Concerns about protectionist Canadian dairy policy reached new heights last month as NMPF led an expanding coalition of companies and organizations sounding the alarm about Canada’s violations of its dairy trade commitments. At issue is the imminent national implementation of a Canadian dairy pricing program that started last year in Ontario, intended to unfairly subsidize Canadian dairy products both within and outside of Canada.

A group of 17 NMPF and U.S. Dairy Export Council (USDEC) member companies, representing dairy farmers, cooperatives and processors, asked governors in 25 states last month to put pressure on Canadian policymakers to maintain their nation’s market access to the United States. The companies said the states need to speak out in light of Canadian intentions to proceed with the enactment of a pricing program that will slash dairy protein exports from the United States, as well as allow Canada to dump its excess dairy proteins on the world market. NMPF also conveyed this message to state agriculture leaders when speaking at the National Association of State Departments of Agriculture meeting on Feb. 1.

The NMPF-led coalition told governors that trade “cannot be a one-way street, with Canada expecting to enjoy the benefits of exporting its products of interest to our market, while denying a sector accounting for hundreds of thousands of jobs in rural America reliable access to the Canadian market.” The letter was sent to governors in Arizona, California, Colorado, Idaho, Iowa, Indiana, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Vermont, Virginia, Washington and Wisconsin.

NMPF President and CEO Jim Mulhern noted that, given the current trade climate across North America, “it is foolhardy for Canada to continue provoking the United States with a course of action that so blatantly violates our trade agreements. We need our nation’s governors to join in our call for Canada to step back from the brink of what it is about to do and take steps to remind Canada how critical trade is to its own interests as well.”

NMPF is continuing to work in concert with USDEC, the International Dairy Foods Association and the National Association of State Departments of Agriculture to underscore how dysfunctional the dairy trading relationship with Canada has become and how urgently work is needed to reform that harmful dynamic. 

President Donald Trump has chosen former Georgia Gov. Sonny Perdue to head the U.S. Department of Agriculture (USDA), a moved hailed last month by NMPF as important to the future of American agriculture policy.  NMPF has urged the Senate to swiftly confirm Perdue as Agriculture Secretary in the coming weeks, as other new members of the Trump cabinet begin their roles.

Perdue brings a strong background in farming as well as government administration to USDA.  He served from 2003-2011 as the governor of Georgia, where agriculture is the state’s leading industry.  Prior to that, Perdue was a state legislator and small businessman. He is also a trained veterinarian, which gives him unique insights into the issues facing America’s livestock producers in the areas of animal health, food safety and the environment, according to National Milk.

Perdue’s role as the chief advocate for farmers and rural America is crucial in this new administration, especially at a time of stress in farm milk prices, NMPF President and CEO Jim Mulhern said in backing Perdue for the position.

“Starting right away, NMPF will seek to collaborate with Secretary Perdue and his agency on ways to strengthen the safety net for dairy farmers, relieve regulatory burdens and enhance opportunities to keep and grow markets abroad for our dairy exports,” he said.

NMPF also welcomed Perdue’s predecessor at USDA, former Agriculture Secretary Tom Vilsack, to his new role as President and CEO of the U.S. Dairy Export Council (USDEC), which shares offices in Arlington with NMPF.

“We are thrilled Tom Vilsack will dedicate his talents in the coming years to expanding opportunities across the globe for America’s dairy farmers,” Mulhern said.  Vilsack started Feb. 1 as head of USDEC, which works closely on trade issues with NMPF.

“Secretary Vilsack arrives at USDEC at a pivotal time, as we continue to face both challenges and opportunities to expanding U.S. dairy exports,” Mulhern said. “Secretary Vilsack’s familiarity with our trading partners provides him with a strong background to advance the programs of USDEC and its members in the future.

National Milk’s efforts to spur enforcement of milk labeling standards took a major leap forward last month with the introduction of companion bills in the Senate and House that would direct the Food and Drug Administration (FDA) to police the misuse of dairy-specific terms.

NMPF has pushed the FDA for many years to take action against plant-based imitators that are mislabeling their packages, and worked last month with leaders in both congressional chambers to formulate the legislation, creating new momentum in the ongoing labeling enforcement campaign.

Sen. Tammy Baldwin’s (D-WI) DAIRY PRIDE Act, introduced in mid-January, would protect the integrity of dairy standards by requiring that the FDA develop a 90-day timetable for enforcement actions against vegetable-based milk imitators made from non-dairy ingredients like almonds, rice and soy. Her bill also would require that the FDA report to Congress two years after the bill’s enactment to explain its enforcement actions.

Meanwhile, an identical, bipartisan bill was introduced on Jan. 31 in the House by Reps. Peter Welch (D-VT), Sean Duffy (R-WI), Mike Simpson (R-ID), Joe Courtney (D-CT), David Valadao (R-CA) and Suzan DelBene (D-WA). NMPF President and CEO Jim Mulhern praised the lawmakers for their work on this important issue.

“For too long, the FDA has turned a blind eye to the misbranding of imitation dairy products, despite the decades-old federal law that milk comes from animals, not vegetables or nuts,” he said. “Real milk has been recognized for decades for its important nutritional benefits. These imposter products almost always use dairy imagery, similar packaging and names – but they never match the nutritional benefits found in milk.”

Current regulations (CFR 131.110) define milk as a product of a cow. Though existing federal policy is clear on this subject, FDA has not challenged the labeling practices of imitators made out of nuts, beans, seeds and grains. NMPF has noted how the United States’ lack of enforcement efforts differs greatly from those in similar nations, which actively enforce standards of identify. While the term “almond milk” is seen on products sold in the United States, it is absent from the same brand of almond beverage sold in Canada and the United Kingdom.

ARLINGTON, VA –The National Milk Producers Federation today urged the Senate Agriculture Committee to swiftly confirm former Georgia Gov. Sonny Perdue as the next U.S. Secretary of Agriculture, as NMPF, its 29 member cooperatives and numerous state dairy associations joined more than 600 other farm and agriculture groups in a letter endorsing Perdue for the position.

In backing Perdue’s nomination, NMPF told Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) that the former Georgia governor’s extensive experience in public policy, business and agriculture provides him with the proper skills to be the next Agriculture Secretary. In addition to serving as governor for eight years, Perdue is the founder of three agribusiness firms and was trained as a veterinarian.

“Gov. Perdue is a small businessman from an agricultural state, who appreciates the challenges our industry is facing, both today and in the future,” said NMPF President and CEO Jim Mulhern. “The new secretary will have many issues on his plate of great concern to dairy farmers, such as fixing the dairy safety net program, developing export markets, updating child nutrition policies, helping ensure that we have agricultural workers, and implementing new food labeling laws. We will be working closely with him on these and other issues in the coming months.”

The letter noted that, as the former governor of a state that produces billions of dollars in food, fiber, specialty crops, nursery crops, dairy products, poultry and livestock each year, “Gov. Perdue understands the critical role of feeding our country and the world. He is also keenly aware of the importance of agriculture in powering our nation’s economy, providing jobs from farm to table.”

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more on NMPF’s activities, visit our website at www.nmpf.org.

On his first Monday in the White House, President Donald Trump recently signed an executive order officially abandoning the Trans-Pacific Partnership. This action raised as many questions as it answered about the future of trade policy in the new administration.  It certainly signals that America’s approach to global trade policy will undergo a serious re-examination, and face a more critical assessment than at any point in the past five decades.

Both on the campaign trail and during his inaugural address, President Trump made it clear that trade policy is a top priority, and that he intends to look at trade deals through a different lens than his predecessors.  For the U.S. dairy sector, the challenge and the opportunity going forward will be reminding policy makers that trade – and the ability to export our products – is absolutely essential to the future of our farms, as well as our cooperatives and proprietary processors.

It wasn’t that long ago our industry maintained a “Fortress America” mentality that some in today’s dairy industry can still recall. During my first stint at NMPF, in the mid-1980s, the domestic dairy sector had that same mindset—one that is much different than where we are today.  We exported very little, and employed import quotas to minimize competition from the rest of the world.  For the most part, other countries with dairy sectors took the same approach.  

The catalytic effect since the 1990s of the passage of NAFTA and other regional trade agreements, the establishment of the World Trade Organization, the formation of the U.S. Dairy Export Council, and the advancement of NMPF’s trade policy initiatives, all have led to the U.S. becoming an integral, indispensable part of global dairy trade.  One day’s worth of all the milk produced in the U.S. each week is exported, and because of our industry’s incredible productive capacity we need more – not fewer – opportunities to boost that ratio even higher. 

The U.S. dairy sector has been a clear winner from global trade, as improved policies and a focus on export marketing has opened new doors for “Made in America” dairy foods.  The same can be said for many other U.S. agricultural commodities – from grains and oilseeds to beef and pork.

As I noted in a letter sent to the new President after the November election, our dairy exports are worth more than $5 billion annually, generating 120,000 jobs in dairy farming, manufacturing and related sectors.  Any disruption in exports of dairy would have a devastating ripple effect on our farms and beyond, to workers in processing, transportation, and countless other sectors whose jobs are supported by these exports.  The valuable economic relationships we have with countries such as Mexico, Japan, South Korea, and China when it comes to our dairy exports must be preserved and enhanced.  We saw what happened to our domestic milk prices in 2009, and again in 2015, when the U.S. lost market share in the global dairy trade. 

For dairy and much of agriculture, a large measure of our future growth opportunities resides outside of our borders.  We will need the right combination of market development, favorable exchange rates, and the negotiation of new agreements – as well as strict enforcement of existing ones – to keep fueling the economic health of the dairy sector.

Last month, National Milk and the U.S. Dairy Export Council (USDEC) urged President Trump to pursue new, viable trade deals with countries in the Pacific Rim, and emphasized the critical importance of protecting our trade with Mexico, one of agriculture’s most beneficial relationships.  For the U.S. dairy industry, Mexico represents our number-one market, totaling $1.2 billion in 2016. Any policy or action that disrupts our trade with Mexico would cause severe and immediate harm to U.S. dairy farmers and processors.

While Mexico has been an incredibly valuable trading partner for dairy, Canada, by sharp contrast, has habitually worked to undermine dairy trade.  We continue to witness a backsliding by Canada in its already agreed-to market access for U.S. products.  Canada’s new national ingredients strategy is expressly intended to both slash the importation of milk proteins from America, and create a new mechanism to dump milk proteins on the world market.  This is precisely the type of protectionist, anti-competitive behavior on which the new Administration must focus. 

So, as a re-examination of NAFTA gets underway, our industry will be working closely with the Administration and Congress to demonstrate the importance of Mexico to rural America, and at the same time evaluate how to improve NAFTA by renegotiating trade provisions with Canada.

NMPF’s focus this year on expanding export opportunities for dairy products will be in concert with our long-standing partner organization on trade issues, USDEC – and its new President and CEO, former Agriculture Secretary Tom Vilsack.  Vilsack’s familiarity with our trading partners provides him a strong background to advance the work of USDEC, which complements NMPF’s advocacy on trade policy.  

We also anticipate having a vocal champion for farm trade in our new Agriculture Secretary nominee, Sonny Perdue, who as Governor of Georgia for eight years was active in building new markets for agricultural products, his state’s number-one industry. In addition, we look forward to working closely with incoming U.S. Trade Representative Robert Lighthizer, who will lead new trade policy negotiations and has extensive experience dealing with complex trade issues.

Clearly what’s needed for not only the U.S. dairy industry, but also for all of U.S. agriculture, is a pragmatic approach to trade policy: an approach that works to fix the problems that need to be fixed, while preserving and enhancing opportunities that are already working.  We’re looking forward to working with the new administration to put such an approach into action.

ARLINGTON, VA – The National Milk Producers Federation today endorsed new legislation introduced in the House of Representatives that would prompt the enforcement of dairy labeling terms, which are increasingly being used to market imitation products containing no real dairy ingredients.

Introduced by Reps. Peter Welch (D-VT), Sean Duffy (R-WI), Mike Simpson (R-ID), Joe Courtney (D-CT), David Valadao (R-CA) and Suzan DelBene (D-WA), the House bill would compel the Food and Drug Administration (FDA) to take action against misbranded, plant-based beverages that are inappropriately using dairy terms, especially “milk.” The measure requires the FDA to issue guidance for nationwide enforcement of these definitions within 90 days. It would also require FDA to report to Congress two years after the bill’s enactment to hold the agency to its obligations.

The House bill mirrors Sen. Tammy Baldwin’s (D-WI) DAIRY PRIDE Act, introduced two weeks ago in the Senate.

“Real milk has been recognized for decades for its important nutritional benefits,” said NMPF President and CEO Jim Mulhern. “These imposter products almost always use dairy imagery, similar packaging and names – but they never match the nutritional benefits found in milk. This House legislation sends a clear message that plant-based foods should not be able to create and use nomenclature that is in conflict with existing federal standards of identity requiring the presence of real milk.”

FDA regulations (CFR 131.110) define “milk” as a product of a cow, with similar definitions for yogurt and cheese products. Though existing federal policy is clear on this subject, FDA has not challenged the labeling practices of imitators made out of nuts, beans, seeds and grains, which have been branding themselves using dairy-specific terms for the past two decades, according to NMPF.

The lack of enforcement of proper dairy terms in the United States market differs from to how the matter is handled in similar nations, which actually police the matter closely. While the term “almond milk” is seen on products sold in the United States, it is absent from the same brand of almond beverage sold in Canada and the United Kingdom.

In December, Reps. Mike Simpson (R-ID), Peter Welch (D-VT) and a bipartisan coalition of 32 House members sent a letter to FDA urging the agency to more aggressively police the improper use of dairy terminology. NMPF also supported that effort.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more on NMPF’s activities, visit our website at www.nmpf.org.

(Washington, D.C.) The U.S. dairy industry this week continued to push back against Canada’s protectionist policies that are effectively blocking American dairy imports into the country in violation of international agreements. A group of 17 dairy companies representing dairy farmers and processors from coast to coast asked governors in 25 states to urge Canadian policymakers to uphold existing trade commitments with the United States and halt the imminent implementation of a national strategy that would unfairly subsidize Canadian dairy products in its domestic and global markets.

“[U.S.-Canada] trade cannot be a one-way street with Canada expecting to enjoy the benefits of exporting its products of interest to our market while denying a sector accounting for hundreds of thousands of jobs in rural America reliable access to the Canadian market,” the group said in its letter to the governors. “[An existing provincial] program has already cost U.S. companies tens of millions of dollars in exports, thereby harming the dairy farmers, dairy plant employees and rural communities that depend on the benefits those foreign sales bring.”

Beginning Feb. 1, Canada is poised to expand the product scope of that provincial program while instituting it nationally. It also intends to disrupt skim milk powder markets around the world by using the new program to dump excess milk powder on global markets.

The 17 dairy companies sent the letter to governors in states with significant numbers of dairy farms and dairy processing companies because of the damage Canada’s policies have had already or are poised to have on these farms and companies, as well as their employees and many communities. The letter urges state officials to “consider all tools at their disposal to ensure Canada understands the seriousness of this issue.” The states are Arizona, California, Colorado, Idaho, Iowa, Indiana, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Vermont, Virginia, Washington and Wisconsin. Read the letter here.

Earlier this month, U.S. dairy organizations and state departments of agriculture across the country sent a similar letter to President Donald Trump that said Canada’s protectionist policies are in direct violation of its trade commitments under the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). The organizations urged the president and his key cabinet members to take immediate action. The letter to Trump was signed by the International Dairy Foods Association (IDFA), the National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the National Association of State Departments of Agriculture (NASDA).

“In the current trade climate across North America, it is foolhardy for Canada to continue provoking the United States with a course of action that so blatantly violates our trade agreements,” said Jim Mulhern, president and CEO of NMPF. “We need our nation’s governors to join in our call for Canada to step back from the brink of what it is about to do and take steps to remind Canada how critical trade is to its own interests, as well.”

“Despite Canada’s efforts to distance itself from the administration’s focus on enforcement and improving how NAFTA functions, it is Canada – not Mexico – that has time and again chosen to disregard its dairy trade commitments to the United States and intentionally dismiss serious concerns from the United States about the impact its dairy policies are having on trade,” said Matt McKnight, acting Chief Operating Officer of USDEC. “Canada should take a page out of Mexico’s book and hold up its end of the bargain to us on dairy trade.”

“The U.S. dairy industry is united on this issue because these policies and incentives severely hinder U.S. exports to Canada and threaten our ability to remain competitive in markets around the world,” said Michael Dykes, D.V.M., president and CEO of IDFA. “IDFA will continue to speak out against Canada’s protectionist policies on Capitol Hill, with members of the Trump Administration and among state governors and legislators, while asking for changes that will force Canada to honor its trade commitments and allow more access for U.S. dairy products.”

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About NMPF
The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance the wellbeing of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. Visit www.nmpf.org for more information.

About USDEC
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. USDEC accomplishes this through programs in market development that build global demand for U.S. dairy products, resolve market access barriers and advance industry trade policy goals. USDEC is supported by staff across the United States and overseas in Mexico, South America, Asia, Middle East and Europe.

About IDFA
The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industries and their suppliers, with a membership of nearly 525 companies within a $125-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation (MIF), the National Cheese Institute (NCI) and the International Ice Cream Association (IICA). IDFA’s nearly 200 dairy processing members run nearly 600 plant operations, and range from large multi-national organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese, ice cream and frozen desserts produced and marketed in the United States. IDFA can be found online at www.idfa.org.

ARLINGTON, VA –  The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today urged the Trump Administration not to retreat from pursuing new trade opportunities in the Pacific Rim, and to protect the agricultural trade relationship between the United States and Mexico.

The dairy groups spoke out Monday as President Trump formally withdrew the United States from the 12-nation Trans-Pacific Partnership (TPP) agreement, which NMPF and USDEC had supported because it contained benefits for America’s dairy farmers. A retreat from TPP “must not lead to a retreat from economic engagement with growing Asian markets for American dairy products,” said NMPF President and CEO Jim Mulhern.

“While we recognize that TPP as it now stands has no path forward, we urge the Trump Administration to look for future opportunities to increase our dairy exports in Asia and around the world. Our competitors have been successfully negotiating trade agreements over the past several years. This puts the U.S. agriculture sector at a competitive disadvantage if we don’t pursue our own initiatives,” he said.

The Trans-Pacific Partnership “was far from perfect, but was beneficial to the U.S. dairy sector because in addition to new market access, it also made significant progress in focusing on other barriers, including sanitary/phytosanitary standards, as well as the abuse of geographical indications to block competition in common food categories,” said Matt McKnight, Acting Chief of Staff for USDEC.

He said one approach the new administration could take is to replace TPP with bilateral agreements with countries such as Japan, Vietnam and others in Southeast Asia.

NMPF and USDEC on Monday joined 130 other farm and food organizations in calling on President Trump to preserve hard-fought agriculture market access in Mexico, which is the No. 1 market for U.S. dairy exports, totaling $1.2 billion in 2016.

“The North American Free Trade Agreement (NAFTA) has opened a major door to Mexico that we don’t want slammed shut,” Mulhern said.

“In contrast, Canada, the other NAFTA party, has habitually and deliberately worked to undermine dairy trade. We have been very vocal in the past year that Canada is not living up to its dairy market access opportunities for the United States. This issue must be on the table in any discussion about the future of NAFTA.”

McKnight noted that “the U.S. dairy sector exports 15 percent of its milk production, or one day’s worth of milk production out of each week. In 2015, those exports were worth over $5 billion, and helped generate more than 120,000 jobs in dairy farming, manufacturing and related sectors.”

He said the groups will continue to press lawmakers on the important link between export sales and dairy job growth in the United States.

From Jim Mulhern, President and CEO of NMPF:

“America’s dairy farmers are looking forward to working with Secretary of Agriculture-designate Sonny Perdue, whose role as the chief advocate for farmers and rural America is absolutely crucial in the new Trump Administration, especially when milk prices have been in a prolonged slump.

Former Gov. Perdue is well-qualified to run the U.S. Department of Agriculture as a result of his eight years of executive experience as Georgia’s governor, and his career as a state legislator and small businessman.  His educational training as a veterinarian also gives him unique insights into the important issues facing America’s livestock producers in the areas of animal health, food safety and the environment.

Dairy producers, like most other farmers and ranchers across America, have experienced significant economic challenges for more than a year. Starting right away in 2017, NMPF will seek to collaborate with Secretary Perdue on ways to strengthen the safety net for dairy farmers, relieve regulatory burdens and enhance opportunities to keep and grow markets abroad for our dairy exports.

In particular, we will continue to advise the Agriculture Department on efforts to improve the dairy Margin Protection Program to best benefit America’s dairy producers. We will also continue our dialogue with USDA and others in the Trump Administration on the importance of enforcing previous trade agreements, as well as pursuing future well-negotiated trade agreements that bolster our ability to serve consumers in foreign markets.

We’re excited to work with Gov. Perdue on these challenges and opportunities in the days ahead.”

From Jim Mulhern, President and CEO of the National Milk Producers Federation

“Tom Vilsack has a remarkable record of accomplishment working on behalf of American agriculture during the past eight years, and we are thrilled he will dedicate his talents in the coming years to expanding opportunities across the globe for America’s dairy farmers.

NMPF’s leadership on trade policy has benefited tremendously from the long-standing partnership we have had with USDEC on this key industry priority area. The unity developed through this important relationship has fostered an approach to dairy trade policy that has helped producers and processors.  Our joint work has provided a strong complement to USDEC’s broader market development efforts designed to expand U.S. dairy exports.

Secretary Vilsack arrives at USDEC at a pivotal time, as we continue to face both challenges and opportunities to expanding U.S. dairy exports.  Secretary Vilsack’s familiarity with our trading partners provides him with a strong background to advance the programs of USDEC and its members in the future.

The U.S. Dairy Export Council was formed 22 years ago by Dairy Management Inc. to create a unique new platform to promote American dairy products, at a time when the U.S. was a minor player in international dairy markets.  The U.S. dairy sector today is an export powerhouse, selling nearly 15% of our milk production to foreign customers.

We are looking forward to a mutually-beneficial partnership with Mr. Vilsack in his role as ambassador for America’s dairy exporters.”