on Nov. 9, 2023.
NMPF’s Bjerga on Perceptions of Dairy, Agriculture in Wartime
NMPF Executive Vice President Alan Bjerga discusses how agriculture and food thought leaders perceived dairy during his recent participation in the World Food Prize in Des Moines, IA, detailing some of the misconceptions found on dairy’s sustainability and role in food security. He also discusses the challenges farmers are facing in conflict zones, including recent attacks in Israel and the ongoing war in Ukraine, in an interview with WEKZ Radio.
NMPF’s Bjerga on Global Food Security and Dairy’s Role
Author of the book “Endless Appetites” and NMPF Executive Vice President for Communications and Industry Relations Alan Bjerga speaks on trends in global food security from the World Food Prize in Des Moines, IA, with RFD-TV. Bjerga also discusses how dairy and animal agriculture are an important part of food security solutions both through nutrition and job creating, pointing out how livestock farming can be done sustainably and noting dairy’s role in furthering that goal.
USDEC’s Harden discusses USDA Support for Trade
Krysta Harden, president and CEO of the U.S. Dairy Export Council, discusses the value of USDA support for U.S. agricultural exports in an interview with RFD-TV from the World Food Prize in Des Moines, IA. The department said Oct. 24 it plans to devote $2.3 billion from the Commodity Credit Corporation to promoting better market opportunities for U.S. agricultural producers and expanding food aid to support communities in need around the world, a move advocated for by NMPF and USDEC.
NMPF’s Jonker brings the IDF World Dairy Summit home
NMPF Chief Science Officer Jamie Jonker connects the themes of the World Dairy Summit, which concluded in Chicago on Thursday, to advancing the interests of U.S. dairy farmers. The summit, hosted by the United States for the first time since 1994, had attendees from 55 countries and activities from technical panels to farm tours.
USDEC’s (and DFA’s) Peterson discusses U.S. dairy leadership
U.S. Dairy Export Council Chairman and farmer-member of the Dairy Farmers of America cooperative Alex Peterson discusses how the International Dairy Federation World Dairy Summit has given dairy experts around the world insights into the success U.S. dairy farmers have had in nourishing consumers and leading in agricultural sustainability and efficiency. Peterson speaks with RFD-TV.
NMPF’s Vitaliano Says Dairy Farmers Strongly Behind FMMO Modernization
USDA’s Federal Milk Marketing Order hearing will continue following a recess through the Thanksgiving holiday. Peter Vitaliano, National Milk Producers Federation Vice President of Economic Policy & Market Research, says the hearing is making progress and that farmers are still solidly behind changes to the FMMO system. “The producer groups are together. That’s the key thing,” he said. “The producers are the ones who vote for federal orders.”
NMPF’s Jonker Welcomes the World to U.S. Dairy
NMPF Chief Science Officer Jamie Jonker discusses the International Dairy Federation World Dairy Summit taking place in Chicago this week in an interview with RFD-TV. The summit, which is being hosted by the United States for the first time since 1994, brings together dairy experts from around the world and is proving to be a great showcase for U.S. dairy excellence.
Forward Movement on feed management
By Paul Bleiberg, Executive Vice President for Government Relations, National Milk Producers Federation
Today’s political climate seems to feature one surprise after another. Congress shocked the country late last month by voting in an overwhelmingly bipartisan fashion to avert a government shutdown that had been considered all but guaranteed. Another jolt came three days later when the House voted for the first time in American history to remove its speaker — all because he allowed the shutdown to be averted!
But even as shocking headlines seem to become the norm, important bipartisan policy work is quietly, gradually advancing. The National Milk Producers Federation (NMPF) has continued its efforts in 2023 to enact policies that position dairy farmers to fulfill their goal of becoming greenhouse gas neutral or better by 2050. A cornerstone of this goal is feed management to reduce enteric methane emissions, which can comprise as much as one-third of a dairy farm’s greenhouse gas footprint.
To make successful feed management a reality, NMPF is pursuing a two-step strategy. The first is securing Food and Drug Administration (FDA) approval of animal feed additives that can reduce enteric emissions. The second is using United States Department of Agriculture (USDA) conservation programs to get these innovative animal feed ingredients into enterprising producers’ hands. This year has been marked by critical progress on both steps.
In June, the Senate HELP Committee passed the Innovative FEED Act by a bipartisan of 19 votes to 2 votes. This important bill, led by Senators Roger Marshall (R-KS) and Tammy Baldwin (D-WI) would provide clear direction for the FDA to review promising animal feed ingredients in a safe but expeditious manner, getting them to market faster than animal drugs to help U.S. dairy farmers remain competitive globally. NMPF is working closely with partners in agriculture and conservation to enact this bill into law this year.
Then, just last month, USDA formally recognized feed management as a climate-smart conservation practice, better positioning dairy farmers to seek conservation support for voluntary uptake of animal feed ingredients. In that spirit, several NMPF members and partners have applied for Regional Conservation Partnership Program funding for the 2023 fiscal year to support dairy farmers who want to be on the front end of the rapid uptake of new feed additives.
Dairy farmers have long been environmental stewards who adapt to new technologies and opportunities. Important progress made on feed management this year, on Capitol Hill and at USDA, is setting the stage for continued innovation on the dairy farm for many years to come.
This column originally appeared in Hoard’s Dairyman Intel on Oct. 16, 2023.
NMPF’s Bjerga on How to Learn More About FMMO
NMPF Executive Vice President for Communications and Industry Relations Alan Bjerga offers an update on where the USDA’s Federal Milk Marketing Order hearing stands as it goes on hiatus until late November. Bjerga also discusses the importance of the IDF-World Dairy Summit in Chicago and where the public can go to learn more about the FMMO discussion, in an interview with WEKZ radio, Janesville, WI.
