Waters of the United States Definition Proposed by EPA

On April 21, 2014 the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) published for public comment a proposed rule defining the scope of waters protected under the Clean Water Act (CWA), in light of several U.S. Supreme Court cases. The agencies proposed to define “waters of the United States” for all sections of the CWA to mean: traditional navigable waters; interstate waters, including interstate wetlands; the territorial seas; impoundments of traditional navigable waters, interstate waters, including interstate wetlands, the territorial seas, and tributaries, as defined, of such waters; tributaries, as defined, of traditional navigable waters, interstate waters, or the territorial seas; and adjacent waters, including adjacent wetlands.
 
In tandem with the proposed rule, the agencies have issued an interpretive rule that continues existing statutory and regulatory exemptions from CWA Section 404 permitting requirements for normal farming, silviculture and ranching practices where these activities are part of an ongoing farming, ranching or forestry operation. The interpretive rule is immediately effective and expands the list of existing agricultural exemptions to include an additional 53 activities that are exempt from permitting requirements so long as they are conducted consistent with Natural Resources Conservation Service (NRCS) conservation practice standards. 
 

CWT Helps Members Export 28 Million Pounds of Dairy Products

April was another strong month for Cooperatives Working Together, with the program helping cooperatives sell 28 million pounds of dairy products overseas. Nearly 140 requests for export assistance were received, and of those, 86 were accepted during last month.  Of the 86 bids accepted, 36 involved cheese totaling 10.9 million pounds; 27 involved butter totaling 12.7 million pounds; and 23 involved whole milk powder totaling 4.4 million pounds.
 
April’s activity brought the year-to-date CWT export totals to 47.2 million pounds of cheese, 42.1 million pounds of butter, and 7.8 million pounds of whole milk powder. All the products will be shipped by October. It will move the equivalent of 1.4 billion pounds of milk (on a milkfat basis) to 33 countries on six continents. 
 

Obama Administration: EU Cheese Maneuver is a Trade Barrier

A new report from the Obama administration calls out as a trade barrier the European Union’s efforts to prevent the U.S. dairy industry from using common cheese names. 
 
Essentially, the Europeans claim American versions of cheeses like parmesan, feta and muenster are not authentic, and thus shouldn’t use names of products originating in specific locations in Europe (i.e. “geographic indications”). But the latest edition of the National Trade Estimate from the office of the U.S. Trade Representative agrees with the U.S. dairy industry that this approach is nothing more than thinly veiled protectionism. 
 
“The United States continues to have serious concerns with the EU’s system for the protection of [geographic indications], including with respect to its negative impact on the protection of trademarks and market access for U.S. products that use generic names,” the report said. It added that the United States will monitor the EU’s actions in this area closely in the future. 
 
The NTE also recognized as a trade barrier Canada’s actions to limit U.S. access to its cheese market through both high tariffs and customs arrangements. In addition, a separate USTR report found unwarranted sanitary and phytosanitary requirements imposed on U.S. dairy products by multiple countries, including India, Indonesia, Mexico, Russia, Saudi Arabia and the European Union. 
 
“We appreciate USTR’s recognition of all these actions as limiting U.S. dairy exports around the globe,” said NMPF President and CEO Jim Mulhern. “We will continue to work with the Obama administration in the future to lessen these trade barriers.”  
 

Chocolate Milk Ban in Schools Backfires

Confirming what the dairy industry has said for years, a Cornell University study found that banning flavored milk from school cafeterias can trigger unintended consequences that outweigh any potential benefits from reduced sugar consumption. 
 
With funding from the Agriculture Department, the Cornell researchers looked at milk consumption in 11 Oregon elementary schools before and after chocolate milk was taken out of cafeterias. With chocolate milk gone, researchers found a 10 percent decline in milk sales and a 29 percent increase in milk waste, with a corresponding decrease in protein and calcium consumption, and an increase in other fats in student lunches. In addition, eliminating chocolate milk was associated with 6.8 percent fewer students eating school lunches. 
 
“Removing chocolate milk from  school cafeterias may reduce  calorie and sugar consumption,” the study concluded, “but it may also lead students to take less milk overall, drink less of the white milk they do take, and no longer purchase school lunch. Food service managers need to carefully weigh the costs and benefits of eliminating chocolate milk and should consider alterative options that make white milk more convenient, attractive and normal to choose.” 
 
Co-author Brian Wansink is a former head of USDA’s Center for Nutrition Policy and Promotion and an expert on eating behavior and behavioral economics. 
 

Joint ABI-ADPI Meeting Features GMO Discussion, Attracts Record Attendance

Genetically modified food ingredients and opportunities and challenges in the Middle Eastern and North African markets were among the topics discussed at the 15th joint conference of the American Butter Institute and the American Dairy Products Institute. Held at the Hyatt Regency Chicago in late April, the 2 ½-day meeting attracted more than 900 attendees. 
 
Otis Wilson from the 1985 Championship Chicago Bears and former Chicago Bear and Green Bay Packer Anthony Morgan were keynote speakers at the conference, which opened with a discussion of the growth, production, pricing and weather issues impacting the dairy industry.  
 
A separate panel on genetically modified food ingredients included farmer, manufacturer and distributor perspectives. Other topics included mandates created by the Dodd-Frank financial reform act, the Food Safety Modernization Act, the infant nutrition market, and dairy ingredient plant technology and practices. 
 
Former NMPF President and CEO and ABI Executive Director Jerry Kozak received ADPI’s Award of Merit, which annually recognizes those individuals who have made a difference in the processed dairy products industry. Kozak retired from NMPF in December after 16 years.  He served as ABI’s executive director for 22 years. 
 
Two new members – Brian Caspary from Foremost Farms USA and Brian Linney from MD & VA Milk Producers Cooperative Association – were elected to the ABI board at the conference, which also included three receptions featuring world championship cheeses. The next conference will be held April 26 – 28, 2015, also at the Hyatt Regency Chicago.

Iowa Farm Group Honors Former YC Chairman

The Coalition to Support Iowa’s Farmers presented its April Good Farm Neighbor award to former NMPF Young Cooperator Chairman Marty Burken, and his brother Michael. The Burkens run Blue Hyll Dairy in Clinton County. They were cited for leadership in conservation and sustainability and also for their community activities. The award was presented April 23 by Iowa Secretary of Agriculture Bill Northey.

The Burken family (Lisa, at left, and Marty at right) milks 810 cows, raises 170 beef steers, has a compost business and also raises row crops. Blue Hyll Dairy has received awards for both water recycling and composting and was the inaugural recipient of Iowa Farm Environmental Leader Award, presented at the 2012 Iowa State Fair. Marty Burken chaired NMPF’s Young Cooperator program in 2010. 

 
 
 
 

 

Passing the Test

The use, misuse, and growing ineffectiveness of antibiotics is one of the leading public health challenges of the 21st century.  At the end of April, the World Health Organization issued a report warning that society is about to enter into the “post-antibiotic” era, meaning that the successes of the past 75 years, of modern medicine using drugs to quickly cure bacterial illnesses and save lives, may not be repeated in the 21st century, due to the rise in bacteria resistant to antibiotics.

While a great deal of the media’s focus on the antibiotic problem relates to farm use, the reality is that the overwhelming rise in antibiotic resistant pathogens are in bacteria that have nothing to do with food animals – the real problem is with pathogens such as those responsible for tuberculosis, malaria, pneumonia, staph infections. It is human misuse, and especially infections acquired in the hospital setting, that are largely responsible for the growing antibiotic resistance problem.
But this is not to say that antibiotic use in agriculture should be ignored. As an industry, we in dairy have a long history of commitment to the proper use of antibiotics. Our long-standing partnership with the public health community – both federal and state – is in part responsible for the safety of the milk supply. Every drop of farm milk is tested for antibiotics, and in the rare instance where any antibiotic residue is found, that milk is dumped so that it never reaches the consumer.

 

That public health partnership, and our industry’s commitment to judicious antibiotic use, continues as we prepare for the U.S. Food and Drug Administration’s release – perhaps as soon as next month – of the results of a survey that looks at antibiotic use in the dairy sector.   We don’t yet know the specific results, but NMPF and other stakeholders in the dairy industry are prepared to help explain the implications of the survey:  what it demonstrates and, just as importantly, what it doesn’t. Since we are in an era where some clever marketers promote their milk as being “antibiotic-free” when, in reality, all milk is required to be free of antibiotics, this issue takes on added importance.  Our hope is that the FDA report may actually help us tell a positive story about the proper role of antibiotics in dairy production.
More than five years ago, the FDA became concerned that a very small percentage of dairy operations may not have been using antibiotics prudently on their farms, based on residues identified by the USDA – not in milk, but in the meat and tissues of dairy cows headed for slaughter.  The FDA theorized that farms with a tissue residue violation may also have farm management practices that could produce milk residues at the same time.
This thesis led the FDA to create a milk sampling survey comparing raw milk samples from roughly 900 dairy producers who had tissue residue violations, with a random group of 900 other farms.  Each of those samples has been screened for the presence of 30 different drugs, including many drugs that are already routinely tested for by the government and by the dairy industry.
Even before the specific findings are known, it’s important to clarify that this report is not a comprehensive assessment of milk from across the U.S. dairy sector.  Those 1,800 farms represent less than two percent of the dairy operations in America, and at just a single point in time – a tiny “snapshot” of the entire picture of the dairy industry.
Second, and even more importantly, the FDA’s survey is not an assessment of antibiotic traces in the retail dairy supply.  All of the samples were collected pre-processing, meaning that the normal testing that each tanker load is subjected to when it reaches a processing plant hadn’t been performed on these samples.  When tested at the plant, if there were commonly-used drugs present, the milk in these samples would subsequently have been rejected and dumped.
In fact, the FDA routinely tests Grade A, processed dairy products for penicillin and other classes of drugs.  The good news is that in the past three years, not a single one of the nearly 130,000 retail-ready samples tested contained antibiotics.  That’s a powerful and much broader set of data than what the FDA will be reporting through this special sampling survey.
What’s more, the trend line of residues in the farm milk supply has been heading down for many years, which is also confirmed by the FDA’s latest annual report on the nearly 3.2 million tests ran on tanker loads of milk prior to processing.  Only 0.014% (14 thousandths of 1%) of all truckloads of raw milk (445 out of the 3.19 million) tested positive for antibiotics in 2013, down from 0.017% in 2012.  This is the seventh year in a row that the figures have improved.  And, again, the tanker loads of milk that tested positive were rejected and didn’t go into any products for consumers.
As we await the release of this latest report from FDA, we are confident that the federal government will reassert as part of its findings that the underlying safety and wholesomeness of the dairy supply is not in question.  FDA has previously stated that it believes that the nation’s milk supply is safe. The findings of this report should not change that assessment.
The use of antibiotics in livestock is routinely criticized in some quarters.  Those critics may try to use this new report as ammunition against farmers’ use of antibiotics – despite the fact that dairy farmers only use antibiotics for disease treatment.  At the same time, the advent of this report, after two years of data collection and review, will lead to many teachable moments across the dairy sector, for farmers, and also for veterinarians and pharmaceutical companies.
In particular, we can and will use this as an opportunity to reinforce the need for the 2014 Residue Avoidance Manual, produced by NMPF and available free of charge. Ultimately, we are confident that the results will also serve to remind consumers that farmers work hard every day to produce a safe product.

NMPF Smacks Sugar Focus of FDA Food Labeling Regulatory Efforts

 
Food Agency Needs to Address Misleading Dairy Product Names as Well
 
The National Milk Producers Federation has soured on efforts by the Food and Drug Administration to devote attention to regulating the names of certain types of sugar, while at the same time the agency is ignoring the misuse of dairy-specific names in foods with no milk content.
 
In a letter sent today as part of an FDA request for comments, NMPF questioned why the FDA is focused on clarifying the common or usual name for “dried cane syrup” or “evaporated cane juice” – a type of dried sugar used as a food ingredient – even as it allows soy, rice, nut and hemp products to define themselves as milk, in violation of long-standing food standards.
 
“Getting a sugar fix is fine and well, as long as the FDA also turns its attention to a problem that has been ignored for more than a decade,” said Beth Briczinski, NMPF Vice President of Dairy Foods & Nutrition.  “Unfortunately, the agency’s lack of effort on misbranded and mislabeled imitation dairy products has left a bitter taste in our mouths.”

 
In the letter sent Monday to FDA, NMPF wrote that it is not advising FDA “on an appropriate name for what would be obvious to most consumers is a type of sweetener, but rather to question the Agency’s allocation of resources to such an effort.  It seems rather disingenuous for the Agency to utilize its often-referenced ‘limited resources’ to issue additional labeling guidance, while simultaneously not enforcing existing regulations pertaining to the identity of foods” including imitation dairy products, NMPF wrote in the letter.   
 
“The Agency has blatantly disregarded the names displayed on the labels of imitation dairy products (e.g., “soy milk”, “rice yogurt”, etc.) in the current marketplace.  While the FDA has made its position clear through warning letters to several manufacturers…NMPF would argue that these actions have been too infrequent to be effective, essentially creating a labeling landscape free of enforcement.”  
 
Today’s letter from NMPF is the latest in a series of correspondence between the dairy organization and the FDA, dating back to 2000, in which NMPF has urged the agency to enforce existing requirements for the labeling of imitation foods specifying that many milk, yogurt, cheese and ice cream substitutes produced from vegetable or plant materials are not nutritionally equivalent to real dairy products.  
 
“Manufacturers of these imitation products have misled American consumers for far too long – making a mockery of currently labeling regulations – by usurping the ‘dairy halo’ associated with wholesome and nutritious milk and dairy products,” the letter said. 
 
The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies. Visit www.nmpf.org for more information.
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NMPF Praises New Voluntary GMO Labeling Bill

ARLINGTON, VA –The National Milk Producers Federation today applauded introduction of legislation establishing federal standards for the safety and labeling of foods containing genetically modified ingredients (GMOs).
Under the bill, the Safe and Accurate Food Labeling Act, introduced by Rep. Mike Pompeo (R-KS), the Food and Drug Administration will set standards for companies that wish to label their products as containing or not containing GMOs. In addition, FDA is required to conduct a safety review of all new genetically modified traits and could mandate labeling if there is a health, safety or nutrition issue with a particular ingredient.  The legislation is co-sponsored by Reps. G.K. Butterfield (D-N.C.), Marsha Blackburn (R-TN), Jim Matheson (D-UT) and Ed Whitfield (R-KY).
“Rather than create a patchwork of state policies, what this legislation would do is deal with this important issue at the national level,” said Jim Mulhern, President and CEO of NMPF.  “And since there is no reason for Congress and the FDA to require mandatory labels on foods produced through GMOs, we need this approach instead:  clarifying how companies can voluntarily label their products in a way that reduces confusion at the consumer level.”

Mulhern added that “genetically modified ingredients have been used in foods in this country for two decades. They add desirable traits so that crops are more plentiful and require less water and fewer pesticides.  If companies want to highlight their presence, they should be able to do so in a way that enhances trust in the food supply.”
The GMO labeling legislation also addresses another problem by ordering the FDA to define the term “natural” when used on food labels. Right now, there is no uniform definition of natural when applied to foods.
Up to 80 percent of the food available in the United States contains genetically modified ingredients. Agencies including the FDA, the U.S. Agriculture Department, the National Academy of Sciences and the World Health Organization have found no negative health effects from consuming GMOs.
The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

NMPF Statement on Introduction of House Bill Blocking Changes in FDA Regulation of Brewers’ Grains for Use as Animal Feed

From Jim Mulhern, President and Chief Executive Officer, NMPF: 
“The National Milk Producers Federation supports the legislation introduced this week by four House members to stop the Food and Drug Administration from making it harder to use beer by-products in animal feed. We need to keep the brew in the moo on our farms, and this legislation is a signal that the FDA needs to rethink the regulation that it is pursuing.
As our comments to the FDA last month pointed out, there is no public health risk associated with the long-standing practice of using brewers’ grains as animal feed. The proposed FDA regulations would unnecessarily increase costs to dairy farmers. Farmers have been using high-protein brewers’ grains in livestock feed for hundreds of years.

Last fall, the FDA suggested imposing stricter requirements for handling spent grains sold or donated to farmers as part of new feed regulations proposed under the 2010 Food Safety Modernization Act. The changes would require spent grains to be dried and packaged, before being passed on to farmers. Typically, farmers now receive wet grains, which help hydrate livestock.
Both the beer industry and agricultural groups, including NMPF, object to the planned changes, and we are encouraged that the FDA has said recently it will review its draft language. In the meantime, we support the legislative approach offered by Reps. Steve Womack (R-AR), Reps. Peter Welch (D-VT), Chellie Pingree (D-ME) and Cory Gardner (R-CO) to highlight the importance of this issue.”
The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

Revised Dairy Safety Net Presents a New World for Farmers

It may not match Columbus’s discovery of America, but when a revised federal safety net kicks in after September 1, it will definitely be a New World for dairy farmers. And the same question is on virtually every farmer’s mind: what will this mean for me?

Many of the details remain to be worked out. But here’s what we know now, starting with the basics.

The new program, called the Dairy Producer Margin Protection Program, is a voluntary risk management program that will help prevent the kind of catastrophic equity losses that hit dairy farmers in the 2008-2009 recession and again in 2012. It will address fluctuations in margins caused by both low milk prices and high feed costs.

The Margin Protection Program replaces price supports, MILC payments and other, less effective federal programs for dairy. It was enacted as part of the 2014 farm bill and was the product of five years of work by the National Milk Producers Federation and numerous dairy cooperatives and organizations across the country.

How MPP Will Work

All dairy farms will be eligible to participate. Two or more producers involved with a single operation will be treated as a single farm. Multiple farms operated by a single producer will register separately. Sign-ups will be at the local USDA Farm Service Agency (FSA) office.

Producers will be able to insure their margins on a sliding scale, both for how much milk production is covered and for the specific margin level selected. Basic coverage, starting at $4 per hundredweight, will be paid by the government. Above $4, premiums will be shared between the farmer and the Agriculture Department. The program will pay out benefits to all producers equally, regardless of size.

The program will pay producers when national average margins for periods of two consecutive months (Jan.-Feb., Mar.-April, and so on) fall below the coverage level chosen by the producer. During such periods, it will pay on one-sixth of a farm’s annual production history, multiplied by the percentage of production selected by the producer.

Margins are defined as the all-milk price minus national average feed costs. Feed costs will reflect the cost of feeding all animals on a farm, including heifers and dry cows. Initially, a farm’s production history will be the highest annual production among the last three years. After the first year, a farm’s production history will increase, based on the average growth in milk production nationally. Any milk production growth on a farm beyond the national average will not be covered.

Producers will choose to insure from 25 percent to 90 percent of production history, in five percent increments. Margin coverage will be in 50-cent increments, from $4 per cwt. to $8 per cwt. Premiums will be fixed for five years but will be discounted by 25 percent in 2014 and 2015 for volumes up to 4 million pounds. There will also be an annual administrative fee of $100 to enroll.

Donation Program

The farm bill also created a Dairy Product Donation Program that will be triggered when margins are extremely low. If margins fall below $4 per cwt. for any two consecutive months, the Agriculture Department will purchase consumer-ready dairy products for donation to food banks and other low-income feeding programs. Purchases will continue for three months, or until margins rebound above $4.

USDA cannot store the dairy products and organizations receiving products cannot sell them in commercial markets.

What Happens Next?

USDA’s Farm Service Agency is just beginning the process of setting up the Margin Protection Program. This will take much of 2014. The National Milk Producers Federation is working with FSA to ensure the program is effective and farmer-friendly. But at this point there are lots of unknowns, including:

  • When will coverage start and when will sign-up begin?
  • Can farmers insure different portions of their production at different levels?
  • How will new entrants be handled, as well as those selling or leasing operations?

NMPF will be working with the Agriculture Department to answer these and other questions as the rules for the new program are written. NMPF’s Future for Dairy website is being refashioned into a hub for information on the program and its implementation. Check www.futurefordairy.com for updates.