India and Indonesia are using policy tools to impact market access for American dairy producers, and because of this, should not receive trade benefits under the U.S. Generalized System of Preferences (GSP), according to testimony last month from NMPF’s Shawna Morris before the U.S. Trade Representative (USTR).

Speaking on behalf of NMPF and the U.S. Dairy Export Council (USDEC) on June 19, Morris recommended that USTR ask President Donald Trump to suspend GSP benefits that would allow in certain products duty-free to participants in the program. India, she said, has a 14-year record of using unscientific sanitary and phytosanitary requirements to erect barriers to dairy trade in a way that fails to comply with the GSP program’s congressionally mandated requirements.

“In practice, [India’s] requirements have created an unjustified impediment to U.S. exports despite extensive and creative efforts spanning three administrations to reopen the market,” she said. “It is unfortunate that India has not chosen over the past 14 years to engage constructively with the U.S. to resolve this issue in full and reopen the market. U.S. dairy products are safely consumed by people in countries all around the world and we would very much like to offer the people of India the choice to consume our products, as well.”

In 2003, India introduced new requirements for the government-issued health certificates that must accompany dairy imports. The United States has pursued resolution of one challenge after another in the hopes of re-opening access to India for U.S. dairy products. Those efforts included data, evidence and solution-based proposals to work through each topic, but the market remains closed to most U.S. dairy products due to continued intransigence by India on certain animal feeding provisions that go well beyond international guidance.

During the day-long hearing on various countries’ GSP standing, Morris also testified on one of the dairy industry’s most important export markets in Southeast Asia: Indonesia. Indonesia has long been a strong U.S. trading partner. In 2017, the United States exported $133 million in dairy products to Indonesia. It has been the third-largest market for skim milk powder and is a top-10 U.S. dairy export market. But new local content policies for dairy are intended to curtail imports from a variety of sources, including the United States.

In 2017, the Indonesian Ministry of Agriculture issued a new regulation that required local milk processors to procure locally-produced milk or invest in ways to support the local dairy farming sector. Businesses that only import, and do not have manufacturing facilities in Indonesia, are also required to enter into agreements to provide support to or promote the local dairy industry. U.S. companies have reported being required to submit such “partnership plans” to be assured of access to import licenses in 2018.

The United States has been working extensively since 2017 to convey concerns about the policy to Indonesia. To date, however, Indonesia has not yet agreed to change course. “We are spotlighting our concerns here today through this process in the hopes of preserving what has long been a positive relationship on dairy trade, rather than allowing a deterioration of that dynamic,” Morris said.

NMPF’s efforts to elevate the dairy industry’s concerns with Canada’s harmful dairy trade practices have had a noticeable impact in the White House: during the past month, President Donald Trump repeatedly pointed out the excessive nature of Canada’s exorbitant dairy tariffs, a move that shows that the administration is intent on rectifying the current dairy trade imbalance with Canada.

Although significant work remains in the North American Free Trade Agreement negotiations, Canada’s dairy trade barriers have become a key focal point within talks over a modernized NAFTA. With no end yet in sight, NMPF and its members continue to stress the importance of addressing Canada’s Class 7 pricing scheme and exorbitant tariffs that deny the ability of the U.S. industry to fairly compete.

President Trump’s recent statements came after his previous acknowledgement that Canada’s other non-tariff policies (primarily Class 7) have been harmful to the U.S. dairy industry. While on a trip to Canada last month, Agriculture Secretary Sonny Perdue also noted that “…they can’t use their supply management system to negatively affect our dairy producers south of the border.” While there, Secretary Perdue also reiterated his previous comments that Canada’s supply management system needs to manage its supply “…so it’s not over produced and spilling over into the export market.”

In addition to communicating with the White House and Congress, NMPF’s education efforts have also been directed at helping shape public support for these priorities by ensuring the news media is armed with the facts and why they are so important for American dairy farmers. As part of that broad-based outreach effort, NMPF President and CEO Jim Mulhern provided U.S. dairy’s perspective at a highly- attended NAFTA panel discussion hosted by the Washington International Trade Association on June 21.

In his remarks, Mulhern highlighted the trade differences between Mexico and Canada as the United States works to improve NAFTA. In Mexico, he said, the United States has historically enjoyed a two-way street when it comes to dairy trade.

“In that market, we’ve worked collaboratively with our industry colleagues there to grow total dairy demand and have established a critical partnership that has allowed our industry to weather the various policy ups and downs driven by non-dairy issues over the years,” Mulhern said. Maintaining that relationship is critical in a NAFTA rewrite.

NMPF’s goals with Canada are simple, he said. “With respect to tariffs, we want parity for dairy; we want what virtually every other sector of the U.S. and Canadian economies has enjoyed for decades – free trade between our two countries. In the context of a free trade agreement, that is about as traditional a goal as it gets. And we need to put a stop to Canada’s habitual use of policy tools to thwart trade, such as the Class 7 pricing scheme. Canada started the program over a year ago, and the U.S. is not the only nation with concerns about Class 7.”

Two of U.S. dairy’s top trading partners, Mexico and China, have enacted new tariffs against U.S. dairy products in response to American tariffs on Mexican steel and aluminum, as well as soon-to-be imposed tariffs on a variety of imports from China. National Milk, in collaboration with the U.S. Dairy Export Council (USDEC), has raised concerns about the financial impact of these actions on America’s dairy farms.

In the case of Mexico, retaliatory tariffs are already beginning to deliver a blow to the U.S. dairy sector, which is increasingly reliant on exports. On June 5, Mexico, dairy’s the largest cheese export market for American producers, applied tariffs of 10-15 percent on various U.S. cheeses. Those cheese tariffs were increased further to 20-25 percent on July 5. Through joint work with USDEC, NMPF secured a phase-in of these tariffs to soften the immediate blow, but the impact is still a significant setback for U.S. dairy farmers.

NMPF, again in collaboration with USDEC, helped collect farm group and cheese processor signatures on a broad-based industry letter sent to President Donald Trump last month that outlined concerns about the impact of Mexican cheese tariffs, and requested that the administration suspend the steel and aluminum tariffs on Mexican products in light of their constructive engagement on negotiations over the North American Free Trade Agreement (NAFTA). NMPF supported USDEC in helping disseminate news of the letter to ensure that a wide range of policy-makers were aware of this important message. NMPF believes it is essential to focus U.S.-Mexico trade discussions on restoring duty-free trade, which is vital to achieving an updated NAFTA.

In China, retaliatory tariffs of 25 percent on U.S. goods including milk powder, cheese, whey, yogurt, butter and butter oil, fluid milk and cream will start on July 6. China is the industry’s second-most important export market, last year accounting for a total of $577 million in U.S. dairy exports. These tariffs will make U.S. dairy exports considerably more expensive than those from our competitors also selling in China.

The one-two punch of Mexico’s retaliatory tariffs on cheeses and China’s subsequent tariff announcement sent U.S. dairy futures plummeting last month. Based on futures price expectations from a few days before the Mexico announcement to a few days after the one from China, the average price impact during the second half of 2018 reflected a loss of about $1.10/cwt per month. Dairy futures losses already exceed $2 billion for the balance of 2018.

The U.S. House of Representatives failed last month to pass an immigration reform bill, as members of Congress considered two different versions, but couldn’t muster the votes to pass either one. The outcome means dairy farmers and other agricultural employers are again left without a functioning agricultural worker program – although House leaders have committed to a separate vote on a guest worker visa program once Congress returns to Capitol Hill in July.

As the controversial issue of migrant families being separated at the U.S.-Mexican border drew intense scrutiny in recent weeks, members of Congress were faced with increasing public pressure to deal with the separation policy, along with establishing a reprieve for the “Dreamer” immigrants that are seeking longer-term legal protections.

House leaders packaged together several immigration policy items in both bills the chamber considered in June.  The initial bill contained several agriculture workforce provisions backed by NMPF, while the second one did not. After the first bill faltered, National Milk urged lawmakers to include a farm guestworker visa program in the second version of the immigration legislation, which House leaders brought to a vote on June 27. Continued infighting between House Republicans led to the bill’s demise. However, NMPF noted appreciation for the efforts of key members of Congress to improve the agriculture workforce provisions in the run-up to the second vote.

President and CEO Jim Mulhern expressed dissatisfaction that Congress again failed to pass any immigration measure, despite the palpable need to create an agriculture guestworker program.

“We are deeply disappointed that a small group of House members chose to undermine this process by refusing to compromise, undermining good faith negotiations and ultimately preventing forward progress,” Mulhern said. “This kind of hostage-taking cannot continue if Congress is to make meaningful progress on a critical issue for our country.”

Still, Mulhern remained appreciative of the congressional allies who fought to address farm workforce needs in the immigration policy process, as it “demonstrated the need to tackle the farm worker issue sooner rather than later.”

“We commend Reps. David Valadao (R-CA), Dan Newhouse (R-WA) and Jeff Denham (R-CA) for their exemplary negotiations on this bill. We also thank House Judiciary Committee Chairman Bob Goodlatte (R-VA) for his ongoing efforts to establish a farm guestworker visa program, as well as House Agriculture Committee Chairman Mike Conaway (R-TX) for his work to secure key improvements.”

Adoption of a 2018 Farm Bill took two major steps toward realization in late June when both the U.S. House of Representatives and the Senate passed their versions of the bill. The two chambers must now reconcile the two versions through a conference committee process before voting on a final, compromise version.

Both bills contain several significant provisions beneficial to U.S. dairy farmers, among them improvements to the dairy safety net. Both versions raise the maximum covered margin in the dairy Margin Protection Program (MPP) to $9/cwt. and broaden the range of a farm’s milk production history that can be insured. Such changes will improve the program for dairy producers of all sizes. The bill also includes a provision to improve milk price risk management, reflecting an agreement reached between NMPF and the International Dairy Foods Association.

These improvements in dairy policy resulted from NMPF’s engagement with House and Senate Agriculture Committee leadership, as well as other key congressional allies. On the House side, NMPF thanked House Agriculture Committee Chairman Mike Conaway (R-TX) and Ranking Member Collin Peterson (D-MN) for their work to improve dairy risk management programs. In the Senate, the Federation commended Agriculture Committee leaders Sens. Pat Roberts (R-KS) and Debbie Stabenow (D-MI) for their leadership, as well as Sens. Dianne Feinstein (D-CA) and John Cornyn (R-TX) for their efforts to improve dairy policy for producers of all sizes.

“Dairy farmers, along with many other food producers, need a better safety net as they struggle with a very daunting economic situation,” said NMPF President and CEO Jim Mulhern. “It was critical that both the House and Senate pass their bills in June, which should give them sufficient time to generate a compromise bill that Congress can approve by September 30.”

The two bills also contain new elements in their respective conservation titles, which will help producers access technical and financial assistance to carry out multiple conservation practices on their land and water. Under the trade titles, both Farm Bills authorize the trade promotion programs that are very useful to dairy farmers and their cooperatives. The two bills also feature helpful provisions intended to increase fluid milk consumption.

ARLINGTON, VA – Any regulatory standard for the labeling of bioengineered food ingredients must ensure that consumers receive clear, accurate information about the foods they eat, and not stigmatize bioengineering when scientific evidence proves otherwise, according to the National Milk Producers Federation (NMPF).

As a member of the Coalition for Safe Affordable Food, NMPF was a signatory on comments submitted today that offered detailed input on the Agriculture Department’s (USDA) proposed rule to implement the National Bioengineered Food Disclosure Standard. The coalition comprises a variety of farm and food organizations that worked together to help pass the labeling law.

NMPF said it supports a science-based approach in determining how foods made using bioengineering should be regulated. Since bioengineered foods have repeatedly been found to be completely safe by both domestic and international science and research organizations, NMPF has said that a bioengineered labeling standard should focus on providing consumers accurate information, while discouraging misleading marketing tactics or meaningless absence claims.

“Food labels should not be used to scare consumers on purchasing decisions, especially with labels that suggest a distinction in which there is no real difference,” said NMPF President and CEO Jim Mulhern. “It is simply wrong to try to manipulate consumers through unfounded fears, and it’s not fair to the other food companies that don’t engage in such dishonest marketing.”

In addition to supporting the coalition’s comments, NMPF filed its own set of comments to highlight several elements of the rule, including how it addresses the labeling of milk and meat from animals that consume bioengineered feed. Congress recognized when it passed the law that giving farm animals grains developed through biotechnology has no effect on the animals or products derived from them, NMPF has said, and the standard should reflect this.

“Some food companies are implying that their products derived from animals that have not been fed bioengineered grain are better or safer. That is untruthful, that is false, that is misleading,” said NMPF. “USDA should express its disdain for such contemptuous and wrongful marketing practices in the strongest way possible.”

Also an issue was USDA’s failure to exempt bioengineered enzymes from triggering disclosure. Over 60 countries with a bioengineered food disclosure exempt such enzymes, often used in the production of cheese. NMPF said USDA should ensure the United States is consistent with other countries.

The comments also touched on NMPF’s concerns with voluntary disclosures and their potential to be false and misleading. A qualifying statement, NMPF said, would properly educate the consumer and thus alleviate this concern. As an example, the Federation proposed the following: “No material difference has been shown between ingredients created using bioengineering and ingredients created without bioengineering.”

Finally, National Milk stressed that the bioengineered food disclosure standard is really a measure to regulate food marketing, not food safety. Therefore, in determining the level of a substance needed for a product to be considered bioengineered, NMPF endorsed the coalition’s suggestion that USDA use a 5-percent threshold for inadvertently bioengineered ingredients and 0.9 percent for intentionally bioengineered ingredients.

“Our response to USDA’s proposed rule is meant to help create a fair and honest marketplace for consumers and companies,” said Mulhern. “We hope the department will heed our concerns and ensure any future labeling standards do not stigmatize a perfectly safe scientific process.”

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they 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 our website at www.nmpf.org.

The increasing number of news stories in the past year focused on dairy farmers losing their milk markets has brought into sharp focus the crucial role cooperatives play in protecting their members’ economic interests.  As economic disruptions among some private milk handlers have cascaded downstream, hundreds of independent dairy farmers have been left in the lurch by their buyers. Some co-ops have lost contracts, as well. While both have been hurt, the greatest harm has befallen those independent direct-ship producers who were not co-op members. Many are now finding it difficult to secure a new buyer in a saturated market.

The affected cooperatives have scrambled to find new outlets for their displaced milk, but finding markets for milk is what cooperatives do, day in and day out. Farmer-members know that, because they have invested in the co-op; their milk has a home, seven days a week, 365 days a year. Even in those temporary situations where milk deliveries exceed processing capacity and some milk must be dumped, the co-op members know they still have steady, predictable access to markets for their milk, thanks to the crucial role played by cooperatives.

There are some parallels in the current situation to what farmers faced more than 100 years ago, when co-ops first rose to prominence in the U.S. dairy marketplace. Even back then, when milk marketing was a much more local enterprise, the milk (in cans, not tankers) was leaving farms on a daily basis and farmers were at a competitive disadvantage to processors who, because they were fewer in number and purchased large milk volumes, could drive hard bargains with their suppliers, with their highly perishable and bulky product to sell.

This competitive dynamic not only led farmers to band together to start up cooperative businesses, it also prompted those co-ops to form the National Milk Producers Federation in 1916 to have representation in Washington.  Twenty years later, NMPF led the charge to create the federal milk marketing order system to level the playing field for farms of different sizes and in different parts of the country. This has ensured a more equitable means of reaching consumer markets for farms of varying sizes, and has harmonized pay prices among producers, regardless of the end use of their milk.

Milk marketing today isn’t the small-scale, county-by-county business it once was. For that matter, neither is food retailing, as producers – regardless of commodity – must contend with the market dominance of a handful of powerful manufacturers, supermarket chains and foodservice enterprises that loom large in scale over any one dairy cooperative.

The need for critical mass among farmers as a countervailing force in the marketplace is one reason why 81 percent of the milk produced in the United States is marketed through cooperatives. That figure hasn’t changed markedly in the past two decades, in fact it’s even higher than it was 75 years ago. The United States also has a wide range of dairy farm sizes which are able, through cooperatives, to work together to market their milk.

In filling this crucial role of counterbalancing the power of milk buyers, cooperatives have become one of the most important parts of the total marketing channel that delivers fresh milk and dairy products from farm to table. Dairy cooperatives are the primary assemblers of milk from individual dairy farms for delivery to plants – either co-op or privately owned – where it is processed into a wide variety of products.

Cooperatives operate complex logistical operations that balance the supplies of milk coming from the nation’s dairy farms with the delivery requirements of the nation’s dairy product processors, requirements that change seasonally, weekly, daily and even hourly. There are economic costs borne by cooperatives for this market balancing function, but the farmer-member benefit is a daily market for all their milk – a market that some independent dairymen tragically no longer have.

The role of cooperatives is a big reason why the dairy farmer’s share of the retail dollar is higher than for most other food commodities. It’s also a reason why more than 95 percent of dairy operations remain family-owned and controlled businesses, rather than just serving as contract suppliers to a vertically owned processor, as is common across the livestock sector.  Put simply, the cooperative business structure is good for farm families and consumers.

The strong role of dairy co-ops also allows them to form endeavors such as Cooperatives Working Together (CWT), the 15-year-old self-help program that its members recently voted to extend for an additional three years. CWT is a unique cooperative venture that allows its members – and only those farmer-owned businesses – to pool their resources to bolster exports without the red tape that comes with government programs.  We know from repeated comments that dairy exporters in other nations are envious of CWT’s role in helping U.S. products compete and win business deals around the world.

Looking back on my nearly 40 years in dairy, it’s clear to me that we’ve taken for granted the critical role co-ops play in our industry.  Cooperatives can’t defy market forces – the economic laws of supply and demand are real, and we see them play out constantly. But for more than 100 years, dairy co-ops have been providing consistent markets for their members who produce the most highly perishable of all major commodities. Today, at a time of lost markets and economic stress in the dairy producer community, that’s a lesson worth remembering.

ARLINGTON, VA – The National Milk Producers Federation (NMPF) today lauded passage of the Senate version of the 2018 Farm Bill by a bipartisan vote of 86 to 11. With the House having adopted its version of the Farm Bill on June 21, the two chambers must now reconcile differences in the two bills in a conference committee later this summer.

NMPF thanked Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) for their leadership in finalizing the measure in a timely manner, and commended Stabenow for her work to secure $100 million in additional funding for the dairy title baseline.

“Sens. Roberts and Stabenow have crafted a bipartisan Farm Bill that includes important dairy policy improvements at a time when many farmers are facing a very tough economic time,” said NMPF President and CEO Jim Mulhern. “We are pleased that the two chambers now have the opportunity to harmonize their versions to produce a final bipartisan, bicameral bill that can be signed into law by Sept. 30.”

The Senate version of the Farm Bill contains enhancements to the dairy Margin Protection Program (MPP) sought by NMPF, including improved coverage levels and greater program flexibility. The bill – which renames the MPP as the “Dairy Risk Coverage” program –  raises the maximum covered margin to $9/cwt. and adjusts the minimum percentage of milk that can be insured. It also includes an important agreement reached between NMPF and the International Dairy Foods Association on price risk management. NMPF commended Sens. Dianne Feinstein (D-CA) and John Cornyn (R-TX) for their efforts to strengthen dairy policy for producers of all sizes, and looks forward to continuing this work as the process continues.

The Senate bill also contains conservation provisions that will help producers access technical and financial assistance to carry out conservation practices on their operations. Sen. Patrick Leahy (D-VT) added a helpful amendment to give dairy farmers greater flexibility in meeting their goals under the Environmental Quality Incentives Program.

Under the trade title, the Farm Bill re-authorizes the trade promotion programs that are critical to dairy farmers and their cooperatives. Mulhern said NMPF also appreciates the successful efforts of Sens. Joni Ernst (R-IA) and Bob Casey (D-PA) to include provisions in the bill that promote the consumption of fluid milk. NMPF also thanked Sen. Tammy Baldwin (D-WI) for including provisions of her Dairy Business Innovation Act in the bill to help foster innovation and new opportunities for the dairy industry.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they 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 our website at www.nmpf.org.

From Jim Mulhern, President and CEO of NMPF

ARLINGTON, VA – “We are extremely disappointed that Congress did not include an agricultural guestworker element as part of its compromise immigration reform bill that ultimately failed today. The U.S. dairy industry continues to face serious challenges obtaining and maintaining a reliable workforce, and we were hopeful that we can achieve a better outcome for farm employers.

“We were encouraged by negotiations over the weekend that would have added a farm guestworker visa program, including multiple NMPF-backed improvements. This effort to expand the appeal of the overall measure demonstrated the need to tackle the farm worker issue sooner rather than later. We commend Reps. David Valadao (R-CA), Dan Newhouse (R-WA) and Jeff Denham (R-CA) for their exemplary negotiations on this bill. We also thank House Judiciary Committee Chairman Bob Goodlatte (R-VA) for his ongoing efforts to establish a farm guestworker visa program, as well as House Agriculture Committee Chairman Mike Conaway (R-TX) for his work to secure key improvements. Finally, we wish to thank the many members who elevated and prioritized the needs of dairy farmers in conversations with House leadership and committee chairmen over the course of many months.

“However, we are deeply disappointed that a small group of House members chose to undermine this good work by refusing to compromise, undermining good faith negotiations and ultimately preventing forward progress. This kind of hostage-taking cannot continue if Congress is to make meaningful progress on a critical issue for our country. We know there are many members in both parties who are eager to forge solutions to these complicated issues, and we are hopeful that this is not the end of the process. Dairy cannot wait any longer.

“We hope that the agriculture guestworker provision will be brought to the House for a vote later this summer as we continue to work with our congressional allies to create legislation that addresses our concerns.”

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they 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 our website at www.nmpf.org.

(Washington, D.C. – June 26, 2018) More than 60 companies and organizations representing American dairy farmers and cheese makers commended President Donald Trump today for his efforts on equitable trade and for insisting that Canada halt its market-distorting dairy practices. At the same time, the companies urged the administration to reconsider its imposition of new tariffs on Mexico in light of that country’s constructive engagement in North American Free Trade Agreement (NAFTA) negotiations and the harm that Mexico’s retaliatory tariffs will have on U.S. dairy’s trade with its largest and most reliable market.

In retaliation for U.S. actions on steel and aluminum imports, Mexico recently added new tariffs – some of which will reach as high as 25 percent next month – on American-made cheeses, among other products. These tariffs will certainly diminish demand for high-quality dairy products that are produced across the United States. The production of cheese and other dairy products in the U.S. supports nearly 3 million American jobs. The additional Mexican duties also will allow the European Union, which recently signed a bilateral free trade agreement with Mexico, to take hard-earned market share from American dairy companies.

In their letter to President Trump, the companies asked the administration to work collaboratively with Mexico and suspend the steel and aluminum tariffs on Mexican products until the negotiations for a modernized NAFTA have been concluded.

“Our industry recognizes that the U.S. must be resolute in ensuring our trading partners uphold their end of the bargain with us,” they said. “We trust that your administration’s skilled staff can find a way to resolve this issue, given Mexico’s strong commitment to working with the U.S. to further improve U.S.-Mexican trade.”

Mexico has been a model for open dairy trade with the United States. Through investment and cooperation, the United States has become Mexico’s biggest dairy supplier, with cheese purchases last year totaling nearly $400 million. Today, Mexico accounts for about one-quarter of all U.S. dairy exports. Until the tariffs were imposed, all U.S. dairy products enjoyed duty-free access into the Mexican market.

Dairy Organizations Agree: Preserve Market Access

The dairy industry’s trade associations – the U.S. Dairy Export Council (USDEC), the International Dairy Foods Association (IDFA), and the National Milk Producers Federation (NMPF) – strongly support the goals set forth in the letter to President Trump.

“Our first four months of 2018 showed a strong expansion in the volume of U.S. dairy exports into Mexico,” said Tom Vilsack, president and CEO of USDEC. “But these tariffs have introduced uncertainty and concern. A renegotiated NAFTA 2.0 would go a long way toward restoring our industry’s momentum.”

“Maintaining dairy market access in Mexico is IDFA’s number one priority in the NAFTA modernization efforts, specifically because the duty-free access has allowed trade between our countries to flourish and Mexico to become our number 1 export market,” said Michael Dykes, D.V.M., president and CEO of IDFA. “We’re confident that the administration and U.S. negotiators will find a way to preserve this vital partnership, which allows the U.S. dairy industry to create more jobs and drive our economy.”

“After rising during the spring, dairy futures markets and the farm-level milk price outlook for the rest of 2018 have deteriorated significantly in recent weeks, in reaction to the prospects of lost dairy export sales,” said Jim Mulhern, president and CEO of NMPF. “No one wants to see lasting damage to our farmers result from lost access to our top foreign market. That’s why resumption of tariff-free trade between the U.S. and Mexico is so critical.”

Read the letter here.

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About USDEC
The U.S. Dairy Export Council (USDEC) 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.

About IDFA
The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industry, which supports nearly 3 million jobs, generates more than $39 billion in direct wages and has an overall economic impact of more than $628 billion. IDFA is the umbrella organization for the Milk Industry Foundation (MIF), the National Cheese Institute (NCI) and the International Ice Cream Association (IICA). IDFA’s members range from large multinational organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese, ice cream and frozen desserts produced and marketed in the United States and sold throughout the world. The diverse membership includes numerous food retailers, suppliers and companies that offer infant formula and a wide variety of milk-derived ingredients. Visit IDFA at www.idfa.org.

About NMPF
The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they 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 our website at www.nmpf.org.

ARLINGTON, VA – The National Milk Producers Federation (NMPF) today commended House passage of the Farm Bill as a key step toward enacting a bipartisan, bicameral bill into law by Sept. 30.

Among the provisions of significance to the U.S. dairy industry are improvements to the dairy safety net. The measure raises the maximum covered margin in the dairy Margin Protection Program (MPP) to $9/cwt. and provides increased flexibility in the amount of milk that can be insured. NMPF said the changes will improve the program for dairy producers of all sizes. The bill also includes provisions to improve milk price risk management, reflecting an agreement reached between NMPF and the International Dairy Foods Association on changes to federal milk marketing orders.

“While there are a few issues that will need to be addressed when the House reconciles its version of the Farm Bill with the one the Senate is considering, we are pleased that the process continues to move forward with this vote,” said NMPF President and CEO Jim Mulhern.

While today’s vote was largely divided along party lines, Mulhern said the bill’s dairy provisions were the product of bipartisan efforts. “We thank Chairman Mike Conaway (R-TX) and Ranking Member Collin Peterson (D-MN) for their continuing work to improve dairy risk management programs.”

The House bill also addresses several other NMPF priorities. The conservation title will help producers access technical and financial assistance to carry out multiple conservation practices on their land and water. The bill includes an amendment from Rep. Mike Bost (R-IL) to increase the emphasis on nutrient recovery technologies within the conservation title.

Under the trade title, the Farm Bill authorizes the trade promotion programs that are critical to dairy farmers and their cooperatives. The bill also features helpful provisions intended to increase fluid milk consumption, including an amendment by Rep. Glenn ‘GT’ Thompson (R-PA) to expand the varieties of milk offered in schools.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they 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 our website at www.nmpf.org.