(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.

For the second year in a row, NMPF is joining farmers, cooperatives, brands and other industry stakeholders in recognizing June Dairy Month by getting involved in the Innovation Center for U.S. Dairy’s Undeniably Dairy initiative.

Throughout the summer, Undeniably Dairy is promoting a new chapter in its multi-year campaign to celebrate dairy’s innate goodness. This latest endeavor will celebrate all those who are “Undeniably Devoted to Dairy,” from farmers to chefs and everyone in between.

Undeniably Dairy – funded by dairy farmers through their checkoff – will reach consumers who have questions about dairy through nationally recognized podcasts, digital and media partnerships, and by farmers and other members of the dairy community who will share personal stories of devotion. Farmers work with experts every day that help ensure healthy cows and responsibly produced milk.

For cooperatives and producers who want to share stories of how they are “Undeniably Devoted” to their livelihoods, here are some ways to celebrate:

• Take a picture of your employees, veterinarians, nutritionists, milk haulers, and others. Share it along with a story of their devotion on your social channels using #undeniablydairy.
• Share content from the Dairy Hub about the undeniably devoted – you can find an Undeniably Dairy resource link on the home page. If you haven’t joined the Dairy Hub yet, register here.
• Talk about those devoted to dairy when conducting farm tours or talking with neighbors.
• Encourage friends and family to do the same.

The National Dairy Farmers Assuring Responsible Management (FARM) Program will host its third annual FARM Evaluator Conference July 24-26 in Kansas City, Missouri. Following the success of previous conferences, evaluators from across the country will gather again to network, brainstorm and learn from the nation’s leading subject matter experts.

This year’s conference will focus on handling on-farm animal care crises, workforce development and proper antibiotic use. In addition, there will be time dedicated to discussing FARM Animal Care Version 4.0. This will allow participating organizations to share feedback and thoughts relevant to the next version of the program, after which FARM staff will share that information with its Animal Care Technical Writing Group.

Registration for the conference is now open. Questions can be directed to Beverly Hampton Phifer at bhamptonphifer@nmpf.org.

After years of inactivity, the livestock industry-funded National Air Emissions Monitoring Study (NAEMS) is moving forward at the U.S. Environmental Protection Agency (EPA). NMPF staff met with senior officials at EPA in late May to discuss the agency’s plans for estimating air emissions from animal feeding operations.

NAEMS monitoring was completed on dairy, pork and poultry farms more than seven years ago, but EPA has not finalized any emission estimating methodologies for animal feeding operations. Additionally, EPA has only drafted methodologies for about one-quarter of the emissions source and pollutant combinations studied in the NAEMS. EPA was expected to develop and begin publishing emissions estimating methodologies by 2009 so the methodologies could be used by federal, state and local agencies, along with livestock industry operators, to determine compliance with the Clean Air Act and other statutory requirements.

According to the EPA’s Office of the Inspector General, delays in developing the emission estimating methodologies stem from limitations with NAEMS data, uncertainty over how to address feedback from the EPA’s Science Advisory Board, and a lack of EPA agricultural air expertise and committed resources. As a result, requirements to control emissions from individual animal feeding operations remain undetermined and enforcement protections for consent agreement participants remain in effect.

EPA stated it will issue its timeline for completing the work by July. EPA also stated that if regulatory requirements are triggered by the emission estimates, such as permits under the Clean Air Act (CAA), agriculture entities will have 120 days to apply for such a permit. It is uncertain whether some dairy operations will need permits or face other regulatory burdens. NMPF will remain engaged with EPA as this process moves forward.

Last February, the U.S. Environmental Protection Agency (EPA) published a request for comment regarding previous statements it made about pollutant discharges from point sources that reach surface waters via groundwater. EPA has said that those discharges may be subject to the Clean Water Act (CWA) if there is a direct hydrological connection between the surface water and groundwater. NMPF joined with other agriculture groups in May in urging EPA to rescind its statements that groundwater could be regulated under the CWA.

NMPF does not believe the CWA should regulate groundwater and that such regulation is best left to the states. NMPF noted that Congress specifically considered and chose not to include groundwater under the CWA. Unfortunately, several courts have re-interpreted the CWA and taken a contrary stance, even though there also have been courts that ruled the CWA cannot regulate groundwater. It is likely the issue eventually will reach the Supreme Court.

NMPF is concerned about regulating farms under the CWA because a fact pattern can be prosecuted as a criminal act, resulting in possible imprisonment for up to six years and financial penalties of up to $100,000 per day. EPA’s past statements on the issue are somewhat ambiguous. One example: “A general hydrological connection between all waters is not sufficient to subject an operator or owner of a point source to liability under the CWA, instead there must be a direct hydrological connection to surface waters.”   Determining if there is a “direct” connection is not easy and there is considerable uncertainty in those determinations.

NMPF and other agriculture groups have asked EPA to initiate rulemaking, retract past statements and make it clear that groundwater pollution should be regulated by state and local governments, not the federal government.

To further highlight the absurdity of deceptive food labels, Peel Back the Label and Emmy-winning comedic production company Funny or Die created a video that shows the lengths food companies will go to confuse consumers into buying their products.

The video features two food executives – one from a milk company and the other from a marketing agency – scheming over how to separate a gallon of milk from the rest of the pack, with consumers paying the price as they encounter increasingly ridiculous deceptive and misleading food labels with terms like “non-GMO” and “natural.”

The video was originally posted on the Funny or Die website and shared on its social media channels. Peel Back the Label then shared the video on its own Facebook and Twitter pages. To date, the video has garnered over a million views – a number set to increase as Peel Back the Label continues to amplify it across its platforms.

The video release with Funny Or Die is the latest effort by Peel Back the Label – launched and managed by NMPF – to highlight food company “bad actors” that using misleading food labeling or deceptive marketing to increase sales by stoking consumer fear and misconceptions about food. The campaign gives consumers access to the information they need to separate hype from fact as they make informed food decisions.

The U.S. Department of Agriculture (USDA) published its proposed National Bioengineered Food Disclosure Standard (NFBDS) on May 4, which aims to provide clarity on when and how to label foods that contain bioengineered ingredients. NMPF was pleased that USDA made clear that meat and milk that are produced by animals fed bioengineered grain are not bioengineered, and therefore not subject to the rule. NMPF fought hard during the legislative process to establish that determination.

However, other provisions of the proposal remain unresolved as the agency seeks additional feedback from the public. Among those are whether to require the disclosure of highly-refined ingredients such as beet sugar, corn syrup and soybean oil that do not contain any bioengineered DNA, even though the definition of a bioengineered food requires that it “contain genetic material.”  Also at issue is the threshold level of bioengineered ingredients that will trigger disclosure.  The alternatives proposed include setting the threshold at either 0.9 percent or 5 percent.

NMPF said the final USDA rule will need to make clear that bioengineered enzymes – typically used in the making of cheese – are exempt from disclosure, especially since every country with a bioengineered food disclosure standard already provides such an exemption.

Vitamins added to foods also need to be exempt under USDA’s disclosure proposal, NMPF said. Unless the rule makes this clear, many fluid milk products, which contain Vitamins A and D, could need to be labeled as bioengineered if they use bioengineered vitamins. NMPF is working with the Coalition for Safe and Affordable Food and will file comments identifying this issue as a huge oversight that must be remedied.

NMPF was pleased that the design of the symbol to be used on bioengineered foods conveys a neutral to positive image, as bioengineering is frequently portrayed in a negative light. NMPF will encourage USDA to send a clear message that bioengineered disclosures – present or not – must not be false and misleading.

NMPF will work through these and other issues as it prepares to submit comments by to the July 3 deadline.

Swedish beverage company Oatly needs to respect U.S. food labeling standards that restrict the use of the term “milk” to real dairy products, according to NMPF, especially because the brand already follows such rules in its native Sweden.

Oatly is the latest brand targeted by NMPF because it exploits the U.S. Food and Drug Administration’s (FDA) lax regulatory environment. In promoting its cereal-derived beverage as oat “milk,” Oatly is blatantly skirting U.S. food labeling regulations, which dictate that any product using dairy terms including “milk,” “cheese” or “yogurt” must have originated from an animal. NMPF has long insisted that FDA take enforcement action against similarly misbranded products, the same way the standard is enforced in Europe and many other nations.

NMPF criticized Oatly for complaining to FDA in an April 11 letter that it would be placed at a disadvantage if it could not call its product “oat milk.” Oatly’s complaint was sent to FDA in support of a petition by the vegan trade association Good Food Institute (GFI). GFI’s petition calls on FDA to modify existing food standards to endorse the current marketplace abuse of some food companies using dairy terms on products made from plants, not milk.

“Budding and innovative companies like Oatly would be placed at a serious disadvantage if we were no longer allowed to use terms that instantly and accurately convey what’s inside the carton,” said Oatly U.S. General Manager Mike Messersmith, in arguing that its product must be labeled as “oat milk.”

However, in its home market, Oatly is sold as “havre dryck,” or “oat drink” in Swedish.  European Union (EU) regulations – similar to existing U.S. government standards – define milk as an animal product and do not allow plant-based milk copycats to use dairy terms.  Messersmith’s letter did not explain this obvious contradiction to his argument.

To spotlight Oatly’s doublespeak to the FDA, NMPF has created a graphic that illustrates the difference between Oatly’s U.S. and Swedish packaging. This image will join others in NMPF’s “Dairy Imitators: Exposed” campaign, which calls out non-dairy imitation brands for ignoring federal standards and failing to live up to real milk’s complete nutrient package.

To help promote the U.S. dairy industry as a job-creating and exports machine, National Milk has joined the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association (IDFA) to launch a year-long campaign titled “Got Jobs? Dairy Creates Jobs, Exports Create More.”

Most Americans know milk and other dairy products are an essential part of a healthy diet. But less well-known is dairy’s contribution to the health of the U.S. economy and the economies of every state across the country. This storytelling campaign aims to shine a brighter, data-driven spotlight on the positive effects of dairy’s economic engine.

Over the next year, the three dairy groups will share in-depth data and compelling narratives featuring hardworking dairy farmers, innovative dairy company employees, resourceful retailers and many others throughout the food supply chain at its website GotDairyJobs.org. The site will offer monthly features, videos and data-driven facts that demonstrate dairy’s continued impact on jobs, tax revenue and communities around the country. Using #GotDairyJobs, the dairy industry will amplify the campaign and create the dairy jobs conversation on Twitter, Facebook and Instagram.

“As milk continues its journey from farm to table, it becomes a job-creation machine, employing farm workers, truck drivers, construction workers, factory workers, retailers and even cargo ship captains navigating the ocean to ports in fast-growing countries demanding more dairy than their own countries can produce,” said Jim Mulhern, president and CEO of NMPF. “The United States is uniquely positioned to meet this growing global need, which allows U.S. dairy to provide opportunities for job creation and growth in the United States.”

ARLINGTON, VA – The National Milk Producers Federation (NMPF) today commended the leadership of the Senate Agriculture Committee for crafting a bipartisan Farm Bill that contains beneficial provisions for America’s dairy farmers. Following today’s passage by a margin of 20-1, the bill now moves to the full Senate for consideration.

The Senate Farm Bill contains enhancements to the dairy Margin Protection Program sought by NMPF, including improved coverage levels and greater program flexibility. The measure 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 applauded Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) for their leadership in finalizing the measure before the current Farm Bill expires on Sept. 30. Sen. Stabenow helped secure $100 million in additional funding for the dairy title budget baseline.

“The leadership of Senators Roberts and Stabenow has led to the creation of a bipartisan Farm Bill that has important provisions for dairy farmers during this prolonged period of low milk prices,” said NMPF President and CEO Jim Mulhern. “With the House also set to move on its version of the Farm Bill later this month, we are hoping a final measure will pass Congress by this fall.”

The Senate bill also contains conservation provisions that will help producers access technical and financial assistance to carry out conservation practices on operations. Sen. Patrick Leahy (D-VT) added a helpful amendment to the bill 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. 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.

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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.

President Donald Trump has indicated he may be willing to wait until next year to reach a revised North American Free Trade Agreement (NAFTA) if it means getting a better deal from Canada and Mexico. NMPF continues to believe that the NAFTA talks are critically important and must be concluded, but not if that comes without the improvements the U.S. dairy industry needs.

Some stakeholders involved in the NAFTA talks have recently focused on the possibility of a “skinny” NAFTA, with a limited number of reforms, after negotiators missed Speaker Paul Ryan’s May 17 deadline to deliver a NAFTA rewrite to Congress. However, various administration officials, including Chief Agricultural Negotiator Gregg Doug and Treasury Secretary Steven Mnuchin, have said that the goal remains to secure better terms from Canada and Mexico. This approach has been strongly encouraged by congressional leaders like House Ways & Means Committee Chairman Kevin Brady and Senate Finance Chairman Orrin Hatch. Moreover, the President himself has vocally and repeatedly touted the importance of Canada making reforms to its dairy system in recent weeks.

NMPF and U.S. Dairy Export Council (USDEC) have been working closely with the office of the U.S. Trade Representative (USTR), the Agriculture Department and members of Congress to ensure that the dairy industry’s voice is heard and that the administration stands by its pledges to address dairy trade issues regarding NAFTA.

NMPF continues to tell lawmakers and administration officials that the NAFTA renegotiations must address Canada’s dairy trade obstacles, including its Class 7 pricing program and exorbitant tariffs. Secondly, a successful NAFTA deal must preserve U.S. access to the Mexico market, the No. 1 U.S. dairy export market.