ARLINGTON, Va. –  In a letter today to Hamdi Ulukaya, chief executive officer of Chobani, National Milk Producers Federation (NMPF) President and CEO Jim Mulhern thanked the company for supporting transparency in the use of dairy terms on food-product labels, the subject of a recently ended FDA comment period.

“As you state in your company’s comments, ‘The improper – and illegal – use of dairy terms on plant-based alternatives poses a public health risk, in that this terminology may confuse consumers and cause them to displace the nutrients that would otherwise be provided by dairy foods,’” Mulhern wrote on behalf of NMPF. “We at National Milk share your concerns that consumers are being misled over the nutritional content of dairy versus plant-based products, and we appreciate your willingness, as the No. 1 seller of Greek yogurt in the U.S. and the nation’s second-largest yogurt manufacturer, to use your voice to speak out on this issue.”

Mulhern also noted that Chobani follows FDA rules and eschews the use of dairy terms on its non-dairy products, a contrast with competitors that flout proper practices to the detriment of consumers. “We will always strongly advocate for dairy as the superior consumer choice, but we have no objection to the presence of properly labeled plant-based imitators,” Mulhern wrote. “As Chobani is showing, such products can compete on their own merits without misappropriating dairy terms. We wish your example would be emulated by your competitors, including Danone North America, that currently peddle mislabeled products.”

NMPF will host a teleconference with the media at 1:30 P.M. (EST) on Thursday, Feb. 21, outlining the organization’s recommendations for FDA as it considers revisions to regulations regarding the use of dairy terms on labels for plant-based products. This is a time change from a release issued Friday, made due to the likelihood of a winter storm disrupting government operations on Wednesday and Thursday.

For this on-record briefing, interested journalists may call:

Toll-free number: 1-888-537-7715
Participant Passcode: 61546962 #

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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 the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF is now accepting applications for its National Dairy Leadership Scholarship Program for academic year 2019-2020. The deadline to apply is Friday, April 5.

Each year, NMPF awards scholarships to outstanding graduate students (enrolled in master’s or Ph.D. programs) who are actively pursuing dairy-related fields of research of direct interest to NMPF member cooperatives and the greater U.S. dairy industry.

Graduate students pursuing research of direct benefit to milk marketing cooperatives and dairy producers are encouraged to apply. (Applicants do not need to be members of NMPF to qualify.)  The top scholarship applicant will be awarded the Hintz Memorial Scholarship, which was created in 2005 in honor of the late Cass-Clay Creamery Board Chairman Murray Hintz, who was instrumental in establishing NMPF’s scholarship program.

Recommended fields of study include but are not limited to: Agriculture Communications and Journalism, Animal Health, Animal and/or Human Nutrition, Bovine Genetics, Dairy Products Processing, Dairy Science, Economics, Environmental Science, Food Science, Food Safety, Herd Management, and Marketing and Price Analysis.

For an application or more information, please visit the NMPF website or call the NMPF office at 703-243-6111.

In the past few months, NMPF and its NCIMS Committee have engaged in discussions about its participation in the 2019 National Conference on Interstate Milk Shipments (NCIMS) in St. Louis, Missouri.

The conference is a collaborative process by which the states, industry and federal government come together to determine how to best regulate the production of Grade “A” milk and milk products. NMPF has played a key role in the bi-annual conference since its inception.

On April 3 in Arlington, NMPF and members will meet in person to review any proposals for changes to the Pasteurized Milk Ordinance. Proposals were due Feb. 1 – NMPF submitted four. In past conferences, there have been more than 100 proposals up for deliberation.

The conference will take place in St. Louis from April 26-May 1 at the Hyatt Regency St Louis at the Arch. For more information about this year’s conference or NCIMS in general, visit the NCIMS website. For more information about participating in the conference, contact Clay Detlefsen.

In what has become an annual affirmation of dairy farmers’ commitment to keeping antibiotic residues out of the milk supply, the 2018 U.S. Food and Drug Administration (FDA) report tracking residue levels continued to show a decline in positive drug test results.

Released in late December, the 2018 National Milk Drug Residue Data Base survey found that only 0.010 percent of all bulk-milk tankers – or 1 in 9,900 loads – showed any sign of animal antibiotic drug residues. On-farm vigilance in following drug withdrawal times has led to a steady decline in detectable antibiotic residues, with 2018’s figure falling from an already low level of 0.028 percent in 2008, a decline of over 65 percent in the last decade. All milk loads are tested for antibiotics. Any tanker that tests positive for a drug residue is rejected before entering a dairy plant and does not enter the market for human consumption.

In December, FDA announced that domestic sales and distribution of all medically important antimicrobials intended for use in food-producing animals decreased by 33 percent between 2016-2017. This reduction in sales volume indicates that ongoing efforts to support antimicrobial stewardship are having a significant impact.

Cooperatives Working Together (CWT) helped member cooperatives secure 60 contracts, resulting in sales of 11.7 million pounds of American-type cheeses, 707,684 pounds of butter and 2.2 million pounds of whole milk powder. The product is going to 38 customers in Asia, Central America, the Middle East, North Africa, Oceania and South America. The product will be shipped during the months of January through July 2019. These transactions will move overseas the equivalent of 140.6 million pounds of milk on a milkfat basis.

Assisting CWT member cooperatives to gain and maintain world market share through the Export Assistance program in the long-term expands the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

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 required documentation.

All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available online.

The U.S. Department of Agriculture (USDA) is gradually catching up on releasing data delayed by the partial government shutdown. The monthly margin under the now-expired Margin Protection Program (MPP) for November 2018 was $8.66/cwt., down $0.30 from the October margin. The November all-milk price dropped $0.40 from October, to $17.00/cwt., and the November MPP feed cost calculation was 10 cents lower than the previous month at $8.34/cwt. Under the new Farm Bill signed in December 2018, the program will go forward as the Dairy Margin Coverage (DMC) program. The USDA MPP Decision Tool currently projects that the margin will remain above the old $8.00/cwt. maximum margin coverage level during December 2018 and for every month during 2019 but will remain all this year below the new maximum DMC margin coverage level of $9.50/cwt. for the first 5 million pounds of a producer’s milk production history under the program, as shown in the chart. Under this current forecast, payments for $9.50 coverage, which would cost $0.15/cwt. for the year, would amount to just over $0.30/cwt. when averaged over the year. No date has been set for USDA to announce the sign-up period for DMC coverage in 2019.

The new Farm Bill also removes the previous restriction that prohibited producers from enrolling milk in both the MPP and the Livestock Gross Margin for Dairy (LGM-Dairy) program during the same month. It further allows farmers previously prevented from enrolling in MPP during 2018 due to this restriction to enroll retroactively in MPP and collect payments for 2018 for the months during which they were prevented from doing so.

USDA’s MPP margin forecasts can be accessed online.

ARLINGTON, VA – The U.S. dairy industry today endorsed bipartisan, bicameral legislation to reform a powerful White House trade tool to ensure it is used as intended by Congress to respond to genuine national security threats. Rolling back current retaliatory tariffs and keeping others from forming in the future is the dairy industry’s top trade priority. America currently sends 16 percent of its dairy production overseas, and industry officials see a lot of room for expansion in the future.

The Trade Security Reform Act, sponsored by Reps. Ron Kind (D-WI) and Jackie Walorski (R-IN), and Sens. Rob Portman (R-OH) and Doug Jones (D-AL), aims to change the process by which the Administration imposes Section 232 tariffs. The Portman-Jones and Kind-Walorski bills tighten Section 232 rules to ensure it is only used for true national security purposes while taking into consideration a number of economic and security concerns. To do so, the legislation instructs the Department of Defense to investigate possible threats, and, when a legitimate threat is identified, asks the Department of Commerce to develop recommendations to respond. It also enhances the role Congress plays in the Section 232 process.

Section 232 was created by Congress to combat trade issues that pose a national security threat. In recent years, this process has been used to levy duties on imports of steel and aluminum from Mexico and other countries. In response, Mexico imposed retaliatory tariffs on a range of U.S. goods, including cheese. Those retaliatory tariffs have been a heavy weight on U.S. cheese exports to our largest export market. An economic study released by Informa Agribusiness Consulting estimates lost dairy exports of $1.1 billion over five years unless those tariffs are dropped. To date, the U.S. government has refused to remove the steel and aluminum tariffs and as such, Mexico has maintained its retaliatory tariffs.

“Dairy prices have steadily fallen since Mexico imposed its tariffs, harming farmers,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “Exports to our most important market are being threatened, hurting dairy businesses and the thousands of Americans they employ.”

“Agriculture is being hurt by retaliatory tariffs; the bill’s sponsors should be applauded for finding a common-sense process to a complex issue,” said Tom Vilsack, chairman and CEO of the U.S. Dairy Export Council. “It protects one of the president’s tools to combat threats to our national security while allowing for the full consideration of true safety and economic factors at play.”

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The U.S. Dairy Export Council is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products. USDEC accomplishes this through programs in market development that build global demand for U.S. dairy products, resolve market access barriers and advance industry trade policy goals. USDEC is supported by staff across the United States and overseas in Mexico, South America, Asia, Middle East and Europe. The U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.org.

The National Milk Producers Federation (NMPF), based in Arlington, Va., develops and carries out policies that advance the well-being of U.S. dairy producers and the cooperatives they collectively own. The members of NMPF’s cooperatives produce the majority of the U.S, milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more on NMPF’s activities, visit www.nmpf.org.

Two large dairy-importing markets present promising opportunities for the U.S. dairy industry in 2019. One, Japan, ranks just behind China as a buyer of U.S. dairy. The other, the United Kingdom, is a sizable dairy purchaser that gets a large share of those suppliers from Europe — though that may be changing soon.

NMPF’s goals on Japan include expanding existing market share and becoming a key foreign supplier to fill the country’s growing demand. These goals are particularly urgent this year as Europe, Australia and New Zealand have new trade deals with Japan, making it easier to sell into a market that imported nearly $1.2 billion worth of cheese in 2017 alone.

A study from the U.S. Dairy Export Council released in January projected that new trade agreements between Japan and other countries will put U.S. dairy exports at a competitive disadvantage, making a U.S.-Japan accord an urgent priority for dairy producers this year.

Lost sales in Japan for U.S. dairy exports may total $5.4 billion over 21 years without any action to rectify the current imbalance in trade access, according to the study conducted by Tokyo-based Meros Consulting. In contrast, the United States could roughly double its market share with a level playing field, according to the study, which was conducted by Tokyo-based Meros Consulting.

“These agreements will give our competition a significant economic advantage that will enable them to increase their market share in Japan, costing the U.S. dairy industry billions of dollars in lost sales,” said Tom Vilsack, USDEC president and CEO. “U.S. dairy farmers and processors strongly support the Administration’s launch of trade talks with Japan. We hope this report provides fresh ammunition to our negotiators about why a strong U.S.-Japan agreement is so important for American agriculture.”

U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe announced plans to launch trade talks last September. But progress was delayed by the government shutdown, which slowed U.S. preparation, and by renewed U.S. focus on trade negotiations with China. NMPF is geared up to support the U.S. Trade Representative (USTR) in negotiations by providing input to the Trump Administration on dairy priorities; educating congressional allies on what dairy is looking for; and working with the U.S. food and agriculture community to push for a swift, yet strong, deal with Japan. In doing so, NMPF is fighting to preserve and grow exports.

“U.S. dairy farmers are facing economic hardships, and expanding opportunities overseas is the best way to counter that,” said Jim Mulhern, president and CEO of the National Milk Producers Federation (NMPF). “A trade deal with Japan that significantly expands dairy access would make 2019 a brighter year.”

While Japan is the fourth-largest destination for U.S. dairy products, the United States currently sells close to nothing to the United Kingdom. America exported just $7 million worth of dairy products to the island nation in 2017, while importing $76 million during the same period. NMPF believes that Brexit and a U.S.-U.K. free-trade agreement can change that dynamic.

NMPF has told the administration this lopsided trade dynamic is driven by disparities in market access opportunity created by current tariff and nontariff policies – not a lack of interest or availability of product. NMPF has urged the removal of those barriers to level the playing field for U.S. suppliers. In comments filed with the USTR in December, NMPF noted:

“It is our hope that post-Brexit, the UK – traditionally a champion of free trade and of a science-based approach to decision making – can forge its own regulatory environment in a way that is more conducive to fair trade in safe food products than is the current EU regime. If that is the path the UK pursues, we believe that there is strong potential to expand bilateral dairy trade and bring benefits on both sides of the Atlantic.”

NMPF staff drove home this point and detailed how to get there in testimony at a USTR hearing on the U.S.-Japan agreement at the end of the month.

This year presents encouraging opportunities to gain momentum in negotiations with both Japan and the United Kingdom, making an investment in improved trade relations a worthwhile effort.

NMPF welcomed the introduction at the end of January of legislation sponsored by Reps. Glenn Thompson (R-PA) and Collin Peterson (D-MN), chairman of the House Agriculture Committee, that would allow whole milk in school nutrition programs.

The Whole Milk for Healthy Kids Act of 2019 (H.R. 832) has eight other co-sponsors, including Rep. Mike Conaway (R-TX), ranking Republican on the House Agriculture Committee.

Adding whole milk to school menus reflects research showing that such products benefit children and gives school administrators one more tool with which to develop healthy eating habits. NMPF jointly with the International Dairy Foods Association spoke out in support of the bill.

“Whole milk provides yet another way for children to receive dairy’s nutritional benefits as part of a healthy eating pattern,” said Jim Mulhern, president and CEO of NMPF. “This bill encourages the proper nutrition they need to lead healthy lives.”

The bill’s introduction comes after  regulatory changes finally return low-fat flavored milk in the school breakfast and lunch programs. Milk has been an integral part of school meal programs since they began, and NMPF has continually explained to policymakers that greater milk consumption equals better nutrition for America’s kids.

New legislation introduced in mid-January would address dairy farm labor needs by reforming the immigration system.

The Agricultural Worker Program Act, introduced in both chambers of Congress, would provide farmers with access to a legal workforce, a key element in the solution to the dairy industry’s workforce challenges. Rep. Zoe Lofgren (D-CA) and Senate Judiciary Committee Ranking Member Dianne Feinstein (D-CA, the bill’s lead sponsors, have long been involved in the immigration policy debate.

“NMPF is eager to work with Congress on this issue, as we seek to establish a program for both current and future agricultural workers, which is another critically important component of the debate,” said Jim Mulhern, president and CEO of NMPF. “This bill enables that conversation to start and we commend its introduction.”

A new year always brings hope, but dairy’s economic conditions remain difficult. In response, NMPF has continued seeking ways to get the best policy solution to help dairy farmers – the dairy provisions of the new farm bill – off the ground and into effect. It’s been a greater challenge than we’d hoped because the recent government shutdown took resources and attention away from USDA implementation of the new legislation that will provide greater stability for dairy finances.

But with the shutdown’s end – at least for now – taking shape late last month, we decided it was time to write Agriculture Secretary Sonny Perdue, noting that our members were eager to see the dairy reforms put in place. Because the new Dairy Margin Coverage program is, essentially, a revision of the previous Margin Protection Program, we suggested there are ways to fast-track implementation.

“Dairy farmers have just completed a fourth consecutive year of depressed milk prices and are facing an uncertain outlook for 2019,” I wrote in a letter to Secretary Perdue on Jan. 25. “The significant dairy policy reforms we worked successfully with Congress to enact in the new farm bill will be critically important to helping farmers better manage difficult periods of low margins.”

The 25^th was a Friday, the day the shutdown ended. Before federal employees had even reported to work on Monday, the Secretary had reaffirmed that yes, USDA aims to start work on implementing the DMC immediately. We appreciate the department’s responsiveness, and we look forward to working with them on ways to make sure that dairy producers see farm bill benefits fast. This is an important reminder that, as difficult as the economy remains for dairy producers, we can still make progress in policy work even during what are, in some ways, unprecedented times in Washington.

We are moving forward on several fronts, the first of which is implementing the farm bill. Securing well-written USDA rules will be an important part of any dairy farm’s financial toolkit as we try to get past tough times of the last few years and experience a more prosperous 2019. As soon as decision-making tools are available, we will alert our members and help walk them through the process. Stay tuned for new materials and expect positive developments in the weeks ahead.

We are also engaging Congress and trade authorities to support deals that are good for dairy and press for resolution of disputes that are holding us back. A crucial piece of unfinished congressional business from last year is the ratification of the U.S.-Mexico-Canada Agreement governing North American trade. We support its ratification for the gains and certainty it will provide. We are also looking ahead to future agreements, such as a deal with Japan that we need to increase our market access as competitors gain tariff advantages, and a potential accord with the post-Brexit U.K.

Still, we need immediate action to lift retaliatory tariffs on dairy from Mexico and China. Hoped-for gains from the USMCA won’t be realized as long as the Mexico tariffs are in place. The simple fact is we need greater export opportunities and we’re wary of entanglements that stifle our progress. Free and fair trade boosts our bottom lines – and our bottom line is, we need freer and fairer trade. Now.

We also won’t lower our efforts on one of our longest-running, most important issues: integrity of dairy standards of identity and clarity on dairy-product labeling. While the U.S. Food and Drug Administration’s comment period on fake milk labeling concluded on Jan. 28 (thank you for filing yours!), that milestone only completed one leg of a journey that won’t end this winter. Once FDA has its comments, it still needs to take final action that protects consumers by enforcing dairy’s standard of identity. We are preparing more materials to outline what we know FDA should do, and we will continue to impress upon lawmakers and regulators that this issue isn’t fading. Expect us to keep the volume high on this issue in the coming months. The next phase is about to begin.

The issues above are crucial for our industry, and our goals for addressing them are ambitious. And the list above is far from exhaustive. We are looking forward to the U.S. Environmental Protection Agency releasing its revised Waters of the U.S. rule that was delayed by the shutdown. We continue work on the rollout of Farm 4.0 in 2020, which will be crucial to meet our members’ labor and workforce needs. And we remain in close coordination with allied organizations, both inside and outside dairy, to tell our positive story and draw attention to policy needs that affect producers and consumers here and abroad.

Our efforts to help our members are only more important as we seek to advance our industry in challenging times. We know this much: When we speak to important policymakers on Capitol Hill or at USDA or FDA, they listen. That’s a tribute to the strength of dairy’s voice, and it augurs hope as we work together toward our common goals.

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