Author: Theresa Sweeney

Young Dairy Leaders Champion Key Issues on Capitol Hill

Posted on by Theresa Sweeney

NMPF hosted young dairy farmer leaders from across the United States June 3-4 for the National Young Cooperators (YC) Program’s annual Dairy Policy and Legislative Forum in Washington, D.C.

Forty-nine young dairy farmers and cooperative coordinators from 17 states representing ten member cooperatives participated in discussions about political engagement and dairy policy issues along with training on how to be an effective advocate and spokesperson for dairy. YCs then headed to Capitol Hill to speak with members of Congress and their staff about NMPF priorities including the 2024 Farm Bill, dairy labeling and foreign market access.

“There are so many things that affect us, but they don’t affect us in a way that we see every day,” Matthew Lansing, an Iowa dairy farmer who co-chairs the National YC Program, said in a Dairy Defined Podcast released before the fly-in. “Keeping involved and up to date as much as we can and pushing for things that we need on a farm on a day-to-day basis is really key for us to propel forward into the future and be what we need to be for consumers going forward.”

Speakers for this year’s event included NMPF Executive Committee members Jay Bryant, president and CEO of Maryland & Virginia Milk Producers Cooperative Association, and Doug Chapin, chairman of Michigan Milk Producers Association. Both shared about their backgrounds and leadership experiences while emphasizing the importance of political engagement. YCs also toured the U.S. Capitol with Rep. Marc Molinaro, R-NY and heard remarks from Rep. Kim Schrier, D-WA, at this year’s congressional breakfast.

Since 1950, the National YC Program has provided emerging dairy leaders with a better understanding of issues facing farmers and their cooperatives. The program is open to younger and beginning dairy farmers who own or are employed on a dairy farm that is a member of one of NMPF’s member cooperatives. Click here and check the National YC Program box to stay up to date on program activities.

CWT Task Force Approves Recommendations from Expert Working Groups

Posted on by Theresa Sweeney

The task force of farmers and cooperative leaders evaluating Cooperatives Working Together’s future on June 24 approved a series of improvements for the self-help program when it is renewed after 2024.

Following an extensive review of CWT’s current operations and an evaluation of the potential value of an expanded export assistance program, the task force endorsed several detailed proposals developed and refined by three working groups of cooperative staff experts in the areas of Product Mix; Bid Process Adjustments; and Market Development.

The task force’s decision will now be reviewed July 9 by the NMPF Executive Committee, and later by the full NMPF Board of Directors. The recommendations would then become part of the next CWT program cycle that begins Jan. 1.

The working group recommendations include updates to or added resources within the following program areas:

  • All cheese varieties will be eligible for CWT’s price gap support
  • CWT will create targeted pilot programs to address tariff coverage for value-added skim milk powder sales to Southeast Asia, and a target market premium for cheese sales to Central America & the Caribbean
  • CWT will offer fat-equivalent support for the following products: ESL/aseptic fluid milk; evaporated/condensed milk; and ice cream
  • CWT will increase its operating program bid flexibility to extend eligible delivery periods to 12 months, and remove volume limits on a trial basis
  • CWT staff will provide increased insight on bid acceptance parameters, sharing a brief summary with weekly offers explaining shifts in support levels; and
  • CWT will create an advisory group to provide strategic direction and market development support, with a Phase I emphasis on pre-competitive support that provides opportunities for all cooperatives to participate.

The task force met earlier at NMPF’s June Board meeting to receive a preview of working group activity and to review a recent assessment of CWT’s impact on milk prices.

During its meeting, the Board of Directors approved five objectives to pursue as part of the renewal effort for the CWT program after 2024. They include:

  • CWT should seek to achieve the highest participation of cooperatives in the export assistance program
  • The contribution made to CWT should be at a level that maximizes the benefit back to dairy producer milk prices, not to exceed 4 cents per cwt.
  • CWT’s export assistance program should promote consistent supplies of U.S. dairy products into foreign markets. Assistance offered should create competitively landed values for U.S. dairy products that will impact milk prices paid to U.S. dairy producers
  • CWT should enhance program operations (e.g., processes and program reviews) including establishment of an operating committee to help direct those functions; and
  • CWT should explore market development opportunities within its overall program budget structure.

June CWT-Assisted Export Sales Top 5.4 Million Pounds

CWT member cooperatives secured 56 contracts in June, adding 5.4 million pounds of product to CWT-assisted sales in 2024, an amount equal to 47.8 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa, Oceania and South America and will be shipped from June through December 2024.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

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.

NMPF Board Calls for Milk-Pricing Fairness, Leads on H5N1 Response

Posted on by Theresa Sweeney

NMPF leadership expressed confidence that farmers would soon see a fairer federal system for milk pricing and highlighted dairy farmers’ robust response to H5N1 influenza in dairy cattle at the organization’s Board of Directors meeting June 4-5.

“Even with all the stresses on the farm, there’s still not a better industry,” said Randy Mooney, a dairy farmer from Rogersville, MO, and a member of the Dairy Farmers of America cooperative, in remarks at the meeting. “I’m proud of where we’re at, producing high quality, nutritious food for the consumer. It’s amazing how dairy farmers do it.”

Board members spent two days reviewing recent policy developments, including Federal Milk Marketing Order deliberations, the progress of the 2024 Farm Bill, and up-to-date information on H5N1, which has led to significant federal and farmer investments in biosecurity and testing. NMPF Chief Science Officer Dr. Jamie Jonker led discussion on the issue.

The meeting was held with NMPF’s annual Young Cooperators fly-in (see separate story), in which young dairy farmers meet with lawmakers to advocate for the industry. Dairy farmers urged passage of a Farm Bill, expanded market access for U.S. dairy products and federal action toward integrity in milk labeling, restricting the use of dairy terms to animal products in line with Food and Drug Administration standards.

The Board also examined potential improvements to the NMPF-led Cooperatives Working Together program (see separate story), the 21-year-old farmer self-help initiative that is up for renewal after 2024. A member task force has been weighing a range of options to expand the use of CWT’s export assistance program. The NMPF Board approved a series of five directional goals for CWT as it considers the program’s parameters in 2025 and beyond.

The board also elected three new members: Dave Peterson of Minnesota, representing Associated Milk Producers, Inc.; Alex Peterson of Missouri, representing Dairy Farmers of America; and Mike Schoneveld of Washington, representing Darigold.

FMMO Recommendations Build on NMPF Success

Posted on by Theresa Sweeney

USDA’s proposed plan for Federal Milk Marketing Order (FMMO) modernization release July 1 reflected years of painstaking NMPF efforts in crafting a comprehensive plan and building consensus across dairy, leading to recommendations that will set dairy up for success.

The proposal, which is open for comment through August, comes after USDA examined hearing briefs submitted by participants in 2023’s record-long federal order hearing. NMPF again led with its comprehensive approach to improved milk pricing, offering the department detailed proposals that worked to ensure benefits for farms in all regions, of all sizes.

“NMPF is heartened that much of what we proposed after more than two years of policy development, and another year of testimony and explanation, is reflected in USDA’s recommended FMMO modernization plan,” NMPF President and CEO Gregg Doud said in a statement the day the plan was released.

“Crafting an effective milk-pricing system for farmers is complex and requires a careful balance. USDA’s plan acknowledges that complexity and, while not matching our proposal in every detail, looks largely in keeping with the comprehensive approach painstakingly determined by the work of dairy farmers and their cooperatives over the past three years,” Doud said. “We look forward to examining this proposal topic-by-topic, gathering input regarding the various needs of our members nationwide, and adding their insights as this process moves toward a vote of producers.”

Doud elaborated on USDA’s plan, and its relationship to proposals by NMPF and others, in NMPF’s monthly CEO’s Corner column.

The proposal is now in a 60-day comment period. NMPF’s member-led task force on FMMO is meeting July 11 to discuss the plan and offer member input, while the following day NMPF’s Co-op Communicators Committee is discussing publicity and farmer-communications efforts to educate the industry on the proposal. After USDA reviews public comments, a final plan will be put to a vote of producers, likely in the early months of 2025.

Co-op Leadership Brings FMMO Modernization Success

Posted on by Theresa Sweeney

Well done, co-ops. Your leadership is shaping a better future for dairy.

On Monday, an effort that took more than three years, more than 200 meetings, 49 days of a record-long Federal Order hearing, and countless hours of analysis and discussion were reflected in a recommended USDA plan for Federal Milk Marketing Order modernization that incorporates much of the comprehensive approach to improvements we advocated throughout.

Yes, not every detail is exactly as we would have had it – we always knew that would be the case. And USDA’s plan isn’t set in stone – we take very seriously the comment period we will soon be in and plan a detailed response to this proposal. Our FMMO task force is meeting to discuss the plan next week; even as we speak, our staff and cooperative experts are putting pen to paper to better understand how various parts of the USDA plan will interact to affect dairy farmers and the cooperatives they own, as well as the broader industry.

That’s all to say our work is far from over. But Monday’s decision was arguably the critical milestone in this process. And this industry – led by the member-owners of the nation’s leading dairy cooperatives – has many reasons to be heartened by the improvements USDA has proposed to the nation’s Federal Milk Marketing Order system.

A few notes on what USDA offered, and how it compares to what we’ve advocated.

  • On the “higher of” Class I mover. Noting that dairy farmers have lost roughly $1.3 billion in revenue since the mover was changed in 2019, we fought for a return to the higher-of in the name of fairness and real-time market signals. Processors proposed a different formula, citing its importance to risk management, especially for extended shelf-life milk. Recognizing the need to restore orderly milk marketing, USDA decided to go back to the higher-of, with an accommodation for extended shelf-life milk, thus granting NMPF’s request for the vast majority of U.S. fluid milk. USDA’s solution is, frankly, as innovative as it is fair – a classic case of two sides not getting all that everyone wanted, but everyone getting what they most needed.
  • On make allowances. USDA’s numbers for an adjustment were higher than what NMPF proposed, though not greatly out of line with our analysis. And USDA denied the processors’ request to automatically increase the numbers over the next three years, which NMPF opposed. Agreement was nearly universal that make allowances, which hadn’t been revised since 2000, needed to change. The next step now will be seeking better plant-cost data through mandatory surveys via legislation, a step that’s been included in every significant congressional farm bill plan that’s been proposed.
  • On increasing the Class price skim milk component factors. Again, USDA’s plan takes a direction similar to NMPF’s, though it doesn’t include the automatic update provision we proposed.
  • On the Class I differentials. In many cases, USDA’s county-level calculations matched our own. In many others, the calculations deviated minimally. And in a few others, the differences were significant. Meanwhile, USDA denied a processor proposal to zero out the base differential, which would have significantly reduced every differential in the country and set the Class I differentials to zero at some locations in the West. We will be examining USDA’s methodology to better understand its calculations, reflecting the best data and our members’ input.
  • On removing barrel cheese from the protein price formula. USDA accepted NMPF’s proposal without modification.

As has always been the case, member leadership is what has made this process work for dairy. The conversation is continuing, and the comprehensive, consensus-driven approach that has been our hallmark will also continue.

Once Monday’s proposal is officially published in the Federal Register, we and other stakeholders will have 60 days to submit comments to USDA. A final producer vote is projected for early 2025. Again, thank you to all the cooperative leadership for what has been accomplished so far, and for the good work for dairy that will continue. And with that, happy Independence Day. We’ll be back next week for the second half of an already successful year.

Gregg Doud

President & CEO, NMPF

 

Methane-Reducing Feed Additive Creates Revenue Streams

Posted on by Theresa Sweeney

With FDA’s review complete, Elanco’s Bovaer is getting ready for the U.S. marketplace. But the methane-reducing feed additive’s success will be as much about economic as environmental sustainability, said Katie Cook, Elanco’s Vice President of Livestock Sustainability and Farm Animal Marketing, in a Dairy Defined podcast released today.

“The biggest thing, and the thing that’s most important, is not only are we making sure that we’re providing an environmental sustainability practice to our producers, but most importantly we’re providing them with additional profitability,” Cook said. “It’s a key tool as we think about telling our dairy story and the value that our dairy products bring to consumers. But more importantly, as a producer, it’s also giving you an additional revenue stream as we think about the economic viability of our farms’ longer term.”

You can find and subscribe to the Dairy Defined podcast on Apple Podcasts and Spotify under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

NMPF Statement on Senate Ag GOP Farm Bill Framework

Posted on by Theresa Sweeney

From Gregg Doud, President and CEO, National Milk Producers Federation:

“Dairy farmers and their cooperatives commend Senate Agriculture Committee Ranking Member John Boozman, R-AR, for issuing a strong farm bill framework that marks another important step toward enacting a bipartisan farm bill into law this year. Ranking Member Boozman’s framework includes numerous dairy priorities, such as reauthorizing and updating the vital Dairy Margin Coverage safety net and advancing NMPF-led bipartisan bills to spur approval of innovative feed ingredients, protect the use of common food names, and boost consumption of nutritious milk among our nation’s youth.

“A five-year farm bill provides producers with certainty as they manage their risk and resources and feed consumers at home and abroad. We stand ready to continue working with House and Senate Ag leaders in both parties to complete the job this year.”

Fairness to Farmers Makes Dairy Work

Posted on by Theresa Sweeney

Happy National Dairy Month!

It’s hard to have National Dairy Month without dairy, and it’s hard to have dairy without dairy farmers – and that’s why it’s important to treat them well.

But what hasn’t worked out well for milk producers since 2019 is the current formula for the Class I mover – the formula that helps set the price of fluid milk under Federal Milk Marketing Orders — was changed in the 2018 Farm Bill. Under current rules, which were adjusted so that milk processors could better manage pricing risk, dairy producers have lost an estimated $1.2 billion compared to the previous formula.

The losses are occurring because farmers now bear a disproportionate part of the burden when prices turn volatile. That wasn’t foreseen when the change to the formula went into effect. It wasn’t the intention of what was meant to be a revenue-neutral adjustment, and it isn’t fair. And fairness to farmers is what makes dairy work.

Fortunately, momentum for relief is building. NMPF’s proposal before the USDA’s Federal Milk Marketing Order hearing restores the old formula, and the farm bill that passed the House Agriculture Committee also brings it back. That’s more than just relief for farmers – it’s the right thing to do. And it would be a great thing to raise a glass to this Dairy Month.

NMPF Names 2024 National Dairy Leadership Scholarship Winners

Posted on by Theresa Sweeney

The National Milk Producers Federation Board of Directors has selected five graduate students researching in areas that benefit dairy cooperatives and producers to receive scholarships as part of the 2024 NMPF National Dairy Leadership Scholarship Program. Scholarship recipients include:

  • Agustin Olivo, a doctoral candidate in Animal Science at Cornell University in Ithaca, NY. Olivo’s research focuses on evaluation and dissemination of system analysis tools and performance indicators to improve environmental outcomes of New York dairies.
  • Ana Beatriz Montevecchio Bernardino, a doctoral candidate in Veterinary Clinical Sciences at the University of Florida in Gainesville. Montevecchio Bernardino is studying the effect of a novel non-steroidal anti-inflammatory formulation on welfare of Holstein cows challenged with E. coli.
  • Grant Fincham, a master’s of science candidate in Ruminant Nutrition at the University of Nebraska-Lincoln. Fincham’s research looks at whole animal energy utilization and manure biogas production in feeding dried distillers grains with solubles to lactating dairy cattle.
  • Lynn Olthof, a doctoral candidate in Animal Science-Dairy Management at Michigan State University. Olthof is studying the economic implications of dairy farm management decisions.
  • Megan Lauber, a doctoral candidate in Dairy Science at the University of Wisconsin-Madison. Lauber is investigating an integrated approach to optimize sexed semen in dairy herds.

“Congratulations to each recipient of this year’s NMPF scholarships,” said NMPF President and CEO Gregg Doud. “Supporting high-quality dairy research benefits our members and cooperatives, which fundamentally is what NMPF strives to do every day. We look forward to the contributions these scholars will make to the dairy community and are thrilled to help these students succeed.”

The recipients were confirmed as part of NMPF’s Board of Directors meeting held in Arlington, VA, on June 5-6. To learn more about and contribute to the NMPF National Dairy Leadership Scholarship program, please visit: www.nmpf.org/programs/scholarship.

NMPF Board Calls for Milk Pricing Fairness, Leads on H5N1 Response

Posted on by Theresa Sweeney

National Milk Producers Federation leadership expressed confidence that farmers would soon see a fairer federal system for milk pricing and highlighted dairy farmers’ robust response to the challenge of H5N1 influenza in dairy cattle at the organization’s Board of Directors meeting, which concluded today.  

“Even with all the stresses on the farm, there’s still not a better industry,” said Randy Mooney, a dairy farmer from Rogersville, MO, and a member of the Dairy Farmers of America cooperative, in remarks at the meeting. “I’m proud of where we’re at, producing high quality, nutritious food for the consumer. It’s amazing how dairy farmers do it.” 

The U.S. Department of Agriculture is expected to release its plan for Federal Milk Marketing Order modernization at the beginning of July. NMPF has led the push for updated rules that reflect the current industry, a three-year effort that culminated in a 49-day FMMO hearing late last year.  

Board members spent two days reviewing recent policy developments, including the progress of the 2024 Farm Bill, and receiving up-to-date information on H5N1, which has led to significant federal and farmer investments in biosecurity and testing. NMPF Chief Science Officer Dr. Jamie Jonker led discussion on an issue that is critical to dairy’s future.  

The meeting was held with NMPF’s annual Young Cooperators fly-in, in which young dairy farmers meet with lawmakers to advocate for the industry. Dairy farmers urged passage of a Farm Bill, expanded market access for U.S. dairy products and federal action toward integrity in milk labeling, restricting the use of dairy terms to animal products in line with Food and Drug Administration standards.  

The Board also examined potential improvements to the NMPF-led Cooperatives Working Together program, the 21-year-old farmer self-help initiative that is up for renewal after 2024. A member task force has been weighing a range of options to expand the use of CWT’s export assistance program. The NMPF Board approved a series of five directional goals for CWT as it considers the program’s parameters in 2025 and beyond. 

At the meeting, the board also elected three new members: Dave Peterson of Minnesota, representing Associated Milk Producers, Inc.; Alex Peterson of Missouri, representing Dairy Farmers of America; and Mike Schoneveld of Washington, representing Darigold.  

USDEC, NMPF Ally with Colombian Dairy Association to Strengthen Trade, Drive Dairy Priorities

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF) and Colombian Association of Dairy Industry (Asoleche) signed a Memorandum of Understanding (MOU) today to increase cooperation between the U.S. and Colombian dairy industries as they advocate for pro-trade and science-based policies.

The agreement details objectives focused on improving communications and knowledge-sharing between the two industries, highlighting the economic and social importance of the dairy industry, and eliminating trade barriers that harm producers and consumers alike.

“This agreement is another significant step in the U.S. dairy industry’s commitment to working with and supporting our partners in Colombia and across Latin America,” said Krysta Harden, president and CEO of USDEC. “Both industries benefit when we have a robust trade relationship. Everyone – especially Colombian consumers – are worse off when policymakers impose ill-advised trade barriers. We look forward to continuing to build on our strong partnership.”

“The U.S. and Colombian dairy industries share many of the same values and priorities,” said Gregg Doud, president and CEO of NMPF. “We’re excited to work alongside Asoleche to promote positive, sound policies that build a stronger dairy industry in the Americas and internationally.”

“At Asoleche, our mission is to strengthen the competitiveness and sustainability of the Colombian dairy industry,” said Ana María Gómez Montes, Executive President of Asoleche. “This partnership with USDEC and NMPF will enable us to promote milk consumption, which is one of the greatest challenges we face as a dairy chain in Colombia. It will also provide us with more tools for innovation through the exchange of knowledge between industries. We hope that together we will develop innovative projects that benefit the entire dairy chain and consumers in Colombia who rely on both domestic and imported dairy products.”

The MOU  complements similar agreements USDEC and NMPF have made throughout Latin America, including with Sociedad Rural Argentina, the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).