Author: Theresa Sweeney

NMPF Pursues, Protects Dairy Market Access

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

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 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

Posted on by Theresa Sweeney

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.”

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.”