Author: Theresa Sweeney

CWT Task Force Assesses Member Export Capabilities

Posted on by Theresa Sweeney

The task force of farmers and cooperative leaders leading the initiative to renew Cooperatives Working Together in late March issued a survey to NMPF’s members seeking data about the products they manufacture, and also feedback on the value of CWT to their organization and the broader dairy community.

The task force, formed earlier this year to consider how the CWT program should evolve in the future to better meet the needs of its members, is generating ideas to present a series of potential extensions of CWT’s current operations to the NMPF Board of Directors for approval. The survey sent to NMPF cooperatives CEOs seeks information about the type and volume of products manufactured by the membership. The resulting data will be analyzed to assess the potential for expanding the range of products that CWT supports.

Other ideas for CWT’s future activities include expanding the demand for new and different products in foreign markets and improving the collective logistics efficiencies of members’ supply chain processes. The task force will continue to meet virtually to refine these concepts and propose detailed proposals to the NMPF Board.

March CWT-Assisted Export Sales Total 9.5 Million Pounds

CWT member cooperatives secured over 70 contracts in March, adding 9.5 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this is equal to 96.9 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 March through August 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 Secures Policy and Funding Wins in Final Ag Spending Deal

Posted on by Theresa Sweeney

NMPF worked closely with Congress on several key provisions of a spending bill, ranging from school milk to broadband access, that were included this year’s appropriations for the USDA and FDA that President Biden signed into law March 9.

Among the law’s highlights for dairy is legislative language supporting the consumption of milk and dairy products.

  • The bill requires the U.S. Department of Agriculture to allow 1% and fat-free flavored milk to be offered at all grade levels, not just in high school, when it finalizes its upcoming school nutrition standards rulemaking;
  • It prevents the final school nutrition rule from limiting sodium, which is often added to cheese for functional purposes, in a manner more restrictive than the Target 2 sodium levels published in USDA’s 2012 school meals rule; and
  • The explanatory statement accompanying the bill directs USDA not to reduce the maximum monthly milk allowance under the Women, Infants and Children (WIC) program as it finalizes updates to the WIC foods package.

The enacted measure also funds numerous important agriculture programs. Dairy highlights include:

  • $90 million for the ReConnect program, the USDA Rural Development program working to provide broadband service to eligible rural areas;
  • $12 million for the Dairy Business Innovation Initiatives program, which provides direct technical assistance and grants to dairy businesses to further the development, production, marketing, and distribution of dairy products;
  • $10 million for the Farm and Ranch Stress Assistance Network, a USDA program aimed at connecting those working in agriculture to stress assistance and support programs; and
  • $3 million for the Healthy Fluid Milk Incentives Projects authorized in the 2018 Farm Bill to create pilot programs to increase milk consumption among SNAP households.

In addition to what the bill offers, the final bill does not include funding for Supplemental Nutrition Assistance Program (SNAP) pilot projects limited to “nutrient dense” foods as defined by the most recent Dietary Guidelines for Americans. NMPF advocated against this provision, as whole and reduced-fat (2%) milk would not have been able to be included in the pilots because the current guidelines only recommend consumption of low-fat and fat-free milk varieties.

February DMC Margin Gains Nearly $1/cwt Over January

Posted on by Theresa Sweeney

The February margin under the Dairy Margin Coverage (DMC) program rose by $0.96/cwt from a month earlier to $9.44/cwt, triggering a payment of $0.06/cwt for coverage at the $9.50/cwt maximum Tier 1 level.

The rise was due to a $0.50/cwt increase in the February U.S. average all-milk price to $20.60/cwt, and a $0.46/cwt drop in the DMC feed cost formula, mostly as a result of lower corn prices.

Futures-based forecasts at the end of March indicated that DMC margins would remain mostly above the $9.50/cwt maximum Tier 1 coverage level during the remainder of the current calendar year, with possible brief dips below this level in late spring.

NMPF, FARM Respond to Avian Influenza Cases with Information, Guidance

Posted on by Theresa Sweeney

NMPF and the FARM Program helped guide dairy farmers through an emerging biosecurity concern with timely, accurate information and industry-leading resources as the first cases of Highly Pathogenic Avian Influenza (HPAI) appeared in U.S. dairy cattle.

While the scope of bird flu in dairy is limited – a handful of cases scatted among several states – and no risk is being posed toward consumers, the new challenge has galvanized the industry toward identifying best practices in containing illness and minimizing impacts on dairy farmers and processors, with NMPF serving as a central information resource and FARM Biosecurity proving its value as an essential resource for farmers and dairy companies.

NMPF Chief Science Officer Dr. Jamie Jonker served as a leading industry expert and spokesperson shortly after the first USDA confirmation of HPAI in Texas dairy cattle March 25. Working with Senior Director of Communications Theresa Murphy, NMPF began crafting member alerts offering resources and information to farmers the previous week. Since then, NMPF has released five more alerts and created a web page dedicated to bird flu information, complementing the FARM Program’s Biosecurity page as a critical resource to manage bird flu-related challenges.

Jonker also led an April 1 NMPF member and FARM participant webinar on the topic that also featured Dr. Mark Lyons from USDA and Dr. Fred Gingrich from the American Association of Bovine Practitioners, giving the latest information on the fast-moving situation. The webinar attracted 1,380 registrants and will be followed up by more informational sessions in the future.

NMPF members and FARM Program participants with questions on HPAI should contact Dr. Jonker at jjonker@nmpf.org

NMPF FMMO Modernization Comments Put Farmers First

Posted on by Theresa Sweeney

NMPF, the largest U.S. dairy-farmer organization and the industry’s premier policy voice in Washington, submitted its final, formal legal “brief” on their behalf for Federal Milk Marketing Order (FMMO) modernization to the USDA on March 29.

The NMPF brief emphasized that those farmers are the reason the system exists — and that, by law, their priorities are pre-eminent in USDA consideration of a final plan.

“Our proposed package of proposals to the Federal Milk Marketing Order align perfectly with its mission and purpose, which were designed and intended to put farmers first,” said Gregg Doud, president and CEO of NMPF. “We’ve spent nearly three years painstakingly assembling the broad consensus among dairy farmers that modernization of the system needs to succeed. Our approach is careful and comprehensive, and it benefits farmers of all regions and types of operations.”

NMPF’s proposals include:

  • Returning to the “higher of” Class I mover;
  • Discontinuing the use of barrel cheese in the protein component price formula;
  • Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting;
  • Updating milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas;
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years;
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas; and
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.

In contrast to proposals driven by narrow self-interest, NMPF’s package of proposals reflect its broad-based membership and consensus-driven approach, which resulted in unanimous approval from its Board of Directors last year. With that unity unbroken, Doud said he looked forward to USDA’s consideration of NMPF’s solid hearing record which was built along with its recently submitted brief, as well as the department’s recommended decision expected at the beginning of July.

“NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own, and we continue to draw on the strength of our members,” he said. “Today we’ve taken another big step toward modernization. We continue to look forward to its successful conclusion.”

FMMO Modernization Must Put Farmers First

Posted on by Theresa Sweeney

This week the arduous process of modernizing the Federal Milk Marketing Order system reached another milestone, with participating organizations submitting their final statements summing up their arguments for why USDA should adopt their proposals as part of a new federal order.

NMPF continues its leadership, offering the most detailed, comprehensive plan to USDA. This process has never been about  who has the louder voice. From the very start it has been about putting in the work to understand the purpose and function of federal orders and painstakingly assembled the consensus support and careful approach that any plan needs to succeed.

It’s also because we’ve crafted our plan following principles that align thoroughly with the FMMO mission and purpose. In upcoming weeks, as USDA considers competing proposals, we expect that some of our opponents will attempt to muddy the waters, offering “solutions” that are incompatible with how federal milk marketing orders are meant to function – or, even worse, offering ideas that intentionally undermine core principles of the FMMO system. So, some principles for everyone to keep in mind as USDA moves forward.

The FMMO system is designed and intended to put farmers first. This isn’t just NMPF, the nation’s largest dairy-farmer organization, touting its own interests. It’s the literal legal language of a landmark interpretation of the Agricultural Marketing Agreement Act, which authorizes federal milk marketing orders. Under this statute, the “principal purposes” of the system is “to raise the price of agricultural products and to establish an orderly system for marketing them.” Court language further emphasizes that the law’s purpose is to protect milk producers. Specifically, the “‘essential purpose” of FMMOs is “to raise producer prices” and thus “ensure that the benefits and burdens of the milk market are fairly and proportionately shared by all dairy farmers.”

This principle is fundamental to every other consideration. Any revamp of orders must focus on producers, and it needs to benefit all producers fairly. That’s been the bedrock of our proposals, and its mission is well-served by the balance we’ve achieved.

The FMMO system is meant to encourage the orderly marketing of milk. Emphasizing the need for an “orderly system” – a well-functioning market is meant to benefit both milk producers and consumers. Again, the Agricultural Marketing Agreement Act allowing federal orders is established to “provide, in the interests of producers and consumers, an orderly flow of the supply thereof to market … to avoid unreasonable fluctuations in supplies and prices.”

That’s important to remember when considering approaches to the make-allowance, the Class I price surface, component pricing, and the other parts of our proposal. Along with the first priority of helping farmers, NMPF’s plans ensure an orderly market that serves consumers well without being unduly disruptive of any one component or adding disproportionate hardship to other key actors on the milk marketing system.

Arguments that boil down to “whatever gets me the most money” don’t seriously build consensus. And consensus is a necessity.

NMPF’s proposals for modernization were the most carefully balanced proposals presented at the hearing, but they were only about one-quarter of all proposed amendments to the order. Several competing proposals had some merit, especially from the perspectives of the organizations submitting them. What set our proposals apart was a genuine attempt to make separate pieces work together for the collective benefit of all dairy farmers – other proposals fell short in achieving that.

Even more disappointing were processor-led proposals that had no consistency or principle other than boosting processor bottom lines – a direct contradiction of the FMMO mission. These short-sighted ideas would, in many instances, lead to the unnecessary failure of numerous dairy farms and create disorderly markets.

And following on that, one final observation:

Dragging out modernization any further does nothing to help farmers. Anyone who thinks it doesn’t matter, remember: Farmers first.

Having witnessed the unnecessarily drawn-out hearing in Carmel, IN, it’s hard not to wonder if foot-dragging is a strategic choice in some circles. What’s a few months of million-dollar legal fees when a faulty Class I mover alone has cost farmers $1.2 billion since 2019? Who exactly benefits from a few more months of inaccurate component pricing that ensures farmers aren’t fairly compensated for the quality of their milk?

The original targeted timeline for a modernization vote was set for this fall, but now the spring of 2025 is more likely. Assuming that USDA adopts a plan that’s aligned with the key points above, it’s imperative that the entire dairy community, for the sake of the farmers the FMMO system is designed to serve, support timely approval and implementation. Drawn-out hearing-room banter is one thing – the prosperity of dairy farmers who have waited patiently long enough is more important than profiting from further delay.

Since this effort began in earnest in the wake of the COVID-19 outbreak, NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own. We continue to draw on the strength of our members throughout our united effort – that’s the foundation of success. We’ve taken another big step this week. We continue to look forward to its successful conclusion.

 

Gregg Doud

President & CEO, NMPF

 

NMPF FMMO Modernization Comments Put Farmers First

Posted on by Theresa Sweeney

The National Milk Producers Federation, the largest U.S. dairy-farmer organization and the industry’s premier policy voice in Washington, submitted its final, formal legal “brief” on their behalf for Federal Milk Marketing Order (FMMO) modernization to USDA.

The NMPF brief, which was submitted March 29 and hand-delivered to USDA today, emphasized that those farmers are the reason the system exists — and that, by law, their priorities are pre-eminent in USDA consideration of a final plan.

“Our proposed package of proposals to the Federal Milk Marketing Order align thoroughly with its mission and purpose, which were intended to put farmers first,” said Gregg Doud, president and CEO of NMPF. “We’ve spent nearly three years painstakingly assembling the broad consensus among dairy farmers that modernization needs to succeed. Our approach is careful and comprehensive, and it benefits farmers of all regions and types of operations.”

NMPF’s proposals include:

  • Returning to the “higher of” Class I mover;
  • Discontinuing the use of barrel cheese in the protein component price formula;
  • Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting;
  • Updating milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas;
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years;
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas; and
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.

In contrast to proposals driven by narrow self-interest, NMPF’s package of proposals reflect its broad-based membership and consensus-driven approach, which resulted in unanimous approval from its Board of Directors last year. With that unity unbroken, Doud said he looked forward to USDA’s consideration of NMPF’s solid hearing record which was built along with its recently submitted brief, as well as the department’s recommended decision expected at the beginning of July.

“NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own, and we continue to draw on the strength of our members,” he said. “Today we’ve taken another big step toward modernization. We continue to look forward to its successful conclusion.”

Joint Dairy Organization Statement on Highly Pathogenic Avian Influenza in Cows

Posted on by Theresa Sweeney

Statement from the National Milk Producers Federation (NMPF), the International Dairy Foods Association (IDFA), the U.S. Dairy Export Council (USDEC), and Dairy Management Inc. (DMI)

Earlier today, the U.S. Department of Agriculture confirmed highly pathogenic avian influenza (HPAI) in two dairy cattle herds in Texas and two herds in Kansas.

Importantly, USDA confirmed that there is no threat to human health and milk and dairy products remain safe to consume. Pasteurization (high heat treatment) kills harmful microbes and pathogens in milk, including the influenza virus.

Also, routine testing and well-established protocols for U.S. dairy will continue to ensure that only safe milk enters the food supply. In keeping with the federal Grade “A” Pasteurized Milk Ordinance (PMO), milk from sick cows must be collected separately and is not allowed to enter the food supply chain. This means affected dairy cows are segregated, as is normal practice with any animal health concern, and their milk does not enter the food supply.

Consumers in the United States and around the world can remain confident in the safety and quality of U.S. dairy.

Enhanced Biosecurity Protocols Underway on U.S. Dairy Farms

As information related to an illness affecting dairy cows in several states began to circulate over the past two weeks, USDA’s Animal and Plant Health Inspection Service (APHIS) worked with state veterinary authorities as well as federal partners including the FDA to swiftly identify and respond to detections and mitigate the virus’ impact on U.S. dairy production. Dairy farmers also have begun implementing enhanced biosecurity protocols on their farms, limiting the amount of traffic into and out of their properties and restricting visits to employees and essential personnel. Avian influenza is an animal health issue, not a human health concern. Importantly, mammals including cows do not spread avian influenza—it requires birds as the vector of transmission and it’s extremely rare for the virus to affect humans because most people will never have direct and prolonged contact with an infected bird, especially on a dairy farm. As a precaution, dairy farmers are taking important measures to protect their workers.

The National Dairy FARM Program (NDFP) offers several valuable biosecurity resources providing dairy farmers with tools to keep their cattle and dairy businesses safe, including:

Biosecurity practices guidance is available here.

Dairy farmers who observe clinical signs in their herd consistent with this outbreak, such as a significant loss of animal appetite and rumination or an acute drop in milk production, should immediately contact their veterinarian. Veterinarians who observe these clinical signs and have ruled out other diagnoses on a client’s farm should contact the state veterinarian and plan to submit a complete set of samples to be tested at a diagnostic laboratory.

What is Pasteurization?

Pasteurization is a process that kills harmful bacteria and pathogens, including viruses, by heating milk to a specific temperature for a set period of time. The processing of milk products involves pasteurization of the raw milk to a minimum of 161.5˚F for 15 seconds and then immediately cooling it. Ultra pasteurization is a process that heats milk at a higher temperature for specified times to extend a product’s shelf life.

What is Avian Influenza?

Detections of avian influenza in birds, including chickens, are common in the United States in the spring and fall due to wild birds spreading the virus as they migrate to and from their seasonal homes. While it is uncommon for Highly Pathogenic Avian Influenza to affect dairy cows, USDA APHIS has been tracking detections of HPAI in mammals for many years in the United States, leading dairy farmers and veterinarians in the United States to prepare for this eventuality. As a result, dairy farmers have taken immediate measures to enhance biosecurity measures in and around dairy farms to keep the food supply safe.

About the Illness in Cows

Dairy producers with affected cows are reporting a rapid onset illness in herds, specifically among older, lactating cows. Clinical signs include:

  • Decreased herd level milk production
  • Acute sudden drop in production
  • Decrease in feed consumption
  • Abnormal feces and some fever
  • Older cows may be more likely to be severely impacted than younger cows

According to dairy farmers and veterinarians reporting on affected herds, most affected cows recover within two to three weeks.

Information for Affected Producers

Producers who believe dairy cattle within their herd are showing the clinical signs described above should report these signs immediately to state veterinarians. Animals may also be reported to APHIS’ toll-free number at 1-866-536-7593.

Trade and Exports

The U.S. dairy industry will continue to work with the U.S. federal government, trading partners and the World Organization for Animal Health (WOAH) to encourage adherence to WOAH standards and minimize all unnecessary or unfair trade impacts. It is essential that trading partners do not impose bans or restrictions on the international trade of dairy commodities in response to these and future notifications and rely on the science-based food safety steps taken in U.S. dairy processing, namely pasteurization, in preserving market access.

Additional Information

  • To provide context on the overall size of the U.S. dairy herd, there are more 9.3 million dairy cows in the United States.
  • S. dairy export value was $8.11 billion in 2023, the second largest value on record.

NMPF Testifies on Common Names

Posted on by Theresa Sweeney

NMPF Executive Vice President for Policy Development & Strategy Jaime Castaneda testified on the need for greater action from the U.S. government to proactively negotiate common names protections with trading partners, during a Feb. 21 hearing hosted by the U.S. Trade Representative’s (USTR) office.

The hearing highlighted the agency’s annual Special 301 process, which seeks to identify intellectual property trade abuses around the world and set up USTR’s IP priorities for the following year.

NMPF and USDEC submitted joint comments in January that complemented a more comprehensive submission from the Consortium for Common Food Names. All three organizations emphasized the urgency of the issue and highlighted the damage done to American cheesemakers when they are not allowed to use the generic terms that consumers have known and loved for generations.

NMPF Letters Urge New Market Access

Posted on by Theresa Sweeney

NMPF helped coordinate a pair of letters in February urging policymakers to prioritize new market access, as U.S. agriculture continues to lag behind competitors in the global economy.

NMPF, USDEC and other agricultural organizations signed a Feb. 15 letter to Congress that detailed how the lack of new market access is threatening food and agriculture industry profitability. The letter called for Congress to work with and press the current and future Administrations to open more doors for U.S. agriculture exports.

Meanwhile, the newly launched Ag Trade Caucus, created by Farmers for Free Trade with support from NMPF, sent a Feb. 20 letter to U.S. Trade Representative Ambassador Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack, urging the administration to continue to pursue agreements that address the trade barriers that are most harmful to U.S. dairy.