FDA Commissioners Agree: Nutrition’s a Problem for Plant-Based Faux Dairy

It’s easy to become numb to the over-polished signaling that often passes as discourse in Washington, but sometimes reading things closely reveals interesting nuggets that show how an official is weighing a decision or perceiving an issue.

Example: an exchange between FDA Commissioner Robert Califf and Wisconsin Senator Tammy Baldwin at a recent Agricultural Appropriations Subcommittee hearing. Baldwin chairs the Senate subcommittee that sets spending levels at FDA — the sort of thing that would make an FDA commissioner pay attention. And when she asked him for his thoughts on how plant-based beverages that masquerade as dairy products should be labeled, he noted that when people think about dairy vs. plant-based beverages, they “are not very equipped to deal with what’s the nutritional value” of the products.

In other words, confusion over the nutritional values of dairy versus plant-based beverages is real.

This isn’t the first time an FDA commissioner has acknowledged the problem of nutritional confusion, which has gained attention well beyond the dairy farmers who create high-quality nutrition every day. From the American Academy of Pediatrics to the School Nutrition Association and others, concerns over the public-health impacts of consumers substituting dairy with nutritionally inferior plant-based products are widespread and well-known.

That’s why Califf’s predecessor, Dr. Stephen Hahn, said in his confirmation hearing that “clear, transparent, and understandable labeling for the American people” was necessary “so that they can make the appropriate decisions for their health and for their nutrition.” That’s why Hahn’s predecessor, Dr. Scott Gottlieb, expressed concern that consumers were being “misled” by plant-based beverages and asked whether consumers “who are using plant-based milk products by seeing the word ‘milk’ imputing a certain nutritional value into that beverage that they’re not deriving?”

And that’s why Gottlieb’s predecessor, who was … wait. Gottlieb’s predecessor was Califf. But you get the picture.

The problem of nutritional confusion, also borne out by consumer surveys, isn’t even controversial at FDA, at least not among its political leadership. The only thing that’s been controversial, apparently, is FDA staff doing something to address the problem. But hope springs eternal, as well as opportunities for action. With long-promised guidance on dairy terms and plant-based beverages due this summer, federal policy has a chance to align with the words of its top officials, by finally creating the labeling integrity consumers deserve.

Doing the wrong thing – essentially preserving the Wild West status quo of plant-based peddlers flouting the FDA’s own rules – will mean little, as federal courts have ruled that guidance policy pronouncements can’t replace regulation, and at the root of current regulation is FDA’s own standard of identity, which clearly identifies milk (the building block of all dairy products) as an animal product.

But doing the right thing – advocating for consumers, promoting transparency in labeling and reinforcing the nutritional importance of those standards – would help restore FDA’s credibility as a consumer advocate and its reputation for public health leadership. And let’s face it, FDA isn’t having the easiest time these days.

The path is clear. The door is open. All FDA needs to do is walk through it and fix what its leaders already know is a problem. And we know they know it. Because they’ve said it themselves.

U.S. Retaliatory Tariffs Required as Canada Refuses its USMCA Obligations, Says U.S. Dairy

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today called on the U.S. government to levy retaliatory tariffs on Canada after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement (USMCA) concerning dairy market access.

In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas (TRQs) system violates the terms of USMCA. Canada issued a new TRQ proposal in March which included only inconsequential changes. Today’s announcement shows no indication that Canada intends to comply with its USMCA commitments on dairy TRQs.

“Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations. It has completely disregarded the USMCA agreement signed just a few short years ago,” said Jim Mulhern, president and CEO of NMPF.  “Ottawa’s decision today is clearly designed to test our resolve by doubling down on its longstanding dairy trade violations, ignoring both the spirit and the letter of its trade agreements. That decision demands retaliatory action by the U.S. government. Otherwise, our trade agreements will be seen as toothless before the ink is dry.”

“USTR, USDA and scores of members of Congress from both side of the aisle have worked diligently to ensure American dairy farmers and manufacturers benefit from USMCA. They deserve our deepest thanks for bringing us this far,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, Canada simply refuses to institute real reform, and such actions must have consequences. Retaliatory tariffs are both fair and necessary in this circumstance, as clearly provided for by USMCA.”

As an April 5 bipartisan letter on the matter sent to Ambassador Tai and Secretary Vilsack from  several leading members of the U.S. House of Representatives stated, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain.”

On April 19, USDEC and NMPF filed public comments on the matter with Global Affairs Canada. The filing  noted, “Canada’s proposed allocation and administration policy changes in response to the CUSMA report continue to fall woefully short of full compliance with Canada’s CUSMA obligations. This has consequences not only for the agreed-upon CUSMA benefits denied U.S. and Canadian stakeholders, but also for the credibility of CUSMA enforcement procedures undergoing their first test in this dispute and for the success of CUSMA itself. We urge Canada to consider its larger interest in the success of the CUSMA and modify its dairy TRQ allocation and administration policies to give effect, in good faith, to Canada’s CUSMA commitments.”

Dairy Groups Endorse Alexis Taylor Nomination as USDA’s Top Trade Official

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today praised the nomination of Alexis Taylor to serve as USDA’s Under Secretary of Trade and Foreign Agricultural Affairs.

“This position is essential to the health and well-being of American agriculture, and especially the nation’s dairy farmers, who last year exported over 17% of the milk they produced,” said Jim Mulhern, president and CEO of NMPF. “We are extremely pleased that the Biden Administration has selected such a well-qualified nominee as Ms. Taylor. She has done an excellent job in her prior government service roles and we know will be a strong advocate for U.S. dairy and agriculture as Under Secretary of Trade. We look forward to supporting her throughout the nomination process and working closely with her in her new role once confirmed by the Senate.”

“Consumers around the world seek out American dairy products when making their food decisions,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, ensuring our products reach international store shelves is an unending struggle, working to overcome barriers to trade while also striving to create new market access opportunities. With her wealth of leadership experience at both USDA and at the state level, Ms. Taylor is perfectly positioned to serve American farmers, the broader agricultural industry, and American workers throughout the agricultural supply chain in this indispensable role. The Senate should act quickly to confirm this outstanding nominee.”

U.S. Well-Positioned to Serve the Globe, Economists Say

As its competitors move to constrain – if not roll back – their own dairy production, United States dairy producers are well-positioned to become the preferred supplier to growing international dairy markets, two top dairy economists said in an NMPF podcast.

New Zealand and the European Union, the main U.S. competitors on global dairy markets, aren’t as focused on sustainably feeding the world as the United States, said William Loux, vice president of global economic affairs for the U.S. Dairy Export Council.

“You see countries like the Netherlands driving programs to reduce dairy cows by 30 percent,” he said. “That’s not really necessarily in the spirit of, ‘Hey, there’s a globe right now that is demanding dairy products. How do we do that sustainably?’ which I think is the U.S. perspective. So, as we go forward, the US really should be the one to capture this global dairy demand as we increase our exports overall.”

Loux is joined in the podcast by Stephen Cain, director of economic research and analysis at NMPF. Cain detailed current trade challenges U.S. producers face, including continued supply chain difficulties involving China.

“We’re still having some issues getting product out of the West Coast of the United States, but a growing issue that’s taken place over the last six weeks has really been the buildup and the backlog into Chinese ports, especially outside Shanghai,” Cain said. “COVID-induced lockdowns throughout the region have grown in number and intensity and the amount of people that are being locked down. That’s effectively shut down some of these ports.”

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.


In a ‘New Normal’ That’s Anything But, Dairy Will Persevere

Not too long ago, it would have been hard to come up with a scenario in which record farm milk prices would be cause for anything but celebration.

But context is everything, and as the COVID-related disruptions that have dominated headlines for two years seemingly fade into the background, a new set of national and worldwide challenges are rising that gives pause to even the most positive developments. As part of a dynamic global industry, U.S. dairy producers are inevitably affected by volatility, here and far away.

Record prices, a product of rising domestic and global demand that’s outpaced supply growth, are a current positive outcome of the post-COVID “new normal.” But they are accompanied by higher input costs, more scarce energy supplies, and a domestic and international outlook that’s clouded by problems that initially were hoped to be short-term but appear to be staying for a longer haul. Among them:

  • Initially attributed to supply chain disruptions, a tight labor market and the temporary effects of pandemic government spending, accelerating price increases appear to be taking root, disrupting financial planning and making everything from fuel expenses to payrolls harder to predict and accommodate.
  • Supply chain disruptions themselves aren’t easing as quickly as anticipated, in part because of China’s own zero-tolerance approach to COVID and continued challenges in global trade flows that are now increasing significantly because of yet another factor: Russia’s invasion of Ukraine.
  • Russia’s war, initially expected to be brief, is now predicted by some experts as possibly continuing well into the next year. The invasion is yet another source of global turbulence, and for agriculture its perhaps the most profound challenge of all, as it directly affects the world’s ability to feed itself and farmers’ ability to secure the inputs they need at reasonable prices.

For us at NMPF, these disruptions and fast-moving developments demand new efforts to support our members and advance dairy – our mission no matter what circumstances may be.

On inflation and labor concerns, we are urging the White House to level the playing field for the dairy workforce by expanding visa access for immigrant workers and calling for expanded energy production to ease spiking input costs. We’re also working with other agricultural organizations to make sure that agriculture’s critical but unique needs for fertilizer and fuel are met even when costs are high and supplies are tight. This all builds the resolution we adopted at our March Board of Directors meeting encouraging the White House to explore all options to boost necessary energy production, after which we have seen the Biden Administration authorize release oil from the nation’s Strategic Petroleum Reserve and expand use of E-15 ethanol blends in gasoline.

We are redoubling our efforts to ease supply chain stresses faced by agricultural producers that have already cost dairy more than $1.5 billion in revenues. We have urged the Agriculture and Transportation departments to increase collaboration to enhance capacity at ports, incentivize carriers to load export cargo, and improve transparency throughout the supply chain. Everything from expanded agricultural access to containers in Midwestern cities to financial incentives to get those containers into the hands of dairy exporters rather than shipping them to Asia empty must be on the table. We’ve also, as part of an ag-group coalition, also asked the Surface Transportation Board to help address agriculture’s problems with railroad service while working with key lawmakers to help get the Ocean Shipping Reform Act through Congress.

And on Ukraine, while like everyone else we are praying for peace and freedom, we’re also adjusting to the new reality of a dramatically changed environment for global agricultural production and trade. As member cooperatives donate in ways large and small, publicly and quietly, to ease Ukraine’s humanitarian crisis, we also know that U.S. agriculture must step into the significant breach created when Black Sea agriculture is no longer so well-positioned to play its prominent role in feeding many parts of the world. The conflict forcefully illustrates that the United States remains the world’s breadbasket, and dairy products are a key part of what that basket contains. We continue to provide high-quality, reliable, nutritious – and affordable — products to the world. That will change in no way, no matter what global disruptions erupt.

The world wants – and needs – what we provide. Current record-level prices indicate that. But the moment we’re living through is not a moment to celebrate. Costs are high, disruptions are constant, challenges are abundant, and it’s not hyperbole to say the new normal presents clear and present dangers. But dairy farmers will persevere, as they always do. We are proud to serve them, and we are honored to be leading as well.

April CWT-Assisted Dairy Export Sales Totaled 67 Million Pounds

CWT member cooperatives secured 40 contracts in April, adding 6.3 million pounds of American-type cheeses, 9,000 pounds of butter, 827,000 pounds of whole milk powder and 331,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 67 million pounds of milk on a milkfat basis. These products will go customers in Asia, Central America, Middle East-North Africa, Oceania and Europe, and will be shipped from April through October 2022.

CWT-assisted 2022 dairy product sales contracts year-to-date total 42.8 million pounds of American-type cheese, 46,000 pounds of butter, 4.3 million pounds of cream cheese and 15.6 million pounds of whole milk powder. This brings the total milk equivalent for the year to 543 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.

Supply Chain Needs Outlined by NMPF, USDEC to Administration

NMPF and USDEC, with input from their joint export supply chain working group, took multiple steps last month to tout additional actions the U.S. government could take to help address the supply chain issues plaguing dairy exporters.

Highlighting the efforts were comments the two organizations submitted to the Federal Maritime Commission (FMC) on April 14 concerning detention and demurrage billing requirements. The comments outlined a series of nine recommendations for rulemaking focused on upgrading carriers’ information requirements related to detention and demurrage — measures that would help correct the current information power imbalance that favors carriers.

NMPF and USDEC also sent a letter April 21 to Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg recommending five additional tools that could provide supply chain relief and support to dairy farmers and exporters. The leading recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR) which previously detailed the availability of ocean shipping containers at locations across the United States on a weekly basis. NMPF export supply chain working group members have underscored the usefulness of this report and urged its reactivation.

Shortly thereafter, NMPF joined a coalition of agricultural associations in an April 25 letter to Director of the National Economic Council Brian Deese, Secretary Vilsack and Secretary Buttigieg, asking the administration to coordinate a meeting between exporters and ocean carriers to foster progress on export shipping access.

While these immediate steps could help deliver much-needed immediate relief, NMPF also remains focused on advancing longer-term legislative efforts to heighten the oversight of ocean shipping practices and mandate reforms.

The Ocean Shipping Reform Act (OSRA)– now passed by both the U.S. House and Senate – is headed to conference to reconcile differences in the two versions. NMPF and USDEC played a key role in shaping the text for both versions and securing bipartisan support, but the work continues to ensure the provisions that would deliver the most tangible solutions are retained in a final bill.

The most likely route forward is through the conference process slated to begin in May on a China competitiveness legislative package of which OSRA is a part. NMPF joined an April 20 letter from a broad coalition of U.S. exporting organizations to the conferees, urging the inclusion of the more prescriptive provisions unreasonable carrier behavior.

NMPF Pursues, Protects Dairy Market Access

NMPF and the U.S. Dairy Export Council (USDEC) submitted joint comments to the U.S. Trade Representative’s Office on April 11 asking it to place a high priority on tariff cuts and nontariff barrier removals through the Indo-Pacific Economic Framework (IPEF).

While the administration still hesitates to pursue comprehensive free trade agreements, the framework, which is focused on defining shared objectives around trade facilitation, standards, supply chain resiliency, sustainability, and other common interests in the Indo-Pacific region, presents a potential opportunity to take one step forward on access terms in the region. NMPF in the comments urged that the Biden Administration pursue comprehensive trade agreements to establish lasting tariff and nontariff trade barrier reductions. While acknowledging that the economic framework will not be that kind of agreement, the comments make the case that it could still reduce or eliminate barriers to trade and suggest numerous areas for potential progress.

NMPF and USDEC worked closely with Congressional offices to bolster that message through a March 30 House of Representatives letter to U.S. Trade Representative Katherine Tai and Secretary of Agriculture Tom Vilsack urging the administration to prioritize U.S. food and agriculture in any IPEF negotiations. The bipartisan letter, led by Reps. Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), and signed by 85 other members of Congress, called on the administration to use the Indo-Pacific negotiations to “include efforts to reduce tariffs on U.S. agricultural exports,” to establish regulatory reforms that would benefit U.S. dairy and others in American agriculture, and more.

NMPF also is continuing to safeguard free trade in Latin America, where growing anti-import sentiment from domestic agricultural industries is contributing to a proliferation of potential new market access barriers.

Panama formally petitioned the United States in March 16 to renegotiate several of the agricultural market access provisions in the U.S.-Panama Trade Promotion Agreement. In response, NMPF and USDEC, working together with the Corn Refiners Association, initiated an April 14 letter co-signed by fifteen other agricultural organizations to Ambassador Tai and Secretary Vilsack urging them to preserve the agricultural market access terms of the trade deal and ensure Panama honors its trade obligations. The letter states that modifying an already-implemented trade deal would set an “alarming precedent” and urges the administration to stay the course on FTA implementation.

NMPF, Congress Demand Canada Meet USMCA Commitments

NMPF soundly rejected a Canadian proposal to “modify” its dairy tariff rate quota (TRQ) administration process in joint comments with USDEC to the Canadian government on April 19. The action follows a January dispute settlement ruling that Canada is not abiding to its market access commitments in the U.S.-Mexico-Canada Agreement (USMCA).

NMPF’s comments outline how Canada’s TRQs fail to fulfill its dairy obligations including how Canada limits proposed TRQ allocations to Canadian processors and distributors based on dairy sales; how Canada excludes other dairy purchasers such as retailers from the system; and Canada’s lack of good regulatory practices designed to encourage effective use of the TRQs allocated to a given company.

NMPF called on Canada to “consider its larger interests” in the success of USMCA and modify its dairy TRQ allocation and administration policies to show its good faith toward USMCA.

Complementing this effort, NMPF worked with leading members of the U.S. House of Representatives on an April 5 bipartisan letter to Ambassador Katherine Tai and Secretary Tom Vilsack calling on the Biden administration to reject the proposal and ensure U.S. dairy producers are extended the market access that had been negotiated.

The letter was sent by Reps. Ron Kind (D-WI), Tom Reed (R-NY), Antonio Delgado (D-NY), Glenn Thompson (R-PA), Suzan DelBene (D-WA), Dusty Johnson (R-SD), Jim Costa (D-CA), and David Valadao (R-CA), the same congressional leaders who successfully urged USTR to launch a dispute settlement case against Canada in May 2021.

“A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain,” the letter stated. “That is why it is critical that this compliance stage of the USMCA dairy case demonstrate that the USMCA enforcement process works—not just to deliver the right finding, as it did in January, but to ensure faithful implementation of the overall agreement and drive real, tangible reforms that are seen on store shelves, to the benefit of American dairy producers and manufacturers, as intended.”

The House letter follows a March 4 letter from Rep. Elise Stefanik (R-NY) to Ambassador Tai sharply criticizing the Canadian proposal. A similar bipartisan, bicameral letter was sent on April 6 from members of the Minnesota Congressional delegation, led by Rep. Michelle Fischbach (R-MN) and Sen. Amy Klobuchar (D-MN). Sen. Tina Smith (D-MN) and Reps. Tom Emmer (R-MN), Angie Craig (D-MN) and Pete Stauber (R-MN) also joined the letter.

NMPF continues to work with these and other congressional offices to help ensure that Canada is held to account so that U.S. dairy farmers can reap USMCA’s full promised benefits.

U.S. Monthly Average Milk Price Sets Record High in March

The highest-ever monthly U.S. average all-milk price was reported by USDA’s National Agricultural Statistics Service (NASS) for March, at $25.90/cwt. This was twenty cents per cwt higher than the previous record, in September 2014, the only year – until now – in which the monthly all-milk price topped $25.00/cwt.

The futures-based outlook for the milk price for all of calendar year 2022 halted its steady ascent since last summer during the fourth week of March, but it hasn’t dropped below $26.00/cwt since then, indicating there may be more monthly records ahead for this key measure of U.S. dairy farmers’ gross incomes from milk sales.

USDA has reported the March margin under the Dairy Margin Coverage program to be $11.55/cwt. Since March 2021, the DMC feed cost has increased by $3.22/cwt, while the all-milk price has risen by $8.50/cwt over the same period. The DMC Decision Tool on the USDA Farm Service Agency DMC website predicts that DMC margin will remain above the $9.50/cwt maximum coverage level under the program for the remainder of 2022.

NMPF Co-op Member Outlines Dairy Needs in Farm Bill Kickoff Hearing

Michigan dairy farmer Ashley Kennedy, a member of the Michigan Milk Producers Association, testified on behalf of MMPA and the National Milk Producers Federation at the Senate Agriculture Committee’s first hearing dedicated to the upcoming Farm Bill, the twice-a-decade reauthorization of all USDA programs.

“I couldn’t have come back to the family farm if it were not for many of these programs,” said Kennedy, whose family milks 240 cows in east-central Michigan, at the field hearing held April 29 at Michigan State University in East Lansing. “Being a part of the conversation is essential to see a future that reflects opportunity and success.”

Addressing Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI), who presided over the hearing, Kennedy discussed her perspective as a third-generation farmer on the successes and shortcomings of current dairy policies and programs Congress must address in the next reauthorization. Kennedy thanked the committee, and Chairwoman Stabenow in particular, for overhauling the dairy safety net during the last farm bill and providing producers with access to crop insurance-like risk management tools, which puts dairy farmers on par with producers of other commodities.

Kennedy praised the Dairy Margin Coverage program as “essential to our farm and family’s financial success last year” and called attention to recent improvements that accounted for modest production increases and better reflect dairy farmer feed costs.

Still, the lessons of the COVID-19 pandemic for the dairy sector in Michigan and nationwide need to be considered, Kennedy said in her written testimony, including the effects of a milk pricing change made in the previous farm bill. “The combined effects of the change made to the Class I mover in the last farm bill, and the government’s heavy cheese purchases, cost dairy farmers over $750 million in Class I skim revenue ring the last six months of 2020.”

The dairy industry, under NMPF leadership, is seeking consensus on a range of improvements to the Federal Milk Marketing Order system, including but not limited to the Class I mover, that can be taken to the U.S. Department of Agriculture for consideration in a national order hearing.

Beyond economic policy, Kennedy also advocated for additional investments in conservation programs to help dairy farmers build on their ongoing sustainability work; urged a doubling of funding for key trade promotion programs; and spoke to the importance of farm bill nutrition programs as “the bedrock of linking the food we produce as farmers to households across the country.”

Kennedy closed by offering a personal take on the need for significant mental health policy in the farm bill. “Stress in rural America is not talked about enough, which is unfortunate, because it’s a problem we can only solve by working together.” Kennedy thanked the committee for reauthorizing the Farm and Ranch Stress Assistance Network in the last farm bill but urged that even more robust resources be provided.

The Senate Agriculture Committee is expected to hold an additional field hearing in Arkansas, the home state of Ranking Republican John Boozman, in the coming weeks.

NMPF Looks Forward to White House Conference on Nutrition, Emphasizes Dairy’s Role

From NMPF President and CEO Jim Mulhern:

“NMPF looks forward to the first White House Conference on Hunger, Nutrition and Health in more than 50 years, to advance the goals of ending hunger, increasing healthy eating and physical activity, and decreasing the prevalence of diet-related diseases across our nation. Dairy products — and the 13 essential nutrients they provide — are a key ingredient in this effort. The Dietary Guidelines for Americans shows that dietary patterns including dairy are associated with beneficial health outcomes, including lowered risk for cardiovascular disease, obesity and type 2 diabetes. The dietary guidelines also identify dairy products as a critical source of calcium, potassium and vitamin D, three of the four nutrients of public health concern, and note that dairy is under-consumed across all age categories.

“NMPF looks forward to working with the White House and both public and private partners toward advancing these incredibly important goals as we work to ensure all Americans have access to healthy food.”