Author: Theresa Sweeney

Doud, Economists Explore Dairy’s Future

Posted on by Theresa Sweeney

The future of U.S. dairy farming is bright as global growth and American capacity for innovation and production combine to create a powerhouse, NMPF incoming president and CEO Gregg Doud and the organization’s economists said in presentations at NMPF’s annual meeting.

“In terms of the world of protein, dairy is a huge part of the future,” said Gregg Doud, who will take over NMPF’s reins on Jan. 1. Doud, a former chief agricultural trade negotiator for the Office of the U.S. Trade Representative, said opportunities are there for U.S. dairy’s taking with robust outreach and appeals to consumers worldwide.

“My message to you today is very simple,” he said. “Let’s go. Let’s get it in gear.”

Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. In a panel of NMPF economists following Doud’s remarks, forecasts showed an improving price outlook next year, even as inflation continues to pose challenges for consumers.

“We see a road to recovery in 2024,” said Will Loux, head of the joint economics unit serving NMPF and the U.S. Dairy Export Council. “Things aren’t all roses, we still have really significant headwinds on the demand side both here at home and abroad, but we look at the world with a lot of optimism still, especially in the long run.”

Annual Meeting Spotlights Dairy Farmer Unity

Posted on by Theresa Sweeney

NMPF Chairman Randy Mooney commended U.S. dairy farmers for their persistence in supporting positive change for their industry at the organization’s annual meeting in Orlando held Nov. 13-15, noting that challenges are nothing new to producers and that their unity has brought progress toward better federal farm policy.

“We’re nourishing families around the world through milk’s unbeatable nutritional value,” said Mooney in remarks at the meeting held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. “I’ve dairied for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO.

Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. Meanwhile, the U.S. farm bill expired at the end of September before Congress passed an extension until next October, and dairy farmers are seeking a fairer milk pricing system through a USDA-led Federal Milk Marketing Order hearing.

Following Mooney onstage was NMPF President and CEO Jim Mulhern, who is retiring at the end of this year after leading the organization for a decade. Mulhern reflected on the challenges dairy farmers have met and how they will meet the challenges to come.

“I’ve tried to remain true to what I see as the hallmark of the dairy community: people who work hard, approach things with common sense, care passionately about the product they produce,” Mulhern said. “You all strive to do the right thing. And I can tell you, looking over the course of my career, those are qualities that can take you a very long way.”

Also at the meeting, NMPF’s Board of Directors approved the organization’s policy positions and elected new members. New directors elected to the Board of Directors and approved by NMPF delegates include Brad Bateman of Dairy Farmers of America and Rick Burkhamer of Foremost Farms. Burkhamer, who farms near Richland Center, WI, was also named to NMPF’s Executive Committee. Pete Kappelman of Land O’Lakes, a member of the Executive Committee, was elected Treasurer to replace retiring Board member Dave Scheevel of Foremost Farms. The members awarded Honorary Directors for Life recognition to Brian Hardy and Rick Smith of DFA, and Joe Wright of Southeast Milk.

The meeting drew roughly 750 attendees and also featured breakout sessions on industry topics as well as the Dairy Experience, an exhibit and snacks area featuring industry vendors and dairy products.

Thank You for All You Do.

Posted on by Theresa Sweeney

Throughout my career, whether I was working on Capitol Hill or consulting for Fortune 500 companies, I found myself returning, in various ways, to dairy. And it was always because of the people.

Those who produce our food literally make life possible for all of us. But there’s something special about this dairy community. I’ve long felt dairy’s uniqueness is in its daily harvest – the ability to see in real time the fruits of your labor reflected in the health of your animals and the quality and quantity of milk they produce.  It gives dairy a different character than other agricultural operations, producing people committed to nourishing our bodies with nutrient-rich milk and dairy products harvested through work that is hard and honest, and never lacking in integrity.

That’s what I will miss after more than four decades working in and near dairy. And that’s why the most important words I’ve been saying as I approach my final weeks at NMPF are “thank you” — to everyone from NMPF Chairman Randy Mooney and the many dairy-industry leaders who I’ve been fortunate to work with, to the farmers and staff who have supported and advanced our important work at NMPF.

And I also need to say, “I’m proud of this industry” for all the successes we’ve seen, and for how that success will help position everyone who cares about dairy for further gains to come – from the farmers and cooperatives I have represented to the entire industry.

I’ve had the opportunity to be part of nearly every major dairy policy debate since the early 1980s – from the establishment of the national dairy checkoff program in 1983, the very first dairy issue I worked on Capitol Hill, to the USDA Federal Milk Marketing Order modernization effort currently under way.

No achievements are ever static: The checkoff has become an incredibly vital instrument for our industry, and it continues to evolve, showing strong leadership in critical areas. Our Federal Order system is evolving as well – for the better, I predict, after our modernization proposal becomes the basis for a comprehensive USDA plan next year. The changes we are advocating, if approved, will strengthen the program’s ability to aid producers and improve orderly marketing of milk. And that change will happen because of the leadership, engagement, and hard work of all of NMPF’s dairy cooperative members.

Other examples of which we should all be proud – and confident in our future success – includes our sustainability journey. We recognized the climate issue as a looming challenge more than 15 years ago. We knew that our opponents would try to position dairy as part of the problem. But we vowed to be part of the solution. I was fortunate to be involved in those early efforts as the checkoff program engaged key stakeholders, conducted a carbon Life Cycle Assessment of fluid milk – the first-ever on a U.S. agricultural product – and helped develop the science to establish our industry’s baseline.

From there, we have identified numerous opportunities for dairy to reduce greenhouse gas emissions and contribute to climate improvements. NMPF has focused on programs and policies that provide voluntary incentives to assist farmers in these improvements and prevent onerous, costly regulations. We are seeing the fruits of these efforts, as federal programs are beginning to provide funding to enable on-farm technologies to mitigate emissions and help facilitate our U.S. dairy industry goal to be Net Zero by 2050. There is much yet to be done, but with the right policies and approaches I am fully confident we will achieve our goal even before then.

I am also proud of our work in the economic policy arena to help producers of all sizes deal with the volatility inherent in commodity milk prices. The Dairy Margin Coverage program provides protection without stimulating increased milk production, and we have helped develop better and more effective risk management tools for larger farms through the USDA-supported Dairy Revenue Protection and LGM-Dairy programs. Collectively, these efforts provide the most comprehensive federal risk management suite our industry has ever had.

There are so many other issues I could talk about where we’ve made great progress, and a few – like immigration reform to help address our ag labor problem – where success remains elusive.

Despite these challenges, I know that the future of this industry is very bright. And that’s because of what I may be most proud of – how our industry works together to advance common goals.

By proactively engaging with a host of stakeholders – policymakers, customers, proprietary processors, consumer and public health groups, other agricultural organizations and even potential critics – we endeavor to advance our collective interests. I’m proud of the countless times we have engaged critical debates from a position of unity and strength.

When I accepted the role of NMPF president and CEO, I told the organization’s Board that my goal was simple: to strengthen the dairy cooperative and dairy producer community and help build a brighter future. Any success I’ve had has been because of great people – on the farm, in our marketing and processing operations, and in the policy and promotion organizations.

We produce a great product with a demand that’s growing both domestically and internationally. We have the most efficient, productive, resilient and sustainable dairy industry in the world. And it’s because of what you have done. Our industry is stronger because of our work together – and, under the leadership of my successor, Gregg Doud, our work is poised for greater success, as U.S. dairy remains a critical part of the American diet, and increasingly, the world’s.

My career journey has exceeded the wildest dreams of what I thought might be accomplished when I started in it many years ago. I’m proud of what we have accomplished together and gratified by the opportunity I’ve had to work with so many great people.

Thank you again, and Godspeed.

Jim Mulhern

President & CEO, NMPF

 

NMPF’s Chairman Mooney Spotlights Dairy Leadership

Posted on by Theresa Sweeney

The dairy sector has benefited from strong leadership, as farmers work together to meet today’s challenges, National Milk Producers Federation Chairman Randy Mooney said in a Dairy Defined podcast.

A new farm bill, a national hearing on modernizing the Federal Milk Marketing Order system, and ongoing challenges in sustainability and risk management have challenged dairy farmers, Mooney said in the podcast, taken from his remarks at the organization’s annual meeting in Orlando on Tuesday. Farmers have responded with their trademark resilience, uniting to advance their industry, he said.

“This year we came together as an industry to unite around a number of issues that helped build that resiliency. Together we worked to make every drop count, every meeting, count every call, every email, every handshake,” he said.

The full podcast is here. You can also find the podcast on Apple Podcasts and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

Dairy’s Long-Term Outlook Bright, Doud, NMPF Economists Say

Posted on by Theresa Sweeney

The future of U.S. dairy farming is bright as global growth and American capacity for innovation and production combine to create a powerhouse, the National Milk Producers Federation’s (NMPF) incoming president and CEO and the organization’s economists highlighted in presentations at NMPF’s annual meeting in Orlando, FL.

“In terms of the world of protein, dairy is a huge part of the future,” said Gregg Doud, who will take over NMPF’s reins on Jan. 1, in remarks at the meeting, held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. Doud, a former chief agricultural trade negotiator for the Office of the U.S. Trade Representative, said opportunities are there for U.S. dairy’s taking with robust outreach and appeals to consumers worldwide.

“My message to you today is very simple,” he said. “Let’s go. Let’s get it in gear.”

Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. In a panel of NMPF economists following Doud’s remarks, forecasts showed an improving price outlook next year, even as inflation continues to pose challenges for consumers.

“We see a road to recovery in 2024,” said Will Loux, head of the joint economics unit serving NMPF and the U.S. Dairy Export Council. “Things aren’t all roses, we still have really significant headwinds on the demand side both here at home and abroad, but we look at the world with a lot of optimism still, especially in the long run.”

The joint annual meeting concludes today.

NMPF’s Mooney Highlights Dairy’s Persistent Strength at Annual Meeting

Posted on by Theresa Sweeney

National Milk Producers Federation (NMPF) Chairman Randy Mooney commended U.S. dairy farmers for their persistence in supporting positive change for their industry at the organization’s annual meeting in Orlando, noting that challenges are nothing new to producers and that their unity has brought progress in encouraging better federal farm policy.

“We’re nourishing families around the world through milk’s unbeatable nutritional value,” said Mooney in remarks at the meeting, which is held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. “I’ve dairied for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO.

Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. Meanwhile, the U.S. farm bill has expired, and dairy farmers are seeking a fairer milk pricing system through a USDA-led Federal Milk Marketing Order (FMMO) hearing, which began in August and will resume Nov. 27 after a temporary pause.

Following Mooney onstage was NMPF President and CEO Jim Mulhern, who is retiring at the end of this year after leading the organization for a decade. In his remarks, Mulhern reflected on the challenges dairy farmers have met and how they will meet the challenges to come.

“I’ve tried to remain true to what I see as the hallmark of the dairy community: people who work hard, approach things with common sense, care passionately about the product they produce,” Mulhern said. “You all strive to do the right thing. And I can tell you, looking over the course of my career, those are qualities that can take you a very long way.”

Also at the meeting, NMPF’s Board of Directors approved the organization’s policy positions and elected new members. New directors elected to the Board of Directors and approved by NMPF delegates include Brad Bateman of Dairy Farmers of America and Rick Burkhamer of Foremost Farms. Burkhamer, who farms near Richland Center, WI, was also named to NMPF’s Executive Committee.

Along with adopting official federal policy positions, NMPF’s membership also raised funds for the organization’s college research scholarships and held its annual cheese and dairy product contest in conjunction with the meeting.

The Chairman’s Award for the NMPF Cheese and Yogurt Contest went to Prairie Farms Dairy for its Cave Aged Rinded Swiss, produced in Faribault, MN. Ellsworth Cooperative Creamery won the Chairman’s Reserve Award for its Pepperoni with Marinara Rub produced in Menomonie, WI. This year’s contest included 252 entries from 14 participating NMPF co-ops, a total of 3,350 pounds (1.52 metric tons) of cheese and yogurt.

NMPF’s official portion of the meeting concludes tomorrow. Highlights include a dairy economics forecast by NMPF staff; awards in the organization’s annual dairy contest; and an address by incoming President and CEO Gregg Doud, who takes over from Mulhern Jan. 1.

October CWT-Assisted Dairy Export Sales Totaled 6.6 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 63 contracts in October, adding 5.4 million pounds of American-type cheeses, 844,000 pounds of cream cheese and 388,000 pounds of whole milk powder to CWT-assisted sales in 2023. In milk equivalent, this is equal to almost 59 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa, South America and Oceania, and will be shipped from October 2023 through April 2024.

CWT-assisted 2023 dairy product sales contracts year-to-date total 41.7 million pounds of American-type cheese, 908,000 pounds of butter, 26,000 pounds of anhydrous milkfat, 7.8 million pounds of cream cheese and 39 million pounds of whole milk powder. This brings the total milk equivalent for the year to 751.6 million pounds on a milkfat basis.

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 Submits Dietary Guidance Statement Comments Pushing for Clarity

Posted on by Theresa Sweeney

NMPF strongly objected to FDA’s discussion of plant-based milk and yogurt alternatives in the agency’s draft guidance ,“Questions and Answers About Dietary Guidance Statements in Food Labeling: Draft Guidance for Industry” published by the Food and Drug Administration (FDA) in comments submitted Sept. 25.

Dietary guidance statements can be used on food labels to provide consumers with information about foods or food groups that can contribute to a nutritious dietary pattern to help consumers make healthier choices. NMPF’s comments supported the use of consensus statements from authoritative bodies as the basis for dietary guidance statements but requested clarification on food group equivalents. NMPF also questioned FDA’s approach to plant-based milk and yogurt alternatives, saying it will encourage false and misleading advertising — which FDA has already acknowledged as an issue in their draft guidance for the labeling of plant-based milk alternatives.

“Despite the agency’s instructions to use consensus statements from authoritative bodies in developing guidance statements, FDA appears to violate its own principle by describing a means by which plant-based alternatives other than fortified soy could make dietary guidance statements based on consensus statements about the dairy group,” NMPF wrote in its comments.

NMPF’s comments on the proposed guidance for dietary statements is one small part of the organization’s broader campaign against the mainstreaming of plant-based beverages as legitimate dairy alternatives, an issue FDA itself has acknowledged is a public health threat. Other efforts include our campaign for a stricter version of FDA’s draft guidance on plant-based beverage labeling, multiple letters to the agency, and a Freedom of Information Act request on agency communications regarding plant-based beverages.

ABI Approves of USDA’s Proposed Butter Testing Changes at Fall Meeting

Posted on by Theresa Sweeney

The American Butter Institute’s (ABI) Board of Directors reviewed and approved a USDA proposal to allow for greater industry participation in butter testing at its fall conference in Phoenix, Oct. 5-6.

ABI, an industry group managed by NMPF, worked with NMPF regulatory staff to respond to an August proposal from USDA’s Agricultural Marketing Service (AMS) that would allow butterfat tests to be performed at an in-house or approved third party laboratory, and add a requirement for plants to maintain and make such records available for examination by a USDA inspector. ABI’s response supported the amendment as a means of increasing butter processing efficiency that conforms to current industry practice. ABI’s members also sought further clarification from USDA about which tests will be reviewed, suggesting that only finished product tests should be considered.

ABI’s letter to USDA, signed by NMPF Chief Counsel Clay Detlefsen, who also works for ABI under the management arrangement, also proposed that butter manufacturers take the lead in performing grading services in their own facilities, following the procedures set forth by USDA. Under this new approach — also discussed at the fall conference by ABI’s board — USDA could then audit those records to ensure manufacturer compliance with USDA grading procedures and allow the finished goods to use the USDA grade shield.

ABI will continue to speak with USDA about how to shift more grading practices to member companies’ facilities.

Doud, Kappelman Speak; FARM Reaches Out; and YCs Promote Diverse Farmers at World Dairy Expo

Posted on by Theresa Sweeney

NMPF’s incoming CEO and a member of its executive committee shared their insights on agricultural policy, while the FARM Program connected with producers and the National Young Cooperators (YC) Program promoted young and diverse dairy farmer voices at the World Dairy Expo.

Current NMPF Chief Operating Officer Gregg Doud and Pete Kappelman of Land O’Lakes discussed the prospects for farm bill passage and the ins and outs of federal risk management programs on a panel at Expo on Oct. 5. Meanwhile, the National Dairy FARM Program connected with farmers and industry leaders through its booth at the trade show all week and hosted an informational session the same day.

The FARM Program’s presence at World Dairy Expo each year offers an opportunity for FARM Program staff to share program updates face-to-face, and to receive feedback from producers and FARM Program evaluators. This year, FARM staff shared important updates about the upcoming Animal Care Version 5 launch next July, upcoming changes to Environmental Stewardship in Version 3, details about the recent FARM Biosecurity — Enhanced Program, the impact of the Workforce Development Program, and participation data across all program areas.

The YC Program hosted a panel discussion facilitated by Uplevel Dairy Podcast’s Peggy Coffeen, “The Eight Questions that Will Move Your Dairy Farm Forward,” on Oct. 5 at the World Dairy Expo in Madison, WI. Three young dairy farmer leaders participated in the panel including Wisconsin dairy farmers Paul Lippert, a Foremost Farms member owner, Laura Raatz, a Land O’Lakes, Inc. member owner, and Nathan Wiese, a member owner of Farm First Dairy Cooperative.

Panelists discussed how they are positioning themselves for long-term success by answering eight key questions related to culture, sustainability and profitability. More than three dozen YCs from seven member cooperatives participated in the session and reception later that day.

The National YC Program co-hosted a Tanbark Talk the next day with the Dairy Girl Network exploring the leadership challenges women encounter as they navigate careers in the dairy industry and prepare for future success. The conversation was facilitated by the Dairy Girl Network’s Laura Daniels and panelists included Lorilee Schultz, a Prairie Farms member owner and chairperson of the National YC Program, Julie Mauer, a Land O’Lakes Inc. member owner, Dairy Farmers of America’s Mary Knigge and Rita Vander Kooi, an Associated Milk Producers Inc. member owner.

NMPF, USDEC Outline Trade Barriers for USTR to Address

Posted on by Theresa Sweeney

NMPF and USDEC urged the U.S. Trade Representative to take action to resolve pressing trade barriers including tariff discrepancies and disputes with Canada and other countries in Oct. 23 comments submitted for the agency’s annual National Trade Estimate Report.

The report is designed to catalogue key barriers impacting U.S. exports and prioritize USTR efforts to address them. NMPF emphasized the importance of exports to the health of the U.S. dairy industry and reiterated its concern that the administration has chosen to put less energy into pursuing free trade agreements that open new markets for U.S. dairy products.

 

NMPF listed the specific major trade barriers confronting the U.S. dairy industry on a country-by-country basis in key markets, including:

  • Tariff discrepancies faced by U.S. dairy exporters vs. competitors that have trade agreements with key markets.
  • Indonesia’s protracted process for registering U.S. dairy plants. NMPF urged USTR and USDA to establish a streamlined and more predictable facility registration process.
  • Canada’s Tariff-Rate Quote allocation system, which represents an ongoing U.S.-Mexico-Canada Agreement (USMCA) violation. NMPF has worked closely with USTR on the second dispute settlement panel and remains focused on ensuring that Canada’s TRQ administration procedures are fully USMCA compliant.
  • Egypt’s refusal to allow widely used halal certifying bodies to provide the required halal certification for all dairy imports. This opaque procedure is not WTO-compliant and should be replaced with Halal certification procedures that permit multiple certification bodies used by U.S. exporters, just as other markets already permit.