Author: Theresa Sweeney

Member CEOs Meet at NMPF Office

Posted on by Theresa Sweeney

In light of the many recent leadership transitions at NMPF’s member cooperatives – half of the members have changed CEOs within the past three years – NMPF hosted informational meetings May 9-10 to provide background materials and resources to these executives and discuss overall organizational strategy and mission priorities at NMPF, part of the ongoing discussion of how to best serve dairy farmers and the entire sector.

Five cooperative CEOs attended, with one joining via Zoom, for the deep dive on NMPF governance, budgets and staff resources and policy priorities.

NMPF Leads on Supply Chain Issues in White House, USDA, Congressional Engagement

Posted on by Theresa Sweeney

NMPF staff joined USDEC leadership engaging policymakers in meetings at the White House and USDA, as well as with leading members of Congress, in meetings May 12 on export supply chain issues. The group underscored the importance of the pop-up sites USDA launched earlier this year in Oakland and Seattle, and emphasized additional potential remedies, including:

  • Preferential port access for ocean carriers that maximize agricultural export carriage
  • Resuming the weekly Ocean Shipping Container Availability Report
  • 24-hour ag export pop-up sites at inland ports; and
  • Dual-turn facilitation of containers. A dual-turn allows containers delivering imports to an inland location to be provided directly to a nearby export-focused shipper, rather than being returned empty to the coast.

On May 25 USDA announced that it would begin accepting applications for the Commodity Container Assistance Program (CCAP) at the ports of Oakland and Seattle. Under the program, the Farm Service Agency (FSA) is providing a $125 per container payment to assist exporters with the additional logistical expenses associated with picking up empty shipping containers to be filled with agricultural commodities and will also provide payments of $200 per dry container and $400 per refrigerated container to help cover additional logistical costs associated with moving the shipping container.

NMPF touted this additional step to support dairy exports as president and CEO Jim Mulhern noted, “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

NMPF remains among the most active agricultural industry voices pushing for progress to resolve the export supply chain crisis through a full-spectrum approach, engaging policymakers, driving policy and educating the public.

NMPF also commended a House bill introduced on May 13 by Reps. Angie Craig (D-MN) and Dusty Johnson (R-SD) that would create a dedicated task force within USDA designed to support American agriculture by shoring up the supply chain, increasing government coordination and preventing future issues. The bill unanimously passed the House Agriculture Committee on May 18. The language in this stand-alone bill parallels language in the existing COMPETES Act, now in conference.

Finally, NMPF’s senior vice president of trade policy, Shawna Morris, addressed dairy industry concerns as part of a May 18 webinar, hosted by Hoard’s Dairyman. Shawna focused on NMPF’s policy efforts. The lively and informative panel, which remains available for viewing, included perspectives from the Port of Oakland, a dairy exporter and an expert academic.

USTR Amplifies NMPF Concerns on Common Cheese Names in Key Report

Posted on by Theresa Sweeney

NMPF push for U.S. action to address the EU’s campaign to claim exclusive rights to use common food names like “parmesan” and “feta” were highlighted in by the U.S. Trade Representative’s (USTR) office in an April 27 report on intellectual property impediments around the world.

USTR included in its annual Special 301 Intellectual Property Report  numerous policy concerns raised in January in a joint filing by NMPF and USDEC and also detailed in a separate filing by the Consortium for Common Food Names (CCFN), which NMPF’s trade policy team staffs.

Echoing alarms raised by NMPF, USDEC and CCFN, the USTR report outlined global challenges on intellectual property issues, describing in detail the European Union’s (EU) campaign to eliminate competition in the global marketplace by restricting the use of common food and beverage terms.

“As part of its trade agreement negotiations, the EU pressures trading partners to prevent any producer, except those in certain EU regions, from using certain product names, such as fontina, gorgonzola, parmesan, asiago, or feta,” USTR’s report noted “This is despite the fact that these terms are the common names for products produced in countries around the world.”

While NMPF appreciates the accurate diagnosis of the EU’s deliberate global strategy, the organization is asking the administration to develop a proactive common food name strategy to counter EU efforts. The government has a broad range of tools at its disposal, including Free Trade Agreements, the upcoming Indo-Pacific Economic Framework negotiations and Trade and Investment Framework Agreements, which should be used to establish concrete market access protections with U.S. trading partners around the world.

NMPF Push on Canadian USMCA Compliance Results in Second USTR Case on Dairy Access

Posted on by Theresa Sweeney

NMPF’s championing of the need to use the full arsenal of U.S.-Mexico-Canada (USMCA) agreement enforcement tools to tackle Canada’s lack of compliance with its dairy market access obligations saw USTR launch an additional dispute settlement case on May 25. Just over a week prior, on May 16, Canada published as final a revised set of USMCA dairy tariff rate quota (TRQ) rules, which failed to fix its USMCA-violating practices. To address the additional problems Canada’s revised approach has raised and to defend the integrity of the agreement, the U.S. Trade Representative’s Office announced it was bringing an additional case.

“Prime Minister Trudeau regularly pledges Canada supports a rules-based global order built on cooperation and partnership, yet Canada continues to flout these trade commitments and plays games rather than meet its signed treaty commitments,” said Jim Mulhern, president and CEO of NMPF. “Dairy farmers appreciate USTR’s continued dedication to aggressively pursuing the full market access expansion into the Canadian market that USMCA was intended to deliver. At the same time, given Canada’s history of persistent violations and the high likelihood Ottawa will once again disregard its USMCA obligations, USTR and USDA must be prepared to deploy the strongest-possible retaliatory measures envisioned under the USMCA should this ‘whack-a-mole’ approach continue. Canada’s actions must have consequences.”

The latest step came after repeated meetings by NMPF and USDEC staff with USDA and U.S. Trade Representative officials to urge further action in anticipation of Canada’s announcement that it would make only minor cosmetic changes to its dairy USMCA tariff-rate quota (TRQ) system. Those changes fall well short of the reforms both organizations have insisted are needed for Canada to meet its commitments under the trade agreement.

A USMCA dispute settlement panel, initiated by the U.S. government at NMPF’s urging, found in January that Canada has not complied with its dairy market access commitments. Canada responded to the ruling in March with a proposal to “modify” its dairy TRQs, which NMPF and USDEC soundly rejected as it failed to incorporate real reforms. Despite the subsequent rejection from the Administration and Congress, Canada forged ahead on May 16 in publishing the TRQs without any consequential changes. In response, USTR indicated its intent to challenge those new rules.

Canada’s dairy TRQ system is also facing a dispute settlement process initiated by New Zealand under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a process that echoes some of the concerns raised by the U.S. government.

U.S. Monthly Average Milk Price in April Tops March Record

Posted on by Theresa Sweeney

USDA’s National Agricultural Statistics Service (NASS) reported Tuesday the U.S. average all-milk price was $27.10/cwt, the second straight month of a record high all-milk price and shattering the previous record set in March.

The March milk price, which was not revised in the recent announcement, was $25.90/cwt. That was 20 cents/cwt higher than the previous record, in September 2014, and only the fourth time the monthly milk price has been above $25.00/cwt.

Dairy futures prices as of the end of May indicated that the monthly all-milk price would stay in the range of April’s price through this fall.

USDA reported the April DMC margin was $12.29/cwt, a gain of $0.74/cwt over the margin for March. The April DMC feed cost rose $0.46/cwt, driven entirely by a higher corn price, while the soybean meal price declined, and the premium alfalfa price showed a small increase.

Fake Milk Guidance Generates NMPF Push

Posted on by Theresa Sweeney

As a summer deadline for FDA guidance on the labeling of plant-based alternatives approaches, NMPF staff have been in communications with key administration officials and Capitol Hill lawmakers pressing to ensure transparency and integrity in the use of dairy terms and labeling – all the while maintaining the public drumbeat for positive change.

NMPF leadership held a call with FDA and administration officials May 16, discussing dairy’s main arguments for an FDA guidance that reaffirms the agency’s own commitment to enforcing its standards of identity for product labels, which in the case of milk is clearly defined as a dairy product. Allies on Capitol Hill are also being engaged to keep pressure on FDA to stand up for consumers and end the marketplace confusion over the nutritional value of plant-based vs. dairy products.

And finally, NMPF has been devoting its recent Dairy Defined columns to the issue, focusing on FDA commissioner support for labeling integrity as well as instances in FDA’s own history in which it’s properly defended dairy terms, underscoring that a better approach is possible. NMPF looks forward to a positive outcome on the issue, and is prepared to respond to whatever guidance is offered.

FDA Guidance an Opportunity to Get Labeling Right

Posted on by Theresa Sweeney

As a promised summer deadline for U.S. Food & Drug Administration guidance on the labeling of plant-based alternatives approaches, dairy farmers and the entire industry are readying for a milestone in the decades-long effort we’ve led to ensuring integrity in marketplace labeling of dairy products. The news could be good for consumers, or it could be insufficient for their needs – the agency has been very tight-lipped in our conversations with them.

But after more than four decades of advocacy on this issue, we at NMPF aren’t getting too worked up about any gossip, whether or not it’s favorable to consumer and dairy interests. Why are we so serene in the midst of the Washington rumor mill? With apologies to an old political truism, “It’s the facts, stupid.” The facts are on our side, and regardless of plant-based marketing whims or FDA’s thus-far history of ambivalence on this issue, facts matter. That’s why we know that, regardless of the details any guidance may contain, we won’t accept anything less than full labeling transparency as we continue to focus on this issue. The problem of nutritional confusion is too significant for consumers and medical professionals to ignore, and labeling integrity is too near and dear to our hearts to accept anything other than a fairer, more transparent marketplace for all.

So, as we wait on FDA, a few things to keep in mind:

  • FDA’s own leadership has shown it understands and accepts our core point – that the current Wild West approach to labeling doesn’t work for consumers or a fair marketplace. Current Commissioner Dr. Robert Califf, as well as predecessors Dr. Stephen Hahn and Dr. Scott Gottlieb, have all acknowledged the problem of nutritional confusion, as explained by the American Academy of Pediatrics and other organizations. Ignoring the problem isn’t an option when it’s been repeatedly acknowledged as a problem.
  • True, robust enforcement of standards of identity is possible – FDA itself has already demonstrated that, no matter what a plant-based advocate may argue. The examples aren’t as numerous as they would be absent FDA’s practiced ambivalence on the matter, but as recently as 2011 FDA has stood up against mislabeling of plant-based products with dairy terms. The rules themselves have never been the problem – bureaucratic inertia has. FDA has a golden opportunity to boost its own credibility by standing up for transparent and non-misleading labeling.
  • An agency’s statement of guidance policy can’t replace a regulation, under the Administrative Procedure Act. Any FDA guidance that’s dissonant with its own standards – and those aren’t changing – isn’t worth the pixels it’s downloaded with. Wiser heads should know that, and for the sake of FDA’s own credibility, they need to prevail.
  • The reasons above are only a few of the litany of reasons labeling integrity is essential. Consumer surveys show rampant confusion over the nutritional content of dairy products versus plant-based imitators; the United States is a global outlier in its lax approach to how dairy terms in labeling; and the proper use of dairy terms has deep support among lawmakers in Congress – as it has for generations, as evidenced by the Butter Act, the only Congressionally written standard of identity.
  • And finally, one more time, to quote former Commissioner Gottlieb: “An almond doesn’t lactate.”

For those reasons and others, we’re anxiously awaiting the guidance document. With decades of experience and advocacy under our belts, we’re ready for this. FDA has a chance to start afresh and reaffirm its mission to protect consumers – not a bad option for a currently embattled agency. And if, for whatever specious reasons, the guidance isn’t the reaffirmation it needs to be? Then we redouble our efforts, with strengthened resolve and an awareness that facts don’t change, and consumer needs don’t go away.

Our energy on this topic is boundless, and we never shy from the chance to do what’s right. We hope FDA feels the same as we do – for the sake of consumers, it needs to. And with that, we’re looking forward to what the agency has to say.

U.S. Dairy Supports New USDA Container Program for Ag Exports

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today welcomed the U.S. Department of Agriculture’s (USDA) announcement to offer additional support to American agriculture exporters through the new Commodity Container Assistance Program (CCAP). The initiative will provide funding from the Farm Service Agency (FSA) to exporters to reduce the costs of sourcing containers at the Oakland and Seattle-Tacoma ‘pop-up’ port locations.

“Dairy producers and other agriculture exporters have been clamoring for relief from these ocean shipping challenges for nearly two years,” said Jim Mulhern, president and CEO of NMPF. “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

“We are grateful to see Secretary Vilsack and USDA taking a leadership role in addressing these port and ocean freight challenges that dairy producers are facing. I am impressed with the speed and innovative approach with which USDA has moved this pop-up concept into operation,” said Krysta Harden, president and CEO of USDEC. “We will continue working with USDA and its interagency partners in pursuing solutions to the supply chain challenges that impact the bottom line of dairy exporters and the U.S. workers and foreign consumers who rely upon American dairy exports.”

As port terminal operations have become congested and ocean carriers have prioritized shipping empty containers back to Asia from west coast ports, agriculture exporters have struggled to obtain containers from the carriers, to secure reliable vessel bookings, and to overcome obstacles to delivering goods to the ports to meet vessel departures timelines. The pop-up sites are intended to offer off-terminal locations for empty container storage, increasing access for agriculture shippers to use them and freeing up port terminal space for freight operations. At the pop-up sites, exporters can transload their commodities into the containers (both dry and reefer) and store them on property until the vessel booking earliest return dates are announced, enabling more efficient drayage delivery to the ports. The FSA’s payments will help to cover the costs of moving the containers between the ports and the pop-up yards, as well as the storage at the pop-up site.

NMPF and USDEC are working with USDA to identify key port locations, including at inland terminals, to replicate the pop-up initiative.

U.S. Dairy Supports U.S. Government’s Pursuit of Full Canadian USMCA Compliance

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) today applauded the Biden administration for its initiation of a second U.S.-Mexico-Canada Agreement (USMCA) dispute panel concerning Canada’s ongoing refusal to meet its USMCA dairy trade obligations.

The first USMCA dispute panel launched by the U.S. government determined in January that Canada was in violation of the agreement’s dairy tariff-rate quota (TRQ) provisions. On May 16, Canada published as final its revised USMCA dairy TRQ approach, which failed to fix its USMCA-violating practices. To address the additional problems Canada’s revised approach has raised and to defend the integrity of the agreement, the U.S. Trade Representative’s Office has brought an additional case.

“Prime Minister Trudeau regularly pledges Canada supports a rules-based global order built on cooperation and partnership, yet Canada continues to flout these trade commitments and plays games rather than meet its signed treaty commitments,” said Jim Mulhern, president and CEO of NMPF. “Dairy farmers appreciate USTR’s continued dedication to aggressively pursuing the full market access expansion into the Canadian market that USMCA was intended to deliver. At the same time, given Canada’s history of persistent violations and the high likelihood Ottawa will once again disregard its USMCA obligations, USTR and USDA must be prepared to deploy the strongest-possible retaliatory measures envisioned under the USMCA should this ‘whack-a-mole’ approach continue. Canada’s actions must have consequences.”

“USTR and USDA have shown dogged determination to uphold USMCA despite Ottawa’s clear refusal to engage in real reform to come into compliance with the agreement,” said Krysta Harden, president and CEO of USDEC. “Dairy farmers and processors appreciate the clear bipartisan commitment from both the Administration and Congress for enforcing the USMCA and insisting on getting the full export benefits the United States so painstakingly negotiated. If we allow Canada to simply ignore its clear obligations, it will set a dangerous and damaging precedent for future trade disputes that will reach far beyond the millions of jobs supported by the American dairy industry.”

Canada’s updated TRQ system continues to block key stakeholders in the Canadian food and agriculture sector, including retailers, from accessing the TRQs, using an allocation method that provides inequitable advantages to Canadian dairy processors, and fails to employ good regulatory practices to encourage effective use of the TRQs allocated to a given company.

Dairy Groups Welcome IPEF, Seek Prioritization of Market Access Provisions

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) welcomed the announced launch of the Indo-Pacific Economic Framework (IPEF) today and the opportunity it offers to strengthen ties with key trading partners across the Asia-Pacific region.

Exports are exceptionally important to the U.S. dairy industry. The United States exported $7.75 billion in dairy products worldwide in 2021, equivalent to approximately 17% of total U.S. milk production.

“Today marks an essential first step on what will surely be a complex journey,” said Jim Mulhern, president and CEO of NMPF. “But to successfully compete in the Asia-Pacific region and meet their demand for dairy, we ultimately need a level playing field. That means tackling both tariff and nontariff barriers that weigh down the ability of U.S. dairy exporters to keep pace with EU and Oceania competitors that have successfully negotiated agreements across the region. We support USTR’s launch of IPEF and look forward to partnering with the Administration on it as talks proceed. As that commences, I urge the Biden Administration to set specific time frames for IPEF negotiations so that it can deliver meaningful results for American dairy farmers. We cannot afford another Trans-Pacific Partnership-type outcome in which we negotiate for six years only to walk away from the final result, leaving our exporters no further down the road than where we started.”

“IPEF offers a chance for the United States to have a positive impact on the trading environment in a vital area of the world,” said Krysta Harden, president and CEO of USDEC. “The Asia-Pacific region is an important destination for U.S. dairy exports and offers impressive prospects for continued growth and expansion thanks to growing consumer demand for the type of high-quality products the U.S. produces so well. If IPEF is crafted to include meaningful market access improvements and address non-tariff barriers, then these regional trends will help drive economic benefits for American farmers, dairy manufacturers and industry workers for decades to come.”

Dozens of members of Congress from both parties have underscored to the administration the importance of securing market access gains in IPEF. On March 30, a bipartisan group of 87 House members urged the Administration to prioritize agriculture in IPEF negotiations and outlined examples of both tariff and nontariff results that should be pursued. On May 9, two dozen Senate Republicans wrote to Ambassador Tai and Secretary Vilsack to urge the inclusion of market access and enforceable commitments in IPEF.

While supporting the use of IPEF and other targeted trade tools to advance exports, USDEC and NMPF have been unyielding in their call for once again pursuing comprehensive trade agreements around the world, and especially in the Asia-Pacific region, where competitors like the EU and Oceania have been especially active.

USDEC and NMPF filed comments on the IPEF trade agreement on April 11. The filing noted, “NMPF and USDEC’s priority and strong preference is the pursuit of comprehensive trade agreements to establish lasting trade barrier reductions on both the tariff and nontariff fronts. Recognizing that the Indo-Pacific Economic Framework (IPEF) is not likely to be such an agreement, we nevertheless urge the Administration to seek to eliminate or reduce both tariff and nontariff barriers to U.S. dairy exports through the IPEF.”