Author: Theresa Sweeney

Dairy Industry Urges USTR to Initiate Dispute Settlement Case to Address Canadian TRQ Allocations

Posted on by Theresa Sweeney

A group of 68 dairy companies and associations urged U.S. Trade Representative Katherine Tai to initiate a dispute settlement case with the Canadian government over its dairy tariff-rate quota (TRQ) administration if ongoing consultations and a USMCA Free Trade Commission meeting do not result in immediate resolution.

The Office of the U.S. Trade Representative (USTR) started consultations in December 2020 with Canada over its TRQ policies as part of its obligations under the U.S.-Mexico-Canada Agreement (USMCA), a step that the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) strongly supported. Several months post-consultations, it is not readily apparent that progress has been made on resolving Canada’s circumvention of its trade obligations. In a letter sent to Ambassador Tai, the U.S. dairy industry urged USTR to establish a Dispute Settlement Panel in the event there is not an immediate, positive resolution in the consultations.

“The U.S. dairy industry proudly worked with USTR and members of Congress on a bicameral and bipartisan basis during the 116th Congress to secure strong, enforceable dairy provisions in the USMCA. Even while we knew it was important to secure strong text in the agreement, we also knew it was going to be just as critical for the provisions to be properly implemented and enforced. This is why we need USTR to take bold action to ensure the U.S. dairy industry fully benefits from the hard-fought wins included in the USMCA,” said Krysta Harden, President and CEO of USDEC.

USDEC and NMPF have closely monitored Canada’s actions regarding its USMCA commitments even prior to the agreement’s entering into force. Canada’s TRQ allocations are designed to discourage the full utilization and value of the TRQs, limiting U.S. dairy-product imports. Specifically, Canada is reserving the bulk of quota access to Canadian processors and is not providing fair or equitable procedures in administering the TRQs.

“America’s dairy farmers appreciated USTR initiating consultations with Canada on its dairy TRQ allocation measures and the decision to hold USMCA Free Trade Commission discussions to pursue reforms. But Canada has always been obstinate on dairy, and at this stage it is increasingly clear that further action is needed to ensure a fair and transparent enforcement of USMCA. This is why America’s dairy farmers are asking USTR to initiate a dispute settlement case should talks with Canada this week fail to yield a full resolution,” said Jim Mulhern, president and CEO of NMPF. “We look forward to working closely with the administration as they pursue every option available to them to ensure America’s dairy farmers fully benefit from the USMCA’s market access provisions.”

NMPF Statement on the Confirmation of Dr. Jewel Bronaugh as Deputy Agriculture Secretary

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“Dairy farmers and their cooperatives congratulate Dr. Jewel Bronaugh on her confirmation as U.S. Deputy Secretary of Agriculture and stand ready to work with her as she tackles the many pressing issues facing agriculture and rural communities today. Her depth of experience with all types of farms, and all types of communities, make her an ideal occupant of this important position, and her deep understanding of food and farm policy will benefit the entire nation.

“We look forward to joining with her in efforts that will improve and aid agriculture and all who benefit from its products. We are excited to discuss many of our own industry-leading efforts with her, such as the dairy industry’s Net Zero Initiative and sustainability goals, and work toward solutions that will only enhance dairy and U.S. agriculture’s global leadership in the years to come.”

Farmers at the Heart of Nation’s Solutions, Leader of Black Farmers Group Says

Posted on by Theresa Sweeney

From building small communities to solving environmental issues, farmers stand at the center of solutions to national problems, says Cornelius Blanding, executive director of the Federation of Southern Cooperatives Land Assistance Fund, a Georgia-based non-profit cooperative association of Black farmers, landowners, and cooperatives.

“Farmers are at the heart of the solutions of our country,” said Blanding in a Dairy Defined podcast episode released today. “They’re probably one of the most important pieces of our nation, and it’s about time for us as a country to understand that.”

Blanding in the podcast discusses how Black farmers are working to overcome the legacies of racism, how that cause was advanced through Congress’s recent coronavirus stimulus bill, and how Black farmer gains create opportunities to advance family-farm interests across agriculture. The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

NMPF’s Mulhern Discusses Class I Mover Reform

Posted on by Theresa Sweeney

President & CEO Jim Mulhern discusses NMPF’s Federal Milk Marketing Order proposal to restore fairness for farmers in the Class I fluid milk price mover on the Adams on Agriculture podcast. The current mover, adopted in the 2018 farm bill, was intended to be revenue neutral while facilitating increased price risk management by fluid milk bottlers. But the new Class I mover contributed to disorderly marketing conditions last year during the height of the COVID-19 pandemic and cost dairy farmers over $725 million in lost income.

CWT-Assisted Dairy Product Export Sales Top 10 Million Pounds in April

Posted on by Theresa Sweeney

In April, CWT members secured 46 contracts to sell 2.7 million pounds of American-type cheese, 1.1 million pounds of butter, 3.4 million pounds of anhydrous milkfat (AMF), 2.3 million pounds of whole milk powder (WMP), and 1.1 million pounds of cream cheese. These products are going to customers in Asia, Central and South America, the Middle East, North Africa, and Oceania. They will be shipped April through September 2021.

These sales bring the total 2021 CWT-assisted dairy product exports to 14.5 million pounds of cheese, 9.9 million pounds of butter, 7.1 million pounds of anhydrous milkfat, 15.7 million pounds of whole milk powder, and 5.5 million pounds of cream cheese. Member cooperatives have captured sales contracts that will move overseas the equivalent of 706.8 million pounds of milk in 2021.

As dairy farmers work to recover from a challenging 2020, doing what is necessary to strengthen and maintain milk prices is a must. The key for both dairy farmers and dairy cooperatives in 2021 is dairy exports. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome certain disadvantages such as the domestic/global price gap and shipping costs.

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 www.cwt.coop/membership.

FARM, NMPF Recognize Dairy Leadership on Earth Day

Posted on by Theresa Sweeney

The FARM Program and NMPF collaborated across the dairy community to recognize Earth Day on April 22, using it as an opportunity to highlight their efforts and goals across the sector in conversations about climate, the environment and sustainability throughout the month. In a  joint communications toolkit for members, messaging and social media was provided to amplify the spotlight on:

  • The FARM Environmental Stewardship program area
  • How farmers are prioritizing on-farm sustainability
  • Recent House and Senate Agriculture Committee testimony about the industry’s proactive sustainability work and how congress can support these efforts
  • NMPF’s role in the Food and Agriculture Climate Alliance

Nicole Ayache, senior director of sustainability initiatives for NMPF, discussed how the FARM Program has led achievements for the entire sector as dairy strives to achieve ambitious sustainability and emissions goals on the April 12 Dairy Defined podcast and in an article for Hoard’s Dairyman, published on April 19.  The Earth Day theme was continued in a FARM Quick Convos on Net Zero, a Farmer Focus, and another Dairy Defined podcast featuring Krista Hardin, president and CEO of USDEC.

The FARM Program and NMPF jointly promoted U.S. dairy as part of a sustainable, equitable and secure food system to UN Food Systems Summit audiences.

FARM Program Partners with Cargill, Others for Safety and Calf Care

Posted on by Theresa Sweeney

The FARM Program partnered with Cargill to launch the Actionable Safety Review on April 1.

The safety review is a new online tool that enables dairy farmers to identify and review opportunities to improve safety on the farm. Farmers filling it out are prompted to consider their own operations and make note of their approach to specific safety topics. The tool offers recommendations and resources for farmers to follow-up on those topics. Dairy farmers who complete the safety review will receive a copy of their responses to serve as a list of farm-specific action items designed to keep employees, farmers, and families safe on the dairy.

May’s focus will be on the Calf Care & Quality Assurance (CCQA) program. CCQA is the first, collaborative educational tool that provides guidelines for calf raisers. The CCQA program is jointly led by the FARM program and NCBA’s Beef Quality Assurance (BQA) program, funded by the beef checkoff. Support was also provided by the Dairy Calf and Heifer Association, and the beef checkoff-funded Veal Quality Assurance (VQA) program.

A reference manual sets the foundation for the CCQA program, which has been developed with the understanding of the diversity of calf-raising enterprises and is science- and outcomes-based while maintaining facility type and size neutrality. While the practices identified in the manual are not the only practices that can meet the desired outcomes, the program provides a framework that will serve as great resource for anyone working in the calf-raising industry.

In addition to the manual, the CCQA program will roll out producer-focused training modules that will certify producers in the principles of excellent calf care highlighted throughout the manual later in 2021.

NMPF Voices Opposition to Raw Milk Bills in New Hampshire and Montana

Posted on by Theresa Sweeney

NMPF joined with the International Dairy Foods Association (IDFA) to advise Montana and New Hampshire’s state legislatures that we oppose the passage of raw milk bills that would expand the sale of raw milk and raw milk products within their states.

In  letters submitted to the states on April 8, our two organizations emphasized the public health risks associated with expanding the sale and consumption of raw milk and raw milk products. The letters state, “while choice is an important value, it should not pre-empt consumers’ well-being. To expand the sale of raw milk and raw milk products is an unnecessary risk to consumer safety and public health.”

Montana SB 199, titled Provide for the Montana Local Food Choice Act, looks to allow for the sale of unpasteurized milk and cream from small dairies. New Hampshire HB 95 expands the sale of unpasteurized milk products from farmer direct to consumer to include ice cream and yogurt sold in no larger than 6 fluid ounce containers.  Montana SB 199 has been transmitted to the Governor to be signed or vetoed. New Hampshire HB 99 has been re-referred to committee by the Senate. We will continue to monitor the situation.

NMPF Comments on NRCS Conservation Practice Standards

Posted on by Theresa Sweeney

NMPF submitted two sets of comments to USDA in April on its Natural Resource Conservation Service (NRCS) Conservation Practice Standards.

USDA-NRCS requested comments to revise the conservation practice standards in the National Handbook of Conservation Practices (NHCP). The first comments, submitted April 8 jointly with Newtrient LLC, were grounded in updating the conservation practice standards to make them more useful for dairy farmers as they work toward the 2050 US Dairy sustainability goals of being carbon neutral or better and improving water quality. The comments focused on fourteen different conservation practice standards ranging from air filtration & scrubbing (Code 371) to wastewater treatment – milk house (Code 627) with suggested improvements making them more useful for dairy farmers.

NMPF joined a coalition of seventeen organizations in a second set of comments April 15. This large coalition submitting comments to specifically address the USDA NRCS on Conservation Practice Standard on Cover Crops (Code 340).  While the coalition generally supported the revised Cover Crops standard, the coalition expressed serious concerns with the proposed change to disallow mechanical harvesting of cover crops for forage. At the core of the coalition concerns was the belief that this language will be a very serious disincentive to grower adoption of cover crops and as such will unnecessarily result in a net loss of working lands’ conservation benefits.

Port Congestion Problems Continue for U.S. Dairy Exporters

Posted on by Theresa Sweeney

NMPF, working together with the U.S. Dairy Export Council, is continuing to actively raise the visibility of extensive port-related problems affecting exports of U.S. dairy products with federal officials while engaging on trying to find solutions. These challenges have included backlogs, delays, lack of storage for delayed shipments, and increased costs that have bedeviled shippers and impeded exports since last Fall.

NMPF staff met with key staff of the Senate Committee on Commerce, Science and Transportation on April 13 to discuss the challenges and ways in which Congress could help. Staff also participated in a meeting on April 19 convened with senior officials at the USDA and the U.S. Department of Transportation, which provided NMPF and groups representing other U.S. agricultural sectors the opportunity to outline problems facing U.S. exporters and press for faster resolutions.

On April 27, NMPF and several of its members joined together in sending a letter signed by almost 300 companies and organizations to the Department of Transportation urging further steps on this issue to help provide relief to U.S. agricultural exporters. NMPF has also been actively working to urge Congressional support for language in the Transportation Appropriations bill that would provide greater direction to the Federal Maritime Commission regarding its analysis of what measures could be taken to help alleviate the export crisis.

NMPF asks for help from the membership to share any information that quantifies the impact of the port problems. Questions and information can be directed to Tony Rice (trice@nmpf.org).

NMPF Tackles EU Certification Issues

Posted on by Theresa Sweeney

The European Commission announced proposed new certification requirements in July 2020 for a wide range of food products, including dairy, adding confusing and vague requirements that threaten to upend U.S.-EU dairy trade if left unremedied.

Since then, NMPF has been working closely with the U.S. Dairy Export Council on extensive efforts to partner with the U.S. government in seeking a successful resolution that rejects unreasonable EU documentation requests and preserves access to the EU market. On April 16, NMPF and USDEC sent a letter to USDA Secretary Vilsack and USTR Tai asking for enhanced engagement to secure a workable solution, underscoring the critical importance of preserving access to the EU market for U.S. dairy products and processed products that contain dairy.

Two sets of new requirements have posed concerns: revised import certificates for dairy products, and new certification requirements and importer attestation mandates for “composite products,” which are processed food products that contain ingredients both of animal and plant origin.

One earlier result of these efforts was the European Commission’s decision to delay the implementation date for use of both dairy and composite product certificates from April 21 to Aug. 20. This extension provided more time for U.S. government negotiations with the EU to address the remaining issues. The EU on April 19 also issued an important clarification for the new importer attestations for composite products to now allow for the use of pasteurized dairy ingredients from the United States in the production of those products. NMPF believes this should allow U.S. exports of these products to continue. Work continues on the remaining product areas.

NMPF and USDEC continue to hold regular discussions with federal officials about these issues to ensure that dairy certificates remain a priority for resolution in the U.S.  government’s engagement with the EU.

Bipartisan DAIRY PRIDE Act May Further FDA Enforcement Progress

Posted on by Theresa Sweeney

Representatives Peter Welch (D-VT) and Mike Simpson (R-ID) and Senators Tammy Baldwin (D-WI) and James Risch (R-ID) on April 22 reintroduced the bipartisan DAIRY PRIDE Act. The bill would bring clear, accurate labeling information for consumers and end harmful mislabeling of dairy foods by peddlers of plant-based products by requiring the U.S. Food and Drug Administration (FDA) to enforce its own existing standards of identity on imitation dairy products after decades of inaction.

NMPF President and CEO Jim Mulhern thanked Welch and Simpson and Baldwin and Risch for reintroducing the measure and their ongoing leadership working to ensure FDA does its job. NMPF has been working for decades for FDA to enforce dairy standards of identity, as plant-based imitators have a long history of flouting these labeling laws to piggyback on dairy’s good name and reputation and benefiting from the “halo of health” associated with nutritious, healthy dairy products.

“FDA is responsible for the integrity and safety of our nation’s food, medicine, and medical devices, and it’s crucial that it enforce its own standards and requirements,” Mulhern said. “Without enforcement, we are left open to the potential for questionable products, deceptive practices, and, in cases such as mislabeled plant-based products that masquerade as having nutritional benefits similar to dairy’s, negative effects to our health.”

Medical groups including the American Academy of Pediatrics are voicing concerns over the harm lack of enforcement is having on public health as misinformed consumers unintentionally choose less nutritious products for themselves and their families.

Congress has also shown a growing concern for FDA’s failure to enforce. The House held a hearing in January 2020 on the agency’s lack of enforcement, during which NMPF Executive Vice President Tom Balmer testified on the need to enforce dairy standards of identity. In December 2020 Congress included in the report accompanying the FDA funding bill for FY 2021 a statement of concern and directive to FDA regarding enforcing standards of identity for dairy products.

NMPF will continue working on FDA enforcement, building on this progress made in 2020, with Mulhern seeing the reintroduction of the DAIRY PRIDE Act as “helping NMPF and consumers continue to move forward toward solving this critical public health and fairness issue.”