Author: Theresa Sweeney

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.

NMPF Submits Joint Comments to USDA School Lunch and Breakfast Program

Posted on by Theresa Sweeney

NMPF submitted joint comments March 24 with the International Dairy Foods Association to the USDA Food and Nutrition Service urging the agency to improve nutrition security by updating school meal nutrition standards to encourage increased consumption of dairy. Doing so would be in keeping with recommendations made in the 2020-2025 Dietary Guidelines for Americans (DGA) report and by leading health organizations.

USDA announced transitional school meal nutrition standards for the next two school years that will allow schools to continue to serve low-fat flavored milk consistent with DGA recommendations while pausing overly stringent sodium reduction targets that threaten the ability of school meals professionals to serve nutrient-rich cheeses. USDA intends to craft more permanent standards for school year 2024/2025 to pave the way for healthy and nutritious school meals.

Highlighted in the comments are the nutritional benefits that the low-fat flavored milk provides students- the same 13 essential nutrients which unflavored offers. NMPF and IDFA also point out that the Dietary Guidelines for Americans say modest amounts added sugars can be added to nutrient-dense foods – including low-fat or fat-free milk – to help meet food group recommendations.

The comments also emphasize the need to work with industry before implementing further sodium reduction targets, the importance of lactose-free and reduced-lactose options for schools and dairy products at a variety of fat levels.

NMPF Releases Annual Report

Posted on by Theresa Sweeney

In keeping with tradition, NMPF released its annual report at the March board meeting March 8, chronicling the organization’s many activities and accomplishments of the past year.

“The return to more normal times – and prospects for greater prosperity on dairy farms in 2022, as years of tireless effort bear fruit in the form of higher prices and better balance sheets – animals this year’s NMPF Activities and Accomplishments,” said NMPF President and CEO in his introduction to the report.

The document organizes NMPF’s works through sections spotlighting its efforts in government relations; economics; trade; regulatory affairs; and the FARM Program, along with special member-focused initiatives.

Along with the review of the highlights of what NMPF achieved in 2021, the annual report lays out some of the challenges that lie ahead, including the development of meaningful Federal Milk Marketing Order changes and the implementation of dairy’s Net Zero Initiative. In addition to online resources, anyone interested in ordering hard copies of the annual report may contact NMPF staff at info@nmpf.org.

Surging Feed Costs Drop the February DMC Margin

Posted on by Theresa Sweeney

The second highest monthly surge in feed costs since the emergence of margin protection as the main federal safety net for farmers lowered the Dairy Margin Coverage Program margin by $0.34/cwt, to $11.20/cwt, in February.

Steady increases in feed costs for the past year and a half were kicked into a yet higher gear by the developing Russia-Ukraine situation, raising fears of reduced global grain production. The February DMC feed cost was $13.50/cwt, up $0.84/cwt from a month earlier and the highest since the introduction of margin protection in 2014. Two-thirds of this increase came from a jump in the price received by U.S. farmers for corn.

Offsetting the jump somewhat – but not enough – was an increase of the U.S. average all-milk price by $0.50/cwt to $24.70/cwt.

The dairy and grain futures markets currently indicate the DMC margin will gradually increase during the remainder of 2022.