Author: Theresa Sweeney

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

Posted on by Theresa Sweeney

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 Friday 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 incorporated into the next reauthorization of federal farm programs, she said in her written testimony. The effects of federal programs on milk pricing deserve special attention, she said. “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 during 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.

U.S. Trade Representative Remarks on EU GI Abuses in Special 301 Report

Posted on by Theresa Sweeney

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today welcomed the U.S. Trade Representative’s prioritization in this year’s Special 301 Report of the importance of preserving U.S. food and beverage producers’ market access rights in the face of persistent efforts by the European Union (EU) to misuse geographical indications (GIs) and create non-tariff barriers to trade in markets around the world. The report follows detailed comments on the global scale of various common name threats submitted in January by CCFN and supported by USDEC and NMPF.

This annual report outlines global challenges on intellectual property issues and describes in detail the European Union’s (EU) campaign to eliminate competition by restricting the use of common food and beverage terms, such as “parmesan,” “bologna” and “chateau.” The EU’s strategy, active in numerous countries around the world, erects unfair barriers to trade that negatively impact non-EU exporters relying on common food names, as illustrated by USTR’s report which noted, “As part of its trade agreement negotiations, the EU pressures trading partners to prevent any producer, except from those in certain EU regions, from using certain product names, such as fontina, gorgonzola, parmesan, asiago, or feta. This is despite the fact that these terms are the common names for products produced in countries around the world.”

“We whole-heartedly agree with USTR about the harm imposed by the EU’s deliberate restriction of generic food and beverage terms in markets around the world,” said Jaime Castaneda, executive director of CCFN. “USTR’s Special 301 report should serve as a foundation upon which the administration can build a more proactive and focused global campaign of its own to counteract the EU’s long running efforts. U.S. farmers and food producers, and others around the world, deserve the chance to compete fairly in export markets.”

“The U.S. government has accurately diagnosed the EU’s deliberate global strategy of cloaking nontariff trade barriers as ‘GIs’ so that it doesn’t have to compete head-to-head in common product categories with U.S. food producers,” said Jim Mulhern, president and CEO of NMPF. “By deploying all of the tools at its disposal, including use of existing U.S. FTAs, the upcoming IPEF talks and TIFAs, the administration can take strong action to establish concrete market access protections with our trading partners around the world. The time for this is now and we stand ready to support those proactive efforts on behalf of American farmers.”

“Because we export the equivalent of 17% of U.S. milk production, trade barriers like bans on the use of common cheese names have profound consequences for the entire American dairy industry, from the many small and medium-sized family-owned companies to farmer-owned cooperatives and the workers employed there,” said Krysta Harden, president and CEO of USDEC. “U.S. dairy farmers and cheesemakers only want a fair shot at sharing their high-quality, sustainably produced products with consumers around the globe. By doubling down on combating global restrictions on the sale of common name products, USTR can defend opportunities for American-made products internationally and the jobs they support here at home.”

What’s Important to Know About Dairy on Earth Day

Posted on by Theresa Sweeney

Spring has arrived, the weather is warming (though not too much, we hope), and Earth Day is April 22. Dairy always has reasons to celebrate Earth Day (or Week, or Month — we have enough reasons to carry the season), an opportunity to refocus on its environmental and climate leadership within agriculture in the U.S. and worldwide. Here are a few of them, courtesy of our colleagues at Undeniably Dairy.

  • Due to innovative farming and feed practices, a gallon of milk in 2017 required 30% less water, 21% less land and 19% smaller carbon footprint than in 2007.
  • According to the UN Food and Agriculture Organization, since 2005 North America was the only region in the world that reduced its greenhouse gas emissions, even as it increased milk production, making its greenhouse gas intensity for dairy products the lowest in the world.
  • Dairy farms are a powerful tools against food waste by diverting byproducts (such as almond hulls, citrus pulp, and brewer’s grains) from other food industries and using them as feed, converting potentially unused resources into high-nutrient foods and beverages. Dairy farmers can also convert food waste and manure into valuable products such as renewable energy and fertilizer.
  • U.S. dairy has set a goal to achieve greenhouse gas neutrality by 2050, creating a cross-industry Net Zero Initiative that advances research, on-farm pilots and new market development to make sustainability practices more accessible and affordable to farms of all sizes and regions.

All these facts are important to know. But maybe you want to dig deeper. Maybe you need some uplifting reading … or some social media content to share … to help you become an influencer. If that’s the case, could we suggest these helpful links, sharing stories about dairy’s stewardship of the planet and the farmers who care for them? These are just a start.

The list could go on and on – and we intend to keep adding! So grab a glass of milk and be glad you’re consuming the perfect nutritional complement to an important date on the calendar this week. Sustainability solutions are worth celebrating — and not just on Earth Day. It’s what dairy seeks every day.

NMPF Statement on NYC Mayor Adams Backing Off Proposed Ban of Flavored Milk in Schools

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“Dairy farmers and the cooperatives they own are pleased that Mayor Adams isn’t moving forward with a misguided ban on flavored milk in schools and instead maintaining New York City schools’ ability to offer a wide variety of milk that’s consistent with the Dietary Guidelines for Americans. Flavored milk is rich in nutrients like calcium, potassium, and vitamin D; its consumption as an aid to better student nutrition is supported by parents, physicians, and public health professionals alike. Just this spring, the U.S. Department of Agriculture moved forward with a rule to allow schools to offer low-fat flavored milk for the 2022-23 and 2023-24 academic years.

“Today’s victory is the product of diligent work. We particularly thank Representatives Antonio Delgado (D-NY) and Elise Stefanik (R-NY) for their advocacy in support of continued flexibility for schools to serve children healthy milk and dairy products that benefit their growth and development.”

Congress Demands Canada Meet its USMCA Dairy Commitments, Earning Dairy’s Praise

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) expressed their deep appreciation for robust Congressional support on ensuring Canada fully honors its U.S.-Mexico-Canada (USMCA) dairy market access commitments. Today several leading members of the U.S. House of Representatives sent a bipartisan letter to U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack calling on the administration to reject Canada’s recent dairy proposals and insist on real reform.

Last month, Canada proposed inconsequential changes to its dairy tariff-rate quota (TRQ) allocations after a USMCA dispute panel found in January that Canada’s existing rules do not meet USMCA requirements. Led 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 letter argues that Canada must bring its dairy TRQs into alignment with its USMCA commitments, which would further open Canada’s market to U.S. dairy products. Representative Elise Stefanik (R-NY) has sent a similar letter pointing out that Canada’s USMCA dairy TRQ proposal is insufficient to deliver on USMCA’s promise for dairy exporters on March 4.

“The USMCA is not a list of optional suggestions and aspirational ambitions. Yet Canada has treated its obligations to American dairy producers as a game, seeing what they can get away with,” said Jim Mulhern, president and CEO of NMPF. “Congress rightfully recognizes this must stop. If we do not require our allies meet their signed commitments, then our trade agreements are not worth the paper they are printed on.”

“USDEC appreciates this strong bipartisan support focused on ensuring that American dairy exporters receive the benefits that was negotiated in the USMCA,” said Krysta Harden, president and CEO of USDEC. “We are committed to continuing to work with the U.S. government to make sure that the dairy market access negotiated with Canada is provided in full to the benefit of both American dairy farmers and manufacturers, and Canadian consumers alike.”

The bipartisan House letter sent today states, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain. 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, just as USMCA intended.”

March CWT-Assisted Dairy Export Sales Totaled 73 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 67 contracts in March, adding 6.7 million pounds of American-type cheeses, 37,000 pounds of butter, 611,000 pounds of whole milk powder and 895,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 74 million pounds of milk on a milkfat basis. These products will go customers in Asia, Central America, Middle East-North Africa, Oceania and South America, and will be shipped from March through September 2022.

CWT-assisted 2022 dairy product sales contracts year-to-date total 36.5 million pounds of American-type cheese, 37,000 pounds of butter, 4.0 million pounds of cream cheese and 14.7 million pounds of whole milk powder. This brings the total milk equivalent for the year to 477 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.

Scholarship Applications Deadline Fast Approaching

Posted on by Theresa Sweeney

The deadline for NMPF’s National Dairy Leadership Scholarship Program is fast approaching, with applications being accepted until Friday, April 15.

NMPF awards scholarships annually, ranging from $3,000 to $7,000, to outstanding graduate students (enrolled in Master’s or Ph.D. programs) who are actively pursuing dairy-related fields of research that are of immediate interest to NMPF member cooperatives and the US dairy industry at large.

Graduate students pursuing research of direct benefit to milk marketing cooperatives and dairy producers are encouraged to submit an application (applicants do not need to be members of NMPF to qualify). Scholarship recipients will be invited to present their research via webinar during the summer of 2022. Top applicants are eligible to be awarded the Hintz Memorial Scholarship, created in 2005 in honor of the late Cass-Clay Creamery Board Chairman Murray Hintz who was instrumental in establishing NMPF’s scholarship program.

Recommended fields of study include but are not limited to Agriculture Communications and Journalism, Animal Health, Animal and/or Human Nutrition, Bovine Genetics, Dairy Products Processing, Dairy Science, Economics, Environmental Science, Food Science, Food Safety, Herd Management, and Marketing and Price Analysis.

Applications must be received no later than April 15. For an application or more information, please visit the NMPF website or email scholarship@nmpf.org.

NMPF Calls on U.S. Government to Reject Canadian Dairy Quota Proposal

Posted on by Theresa Sweeney

NMPF firmly rejected a proposal made public on March 3 by Global Affairs Canada that outlined “modifications” to its U.S.-Mexico-Canada Agreement (USMCA) dairy tariff rate quota (TRQ) allocations and has urged the U.S. government to do the same.

The Federation initially called out Canada’s attempts to circumvent its dairy market access obligations shortly before the trade pact’s implementation in July 2020. Following evaluation of input submitted by NMPF and the U.S. Dairy Export Council, the U.S. Trade Representative (USTR) launched the first-of-its-kind USMCA dispute settlement panel in May 2021 over Canada’s TRQ allocations. The panel’s ruling, released in January 2022, requires Canada to modify its TRQ allocation process to come into compliance with the trade agreement.

Unfortunately, Canada’s plan to revise its tariff-rate quotas (TRQs) falls well short of its USMCA requirements. For instance, the new proposal continues to exclude retailers and food service companies and to strongly favor Canadian dairy manufacturers. USTR had raised these specific concerns during the dispute panel process.

Given Canada’s proposal is more akin to a token gesture than an actual remedy to the industry’s concerns, NMPF is now working with allies in the House and Senate to urge USTR to reject Canada’s proposal. Multiple House letters are being sent to USTR to this effect.

As the first such dispute panel under the USMCA, USTR’s actions in this matter will set a powerful precedent on whether USMCA enforcement cases are up to the task of holding all Parties to the agreement to account. USTR will need to demonstrate that the USMCA enforcement process can deliver the reforms needed to bring about full implementation of the agreement.

Year in Review Spotlights FARM Program’s Growth

Posted on by Theresa Sweeney

The FARM Program released its 2021 Year in Review March 9, highlighting new initiatives and program area advancements.

“The FARM Program expanded its efforts to connect, support and recognize dairy farmers and program participants in 2021,” said Emily Yeiser Stepp, vice president of the FARM Program. “Our progress has enabled us to provide meaningful assurances of on-farm social responsibility to the entire dairy supply chain.”

The annual report chronicled the FARM Program’s many activities and accomplishments of the past year, which included adding the FARM Biosecurity program area, implementing the FARM Excellence Awards and developing a formal partnership program.

The complete 2021 Year in Review is available for download here. For a printed copy, contact dairyfarm@nmpf.org.

NMPF Presses U.S. Government to Pursue Market Access Opportunities

Posted on by Theresa Sweeney

NMPF continues to identify and advocate for pathways that increase foreign market access for U.S. dairy while the Biden Administration remains slow to pursue comprehensive trade agreements.

The Indo-Pacific Economic Framework (IPEF), a limited trade contract intended to strengthen trade relations, supply chain resiliency, and cybersecurity in the region, may offer the broadest non-FTA opportunity to advance that goal for now. The framework under development touts a “fair and resilient” trade module focused primarily on addressing nontariff issues.

NMPF, together with USDEC, is working to ensure the dairy industry has a hand in shaping its development as the effort gains momentum. The Senate Finance Committee held a March 15 hearing on the framework, where NMPF helped members with questions for  Sharon Bomer Lauritsen, who testified on behalf of the agricultural industry, to draw out how dairy market barriers could best be addressed in the IPEF.

Several of the recommendations Bomer offered echoed those NMPF shared with USTR in early February in a confidential submission outlining various dairy market access priorities including reductions by our trading partners of their World Trade Organization tariffs.

NMPF also worked with a coalition of agricultural organizations to generate support for a March 30 bipartisan Congressional letter to Ambassador Tai and Secretary Vilsack, urging the administration to make agriculture a priority in IPEF negotiations. Led by Reps. Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), together with Jim Costa (D-CA), Dusty Johnson (R-SD), Ron Kind (D-WI) and Randy Feenstra (R-IA), the letter called on the administration to use IPEF to address barriers to U.S. agricultural exports, create mutually agreed-upon regulatory reforms that would benefit U.S. dairy and others in American agriculture, “include efforts to reduce tariffs on U.S. agricultural exports” and more.