Author: Theresa Sweeney
NMPF Lauds FDA’s Approval of Bovaer
From Gregg Doud, President and CEO, National Milk Producers Federation:
“FDA approval of Elanco’s Bovaer is another important step on U.S. dairy’s journey toward a net-zero future, one in which dairy farmers have already made great progress. Bovaer and other new technologies that reduce enteric emissions will help U.S. farmers be rewarded for participating in voluntary, producer-led sustainability initiatives, which is critical for the success of such efforts.
“Consumers around the world are demanding lower-carbon foods. Innovations such as Bovaer will help U.S. dairy farmers remain globally competitive and maintain their role as leaders in more sustainable dairy production. We thank FDA for its recognition of and support for these efforts.”
“We also commend Agriculture Secretary Tom Vilsack and his team at USDA for supporting dairy farmers as they prepare to use Bovaer on their own operations. We are grateful to the department for awarding more than $90 million to dairy farmer-owned cooperatives and partner organizations for innovative feed management under the Regional Conservation Partnership Program for fiscal year 2023. FDA’s approval of Bovaer now enables these key resources to move forward, and sets the stage for dairy to build on this first round in fiscal year 2024.”
NMPF Thanks House Agriculture Committee for Farm Bill Progress and Key Dairy Wins
The National Milk Producers Federation thanked members of the House Agriculture Committee for their work to advance a 2024 Farm Bill through Congress this year, with bipartisan approval for a plan introduced by Chairman Glenn “GT” Thompson that includes numerous provisions important to dairy farmers and the cooperatives they own.
“We commend Chairman Thompson and committee members from both parties for approving a 2024 House Farm Bill that includes critical dairy priorities that will help support and grow this industry,” said Gregg Doud, president and CEO of NMPF. “We will do whatever we can to work with lawmakers in both chambers on a bipartisan basis to pass a new law as soon as possible, knowing that dairy is well-served by what the House Agriculture Committee approved today.”
Provisions benefiting dairy urged by NMPF are found across the bill’s titles, including ones that:
- Extend the Dairy Margin Coverage (DMC) program through 2029; update production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extend the ability for producers to receive a 25% premium discount for locking five years of coverage;
- Restore the “higher of” Class I mover to reinstate orderly milk marketing and require plant cost studies every two years to provide better data to inform future make allowance conversations, two key components of NMPF’s Federal Milk Marketing Order modernization proposal;
- Support the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in our schools;
- Boost funding for critical dairy trade promotion programs and protect the use of common food names worldwide;
- Support voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program, with dedicated funds for livestock operations and language encouraging states to prioritize methane-reducing practices;
- Improve the certification of Third-Party Service Providers with technical expertise related to conservation planning to better assist producers participating in National Resources Conservation Service (NRCS) programs;
- Continue the Farm and Ranch Stress Assistance Network; and
- Increase funding for animal health initiatives and programs.
Other provisions relevant to dairy include:
- Increasing the DMC Program Tier 1 volume threshold from five million pounds to six million pounds;
- Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program;
- Directing USDA to collect and publish cost-of-production data for organic milk;
- Raising EQIP conservation funding from $2.4 billion in fiscal year 2025 to $3.25 billion in fiscal year 2029;
- Requiring USDA to create a public process for updating conservation practice standards every five years; and
- Requiring USDA to report to Congress on the department’s preparedness to support livestock and poultry growers facing economic losses in the event of an outbreak of a foreign animal disease.
Cheese Exports Boost U.S. Dairy Market
Study Reveals Reasons Why Some Americans Lack Adequate Dairy Nutrition, Offers Roadmap to Better Diet Quality
Many Americans recognize dairy as a cornerstone of a healthy diet but continue to fall short of recommended daily intake as endorsed by the Dietary Guidelines for Americans. An in-depth consumer survey released today by the International Food Information Council (IFIC) and supported by the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF), explores barriers to dairy nutrition among Americans and how to remove them.
The report provides a roadmap for how industry, government, and health and nutrition groups can improve awareness of and access to lactose-free milk and dairy products; expand understanding about dairy’s nutritional value; and work with the dairy industry to extend shelf life and improve the value of dairy purchases to consumers.
The report draws on the beliefs, behaviors, and perceptions of Black, Latino, Asian/Pacific Islander, and Non-Hispanic White consumers toward dairy.
Key Data Points:
- Missed Opportunities for Lactose-Free: Nearly two in three Americans say they’ve never consumed lactose-free milk (64%), lactose-free flavored milk (76%), or other lactose-free dairy products other than milk (68%). The rate of non-consumption is more than half among Latino, Black, and Asian/Pacific Islander communities, indicating low awareness among groups that report higher rates of lactose sensitivity.
- Affordability a Leading Factor for SNAP and Non-SNAP Households Alike: Approximately 30% of all races and ethnicities at all income levels cite affordability as a reason for consuming milk.
- Expiration Dates and “Passive Avoidance” Top Barriers: Concern about spoilage before it’s used (19%), is a leading reason consumers avoid milk. Meanwhile, 37% of respondents cited no specific reason for limiting dairy consumption, suggesting “passive avoidance” that could be overcome with greater media, healthcare, and community outreach. Self-reported lactose sensitivities also contribute to higher levels of avoidance.
- Taste and Health Top Purchase Drivers, Cheese Reigns Supreme: Cheese is the most frequently consumed dairy product (90% weekly), followed by butter (85%), milk (75%), and yogurt (60%). Consumers overwhelmingly rank taste as the main factor for purchasing cheese, yogurt, and milk, followed by dairy being a good source of protein. Health benefits cited include bone health as the most recognized (90%), and other advantages including immune system support (65%) and heart health (54%).
Spotlighting a Disconnect Between Perception and Consumption
The “Exploring Fluid Milk & Dairy Food Consumption Patterns to Improve Diet Quality & Nutrition Equity” study reveals a disconnect between consumer perception and actual dairy intake. While a strong majority (78%) of Americans believe dairy is essential, many are not reaping its benefits.
“Good nutrition is the foundation of health and wellness for adults and children across all demographics, and dairy is a crucial part of a healthy diet beginning at a very young age,” said Michelle Matto, MPH, RDN, associate vice president of regulatory affairs and nutrition, IDFA. “This survey shows how consumers value dairy for nutrition and taste but may lack adequate information about or access to the types of dairy that are right for them and their families. It demonstrates that dairy will need to expand its partnerships with communities of color, with health and nutrition experts, and with policymakers to remove barriers preventing Americans from getting adequate dairy nutrition, including high quality protein, calcium, vitamin D, potassium, and health benefits including better bone health and lower risk for type 2 diabetes and cardiovascular disease.”
Moving Forward
The survey shows the clear need for greater educational efforts, said Miquela Hanselman, director of regulatory affairs for NMPF.
“The IFIC research puts data behind both the importance of dairy nutrition and the need for better education about what dairy options are available and what benefits they provide,” Hanselman said. “With discussion of the next Dietary Guidelines under way, it’s important that this information be communicated clearly and forcefully to all who may benefit, from consumers who need dairy nutrition to policymakers who determine federal programs.”
The IFIC research underscores the importance of targeted outreach programs to improve overall diet quality and achieve greater nutrition equity.
“While dairy is a chronically under consumed food group among many Americans, BIPOC and SNAP-eligible households may benefit most from hearing more about the health benefits associated with consistent dairy consumption. Education and outreach efforts tailored to increase awareness and availability of lactose-free dairy foods and beverages, in addition to emphasizing dairy’s benefits beyond bone health for everyone, present new opportunities,” said IFIC President & CEO Wendy Reinhardt Kapsak, MS, RDN. “Increased dairy consumption among all populations can positively contribute to improved diet quality and nutrition equity — availability, accessible, and affordability — goals that support enhanced health for all Americans.”
FMMO Formulas Need to Reflect Today’s Realities
Way back in the 1930s, one of the original motivations behind creating the Federal Milk Marketing Order system was to provide incentives for farmers to produce better milk. Much of the milk at the time was Grade B, which was lower quality than the Grade A milk earmarked for fluid consumption. To ensure an adequate supply of higher-quality milk, the FMMO system set up pricing that encouraged its production.
It worked. U.S. milk production is now almost entirely Grade A – even for uses in which Grade B is permissible, such as in certain manufactured dairy products. And in the past quarter century, better animal care, and better science and technology, has improved milk even more in terms of its nutrition, its quality and its premium-value components. For one example – take a look at how the percentage of protein in 100 pounds of milk has evolved since 2000.
Impressive. And just like in the 1930s, it has to do with incentives. The adoption of multiple component pricing in 2000 paid farmers for the protein content in most of their milk, just as they had long been paid for its milkfat content.
That’s the good news. But the bad news is that in many other ways, federal order pricing formulas that often haven’t changed since 2000 don’t reflect the structure of today’s dairy industry. And that disrupts those incentives, to the detriment of everyone who holds a stake in dairy’s success.
For example, Class I differentials – designed to ensure that processors receive an adequate supply of fresh milk to produce fluid milk products – haven’t been updated nationwide since 2000. Make allowances in the federal order product price formulas – which are supposed to cover the cost of converting raw milk components into finished products – have also gone a generation without adjustment, hindering processors that farmers need to thrive.
Simply put, dairy as an industry can’t thrive without adequate updates to federal formulas. So hooray for protein. But many current formulas still don’t work for farmers and the cooperatives they own. The improved quality and availability of American milk comes from farmers’ hard work. And good work should be rewarded.
NMPF Statement on H5N1 Federal Aid to Assist Dairy Farmers
From NMPF President & CEO Gregg Doud:
“NMPF thanks Secretary Vilsack and federal leadership for effectively using their existing authorities to offer necessary assistance for dairy farmers as they meet the challenges of H5N1 in dairy cattle. Care for farm workers and animals is critical for milk producers, as is protecting against potential human health risks and reassuring the public.
“We look forward to continued collaboration and consultation with USDA and other federal agencies as we monitor, understand, and contain this outbreak, and we will do what we can to help dairy farmers understand and benefit from these initiatives as swift implementation is put into motion.”
U.S. and Mexico Dairy Industries Renew Commitment to Cross-Border Cooperation
Leading dairy representatives from the United States and Mexico met this week in Chihuahua, Mexico to renew their commitment to collaborate and advocate on mutually beneficial dairy policies. This was the sixth meeting between leading U.S. and Mexico dairy organizations since 2016.
The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) steered the U.S. delegation, which consisted of more than 14 member companies, U.S. farmer representatives, and USDEC and NMPF staff. Delegates from Mexico’s milk producers and dairy processors included:
- Confederación Nacional de Organizaciones Ganaderas (National Organization of Livestock Organizations)
- Asociación Mexicana de Productores de Leche (Mexican Association of Milk Producers)
- Gremio de Productores Lecheros de Mexico (Mexican Dairy Producers Guild)
- Cámara Nacional de Industriales de la Leche (National Chamber of Milk Industries)
- Consejo Nacional Agropecuario (National Agricultural Council).
Throughout the week, attendees discussed the most pressing issues affecting both industries, in their local respective markets and across the globe.
“Our two industries share so many similar challenges that call for us to work together,” said Krysta Harden, president and CEO of USDEC. “Mexico is and will continue to be a valuable partner for U.S. dairy. These meetings help strengthen those ties and set the dairy sectors in both countries up for continued success.”
“The U.S. and Mexico dairy industries are key partners in their shared mission to grow demand and protect dairy’s public image,” said Gregg Doud, president and CEO of NMPF. “The renewed commitment signed today further strengthens our important relationship.”
As part of the meeting, attendees toured the Reny Picot Mexico plant in Chihuahua. The only demineralized whey powder producer in Mexico, Reny Picot is the largest nonfat dry milk powder importer in Mexico, importing an average of 5,000 metric tons per month.
Joint Statement:
On their Sixth annual meeting within the framework of the partnership to strengthen the milk production sector in North America, held in the city of Chihuahua, Mexico, hereby agree to:
- Preserve, facilitate, and improve trade between the two
- Preserve this forum for discussion and analysis of relevant topics and issues of the milk and dairy producing sectors of Mexico and the United States.
- Have as a key objective the growth of dairy consumption in both countries for the benefit of producers, manufacturers and consumers in the United States and Mexico.
- Promote joint activities seeking to increase the consumption of dairy products within our
- Identify and promote actions that improve the productivity of dairy farms in Mexico and the United States.
- Strengthen the image of milk and dairy products in both countries to defend against the misuse of milk and dairy product names by other products of non-dairy origin.
- Maintain an open communication channel between the milk and dairy producer organizations of both countries, with the aim of reaching consensus for the benefit of our Likewise, exchange information and successful experiences through the participation of members of both countries in forums and congresses organized by our associations.
- Work on strengthening cooperation in technological exchange and training, both in terms of on-farm milk production and in improving the quality and safety of milk and dairy products from a nutritional and health standpoint.
- Work to share information on key new areas such as sustainability, animal welfare, farm labor, and other issues as they arise and are mutually agreed upon for the benefit of our producers and industry to ensure that we coordinate dairy advocacy efforts in international forums and among consumers.
- Exchange information about the performance of the milk and dairy products market in the North America region.
- Continue with activities to defend common food names, particularly cheese names, thus allowing their free use in our North American market.
- Develop a work plan on the issues of the common agenda, with indicators and a follow-up program with scheduled meetings.
NMPF Outreach Spans Denver to New Delhi in April
NMPF staff represented U.S. dairy farmers and their cooperatives at events ranging in location from Denver to New Delhi in April, showing leadership across industry while reaching out to dairy producers in the U.S. and worldwide.
Highlights from among more than six dozen public presentations from NMPF staff before members and dairy stakeholders include Regulatory Affairs Director Miquela Hanselman discussing nutrition, labeling, HPAI, and farm bill updates at the Western Milk Seminar in Denver, CO, on April 23.
In the international arena, trade and economics team leaders Shawna Morris, Executive Vice President for Trade Policy and Global Affairs, and Will Loux, Senior Vice President for Global Economic Affairs, represented U.S. dairy positions in Toronto, representing NMPF and the U.S. Dairy Export Council during April 24-26 meetings of the International Dairy Federation’s (IDF’s) Standing Committee on Dairy Policies and Economics.
Loux became vice-chair of the committee in October, while Morris attended as the lead U.S. representative for IDF.
And Jaime Castaneda, Executive Vice President for Policy Development & Strategy with NMPF and USDEC, was part of a USDA Foreign Ag Service India trade mission, which included policy and business meetings with officials and potential importers from India, Nepal and Sri Lanka, April 22-25. Castaneda also represented U.S. dairy in meetings in Brazil and Italy in April and early May.
NMPF Welcomes Cordova to Staff, Ganley to Joint Economics Team
NMPF gained a new employee in April, and its Joint Economics Team with the U.S. Dairy Export Council also gained a new team member from the USDEC side, adding more expertise to the team’s coordinated efforts for dairy.
Jessi-Ryah Cordova joined NMPF as its FARM Program Communications Coordinator on April 22. The 2023 graduate of California Polytechnic State University-San Luis Obispo earned a bachelor’s degree in Agricultural Business. During her time at Cal Poly she worked at its Dairy Unit as a Business Assistant, milking cows and managing communication and administrative efforts.
Most recently, Cordova worked as a sales representative for Farmers Business Network connecting with farmers across the U.S. & Canada.
Ganley, Senior Director of Global Trade Analysis for the U.S. Dairy Export Council, is the newest member of the joint NMPF/USDEC economics team. Her role includes analyzing and forecasting global dairy markets to identify opportunities for U.S. dairy exporters and ways to grow demand for dairy products around the world.
Ganley has spent her entire career in dairy, food, and agriculture. Before joining USDEC earlier this year, she held roles with Leprino Foods, PepsiCo Foods, and most recently her consultancy Quarterra. She is based in Buenos Aires, Argentina.
NMPF Talks Trade and Collaboration with EU
NMPF staff met with European Union government officials and agriculture groups on April 8 as part of the U.S.-EU Collaboration Platform on Agriculture. The forum was launched by Secretary Tom Vilsack and EU Agriculture Commissioner Janusz Wojciechowski in 2021 to strengthen the relationship between the two industries and discussing best practices to collaboratively address shared challenges.
The meeting kicked off with a series of panel discussions. NMPF executive vice president for trade policy and global affairs Shawna Morris spoke on a panel entitled “The Future of the Livestock Sector: Pressures and Opportunities.” Morris underscored the U.S. dairy sector’s long-standing leadership on animal care through NMPF’s FARM program and ongoing work to reduce greenhouse gas emissions, led by the Innovation Center for U.S. Dairy.
Given the European Union’s tendency to impose burdensome regulations on its trading partners, Morris emphasized the importance of incentive-based policies, as opposed to counter-productive, prescriptive rules, particularly around climate and consumer preferences.
Following the conference, Morris participated in a subsequent discussion with EU Agriculture Ministry officials at an event organized by the U.S. Food and Agriculture Dialogue for Trade at the European Union’s embassy.
NMPF Secures Dairy Market Access Priorities in House Trade Program Renewal Bill
The House of Representatives introduced a bill on April 15 that would renew the Generalized Systems of Preferences (GSP) trade program with new agriculture-specific eligibility criteria. NMPF worked with Congressional offices to secure language giving U.S. dairy producers a fairer opportunity to sell their products in key markets.
Inactive since its expiration at the end of 2020, the GSP trade program eliminates U.S. duties for thousands of products imported to the U.S. from developing countries. U.S. dairy tariff rate quotas are not affected by the GSP program. To be GSP-eligible, countries must adhere to certain human rights and economic conditions. The House’s bill introduces new provisions that would provide a much-needed boost for the U.S. dairy industry, including requirements that beneficiary countries:
- Provide open and equitable market access to U.S. agriculture exports and
- Protect the generic use of common food and beverage terms.
Paired with the introduced Safeguarding American Value-Added Exports Act, this bill is positioned to strengthen the United States’ hand in combatting nontariff trade barriers in various export markets, including countering the European Union’s campaign to monopolize common name foods.
