NMPF Building Support in Congress to Approve DAIRY PRIDE Act, Force FDA to Take Action on Mislabeled Dairy Imitators

ANAHEIM, CA – Efforts to expose the deceptive labeling and marketing of plant-based products that exploit the nutritional halo of real dairy products continues to gain traction and “has these fake food marketers worried,” attendees here at the National Milk Producers Federation’s annual meeting heard this week by the organization’s leadership.

NMPF President and CEO Jim Mulhern told the organization that he remains committed to achieving passage in Congress of the DAIRY PRIDE Act (DPA), legislation in the Senate and House that would require the U.S. Food and Drug Administration (FDA) to enforce existing food labeling standards and prevent misbranded plant-based imitators from appropriating federally-defined dairy terms on their labels.

The Senate bill, S. 130, was introduced in January by Sen. Tammy Baldwin (D-WI).  The companion House bill, H.R. 778, was introduced later that month by Reps. Peter Welch (D-VT), Sean Duffy (R-WI), Mike Simpson (R-ID), Joe Courtney (D-CT), David Valadao (R-CA) and Suzan DelBene (D-WA).

FDA regulations (CFR 131.110) define “milk” as a product of a cow, with similar definitions for yogurt and cheese products. Though existing federal policy is clear on this classification, “the FDA has unfortunately allowed these decidedly non-dairy copycats made from nuts, beans, seeds and grains to label their products using dairy-specific terms,” Mulhern said.

Mulhern told the dairy farmer members of NMPF during the organization’s 101st annual meeting that the U.S. regulatory system for food labeling is failing consumers, as it fails to adjust to the proliferation of foods mimicking real dairy products. He said that in the absence of a strong federal role in food labeling, nutritionally inferior imitators will continue to pass themselves off as suitable substitutes for real milk.

He noted that vegan organizations have organized to oppose the DPA “because they recognize that the attention we’ve brought to this issue through the introduction of the DAIRY PRIDE Act shines a spotlight on the nutritional inferiority of fake dairy products, in comparison to real milk and dairy products. Once Congress enacts this legislation, FDA will no longer be able ignore their own existing regulations.”

While FDA Commissioner Scott Gottlieb has recently expressed interest in having his agency look more carefully at the labeling issue, passage in Congress of the DPA is needed to force the FDA to act on the matter.

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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.

Misbranded Dairy Imitations Mislead Americans, Require Enforcement Action, NMPF Tells FDA Commissioner Scott Gottlieb

ARLINGTON, VA –U.S. Food and Drug Administration (FDA) Commissioner Scott Gottlieb’s recent comments about the need for strong federal oversight of food labels are exactly what is needed to address the misleading labeling and branding of imitation dairy products, the National Milk Producers Federation said today.

In a letter to FDA Commissioner Dr. Scott Gottlieb, NMPF implored the agency to devote resources to prevent nutritionally inferior products from using the names of real dairy foods. The letter follows several recent public comments in which Gottlieb outlines the FDA’s interest in reviewing the information on food labels and their impact on public health.

“I want to see the agency step in to adjudicate some of the important claims that product developers want to make on labeling that could be important in informing consumers,” Gottlieb told the Wall Street Journal in an Oct. 15 article. “So we intend to do that.”

In response, NMPF’s letter said that food labels – particularly the name of the food on a package –  play a pivotal role in conveying significant nutrition information to consumers.

Gottlieb’s focus on product label claims provides an opportunity “to make a clear statement against the inaccurate and misleading labels commonly associated with the plant-based dairy imitators,” NMPF President and CEO Jim Mulhern wrote in the letter. “The names of non-dairy alternatives must reflect current regulations and standards of identity, and should not mislead consumers as to the true nutrient value of the product.”

The letter to Gottlieb reiterated NMPF’s concern about the importance of accurate food labeling: The use of dairy terms on non-dairy foods misleads consumers because none of the imitations contain the same amounts of protein, vitamins and minerals as real dairy products. NMPF cited a 2015 Mintel survey that found that 49% of the responses identified nutrition as the No. 1 reason for consuming non-dairy beverages labeled as “milks.”

However, NMPF conducted a marketplace survey of 244 plant-based beverages in the Washington, D.C. area in 2017, and found that none of them is nutritionally equivalent to real milk, and thus none delivers the nine essential nutrients provided by milk.

“Consumers who purchase these imitations are not receiving the same level of nutrients found in cow’s milk, and that means Americans are falling short of the recommended amount of vitamins and minerals for a healthy diet,” said Dr. Beth Briczinski, NMPF’s vice president for dairy foods and nutrition. “FDA must act on this matter or else see the further decline of proper nourishment of our children and families.”

NMPF has made several attempts over the last decade seeking FDA’s attention to this issue, but the agency has yet to take any significant enforcement action, despite its history of sending warning letters to dozens of other food companies regarding misleading labeling claims.

“In February 2010, FDA sent warning letters to 17 food companies in a single day notifying them of their violation of federal laws through false or misleading label claims, and an open letter to the food industry made it clear that accurate food labeling to improve nutritional information for consumers was an agency priority.  That one effort made a dramatic difference in the labeling and marketing of a host of food products,” NMPF said in its letter.

“The lack of enforcement by FDA of the long-standing labeling provisions of various standards of identity for milk and dairy products and other pertinent federal labeling regulations has led to rampant consumer fraud related to the inferior nutrient content of these non-dairy products compared to their true dairy counterparts,” Mulhern said in the letter.

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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.

NMPF Applauds House Judiciary Committee for Endorsing New Agriculture Guest Worker Program

ARLINGTON, VA – The National Milk Producers Federation said today it supports the efforts by Chairman Bob Goodlatte (R-VA) and the House Judiciary Committee to pass legislation creating a guestworker program that provides a new opportunity for immigration reform in agriculture.

The committee today approved the Agriculture Guestworker (AG) Act (H.R. 4092), which would establish an entirely new visa program, dubbed the H-2C visa, to allow farm employers to hire foreign workers on a year-round basis. The measure was developed by Rep. Goodlatte after NMPF provided input to the committee about the workforce needs of America’s dairy farms.

Although not ideal, the AG Act “helps advance our efforts to assure a stable, dependable and legal workforce for America’s dairy farmers, now and in the future,” said Jim Mulhern, president and CEO of NMPF. “The AG Act is the first step in a long process of establishing a workable solution for dairy farmers’ labor needs. It recognizes that we must improve on the current system by pursuing a new approach to matching the supply and demand for workers in U.S. agriculture.”

Goodlatte’s bill would replace the existing H-2A temporary visa program, which dairy farmers largely cannot use because their labor needs are year-round, not seasonal. In addition to establishing the new visa for future farm workers, it would allow currently undocumented farm workers to apply for H-2C visas so that they can participate legally in the agricultural workforce.

While the version of the legislation marked up in committee requires further improvements, Mulhern said that overall, the AG Act bill “merits the support of America’s farming community, and its refinement and passage must be a priority for congressional leaders.”

George Rohrer, a dairy farmer in Dayton, Va., and a member of the NMPF Board of Directors, said that farmers “have waited for years for lawmakers to fix our broken immigration system. The AG Act is evidence that Congressman Goodlatte has listened to many of our concerns, and is willing to try a new approach to the problem. As a farmer, it’s difficult to plan for tomorrow when you don’t know whether you’ll be able to hire qualified people today.”

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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.

Dairy Industry Applauds Introduction of School Milk Nutrition Act of 2017

(Washington, D.C) – The nation’s two leading dairy organizations applauded the introduction today of a bipartisan bill to help reverse the decline of milk consumption in schools.

The School Milk Nutrition Act of 2017, introduced by Representatives G.T. Thompson (R-PA) and Joe Courtney (D-CT), would allow schools to offer low-fat and fat-free milk, including flavored milk with no more than 150 calories per 8-ounce serving, to participants in the federal school lunch and breakfast programs. The bill allows individual schools and school districts to determine which milkfat varieties to offer their students.

The International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF) strongly support the bill and encourage Congress to pass it. Once enacted, the bill would make permanent the administrative changes in the school lunch program proposed earlier this year by the U.S. Department of Agriculture. Agriculture Secretary Sonny Perdue, in one of his first official actions earlier this year, supported giving school districts the option to offer a variety of milk types as part of the National School Lunch and School Breakfast programs.

“Congressmen Thompson and Courtney recognize the nutritional role that milk plays in helping school-aged children to grow and develop to their full potential,” said Michael Dykes, D.V.M., IDFA president and CEO. “We appreciate their steadfast commitment to reverse declining milk consumption by allowing schools to give kids access to a variety of milk options, including the flavored milks they love.”

The legislation includes a pilot program to test strategies that schools can use to increase the consumption of fluid milk.  This could include ways to make milk more attractive and available to students, including improved refrigeration, packaging and merchandising.

“Milk is the number-one source of nine essential vitamins and minerals in children’s diets, and when its consumption drops, the overall nutritional intake of America’s kids is jeopardized,” said Jim Mulhern, president and CEO of the National Milk Producers Federation.  He pointed out that in just the first two years after low-fat flavored milk was removed from the school lunch program, 1.1 million fewer school students drank milk with their lunch.

The Act also includes a provision to allow participants in the Special Supplemental Nutrition Program for Women, Infants and Children, known as WIC, to have access to reduced-fat milk for themselves and their children.

“Expanding options for WIC participants will encourage mothers to help their young children grow up strong and healthy,” said Dykes.

“When kids don’t drink milk, it’s extremely difficult for them to get sufficient amounts of three of the four major nutrients most lacking in children’s diets:  calcium, potassium, and vitamin D,” said Mulhern. “This legislation addresses that shortcoming both in schools and in the WIC program.”

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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 International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industries and their suppliers with a membership of nearly 525 companies within a $125-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation (MIF), the National Cheese Institute (NCI) and the International Ice Cream Association (IICA). IDFA’s nearly 200 dairy processing members operate more than 600 manufacturing facilities and range from large multi-national 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. Visit IDFA at www.idfa.org.

NMPF Supports USTR Proposal in NAFTA Talks to Facilitate Open Dairy Trade with Canada

National Milk supports the U.S. government push to eliminate Canada’s exorbitant tariffs on dairy exports and rescind its damaging Class 7 milk pricing scheme – issues that were put on the table during the most recent round of negotiations between the United States, Mexico and Canada earlier this week in Washington, D.C.

“The proposal advanced by the U.S. Trade Representative is the right approach to move dairy trade between our two countries closer to the free trade relationship that exists for most other agricultural products under NAFTA,” NMPF President and CEO Jim Mulhern said. “We are gratified that our trade negotiators have heard the concerns of America’s dairy farmers and cooperatives, and made dairy trade a key objective in the U.S.-NAFTA agenda.”

National Milk believes Canada’s exorbitant tariffs on dairy imports – in the range of 250-300 percent – have been at odds with an overall free trade policy environment that is enjoyed by most other sectors of the U.S. economy. In addition, Canada’s Class 7 policy is a government-sanctioned effort to dump Canada’s surplus milk solids onto the world market to the detriment of U.S. and international dairy farmers who must compete with these subsidized exports.

NMPF’s Board Officers also met with leaders from the Dairy Farmers of Canada earlier this month to impress upon them the importance of resolving these issues. In addition, NMPF, together with the International Dairy Foods Association, provided unified industry input on dairy’s NAFTA priorities to a House Agriculture Committee congressional delegation that visited Canada last week.

“The problems created by Canada’s dairy system must be resolved as part of the current negotiations. These policies include subsidized exports and non-tariff barriers, in addition to the large tariffs already in place,” said Mulhern. “We stand firmly behind the U.S. government’s proposal to establish the free flow of dairy products among the NAFTA countries, while immediately eliminating the class 7 export program.”

The next round of negotiations will take place in Mexico City in November, with plans to extend the talks into the new year.

New Campaign Demonstrates Nutritional Deficiencies in Dairy Imitations

In a letter to regulators in late September, National Milk insisted that the U.S. Food and Drug Administration (FDA) take enforcement action against imitation dairy product “Blue Magic Cashew Milk” for continuing to ignore federal standards of identity for dairy products. This latest action is part of a continued effort to spotlight other plant-based products masquerading as dairy foods.

In a letter sent last month to the U.S. Food and Drug Administration (FDA) and the California Department of Food and Agriculture, NMPF said that San Francisco-based Urban Remedy’s continued use of a standardized dairy term on a plant-based imitation is a violation of standards defining milk solely as the product of a dairy animal.

NMPF evaluated the beverage in June 2017 as part of a marketplace survey examining the nutrients in imitation dairy foods. Of the 244 beverages reviewed, Blue Magic’s two-cup serving contained the highest sodium content, grams of fat and calories. An entire 16-ounce bottle of Blue Magic contains 470 mg of sodium — the equivalent of a fast-food hamburger. Even a half-serving (1 cup) featured the highest calories and fat of all products surveyed, and was second highest in its sodium level.

By contrast, real low-fat milk, per cup, has more than four times the amount of Vitamin A, three grams more protein and 285 mg more calcium as Urban Remedy’s imitation version.

This call to action against Blue Magic Cashew Milk is part of an expanded NMPF effort that will focus attention on food brands that inappropriately label their products using dairy terminology. The series, titled “Dairy Imitators: Exposed,” will demonstrate these products’ lack of compliance with federal standards, and their nutritional deficiencies when compared to real milk, yogurt, cheese and other dairy foods. NMPF will continue to press federal and state agencies about the imitation products highlighted, pointing out their violations of standards of identity, as well as nutritional inferiority.

This is the second time this year that NMPF has raised objections about Blue Magic Milk. After National Milk’s initial review in June, Urban Remedy altered its label to read “Blue Magic Cashew Milk,” but NMPF said the change was only cosmetic as the company is still violating federal labeling regulations by using a standardized dairy term on its plant-based beverage.

“Beyond ignoring clearly-defined regulations specifying what milk is, this ‘Blue Magic’ product is an affront to consumers seeking appropriate levels of nutrition for their families,” said Jim Mulhern, President and CEO of NMPF.  “It’s obvious that this beverage is not a nutritional substitute for real milk, regardless of its desire to co-opt dairy terms.”

NMPF has engaged with FDA several times over the last 10 months, through both numerous letters and an in-person meeting with top regulators. In addition, NMPF has been pushing legislation – the DAIRY PRIDE Act – that would require FDA to take action against any rule-breaking dairy imitations.

As Korean Trade Negotiations Continue; NMPF Pushes to Deepen Free Trade Agreement

After mobilizing several weeks ago to discourage the Trump Administration from pulling out of the U.S.-South Korea (KORUS) free trade agreement, National Milk is now urging efforts to improve the trade pact as U.S.-South Korea negotiations over the agreement continue.

South Korea is the fourth-largest U.S. dairy export market and last year accounted for over $230 million in U.S. dairy sales. Leading up to the KORUS negotiations in early October, NMPF worked with lawmakers last month to ensure that dairy trade was highlighted in a bipartisan congressional letter calling on President Trump to strengthen the economic bonds between the United States and South Korea by remaining in the agreement. Representatives Ron Kind (D-WI) and Dave Reichert (R-WA) authored the letter, which was cosigned by 17 other House colleagues. The letter pointed out that without KORUS, the United States would be the only major dairy supplier in the world that lacked preferred access to South Korea’s growing market.

Shawna Morris, NMPF’s vice president of trade policy, attended a roundtable dinner with South Korean Trade Minister Kim Hyun-chong last week, where she stressed the importance of the trade deal to the U.S. dairy industry. NMPF encouraged the minister to use the ongoing talks to build upon this positive relationship by expanding the agricultural provisions of the deal. As the U.S.-Korea talks continue, NMPF will continue to champion the need to preserve the FTA and focus discussions on ways to deepen the agreement in areas such as agricultural tariffs, geographical indications, and sanitary and phytosanitary measures.

2017 Annual Meeting to Celebrate “Undeniably Dairy,” Tackle Industry Issues

Hundreds of dairy farmer leaders, cooperative executives, checkoff organizations and other industry stakeholders will gather in Anaheim, Calif., later this month to attend the 2017 Joint Annual Meeting, jointly held by NMPF, the United Dairy Industry Association and the National Dairy Board. The meeting, taking place October 30-November 1, will be held at the Disneyland Hotel.

This year’s meeting theme, “We are Undeniably Dairy,” will celebrate the goodness of dairy foods, their nutritional benefits, and the industry’s commitment to social responsibility.  Guests will learn more about the past year’s activities of both NMPF and DMI. One of this year’s featured speakers is Trace Sheehan, who wrote and produced the new documentary “Food Evolution,” a deep-dive into the contentious world of GMOs. This year’s event will feature a movie screening of the documentary, open to all meeting attendees.

In addition to NMPF’s annual Town Hall event, which updates attendees about the organization’s current policy initiatives, there will also be two panels that will review the challenges and opportunities facing the dairy industry. The Producer Leader panel, moderated by NMPF Chairman Randy Mooney, will feature dairy farmer leaders discussing topics like the federal dairy safety net, immigration policy and consumer demand. The Cooperative CEO panel, moderated by NMPF President and CEO Jim Mulhern, will examine how farmer-owned marketing organizations can build a more collaborative, proactive and innovative U.S. dairy industry that can secure our future success both here and abroad.

Both the Cheese Reception and Dairy Bar return this year, featuring products like fairlife milk, Chobani yogurt and Sargento cheese, as well as booths from several of NMPF’s associate members.

NMPF Statement on Round 4 of NAFTA Negotiations

ARLINGTON, VA –

ATTRIBUTE TO: Jim Mulhern, President and CEO, NMPF

“We are pleased that U.S. trade negotiators have told Canada that its problematic dairy policies must be addressed in the negotiations over the North American Free Trade Agreement (NAFTA).

“The proposal advanced by the U.S. Trade Representative is the right approach to move dairy trade between our two countries closer to the free trade relationship that exists for most other agricultural products under NAFTA. For too long, Canada’s exorbitant tariffs on dairy imports – in the range of 250-300 percent – have been at odds with an overall free trade policy between our countries. The administration’s proposal to reduce those tariffs and increase dairy trade between the United States and Canada is good for consumers on both sides of the border.

“Equally important, we are very pleased with the U.S. insistence that Canada rescind its new Class 7 milk pricing scheme. Class 7 is a government-sanctioned effort to dump Canada’s surplus milk solids onto the world market to the detriment of dairy farmers in the United States and around the world who have to compete with these subsidized exports. It has to go.

“We are gratified that our trade negotiators have heard the concerns of America’s dairy farmers and cooperatives, and made dairy trade a key objective in the U.S.-NAFTA agenda. The problems created by Canada’s dairy system must be resolved as part of the current negotiations. There can be no acceptable NAFTA outcome unless these issues are resolved.”

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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.

Dairy Groups Fight to Preserve Common Food Names Against EU’s Proposed Restrictions

National Milk, as part of the Consortium for Common Food Names (CCFN), has continued battling this fall to preserve U.S. cheese exports in nations where the European Union (EU) is using geographical indications (GIs) in an effort to limit those opportunities.

The EU’s GI land-grab seeks to restrict a long list of common food and beverage terms for use only by certain EU producers in specified regions. If successful, it would force U.S. dairy suppliers to market many of their products under different, unfamiliar names—a costly proposition that would put the United States at a distinct and lasting competitive disadvantage in export markets. Those efforts have escalated considerably over the past month in trade deals between Europe and two major markets of importance of America’s dairy farmers.

At the start of October, NMPF and several other agricultural organizations sent a letter imploring President Trump to defend common food names against EU efforts to monopolize their use. Japan and Mexico are soon to close their respective comment periods on lists of proposed names the EU is looking to restrict. Those lists include generic cheeses like asiago, feta, gorgonzola and parmesan. Both nations — critical dairy markets for the United States, accounting for more than 40 percent of U.S. cheese exports last year — will then likely finalize their negotiations with the EU.

NMPF, working closely with the U.S. Dairy Export Council, has been extensively involved in CCFN’s filing of detailed submissions to Japan and Mexico in defense of the common names at risk. “If the U.S. government firmly expresses its concerns now to Mexico and Japan regarding the importance of safeguarding common names and terms for all to use, both nations might be more inclined to take the right and just steps in these negotiations,” the letter stated.

In addition, NMPF, USDEC and the International Dairy Foods Association (IDFA) wrote to the Japanese Ministry of Agriculture last month to insist that Japan respect current market access between Japan and its trading partners, including the United States, when reviewing the EU’s list of requested GIs, or else risk disrupting one of the world’s largest consumer marketplaces. The letter underscored that it is imperative that Japan “not overlook the enormous significance of the EU food name list for Japanese consumers and producers, and for your lasting relationships with key international trading partners.”

On Oct. 16, Vice President Mike Pence met with Japanese Deputy Prime Minister Taro Aso for the second round of the U.S.-Japan Economic Dialogue, during which Japan committed to ensuring transparency and fairness in its system for GIs in accordance with its domestic law and procedures.

To further bolster U.S. awareness of this issue, NMPF worked with Senate Judiciary Committee staff to organize a September Capitol Hill briefing on GIs, which was hosted by Sens. Chuck Grassley (R-IA) and Dianne Feinstein (D-CA), committee chair and ranking member, respectively. In addition to speaking at the event, NMPF staff coordinated the participation of multiple U.S. industry associations that detailed the impact of the EU’s GI tactics on various sectors of the U.S. economy and on the rights of U.S. trademark owners. Other participants included the National Association of Manufacturers, North American Meat institute, and Wine Institute.

Capping last month’s activities, NMPF also briefed the Argentine embassy on GI issues as the EU and the Mercosur bloc of countries, of which Argentina is a member, redouble their efforts to reach a free trade agreement by the close of 2017. The possible restriction of common food names is a key issue of debate in that agreement, particularly given the extensive cheese production in Mercosur countries due to decades of European emigration to South America.

NMPF To Consider Proposal to Improve Class I Price Risk Management

NMPF’s Board Officers have endorsed a proposal to improve the price risk management of fluid milk, without reducing the revenue generated by Class I prices. The proposal was developed by a  task force of NMPF members, who engaged in discussions this year with members of the International Dairy Foods Association to find a mutually-acceptable approach to improving the risk management of Class I milk, while preserving the farm-level revenue that the Class I formula generates for producers’ milk checks. After a series of meetings, the two groups have agreed on a proposal that would achieve both objectives. The proposal will be reviewed and voted on later this month by the NMPF Board of Directors.

The current classified pricing system, established in 2000, uses the higher of the Class III or IV price in each month, plus a location-specific differential in each milk marketing order region, to set the monthly Class I price. Use of the “higher of” makes it difficult for Class I milk handlers to hedge risk because they don’t know which class will be the mover for a particular month.  However, the “higher of” calculation as the Class I mover has benefited dairy producers since its implementation, and NMPF task force members made clear that value would have to be reflected in any alternative pricing formula going forward.

Under the terms of the agreement – which ultimately will require approval by Congress – the current Class I system would be adjusted using the simple average of Classes III and IV as the Class I mover.  This will reduce some of the unpredictability of pricing beverage milk, as it gives processors the ability to hedge Class I milk prices using Class III and IV futures.

To keep the proposal revenue-neutral, it would boost Class I differentials by $0.74 per hundredweight in each federal milk marketing order.  This premium represents the average value of the higher-of system, dating back to 2000.  The larger differential is needed so that moving to an average of the two market-determined manufacturing class prices does not diminish the contribution to the blend price provided by Class I revenue.

The agreement creates a positive outcome for farmers and processors, because it addresses fluid bottlers’ desire for improved risk management, while protecting the integrity of Federal Milk Marketing Orders, and locking in the value that the “higher of” has provided. Also important, the agreement will unite NMPF and IDFA in support of the dairy title of the farm bill, which is also expected to contain badly-needed improvements in the Margin Protection Program. Given the ongoing federal budget challenges in developing a new farm bill, a unified dairy industry will be critically important to legislative success. The NMPF Board Officers unanimously endorsed the recommendation of the NMPF task force member, and are recommending approval by the Board.

NMPF Joins IDFA, International Dairy Federation in Endorsement of Dairy Declaration on Sustainability

NMPF, the International Dairy Foods Association (IDFA) and the International Dairy Federation (IDF) together endorsed the Dairy Declaration of Rotterdam last month, which recognizes the global dairy sector’s commitment to feeding the world with safe, sustainable products.

The U.S. National Committee of the International Dairy Federation (USIDF), of which NMPF serves as Vice Chair, endorsed the declaration in a signing ceremony held last month during the USIDF Annual Membership meeting. The declaration was originally developed by IDF and the United Nations Food and Agriculture Organization at the IDF World Dairy Summit in October 2016. The document, which supports the U.N. 2030 Agenda for Sustainable Development, provides a framework for IDF sustainability actions and highlights IDF’s commitment to take an integrated approach to promote sustainability.

Signing the declaration on behalf of the broader dairy industry that USIDF represents were USIDF Vice Chair and NMPF Vice President of Trade Policy Shawna Morris; USIDF Chair and IDFA Senior Vice President of Regulatory Affairs Cary Frye; and IDF Technical Manager of Standards, Aurélie Dubois.

“Today, America’s dairy farmers are producing a gallon of milk that uses 65 percent less water, requires 90 percent less land and has a 63 percent smaller carbon footprint than it did 70 years ago,” Morris said. “The U.S. dairy industry looks forward to continuing to partner with other signers of the declaration in building upon dairy’s positive track record of providing consumers with the nutritious, responsibly produced products they want while continuing to further its commitment to providing a sustainable dairy food system in this country.”