Idaho Dairy Producer Testifies Before Congress on USMCA Enforcement Importance

National Milk Producers Federation (NMPF) Executive Committee member Allan Huttema said USMCA enforcement is essential for the agreement to reach its potential for U.S. dairy farmers in testimony today at a U.S. Senate Finance Committee hearing on the impact of the U.S.-Mexico-Canada Agreement (USMCA) on U.S. dairy. Huttema operates an 800-cow dairy in Parma, Idaho and serves as chair of the Darigold and Northwest Dairy Association boards, both of which are NMPF and U.S. Dairy Export Council (USDEC) members.

“I thank Chairman Wyden and Ranking Member Crapo, my own senator, for extending me the opportunity to discuss the impact the USMCA has had on my farm and the thousands of other dairy farms throughout the country,” said Huttema. “Enforcement of trade agreements like USMCA is important to ensure we retain the ability to supply high-quality cheeses, milk powders and a variety of other dairy products to customers around the world.”

“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”

The $6.5 billion worth of U.S. dairy products exported each year underpins the economic health of dairy producers, processors, and manufacturers across the United States. American dairy exports create more than 85,000 direct jobs and have a nearly $12 billion economic impact. Whether it is Canada’s TRQ administration or Mexico’s array of new regulations intended to limit imports, NMPF and USDEC have urged the U.S. government to ensure the USMCA is fully enforced. Enforcement secures the access extended to U.S. dairy producers in the USMCA and sends a strong message to other U.S. trading partners that attempts to subvert trade obligations will not be tolerated.

“The U.S. Dairy Export Council appreciates the Senate Finance Committee and its members for hearing Allan’s testimony and answers regarding the importance of the USMCA and new trade opportunities to the U.S. dairy industry,” said Krysta Harden, President and CEO of USDEC. “USDEC agrees with Allan regarding the need to pursue greater market access opportunities for high-quality American dairy products that our international consumers demand. USMCA was an important step forward, but it’s not enough. We need new trade agreements to expand on Congress’ hard work in passing USMCA. The EU is filling the vacuum that American trade policy is leaving – an issue that Congress needs to address with additional market opportunities for U.S. exports. We appreciate Allan sharing his insight and concerns with the agreement’s implementation and its impact on dairy farmers, processors and manufacturers throughout the United States.”

Things to Keep in Mind as a Big Talk Begins

Even though dairy farming is an every-day, 24-hour profession, it isn’t often that a specific day or a specific event makes much of a difference in how it’s done.

But this week is a little different. The United Nations is holding its preliminary round of official meetings in a Food Systems Summit that’s examining the very nature of farming itself and could lead to policy changes around the world in the name of producing healthy food more sustainably and responsibly. Unsurprisingly, anti-animal-agriculture activists out in full force, making claims about dairy and its environmental impact in an attempt to monopolize headlines and win hearts and minds, even though their claims don’t hold up to closer scrutiny.

That’s unfortunate, because U.S. dairy plays an essential role in advancing sustainable food systems, and that’s’ what the world needs to know. U.S. dairy farmers use 30 percent less water, 21 percent less land and have a 19 percent smaller carbon footprint, per gallon of milk, in 2017 versus 2007. That leadership in global sustainability is becoming only more crucial as the industry continues working to reduce its environmental impact even more, from its Net Zero Initiative to become carbon-neutral (or better) by 2050 (or earlier) to everyday, on-farm stewardship.

Providing adequate nutrition to the world is too important to let a distorted debate mislead consumers about the value of U.S. dairy products. So, in the spirit of an intelligent global discussion, a few things to keep in mind as the UN begins its Summit.

  • Global diets need foods produced at the highest level of nutritional and environmental standards. U.S. dairy, along with the nation’s entire agriculture sector and food supply chain, has significantly reduced its environmental impact in recent decades while reducing waste and increasing production. And dairy’s taken an extra step, through its FARM Program, to ensure that science-based stewardship informs on-farm principles for exceptional care of animals and the planet. A nutritious diet demands a diversity of food products; a sustainable diet is one where every type of agriculture plays a positive role.
  • Technological advances play an essential role in feeding the world more sustainably. Just like in medicine, food systems perform best when they include science, innovation, and technology. Modern farming and food-production practices advance sustainable food systems while efficiently meeting nutritional needs. From methane digesters to improved feed mixes, dairy is a leader in technological adoption for good.
  • There is no “one-size-fits-all” food system. Historical, cultural and personal considerations; diverse production and manufacturing systems; differing levels of economic and industrial development. They all mean that there is no one diet, one approach to farming, or one set of public policies that universally apply to global food production or consumption. U.S. dairy itself reflects this diversity, with large, small, conventional, organic and other types all co-existing – often in the form of cooperatives that themselves hold great promise as a model for agricultural development worldwide.
  • Rules matter in food systems as trade builds healthy diets. International trade improves food security and food safety worldwide. It increases the accessibility, availability, and affordability of food. But the food system needs rules that promote those goals to work best. U.S. dairy supports and promotes rules-based trade, whether it be fair and accountable trade agreements or common-sense approaches to naming cheese.

We hope the UN finds these thoughts helpful, and we stand ready to support science-based, practical ideas from the UN that work for farmers and consumers while making the food system better. Food systems are too important to fall prey to misinformation, and a global discussion should be robust and sincere. The dairy community is looking forward to being part of the Big Talk – and to continue its contribution to global solutions.

NMPF Statement on Senate Judiciary Hearing on Essential Immigrant Farmworkers

From NMPF President and CEO Jim Mulhern:

“NMPF thanks the Senate Judiciary Committee and its chairman, Sen. Dick Durbin (D-IL) for holding today’s hearing highlighting the importance of immigrant farmworkers to our nation’s food supply and rural communities. We are also grateful to Linnea Kooistra, formerly an Illinois dairy farmer for over 40 years, for testifying at the hearing and giving voice to this critical issue for dairy.

“Immigrant employees are vital to the dairy industry, with an estimated 79% of the U.S. milk supply produced on farms that employ immigrant workers. Dairy farmers know firsthand of dedicated and skilled teams that are led by and include immigrants; most producers also can speak to the challenges farms and rural communities face due to uncertainty surrounding the farm workforce.

“That’s why NMPF has been a leader in agricultural workforce reform efforts that address two areas of reform that are essential to solve America’s ag labor crisis. First: We must provide an earned legal protection for our current workers and their families. Second: We must reform the agricultural guestworker visa program so dairy and other year-round industries can use it to supplement the domestic workforce when needed.

“Dairy farmers currently cannot use the H-2A guestworker program because they produce milk year-round. Providing an earned legal protection for current workers is crucial, but it narrowly addresses only one aspect of the crisis. We must also reform the ag labor system so dairy farmers can hire legal guestworkers and do not remain trapped in a still-broken ag labor system moving forward. Both features must be present in any real solution.

“NMPF again thanks the Senate Judiciary Committee for today’s hearing and urges the Senate to seize the present opportunity to craft its own ag workforce reform bill that both provides legal protections to our current workers and restructures H-2A. Do not miss this chance for a real solution that helps farmers and farmworkers and supports them as they continue their crucial work of feeding our nation and the world.”

Prospects for Policies Supporting Net-Zero Goals Looking Up, NMPF’s Bleiberg Says

From incentives for carbon markets to new conservation initiatives, the policies that will support dairy’s Net Zero Initiative continue to take shape, says Paul Bleiberg, NMPF’s Senior Vice President for Government Relations, in a Dairy Defined podcast released today.

The Growing Climate Solutions Act, which passed the U.S. Senate by a 92-8 vote in June, “is very helpful to our overall efforts because environmental markets are a key tool in the toolbox of the Net Zero Initiative,” Bleiberg said. Meanwhile, an investment tax-credit bill for greenhouse-gas-reducing technologies “has started to make some real headway,” he said. And conservation programs built around climate-friendly agricultural practices “may be able to encompass some of the work that we’re doing and help us build on it.”

The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. A transcript is also available. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

Dairy Farmers Welcome Ambassador Tai to Trade Forum Hosted by Rep. Kind

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today commended Representative Ron Kind (D-WI) and U.S. Trade Representative Ambassador Katherine Tai for hosting a trade forum at a Wisconsin dairy farm. Several dairy farmers had the opportunity to voice their concerns and priorities for dairy exports with Ambassador Tai and highlight the impact of trade policy on American dairy producers.

USDEC and NMPF members participating in the event emphasized the need for greater market access for dairy products and the impediments trade barriers pose to greater international trade. At the event, dairy farmers belonging to NMPF and USDEC members Associated Milk Producers, Inc., Dairy Farmers of America, FarmFirst, and Organic Valley, among others, praised Congressman Kind for his leadership as he continues to encourage the Biden Administration to work toward greater opportunities in international markets. The event was hosted by Hamburg Hills Farm, an Organic Valley member located in Stoddard, Wisconsin.

“On behalf of dairy producers and their cooperatives, NMPF thanks Congressman Kind for his ongoing advocacy in securing trade opportunities for dairy farmers in Wisconsin and nationwide. We’re grateful that Ambassador Tai and hardworking USTR staff are pursuing a dispute settlement case to finally secure Canadian market access granted under USMCA,” said Jim Mulhern, President and CEO of NMPF. “We look forward to working with Ambassador Tai, Representative Kind, and their staff to reduce foreign trade barriers through country-to-country dialogues and new trade agreements.”

“Obtaining and expanding market share abroad is critical to U.S. dairy manufacturers and exporters. The global dairy industry is more competitive than ever, so we greatly appreciate Congressman Kind hosting Ambassador Tai on a dairy to provide tangible examples of why the U.S. dairy value chain depends on international trade,” said Krysta Harden, President and CEO of USDEC. “We’re thrilled the ambassador could visit the farm to see for herself how America’s dairy farmers are producing for the global marketplace. We appreciate both of their personal efforts to ensure Canada meets its tariff-rate quota obligations under the U.S.-Mexico-Canada Agreement (USMCA).”

Dairy Farmers Spotlight Ag Labor Reform Needs in Roundtable with Vilsack, Delgado

Dairy farmers are urging the government to address dairy’s acute labor shortages — and the need for the U.S. Senate to craft a counterpart to the House-passed bipartisan Farm Workforce Modernization Act – in meetings today with Agriculture Secretary Tom Vilsack and Rep. Antonio Delgado (D-NY), culminating in a roundtable discussion at SUNY-Cobleskill in Cobleskill, New York.

Vilsack and Delgado will talk with farmers and farmworkers to address the unworkability of current farm-labor policies. Dairy faces special challenges as a year-round, around-the-clock agricultural sector because the current rules of the H-2A guestworker visa program limits its use to only the temporary and seasonal labor needs of agricultural employers.

“Unfortunately, the Department of Labor hasn’t made available the current H-2A program for a commodity that ‘harvests’ its product multiple times a day, every day,” said Jim Mulhern, president and CEO of the National Milk Producers Federation in a statement before the event. “We commend USDA and Rep. Delgado for supporting ag labor reform legislation and organizing this important discussion.”

NMPF supports the Farm Workforce Modernization Act as a vehicle for additional policy improvements and to prod Senate legislation that can be reconciled into a final bill that can pass both houses of Congress. Delgado was an early cosponsor of the legislation, which passed the House of Representatives by a solid bipartisan margin in 2019 and again in March. To build momentum for a solution, Vilsack hosted a bipartisan roundtable last month with key Senate negotiators and agricultural stakeholders, including NMPF.

“Without Senate action, the hard-won progress lawmakers have made on ag-labor issues won’t bring the solutions farmers need,” he said. “We need this conversation to turn into action in congressional corridors so that farmers and farmworkers can benefit from a workable labor system.”

NMPF Statement on Appropriations Language Allowing Dairy Farmer Participation in H-2A Program

From NMPF President and CEO Jim Mulhern:

“NMPF thanks Reps. Henry Cuellar (D-TX) and Dan Newhouse (R-WA) for their tireless efforts on behalf of America’s dairy producers to include year-round employees on farms in the H-2A farm worker visa program. We urge Congress not to delay providing dairy farmers with access to the H-2A program during a time of critical labor needs.

“Dairy farmers largely have not been able to use H-2A visas because the current program is limited only to the temporary and seasonal labor needs of agricultural employers. The current H-2A program simply isn’t an option for a commodity that ‘harvests’ its product multiple times a day, every day.

“The Cuellar-Newhouse bipartisan amendment to this year’s Homeland Security Appropriations bill would allow farm employers to use the H-2A visa program to hire foreign workers, regardless of whether those employees are engaged in temporary or seasonal work. Under this amendment, dairy farmers and other year-round producers could use the H-2A program to supplement their domestic workforce.

“Beyond just providing dairy temporary access to the H-2A program, the measure is important because we must continue to build momentum for ag labor reform as we await a Senate measure that carries forward and improves upon the Farm Workforce Modernization Act, which the House approved in a bipartisan vote in March.

“Recent history shows bipartisan support for farm workforce legislation that addresses the needs of producers and farmworkers. It is critical that the government continues to build on these bipartisan efforts to create a system that provides secure, legal employment. We thank lawmakers for their efforts toward achieving this goal.”

Yogurt Rule May Aid Consumer Win on Fake Milk – If FDA Follows Through

It’s a shame to even have to say this, but it’s 2021, so just to be clear: Logic matters. Consistency matters. That’s why a new FDA rule that defines what is and isn’t yogurt has much broader, and potentially very positive, implications in one of the most contested consumer issues of the day – the proper labeling of milk and dairy products.

Background: FDA last month issued a final rule taking effect today that amends yogurt’s standard of identity – the legal definition of what a food is – by modernizing rules to fit changes in yogurt-making technology. It also revokes the previous individual standards of identity for low-fat yogurt and nonfat yogurt. Industry compliance is expected by Jan. 1, 2024.

The new rule is rooted in a response to a citizen’s petition from the National Yogurt Association filed in February 2000. The slow pace isn’t unusual, unfortunately, and undoubtedly there will be quibbles with some details of the 22-page document. There always are. But FDA’s decision is important: It defends principles that support transparent food labeling and protects consumers. And those principles matter well beyond yogurt, with the FDA promising a review of a much larger issue –  the labeling of plant-based milk alternatives – by next June.

The rule offers a robust defense of standards of identity, which ensure that consumers purchase products that meet their expectations.  As FDA writes, “Any food that purports to be or is represented as yogurt, must conform to the definition standard of identity for yogurt.” So, what’s in yogurt? “Cream, milk, partially skimmed milk, skim milk, and the reconstituted versions of these ingredients may be used alone or in combination as the basic dairy ingredients in yogurt manufacture,” the rule states. And how is yogurt made? “Yogurt is produced by culturing the basic dairy ingredients and any optional dairy ingredients with a characterizing lactic acid-producing bacterial culture.”

In other words: How a food is made, and where it comes from, matters.

The rule also reaffirms the role of nutrition quality in meeting consumer expectations. Discussion of the “nutritional or functional purposes” of ingredients permeates the document, and while the rule allows some flexibility on the need to fortify with Vitamin A in lower-fat yogurts, it restates the basic, crucial role that nutritional value plays in a product’s definition, as evidenced by FDA’s emphasis on the preservation of protein content and nutritional quality in the product’s formulation.

In other words: Whether a food has the nutritional value expected of that food, matters.

So, what could a rule about yogurt mean for the decades-old debate over plant-based imposters? The FDA doesn’t address that issue directly. But it’s clear that non-dairy products that call themselves yogurt don’t fit the identity standard, and a look at nutrition labels shows nothing resembling equivalence between real dairy yogurt and plant-based pretenders.

The basic principles are clear. That makes the implications strong.

If standards of identity matter as much as FDA says it does, then the phrase “the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows” is critical – because that’s the standard of identity for milk, which FDA is pledged to enforce. And if nutritional integrity is as important to a food’s definition as the yogurt rule says it is, then beverages that are wildly deficient in protein and other nutrients compared to milk, shouldn’t call themselves “milk.”

That’s good news for consumers. But whether encouraging restatements of principles translate into action will depend on how important logic and consistency turn out to be.

If they are, all FDA has to do is 1. Follow its logic and 2. Be consistent (and of course, enforce. None of today’s proliferation of imposters would be a problem if only FDA enforced existing standards of identity and labeling regulations). With that, a path forward on fake milk becomes clear, one in which dairy-product integrity is protected and consumers aren’t led to believe that certain products may provide value that they don’t because of their labeling. Just like the National Yogurt Association – whose petition outlasted its own existence — we have a citizen’s petition too, filed in 2019. With the yogurt rule complete, our petition should be answerable in much less than 21 years.

FDA has shown its hand in a rule that will help consumers make informed decisions. Extending the logic and consistency of the new yogurt standard to labeling of products using terms like milk, cheese and butter – and then enforcing them — is long overdue.

The yogurt rule shows that reason can still win out, with standards of identity and nutritional value protected. That matters. A lot.

CWT-assisted export dairy sales in June reach nearly ten million pounds

CWT member cooperatives secured 59 contracts in June adding 7.4 million pounds of American-type cheeses, 749,572 pounds of butter, 436,515 pounds of whole milk powder, 1.1 million pounds of cream cheese, and 231,485 pounds of anhydrous milkfat to CWT-assisted sales in 2021. These products will go customers in Asia, the Middle East, Oceania, Africa and South America, and will be shipped June through November.

CWT-assisted 2021 dairy product sales contracts year-to-date total 25.5 million pounds of cheese, 11.2 million pounds of butter, 7.3 million pounds of anhydrous milkfat (AMF), 7.9 million pounds of cream cheese and 17.2 million pounds of whole milk powder. This brings the total milk equivalent for the year to roughly 873 million pounds on a milkfat basis. All these products are scheduled to ship in the first eleven months of 2021.

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.

All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available at http://www.cwt.coop/membership.

Summer Series for State and Regional Checkoff Staff to Begin in July

The FARM Program will host a series of monthly webinars for state and regional checkoff staff that will run July 7-Oct. 6. The webinars will offer attendees an opportunity to learn about the program and each specific program area. The FARM Virtual Evaluator Conference will also take place this month on July 20-21.