Author: Theresa Sweeney

NMPF Statement on USDA’s Extension of 2022 DMC Signup

Posted on by Theresa Sweeney

Statement from NMPF President and CEO Jim Mulhern on USDA’s Extension of 2022 DMC Signup:

“Dairy farmers thank USDA and Secretary Vilsack for extending signup for this year’s Dairy Margin Coverage Program in order to maximize producer signup for this important program. DMC offers cost-effective margin protection for small and medium-sized producers and inexpensive catastrophic coverage for larger dairies. It provides critical protection against unforeseen market disruptions – and if the past two years have shown anything, it’s that unforeseen market disruptions can happen. We urge all producers to sign up for DMC protection, part of a suite of NMPF-supported, federally backed risk-management that also includes the Dairy-RP and LGM-Dairy programs.”

For more information on DMC and NMPF’s support for effective risk management, visit NMPF’s website here.

NMPF Commends USDA Leadership on Partnerships for Climate-Smart Commodities

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“We applaud Agriculture Secretary Tom Vilsack and his team at USDA for working to fashion the Partnerships for Climate-Smart Commodities initiative in a way that will provide significant opportunities for U.S. dairy producers of all sizes to build on their proactive sustainability work. This new initiative will support voluntary, producer-led efforts to increase on-farm adoption of climate smart agricultural technologies and practices. Such efforts are essential to help U.S. dairy farmers fulfill their environmental stewardship goals to become greenhouse gas neutral or better by 2050 and improve water quality while optimizing water use.

“NMPF looks forward to working with USDA to make this program a success —and a springboard for additional achievements.”

Progress on Ports Problems

Posted on by Theresa Sweeney

Bottlenecks at U.S. ports and their impact on agricultural exports took center stage at the National Press Club last week, with a webinar sponsored by the National Milk Producers Federation, the U.S. Dairy Export Council, and Agri-Pulse. This week’s podcast features Krysta Harden, president and CEO of USDEC, moderating a panel from the webinar featuring USDA Secretary Tom Vilsack; John Porcari, the Biden Administration’s Supply Chain Ports Envoy; Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD), co-sponsor of a House of Representatives ports bill.

Vilsack at the panel announced a new initiative adding access for U.S. agricultural exports at the Port of Oakland. Vilsack also noted the importance of the public understanding that ports backlogs don’t only affect shipments of consumer goods.

“We hope to be able to make sure that people understand this isn’t just an import issue, it’s also an export issue,” Vilsack said at the event.  “And the Department of Agriculture wants to be part of the solution.”

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 below. Please attribute information to NMPF.

NMPF Statement on Continued Allowance of Low-Fat Flavored Milk in Schools

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“Ensuring kids have access to the nutrients they need to grow and thrive is a top priority for dairy. We thank USDA for the rule’s provision that maintains schools’ ability to serve low-fat, 1% flavored milk. One percent flavored milk is not only fully consistent with the Dietary Guidelines for Americans, it is also a nutrient-dense, low-fat healthy option kids will choose to drink. I would also like to thank Representatives Joe Courtney and G.T. Thompson for their long-time leadership on this issue. We look forward to continuing to work with them, USDA, and others to help ensure everyone has access to nutritious food.”

NMPF and USDEC Statement on Senate Introduction of Ocean Shipping Reform Act

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today commended lawmakers for introducing bipartisan Senate legislation to address the shipping challenges the dairy industry and other U.S. agricultural sectors are facing. The legislation, should it become law, would help alleviate delays and disruptions at U.S. ports that have been a critical part of the export supply chain challenges plaguing U.S. exporters.

Sponsored by Senators Amy Klobuchar (D-MN) and John Thune (R-SD), the Ocean Shipping Reform Act (S. 3580) is the Senate response to the House version (HR 4996) passed by a wide bipartisan vote (364 – 60) in December. Senators Baldwin (D-WI), Hoeven (R-ND), Stabenow (D-MI), Marshall (R-KS), Peters (D-MI), Moran (R-KS), Blumenthal (D-CT), Young (R-IN), Kelly (D-AZ), Blackburn (R-TN), Booker (D-NH), and Ernst (R-IA) also joined as original cosponsors of the bill.

“The supply chain challenges that have beset American exporters pose significant difficulties for U.S. dairy producers, causing over $1.3 billion in export losses for our sector during the first three quarters of 2021,” said Jim Mulhern, president and CEO of NMPF. “We greatly appreciate the leadership of Sens. Klobuchar and Thune to introduce legislation that will encourage many of the ocean carriers to stop unfair practices. We are committed to working with the Senators and their colleagues in Congress as legislation moves forward to ensure that a final law delivers the changes our exporters most urgently need to see.”

“This Senate bill takes strong strides to address many of the challenges dairy exporters have faced, including securing export vessel bookings and combatting unfair detention and demurrage charges, vital issues to ensure our products reach their intended destinations,” said Krysta Harden, president and CEO of USDEC. “When we can’t export our products, we not only jeopardize our foreign customer relationships and markets, but we also lose value-added opportunities that create jobs and investment in the United States. We look forward to continuing to work with Senators Klobuchar and Thune, and others in Congress, to address outstanding concerns and provide for the strongest possible reforms.”

USDEC and NMPF will continue to work with the Senate to strengthen the measure further as it advances through Congress.

USDEC and NMPF, in collaboration with their member Supply Chain Working Group, have leveraged a multi-pronged approach with Congress and the administration from early 2021 to address the supply chain disruptions plaguing the dairy industry, including unprecedented fees, container availability, and lack of transparency. Foreign-owned ocean carriers’ practices have been a sizable component of those problems. The organizations have provided input into the legislative text and worked closely with the sponsors of this bill to advance Congressional efforts to update the Shipping Act to encourage more reasonable and equitable access to the export shipping supply chain.

Beyond legislation, NMPF and USDEC also continue to work with Congress and the administration to identify additional measures to ease the congestion – including calling for further expanding port hours of operation, increased data transparency, and investments in key supply chain infrastructure.

NMPF Executive Committee Member Stresses Sustainability at House Ag Hearing

Posted on by Theresa Sweeney

NMPF Board of Directors member and California dairy producer Melvin Medeiros told a House Agriculture subcommittee today that dairy farmers have made significant sustainability gains and stand ready to serve environmental solutions to make even further progress.

“U.S. dairy farmers are environmental stewards. We tend with great care to our land and water to improve the resources on our farms and ensure future generations can carry on our important work of feeding the nation and the world,” said Medeiros, a member of the Dairy Farmers of America cooperative who serves on NMPF’s Executive Committee, in a hearing of the House Agriculture Committee’s Subcommittee on Livestock and Foreign Agriculture.

“We value a proactive approach to sustainability, which can take many different forms, and we have adapted as agricultural practices and technologies have evolved and improved over time,” said Medeiros, who owns and operates a 1,600-cow dairy in Laton, CA. “Farmers place a high importance on land and water stewardship, and our family farm-owners continue to perfect these practices through sustainable innovations on the farm.”

Medeiros in his testimony at the virtual hearing cited research showing that producing a gallon of milk in 2017 required 30% less water, 21% less land, had a 19% smaller carbon footprint, and produced 20% less manure than it did in 2007. He also cited dairy’s Net Zero Initiative as an example of proactive, producer-led agricultural leadership in reducing greenhouse gas emissions.

Medeiros also asked lawmakers to support policy improvements that would assist producers in sustainability efforts, such as enhanced funding for conservation programs with greater emphasis on areas like feed and manure management, an investment tax credit to cover the upfront capital costs of digesters to help reduce methane emissions, and expedited approval of innovative animal feed additives that can significantly diminish enteric emissions. NMPF has previously hailed the landmark conservation funding increases in the Build Back Better Act and hopes that Congress will provide the funding needed to bolster these critical programs.

NMPF worked closely with Medeiros and DFA to help strongly spotlight the dairy industry’s priorities and concerns during the hearing.

“NMPF and the dairy producers it represents are grateful to the House Agriculture Committee for inviting Melvin to highlight dairy’s commitment to a more sustainable future,” said Jim Mulhern, President and CEO of NMPF. “But as he noted, improving sustainability will also require improving public policy to aid farmers in their critical stewardship mission. We stand ready to partner with Congress to get the job done.”

CWT-Assisted Dairy Export Sales Kick 2022 Off with 166 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 106 contracts in January, kicking 2022 off by adding 15 million pounds of American-type cheeses, 2.0 million pounds of whole milk powder and 1.7 million pounds of cream cheese to CWT-assisted sales in 2022. These products will go customers in Asia, Central America, the Caribbean, Middle East-North Africa and South America, and will be shipped from January 2022 through July 2022.

CWT-assisted 2022 dairy product sales contracts year-to-date total the same as above; 15 million pounds of American-type cheese, 1.7 million pounds of cream cheese and 2.0 million pounds of whole milk powder. This brings the total milk equivalent for the year to 166 million pounds on a milkfat basis. Over the last 12 months, CWT assisted sales are the equivalent of 1.444 billion pounds of milk 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.

FARM Workforce Development Updates Resources, Announces Training Dates

Posted on by Theresa Sweeney

The FARM Workforce Development Program, which encourages best practices in Human Resources (HR) and safety on U.S. dairy farms, updated its Safety Reference Manual in December to include chapters on ergonomics and noise and hearing protection. A digital version of these chapters is currently available in English, and a Spanish version will be available soon. The chapters include information and checklists anticipating and recognizing the hazards for both safety considerations.

Understanding that HR and safety management look different on every farm, the FARM Workforce Development Program provides resources to support dairy farmers’ continuous improvement. The addition of the two new issue areas meets the growing demand from dairy farmers and managers seeking straightforward, relevant information on workplace safety and health. Dairy producers are encouraged to reference the manual as a resource for a safety management program.

FARM also announced its Workforce Development Evaluator Training dates for 2022, which include both virtual and in-person offerings. These two-day trainings go through the FARM Workforce Development evaluation while integrating a review of key safety and HR topics covered in the questionnaire. If you are interested in attending a training, please email dairyfarm@nmpf.org to enroll.

Young Cooperators Advisory Council Elects Agri-Mark’s Lavigne Chair

Posted on by Theresa Sweeney

The National Young Cooperators (YC) Program Advisory Council elected Valerie Lavigne, a New York dairy farmer and Agri-Mark member, Chairperson for the 2022 program year. In this role, Lavigne will guide the program and represent its interests to the NMPF Board of Directors.

“I am honored to serve as chairperson of the National YC Program and I look forward to leading this program into its 72nd year,” Lavigne said. “The challenges ahead are significant, and I am proud to represent the unique needs of beginning farmers as they seek to establish themselves and grow within the dairy industry.”

In addition to her participation on the YC Advisory Council, Lavigne is part of NMPF’s Dairy Voice Network and serves as an officer for Agri-Mark’s YC Program. Lavigne’s Unc Brock Farm thrives on diversity with a productive mix of turkeys, meat chickens and laying hens, milking goats, horses and a 200-cow dairy herd. The farm also manages two food trucks and a catering business in Schaghticoke, New York.

Wisconsin dairy farmer Dustin Brunn, a Dairy Farmers of America member, was elected Vice Chairperson. The remainder of the 2022 YC Advisory Council includes:

  • Sid and Kristin Huls, Prairie Farms
  • Jaime Mowry and Matt Harrigan, Upstate Niagara Cooperative
  • Spencer Hurlimann, Tillamook County Creamery Association
  • Kameron Paschel, Dairy Farmers of America
  • Kip and Rochelle Siegler, Michigan Milk Producers Association
  • Ben Smith, Maryland and Virginia Milk Producers Cooperative Association
  • Jason and Tiffany Staehely, Northwest Dairy Association
  • Brittany Thurlow, Southeast Milk Inc.

The 2022 YC Advisory Council convened Jan. 25 for a virtual cheese tasting and 2022 planning meeting. The program will continue to offer free monthly webinars and plans to meet in-person throughout 2022 for its Dairy Policy and Legislative Forum, World Dairy Expo seminar and reception, and Leadership & Development Program.

Gruyere Declared a Common Cheese Name, Thwarting EU

Posted on by Theresa Sweeney

After over a year of sustained effort by NMPF and a coalition of other dairy stakeholders, the Federation celebrated a U.S. District Court ruling made public on Jan. 6 that “gruyere” is a common food name in the United States.

This victory was spearheaded by NMPF’s trade policy team, who also staffs the Consortium for Common Food Names (CCFN) and the U.S. Dairy Export Council’s (USDEC) trade policy activities, including USDEC’s work on this case. The team prevailed in securing a decision from Senior Judge T.S. Ellis III that upholds a 2020 U.S. Patent and Trademark Office’s ruling that gruyere is a generic term that cannot be trademarked as a term exclusive to French and Swiss producers.

“Not only is this a landmark victory for American dairy farmers and cheese producers who offer gruyere, this win sets a vital precedent in the much larger, ongoing battle over food names in the United States,” said Jaime Castaneda, NMPF Executive Vice President for Policy Development & Strategy and CCFN Executive Director. “The European Union has tried for years to monopolize common names such as gruyere, parmesan, bologna or chateau. This verdict validates that we’re on the right path in our fight on behalf of American food and wine producers to preserve their ability to use long-established generic names.”

The court determined the arguments of the French and Swiss associations were “insufficient and unconvincing” and the defendants presented “overwhelming evidence that cheese purchasers in the United States understand the term GRUYERE to be a generic term which refers to a type of cheese without restriction as to where that cheese is produced.” Despite this, the Swiss and French associations filed their intent to appeal the ruling on January 7. This decision however, positions U.S. dairy farmers and cheese producers well as NMPF prepares to work with CCFN and USDEC to defend this positive ruling and the powerful it sets for other generic dairy names.

December DMC Margin Comes in Just Above Payment Threshold

Posted on by Theresa Sweeney

2021 narrowly missed being the first calendar year during which the Dairy Margin Coverage program would have made payments at the maximum $9.50/cwt coverage level during every month. But a milk-price surge prevented that from happening.

The December margin under the program was $9.53/cwt, $0.39/cwt. higher than November’s margin and above the threshold needed to trigger payments at the maximum coverage level. From November to December, the all-milk price gained $1.00/cwt, to $21.80/cwt, while the DMC feed cost gained $0.61/cwt. On a per hundredweight of milk basis, half of the feed-cost increase was from higher soybean meal prices, one-third from higher corn prices, and one-sixth from higher premium alfalfa prices.

Late January dairy and grain futures continued to indicate a very small likelihood for payments during 2022; still, the generally strong milk price outlook has shown volatility in recent weeks, and grain prices have been showing renewed strength.

Signup for the 2022 DMC program is underway and will close on Feb. 18. Last year’s program has paid out nearly $1.2 billion to 18,800 enrolled operations as of Jan. 31. NMPF is urging dairy farmers who haven’t yet joined DMC to do so. NMPF has a page of resources for members who may have questions here.