NMPF Prompts U.S. Investigation into Global Nonfat Milk Solids

The U.S. International Trade Commission (ITC) announced an investigation on May 20 into global nonfat milk solids competitiveness for the United States and other major suppliers, including Canada, after extensive NMPF and U.S. Dairy Export Council advocacy for a probe.

The announcement followed an April 23 letter from the U.S. Trade Representative (USTR) requesting a formal Section 332 investigation into global suppliers’ pricing and trade practices for products with high levels of nonfat milk solids, including casein, caseinates, lactose, skim milk powder, and milk protein concentrates and isolates.

NMPF and USDEC have been closely monitoring a notable spike in certain nonfat milk solid exports from Canada following 2020 implementation of the U.S.-Mexico-Canada Agreement (USMCA). USMCA included rules on Canadian exports of skim milk powder, milk protein concentrates and infant formula that imposed higher penalty rates on exports that exceed a volume threshold. USMCA introduced these measures to curb Canada’s propensity to offload excess nonfat milk solids onto global markets at artificially low prices.

However, data shared by NMPF with USTR suggest Canada has sidestepped these obligations by shifting dairy protein production and exports to other product categories that evade the USMCA export disciplines. In meetings and written communications to both the current administration and the previous one, NMPF has urged USTR to address this behavior, which harms American dairy producers both domestically and abroad.

ITC’s 11-month investigation will evaluate Canadian and other global suppliers’ nonfat milk solids competitiveness to determine if any pricing or trade practices violate international trade rules. NMPF and USDEC will actively support the investigation and continue to insist on changes in Canada’s actions.

FARM ES Supports Farmers, Releases Version 3 Prep Guide

The National Dairy Farmers Assuring Responsible Management (FARM) Program released its FARM Environmental Stewardship Version 3 Prep Guide, helping to prepare farmers and evaluators for on-farm evaluations using the updated platform.

The Prep Guide outlines Version 3 data collection, tips for completing the evaluation and program expectations. FARM encourages farmers and evaluators to use this document when preparing for an evaluation.

Training on Version 3 topic areas are ongoing. The optional advanced manure-module training session held May 28 provided an in-depth overview of how manure management can influence ES Version 3 results.

Each of the optional, advanced training sessions is designed for evaluators who wish to better understand the data inputs, environmental footprint results, and how to run scenarios to support farmers who wish to explore continuous improvement opportunities.

MAHA Report Criticizes U.S. Food System, Cites Whole Milk’s Benefits

A White House commission’s report on food and public health released last week outlined numerous criticisms of the U.S. food system, alarming some segments of agriculture as dairy considered its implications.

The report from the Make America Healthy Again (MAHA) commission defended the importance of nutrient-dense “real” foods and specified whole milk for its benefits. “Whole milk and other dairy products are rich sources of calcium vitamin and bioactive fatty acids which support bone health help regulate inflammation and may reduce the risk of type 2 diabetes,” the report said.

The commission, chaired by Health and Human Services Secretary Robert F. Kennedy Jr.; Agriculture Secretary Brooke Rollins, released the report May 22.

As expected, the Kennedy-led report noted that American children are often unhealthy, which the commission attributed to ultra processed food, exposure to chemicals, lack of exercise, stress and overprescription of pharmaceuticals. The report criticized corporate influence of food marketing and said industry-funded nutrition research has led to “skewed outcomes” in dietary patterns and even the government’s recommendations in the Dietary Guidelines for Americans.

The report didn’t single out farm chemicals atrazine and glyphosate as major problems requiring a ban while raising doubts about them by calling for more research into the effects of cumulative exposure to chemicals such as pesticides.

The report said the MAHA Commission will immediately begin developing a strategy to improve child health outcomes, with the report due in August.

FMMO Changes in Effect as of June 1

June 1, World Milk Day and the start of National Dairy Month, also marked the end of a multi-year process NMPF initiated and led, with the official implementation of the Final Rule to update Federal Milk Marketing Order pricing formulas.

As of this month, the “higher-of” Class I price mover for most (non-ESL) milk has been restored; dairy product make allowances and Class I differentials nationwide are updated, and barrel cheese is no longer being used to determine the Class III price. A final part of the Rule, to increase the component composition factors for skim milk in all FMMO price classes, will be implemented Dec. 1 to avoid disrupting existing risk management positions.

NMPF successfully argued for these necessary updates in five specific proposals presented at a record-long FMMO hearing from late summer 2023 to early winter 2024. The arguments all flowed from the fundamental principle that FMMO product price formulas must evolve with the changing structure of the dairy industry to properly fulfil their role of accurately translating dairy product prices into milk values embodied in the orders’ classified prices.

USDA not only validated this principle in the Final Rule – it also established a blueprint that will make it much easier to keep the pricing formulas updated in the future, ensuring the FMMO pricing system will never again get as outdated as it has been prior to next week.

NMPF’s exhaustive efforts began in 2021 and included more than 200 meetings to formulate the proposal among NMPF leaders and experts, along with coalition building across agriculture.

A separate “15A” legal proceeding filed earlier this year against the FMMO system by several organic milk companies that are seeking to exempt organic milk from the system does not affect the implementation.

State Dairy Advocates Strategize at NMPF Summit

Representatives from nearly 20 state dairy organizations met for the 2025 Dairy Association Stakeholder Summit at NMPF’s offices in Arlington, VA. to discuss mutual issues of interest and devise ways to better coordinate with one another and with NMPF on May 7.

This annual summit NMPF organizes brings together leaders from state-level dairy advocacy groups to strategize for a better dairy community future. Issues discussed this year included farm bill policy, labor availability and immigration, trade challenges, nutrition policy, environmental regulations, and the dairy economic outlook.

Dairy farmers may have common goals and policy priorities, but each state has its own legislative and regulatory climate. The Stakeholder Summit allows state representatives to report on what their producers are experiencing, giving NMPF the tools and understanding to better advocate for policy solutions that work for all farmers.

At the same time, federal program implementation nationwide may vary widely by state. For example, the Dairy Margin Coverage (DMC) safety net rules are standardized nationwide, but each state has its own Farm Service Agency offices to run the program.

The Stakeholder Summit enables producers to give voice to these issues, positioning NMPF to work with agencies like the USDA to address any inconsistencies in implementing federal programs, DMC, or otherwise.

In addition to the summit, NMPF staff helped coordinate Capitol Hill visits for farmers who participated in the summit.

House-Passed Budget Reconciliation Package Advances NMPF Priorities

House Republicans took key steps in May that advanced dairy policy priorities including several key farm bill items, approving President Donald Trump’s budget plan using the reconciliation process.

The full House voted to pass the large fiscal package on May 22 by a vote of 215-214. Reconciliation allows Congress to enact tax and mandatory spending legislation via a simple majority in both the House and Senate, bypassing the filibuster process in the Senate that makes it more difficult for partisan legislation to pass.

The House Agriculture Committee’s portion of the bill, passed by the committee on May 14, included multiple NMPF-backed priorities that would boost the agricultural economy and provide farmers certainty.

Relevant provisions included:

  • Extending the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in five years of coverage;
  • Providing mandatory funding for USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance conversations;
  • Folding the remaining Inflation Reduction Act conservation dollars into the farm bill baseline, resulting in increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program;
  • Doubling funding for critical dairy trade promotion programs that return well over $20 in export revenue for every one dollar invested in the programs; and
  • Increasing funding for animal health programs that help to prevent, control, and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle.

The House Ways and Means Committee also adopted the tax portion of the bill on May 14. The tax package includes critical NMPF-backed language to make the Section 199A tax deduction permanent, which will allow dairy cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

“Whether it’s risk management or tax issues, the stakes are enormous for Congress to get the policy right in this legislation,” said NMPF President & CEO Gregg Doud. “House committees have done good work this week to start major elements of this bill on the right track for dairy farmers and the cooperatives they own.”

The budget reconciliation process now moves forward to the U.S. Senate, where NMPF will push to preserve the agricultural resources and tax policy gains included in the House bill. The Senate is likely to continue the process on the bill when Congress reconvenes in June.

Whole Milk Bill Poised for Senate Committee Vote

The Whole Milk for Healthy Kids Act is poised for more progress later today, with the Senate Agriculture Committee drafting its own version of the legislation, following the House of Representatives in moving forward critical legislation for dairy farmers.

The legislation sponsored in the Senate by Sens. Roger Marshall, R-KS, and Sen. Peter Welch, D-VT, has been a top NMPF priority for more than half a decade. It overwhelmingly passed the House of Representatives in 2023 but stalled in the Senate. Senate progress boosts the prospects for the legislation to become law, Welch said earlier this month in a Dairy Defined podcast.

“This is one of those things where, if we get it on the floor, and get the cooperation of leadership, we get the votes,” he said. “This is one of those areas of rare bipartisanship that we have right now.”

School meals rules in effect since 2012 only allow 1% and fat-free milk options, to reduce calorie intake and combat childhood obesity. But that deprives children of the benefits of the whole milk that’s more commonly served at home, which includes essential nutrients such as calcium, vitamin D, and potassium, all of which are crucial for the development of strong bones, teeth, and muscles.

Once the Senate approves the legislation as expected, both the House and Senate versions will be ready for floor votes in their respective chambers, after which lawmakers will reconcile the two versions for a final vote. NMPF has a call to action on its website, urging dairy advocates to speak up on the bill.

NMPF and USDEC Efforts Achieve Streamlined Process for U.S. Dairy Exports to Costa Rica

In a key win for U.S. dairy exporters’ ability to help meet Costa Rican dairy demand, the U.S. Department of Agriculture (USDA) and Costa Rica’s National Animal Health Service (SENASA) have agreed to put in place a streamlined procedure for registering U.S. dairy facilities to export to Costa Rica. The new process replaces a much more cumbersome dairy facility questionnaire and lengthy registration process which Costa Rica has long maintained. The announcement was detailed in a May 23 report published by USDA.

“We are proud of supporting the great work of the USDA Foreign Agriculture Service, USDA’s Agricultural Marketing Service, Food and Drug Administration and U.S. Trade Representative’s Office to painstakingly reach an understanding with Costa Rica to facilitate the export of high-quality U.S. dairy products,” said U.S. Dairy Export Council president and CEO Krysta Harden. “This important step recognizes the strength of the U.S. dairy regulatory system and deepens bilateral engagement under the CAFTA-DR at a key time for U.S.-Costa Rica trade relations.”

Dairy demand in Costa Rica is growing due to its strong economy and expanding middle class. With all dairy tariffs having reached zero this year under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), opportunities are ripe for U.S. dairy exporters to expand sales that complement Costa Rican dairy production.  The new streamlined process for U.S. dairy facilities to register to sell products to Costa Rica brightens those prospects further.

“Costa Rica is an excellent trading partner, due in major part to the successful U.S.-Central American Free Trade Agreement. This breakthrough between USDA and Costa Rica’s National Animal Health Service further cements that relationship and builds on the zero-tariff trading conditions for dairy exporters that began this year,” said Gregg Doud, president and CEO of the National Milk Producers Federation.

The USDA-SENASA announcement marks the successful outcome of years of effort by USDEC’s Market Access & Regulatory Affairs team and the USDEC/NMPF Trade Policy team, together with the U.S. government, to simplify Costa Rica’s facility registration process for U.S. dairy exporters. After extensive collaboration with USDA’s Foreign Agricultural Service and SENASA – including a 2024 SENASA visit to evaluate how U.S. authorities oversee dairy establishments and how U.S. facilities comply – SENASA completed its review in May 2025 and approved the first U.S. dairy facility under the new, simplified process.

U.S.–Mexico Dairy Summit Yields Renewed Commitment to Growth and Collaboration

The U.S. and Mexican dairy sectors renewed a partnership and unveiled a work plan today to enhance industry collaboration at their seventh annual summit convened this week in Madison, Wisconsin. The industry representatives reaffirming their shared commitment to strengthening bilateral collaboration and supporting the long-term success of the North American dairy industry.

Led by the U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) on the U.S. side, and by the Confederación Nacional de Organizaciones Ganaderas (CNOG), Asociación Mexicana de Productores de Leche (AMLAC), Cámara Nacional de Industriales de la Leche (CANILEC), and Consejo Nacional Agropecuario (CNA) from Mexico, the summit culminated in the signing of a renewed commitment and a shared work plan designed to foster mutual growth and resilience.

The joint plan identifies key areas for cooperation, including:

  • Promoting science-based trade policies that facilitate fair and transparent dairy trade across borders,
  • Enhancing animal health coordination, with a focus on proactive risk mitigation and information sharing,
  • Defending dairy’s reputation and promoting its nutritional benefits across both countries and in global markets,
  • Supporting sustainability and innovation efforts within the sector.

“Challenges like trade instability and animal health threats aren’t localized. They extend beyond borders, which is why working together is essential,” said Krysta Harden, president and CEO of USDEC. “Mexico continues to be a crucial ally for the U.S. dairy industry. These meetings not only reinforce our partnership but also help us prepare for a stronger, more resilient future.”

Recognizing the increasingly interconnected nature of the global dairy industry, the U.S. and Mexican representatives underscored the importance of continuing to work together to address shared challenges—from trade uncertainty and supply chain disruptions to animal health threats like H5N1 and New World screwworm and evolving consumer expectations.

“The U.S. and Mexico dairy sectors share a common goal: to expand market opportunities and protect consumer confidence in dairy,” said Gregg Doud, president and CEO of NMPF. “Today’s renewed agreement deepens our partnership as we address the shared challenges our industries face.”

U.S. Dairy Welcomes Framework to Expand Exports to UK

“The United States and the United Kingdom are long overdue to strike a deal on trade. This agreement on a solid framework for negotiations over the coming months is an important step in the right direction,” said Gregg Doud, president and CEO of the National Milk Producers Federation. “The UK is the world’s largest cheese importer from global markets. The United States has invested  $10 billion in U.S. dairy processing capacity in a four-year window. It’s vitally important that our exporters have a level playing field.”

The European Union has duty-free, quota-free access to the UK dairy market and benefits from geographical indications that prohibit fair competition in the UK market in common cheese categories. The UK in 2023 also implemented Free Trade Agreements with New Zealand and Australia which eliminate all UK dairy tariffs over the course of five years. The EU, New Zealand and Canada also all benefit from most of their dairy products being deemed by the UK to be “low risk” and thus can enter the UK market without the need for product certification.

“Yesterday’s announcement of a U.S.-UK agreement on a negotiating framework for trade must be a first step in the work that’s needed to open market opportunities for U.S. dairy products to the UK, which imported $5 billion from the world last year,” said Krysta Harden, president and CEO of the U.S. Dairy Export Council. “The UK already has open trade with the world’s largest dairy exporter—the EU—and it will have fully open trade with two of the other largest exporters—New Zealand and Australia—in just 3 years. Duty-free, quota-free, certificate-free trade is what U.S. dairy exporters need to have a level playing field in this key market.”

FDA Reaffirms Milk Safety, Supported by NMPF

NMPF reacted to consumer concern over late-April reports of FDA’s temporary suspension of its milk quality proficiency testing program by working with FDA to release an agency statement clarifying what the proficiency testing program is.

“The milk proficiency testing program is a periodic review of the testing capacities of laboratories in FDA’s network, and is not used to directly test milk or other dairy products,” an FDA spokesperson said, referring to its Grade “A” milk proficiency testing (PT) program in a statement shared with NMPF. “The temporary suspension to the Proficiency Testing program does not impact routine testing of milk destined for pasteurization, or milk and dairy testing in illness investigations. The FDA continues to have confidence in the safety of the commercial, pasteurized milk supply.”

The program is a minor step in the multi-faceted process of ensuring milk safety; however, amplification of its importance on social media created a potential threat to milk’s reputation, prompting both work with FDA as well as NMPF’s own statement reaffirming milk’s safety and the many quality and safety checks conducted on every batch of milk as it moves from farms to retail stores across the country.

“The U.S. milk supply is safe,” NMPF said in its own statement April 25. “All routine quality and safety checks on farms, during milk transport, and at processing plants are being conducted as they always have been, in coordination with both state and federal partners.

“NMPF has full confidence in the state, federal, and industry partnerships that work together to implement the Pasteurized Milk Ordinance, which has kept the U.S. milk supply safe for more than 100 years.”

This public reminder of the steps involved in ensuring safe, quality milk comes right on the heels of the 39th National Conference of Interstate Milk Shipments, a collaborative effort between industry, states and federal partners to update and implement the Pasteurized Milk Ordinance. NMPF is working on additional milk safety resources to share throughout the year.