Author: Theresa Sweeney

Dairy Industry Commends 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) offered their support for bipartisan legislation introduced today by Representatives John Garamendi (D-CA) and Dusty Johnson (R-SD), the Ocean Shipping Reform Act.

The dairy industry, as well as other exporters, has faced substantially increased costs to ship their goods overseas, challenges obtaining containers and other equipment to deliver their goods to ports and beyond, and often incur booking cancellations or delays for vessel space. Owing in part to the Covid-19 change in American online orders, imports have affected vessel operations and container availability, diminishing export options for American dairy products. Ocean carriers have exacerbated this situation with high detention and demurrage charges, the increased shipment of empty containers back to Asia, and other unfair practices.

The Garamendi-Johnson legislation is the result of a concerted effort by NMPF and USDEC, along with other agriculture producers and exporters, to highlight the challenges U.S. exporters face with port congestion and the unfair practices and charges implemented by ocean carriers. NMPF and USDEC are urging Congress and the executive branch to take swift action to address these critical problems.

The Ocean Shipping Reform Act would provide new authority to the Federal Maritime Commission (FMC) to address unjust and unreasonable practices by ocean carriers. It would institute new penalties against ocean carriers and marine terminal operators for violations of the Shipping Act, require expanded public disclosure from the FMC and carriers, and establish a series of new regulations against unfair carrier practices.

The bill also offers new oversight of carriers’ charges and fees and will permit the FMC to dedicate collected penalties as restitution to impacted exporters. NMPF and USDEC appreciated the opportunity to work closely with both Congressional offices as the legislation was drafted and are pleased to endorse the bill.

“We are grateful for the bipartisan leadership from Congressmen Garamendi and Johnson in developing and introducing the Ocean Shipping Reform Act,” said Krysta Harden, president and CEO of USDEC. “Dairy producers and manufacturers have faced unreasonable costs and unfair practices from ocean carriers that negatively affect U.S. exports, increasing costs and putting at risk established trading relationships. This legislation will hopefully curtail those abuses and encourage better export-oriented behavior moving forward.”

“Dairy exporters have faced unfair detention and demurrage charges, unreliable and unfair booking practices and cancellations, and unwarranted challenges trying to obtain containers and other equipment,” said Jim Mulhern, president and CEO of NMPF. “While some of these challenges are due to Covid-19 changes in retail purchases, carriers have abused the situation to their advantage. Our members need the U.S. government to act, and we welcome the introduction of this legislation as an important, positive step.”

The economic effects from these challenges are significant – the average cost of transporting a container is estimated to have increased by approximately 200% over the past year, while the estimated impacts to dairy producers from just January to May 2021 include over $200 million in added shipping and related costs, approximately 10 percent of the export value during the same period.

This legislation represents an important step toward implementing both short and long-term solutions, yet NMPF and USDEC continue to urge the importance of additional measures as well to address the challenges plaguing U.S. food and agricultural exporters expeditiously and fully. The organizations urged Congress to swiftly approve the Ocean Shipping Reform Act while at the same time championing the need for additional administrative solutions that could be implemented more immediately to address the ongoing shipping crisis.

Like the Song of the Summer, Butter (and Dairy) is Hot

Posted on by Theresa Sweeney

You mean, you haven’t heard? Where have you BEEN!?!?

All over the world’s airwaves and (of course, properly socially distanced) dance floors this summer, the song “Butter” by Korean group BTS has been ubiquitous, entrenched at the top of the Billboard pop charts.

Dairy approves. It always helps an industry when its products capture an upbeat cultural moment. But honestly, in the case of butter and “Butter,” it isn’t shocking. Butter’s been on the rise for years now. It was only a matter of time before pop culture caught up with what consumers increasingly understand: nothing else is “smooth like butter.”

Some fun facts on how “hot like summer” butter really is, according to consumer data:

  • In 2020, 78 percent of U.S. households bought butter or butter blends. That’s up from 74.5 percent in 2019. It really is everywhere.
  • The average shopper bought butter or butter blends on eight more shopping trips during the year, on average, during 2020 than in 2019. Consumers gotta have it!
  • Butter and blends accounted for 5.8 percent of all dairy products sold in grocery aisles in 2020. But they had a 7.8 percent share of dairy’s overall gain, another measure of butter’s growing prominence in the aisle.
  • In raw dollars, butter sales rose by $621 million – a 19 percent increase – from 2019 to 2020.

And butter, of course, is a part of the overall dairy story. Dairy grocery-store sales rose 14 percent in 2020 from 2019, to $67 billion. And while the 2020 numbers for overall dairy per-capita consumption aren’t out yet, the trend line is clear: Dairy is winning with consumers – and not just on the radio.

So if you’re channel-surfing and a certain catchy Korean pop song gets lodged in your ear, know you’re not alone. In fact, the number of butter adherents is growing every day. That’s what quality will bring you – and that’s why we know that butter’s time in the sun will last long after the chart run is over — though we’re more than happy to be topping it.

Dairy Farmers Reinforce Trade Priorities with Ambassador Tai at Agriculture Event Hosted by Rep. DelBene

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today thanked Representative Suzan DelBene (D-WA) for hosting U.S. Trade Representative Ambassador Katherine Tai for a roundtable in Burlington, WA to discuss agriculture trade priorities. At the event, Washington farmers and food producers from various sectors, including dairy, raised the importance of implementing a trade policy that expands agricultural exports.

Washington dairy farmers Jeremy Visser and Mike Schoneveld, member-owners of USDEC and NMPF-member Northwest Dairy Association/Darigold, conveyed the importance of exports and global market access for the dairy industry. Visser and Schoneveld praised Rep. DelBene for her leadership on dairy trade issues to help expand opportunities for dairy in international markets.

“NMPF appreciates the hard work that Rep. DelBene has long undertaken to encourage trade policies that help expand American agricultural exports. Her recognition of the critical role that exports play for farmers’ incomes and the rural economy has been central to the pursuit of trade policies that help deliver value to American dairy farmers and expand jobs in America. Dairy farmers are grateful to Ambassador Tai for launching the dispute settlement case against Canada’s restrictive access to U.S. dairy and appreciate Rep. DelBene’s advocacy on this matter as well. At the same time, dairy farmers are also keen to see a proactive trade agenda of opening new markets around the world,” said Jim Mulhern, president and CEO of NMPF.

“As solid as our track record has been to date, America’s dairy industry has not reached its full trade potential on the global stage. Each dairy product that we export – whether it’s cheese, milk powder, or another essential dairy ingredient – has a powerful impact across the entire supply chain.  Expanding while also defending market share abroad is critical to U.S. dairy manufacturers and exporters, especially cheese exporters that are encountering barriers disguised by the European Union’s Geographical Indications agenda,” said Krysta Harden, president and CEO of USDEC. “We thank Rep. DelBene for hosting Ambassador Tai to hear from Washington’s agricultural sector directly on how to support that work through new trade agreements, enforcing trade agreements, and resolving trade barriers in other countries.”

NMPF, NCFC Lead Coalition Call for Climate-Smart Ag Investments

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the National Council of Farmer Cooperatives (NCFC) today led a coalition of 12 agricultural and conservation organizations on a letter advocating for significant new funding for climate-smart agricultural practices that can help farmers to build on their environmental stewardship leadership.

Congressional efforts toward infrastructure legislation provide opportunities for substantial new investments in conservation support, with more emphasis on climate-smart agricultural practices. USDA conservation financial incentives provide farmers with voluntary technical assistance to carry out numerous stewardship practices. But more can be done to enhance practices that can yield meaningful environmental benefits, such as climate-smart manure and feed management on dairy farms.

“Dairy farmers are proactive stewards of their land and water resources, but they are always seeking to innovate further. Dairy farmers in 2020 committed to become carbon-neutral or better by 2050 and maximize water quality around the country. Bolstering conservation investment and focusing on climate-smart practices better positions dairy farmers to fulfill the dairy sector’s 2050 environmental stewardship goals as envisioned in the Net Zero Initiative,” said Jim Mulhern, president and CEO of NMPF.

“America’s farmer co-ops and their producer-owners stand ready to help address the global challenge posed by climate change. Increasing conservation funding for climate-friendly farming practices is essential to giving them the tools they need to do that and to continue their stewardship of our shared natural resources,” said Chuck Conner, president and CEO of NCFC.

NMPF, NCFC, and their colleagues call in the letter for increased spending on conservation incentives, including strong technical and financial assistance, with a greater focus on climate-smart practices. The organizations also support new rural broadband resources in pending infrastructure legislation. The letter also reiterates the major concerns that many of its signers have already voiced regarding several proposed changes to tax policy that would undermine the transfer of family farms from one generation to the next.

Organizations joining NMPF and NCFC on the letter include the Agricultural Retailers Association, American Seed Trade Association, CropLife America, National Association of Conservation Districts, National Association of State Departments of Agriculture, National Association of Wheat Growers, National Farmers Union, National Potato Council, Produce Marketing Association, and U.S. Apple Association.

Dairy ‘Cliffhangers’ Need Resolution

Posted on by Theresa Sweeney

Cliffhangers are great in movies, but they’re frustrating in public policy. Congress is entering its traditional August recess with a big not-yet-done list on topics ranging from infrastructure to immigration. For the sake of dairy farmers, we’d like to see faster movement.

But hope and hard work are dairy strengths, and we at NMPF continue our efforts to make sure that at least some of these cliffhangers resolve quickly and positively. Each gain, big and small, improves livelihoods. Here are a few cliffhangers awaiting resolution as lawmakers leave Washington and head to their districts to reconnect at county fairs and town halls. (Feel free to tell them NMPF says hello.)

  • USDA’s Dairy Donation Program. This initiative provides compensation for dairy-product donations, with support retroactive to last Dec. 27. The $400 million program, part of a COVID relief package Congress approved that month, is largely ready to go, thanks to USDA’s diligence, but it’s awaiting signoff from the White House Office of Management and Budget. Final details are expected to be worked out soon, encouraging dairy community efforts to aid needy families through food banks and other distributors.
  • Direct Producer Support. USDA has indicated plans to offer details within the next few weeks on other COVID-related initiatives to provide direct relief to dairy producers. In response to NMPF entreaties, USDA is seeking to reimburse dairy producers for uncompensated losses they’ve suffered when traditional milk price relationships were turned upside down last year. Meanwhile, the Supplemental DMC program would allow producers whose annual production was below 5 million pounds in 2014, but has modestly increased, to receive corresponding payments. This not only aids small producers; it increases the amount of money available to dairy in the next farm bill. Finally, we’re seeking to correct a flaw in last year’s Coronavirus Food Assistance Program to help producers who experienced serious losses due to the pandemic but saw their assistance hindered by CFAP payment caps. NMPF has spearheaded efforts to remedy this imbalance with USDA.
  • Programs that advance dairy’s Net Zero Initiative goals. As NMPF’s Senior Vice President for Government Affairs, Paul Bleiberg, noted in a recent NMPF podcast, Congress is making progress in several areas that will help dairy reach its ambitious goal of net-zero greenhouse gas emissions by 2050. The Growing Climate Solutions Act, which passed the U.S. Senate by a 92-8 vote in June, encourages better-functioning environmental markets, which will help farmers achieve the industry’s net zero goal. Meanwhile, an investment tax-credit bill for greenhouse-gas-reducing technologies is making headway on Capitol Hill, and Congress is considering enhancing conservation policy to encourage climate-friendly agricultural practices and markets that compensate farmers for being stewardship leaders.
  • Finally, addressing dairy’s ag-labor crisis. Perpetually among the heaviest lifts in Congress, agricultural labor reform has at least some momentum this year via the Farm Workforce Modernization Act, which passed the U.S. House of Representatives in March. Senate discussions remain behind-the-scenes, but we have positioned dairy prominently in this debate via the many opportunities we’ve had to spotlight dairy’s labor needs, ranging from a Senate Judiciary Committee hearing on agricultural labor issues and public events with key federal officials to the inclusion of language expanding the current H-2A visa program to accommodate dairy in a recent appropriations bill. These are the types of smaller actions that lead to larger ones, and we will continue this drumbeat to prod Congress to get the job done.

This list, of course, isn’t comprehensive. Dairy’s activities in Washington range widely, from legislation on school milk and plant-based product labeling to forceful advocacy on trade. And other issues, especially those related to milk pricing, are sure to heat up in the months ahead, leaving no shortage of suspense in Washington.

But progress does occur, and we’re looking forward to seeing more progress soon. Washington may be taking a “break,” but we aren’t. And we look forward to helping to resolve at least a few “cliffhangers” in the weeks and months to come.

CWT-Assisted Export Dairy Sales Through July Reach Nearly 900 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 58 contracts in June adding 5.8 million pounds of American-type cheeses, 906,000 pounds of butter, 1.3 million pounds of whole milk powder and 833,000 pounds of cream cheese to CWT-assisted sales in 2021. These products will go customers in Asia, the Middle East, Oceania, Central America and South America, and will be shipped June through November.

CWT-assisted 2021 dairy product sales contracts year-to-date total 31.1 million pounds of cheese, 11.8 million pounds of butter, 5.1 million pounds of anhydrous milkfat (AMF), 8.7 million pounds of cream cheese and 18.3 million pounds of whole milk powder. This brings the total milk equivalent for the year to roughly 894 million pounds on a milkfat basis. All these products are scheduled to ship in the 2021 calendar year.

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.

2021 Scholarship Winners Announced

Posted on by Theresa Sweeney

The NMPF Scholarship Committee has selected three graduate students to receive scholarships as part of the 2021 NMPF National Dairy Leadership Scholarship Program. These students are conducting research in areas that will benefit dairy cooperatives and producers. Scholarships were awarded to:

  • Alycia Drwencke, a Ph.D. candidate in Animal Behavior at the University of California – Davis, whose research focuses on the welfare implications of caustic paste disbudding and pain mitigation for dairy calves.
  • Paulo Menta, a Ph.D. candidate in Animal Science at Texas Tech University, whose research focuses on predicting metritis cure as a path to reducing antimicrobial use in dairy cattle.
  • Kelly Mitchell, a Ph.D. candidate in Nutrition at Ohio State University studying the stimulation of microbial protein synthesis by branched volatile fatty acids.

NMPF Works to Prevent Barriers in Colombia

Posted on by Theresa Sweeney

NMPF and USDEC in July steadily worked to prevent potential trade barriers in trade with Colombia, working with governments in both countries to keep commerce open.

The Colombian Ministry of Commerce, Industry and Tourism formally announced on June 21 the launch of an investigation into imports of U.S. milk powder to determine whether U.S. product has negatively impacted Colombia’s local industry.

Sparked by a vocal domestic industry, the Colombian government’s investigation appears to be a politically driven attempt to impose additional tariffs under a safeguard mechanism. NMPF and USDEC’s trade policy team, working with USDEC regulatory staff, met with USDA’s Foreign Agricultural Service in early July to urge the U.S. government to engage the Colombian government in opposition to any potential safeguard. NMPF and USDEC have also reached out to seek the support of Colombian buyers in opposition to any safeguard.

While safeguards are allowed to be imposed under the U.S.-Colombia bilateral trade agreement if a domestic industry is “injured” from increased imports, the Colombian government must follow specific procedures in doing so. NMPF and USDEC, along with several USDEC members, submitted official comments and relevant data to the Colombian government on July 12. The next step is to await the findings and ruling on the investigation.

FARM Hosts Successful Evaluator Conference

Posted on by Theresa Sweeney

The National Dairy Farmers Assuring Responsible Management Program (FARM) hosted the annual Evaluator Conference for a second year in a virtual format July 20-21. Evaluators, participant managers and personnel joined the FARM team for two days of town hall updates, external speakers and a fully virtual cheese tasting.

To kick off the event Dr. Bickett-Weddle, Associate Director of the Center for Food Security and Public Health at Iowa State University, spoke alongside Jamie Jonker and Miquela Hanselman from NMPF to introduce FARM Biosecurity. Then, FARM Program Evaluators Janae Klingler from Maryland & Virginia Milk Producers Cooperative, Deb Gingrich form Michigan Milk Producers Association, and Mike MacHado, from Glanbia discussed engaging producers in the FARM Environmental Stewardship program area.

“Glanbia decided to roll out FARM ES to our producers in a two-pronged system,” MacHado said. “We began with a targeted approach to our more influential dairy producers so we could learn about the program while the producers were learning about the program, at the same time.”

Other strategies for producer engagement included sharing info about the evaluation in advance; talking about how FARM ES helps tell a farm’s environmental story; and timing evaluations to fit farmers’ schedules and for when data is readily available, such as tax season.

Dr. Mike Lormore, Head of the US Cattle Technical Services organization within Zoetis’ cattle business rounded out the first day’s speakers and gave an overview of the current drug residue prevention landscape in the industry and talked about the challenges facing dairy farmers in the space.

Matt Lange, a business consultant with Compeer Financial, presented on the connections between cow comfort and dairy farm profitability. Lily Edwards Callaway, Assistant Professor of Livestock Behavior and Welfare at Colorado State University and Michelle Calvo-Lorenzo, Chief Animal Welfare Officer with Elanco discussed different aspects of prioritizing dairy cattle fitness for transport.

Callaway says fitness for transport decisions can be challenging but with the right protocols in place and the right understanding of the end goal for the cull cows, the process can run smoother for the cows and the farmers who care for them.

To end the conference, Julie Sorensen Director of the Northeast Center for Occupational Health and Safety, a program of the Bassett Medical Center in Cooperstown, NY spoke about how small behavioral changes through the process of ‘nudging’ can impact safety on the dairy farm.

FARM is planning on hosting Evaluator Conference in-person next year but until then, will continue providing virtual updates – like the monthly Summer Series for State and Regional Checkoff Staff. The next one on FARM Environmental Stewardship will take place Aug. 4.

Feds Seeking Solutions to Port Problems

Posted on by Theresa Sweeney

Working with the U.S. Dairy Export Council (USDEC) and a group of agricultural organizations, NMPF is now seeing the administration and Congress seeking solutions to widespread concerns within dairy about ongoing ports congestion and unwarranted fees on exports.

President Biden issued an Executive Order, “Promoting Competition in the American Economy,” on July 15 that recognizes the need for executive branch action regarding consolidation and certain business practices in several industries, including the shipping sector. The order establishes the White House Competition Council to coordinate and advance efforts to limit overconcentration, monopolization, and unfair competition in or directly affecting the American economy. Relevant to the ocean shipping concerns, this Council will include the Secretaries of Transportation and Agriculture, as well as the chair of the Federal Maritime Commission (FMC).

The order also includes specific guidance to the FMC to “vigorously enforce the prohibition of unjust and unreasonable practices” regarding shipping fees. Additionally, it requests the FMC’s Shipper Advisory Committee to issue recommendations for improved enforcement of those and related rules, and for the FMC to consider issuing new regulations to improve export shipping conditions. It remains to be seen whether this process will be sufficient to prompt FMC to play a more proactive role in enforcing carriers’ compliance with the Shipping Act. The language regarding recommendations for improved enforcement and new regulations, however, is noteworthy and will help promote legislative options to address the challenge.

NMPF has hired a firm with expertise in maritime issues to closely monitor the implementation of this Executive Order and work with us in pressing for additional action from the administration and Congress.

On the Congressional front, NMPF, in coordination with USDEC, has provided input to proposed legislation from Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD) that extends stronger enforcement authority for the maritime commission to require ocean carriers to comply with guidelines on reasonable carrier practices. The draft legislation would force carriers to certify they are complying with commission guidelines on reasonable detention and demurrage fees, require the carriers to load product if it is at a port and does not exceed safe weight limits, and increases transparency into carrier action.

NMPF will continue to advocate for these important changes to the Shipping Act and continue to seek additional solutions to the ongoing crisis.

Dairy Pivotal to July Ag Labor Reform Progress

Posted on by Theresa Sweeney

Ag labor reform activity heated up in July, with dairy at the heart of action crucial to advancing long-term goals of greater workforce stability.

In the House of Representatives, Congressmen Henry Cuellar (D-TX) and Dan Newhouse (R-WA) introduced an amendment to the FY 2022 appropriations bill funding the Department of Homeland Security that would allow dairy producers to access the H-2A agricultural guestworker program for the fiscal year. The amendment would remove the seasonality requirement for H-2A visas for the fiscal year and allow farmers working in year-round sectors to hire H-2A workers to supplement their domestic workforce during the fiscal year that begins Oct. 1.

Although the amendment was approved by the full House Appropriations Committee on July 13, that doesn’t make the much-needed reform real, as amendments to appropriations measures that focus on immigration reform typically are removed from final packages. Still, as explained by Claudia Larson, NMPF Senior Director of Government Relations, in a July 15 “Adams on Agriculture” podcast, the amendment’s positive effects go beyond the amendment itself, as it adds momentum to our wider effort bipartisan ag labor reform efforts.

On the Senate side, the Senate Judiciary Committee held a hearing July 21 focusing on the importance of immigrant farmworkers, with testimony from USDA Secretary Tom Vilsack followed by farmers and farmworker organization representatives. Former dairy farmer Linnea Kooistra of Illinois was invited to testify by Committee Chair Richard Durbin (D-IL) on her more than 40 years of experience in the industry, sharing the urgency of dairy’s labor needs.

NMPF in a statement thanked the committee and Durbin for highlighting the importance of immigrant farmworkers to the nation’s food supply and rural communities and called on the Senate to craft its own ag labor reform measure, building on and improving upon the Farm Workforce Modernization Act that passed in the House in March.

Beyond Capitol Hill, Vilsack and Rep. Antonio Delgado (D-NY) hosted an ag roundtable in dairy-dense Cobleskill, New York on July 16, hearing from farmers and farmworkers on the unworkability of the current ag labor system, with dairy producers speaking to the special challenges the industry faces. NMPF president and CEO Jim Mulhern commended USDA and Rep. Delgado for supporting ag labor reform and organizing the roundtable meeting, noting that conversations need “to turn into action in congressional corridors so that farmers and farmworkers can benefit from a workable labor system.”

NMPF will continue its work building bipartisan support for ag workforce reform legislation that will address dairy’s workforce challenges, including protecting current workers and providing dairy meaningful access to a guestworker program that allows producers to remain competitive.