NMPF and 33 other agricultural organizations sent a letter last month to the House Ways and Means Committee expressing strong support for a “Phase 1” trade agreement with Japan while emphasizing the need to continue Phase 2 of the negotiations.

This year has been critical for expanding trade opportunities for U.S. dairy exports. In September, the U.S. and Japan struck a so-called Phase 1 trade deal that improves market access for U.S. dairy products in this growing market. Japan approved Phase 1 U.S.-Japan deal Dec. 4, clearing the path for the agreement to be implemented on Jan. 1. That would then be followed by “Phase 2” – a more comprehensive deal that could include more gains for dairy.

The letter, signed by NMPF and groups including the U.S. Dairy Export Council, International Dairy Foods Association, and the Corn Refiners Association, reiterates that a Phase 1 agreement “is critical to our economic prosperity and strengthens the U.S. food and agriculture sector by increasing the competitiveness of American farmers, ranchers, and food exporters in the Japanese market.” But it also notes that Phase 2 negotiations are necessary to “build on the market access gains” already achieved and address additional tariff and non-tariff barriers affecting the exports of U.S. dairy, beef, pork, poultry, fruit and vegetable, grains and other agricultural and food products.

The initial agreement makes significant headway in helping to close the gap between U.S. suppliers to Japan and some of our key competitors. To deliver the full range of access sought by the U.S. dairy industry and ensure U.S. dairy exports can most effectively compete in Japan, however, more work is needed

Timing on a Phase 2 agreement remains uncertain. The House Ways and Means Committee on Nov. 20 held a hearing on the Phase 1 deal and the prospects for a comprehensive deal. NMPF will continue its proactive engagement on this issue in order to achieve a Phase 2 agreement that builds upon the trade deals already secured by key dairy competitors.

The National Milk Producers Federation thanked Senator Tammy Baldwin (D-WI) for her advocacy for public health and labeling transparency in her questions for Dr. Stephen Hahn during last month’s hearing on his nomination to be Commissioner of the U.S. Food and Drug Administration. Hahn’s nomination was later advanced to the Senate floor on Dec. 3.

Sen. Baldwin serves on the Health, Education, Labor, and Pensions Committee, which must review and vote on Dr. Hahn’s nomination before it can be considered by the full Senate. In response to a question from Sen. Baldwin asking him whether and when the FDA will begin enforcing its own labeling standards, Dr. Hahn voiced his support for “clear, transparent, and understandable labeling for the American people.

“The American people need this so that they can make the appropriate decisions for their health and for their nutrition. I very much will look into this issue,” Dr. Hahn said, adding he would “look at this as soon as I am confirmed.” Video of Dr. Hahn’s exchange with Sen. Baldwin is here.

“As the nation’s top health official, Dr. Hahn would face many challenging issues, labeling integrity high among them. It’s heartening to hear the nominee pledge that an FDA under his leadership will immediately examine this crucial unfinished business,” said Jim Mulhern, president and CEO of NMPF.

“Given his stated commitment to science- and data-based decision-making and his concern for public nutrition, we expect FDA will soon begin enforcing its own standards – which clearly reserve dairy terms for real dairy products, not plant-based imposters who mislead consumers by mislabeling nutritionally inferior products. We thank Senator Baldwin for pressing for urgent action today as part of her ongoing efforts to resolve this health and nutrition issue.”

NMPF has been long advocated for labeling transparency and has been encouraged by recent overdue FDA attention to the issue. NMPF looks forward to working with Dr. Hahn upon his confirmation as the FDA’s Commissioner.

With the deadline for 2020 farmer Dairy Margin Coverage program signup looming on Friday, Dec. 13, forecast margins remain high for 2020.

The National Milk Producers Federation is urging producers to visit their local Farm Service Agency offices to take advantage of the DMC, which is meant to provide risk management tools for farmers and provide some relief against financial hardship. The popular program paid dairy farmers more than $308 million in benefits for 2019.

All farmers who signed up for 2019 are encouraged to re-enroll for 2020, given the unpredictability of dairy markets. Farmers who elected to enroll for the full five-year life of the program need to visit their FSA office to keep their information current for the upcomingina year.

In October, the milk price/feed cost margin calculated under the Dairy Margin Coverage program was $10.88 per cwt., $0.46 per cwt. higher than the September DMC margin and remaining above the threshold below which payments are triggered. The October all-milk price was $0.60 per cwt. higher than September’s, while the DMC calculated feed cost for September was $0.14 per cwt. higher than September’s, mostly due to a higher soybean meal price.

As of December 4, USDA’s DMC Decision Tool, which can be accessed online, projected the margins shown in the chart below. The DMC margin is currently projected to remain above $9.50 per cwt. for the remainder of 2019 and during all of 2020.

NMPF has a resource page on its new website with more information about the program, including a 4-page brochure summarizing key facts about the DMC and a video specific to 2020 signup.

ARLINGTON, VA – The National Dairy Farmers Assuring Responsible Management (FARM) Program, the dairy industry’s on-farm quality assurance program, today released a proposed Workforce Development evaluation tool for input from industry stakeholders.

FARM Workforce Development (WFD) is the FARM Program’s newest initiative. It focuses on human resources and safety management and has brought together stakeholders from the entire dairy value chain to create educational materials for U.S. dairy owners and managers.

FARM WFD is developing an on-farm evaluation tool that FARM Participants can choose to implement with their dairy producers. The tool is meant to help farms:

• learn about HR and safety management best practices;
• identify which best practices will be most useful to implement on their farm; and
• track improvement over time.

Also, by performing on-farm evaluations, FARM Participants can provide important assurances to supply chain customers: our dairy buyers and retailers.

The evaluation tool was developed in consultation with the FARM WFD Task Force and Working Group members, along with subject matter expert input.

FARM is also getting direct feedback from dairy producers through a pilot program that runs through the end this year. Nine cooperatives have volunteered to test the evaluation tool to solicit feedback. About 60 dairy producers are participating from across the cooperatives. Public Comment will complement the pilot.

After the comment period closes on Jan 20, FARM staff, the WFD Task Force and the NMPF Executive Committee will review and consider revisions based upon the comments, then present a final proposed evaluation tool for approval by the NMPF Board of Directors in March. The FARM Program encourages all those involved in the dairy supply chain to participate. To review the draft evaluation tool and provide feedback, please visit this link.

###

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Created by the National Milk Producers Federation in partnership with Dairy Management Inc, the National Dairy FARM (Farmers Assuring Responsible Management) works with all U.S. dairy farmers, co-ops and processors, to demonstrate to dairy customers and consumers that the dairy industry is taking the very best care of cows and the environment, producing safe, wholesome milk and adhering to the highest standards of workforce development.

ARLINGTON, Va. – One of America’s many innovative dairy companies, Chobani Inc., is drawing attention with a new line of oat-based products meant to capitalize on diverse consumer tastes.

In reality, the real game-changer is likely to be its new line of dairy creamers, which will go a long way toward getting the delicious taste of real cream (rather than chemically-colored white liquids made from vegetable oil) into more U.S. coffee cups – a market that dwarfs the plant-based beverage sector

But amid the inevitable publicity about a dairy company developing a non-dairy product, it’s important to note something else about what Chobani’s doing: They aren’t using dairy terms on their plant-based offerings. And that proves an important point, as the U.S. Food and Drug Administration considers updates to its labeling guidelines on dairy terms: Responsible marketers follow the law, and they don’t have to falsely call a plant-based beverage “milk” to compete.

One of the biggest mischaracterizations of dairy-farmers’ positions on plant-based beverages is that they somehow want to “stifle” them. Um, no. Consumers simply deserve products that call themselves what they are – and as people who know a lot about milk, dairy farmers aren’t keen on sharing that term with imitators who use dairy terms to peddle goods that offer inferior, wildly varying levels of nutrition, misleading consumers into thinking those products have benefits that they don’t.

Chobani Oat exposes the fallacy of cries from plant-based manufacturers that their products must be called milk, or cheese, or whatever – or else consumers might be confused. Standing up for labeling transparency isn’t only honest, it’s commercially viable. And don’t just ask Chobani. Ask Trader Joe’s …

 

 

 

 

 

 

 

 

 

Or Sunnyside Farms …

 

 

 

 

 

 

 

 

 

 

 

 

 

Or Pacific Foods …

 

 

 

 

 

 

 

 

Or Dream Plant Based Beverages (a division of Hain Celestial) …

 

 

 

 

 

 

 

 

Contrary to what plant-based lobbyists want consumers to believe, dairy farmers embrace responsible competition and understand that proliferating choices are a 21^st-century reality. That’s why products like dairy/plant-based blends are entering the marketplace, and that’s why a smart company like Chobani adds both oat beverages and milk-based creamers to its offerings.

But the competition should be based on merit, not manipulative marketing. Plant-based is one of several classes of beverages competing with milk for consumer dollars, and after 40-plus years of false and misleading labeling, it’s still only managed to gain about a ten percent share of the milk market. And though plant-based is far from milk’s biggest competitor (that would be water), it’s the only one whose manufacturers insist on calling their products “milk,” “cheese,” “butter” and “yogurt,” directly trying to use dairy’s success against it.

Until the bad actors stop violating existing regulations on their own – or the FDA begins enforcing its own rules — we commend the companies who do labeling right. They’re showing integrity, and more of that is badly needed to help consumers make the best decisions for themselves and for their families.

 (Note: NMPF’s Dairy Defined explores today’s dairy farms and industry using high-quality data and podcast interviews to explain current dairy issues and dispel myths.)

###

The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

ARLINGTON, VA. – Deadlines for Dairy Margin Coverage program signup and Market Facilitation Program payments are nearing for dairy farmers, and the National Milk Producers Federation is urging producers to visit their local Farm Service Agency offices to take advantage of programs meant to provide risk management tools for farmers and provide some relief against financial hardship.

Dairy Margin Coverage signup for 2020 coverage runs through next Friday, Dec. 13. The popular DMC program, which paid dairy farmers more than $308 million in benefits for 2019, offers insurance against low prices and high feed costs. All farmers who signed up for 2019 are encouraged to re-enroll for 2020, given the unpredictability of dairy markets. Farmers who elected to enroll for the full five-year life of the program need to visit their FSA office to keep their information current for the upcoming year.

The second tranche of 2019 Market Facilitation Program (MFP) payments, which USDA announced in November, is designed to help farmers suffering from damage due to foreign trade retaliation against U.S. agricultural products. In the past, NMPF has urged USDA to enhance payments for U.S. dairy farmers by using current production data.  Signup for the payments runs through this Friday, Dec. 6.

NMPF has a resource page on its new website with more information about the program, including this 4-page brochure summarizing key facts about the DMC and this video specific to 2020 signup.

###

The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

ARLINGTON, VA. – The National Milk Producers Federation today announced it has reached a settlement agreement to end a class-action lawsuit concerning a herd retirement program that ended in 2010 and was administered through NMPF’s Cooperatives Working Together initiative. The settlement will safeguard ongoing efforts to aid U.S. dairy producers, lift a years-long legal cloud and allow NMPF member cooperatives and the current CWT program to move forward with greater legal and fiscal certainty.

The plaintiffs (generally larger retailers and companies who directly purchased butter and cheese from CWT member cooperatives) in First Impressions Salon, Inc. v. National Milk Producers Federation et al, (pending in the U.S. District Court for the Southern District of Illinois), and defendant NMPF have agreed to a settlement of $220 million in exchange for a release from all claims. Based on antitrust rules that mandate a tripling of any damages, that amount is less than 6 percent of the damages sought by plaintiffs. The settlement amount will be paid through existing CWT mechanisms, ensuring no disruption to other business operations.

Neither NMPF nor any of its member cooperatives admit any wrongdoing as a result of this settlement. NMPF is the sole defendant to be a party to the settlement, but the settlement extinguishes claims against all the defendants.

“There is no way to sugarcoat a settlement of this size, especially given that the Herd Retirement Program was a well-publicized effort designed to serve dairy producers in difficult times and was praised by two Secretaries of Agriculture as well as leading members of Congress,” said Jim Mulhern, president and CEO of NMPF, the nation’s largest organization representing dairy farmers. “Given the potential damages and the uncertainties surrounding any jury trial, resolving this case eliminates the possibility of a truly crippling outcome. Lifting this cloud will aid us in our work advancing the well-being of U.S. dairy producers, which includes the current robust CWT export assistance program.”

The plaintiffs’ litigation sought damages relating to the so-called Herd Retirement Program operated under Cooperatives Working Together. The program offered dairy farmers financial incentives to market their milking herds for beef. It operated between 2003 to 2010 and was openly lauded by USDA secretaries and congressional agriculture committee chairmen from both parties at the time as an important, appropriate way to help struggling dairy farmers.

NMPF’s decision to enter into this settlement recognized the uncertainties inherent in any jury trial, the very large damages sought by the plaintiffs and the fact that the successful Export Assistance Program is entirely unaffected by the settlement.  In 2018, CWT assistance aided 57 percent of American-type cheese exports, 44 percent of butter exports, and 39 percent of whole-milk powder shipments, helping U.S. dairy producers expand trade relationships in an extremely challenging world trade environment.