WASHINGTON, D.C. – New Senate legislation to enforce the proper labeling of imitation dairy products drew an endorsement today from the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF), which together agreed that steps need to be taken to defend the integrity of federal food labeling standards and prevent the misbranding of dairy imitators.

Sen. Tammy Baldwin’s (D-WI) DAIRY PRIDE Act would protect the integrity of food standards by prompting the Food and Drug Administration (FDA) to enforce existing labeling requirements, specifying foods labeled as “milk” and “cheese” have to come from dairy animals. The Baldwin bill would require FDA to issue a guidance for nationwide enforcement of these definitions within 90 days. It also would require FDA to report to Congress two years after the bill’s enactment to hold the agency accountable for this update in their enforcement obligations.

According to NMPF President and CEO Jim Mulhern, “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. None of these imitators provides the same high quality and quantity of nutrition offered by real milk. Sen. Baldwin’s DAIRY PRIDE Act will simply ensure that FDA enforces current law by requiring marketers of these imitation products to call them something other than milk.”

FDA regulations (CFR 131.110) define milk as a product of a cow, with a similar stipulation for yogurt and cheese. Though existing federal policy is clear on this subject, FDA has not challenged the incorrect use of the terms “milk,” “yogurt” and “cheese” on imitators that have proliferated during the past two decades, according to the dairy industry.

“These plant-based products are imitations, but they are not substitutes for the comprehensive nutrient package offered by real milk,” said Michael Dykes, president and CEO of IDFA.  “The reason we have food standards is to preserve the integrity and consistency of what’s inside the packages. Milk should be milk.”

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

The Baldwin legislation comes one month after Reps. Mike Simpson (R-ID) and Peter Welch (D-VT), supported by a bipartisan coalition of 32 other members of the House, sent a letter to FDA urging the agency to more aggressively police the improper use of dairy terminology.

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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 550 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.

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.

When I returned to NMPF four years ago to lead the organization, I was initially a bit surprised at the amount of time I was spending on the issue of animal care. Through my many years of work with the dairy producer community, I was well aware of the high level of quality care provided to animals on our nation’s dairy farms. Well cared-for cows are essential to a farm’s future – only healthy cows produce high quality and quantities of milk, the lifeblood of every dairy.

Because of this, I knew we had a good story to tell about the care of animals on those farms. But that’s not the story many consumers were hearing. Instead, years of attacks by agenda-driven animal rights activists had raised questions for many consumers about the care of dairy cows. Isolated and unacceptable incidents of mistreatment were being falsely presented as routine practice.

At that time, our industry’s program of animal care standards, the National Dairy Farmers Assuring Responsible Management (FARM) Program, was in its early stages – just three years old – and covered less than half the nation’s milk supply. Due to years of hearing only negative stories from activists regarding dairy animal care, consumers and customers were raising lots of concerns. Our largest dairy customers were looking for additional assurances that dairy cows were being properly cared for, and that their brands’ reputations would be safe from attacks.

Without the assurances that things were being done right on farms, many of our customers contemplated forming their own animal care programs. This would have created a completely untenable situation: a hodgepodge of separate animal care programs would have been an impossible burden for dairy farmers, cooperatives, processors and retailers.

This month, the third and latest version of the FARM Animal Care program arrives with almost universal – 98 percent – participation of the nation’s milk supply. Today, the program — and dairy farmers’ adherence to it — enjoys wide recognition, endorsement and praise from our customers, large and small. What was once a point of consternation and frustration is now a source of renewed trust and appreciation; our customers are grateful for our industry’s leadership and proactivity on the issue of animal care. But more critically, many are excited to share the story of FARM and the top-notch animal care dairy farmers provide.

The 3.0 versions of FARM Animal Care’s Reference Manual and evaluation checklist have been shaped and developed by years of scientific research and practical on-farm experience, overseen by a Technical Writing Committee of farmers, animal scientists, dairy veterinarians and cooperative leaders.

The new version debuting this year reflects continued feedback on a variety of items that will ensure the confidence of our customers and consumers about dairy. These include the importance of farmers having relationships with veterinarians in overseeing animal care; formal employee training in animal care; as well as the cessation of the practice of routine tail docking.  Starting this month, farms not in compliance with these areas will have a designated amount of time to make improvements in order to maintain their good standing within the FARM Animal Care program.

Change always brings about challenges, and I know that these changes will be a challenge for some. They were not made without considerable deliberation and desire for balance. But to maintain the credibility of a program focused on continuous improvement, changes to the FARM Animal Care program had to be based on the science and guidance from the FARM Technical Writing Committee, National Milk’s Animal Health and Well-Being Committee, and the NMPF Board of Directors. Without these changes, FARM would have lost the support of some of our industry’s largest milk buyers. Losing that endorsement would have risked the escalation of individual food company mandates directed at dairy animal care, greatly expanding the costs and hassle to farmers having to comply with multiple animal care programs managed by different dairy buyers.

The consequences of not acting prudently and proactively on any element of animal care, but rather only reactively and defensively, can be seen across the food industry on a regular basis. Whether through activist activity, customer demands or for marketing distinctions, major U.S. companies are exerting continued pressure to change animal care practices on poultry and livestock farms. By 2022, McDonald’s will only buy pork from farmers who do not use gestation crates. Chick-fil-A will only purchase products from poultry that have never received antibiotics for any reason by 2019. Wendy’s will use only cage-free eggs by 2020. The list goes on and on.

The dairy community must continue to work together on animal care practices through FARM so that we do not become subject to similar, brand-by-brand exclusionary mandates. The FARM Animal Care program provides a great window into the quality care on our farms. We’ve got a great story to tell. The data from tens of thousands of on-farm evaluations helps us tell that in a clear and compelling way. The great majority of our dairy consumers simply want to feel good about the source of their milk products. In providing that reassurance, the FARM Program gives them yet another reason to return to the dairy case.

(Washington, D.C.) — U.S. dairy organizations and the state departments of agriculture across the country today told President-elect Donald Trump that Canada’s existing and soon-to-be-expanded protectionist policies are intentionally designed to block imports from the United States. These policies are in direct violation of Canada’s trade commitments under the North American Free Trade Agreement (NAFTA) and the World Trade Organization, said IDFA, NMPF, NASDA and USDEC in a letter urging the president-elect and his key cabinet members to take immediate action.

The letter to Trump outlined estimates from the U.S. Department of Agriculture that show each $1 billion of U.S. dairy exports generates more than 20,000 jobs for Americans and almost $3 billion of economic output. U.S. dairy suppliers are reporting that they are already losing business because of these programs, demonstrating that Canada’s actions are resulting in lost revenues and jobs for dairy farmers and processors across the United States.

“This negative impact is conservatively estimated at $150 million worth of ultra-filtered milk exports being lost by companies in Wisconsin and New York, which are highly reliant on their trade with Canada. In fact, the entire U.S. dairy industry is being hurt, as milk prices are being driven down nationally by Canada’s trade actions,” the groups said. “Having an even wider impact on America’s dairy farmers and processors, additional large volumes of skim milk powder will be forced onto the thinly traded global market resulting in a further depression of prices that will negatively impact the revenues of dairy farmers around the world.”

The letter sent 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).

Canada is Flouting Trade Obligations

The U.S. dairy industry is already restricted by Canada’s exorbitant tariffs, they said, and only limited market access is granted under NAFTA. Canada is one of America’s top trading partners, yet the country is clearly flouting its trade obligations by implementing and enforcing these policies.

“The U.S. dairy industry is highly competitive internationally, and overseas markets represent a vital source of future growth opportunities including thousands of new American jobs,” the groups said. “Not long ago, the United States was a net importer of dairy products, but now our nation benefits from a dairy trade surplus of over $2 billion. Enforcement of current trade agreements, whether bilateral or multilateral in nature, is central to strengthening the U.S. economy.”

Copied on the letter were several Cabinet nominees, including Robert Lighthizer, the Trump Administration’s nominee for U.S. Trade Representative, along with the leaders and members of the House and Senate agricultural committees.  Read the letter here.

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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 550 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.

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 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 NASDA

NASDA is a nonpartisan, nonprofit association which represents the elected and appointed commissioners, secretaries, and directors of the departments of agriculture in all fifty states and four U.S. territories. NASDA grows and enhances agriculture by forging partnerships and creating consensus to achieve sound policy outcomes between state departments of agriculture, the federal government, and stakeholders.

Working in concert with members of Congress and state officials, NMPF continues to battle Canadian efforts to both push U.S. dairy imports out of that market, and give Canada an unfair export advantage for its dairy products in global markets.

Throughout 2016, NMPF made the case in Washington and in key dairy states that Canada’s two-pronged approach to revising its dairy pricing policy is expressly intended to thwart U.S. trade. First, the provincial Ontario government is providing incentives to Canadian processors to encourage their use of only domestic dairy ingredients, in lieu of imported U.S. ultrafiltered milk. This effort is aimed at slashing the sales of dairy ingredients across the border, which have become a key U.S. export in the past five years. Making matters worse, the provincial pricing strategy may become a national system in Canada in the near future.

As part of this new attempt to prevent imports, Canada is also planning to use its revamped pricing policies to offload large new quantities of milk solids onto global markets, thereby violating Canada’s export subsidy commitments and turning a bilateral trade problem into a global challenge for the U.S. dairy industry. This product-dumping strategy will apply to the manufacture of skim and whole milk powders, milk protein concentrates, and ultrafiltered milk. The Canadian measures pending adoption are intended to incentivize the use of Canadian ingredients in place of similar dairy ingredients from the United States, European Union and Oceania, while disposing of excess milk solids in other international markets the United States relies upon.

This week, NMPF raised the issue with President-elect Trump and his team of trade policy appointees, urging the incoming administration to treat the Canadian situation as an urgent matter. In its Jan. 11 letter, sent jointly with the International Dairy Foods Association, U.S. Dairy Export Council and the National Association of State Departments of Agriculture, the associations noted that “Canada’s flouting of its trade obligations is unacceptable. It is clear that these policies were implemented to intentionally block imports from the United States and are therefore in direct violation of Canada’s trade commitments.” National Milk said the Canadian dairy issue should be reviewed as part of the Trump Administration’s careful scrutiny of potential abuses of free trade agreements such as NAFTA.

NMPF, which first elevated the profile of the trade dispute, continues to coordinate closely with state and congressional lawmakers, as reflected in recent public comments reiterating the harm of the Canadian approach to America’s dairy farmers. Last month, Gov. Scott Walker (R-WI) added to his earlier statements on the topic by mentioning his concerns on Canadian dairy trade protectionism in a Dec. 20 letter to President-elect Trump. Walker indicated that the effort to restrict U.S. milk exports may be a violation of Canada’s trade commitments.

Also in December, Sen. Charles Schumer (D-NY) reinforced his long-standing criticism of Canada’s actions in a meeting with Canada’s Consul and Ambassador, strongly urging Canadian authorities to reverse plans to implement protectionist trade policies.  

According to NMPF President and CEO Jim Mulhern, National Milk “has developed a strategy, working with industry and state and federal officials, to reject Canada’s actions, and prevent the damage that would result through the adoption of its new pricing system.  We also want to address the fragile trade relationship that existing Canadian policies have already harmed.”  Mulhern said that if Canada stays on its current path, “we will propose retaliation against such a clear-cut violation of the market access they’re agreed to in the past.”

Veteran trade negotiator Robert Lighthizer was named Jan. 3 by President-elect Donald Trump as the next U.S. Trade Representative, which NMPF welcomed because of Lighthizer’s understanding of both global trade rules and the importance of balanced trade agreements to the U.S. agriculture sector.

NMPF President and CEO Jim Mulhern noted that Lighthizer’s previous experiences as Deputy USTR, Chief of Staff for the Senate Finance Committee, and his direct private sector engagement in enforcing trade rules on behalf of his clients “will serve him well in forging a path forward on trade policy that will benefit this country.”

“A focus on preserving and growing what is working well, while cracking down further on what is not, will help to expand global markets for U.S. dairy farmers and the companies that turn their milk into nutritious dairy products shipped all over the world. Given that every $1 billion in U.S. dairy exports translates into over 23,000 jobs in the dairy sector and related industries, expanding dairy sales abroad is a strong job-creation strategy,” NMPF noted in reaction to the Lighthizer announcement.

NMPF, together with more than a dozen other farm organizations, kicked off the new year with a joint letter sent last Friday to President-elect Donald Trump and Vice President-elect Mike Pence, highlighting the importance of trade to America’s farmers and ranchers.

National Milk and organizations representing a broad cross-section of agriculture noted that “securing positive benefits for American farmers, ranchers, and workers in trade will be a priority in your Administration. This includes enforcing existing agreements so that other countries abide by their commitments, as well as expanding market access for U.S. producers through new agreements. Disrupting U.S. agricultural exports would have devastating consequences for our farmers and the many American processing and transportation industries and workers supported by these exports.”

The Jan. 6 joint letter followed NMPF’s own letter to the Trump transition team last month, in which National Milk said past trade agreements have had largely had positive impacts for the U.S. dairy sector, even as the U.S. government “can do a better job of holding our trading partners accountable, so that we grow dairy sales and employment even further.”

NMPF President and CEO Jim Mulhern noted that farm groups must continue to emphasize that “the health of U.S. agriculture depends on our ability to sell our products outside of the United States. The growth of America’s dairy sector is directly tied to our ability to export. We have a positive trade balance in agriculture, and don’t want to see those hard-earned export markets eroded.”

Mulhern said the U.S. dairy sector exports 14 percent of its milk production, “which last year was worth over $5 billion, in the process generating more than 120,000 jobs in dairy farming, manufacturing and related sectors. Any disruption in exports of dairy and other food products would have devastating consequences for our farmers, and the many American processing and transportation industries and workers supported by these exports.”

NMPF is working with numerous agricultural organizations to elevate the importance of upholding existing U.S. trade agreements, including stricter enforcement of trading partners’ commitments to the United States, and pursuing expanded opportunities for American agricultural exports through beneficial new trade agreements. 

The National Milk Producers Federation is now accepting applications for its National Dairy Leadership Scholarship Program for academic year 2017-2018. Applications must be received no later than April 7, 2017.

Each year, NMPF awards scholarships to outstanding graduate students (enrolled in master’s or Ph.D. programs) who are actively pursuing dairy-related fields of research that are of immediate interest to NMPF member cooperatives and the U.S. dairy industry at large.

Graduate students pursuing research of direct benefit to milk marketing cooperatives and dairy producers are encouraged to submit an application. Applicants do not need to be members of NMPF cooperatives to qualify.  The top scholarship applicant will be awarded the Hintz Memorial Scholarship, which was created in 2005 in honor of the late Cass-Clay Creamery Board Chairman Murray Hintz.

Recommended fields of study include, but are not limited to, Agriculture Communications and Journalism; Animal Health; Animal and/or Human Nutrition; Bovine Genetics; Dairy Products Processing; Dairy Science; Economics; Environmental Science; Food Science; Food Safety; Herd Management; and Marketing and Price Analysis.

For an application or more information, please visit the NMPF Scholarship page or call the NMPF office at 703-243-6111.

The new FARM Environmental Stewardship module will be available to interested cooperatives and proprietary processors starting Feb. 13. FARM Environmental Stewardship is the third silo of the FARM Program’s structure, joining the existing animal care and antibiotic use modules within the overall FARM Program.

The existing FARM Program database will have an option for those wishing to opt in to the FARM Environmental Stewardship component, which can be done using a designated “Participant” account.

FARM Environmental Stewardship is based on the Farm Smart calculator: a greenhouse gas, fuel and energy baseline tool that calculates a farm’s footprint per unit of milk produced. As farmers upgrade their technology and produce milk more efficiently, FARM Environmental Stewardship will be able to capture these gains and provide data to milk marketers so they can then promote this positive story to dairy customers.

In preparation for the release of the FARM Environmental Stewardship module, the FARM Program is hosting several webinars, including a session on the science behind FARM Environmental Stewardship, one on Database and Data Entry App Training, and another on best management practices (BMPs). The BMP session will come after the release of the Project Guide in April, which will spotlight ways in which a farm can lower its footprint and, in many cases, improve its economic efficiency.

FARM Environmental Stewardship will pilot-test the app in January, when it will also release the FARM Environmental Stewardship User Guide, in conjunction with the upcoming training webinar. Be sure to check the FARM Environmental Stewardship section of the FARM Program website for new materials. Please contact Ryan Bennett (rbennett@nmpf.org) with any additional questions.

The new FARM Animal Care Version 3.0 went into effect on Jan. 1, 2017. This latest version of FARM includes new documents and guidelines to update and strengthen the program, which now enjoys the support of companies marketing 98% of the nation’s milk supply. These requirements include a signed Veterinary-Client-Patient Relationship (VCPR) form, a signed Dairy Cattle Care and Ethics agreement, FARM training in basic stockmanship by all employees, and the phaseout of tail docking.

Revisions to the FARM Program occur every three years and are based on input from farmers, veterinarians and others involved in the FARM Program’s Technical Writing Group, NMPF’s Animal Health and Wellbeing Committee, and recommendations received through a public comment period. The revision process began in May 2015. The NMPF Board of Directors approved the changes at its board meeting last March.

FARM Animal Care is one silo within the broader National Dairy Farmers Assuring Responsible Management (FARM) Program, alongside the Antibiotic Resistance and the new Environmental Stewardship components. A complete summary of the Version 3.0 updates can be found on the FARM website. 

Cooperatives Working Together assisted member cooperatives in winning 48 contracts to export 4.75 million pounds of American-type cheeses and 3.03 million pounds of butter in the holiday-shortened month of December. The products will go to customers in Asia, Central America, the Middle East, North Africa, and Oceania, and will be shipped from December 2016 through March 2017.

The contracts captured in December raise the 2016 CWT-assisted sales totals to 50.32 million pounds of American-type cheese, 12.13 million pounds of butter (82% milkfat) and 21.32 million pounds of whole milk powder destined for customers in 23 countries on five continents. The sales are the equivalent of 892.91 million pounds of milk on a milkfat basis. Totals are adjusted for cancellations received during the month.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program expands the long-term demand for U.S. dairy products and the U.S. farm milk that produces them. This increases demand which positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available online.

The U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA-NASS) last week reported the November U.S. average all-milk price at $17.60 per hundredweight, a dollar higher than October’s all-milk price. The price jump was a bit stronger than expected, based on the November federal order class prices announced earlier in December.

USDA-NASS last week also reported feed prices for November. The announcements will result in a November monthly Margin Protection Program (MPP) feed cost of $7.62 per hundredweight, 14 cents less than the October monthly MPP feed cost and the fifth-straight drop in the MPP monthly feed cost since June. The monthly MPP margin for November will be $9.98 per hundredweight.

USDA’s current forecast, based on the Dec. 30 CME futures settlements, projects that the MPP margin will remain well above $10.00 per hundredweight through the first half of 2017 and above $11.00 per hundredweight during the second half. USDA’s MPP margin forecasts are updated daily online.

NMPF’s Future for Dairy website also offers a variety of educational resources to help farmers select the desired coverage level.

Key leaders in both the House and Senate have chastised the Food and Drug Administration in the past month for failing to enforce existing food standards that specify products labeled as “milk” have to come from a dairy animal – adding new momentum to NMPF’s longstanding campaign to encourage the FDA to enforce its own regulations.

On Jan. 12, Sen. Tammy Baldwin (D-WI) introduced her DAIRY PRIDE Act, which would protect the integrity of food standards by prompting FDA to enforce labeling requirements for dairy. The measure would require FDA to issue a guidance for nationwide enforcement of such requirements within 90 days, and mandate that FDA report to Congress two years after the bill’s enactment to hold the agency accountable.

NMPF President and CEO Jim Mulhern welcomed Baldwin’s legislative approach, adding that “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.”

Baldwin’s bill comes roughly a month after House leaders Reps. Mike Simpson (R-ID) and Peter Welch (D-VT), and a bipartisan coalition of 30 other cosigners, sent a letter to FDA asking the agency to more aggressively police the improper use of dairy terms for alternative products. Plant-based foods and beverages “are misleading to consumers, harmful to the dairy industry, and a violation of milk’s standard of identity,” the congressional letter said.

Both NMPF and the International Dairy Foods Association (IDFA) said the letter will help raise the profile of the issue, as it also mentioned other violations of standards of identity for products such as yogurt, cheese and ice cream that are copied by plant-based sources.

NMPF believes action is needed to defend the integrity of federal food labeling standards and prevent the misbranding of dairy imitators. FDA regulations define milk as a product of a cow, with a similar stipulation for yogurt and cheese.

“Milk should be milk,” said Mulhern, “rather than an industrial-produced, artificially whitened, watery beverage formed with nut or grain pastes and some flavoring and emulsifiers.” He said many popular vegetable imitators such as rice and almond beverages have little protein and widely-varying amounts of vitamins and minerals.

That lack of enforcement in the U.S. market stands in sharp contrast to how the matter is handled in similar nations. While the term “almondmilk” is seen on products sold in the U.S., it is prohibited on the same brand of almond beverage sold in Canada and the United Kingdom.