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NMPF Cheers EPA Efforts to Exempt Manure Air Emission Reporting Under EPCRA

Posted on by Alan Bjerga

ARLINGTON, Va. — The National Milk Producers Federation today commended the Environmental Protection Agency for issuing a final rule to codify its earlier interpretation that air emissions from manure are not reportable under the Emergency Planning and Community Right-To-Know Act.  The action successfully concludes a two-year battle in which NMPF was involved at every step.

“We are pleased with the outcome of EPA’s painstaking efforts,” said Jim Mulhern, NMPF president and CEO. “This final rule codifies what’s been the right thing to do all along.”

NMPF has been engaged with this effort since April 2017, filing comments as recently as last December supporting EPA’s efforts last fall to modify its regulations to eliminate the reporting of ammonia or hydrogen sulfide air emissions from manure. EPA concluded in Oct. 2017 that air emissions from manure did not need to be reported under EPCRA while signaling it would explain its thinking on the issue through rulemaking. EPA’s assessment largely was based on the conclusion that the air emissions were a result of “routine agricultural operations” exempt from EPCRA reporting.

EPA’s final actions with EPCRA is consistent with Congress’ recent action to exempt manure emissions reporting requirements under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).  NMPF supported that approach and noted that EPCRA’s legislative history showed that Congress did not intend for continuous air emissions reports to be filed under EPCRA if they were not required under CERCLA. NMPF has noted in its support for EPA that the emergency response community has said it doesn’t need these reports and that they impede their emergency response function.

NMPF anticipates the rule will be challenged in court.

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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.

Raise Your Milk Glasses, America: NMPF Shares the Facts on World Milk Day

Posted on by Theresa Sweeney

ARLINGTON, Va. – The National Milk Producers Federation is pointing out some key facts about U.S. dairy in observance of World Milk Day on June 1 and the National Dairy Month that follows.

The state of the industry

  • Total domestic consumption of milk has risen four of the past five years and reached a record in 2018.
  • While per-capita milk U.S. consumption has declined, consumption of non-fluid dairy products such as cheese have increased, with butter last year at its highest per-capita consumption in more than 50 years.
  • U.S. dairy export volumes reached a record in 2018, increasing 9 percent over the prior year despite stiff trade winds. The value of U.S. exports was $5.59 billion, 2 percent more than the prior year, despite trade disturbances that to date have cost farmers at least $2.3 billion in revenues.

Sustainability and animal welfare

  • The U.S. dairy industry contributes approximately two percent of total U.S. greenhouse gas emissions—the lowest average GHG intensity of milk production worldwide.
  • Fruits and vegetables, grains, and dairy are roughly equal in greenhouse-gas emissions.
  • Through the leadership of NMPF’s National Dairy Farmers Assuring Responsible Management (FARM) Program, which includes 98 percent of the U.S. milk supply, U.S. dairy producers are the first livestock animal care program in the world to be recognized for its animal welfare standards. FARM gained that recognition last year from the International Organization for Standardization, founded by the UN.

Consumer choice

  • Milk is consumers’ dominant choice compared compared to plant-based competitors. In a typical week, U.S. consumers buy more than 65 million gallons of milk, compared to about 6 million gallons of plant-based beverages. Milk also costs about 40 percent less, according to consumer sales and pricing data.
  • Milk is a key source of nine essential nutrients crucial to a healthy diet.

And, finally …

  • Milk is the product of a lactating animal, per the U.S. Food and Drug Administration’s unenforced rules.

“As World Milk Day is celebrated globally, remember some key facts,” said Jim Mulhern, president and CEO of NMPF. “Dairy has faced economic hardships these past few years, but hard-working producers stand strong behind a high-quality product. Thank a dairy farmer on World Milk Day, for feeding America and the world.”

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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.  For more, visit www.nmpf.org.

NMPF Urges the President to Throw Away Possible New Tariffs Against Mexico

Posted on by Theresa Sweeney

ARLINGTON, Va. – From National Milk Producers Federation President and CEO Jim Mulhern:

“Senator Chuck Grassley is right: Border security issues are border security issues, and trade issues are trade issues. New tariffs against Mexico are unlikely to secure the border, but judging from reaction on Capitol Hill, they may very well jeopardize the chances of passing the USMCA, a key White House priority and one that’s crucial for future agricultural prosperity.

“For dairy farmers, renewed turmoil with Mexico also threatens gains made earlier this month, when Mexico dropped retaliatory tariffs against U.S. cheese. Re-escalating trade tensions only harms farmers further, just when they were seeing glimmers of hope.”

NMPF estimates that producers have lost at least $2.3 billion in revenues through March due to higher tariffs against U.S. dairy, which has lowered milk prices for all producers.

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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 Statement on Federal Trade-Mitigation Package for Farmers

Posted on by Theresa Sweeney

ARLINGTON, Va. – From National Milk Producers Federation President and CEO Jim Mulhern:

“Dairy farmers have been harmed substantially by disrupted markets. We know that USDA is concerned about the damage being done to dairy farmers by ongoing tariff battles. We hope it will use the full range of tools available to provide a large segment of the payment in the first tranche to appropriately assist milk producers who have experienced a prolonged downturn in prices because of these conflicts,” he said. “We appreciate USDA’s concern for dairy’s needs, and we look forward to working with USDA, Congress and the White House as the department further develops its plans.”

NMPF estimates that producers have lost at least $2.3 billion in revenues through March due to higher tariffs against U.S. dairy, which has lowered milk prices for all producers.

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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 Celebrates Lifting of Tariffs Against U.S. Dairy; Hard Work Remains on Trade

Posted on by Theresa Sweeney

ARLINGTON, Va. – The National Milk Producers Federation today celebrated Mexico’s lifting of retaliatory tariffs against U.S. cheese exports. Still, hard work remains for lawmakers and officials to further improve the trade outlook for dairy farmers, with the U.S.-Mexico-Canada Agreement yet to be approved and a prolonged trade dispute with China clouding dairy exports.

“Dairy farmers have much to celebrate, with the resumption of normal business with our largest export partner,” said Jim Mulhern, president and CEO of NMPF. “To move forward in boosting exports, Congress needs to pass the USMCA, and administration officials need to resolve the latest impasse in U.S. negotiations with China in a way that’s favorable to producers. Meanwhile, trade negotiations with Japan and other key partners also must move ahead. The time for progress on all fronts is now.”

Mexico is the largest destination for U.S. dairy products, with Mexico purchasing $1.4 billion last year. Mexico’s retaliatory exports against dairy resulted from the U.S. imposition of tariffs against Mexican metals last year. After the three nations announced the end of the metal tariffs on Friday, the retaliatory tariffs were lifted shortly thereafter. Canada, the second-largest destination, also lifted its retaliatory tariffs against U.S. yogurt.

The USMCA, concluded last fall but still not voted on in Congress, would restore trade certainty with our largest export market and increase access to Canada’s market while making key changes to Canada’s trade-distorting dairy-pricing policies. Meanwhile, trade conflict with China, the third-biggest buyer of U.S. dairy, intensified last week. The escalation of trade tensions has left tariffs on U.S. dairy exporters in place, and China recently increased tariffs on U.S. lactose and infant formula, among other goods, showing continued trade damage to U.S. farmers.

The USDA is currently considering assistance to farmers harmed by trade-related actions. NMPF continues to advocate that the USDA develop a robust dairy package that reflects the damages producers have faced.

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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.

Dairy Industry Cheers Rollback of Tariffs That Bolsters USMCA Chances

Posted on by Theresa Sweeney

ARLINGTON, VA – U.S. dairy officials today congratulated the governments of the United States, Mexico and Canada for reaching an agreement to roll back metal tariffs that have soured U.S.-Mexico cheese trade and slowed passage of the United States-Mexico-Canada Agreement (USMCA).

The United States agreed to end Section 232 tariffs on steel and aluminum imports from its North American neighbors. In return, U.S. dairy officials expect that Mexico will drop their retaliatory tariffs against U.S. dairy products – including duties as high as 25 percent on U.S. cheese exports to Mexico.

“This is an important development for the U.S. dairy industry, and we applaud the hard work of negotiators from all three countries that made it possible as well as the numerous members of Congress that have insisted upon the need to resolve the Section 232 metal tariffs dispute with our North American partners,” said Tom Vilsack, president and CEO of the U.S. Dairy Export Council. “If Mexico lifts its tariffs on U.S. dairy in response, it would be a welcome return to normalcy with our number one export market. It would also build vital momentum for swiftly advancing USMCA towards passage.”

“America’s struggling dairy farmers are in need of some good news, and today’s announcement certainly helps,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “This paves the way for Mexico to drop retaliatory tariffs that have harmed dairy, and for Congress to take its next step to help our producers – to vote on USMCA and quickly ratify it.”

Mexico is, by far, America’s biggest dairy customer, with $1.4 billion in sales last year. U.S. products accounted for 80 percent of Mexican dairy imports by value in 2018, but that dominant market share was being jeopardized by the retaliatory tariffs.

The tariffs were likewise making it politically difficult for Congress to pass USMCA – a pact that modernizes the North American Free Trade Agreement, maintains U.S. dairy sales into Mexico, expands dairy market access in Canada, and reforms many nontariff barriers.

Vilsack and Mulhern also stressed the importance of finding similar common ground with China, which also slapped retaliatory tariffs on U.S. dairy exporters in 2018 and recently upped the ante by hiking them further on some products. As a result of last year’s move by China, U.S. exports to that fast-growing dairy market fell by more than 40 percent in the first quarter of 2019 compared to the same period last year. NMPF and USDEC have consistently advocated the urgency of resolving both the 232 and China disputes to allow our exporters to compete effectively in those markets.

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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 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.

American Butter Institute: ‘Fake’ Butter is Mislabeled

Posted on by Theresa Sweeney

By: Carrie Muehling – ORIGINAL POST

More plant-based products are entering the marketplace labeled as butter, and the dairy industry wants to put a stop to that practice. NMPF Executive Vice President and American Butter Institute Executive Director Tom Balmer said these products are mislabeled based on the standard of identity that exists for butter.

“The butter standard of identity, which is the only federal food standard established by an act of Congress, and it’s the oldest food standard that’s still in effect in the United States, requires that the product be made from cream and be not less than 80 percent milk fat in the finished product,” said Balmer.

He added that butter has a very simple ingredient list. “Virtually no product has as clean a label as butter, in the case of salted butter being cream and salt – two ingredients,” he said.

Balmer attributes the increase in these types of products coming into the marketplace to a decline in sales of margarine and vegetable spreads, while per capita consumption of butter continues to increase. He said the dairy industry has no problem with these products, but disagrees with labeling them as butter instead of margarine or some other kind of spread.

NMPF Supports USTR Proposal to Target EU Dairy in Airbus Retaliation

Posted on by Theresa Sweeney

ARLINGTON, Va. – The U.S. Trade Representative’s Office (USTR) should slap tariffs on dairy shipments from Europe in response to the $11 billion in damage EU Airbus subsidies caused the United States, National Milk Producers Federation President and CEO Jim Mulhern said today in testimony before a USTR panel.

The World Trade Organization recently found that Europe’s large civil aircraft subsidies were against international trade rules and permitted the United States to levy duties on EU products until Europe comes into compliance.

“We have a unique opportunity to make a big dent in the dairy market access gap we face with Europe. Including EU cheeses, yogurt, and butter on this list, as USTR has proposed, is entirely warranted, and we would encourage you to add additional EU dairy-related tariff lines,” Mulhern said. Doing so “would bring increased attention to the gross inequities that currently define our dairy trading relationship,” he said.

The United States is currently running a $1.6 billion dairy trade deficit with Europe. A complex web of EU tariffs and nontariff obstacles are to blame, Mulhern said.

“Simply put, we are largely being blocked from the EU market despite being a trusted and proven dairy supplier to the rest of the world,” he said, singling out Europe’s use of Geographic Indication requirements that target common products carrying geographic names like parmesan, feta, and muenster cheeses. Europe blocks sales of these everyday products from the United States and is aggressively pressuring other countries to do the same.

“It is essential that America deliver a clear and powerful message across the pond,” Mulhern said. “Subsidies and barriers that handicap U.S. businesses in the global marketplace will not be tolerated. And the days of trade deficits induced by unfair trade practices are coming to an end.”

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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.

Ensuring Milk’s Recent History Doesn’t Repeat Itself

Posted on by Theresa Sweeney

“History doesn’t repeat itself, but it often rhymes.”

I’m reminded of this saying, usually attributed to Mark Twain, as we look at dairy’s price outlook over the next few months. For the first time since before the retaliatory trade tariffs hit last summer and ruined a promising market outlook, real signs of a milk-price recovery have once again been apparent, just as an improved USDA safety net takes effect to provide at least some relief to struggling producers.

But just like a year ago, trade turmoil – in this case, new and higher tariffs against China – now clouds the market outlook. At NMPF we are doing what we can to ensure that history doesn’t repeat itself, and that even if it rhymes, this time the song needs a better melody.

Now in our fifth year of low prices and our third year of trade wounds, we’re hopeful that the market signals — that the worst may be over and that better days may lie ahead – are not derailed by a trade war train wreck.

For some of the positive, hopeful signs:

  • After years of rising cow numbers dating to 2011, herd sizes have dropped every month since last July, with March’s decline the biggest of the entire period. The steady decline in cow numbers in March finally pushed milk production to levels lower than a year earlier, reducing the supply overhang that has depressed prices.
  • Futures markets have noticed the tightening. Forecasts for milk prices this year as reflected in futures show a rise of $1.80 per hundredweight over last year, stabilizing around $18, and have been rising by the week.
  • The higher milk prices, combined with steady feed costs, have improved producer margins.
  • And finally, sustained improvement in world prices for butter, skim-milk powder and cheese are in turn helping lift domestic prices, showing how global demand can benefit U.S. dairy, despite the trade-policy and export challenges we currently face.

These developments show a sector experiencing an improving outlook, perhaps putting us back on the path we appeared to be on in 2018, when retaliatory tariffs against dairy from Mexico and China disrupted exports to two of our largest markets. The question before us is whether the economic fundamentals today are strong enough to maintain the nascent recovery.

Until trade turmoil is resolved, the battle to open and expand new markets — our best hope for real, sustainable recovery — will be fought with one hand tied behind our back. And the previous half-decade has taken such a toll on farmer finances that, over the next few months, many dairies will likely continue to struggle. Help from the market is critically important – but it’s inevitable that the economic pain on the farm won’t end overnight.

That’s why there is significant work to do to help producers weather the dairy crisis over the next few weeks and months.

The immediate task is to encourage and guide producers through signup for new dairy programs, most importantly the new Dairy Margin Coverage program. At a congressional hearing on dairy’s struggles convened April 30, Minnesota farmer Sadie Frericks told lawmakers she’d be signing up for five years of coverage at the maximum, $9.50 per hundredweight level. “Dairy farming requires smart business decisions. This was an easy one,” she said after the hearing.

Many other farmers, especially small and medium-sized producers, need to make the same choice as Sadie’s family. We will be ready to help producers understand their full options, which includes not only DMC but other risk-management tools, as well as ways to gain premium discounts and allocate refunds for previous Margin Protection Program premiums provided for under the farm bill passed last year. Please watch our website, nmpf.org, in coming weeks for more information and resources as we head toward the DMC signup date in mid-June.

At the same time, we can’t accept gridlock in Washington’s ability to improve trade policy. A renewed tariff spat with China cannot be an end in itself – it must lead quickly to a bilateral agreement that lowers tensions and establishes more and better market access. The Administration must lift the steel and aluminum tariffs on Mexico and Canada, and the Congress must ratify the U.S.-Mexico-Canada Agreement this year. We also need quick resolution to trade discussions with Japan so that U.S. dairy interests are not further punished by tariffs much higher than those negotiated by our European and Oceania competitors. These steps are necessary to provide some measure of certainty and new opportunities for dairy producers, something badly needed after the economic turmoil of recent years.

These are building blocks for longer-term recovery that need to be laid down now, when the urgency of dairy’s hard times is still fresh in the public’s mind and concern about them isn’t limited to the dairy sector itself.

If dairy truly is getting back on its feet – and we hope this spring’s positive signs show it’s about to happen, despite deeply worrisome trade tensions – then the next step will be to gain traction and move forward, because we don’t want history to repeat itself.

A little rhythm would be nice, but we’re ready to be done with the blues.

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