NMPF Chief Sustainability Officer Nicole Ayache, in an interview for Dairy Radio Now, explains how farmers can benefit from using the new information tool that allows a more precise computation of their carbon footprint. The FARM Environmental Stewardship program recently refined the voluntary model to help track the progress being made in reducing greenhouse gas emissions.
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Affordability Remains a Dairy Strength
Regardless of how one feels about the November elections, one thing that voters said loud and clear was that they don’t like inflation. As data shows, that’s yet another reason to like dairy.
A look at Consumer Price Index data going back to the 2008 financial crisis shows that, compared to overall costs, and particularly to other food and beverages, dairy remains relatively affordable, and is becoming even more so over time. Dairy product prices this fall are roughly the same as they were two years ago, even as overall prices and food and beverage prices are both more than 6 percent higher.
This stability isn’t unusual. Dairy prices rose only 12 percent for the entire decade of the 2010s, helping household budget planning and easing price pressures felt more keenly in other areas of the economy.
Dairy isn’t immune to inflation, of course – dairy saw post-pandemic price runups like everything else, as consumers – and voters – remember well. But after that interruption, dairy products are once again anchoring grocery spending, with high quality, high nutrition, great taste and affordability.
So as holiday shopping lists are made and parties are planned, be sure not to skip the dairy aisle. For unparalleled value, in every sense, spend a little extra time in the dairy case. It’s a good place to be this year.
New FARM Initiative Advances Dairy Stewardship
FARM Environmental Stewardship Version 3 is out – and it’s a step forward for dairy farmers both as stewards and as business managers, according to NMPF Chief Sustainability Officer Nicole Ayache, who oversaw development of the initiative through the National Dairy Farmers Assuring Responsible Management (FARM) Program, in a Dairy Defined Podcast released today.
With new, updating modeling, under FARM ES Version 3, “farmers can actually run scenarios to assess practice or technology changes, see how those would impact their greenhouse gas emissions, and any potential impact on milk productivity as well,” Ayache said. “The scenarios, being able to project what-ifs, is the biggest benefit.”
The FARM Program is a partnership between NMPF and Dairy Management Inc. that helps ensure dairy’s success by demonstrating U.S. dairy farmer commitment to safe, high-quality, high-integrity milk. FARM ES Version 3 took effect Oct. 31.
For more information on FARM ES Version 3, visit the FARM Program website. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”
Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.
What dairy trade may look like under Trump
U.S. trade policy has changed significantly since the United States last passed a new free trade agreement (FTA), all the way back in 2011. During the past decade, securing new agricultural market access has become more difficult as it has been frustrated at times by both a lack of support in Washington, D.C., as well as an unwillingness from our trading partners to engage in earnest negotiations.
Although the United States has at times proposed new regional pacts and secured more targeted trade expansions in specific sectors, these proposals were typically seen as unbalanced and ultimately were found to be lacking in terms of political support here at home. Unfortunately, this trend looks poised to continue to the detriment of U.S. dairy producers and exporters. Despite these headwinds, U.S. dairy (and agriculture) exports have grown exponentially over the last 15 years, due in key part to established FTAs, World Trade Organization access, and more targeted agreements, but also because the growth in consumer demand for our dairy products outside the U.S. has risen in parallel with greatly improved economic conditions since the recession of 2009.
With Donald Trump returning to the White House in January, the National Milk Producers Federation is examining how his second administration may approach trade policy and what it means for U.S. dairy producers.
Comprehensive trade agreements and tariffs
President Trump’s “America First” economic policy was the cornerstone of his trade policy decisions in his first term, and it is a trend expected to accelerate in a second term. The first Trump administration focused on renegotiating the North American Free Trade Agreement (NAFTA) — now the U.S.-Mexico-Canada Agreement (USMCA) — while also securing sectoral trade agreements with China and Japan and a pursuit of FTAs with the United Kingdom (UK) and Kenya. Negotiations with the UK faltered as a result of the enormous complexity of the UK’s exit from the European Union. Discussions with Kenya ended with the change from the Trump to Biden administrations. A resumption of trade negotiations with both could be explored under a second Trump administration in conjunction with Congress passing a renewal of Trade Promotion Authority (TPA) legislation.
New comprehensive trade agreements, or deals announced in specific sectors — along the lines of those pursued under Trump 1.0 — would open new markets for U.S. dairy producers. In contrast, tariff hikes imposed on trading partners invite the potential for retaliatory duties on U.S. dairy exports, exacerbating any competitive disadvantage that American dairy producers might face while reaching international customers.
USMCA review
President Trump’s renegotiation of NAFTA resulted in USMCA in 2020, with newly negotiated aspects of dairy products trade between the United States and Canada featured as a key element of the agreement. As USMCA prepares to enter its six-year mandatory review period in 2026, Canada’s persistent attempts to circumvent its dairy market access and protein export cap obligations will be front and center in the discussions, both on Capitol Hill and within the administration.
The role of Congress
While trade policy is largely driven by the executive branch, Congress will have a significant role in several areas over the next four years. In addition to any TPA discussion, there could also be a debate over China’s Permanent Normal Trade Relations (PNTR) status. Congress will also want to have input regarding the USMCA’s 2026 review process, and a renewal of the trade title of the farm bill will influence dairy’s participation in U.S. food aid programs. Across these issues, the U.S. dairy community will have to make its voice heard to ensure that policymakers prioritize the issues that impact dairy producers and workers on the ground.
These are just a sample of the many trade issues that NMPF, the U.S. Dairy Export Council (USDEC), and their allies will prioritize in the Trump administration. With the backing of more than 26,000 dairy farms and millions of additional workers, NMPF is confident that it will be able to work with Congress and the administration to pursue new market access, resolve harmful barriers to trade, and promote the U.S. dairy industry as the global supplier of choice.
This column originally appeared in Hoard’s Dairyman Intel on Nov. 7, 2024.
NMPF’s Bleiberg Analyzes November Election Results
NMPF’s chief lobbyist Paul Bleiberg assesses for listeners of Dairy Radio Now how the election of former president Donald Trump, along with a Senate majority led by the GOP, will impact dairy policy and agricultural issues in Washington and in farm country going forward.
Prairie Farms, MMPA’s Chapin Take Top NMPF Communications Honors
Prairie Farms Dairy, Inc., took top honors in NMPF’s annual cooperative communications contest, winning five categories and the competition’s “Best in Show: Writing” award announced Oct. 10. A farmer-owner of Michigan Milk Producers Association (MMPA), Doug Chapin, received NMPF’s Farmer Communicator of the Year award.
Edwardsville, IL-based Prairie Farms also took one second-place finish and two third-place finishes in the competition, which recognizes the top communications efforts among NMPF’s member cooperatives. The Best of Show: Writing award was given for Prairie Farms’s article, “R-Homestead Holsteins – 150 Years of Family Tradition.”
“This was a good feature showing the history of a small Illinois dairy with the father, Dave, having a long history of activism in Illinois boards and commissions,” the competition review wrote. “The story also touches on challenges such as why an 80-head dairy hasn’t expanded like others. It also highlights Dave’s interest in genetics with his herd as well. It’s a good, rounded, thorough story of a single family farm.”
Chapin was recognized for his leadership in communicating farmer and co-op perspectives on challenging issues that were of top priority to dairy farmers and the entire industry throughout 2024, including dairy’s response to the discovery of the H5N1 influenza virus in dairy cattle and efforts to modernize the Federal Milk Marketing Order system.
At a time when simply speaking out on H5N1 invited additional scrutiny, Chapin ably represented dairy farmers and the cooperatives they owned by addressing consumer and industry concerns during moments of great uncertainty early in the H5N1 outbreak.
“During the H5N1 crisis in Michigan, Doug was instrumental in advocating to legislators for a science-based regulatory approach, representing dairy interests to the media, and maintaining critical industry relations within the agriculture community,” Michigan Milk Producers Association said in its nomination letter. “His efforts ensured that the dairy community’s perspective was front and center, demonstrating his unwavering commitment to the industry and the health and safety of workers and cattle.”
Chapin also “played a crucial role in the Federal Milk Marketing Order reform by testifying on behalf of NMPF and the Michigan Milk Producers Association,” MMPA continued. “He advocated for the higher of Class 3 or 4 proposal for the Class I skim milk price mover, supporting his testimony with data and his farm’s experience during the pandemic. His participation ensured that his peers’ voices were heard in the reform process.”
Chapin is the chairman of the board for MMPA and a member of NMPF’s executive committee. He farms near Remus, MI. In an NMPF Farmer Focus article to be published later this month, he said that in the early days of H5N1, dealing with uncertainty about the virus and the necessity of a response by state and federal officials. “Our objective was to make sure that the response made sense and was manageable by our dairy producers, to make sure that they could operate within the guidance that Michigan was putting out and work with the USDA,” he said.
“It’s important to remember that there is still a lot we don’t know about the virus, and early on, there was even less,” he continued. “So we wanted to make sure we were using real facts and the best science we had to make sure we were making good decisions.”
The “Best of Show” award is selected from the first-place entries in the contest’s main areas: publication, writing, graphics and special projects. In addition to Prairie Farms’s recognition in the writing category, Upstate Niagara Cooperative won publications for its annual report; Dairy Farmers of America won graphics for its photo, “Dairy Fountain at Sunset,” and Land O’Lakes won the special projects category with its video series, “Rural is Incredible.”
NMPF Works to Mitigate Port Strike Disruptions
A port workers strike that threatened millions in U.S. dairy exports was successfully limited Oct. 4, after NMPF and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to intervene in the port workers strike.
NMPF and USDEC in an Oct. 1 joint statement and Oct. 2 industry letter co-signed by more than 270 agricultural, manufacturing, retail and additional supply chain stakeholders helped apply pressure on the negotiating parties, who agreed to resume work on Oct. 4.
More than $4.5 million in U.S. dairy exports moved through east and gulf coast ports in 2023 and a work stoppage forced exporters to cancel shipments and undertake costly reroutes. NMPF and USDEC relayed information between exporters and USDA to highlight and address storage and rerouting challenges as a result of the strike.
The International Longshoremen’s Association reached a tentative agreement with the United States Maritime Alliance to suspend the strike and resume normal operations on Oct. 3. NMPF and USDEC welcomed the end to the strike and pressed both parties to come to a long-term agreement before the current contract extension expires on Jan. 15, 2025.
FARM Leads discussion on H5N1, NMPF Talks FMMO, YCs Plan Future at World Dairy Expo
NMPF and the FARM Program held sessions Oct. 3 and 4 exploring current industry happenings at the World Dairy Expo in Madison, WI. Dairy farmer members, NMPF staff and other industry experts participated, sharing insights and discussing ongoing efforts to drive the industry forward.
NMPF’s National YC Program kicked off Oct. 3 with a panel discussion on farm transition planning. NMPF members Ben Smith of Cool Lawn Farms in Remington, VA, Steve Ohlde of Ohlde Dairy in Linn, KS, Hannah Lansing of J&K Dairy in Sunnyside, WA and Myron Czech of Pike Hills Dairy in Little Falls, MN shared their experiences and insights with farm transitions.
Later that day, the FARM Program partnered with Uplevel Dairy Podcast to bring Expo attendees exclusive insights into the ongoing H5N1 animal health outbreak. Veterinary and producer perspectives were shared during the panel discussion, which discussed best practices for mitigating H5N1 risks and preparing for a potential outbreak. NMPF’s Miquela Hanselman shared recommendations to strengthen producers’ disease preparedness plans.
The day concluded with another panel discussion featuring Peter Vitaliano, NMPF’s Vice President of Economic Policy and Market Research, who examined the short- and long-term impacts of the Federal Milk Marketing Order (FMMO) modernization process on dairy farmers. He was joined by Land O’Lakes’ Pete Kappelman and Somula Schwoeppe, owner of Schwoeppe Dairy Farm. The panel discussed the USDA’s proposed updates and next steps in the FMMO modernization process.
NMPF’s National YC Program partnered with the Dairy Girl Network on Oct. 4 to host a panel featuring women leaders in the U.S. dairy industry. The event, which reached over 1,500 attendees and livestream viewers, included Krysta Harden of the U.S. Dairy Export Council, Joanna Shipp of Bowmont Dairy, Krista Knigge from the Wisconsin Department of Agriculture, Trade and Consumer Protection, and Gertie van den Goor of Goma Dairy Farm. The discussion highlighted leadership experiences, strategies for overcoming industry challenges and the evolving role of women in dairy.
NMPF Outlines Dairy Trade Priorities to USTR
NMPF and the U.S. Dairy Export Council (USDEC) submitted Oct. 17 comments to the Office of the U.S. Trade Representative (USTR) highlighting access to Canada, Indonesian foot-dragging and EU protectionism as among the most pressing trade barriers affecting U.S. dairy exports for the agency’s National Trade Estimate report.
The annual report provides a comprehensive review of significant foreign trade and investment barriers to U.S. exports.
The comments underscore that U.S. dairy exporters face challenges accessing markets around the globe, ranging from unnecessary import certification requirements to attempts by trading partners to limit imports by sanitary requirements not grounded in science. NMPF and USDEC urged the U.S. government to prioritize issues in 37 markets, including:
- U.S. dairy access to the Canadian market, which has failed to the promises made by the US-Canada-Mexico Agreement (USMCA).
- Resolving Indonesia’s inability and/or unwillingness to register U.S. dairy plants in a timely and predictable manner.
- Countering the European Union’s attempts to monopolize common food names like “parmesan” and “feta” in markets around the world.
Read the full complete set of comments here.
October CWT-Assisted Export Sales Nearly 11.2 Million Pounds
CWT member cooperatives secured 89 contracts in October, adding 11.2 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this is equal to 100.9 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Oceania, Middle East-North Africa, Europe, Central America, the Caribbean and South America and will be shipped from October 2024 through June 2025.
Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.
The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.
FARM Announces 2024 Excellence Awards Winners
Farmer leaders in animal care, antibiotic stewardship, sustainability and workforce best practices, along with a top FARM Program evaluator, were recognized at the fourth annual FARM Excellence Awards presentation Oct. 22 during the Awards Luncheon at the 2024 Joint Annual Meeting of the NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association in Phoenix.
The awards recognized three farms and one evaluator who go above and beyond industry standards and best management practices through their commitment to innovation and continuous improvement. The 2024 FARM Excellence Award recipients are:
- Animal Care & Antibiotic Stewardship — Carlson Dairy LLP (First District Association)
- Environmental Stewardship – Double S Dairy (Saputo Cheese USA, Inc.)
- Workforce Development — Oakridge Dairy (Dairy Farmers of America)
- Evaluator of the Year — Nicole Frank (First District Association)
The FARM Excellence Awards were created in 2021 to celebrate farms that are dedicated to continuous improvement in the FARM Program pillars, and to recognize a FARM Program evaluator for their exceptional care and attention to the farms they evaluate. The awards are judged by FARM Farmer Advisory Council members and other subject matter experts. Farms and evaluators can be nominated by fellow dairy farmers and evaluators, members of their communities, extension, cooperative or processor staff, veterinarians, or other industry professionals.
Visit the FARM website for more information about the FARM Excellence Awards.
Ellsworth Wins NMPF Dairy Products Competition
Ellsworth Cooperative Creamery took top honors in this year’s NMPF Dairy Products Competition, winning the Chairman’s Award with its Garden Vegetable with Sweet Basil Rub from Menomonie, WI.
This year’s annual edition of the contest for member cooperatives featured butter for the first time. The contest included 250 entries from 13 participating NMPF co-ops, a total of more than 3,500 pounds of cheese, yogurt and butter.
The entered products are assessed against scoring standards for cheese, yogurt or butter. NMPF thanks the judges for helping with the contest this year: Allison Reynolds (head judge), USDA, Dairy Grading Branch, Turlock, CA; Timothy Meyers, College of DuPage, Glenn Ellyn, IL; Gina Mode, Center for Dairy Research, University of Wisconsin, Madison; and Chad Galer, Dairy Management Inc., Rosemont, IL.
Ellsworth’s champion cheese was made by Team Menomonie. Upstate Niagara Cooperative won the Reserve Chairman’s Award for its Salted Butter produced in Batavia, NY. Best in Class awards included:
- Best Cheddar – Mild cheddar from Agri-Mark, Inc., Chateaugay, NY made by Team Chateaugay
- Best Cottage Cheese – Chive cottage cheese from Dairy Farmers of America, Farmington, MN made by Kemps LLC
- Best Italian – Provolone Non-Smoked w/ Lipase (Vat #13) from Foremost Farms, Richland Center, WI made by Bryan Allen and the Clayton Team
- Best Yogurt – 10% Plain Greek Yogurt from Agri‐Mark, Inc., Cabot, VT made by the Cabot Culture Plant
Extra dairy products from the contest were donated to Chefs to End Hunger, which provides meals to the hungry by redistributing the excess prepared food that would normally go to waste in hotels, restaurants, and other food service operations to local charitable organizations to serve the meals.