Author: Theresa Sweeney

FARM Animal Care Kicks Off Version 5 Training

Posted on by Theresa Sweeney

In preparation for new standards that go into effect July 1, the National Dairy FARM Program hosted the 2024 FARM Animal Care Version 5 trainer course Denver, CO from Jan. 9-11.

Nineteen trainers reviewed Version 5 revisions, discussed evaluation best practices, and calibrated animal observation scoring on a nearby farm. The trainers will manage training sessions to FARM’s 400 Animal Care evaluators throughout 2024. The first of those sessions for evaluators are Feb. 13-15 in Minneapolis, MN. That meeting will have training content for both seasoned and first-time FARM Animal Care evaluators.

Visit the FARM Program website to learn more about the FARM Animal Care Program evaluator expectations. Check back throughout Q1, as FARM will continue to release more Version 5 specific materials including an evaluation prep guide and reference manual.

The FARM Program’s aim is to continue to proactively communicate updates and prepare cooperatives, processors, and farmers during the first half of 2024, before new FARM Animal Care Version 5 standards are implemented.

NMPF Submits Comments on Voluntary Added Sugars Reduction

Posted on by Theresa Sweeney

NMPF emphasized the need for a realistic and balanced approach to reducing added sugars in comments submitted to FDA Jan. 22. The comments, which supported the agency’s overall goal to improve healthful eating in the US, but urged for added sugars reductions to be voluntary, were a follow-up to an FDA listening session in which NMPF participated.

NMPF cited dairy’s successful work in voluntarily reducing added sugars in flavored school milk in its comments. “The dairy industry’s proactive, voluntary reduction of added sugars in school milk demonstrates the power of industry-led initiatives in this area,” it said in the comment. “Industry leaders came together around reducing added sugars, investing the time, energy, and resources to reformulate products into healthier options that people still enjoy.”

NMPF also pointed out that modest amounts of added sugars can make nutritious food more palatable, thus encouraging consumption and improving health. The American Academy of Pediatrics and the American Heart Association have both noted that using small amounts of added sugars has effectively increased vital nutrient intakes in a way that improves overall diet quality without increasing calories to unhealthy levels.

FDA Moves Toward Improved Feed Ingredient Reviews

Posted on by Theresa Sweeney

In an important step to modernize its review and approval of animal feed ingredients, the Food and Drug Administration said Feb. 2 it’s withdrawing long-standing policy that classifies animal feed ingredients as animal drugs if making claims on production, environment, or food safety-related benefits.

NMPF has long advocated for FDA to rescind this policy to help pave the way for faster review and approval of animal feed ingredients that can reduce enteric methane emissions. A streamlined approval process, specifically one that would allow feed additives to be reviewed as foods rather than as drugs, is important for dairy farmers seeking to maintain global competitiveness as trade rivals adopt such ingredients, which currently are not allowed in the United States because of lengthy regulatory hurdles.

FDA also made clear that it supports the legislative authority embodied in the NMPF-backed Innovative FEED Act (H.R. 6687, S. 1842), which directs the agency to review enteric-reducing and other products using its Food Additive Petition process. That shift would represent an improvement over the current approach of reviewing such additives as drugs.

NMPF is urging dairy allies to write members of the House of Representatives to become sponsors for the Innovative FEED Act, which is critical to speeding FDA approval of Elanco’s 3-NOP (Bovaer) and similar future products. This NMPF call-to-action contains a pre-drafted message seeking House member endorsement of the legislation.

NMPF Creates Task Force to Develop CWT Renewal Plan

Posted on by Theresa Sweeney

NMPF established in January a team of cooperative leaders and farmers to develop ideas for the next era of Cooperatives Working Together (CWT) after the current membership funding commitment expires at the end of this year.

This task force, chaired by NMPF Treasurer Pete Kappelman of Land O’Lakes, will focus on identifying and advancing strategies that will enable CWT to maximize its positive affect on farmers’ milk checks while growing U.S. dairy exports. Task force members will re-examine CWT’s role in dairy exports and define what’s needed to expand U.S. dairy sales growth overseas without duplicating existing export efforts.

Others on the task force include:

  • Catherine De Ronde, Agri-Mark
  • Tom Beringer and Scott Tomes, Bongards
  • Rob Vandenheuvel, CDI
  • Monty Schilter, Darigold
  • Michael Lichte and Chris Kraft, DFA
  • Darin Hanson, Foremost Farms
  • Mike John, Maryland and Virginia Milk Producers Cooperative Association
  • Chris Hoeger, Prairie Farms
  • Ashley Ellixson and Robert Chesler, United Dairymen of Arizona
  • Steve Patience, Tillamook

The task force will share preliminary recommendations with NMPF’s Board later this spring, assembling a series of actions for the program after 2024, with the expectation that individual cooperatives will vote to renew their support of CWT (or join the program if they are not currently contributing) by the end of this year.

December DMC Margin Reverses Trend, Drops to $8.44/cwt

Posted on by Theresa Sweeney

The December margin under the Dairy Margin Coverage (DMC) program bucked the trend that began in August of improving milk prices and margins, sliding $1.14/cwt to $8.44/cwt and matching the margin last seen in September. The renewed weakness was due almost entirely to a $1.10/cwt fall in the December all-milk price from November. The December DMC feed cost rose by 4 cents a hundredweight to $12.16/cwt of milk, with higher corn and premium alfalfa hay prices almost offset by a lower soybean meal price.

The average margin for all months of 2023 was $6.70/cwt, effectively tying last year with 2021 for the lowest average calendar-year margin under both the DMC and its predecessor, the Margin Protection Program (MPP). End-of-January futures-based forecasts indicated DMC margins averaging between $10.20/cwt and $11.00/cwt in 2024.

FMMO Hearing Ends with NMPF Unity Strong as Ever

Posted on by Theresa Sweeney

USDA’s longest-ever federal order hearing ended Jan. 30 with NMPF’s comprehensive approach to modernizing milk pricing at the center of industry discussion. With the FMMO update process now moving to its next phase, NMPF leadership remains critical as USDA moves to formulating its own proposal to put before producers.

“NMPF spent more than two years preparing for USDA’s Federal Order hearing, and that preparation paid off,” said NMPF President and CEO Gregg Doud in a statement after the end of testimony and rebuttals. “Our proposals, unanimously supported by our Board of Directors, reflect farmer unity and a good-faith effort to build industry consensus.

“After five months, 12,000 pages of testimony, and almost two dozen separate proposals considered, our plan remains the most comprehensive, coherent, and compelling framework for modernizing a system that’s badly in need of improvement. We look forward to working with USDA and the entire industry in the weeks and months to come, noting that any plan USDA designs will by necessity require complex analysis to result in a proposal that serves diverse farmer needs well.”

Organized discussions of the federal milk-pricing system, which showed strains under the weight of the COVID-19 pandemic and continues to struggle in the face of a changing industry, began with NMPF in 2021. The five-month USDA hearing in Carmel, IN, revolved around NMPF’s suite of proposals for change unanimously adopted by its Board of Directors last year.

The hearing has addressed critical issues for dairy farmers, including the “make allowance” re-imbursing processor costs, component pricing for milk, and the Class I price surface that considers travel expenses. Recent discussions have revolved around the so-called Class I mover, a change to which in 2019 has cost farmers roughly $1.2 billion. Doud called for change to the mover in his statement and in NMPF’s monthly CEO’s Corner column published today.

“We’ll continue to advocate for badly needed changes in areas such as the Class I mover,” he said. “It needs to change back to the previous “higher-of’ formula that served farmers best. The higher-of responds quickly to the marketplace, it helps farmer cash flow, it’s simple to understand, and it would have no real impact on processors who are using the formula to boost their immediate balance sheets, not manage future risk as they claim.”

NMPF and member cooperative staff are currently formulating NMPF’s elaboration and defense of its positions in the hearing to USDA, the first step toward USDA’s own proposal. That’s due in less than two months – and only underscores how much work is left to do in creating a fairer pricing system for farmers, Doud said.

“This final year is the most critical,” he said. “We are excited to continue our leadership, and will, as always, fight for the best approaches to ensure that dairy farms prosper.”

FMMO Modernization Needs to Move – And So Does the Class I Mover

Posted on by Theresa Sweeney

The long, patience-testing — and absolutely necessary – Federal Milk Marketing Order hearing is nearly over.

The longest-ever USDA federal order hearing ended last Tuesday, after roughly 12,000 pages of testimony and nearly two dozen separate proposals considered. Through it all, NMPF’s impressive unity never faltered – our plan remains the most comprehensive, coherent, and compelling plan for modernization of a system that’s showing its creaks after a generation.

Now, the next phase of the arduous process of amending federal orders begins, as USDA begins considering the hearing record and hearing participants have 60 days to elaborate and defend their positions. USDA, of course, will have the final say in crafting its own proposal, but we’re confident our plan will remain the basis of progress, and we look forward to adding information and reinforcing our own arguments in the weeks to come. It’s critical to keep in mind that any plan designed to have national support needs to address diverse interests. That’s why our comprehensive plan covers areas ranging from the Class I price surface and make allowances to component pricing formulas and forward contracting.

One area that’s so important that we’re seeking resolution in the quickest manner possible is the Class I mover, which sorely needs to go back to the “higher-of” formula that served farmers well before the current “average of” approach took effect in 2019.

Processor interests aggressively pushed for the change to the mover in the 2018 Farm Bill. At the time, the adjustment seemed reasonable for farmers too, based on data going back to 2000. However, the lessons of the COVID-19 pandemic, and the current prolonged spread between the Class III and Class IV prices, have shown how poorly the current mover works for farmers in today’s agricultural environment. Milk producer losses are growing, with the amount of money taken from their milk checks soon to surpass $1.2 billion by April – all because of a system that now limits risks for processors while putting potentially unlimited losses on farmer backs.

This is unacceptable, a reality the hearing only made more obvious. While processors continually talked about how important the current mover is for their risk management strategies, no one in months of testimony ever presented definitive proof that such risk management is occurring at any meaningful level. Meanwhile, the processors continue to rake in dollars that would have gone to farmers – and will keep raking it in, by the way, until the mover is changed, a potentially huge financial incentive to work against positive changes for dairy farmers.

Knowing that the current mover isn’t defensible, these groups have suggested a modification to the current approach that’s largely based on a proposal that NMPF developed in 2021 under dire straits, but processors rejected. Their plan would adjust the mover in a backward-looking fashion that would allow farmers to recoup losses years after the fact. That reduces losses over the long term, but it’s cold comfort to farmers whose operations are struggling to live month-to-month and don’t have two years to be made right again. Moreover, it’s now clear that the losses farmers suffered in 2020 were not a one-off fluke.

And thus, given the current difficult times on dairy farms, we’re now pushing hard for the return to the higher-of. It responds quickly to the marketplace, it helps farmer cash flow, it’s simple to understand, and it would have no real impact on processors who are using the formula to boost their immediate balance sheets, not manage future risk as they claim.

Dating to NMPF’s first internal discussion, our path toward FMMO modernization is now nearly three years old. This final year, which, should all required timelines be met, would result in a producer vote roughly one year from now, is the most critical. It’s when, after all the research and talking, USDA will propose a new approach – and farmers will decide. These decisions are likely to shape the future of dairy for the next generation. We are excited to continue our leadership in this critical area, and will, as always, fight for the best approaches to ensure that dairy farms prosper.

Gregg Doud

President & CEO, NMPF

 

NMPF Statement at FMMO Hearing Conclusion

Posted on by Theresa Sweeney

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

“NMPF spent more than two years preparing for USDA’s Federal Order hearing, and that preparation paid off. Our proposals, unanimously supported by our Board of Directors, reflect farmer unity and a good-faith effort to build industry consensus. After five months, 12,000 pages of testimony, and almost two dozen separate proposals considered, our plan remains the most comprehensive, coherent, and compelling framework for modernizing a system that’s badly in need of improvement.  We look forward to working with USDA and the entire industry in the weeks and months to come, noting that any plan USDA designs will by necessity require complex analysis to result in a proposal that serves diverse farmer needs well.

“In the meantime, we’ll continue to advocate for badly needed changes in areas such as the Class I mover. The current formula has cost farmers $1.2 billion in losses since its implementation after the 2018 farm bill, with additional losses expected in the coming months. It needs to change back to the previous “higher-of’ formula that served farmers best. The higher-of responds quickly to the marketplace, it helps farmer cash flow, it’s simple to understand, and it would have no real impact on processors who are using the formula to boost their immediate balance sheets, not manage future risk as they claim.

“Dating to NMPF’s first internal discussions, our path toward FMMO modernization is now nearly three years old. This final year is the most critical. We are excited to continue our leadership in this critical area, and will, as always, fight for the best approaches to ensure that dairy farms prosper.”

FACTS ABOUT NMPF’s FMMO PROPOSAL:

 

NMPF supports the federal legislation that authorizes the FMMO system, as well as improvements that increase clarity and producer understanding of milk pricing and ensure an orderly market and fair prices for dairy farmers.

NMPF’s proposed changes to the Federal Milk Marketing Order System 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.

For more information, visit here.

Whole Milk Ready for Breakthrough Year

Posted on by Theresa Sweeney

With consumer choice, scientific research and congressional legislation all going its way, 2024 promises to be a breakthrough year for whole milk, NMPF’s Head of Nutrition Policy Claudia Larson and Regulatory Affairs Director Miquela Hanselman said in a Dairy Defined Podcast released today.

The variety that shoppers prefer is poised to return to school lunch menus given the bipartisan approval of the Whole Milk for Healthy Kids Act in the House of Representatives, and it will figure prominently in consideration for updated federal Dietary Guidelines that are due next year.

“This is important to our students, this is important to our schools, this is important to our parents,” said Larson, a senior director of government relations at NMPF. “Reach out to your senators, let them know that this is important to you and your children in your community and ask them to please co-sponsor the bill.”

NMPF has a call to action urging lawmakers to support the Whole Milk for Healthy Kids Act here. The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

Milk’s Lead Rises as Plant-Based Beverages Sink

Posted on by Theresa Sweeney

The final numbers are in, and they confirm what we’ve anticipated all year. In 2023, consumers emphatically turned away from plant-based beverages at an accelerating rate that caused the category to lose market share to milk, where whole milk and lactose-free varieties are thriving and surpassing their competitors.

The numbers give even more reason to put a stake in all that overprocessed hype – and to push even harder for integrity in labeling beverages that are being abandoned by consumers tired of inferior alternatives to dairy.

With full year data now available from Circana Inc., which tracks grocery-store spending, plant-based beverage consumption in 2023 fell 6.6 percent to 337.7 million gallons. It’s the second straight year of declines and the lowest consumption since 2019.

Sales volumes for almond drinks, the biggest plant-based category, fell 10 percent, and the soy beverages that vegan activists weirdly want in school lunches declined 8 percent. Even the once-Next-Big-Thing, oats, only rose 1.4 percent last year.

Sorry, Oatly – the froth has left your latte, and all that’s left is the drain.

Meanwhile, fluid milk – the real kind – keeps chugging away. To be fair, like plant-based, its consumption also declined, and like plant-based, its sales volume number starts with a 3. However, that 3.137 is followed by the word billion – not million, which is where plant-based is stuck – and the drop was 2.7 percent, less than half the rate of decline for plant-based beverages. That means fluid milk last year lengthened its lead over plant-based. In 2022, fluid milk had 89.9 percent of the pie. In 2023, it rose to 90.3 percent.

Beyond the overall number, fluid milk had more good news. Sales of whole milk, the most popular variety (and the one we need back in schools), rose last year, and lactose-free milk – the one tailor-made for people with dairy sensitivities – jumped 6.7 percent to 239.2 million gallons. With that, lactose-free milk surpassed almonds; it’s now a bigger category on its own than any plant-based alternative.

(You’ll hear a lot about that in the next year. We’ll make certain of it.)

The idea that milk was losing market share because consumers were turning to plant-based alternatives was always off-base. Now, it’s just a lie. And the decline of plant-based beverage isn’t likely to be an aberration: Once the initial hype is gone, and the sustainability claims are debunked, and the nutrition fallacies are exposed, what, exactly, does over-processed sugar water have going for it?

Oh, right, their misleading labels.

For now.

NMPF Leads China Letter Urging Trade Tension De-escalation

Posted on by Theresa Sweeney

NMPF signed and helped lead outreach for signatories on a Dec. 12 letter to the U.S. House of Representatives’ Select Committee on the Chinese Communist Party that argued against escalating trade tensions with China.

In its report released shortly thereafter on fortifying the American economy to compete with China, the Committee refrained from calling for a complete repeal of China’s Permanent Normal Trade Relations (PNTR) status – a decision that would have serious repercussions for U.S. dairy farmers.

Since Congress first granted China PNTR status in 2000, Chinese demand for U.S. agricultural exports has rapidly grown. China now purchases 19% of America’s food and agriculture exports and is the third largest export destination for U.S. dairy products. The letter warns of the potential fallout from PNTR revocation, citing as an example Chinese retaliatory tariffs on U.S. agricultural products after the U.S. imposition of Section 232 and 301 tariffs on Chinese goods. Those retaliatory tariffs led to a significant reduction in U.S. dairy exports to China.

While the final select committee report stops short of calling for outright revocation of China’s PNTR status, the recommendations urge Congress to move China to a “new tariff column” to decrease reliance on Chinese imports and develop U.S. leverage to address trade issues.

NMPF strongly opposes increased tariffs on Chinese imports that could invite additional retaliatory measures against U.S. dairy and agricultural exports – a message that NMPF continues to highlight on Capitol Hill as the select committee’s recommendations are considered for further action.