Author: Theresa Sweeney

U.S. Dairy Industry Welcomes IPEF Launch and Taiwan Trade Proposal

Posted on by Theresa Sweeney

NMPF trade staff spent much of June encouraging the Biden Administration’s new Indo-Pacific Economic Framework (IPEF) to move forward while pushing it to go even further toward ensuring more-open markets for U.S. dairy producers.

IPEF encapsulates a regional trade agenda focused on advancing supply chain resilience, sustainability, economic growth, and competitiveness. Depending on its outcomes, IPEF’s effects on U.S. dairy exporters could range from tiny to quite notable. The collection of interested countries includes seven of the United States’ top ten dairy export markets, but the framework announced May 23 does not address tariff reductions

NMPF and USDEC have broadcasted these concerns to the administration during a Farmers for Free Trade virtual townhall, comments, and direct communications to trade negotiators. The organizations also have been leading drivers behind bipartisan Congressional engagement on the issue, supporting the work of scores of Members as they press the administration to prioritize agriculture in IPEF negotiations and outline examples of both tariff and nontariff opportunities.

An agreement that does not directly tackle tariffs might still deliver meaningful benefits for dairy, and NMPF and USDEC continue to advocate for inclusion of specific nontariff items that could help improve trade flows. These include protecting the use of common cheese names and cutting red tape by streamlining import requirements. Also, NMPF and USDEC note that tariff reductions could be possible under IPEF should the U.S. Trade Representative secure unilateral foreign tariff reductions that benefit all World Trade Organization (WTO) members, including the United States. Such a reduction would provide U.S. exporters with greater parity with competitors that have already secured comprehensive tariff agreements throughout the region.

The U.S.-Taiwan Initiative on 21st-Century Trade announced June 1 faces similar hurdles. Taiwan was the 12th largest market for U.S. dairy exports last year, buying $140 million of U.S. dairy products, primarily higher-value exports such as fluid milk and cheese.

While NMPF welcomes all initiatives aimed at increasing trade, the Taiwan proposal does not contain plans to reduce tariffs. NMPF believes stronger economic ties must include additional trade opportunities for the dairy sector and will continue to press for these policies at every opportunity.

NMPF Board Member Urges Congressional Focus on Agricultural Trade

Posted on by Theresa Sweeney

Sheryl Meshke, co-president and CEO of Associated Milk Producers Inc. and a member of NMPF’s board of directors, told a Senate subcommittee on June 9 that the U.S. government must pursue additional market access opportunities and address export supply-chain delays in order for the U.S. dairy industry to keep up with its global competitors.

“In pursuing exports, the U.S. dairy industry faces experienced and well-established competitors who have been exceptionally active with free trade agreements,” Meshke told the Senate Agriculture Committee’s Subcommittee on Commodities, Risk Management, and Trade. “The U.S. needs to get back in the game and craft an approach to pursuing comprehensive trade agreements.”

Meshke also emphasized the importance of enforcing existing trade agreements, particularly U.S. dairy export access to the Canadian market under the U.S.-Mexico-Canada Agreement.

American dairy risks losing its competitiveness, as the global playing field slowly tilts against the United States due to competitors’ trade agreements with key dairy importing markets, Meshke noted in her testimony. She also said U.S. trade negotiators need to target priority markets for expanded access, including Southeast Asia, Japan, China, the Middle East and the United Kingdom.

Meshke also emphasized the importance of combating non-tariff trade barriers, particularly the European Union’s (EU) aggressive efforts to confiscate food and beverage names in global markets by abusing geographical indications systems. She urged a strong defense of common food names: “We can’t wait any longer for the U.S. government to proactively defend the use of common food and beverage names against aggressive global efforts by the EU to restrict the use of generic terms we rely on.”

“As Sheryl outlined so well, we are now seeing dairy consumption grow at exceptional rates in many markets around the world,” said Jim Mulhern, president and CEO of NMPF. “The U.S. dairy industry is well-positioned to meet the expanding global demand for sustainably produced dairy products. But to seize those opportunities, we must take a leadership role along with like-minded countries – advancing policies and crafting trade agreements that can deliver real benefits for dairy farmers.”

May Sets Third Consecutive Monthly Milk-Price Record

Posted on by Theresa Sweeney

The USDA-reported national average all-milk price for May was $27.30/cwt, topping the April price by $0.20/cwt for a new monthly record, the third consecutive month of all-time-high prices.

The May DMC feed cost eased back by two cents from April’s record to $14.79/cwt, boosting the May DMC margin by $0.22/cwt to $12.51/cwt, the highest monthly margin since the DMC program began in January 2019.

The milk price outlook for the remainder of 2022 has been weakening slightly in recent weeks, as high dairy product wholesale prices have caused a spike in retail dairy price inflation, generating concerns about whether consumers may respond by buying fewer dairy products. All current projections of the DMC margin continue to anticipate that it will remain above the $9.50/cwt maximum coverage level under the program for the remainder of 2022.

Milk Pricing Proposals Reviewed by NMPF Board at June Meeting

Posted on by Theresa Sweeney

NMPF’s Board of Directors took additional steps toward modernizing the federal milk pricing system at their meeting June 7-8 in Arlington, VA.

The board reviewed and provided feedback on a series of recommended improvements generated by a member task force of Federal Milk Marketing Order experts.

The task force formed four committees earlier this year to assess specific areas in need of modernization, including Milk Composition; Dairy Products and Product Specifications; Make Allowances; and Class I Pricing. The task force unanimously recommended 10 proposals to the Economic Policy Committee in those four areas, which now are being shared more broadly with NMPF membership and other stakeholders for further discussion and refinement. The goal to create a single package of recommendations for final approval by the full Board of Directors later this year.

The Board also welcomed two new directors: Joe Coote from Darigold/Northwest Dairy Association and Dan Rosen from Ellsworth Cooperative Creamery.

NMPF Secures OSRA Passage, Looks to Next Steps

Posted on by Theresa Sweeney

President and CEO Jim Mulhern participated in a White House ceremony on June 16 to celebrate President Biden’s signing of the Ocean Shipping Reform Act (OSRA).

The new law comes after more than a year’s worth of intense effort and has been among NMPF’s highest priorities, bolstered through its partnership with the U.S. Dairy Export Council (USDEC) and a joint member export supply chain working group. The organizations helped to build an influential coalition of agricultural and transportation allies, crafting a bipartisan group of congressional supporters and educating the administration about dairy’s export supply chain crisis.

OSRA directs the Federal Maritime Commission to craft regulations that prohibit ocean carriers from “unreasonably” declining shipping opportunities for U.S. exports and requires certification of detention and demurrage fees that have been incurred outside of U.S. exporters’ control. The commission must also craft regulations that bar retaliation against U.S. shippers. To learn more about additional OSRA protections and the FMC’s pivotal role, see NMPF’s Member Alert here.

OSRA’s passage shifts NMPF’s and USDEC’s focus to the next, equally critical step of ensuring the legislation is swiftly implemented and that the maritime commission develops strong rules to crack down on carrier misbehavior. NMPF and USDEC will be heavily engaged in rulemaking processes and will continue to push for robust congressional oversight of the implementation phase.

NMPF and USDEC is also continuing work with allied groups to address delays, congestion, equipment and labor shortages, major gaps in data, high costs and other issues hampering U.S. exports. As part of those ongoing efforts, NMPF’s Executive Vice President for Policy Development and Strategy Jaime Castaneda participated in the Agriculture Transportation Coalition’s 34th Annual Meeting in June, taking part in the members-only strategy session on agricultural export priorities to identify additional steps in resolving the ongoing crisis.

NMPF Co-op Member Champions DMC, Calls for FMMO Update at Dairy Hearing

Posted on by Theresa Sweeney

Seventh-generation Pennsylvania dairy farmer Lolly Lesher emphasized the importance of farm bill safety net programs and called for milk pricing improvements at a House Agriculture Committee hearing held on June 22 to review the dairy provisions of the farm bill.

The Farm Bill, a twice-a-decade reauthorization of USDA programs, includes provisions important to dairy farmers such as risk management, pricing policy and support, conservation, trade promotion, nutrition, and rural development programs.

“The Dairy Margin Coverage (DMC) program is a significant improvement over its predecessor and has been a strong safety net for dairy farmers during difficult times. It offers producers affordable coverage for margin levels that reflect the milk price and feed cost challenges they face,” Lesher said in her testimony.

Lesher, a member-owner of Dairy Farmers of America, testified on NMPF’s behalf. She thanked Ranking Member G.T. Thompson (R-PA) for his years of advocacy on behalf of dairy farmers in Pennsylvania and beyond, and for his key role in overhauling the dairy safety net during the last farm bill. She also expressed her gratitude to Chairman David Scott (D-GA) for his work and for convening the hearing.

Created to replace the previous Margin Protection Program at NMPF’s urging in the 2018 Farm Bill, USDA’s Dairy Margin Coverage program offers effective margin protection for small and mid-sized farms and affordable catastrophic coverage for large farms. Lesher, whose family milks 240 cows in southeastern Pennsylvania, said in her written testimony that the program “has provided important security to [her] family’s farm” and noted that her family has purchased the maximum available coverage every year.

She also urged the committee to make additional updates to reflect current production. Congress enacted Supplemental Dairy Margin coverage payments to account for modest production increases since 2014, and Lesher urged the committee to build on this progress in the next farm bill.

Lesher highlighted the need for improvements to the Federal Milk Marketing Order (FMMO) system, citing the heavy revenue losses incurred by dairy farmers nationwide from a milk pricing change made in the previous farm bill as an example of the need for change.

“The change made to the Class I mover combined with the government’s heavy cheese purchases cost dairy farmers over $750 million in revenue in the last six months of 2020 alone,” she said. Lesher detailed the asymmetric risk that farmers bear under the current mover, with limited upside risk and a potentially limitless downside.

Meanwhile, NMPF is leading a nationwide effort to craft consensus on a wide range of FMMO improvements, including the Class I mover, that can be taken to USDA for consideration in a federal order hearing. “We recognize that for our efforts to succeed, we must all work together, giving a bit to get a bit. It’s just too important for our future,” Lesher added.

“We appreciate the opportunity to share what has worked well—and what needs to be modernized—to meet the needs of dairy farmers in the 2023 Farm Bill,” said Jim Mulhern, president and CEO of NMPF.  “As Lolly Lesher outlined during today’s hearing, dairy producers need continued access to an effective safety net, flexible risk management tools that protect all farmers, and an update to the FMMO system that addresses the unequal risk dairy farmers bear compared to processors during unusual market volatility. We look forward to our continued work with the House Agriculture Committee and USDA on these and other farm bill priorities in the coming months.”

Trade Success Shows How Patience, Persistence Pays

Posted on by Theresa Sweeney

An invitation to the White House to represent dairy farmers and their cooperatives at the signing of important legislation that helps the dairy community is an honor. The chance to attend, along with U.S. Dairy Export Council CEO Krysta Harden and other ag leaders, the signing of the Ocean Shipping Reform Act last month was an opportunity to highlight dairy’s hard work to alleviate the shipping crisis that has impeded exports for the past year.

But to be honest, a greater honor comes from working with the NMPF and USDEC team that over the past year has led efforts in dairy and across agriculture to enact the legislation. And that effort’s success is only one more accomplishment in one of the biggest long-term successes of dairy and dairy policy over the past generation – the emergence of the United States as a critical player in international markets. This huge export growth boosts milk prices, alleviates pressure on an industry whose productivity outpaces domestic population growth, and feeds the world with the nutritious products Americans have long enjoyed.

The Ocean Shipping Reform Act sets in motion a series of new rules and regulations governing ocean freight shippers that the Federal Maritime Commission must implement over the next year. These rules should help dairy-product exporters get more of their goods onto ships that recently have been heading to Asia empty, trying to meet import demands rather than fill their hulls with the goods that create U.S. jobs.

Agriculture, a rare American industry that ships out more than it brings in, has suffered from practices that have created unnecessary, costly delays to serving overseas consumers. While this legislation alone won’t smooth out all the issues with supply chains that are struggling with even deeper structural issues, it will help dairy build upon the global competitiveness that made 2021 a record year for U.S. dairy exports.

That’s gratifying. It’s also in keeping with the longer-term story of how patient, relentless efforts in dairy-trade policy have helped build an emerging export powerhouse.

Day-to-day, few areas of the many in which NMPF serves the interests of its members can be as bedeviling as trade. U.S. dairy farmers gain a key win against Canada – and Canada responds by dragging its feet even further. A judge stands up for the integrity of common cheese names – and the European Union persists in its shenanigans. These are the sorts of setbacks and stonewalls that can obscure progress.

But the progress is real. In 1995, 4.4 percent of U.S. milk solids were exported to foreign destinations. Last year, it was 17.3 percent – nearly one out of every six gallons of milk. U.S. dairy trade set records in volume and value in 2021, international market share is increasing, and American milk producers stand to benefit more than farmers anywhere else from the world’s growing appetite for dairy as competitors craft policies that hinder their own dairy industries – a path we simply won’t let happen here.

That growth has been crucial as gains in U.S. dairy production have outstripped domestic population growth. It’s safe to say that, without the emergence of international markets, milk prices would be dramatically lower, and much of the current size and regional diversity of U.S. dairy farms would be lost due to intolerable economic conditions.

U.S. dairy exports have risen broadly in part because we sweat the details – the attentiveness NMPF and USDEC showed in pushing for the Ocean Shipping Reform Act is characteristic of its approach for years. Decades of diligent work on trade has built a brighter present for dairy, even though that work requires patience and persistence that at times would seem to go beyond reason.

The progress we’ve seen on trade has happened because of the painstaking work of beneficial free-trade agreements; of tariff reductions that improved access; of robust legal efforts that have successfully defended U.S. dairy in international law; and because of the re-orientation of the industry toward greater exports that were made possible because trade policy created a more hospitable environment in which to invest.

Foresight by earlier NMPF and dairy check-off program leaders – and a lot of hard work — built the U.S. Dairy Export Council, acting worldwide to promote U.S. products. The same can be said for the industry’s sustainability initiatives, which help U.S. dairy farmers be the most sustainable, and thus most competitive, milk producers in the world.

And just as past efforts have paid huge dividends, present and future ones will as well, from seeking continued opportunities through initiatives like the new Indo-Pacific Economic Framework to telling the world the compelling story of U.S. dairy through hosting the International Dairy Federation’s annual summit in Chicago in 2023. It’s the first visit of that global conference to the United States in three decades, and it’s being brought here through the efforts of Dairy Management Inc., USDEC and NMPF, after the previous host – China – backed out.

Dairy’s representation at the White House at the signing of policy that will advance this industry shows how much we matter in policy arenas. But it’s also only one part of a much larger, much more important effort. Through resilience, progress and determination to build a better future for U.S. dairy, we’ve come a long way. And whatever the specific successes – or momentary frustrations – may be, dairy’s advance will continue.

NMPF, Allied Groups Tell White House: Prioritize Food Access at Hunger Conference

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) led eleven national agricultural, anti-hunger, nutrition and medical groups today in a virtual listening session urging the White House to place a high priority on access to affordable, diverse and nutritious foods when it holds its Conference on Hunger, Nutrition, and Health this September.

The NMPF-organized session offered the White House both expertise and lived experience from a wide range of organizations on how important increased access to food and a diverse range of food choices are to fight nutrition insecurity and improve nutrition-related health.

“When the White House announced its Conference on Hunger, Nutrition, and Health, we at NMPF were excited by the potential for this conference to help propel meaningful advancement toward achieving the conference’s stated goals of ending hunger, increasing healthy eating and physical activity, and decreasing the prevalence of diet-related diseases in America,” said NMPF President and CEO Jim Mulhern in remarks at the session. “We, and our collaborators on this listening session, share these goals and know from personal experience and decades of working on this issue that increasing access to food is critical to attaining them.”

The participating organizations said of the session and the White House conference:

“Eggs are one of the most affordable sources of high-quality protein available and can play an important role in fighting food insecurity and malnutrition in America and the world,” said Dr. Mickey Rubin of American Egg Board’s Egg Nutrition Center. “America’s egg farmers are committed to ensuring that nutritious, affordable eggs remain accessible to all Americans.”

“IDFA members are deeply committed to ending hunger by making it easier for everyone — urban, suburban, rural, and Tribal communities — to access and afford healthy, nutritious milk and dairy foods,” said Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association. “SNAP and WIC are central to this conversation. We know from USDA’s Foods Typically Purchased Report that dairy products make up at least 20 percent of the grocery bill for SNAP participants. With creation of the Healthy Fluid Milk Incentive Projects (HFMIP) passed in the 2018 Farm Bill, policymakers took SNAP incentives a step further and sought to address the dairy consumption gap highlighted in the 2020-2025 DGAs. Yet, HFMIP is not working at the scale necessary to address malnutrition and chronic health diseases. Therefore, we encourage leaders gathering at the White House conference to focus on building a healthy dairy foods incentive program at national scale in partnership with food retailers, local nutrition and health organizations, state SNAP agencies, and dairy foods makers.”

“All Americans deserve the opportunity to live the healthiest life possible, and foundational to that is having access to affordable, culturally diverse nutrient-rich foods” said Katie Brown, EdD, RDN, senior vice president of scientific and nutrition affairs at National Dairy Council. “Dairy foods like milk, cheese and yogurt can be part of the solution to ensuring nutrition security and improving public health.”

“School meal programs are America’s most effective tool to expand children’s access to healthy foods to support their growth, development and academic success,” said School Nutrition Association Public Policy and Legislation Committee Chair Jessica Gould, RD, SNS. “During the pandemic, we witnessed the adaptability of these programs as school nutrition professionals nationwide pivoted to provide grab-and-go meals for curbside pick-up and expand services for families in need. With research showing school meals are the healthiest meals children are eating, these programs should be a cornerstone in efforts to improve food access for America’s families.”

“Egg farmers have been donating their time and resources for years to combat hunger. We commend the White House for organizing the upcoming nutrition conference, and Congress for funding it. We must work together to end hunger in America,” said Chad Gregory, President and CEO of United Egg Producers.

Also sharing stories and potential solutions at the listening session were American Academy of Pediatrics, American Society for Nutrition, Feeding America, Food Research and Action Center, and International Fresh Produce Association.

Today’s event is part of the broader effort to provide input to the White House as it crafts its strategy to end hunger and increase healthy eating and physical activity by 2030, which the White House has said it plans to release at the September conference.

Dairy Farmer Reinforces Value of Safety Net, Calls for FMMO Update During Farm Bill Hearing

Posted on by Theresa Sweeney

Seventh-generation Pennsylvania dairy farmer Lolly Lesher emphasized the importance of the farm bill safety net program and called for milk pricing improvements today during a House Agriculture Committee hearing. Lesher, a member-owner of Dairy Farmers of America, testified on behalf of the cooperative and the National Milk Producers Federation (NMPF) during a congressional review of dairy provisions in the Farm Bill.

The Farm Bill, a twice-a-decade reauthorization of USDA programs, encompasses a variety of provisions important to dairy farmers including risk management, pricing policy and support, conservation, trade promotion, nutrition and rural development programs.

Lesher thanked Ranking Member G.T. Thompson (R-PA) for his years of advocacy on behalf of dairy farmers in Pennsylvania and beyond, and for his key role in overhauling the dairy safety net during the last farm bill. She also expressed her gratitude to Chairman David Scott (D-GA) for his work and for convening today’s hearing.

Revised at the urging of NMPF in the 2018 Farm Bill, USDA’s Dairy Margin Coverage program offers effective margin protection for small and mid-sized farms and affordable catastrophic coverage for large farms. Lesher, whose family milks 240 cows in southeastern Pennsylvania, said in her written testimony that the program “has provided important security to [her] family’s farm.” She urged the committee to make additional updates to reflect current production, so the program remains a viable safety net.

Lesher also highlighted the need for improvements to the Federal Milk Marketing Order (FMMO) system, as evidenced by the heavy revenue losses incurred by dairy farmers nationwide from a milk pricing change made in the previous farm bill.  “The change made to the Class I mover combined with the government’s heavy cheese purchases cost dairy farmers over $750 million in revenue in the last six months of 2020 alone,” she said.

The dairy industry, under NMPF’s leadership, is seeking consensus on a range of FMMO improvements, including the Class I mover, that can be taken to USDA for consideration in a federal order hearing. “We recognize that for our efforts to succeed, we must all work together, giving a bit to get a bit. It’s just too important for our future,” Lesher added.

“We appreciate the opportunity to share what has worked well—and what needs to be modernized—to meet the needs of dairy farmers in the 2023 Farm Bill,” said Jim Mulhern, president and CEO of NMPF.  “As outlined by Lolly Lesher during today’s hearing, dairy producers need continued access to an effective safety net, flexible risk management tools that protect all farmers, and an update to the FMMO system that addresses the unequal risk dairy farmers bear compared to processors during unusual market volatility. We look forward to our continued work with the House Agriculture Committee and USDA on these and other farm bill priorities in the coming months.”

Farm Bill Cultivation Time is Now, NMPF’s Bleiberg Says

Posted on by Theresa Sweeney

With initial hearings under way, dairy’s priorities in the 2023 Farm Bill are taking shape, NMPF Senior Vice President for Government Relations Paul Bleiberg said in an NMPF podcast.

“A lot of that stakeholder outreach is going on right now, both publicly in hearings and behind the scenes as well, as we all start to figure out what improvements do we need to see in the next Farm Bill,” Bleiberg said. “It’s an important opportunity given that it only does come up every so often.”

Bleiberg also discussed upcoming congressional elections and how redistricting could affect dairy’s political clout in the next Congress. The full podcast is here. You can find and subscribe to the podcast on Apple Podcasts, Spotify, Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” A transcript is also available below. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Given Dairy’s Progress, NMPF Voices Concern with Proposed SEC Climate Rule

Posted on by Theresa Sweeney

The U.S. Securities and Exchange Commission’s (SEC) proposed rule mandating extensive climate disclosures from publicly traded companies could undermine the dairy industry’s progress toward its sustainability goals and create far-reaching technical and financial challenges for American dairy farmers and their cooperatives, the National Milk Producers Federation (NMPF) said in comments submitted today.

“Dairy farmers are on the frontlines confronting the many challenges associated with climate change and remain committed to making progress to reduce the industry’s environmental impact,” said Jim Mulhern, president and CEO of NMPF. “The SEC rule, as written, could hamper our ability to make progress through the industry’s robust, voluntary greenhouse gas (GHG) assessment program, and jeopardize our goal of reaching GHG neutrality by 2050.”

U.S. dairy farmers have been leading environmental stewards for decades, tending their animals, land and water with great care. Thanks to improvements in productivity, new technologies and evolving best management practices, the environmental impact of producing a gallon of milk requires less water, less land and has a smaller carbon footprint than ever before. Still, the industry remains committed to its continued progress, devoting resources to programs, research and services that advance its 2050 goals to achieve industrywide neutral or better greenhouse gas emissions, optimize water usage and improve water quality.

To track progress and reach these important environmental goals, the National Dairy Farmers Assuring Responsible Management (FARM) Program in 2017 launched the Environmental Stewardship (ES) platform. The program provides a comprehensive estimate of GHG emissions and energy use on dairy farms with a suite of tools and resources for farmers to measure and improve their environmental footprint. FARM ES is the dairy community’s platform for a consistent, unified approach to GHG measurement that is free and accessible to all dairy farmers. Currently, over 80 percent of U.S. milk is handled by cooperatives and processors participating in FARM ES.

SEC’s proposed rule, “The Enhancement and Standardization of Climate Related Disclosures for Investors”, would require public companies to disclose GHG emissions, including emissions from upstream and downstream activities in its value chain, known as Scope 3. NMPF cautioned SEC that the inclusion of Scope 3 emissions disclosure within the rule is premature, and risks undermining the extensive efforts the dairy industry has made toward developing trust and buy-in for its voluntary GHG assessment program.

NMPF also emphasized the significant financial burden the proposed rule would have on dairy farmers and their cooperatives related to the collection and aggregation of on-farm GHG data.