Dairy Defined: Working Together is the Heart of Dairy

ARLINGTON, Va. – Dairy is a quirky commodity. It’s a highly perishable product “harvested” every day. It’s in all 50 states. And more than for most other commodities, dairy farmers are organized into cooperatives, putting the cooperative principle of working together at the heart of the industry.

Cooperatives are everywhere in the U.S., serving members in everything from child care and credit unions to health insurance and rural broadband. Nearly one in three Americans are co-op members.  (And happy Co-op Month to all of them!) Thanks to the Capper-Volstead Act of 1922, farmers can form cooperatives to collectively own and manage resources, cut costs and gain a measure of market power traditionally dominated by banks and agribusiness.

Most U.S. farmers use cooperatives at some level – to pool supplies and capital, finance exports, improve their bargaining position with processors, or even become processors themselves. Over time, cooperatives became the dairy industry standard, as farmers far from cities needed ways to sell and ship highly perishable products without relying on middlemen who could use time and distance to push prices down. Cooperatives have empowered dairy farmers and enabled them to build multimillion-dollar processing plants in local communities, share financial resources, and coordinate their own transportation. It’s simply the best way, and sometimes the only way, for a dairy farmer to get products to market and earn a decent return from doing so. And while dairy co-ops don’t have the ability to set market prices – supply and demand still rules – they do help balance the market power equation between individual farmers and corporate buyers.

Today, farmer-owned cooperatives dominate dairy. According to a twice-a-decade USDA survey, cooperatives handled 85 percent of U.S. milk in 2017, a number that’s held steady for 25 years.

Thanks to cooperatives, dairy farmers have kept a bigger share of the price of their product – about twice the agricultural norm. And they’ve helped farmers benefit from marketplace shifts in ways they wouldn’t be able to if they only were solo operators selling their milk to others; for example, as dairy demand has reached a 56-year high, the number of cooperative-owned processing plants has risen by 8 percent since 2012. Another example: As butter prices have reached records, the share of butter production managed by cooperatives has risen to 86 percent, compared to 75 percent in 2012. Cooperatives have also helped dairy be a livestock-sector leader in sustainability and animal welfare, adapting generations of self-help spirit to 21st-century concerns.

Dairy cooperatives today include multi-billion-dollar businesses and local treasures; export powerhouses and instantly recognizable brands; innovative consumer products and food-cult followings. They’re part of regional fabrics, any they boast histories that stretch more than a century. Like agriculture itself, they’ve evolved. The number of cooperatives has declined along with the number of dairy farmers, even as their farm milk volumes have skyrocketed. Still, cooperatives have remained the heart and soul of the dairy industry — and their farmer-ownership belies the false narrative, from some quarters, of a faceless “Big Dairy.”

Cooperatives owned by U.S. farmers serve the world. We at the National Milk Producers Federation are proud to represent dairy farmers and the cooperatives they own, that together produce more than two-thirds of all U.S. milk. Next week, we’ll celebrate them at our annual meeting. For now, we’d like to thank them for all they do. You should thank them too.

Agri-Mark, Inc.

Associated Milk Producers Inc.

Bongards’ Creameries

California Dairies, Inc.

Cooperative Milk Producers Association

Dairy Farmers of America, Inc.

Ellsworth Cooperative Creamery

FarmFirst Dairy Cooperative

First District Association

Foremost Farms USA

Land O’Lakes, Inc.

Lone Star Milk Producers

Maryland & Virginia Milk Producers Cooperative Assoc.

Michigan Milk Producers Association

Mid-West Dairymen’s Company

Mount Joy Farmers Cooperative Association

Northwest Dairy Association

Oneida-Madison Milk Producers Cooperative Association

Prairie Farms Dairy, Inc.

Premier Milk Inc.

Scioto Cooperative Milk Producers’ Association

Select Milk Producers, Inc.

Southeast Milk, Inc.

Tillamook County Creamery Association

United Dairymen of Arizona

Upstate Niagara Cooperative, Inc.

 ###

 The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

 

Joint Statement by the Dairy Sectors of the United States and Mexico on their Fourth Annual Meeting

The representatives of the organizations of milk producers and the dairy processors of Mexico:

  • Asociación Nacional de Ganaderos Lecheros (ANGLAC)
  • Confederación Nacional de Organizaciones Ganaderas (CNOG)
  • Gremio de Productores Lecheros de la Republica Mexicana
  • Cámara Nacional de Industriales de la Leche (CANILEC)

And the representatives of the organizations of milk producers of the United States:

  • National Milk Producers Federation (NMPF)
  • U.S. Dairy Export Council (USDEC)

The dairy industries of Mexico and the Unites States are proud to be among the world’s leading providers of wholesome and nutritious dairy products. We help feed communities around the globe while driving economic growth and bringing myriad positive benefits to each of our respective nations.

We salute the hard work of the dairy farmers and processors in both Mexico and the United States who produce superior dairy products in an increasingly competitive marketplace. Dairy consumption continues to grow, and our industries are continually modernizing in order to more efficiently meet the growing consumer demand for the high-quality products we produce. We also recognize the importance of ensuring that our industries continue to support small and medium size dairy operations as they work to sustain their livelihood and increase productivity.

Mexico and the United States produce a wide range of healthy, safe and delicious dairy products for the enjoyment of consumers. However, negative marketing activities and the proliferation of false, unscientific information regarding the properties of milk and milk products are impacting some consumer preferences.

We express concern over the new proposal mandating front-of-packaging nutrition labeling in Mexico, and urge the Mexican government to ensure that it NOT affect the positive image of milk and dairy products.

Also, the ratification of the USMCA – TMEC by the United States Congress is vital to strengthen the promising future of the milk and dairy sectors of Mexico and the United States, by bringing certainty to our trade relationships and creating new opportunities to increase dairy trade in the region.

Finally, the industries support a strong strategic collaboration to work on a number of issues of interest to both the Mexican dairy sector as well the U.S. dairy sector.

On this fourth annual meeting within the framework of the partnership to strengthen the productive sector for milk in North America, held in Torreón, Mexico, the dairy industries of Mexico and the Unites States hereby agree to:

  1. Preserve, facilitate and enhance trade between the two nations, as well as promote the elimination of trade barriers of any kind in the dairy sector.
  2. Have as a key objective the expansion of dairy consumption in both countries to the benefit of producers, manufacturers and primarily consumers in the United States and Mexico, by promoting joint activities that help increase the consumption of our dairy products within our region.
  3. Identify and promote actions that improve the productivity of dairy farms in Mexico and the United States, understanding the additional needs of small producers in Mexico in particular, while strengthening cooperation in the area of technological exchange and training, to drive improvements in milk production and nutrition.
  4. Defend the reputation and image of milk and dairy products in both countries by strongly rejecting the improper usage of milk and milk product names by products of nondairy origin, such as plant-based products.
  5. Creation of a Binational Commission to defend the image of dairy as well as to work on issues of sustainability, animal care and food safety, and find avenues to promote and increase consumption of dairy products.
  6. Urge the Mexican authorities to consider in the public consultation the arguments of the national and international dairy sector, so that milk and dairy products that contain milk as their main ingredient are not affected by the establishment of warning seals on their labels, in recognition of the enormous nutritional benefits of dairy products, the important role they play in a healthy and balanced diet and the consideration of vulnerable groups in society.
  7. Express the need for stabilization in our markets in recognition of the economic, social and political importance and certainty that this agreement offers to our industries.
  8. Continue activities in defense of common food names, in particular cheese names, allowing their free use in our North American market respecting the USMCA agreement on intellectual property.
  9. Urge the governments involved in the negotiation of USMCA – TMEC to expeditiously implement this modernized trade agreement in order to secure its framework for a strong and united dairy industry for the benefit of our geographical zone and its consumers.
  10. Understand the importance of sustainability as an integral part of the growth in dairy demand and pledge to continue working on common efforts to improve dairy farm productivity while continuing to protect our natural resources.
  11. Recognize that Animal Welfare has become a critical part of supply demand to consumers in both countries. The U.S. dairy industry will share developments related to the National Dairy FARM Program to the benefit of dairy farmers in Mexico with the objective of achieving continuous improvement in the health and welfare of their livestock.
  12. Ratify the cooperation between our industries in the participation of dairy sector events held in our countries, and specifically in those events aimed to enhance the health benefits that our products offer to consumers.

Dairy Defined Podcast: Farmers Face Choices in 2020 DMC Signup

(Note: NMPF’s Dairy Defined podcast explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

ARLINGTON, Va. – With farmers receiving a $300 million financial boost via the 2019 Dairy Margin Coverage Program, signup is now underway for the 2020 program. But every year is different, and Chris Galen, NMPF’s Senior Vice President for Member Services and Strategic Initiatives, said farmers should be paying attention to prices, production histories and financial priorities as they consider their 2020 signup options.

“For those who aren’t locked in for the full five years, you have several choices to make,” he said. “You have to look at, do you want to ensure again at the $9.50 per hundredweight maximum coverage level, or is there a level below that, that you want to pay for? Again, the premiums are higher, the higher the levels of coverage that you choose.”

To listen to the full podcast, click here. You can also find the Dairy Defined podcast on Spotify and SoundCloud. Broadcast outlets may download and use the MP3 file. Please attribute information to NMPF.

###

The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Statement on Its Letter to President Trump

From Randy Mooney, Producer Chairman  

“On behalf of dairy farmers and farmer-owned dairy cooperatives across the country, NMPF wrote to the President today to commend his Administration for its excellent judgment this month in including a number of European dairy products, particularly cheeses from major EU exporters such as Italy, on a list of WTO-authorized retaliatory tariffs related to the successful U.S. case against European Airbus subsidies. However, we must reject European efforts to deceive the United States about the reality of Transatlantic dairy trade. To that end, we respectfully asked the President to put the needs of U.S. dairy farmers above those of Italian and European farmers by maintaining the retaliatory tariff list against Europe, as the Administration proposed earlier this month.

“The U.S. is running a $1.5 billion dairy trade deficit with Europe because of unfair EU trade practices that largely block our access to their market while they enjoy broad access to ours. EU policies such as Italian-initiated bans on American-made parmesan, asiago and gorgonzola mean that they can ship us $1 billion in cheese each year while U.S. cheese exports to the EU clock in at $6 million.

“In light of this disparity and the EU’s refusal to meet its WTO commitments regarding illegal Airbus subsidies, American dairy farmers saw the proposed retaliatory tariff list’s strong focus on EU dairy and cheeses as at least temporarily creating a slightly more level playing field for Made in America products that face even higher barriers to entry in the EU market.

“Dairy farmers are counting on the President to stand with them and resist Italy’s request that he side with the Italian farmers and cheese makers who have blocked our own great cheeses from EU store shelves.”

 

Dairy Defined: Milk – A Great Addition to Your Science-Based Diet

ARLINGTON, Va. – Call it old-fashioned, but dairy believes in science. For example, it takes climate change seriously – that’s why North America’s dairy sector, which is dominated by U.S. production, is the only one worldwide whose total greenhouse gas emissions have declined from 2005 levels, according to a UN study.

Dairy also closely examines research on hot-button topics like plant-based versus dairy beverages – where studies consistently show consumer confusion over nutrition and support for clearer labels. And the sector understands that “industry-funded research” will not be seen as quite the same as “independent” studies. Fine – even though industry transparency standards are high, critics will believe what they believe.

But if you don’t want to believe what dairy tells you – will you believe Consumer Reports?

In its November issue, Consumer Reports’ food-testing team evaluated 35 plant-based beverages, including almond, coconut, oat and soy varieties, for nutrition and taste, also comparing them with milk. The result? “Few of the drinks we tested match cow’s milk for nutrition,” the authors wrote. Experts also noted that consumers “are confused about plant milks’ nutritional profile” and that in terms of calcium intake especially, “you may be missing out” with plant-based beverages.

The study found that, along with often relying on added sugars for flavor, industrially produced plant-based beverages also include concerning additives linked to higher risks of kidney disease, heart disease, bone loss, and inflammation. That’s not exactly the story a vegan lobbyist might want you to read, but facts are facts. And by the way — they’re the same facts the Food and Drug Administration is examining as it considers enforcing already existing standards on what milk is, and what it isn’t. (We at NMPF have sent them a road map with some suggestions.)

That’s not the only interesting study of recent note. CNN recently picked up on research from the University of St. Andrews in Scotland showing that when it comes to hydration, milk outperforms even water, due to its unique blend of nutrients.  The lactose in milk, for example, helps slow the emptying of fluid from the stomach, maintaining hydration longer. Beverages with higher concentrations of sugars, such as juices and sodas, use up the water that’s needed to dilute them.

These are only two studies. There are more. Did you see the one from the Academy of Nutrition and Dietetics, the American Academy of Pediatrics, the American Academy of Pediatric Dentistry, and the American Heart Association? It recommended that children under 5 drink only milk and water, specifically warning against replacing milk with plant-based beverages. And how about last year’s University of Wisconsin study showing that, once you factor in packaging and transportation, soy and almond beverages have a larger carbon footprint than milk, with almonds exponentially higher in water use?

The evidence keeps coming in: Milk is a highly nutritious, climate-compatible beverage that benefits consumers. And it’s not just dairy sources saying that – it’s respected scientists in reputable publications. (A few more studies of interest are listed below for ease of reference.) From the evidence, one might just conclude that milk is an excellent part of a science-based diet. But maybe it’s just old-fashioned, thinking a debate should be focused around facts instead of marketing.

A few links of interest for additional examination:

(Note: NMPF’s Dairy Defined each week explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

###

The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Dairy Defined Podcast: FARM Program Leads in Animal Care

(Note: NMPF’s Dairy Defined podcast explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

ARLINGTON, Va. – The National Dairy Farmers Assuring Responsible Management (FARM) program spent last week at the World Dairy Expo in Madison, Wisconsin, talking to farmers about the initiative’s updated standards for animal care. Emily Yeiser-Stepp, FARM director, said closer relationships between farmers and veterinarians, enhanced care standards for calves and non-ambulatory animals, and workforce training that spotlights quality animal care, all keep dairy a livestock leader in treatment of animals.

“It’s critically important for the dairy community to demonstrate what we’re doing within the animal care space,” she said. “It allows, again, for that assurance for our customers and consumers to feel good about the dairy products that they’re purchasing.”

To listen to the full podcast, click here. You can also find the Dairy Defined podcast on Spotify and SoundCloud.

NOTE: Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Statement on U.S. Response to Illegal EU Subsidies Under WTO

ARLINGTON, VA – “Subsidies and barriers that handicap U.S. businesses in the global marketplace by violating international trade commitments shouldn’t be tolerated. We strongly support the World Trade Organization’s imposition of $7.5 billion in retaliatory duties on European products, including dairy foods, to prod the EU to uphold its World Trade Organization commitments and reinforce the importance of two-way trade.

“NMPF strongly endorses the U.S. Trade Representative’s new list of European dairy exports that will now face higher tariffs, including cheeses, yogurt and butter.

“The U.S. is running a $1.6 billion dairy trade deficit with Europe because of unfair EU trade practices that block our access to their market while they enjoy broad access to ours.

“Trade authorities should also address one particularly egregious example of EU trade practices: the EU’s abusing the use of geographical indications to limit competition from cheese exporters in the U.S. that use common food names. Rather than compete head-to-head with high-quality American-made foods by allowing the use of common food names to coexist alongside GIs relating to those products, Europe instead blocks sales of these everyday food products from the United States and aggressively pressures other countries to do the same.

“The retaliatory tariffs announced today are a clarion call for fair trade and an indication that trade must be a two-way trade. What better way to reduce the U.S. trade deficit with Europe than by selling them award-winning US cheeses?”

Note: Today the World Trade Organization announced the size of the retaliatory tariffs on EU goods the U.S. may levy in response to illegal EU subsidies to Airbus. These tariffs may continue until the EU brings its policies into compliance with WTO rules.

###

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Registration Deadline is Oct. 10 for 2019 Annual Meeting

With the registration deadline for the 2019 NMPF annual meeting looming Oct. 10, dairy producers and cooperative executives need to reserve both a hotel room and register for the meeting by the end of this week.

This year’s meeting, Nov. 4-6 at the Hyatt Regency hotel in New Orleans, will highlight the ways DMI and NMPF are collaborating to tackle two major issues facing dairy farmers today:  the importance of animal care in promoting the image of the U.S. dairy sector; and the opportunities available to U.S. dairy farmers for international market growth.

Attendees will hear from industry leaders during panel discussions on these topics, including Mike Haddad of Schreiber Foods; Simon Vander Woude of California Dairies, Inc.; Mike Durkin of Leprino Foods; and Ritch Allison of Domino’s Pizza. These perspectives will be complimented by the unique perspectives of farmer leaders from across the country. Attendees will also hear from University of California-Davis professor Frank Mitloehner, who will address how the entire value chain can work together to make dairy a sustainability success story.

The meeting will feature a Town Hall presentation from National Milk staff to provide participants with an overview of the work that the organization has provided for its members in 2019.  The general sessions will be preceded by the NMPF Board and Delegates meetings, and the Young Cooperator session, on Monday, Nov. 4.

Learn more about the meeting from the 2019 Join Annual Meeting website.  Individuals may register for the 2019 Join Annual Meeting at this link. Make hotel reservations ASAP using this link (NOTE: reserving a hotel room is a separate process from meeting registration).

CWT-assisted sales contracts top 94 million pounds of dairy product exports

Cooperatives Working Together in September assisted member cooperatives in capturing 39 contracts to sell 2.4 million pounds of American-type cheeses, 299,829 pounds of butter, 7.8 million pounds of whole milk powder, and 668,001 pounds of cream cheese. The products will be going to customers in 12 countries in Asia, the Middle East, Central and South America and are being shipped during the period from September 2019 through next February.

These contracts bring the 2019 total CWT-assisted product sales contracts to 94.4 million pounds, which includes of 42.6 million pounds of cheese, 4.5 million pounds of butter, 42 million pounds of whole milk powder, 277,782 pounds of anhydrous milkfat, and 5 million pounds of cream cheese. These transactions will move the equivalent of 848 million pounds of milk on a milkfat basis overseas.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, helps 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 at http://www.cwt.coop/membership.

Innovation Center Accepting Sustainability Award Nominations

The Innovation Center for U.S. Dairy is now accepting nominations for the 2020 U.S. Dairy Sustainability Awards, which showcases the efforts cooperatives are making across the country that demonstrate positive environmental, societal and economic impact.

Cooperatives or farmer-members may be nominated in any of the following categories:

  • Outstanding Dairy Farm Sustainability
  • Outstanding Community Impact
  • Outstanding Supply Chain Collaboration
  • Outstanding Dairy Processing and Manufacturing Sustainability

Entries are at no cost. To learn more about eligibility, application requirements and to nominate someone, visit USDairy.com/Awards. Nominations close Nov. 15.

More than 70 farms and business have already been recognized through the U.S. Dairy Sustainability Awards program. The 2020 winners will receive:

  • An expense-paid trip to Chicago next April to the awards ceremony and annual dairy sustainability events
  • National and local recognition of their passion for sustainability
  • A featured case study on com to share insights and lessons learned with industry peers
  • Opportunities to work with others in the dairy community to help advance sustainability

NMPF Asks EPA to Reassess Washington State Nitrate Study

In a letter to Administrator Andrew Wheeler, NMPF asked the Environmental Protection Agency to reassess a 2012 study examining the sources of nitrates in Washington’s Yakima Valley.  This report unfairly accuses local dairy farmers of contributing the majority of nitrates in lower Yakima Valley groundwater. When this study was published, there were questions and concerns raised by some of the top scientists and agronomists in the country that were apparently ignored by the Region 10 EPA staff.  Yet EPA has used this flawed study as the basis for regulatory decisions.

The study had several flaws, including inadequate data to support the conclusions that were being made, limited site information, using data only pertaining to the soils in the Yakima valley, errors in estimating the seepage rates from manure lagoons and not accounting for all sources of nitrates. Other groups have written letters, as has Rep. Dan Newhouse, R-WA, in support of doing a new review of the study. NMPF is hoping the agency will soon conduct a more thorough review of the science.