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Dairy Nourishes Africa, Building an Industry and Resilience

Posted on by Theresa Sweeney

With the UN Food Systems Summit this week and World Food Day next month, dairy’s global leadership in building sustainable, robust food chains are in the spotlight. Dairy Nourishes Africa, an initiative from Global Dairy Platform, is developing dairy’s potential in East Africa, where nutrition needs are great and dairy provides an economically promising, sustainable solution.

“It’s an opportunity for U.S. dairy to build a business base in one of the fastest-growing regions in the world over the next 20, 30 years,” said Andrei Mikhalevsky, a former CEO of California Dairies Inc. and an advisor on the DNA Project. “And it gives the US dairy industry a real opportunity to make a difference in this part of the world and to do good, starting with the work in Tanzania.”

The podcast focuses on one project, a small dairy processor in the Southern Highlands of Tanzania called Sebadom founded by entrepreneur Anaty Kokushubira Kombeson and her mother. Working with DNA, the processor is supplying local schools and working with smallholder farmers to supply fresh milk while creating jobs.

“We started this company when I had my kid, she’s six years now. When she was about to start consuming dairy products, it was a bit of a challenge to get the quality milk for her,” she said. “Because of that challenge that we faced, that is where Sebadom came in.”

Also discussing DNA and dairy’s promise are Jay Waldvogel, a board member of Global Dairy Platform and Senior Vice President of Strategy and International Development for Dairy Farmers of America, and Dai Harvey, DNA’s Regional Technical Director with Land O’Lakes Venture37, the project’s implementing partner.

To learn more about Global Dairy Platform and the DNA effort, visit globaldairyplatform.com. People interested in contributing to the effort can write the program at dna@globaldairyplatform.com. And Anaty has an Instagram page, be sure to follow it at instagram.com/sebadomyoghurt. 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. Please attribute information to NMPF.

NMPF Cooperative Leader Spotlights Need for Class I Pricing Changes at Senate Hearing

Posted on by Theresa Sweeney

Congress must do additional work to ensure dairy farmers are fairly compensated for losses rooted in a change to the pricing formula for Class I milk, a leader of Agri-Mark Cooperative and a member of NMPF’s Economic Policy Committee said today in a hearing called by Senate Agriculture Committee dairy subcommittee chair Sen. Kirsten Gillibrand (D-NY).

The hearing focused on issues related to milk pricing and the Federal Milk Marketing Order system, which has shown strains during the COVID-19 pandemic due in large part to flaws in the current Class I mover and its ripple effects through dairy revenues.  The pandemic “has created an even greater urgency to revisit orders,” said Catherine H. de Ronde, vice president for economic and legislative affairs for Agri-Mark, based in Andover, Massachusetts, in her testimony. “Negative PPDs had milk checks looking incredibly bizarre, de-pooling at a level never-before seen became a new phenomenon for many. The change to the underlying Class I mover was a key catalyst of these outcomes.”

The 2018 Farm Bill changed the Class I mover, which determines the price of fluid milk under the Federal Milk Marketing Order system, at the urging of dairy processors who sought greater price predictability. The change contributed to substantial market volatility last year and has led to an estimated $750 million in losses for farmers compared to the previous Class I formula. Without a fix, dairy farmers will permanently bear unfair and unnecessary price risk compared to processors during times of unusual market volatility.

USDA plans to mitigate last year’s losses somewhat through its Pandemic Market Volatility Assistance Program, which will reimburse farmers for $350 million of those losses. But that initiative distributes payments unevenly, requiring further remedies to equitably fill the gap for producers of all sizes.

“The National Milk Producers Federation appreciates the work of Senators Gillibrand and Hyde-Smith for today’s initial examination of crucial milk pricing issues,” said Jim Mulhern, president and CEO of NMPF. “Dairy farmers have done their best to navigate this ongoing crisis, aided in part by necessary disaster assistance. But without equitable assistance, many family dairy farmers across the nation will needlessly struggle from the effects of the Class I mover change they’ve already felt. And without a change in the mover, we can only expect these struggles will recur.”

Gillibrand leads the Subcommittee on Livestock, Dairy, Poultry, Local Food Systems, and Food Safety and Security. Sen. Cindy Hyde-Smith (R-MS) serves as the subcommittee’s Ranking Member.

U.S. Dairy Industry Supports Nomination of Elaine Trevino for Chief Agricultural Negotiator

Posted on by Alan Bjerga

On behalf of America’s dairy farmers, exporters and manufacturers, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commend President Biden’s selection of Elaine Trevino as the Chief Agricultural Negotiator for the Office of the U.S. Trade Representative.

“The role of Chief Agricultural Negotiator is essential in pursuing positive trade policy results for U.S. dairy farmers and in expanding overseas markets for dairy products,” said Jim Mulhern, president and CEO of NMPF. “NMPF is pleased that in choosing Ms. Trevino to nominate for this position, President Biden has selected someone with the right background and clear understanding of trade’s importance to American agriculture, both of which are vital to success in this position. I’ve been fortunate to serve on the president’s Agricultural Policy Advisory Committee with Ms. Trevino and hope to see swift confirmation of her nomination by the Senate so she can commence the work that’s so key for farmers across the country.”

“U.S. dairy farmers, exporters and manufacturers have been eagerly awaiting the nomination of a Chief Agricultural Negotiator given the sizable role that trade plays in providing a home for the equivalent of more than a day’s worth of U.S. milk production each week,” said Krysta Harden, president and CEO of USDEC. “The world needs U.S. dairy and U.S. dairy needs the world. Our industry is eager for additional market opportunities to help us create more jobs here in America as we meet that demand with our high-quality, sustainably produced products. We urge the Senate to move swiftly to confirm Ms. Trevino and look forward to working closely with her to expand markets around the world.”

Dairy Associations Urge Additional White House Action on Ports Crisis

Posted on by Alan Bjerga

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) joined several other organizations urging the Biden administration to take additional steps to alleviate the ongoing ports crisis in a letter sent today to the White House from a coalition of 77 agriculture and food associations.

Since early 2021, dairy and other agriculture exporters have been facing unprecedented challenges in securing shipping container space on ocean vessels while contending with an accumulation of exorbitant detention and demurrage fees. Foreign owned and operated ocean carriers have been driving this crisis by providing unpredictable and unreasonable timelines for exporters to load agricultural goods and by exacerbating pressure on supply chains by opting to return empty containers rather than allowing time for them to be loaded with Asian-bound goods for the vessel’s return journey. As a result, over 70% of containers are leaving West Coast ports empty, an all-time record.

Delays and an intentional lack of transparency and flexibility from ocean carriers have cost American dairy exporters over $300 million dollars through just the first half of the year, or 12% of total export value. In addition to this added cost, continued delays put at risk critical trading relationships with Asian importers as the U.S. increasingly risks becoming viewed as an unreliable supplier.

“We thank the Biden administration for the initial actions taken to address the extraordinary challenges dairy exporters are facing when exporting their products,” said Krysta Harden, USDEC president and CEO. “Unfortunately, the shipping crisis only continues to grow as container availability becomes scarcer with the ocean carriers’ increasing refusal to export American-made products. To further its goals of supporting the workers and companies producing Made-In-America products, we are urging the White House to take a more active role in ensuring that foreign carriers are not permitted to dictate U.S. export flows and put our established trading relationships in jeopardy. Right now, imports seem to be enjoying the equivalent of an eight-lane highway while our exports have been relegated to narrow country roads; that’s not right and we know that Congress and the Administration can take steps to create fairer trading practices.

“Without question, ocean carriers are abusing a unique situation created by the pandemic and the lack of sufficient regulatory action to enforce reasonable shipping practices,” said Jim Mulhern, NMPF president and CEO. “We recognize that increased import demand has driven higher rates for shipping, but it does not warrant the cancellations, refusal to load U.S. dairy and agriculture products, and unreasonable detention and demurrage practices that ocean carriers have turned into an additional revenue stream. It is imperative that the Administration takes immediate steps to work with Congress and the FMC to limit these unfair practices and ensure our exporters can reach their customers around the world.”

COVID-19 Delta Variant: What Dairy Employers Need to Know

Posted on by Theresa Sweeney

What is the Delta variant?

The Delta variant is currently the predominant strain of the COVID-19 virus circulating in the U.S. It is nearly twice as contagious as previous variants and more likely to cause severe illness than previous strains among people who are unvaccinated.

While it spreads primarily among the unvaccinated, no one is immune. Individuals infected with the Delta variant, including fully vaccinated people with breakthrough infections, can transmit it to others.

What can I do to protect myself and my workforce?

Get vaccinated. Authorized vaccines are highly effective at protecting people against severe COVID-19. Fully vaccinated people are much less likely to become infected and, if infected, to develop symptoms of COVID-19. They are at substantially reduced risk of severe illness and death from COVID-19 compared with unvaccinated people. NMPF is one of 30 agricultural organizations promoting vaccinations among farmers and other rural Americans.

Vaccination remains an employer’s best tool for returning to normalcy, even with the Delta variant. If you’re an employer, remove any barriers that could prevent your employees from getting vaccinated and consider offering incentives to employees upon proof of vaccination.

Health experts urge that an overwhelming portion of the population must be vaccinated to overcome the disruptions of COVID-19.

What guidance is available for fully vaccinated people?

Outdoor activities pose minimal risk to fully vaccinated people. However, to reduce their risk of becoming infected with the Delta variant and potentially spreading it to others, the CDC recommends that fully vaccinated people:

  • Wear a mask in public indoor settings if you are in an area of substantial or high transmission.
  • Get tested if experiencing COVID-19 symptoms
  • Isolate if they have tested positive for COVID-19 in the prior 10 days or are experiencing COVID-19 symptoms.
  • Get tested 3-5 days after exposure to someone with suspected or confirmed COVID-19
  • Continue to follow any applicable federal, state and local laws, rules, and regulations.

What guidance is available for unvaccinated people?

For unvaccinated individuals, CDC guidance for preventing COVID-19 and managing its spread remains unchanged:

  • Get vaccinated
  • Wear a mask
  • Stay six feet away from others
  • Avoid crowds and poorly ventilated spaces
  • Wash your hands often
  • Cover coughs and sneezes
  • Clean and disinfect
  • Monitor your health daily

What should be done in situations when not everyone is vaccinated?

In situations when vaccinated and unvaccinated workers may be interacting, the safest path is to act as if everyone is unvaccinated. This is a change brought about by the Delta variant, which, although much less likely to infect vaccinated people and much less likely to cause serious illness, may still be spread by the vaccinated. Also, the long-term effectiveness of current vaccines is unknown, making the risk of infection potentially higher among even the vaccinated in coming months.

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CWT-Assisted Export Dairy Sales Through August Reach Nearly 950 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 49 contracts in August adding 3.0 million pounds of American-type cheeses, 882,000 pounds of butter, 344,000 pounds of whole milk powder and 344,000 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 August 2021 through February 2022.

CWT-assisted 2021 dairy product sales contracts year-to-date total 34.1 million pounds of cheese, 12.7 million pounds of butter, 5.1 million pounds of anhydrous milkfat (AMF), 9.1 million pounds of cream cheese and 18.5 million pounds of whole milk powder. This brings the total milk equivalent for the year to roughly 945.1 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.

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.

FARM to Host Lunch Panel at World Dairy Expo

Posted on by Theresa Sweeney

The National Dairy FARM Program will host a luncheon at World Dairy Expo in Madison, WI on Sept. 30 that will feature a panel discussion from industry stakeholders involved in the newest FARM initiatives, FARM Biosecurity and the Calf Care & Quality Assurance (CCQA). Space is limited and registration for this in-person only event is required.

Panelists for the luncheon include:

  • Josh White, Executive Director, Producer Education, NCBA
  • Kris Scheider, Wisconsin, Foremost Farms Dairy Farmer
  • Jennifer Van Os, PhD, Animal Welfare Assistant Professor and Extension Specialist, UW – Madison
  • Justin Potts, Senior Manager, Dairy 2025, Land O’ Lakes.

Visit FARM in the Exhibit Hall at booth EH 4508 where farmers can register to win a pizza party for their employees. NMPF and FARM will sponsor two World Dairy Expo Seminars – Dairy Cow Productivity: More Important to the Profitability of Your Dairy Operation than You Think presented by Peter Vitaliano, Ph.D., Vice President, Economic Policy and Market Research at NMPF and Practical Employee Management Strategies presented by Dr. Robert Hagevoort, Associate Professor and Extension Dairy Specialist, New Mexico State University.

NMPF Works to Preserve Market Access in Colombia

Posted on by Theresa Sweeney

NMPF Executive Vice President for Policy Development and Strategy Jaime Castaneda testified in a hearing convened Aug. 12 by the Colombian Ministry of Trade, Industry and Tourism, calling on the Colombian government to terminate its safeguard investigation on imports of U.S. milk powder.

The Colombian government began the investigation in June to determine whether imports of U.S. milk powders were injuring its domestic industry, a move that appears to be politically driven. NMPF staff worked closely with USDEC’s regulatory team and South American office, as well as with U.S. exporters, to submit extensive data and information to Colombia to counter the Colombian livestock sector’s push to impose tariffs on U.S. milk powder exports.

Castaneda in his testimony highlighted that any imposed safeguard would create inefficiencies in the Colombian dairy processing sector and a market deficit of certain dairy products in Colombia, without helping its dairy producers. Castaneda called the safeguard request by Colombia’s cattle breeders purely political with no legal or factual basis.

“The milk powder import safeguards petition is a political action pursued in the months leading up to a presidential campaign at the expense of Colombia’s poorest and import-dependent small and medium-sized industries; it has no economic or commercial merit,” Castaneda said in his testimony. “By imposing a political safeguard, the Colombian government would create a serious conflict between Colombia and the United States, impacting Colombian exports of other products to the U.S.”

Castaneda encouraged the U.S. and Columbia to work together to expand overall milk consumption, benefiting farmers in both nations.

NMPF Works to Resolve EU Certification Barrier

Posted on by Theresa Sweeney

As a result of significant advocacy and technical engagement by NMPF in collaboration with USDEC August yielded two major milestones in NMPF’s year-long work with the U.S. government to preserve workable access opportunities for U.S. dairy exports requiring EU certification.

NMPF met Aug. 3 with a broad U.S. interagency team regarding the U.S. government’s plan on implementing the new EU certificates. That meeting provided critical clarifications on the extent of the new requirements and – most importantly – reassurances that the process would not impose new burdens on U.S. dairy farmers and processors. USDA on Aug. 13 then published a summary of that information, outlining that the new EU certification process would simply entail verification that the milk used was either regulated as Grade “A” or under AMS’s milk for manufacturing program.

That announcement resolved the crux of the concern – whether the U.S. would be able to implement the new EU certificates in a non-burdensome manner. The hard-won victory followed months of painstaking discussions between U.S. and EU officials regarding the strength of the U.S. dairy system and the upheaval that would unfold from either upending trade or imposing onerous new requirements on U.S. dairy This recognition that the U.S. dairy regulatory reliably produces safe products that meet the underlying goals of EU regulations even though implementation differs is precisely what NMPF had hoped to see achieved with the EU and had advocated for throughout the past year.

That breakthrough on core issues was complemented by an Aug. 12 announcement that would delay implementation of the new requirements from Aug. 21 to Jan. 15. Throughout 2021, NMPF advocated strongly both for a workable resolution to the new EU requirements and for more time to implement them.

The extension will enable USDA to ensure that the AMS Dairy Program will have its new electronic Agriculture Trade Licensing and Attestation Solution (ATLAS) system ready to be used by U.S. dairy exporters to complete the EU’s new certificates by the time they are required on Jan. 15. NMPF continues to work with the U.S. government to help ensure for a smooth transition and will closely continue to monitor implementation of the new certification program to make sure it works as advertised.

Congress and Maritime Commission Take First Steps on Ports

Posted on by Theresa Sweeney

NMPF welcomed bipartisan legislation introduced by Representatives John Garamendi (D-CA) and Dusty Johnson (R-SD) on Aug. 10 to address unfair practices and charges implemented by ocean carriers. The legislation, entitled The Ocean Shipping Reform Act of 2021 (H.R. 4996), was the result of a strong push from NMPF, the U.S. Dairy Export Council (USDEC), and a coalition of agricultural exporters.

The bill would increase the Federal Maritime Commission’s authority to oversee and regulate ocean carrier activities, expand the agency’ enforcement options and penalties against violations, increase transparency and accountability of the commission and ocean carriers, and provide new opportunities for exporters to seek redress from ocean carriers for violations.

NMPF, with cooperation from the U.S. Dairy Export Council (USDEC), worked closely with congressional offices as the legislation was drafted, providing detailed examples and economic impact analysis with critical input from NMPF and USDEC members. The legislation represents an important step forward, but much work remains to be done to see it passed by congress.

The House also increased enforcement funding by $525,000 in late July for the maritime commission in the Department of Transportation’s appropriations bill and directed the agency to enhance assistance to U.S. exporters and importers without hiring lawyers.

Supplementing this congressional action, the maritime commission finally responded to persistent calls from NMPF and other agricultural organizations for more proactive enforcement measures by launching an audit of ocean carriers’ billing practices on July 20. The commission on Aug. 4 asked eight ocean carriers to justify port congestion surcharges as part of its investigation into unreasonable detention and demurrage charges.

NMPF will continue to proactively advocate with the administration and Congress to pursue additional solutions to support and complement the congressional action, including an effort to drive a more comprehensive near-term response from the administration to the shipping crisis.