NMPF Board of Directors Supports NAFTA Modernization

WASHINGTON, D.C. – The National Milk Producers Federation Board of Directors voted unanimously today to support modernizing the North American Free Trade Agreement (NAFTA) in a way that enhances and protects the United States’ current dairy market access opportunities and addresses Canada’s constant use of trade-distorting measures.

At its June meeting here, NMPF’s board passed a resolution outlining goals for the upcoming NAFTA renegotiation process. These include confronting Canada’s use of policies that hinder trade, such as its harmful Class 6 and 7 pricing schemes that negatively impact U.S. dairy exports. The resolution also requests that no harm be done to trade with the United States’ largest dairy export market, Mexico. It also calls for special attention to preserving and enhancing the protection of foods using common names, and strengthening rules related to sanitary and phytosanitary commitments with Canada and Mexico.

“Trade negotiations are always a balancing act, and the renegotiation of NAFTA will be another example of that dynamic,” said Jim Mulhern, president and CEO of NMPF. “NMPF’s membership recognizes NAFTA’s essential role in expanding access to the Mexican market, where we export more than $1 billion annually in dairy products. We need to build on that market, and at the same time use the modernization effort to obtain more access to the Canadian market for our products, and roll back anti-competitive trade schemes used by Canada’s dairy sector.”

The NMPF resolution singled out Canada’s exorbitant dairy tariffs and pervasive use of policy tools like its Class 6 and 7 schemes, which were introduced last year. The new programs have been used to displace American exports of milk proteins to Canada and undercut U.S. dairy exports in overseas markets.

In May, the Trump Administration formally launched the NAFTA modernization process when it notified Congress that it plans to proceed with renegotiating the 24-year-old trade pact. NMPF will be actively engaged in this process through the submission of recommendations on the priorities of interest to U.S. dairy farmers, meetings with U.S. and foreign government officials, and close interaction with supporters in Congress.

“Exports are extremely important to the U.S. dairy industry,” Mulhern said, “accounting for $5 billion in sales annually and up to 100,000 jobs in areas tied to dairy farming and processing. NAFTA has contributed to this success, supporting tens of thousands of farm and dairy manufacturing jobs, as well as those in related industries.”

Earlier in the week, NMPF and the U.S. Dairy Export Council jointly filed comments on the NAFTA modernization process with the U.S. Trade Representative’s office.

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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 Farmers Discuss Policy Priorities During Capitol Hill Visits

WASHINGTON, D.C. – Dairy farmers from across the country visited Capitol Hill today as part of the National Milk Producers Federation’s annual young farmer fly-in to Washington, where in more than 200 meetings they asked lawmakers for action on a handful of issues important to the dairy sector.

More than 70 farmers from 21 states visited their House and Senate members Tuesday as part of their role as national leaders in the 2017 NMPF Young Cooperator (YC) program. The dairy producers discussed the challenges they currently face, and highlighted four priority policy issues that need Congress’ attention:

  • The need to make significant improvements to the structure of USDA’s dairy Margin Protection Program, which currently is not providing an adequate economic safety net for farmers;
  • The DAIRY PRIDE Act, which would require the U.S Food and Drug Administration to enforce existing food standards specifying that dairy terms such as “milk,” “cheese,” “yogurt” and “ice cream” should only be used by foods made from real milk;
  • The importance of a balanced approach to trade policy, especially as the 24-year-old NAFTA agreement is renegotiated by the United States, Canada and Mexico;
  • The need to reform immigration laws in a manner that helps preserve the existing agricultural workforce and allows for the future flow of dairy farm workers.

“We are excited to share the first-person perspective of America’s dairy sector at a time when elected officials in Washington really need to hear our voice about the topics that matter most to farmers,” said Melissa Griffin, a dairy farmer from Buckland, Mass., and chairwoman of the 2017 YC Advisory Council.

Griffin’s husband Adam, who co-chairs the council, added that “we were able to make our points about issues specific to dairy, such as the need for a viable farm safety net and the importance of integrity in federal food labeling laws.  We also showed how high-profile national issues such as trade and immigration affect our family farm in New England.”

Randy Mooney, chairman of NMPF and a dairy farmer from Rogersville, Mo., said that the YC Program “provides our community with a powerful grassroots presence.  We need their engagement in Washington because there are so many issues competing for the attention of Congress.  Thanks to our younger leaders stepping forward, we have a much better opportunity to reach our legislative goals.”

The NMPF Young Cooperators will join NMPF’s Board of Directors on Wednesday for their June board meeting.

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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 Pledge to Work with Trump Administration on NAFTA Modernization

ARLINGTON, VA – Two leading dairy groups said today they will work with the Trump Administration to modernize the North American Free Trade Agreement (NAFTA) to make sure it safeguards open trade with Mexico and confronts increasingly protectionist dairy policies by Canada.

In joint comments sent to the U.S. Trade Representative, the U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) describe the existing North American dairy landscape as one in which U.S. dairy products flow relatively unhindered to Mexico but are curtailed by Canada’s increasing use of policy tools violating international trade obligations.

“NAFTA has accomplished a great deal over the past two-plus decades, but it has also been overtaken by new, unanticipated forms of trade and trade problems,” said Tom Vilsack, U.S. Dairy Export Council president and CEO. “We agree that NAFTA could use a facelift and our industry looks forward to working with the Trump Administration to explore ways to preserve and strengthen it.”

Since NAFTA’s implementation, the United States has shifted from being a consistent net importer of dairy products to being a significant net exporter. Over the past five years, cumulative U.S. dairy exports are more than double the import total.

“The relationship between the dairy sectors of the U.S., Mexico and Canada is of such great importance to all of our nations that we need to devote the time and effort to make it better,” said Jim Mulhern, president and CEO of the National Milk Producers Federation.  “A modernized NAFTA agreement must preserve the open and dependable trade relationship with Mexico, and remove remaining barriers to trade that were not adequately addressed in the original agreement.”

Last year, the U.S. dairy industry exported $1.2 billion worth of dairy products to Mexico, a dramatic increase from $124 million in 1995. Mexico is the largest U.S. dairy export market by far, roughly double the size of the industry’s second-largest market, Canada.

The comments submitted to USTR say a modernized NAFTA can increase U.S. dairy exports, create jobs and build business partnerships between the three countries. On the other hand, withdrawing from NAFTA could devastate the U.S. dairy industry. Last year’s dairy exports to Mexico alone required the milk equivalent of 1,500 American dairy farms.

The document’s top request of the Trump Administration is for a “decisive confrontation and resolution” of nontariff concerns, including the removal of Canadian milk pricing classes 6 & 7, and the inclusion of Canadian dairy tariffs.

The industry’s main concern for Mexico is protecting the ability to sell cheeses with common names, like “parmesan,” “gorgonzola,” “asiago” and “provolone.” An aggressive ongoing effort by the European Union (EU) to claim sole ownership of these cheeses must be rejected by Mexican and U.S. officials, according to comments from USDEC and NMPF.

U.S. dairy companies have been working with partners in the Mexican dairy industry for years to build the size and variety of cheese demand in Mexico. The comments ask the Administration to make it clear that the U.S. is “vehemently opposed to the imposition of any new restrictions on the market access opportunities for U.S. products relying on common names.”

The document concludes by stating its commitment to work with the Administration to modernize NAFTA.

“Improvements to NAFTA that prioritize our positive trade relationship with Mexico and address Canada’s flouting of its trade commitments to us can be achieved and are worth pursuing,” the document said. “This is an essential agreement that the United States dairy industry, and in fact the broader economy, cannot do without. It is because NAFTA is so important that this modernization effort is so valuable.

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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 U.S. dairy producers and the cooperatives they collectively own. The members of NMPF’s cooperatives produce the majority of the U.S, milk supply, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more on NMPF’s activities, visit www.nmpf.org.

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.

Dairy Cooperatives Make Public Sustainability Commitment to Walmart

During Walmart’s Sustainability Milestone Summit in April, NMPF member cooperatives Dairy Farmers of America and Land O’Lakes, Inc. announced their participation in Project Gigaton. The initiative aims to reduce greenhouse gas emissions from key Walmart vendor operations and supply chains by one gigaton by 2030. Both cooperatives will use the new FARM Environmental Stewardship module to help track and communicate their continuous improvement regarding greenhouse gas emissions reductions occurring on dairy farms.

Project Gigaton identifies energy, agriculture, waste, packaging, deforestation, and product use and design as areas in which to focus emissions reduction efforts. Both DFA’s and Land O’Lakes’ commitments focus on manure management as one of the areas to track continuous improvement on dairy farms. Other areas highlighted include improved yield potential, farm efficiency, and reducing enteric emissions associated with ruminant digestion.

The FARM Environmental Stewardship tool estimates greenhouse gas emissions and energy intensity by using the results from a dairy life cycle assessment conducted by the Applied Sustainability Center at the University of Arkansas. FARM Environmental Stewardship is a voluntary tool available to all FARM Program participants.

FARM Animal Care Events Prepare Program Evaluators for Version 3.0

The second National Dairy FARM Program Evaluator Conference will be held in Indianapolis, Ind., on July 18-20, 2017. More than 400 trained FARM Animal Care evaluators will have the chance to network and discuss relevant topics in animal care, environmental stewardship and antibiotic stewardship.

During the three-day conference, FARM Animal Care Evaluators will spend a day with Elanco staff, take part in presentations on topics like “The Economics of Animal Well-Being” and the importance of employee training, and have the option of visiting a 3,000-cow dairy operation.

On July 18, Elanco staff will host a professional development training session to teach evaluators about their global business and commitment to feeding the world. On July 20, Evaluators have the option to visit Fair Oaks Farms, tour the dairy facilities and engage in discussion on employee training.

Registration is $199 with the optional Fair Oaks tour an additional $50. For more information and to register for the conference, please visit the conference website.

Earlier this spring, FARM program staff hosted the organization’s first Animal Care Evaluator and Trainer session of 2017 in Grand Rapids, Mich. FARM Animal Care evaluators are required to have either extensive on-farm experience, or a combination of experience and a relevant degree in dairy science, and must be recertified annually.

Twenty-five veterinarians, students, field staff and cooperative employees attended the two-day training, where they conducted a FARM evaluation. The training was co-conducted by Praedium Ventures and the FARM Animal Care staff.

With the implementation of FARM Animal Care 3.0, all evaluators who are recertifying, as well as evaluators and trainers who have not yet been recertified in Version 3.0, are required to attend an in-person training. The FARM Program will hold an additional Animal Care Evaluator and Trainer session in Albuquerque, N.M. on Nov. 14-15. Registration information is forthcoming. Learn more about upcoming trainings on the FARM Program website.

Livestock Farmers Seek Rehearing of Ruling on CERCLA and EPCRA Reporting

As June begins, dairy farmers and other livestock producers are asking a federal appeals court to decide that they should not have to file air emissions reports with local first responders. At issue is whether an April court ruling will impose new paperwork requirements on livestock producers, or whether the issue will be successfully appealed and resolved in a less burdensome manner.

NMPF has worked with federal regulators to minimize problems that may arise from an April 11 ruling, in which the U.S. Court of Appeals for the District of Columbia removed a long-standing exemption for dairy and other livestock operations from two federal laws requiring reporting any air emissions associated with animal manure. If the appeals court decision stands, cattle, pork and poultry farmers will have to file reports that, in virtually every case, local emergency response agencies can’t use and don’t want.

The National Pork Producers Council (NPPC), with which NMPF has been collaborating on this issue, has filed for a rehearing of the decision rendered April 11. The Environmental Protection Agency (EPA) has until June 9 to file a motion to stay the mandate to end the exemption, and until June 15 to file a motion to stay the mandate coupled with a petition for rehearing.

Back in 2008,  the U.S. Environmental Protection Agency (EPA)  exempted most farms from the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) and the Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA) reporting requirements for air releases from animal waste. Both rules were originally created to address accidental hazardous air emission emergencies. Initially, EPA did not hold that these measures warranted the inclusion of animal agriculture operations, but the recent appeals court ruling said EPA cannot simply ignore a statute because the reporting requirements “aren’t worth the trouble.” The final rule required CAFOs to continue reporting air emissions under EPCRA, but not under CERCLA; smaller farms were exempted from both rules.

On May 25, 28 U.S. Senators sent EPA Administrator Scott Pruitt a strongly worded letter urging EPA to “take immediate action to prevent the waste of federal, state and local resources designated for emergency response programs” and urged EPA to “challenge the D.C. Circuit decision to provide America’s farmers and ranchers with regulatory relief through agency direction and rulemaking.” In the letter to EPA, the senators estimated that 100,000 additional farms and ranches would need to file emissions reports, more than four times more than the number filed last year.

The letter noted that a reporting increase of this magnitude would be an enormous burden to the emergency response system – a point reinforced last week by the National Association of SARA Title III Program Officials (NASTTPO), the association that represents the state, local and tribal emergency response communities. NASTTPO said reports about ammonia from animal manure management “are of no value to first responders, and they are generally ignored because they do not relate to any particular event.”

NMPF staff have met with EPA officials about the need to challenge the court’s ruling and resolve the issue as quickly as possible.

NMPF Calls for Changes to EPA Regulations

National Milk joined 45 agriculture trade associations, dairy cooperatives and organizations last month in providing recommendations to the U.S. Environmental Protection Agency (EPA) about regulations the agency should repeal, replace or modify. NMPF identified 11 different regulations that need to be eliminated or modified, with the Waters of the U.S. (WOTUS) rule topping the list.

NMPF’s input to the EPA was prompted by a Feb. 24 presidential executive order that called for the “alleviation of unnecessary regulatory burdens on the American people.” The comments can be viewed here.

Regarding WOTUS, NMPF recommended repealing the existing rule and implementing a separate one that closely adheres to the language in the Clean Water Act (CWA) and aligns with recent Supreme Court decisions. EPA said it intends to follow through, and that the process to eliminate the current WOTUS rule is now at the Office of Management and Budget (OMB) for review. When that process is complete, EPA will initiate the creation of a revised WOTUS rule.

NMPF’s comments also asked EPA to repeal the application of the Spill Prevention Control and Countermeasures (SPCC) rule for farms. The SPCC rule impacts approximately 400,000 farms, but after five years, only one spill actually involved a farm.  EPA has the authority and flexibility to address concerns on farms, but previously chose not to do so.

The comments also requested the repeal of a provision in the Worker Protective Standard, which allows anyone claiming to be a “designated representative” to gain access to a farmer’s proprietary records on pesticide use.  The provision as drafted is ambiguous and provides no protection from fraudulent and counterfeit claims.

NMPF also raised concern with EPA’s Total Maximum Daily Load regulations under the Clean Water Act.  In recent years, the line of authority between the federal and state governments’ roles has become blurred, and many state agencies are not able to develop plans to effectively achieve water quality standards. NMPF asked EPA to provide clarity and ensure the states have the authority to set pollutant allocations within their borders.

Most importantly, in light of the April 11 U.S. Court of Appeals ruling [see next story] that exempted air emissions from manure under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) and the Emergency Planning Community Right-to-Know Act (EPCRA), the farm groups called for EPA to enact regulations confirming that manure is not regulated under CERCLA or EPCRA. The organizations also called for exempting manure under the Resource Conservation and Recovery Act (RCRA).

NMPF to Provide Informational Resources on FSMA Rule

The Food Safety Preventive Controls Alliance (FSPCA), of which NMPF is a member, is hosting several upcoming webinars about the Food Safety Modernization Act’s Mitigation Strategies to Protect Food Against Intentional Adulteration Rule (IA Rule). Offered in collaboration with the U.S. Food and Drug Administration, these webinars will provide stakeholders, including dairy cooperatives, with more information about the IA Rule. It will also allow food facilities that are required to comply with the rule to obtain a more in-depth understanding of those requirements. The IA rule does not apply to dairy farms.

Interested parties – including NMPF members – must register for the webinars. The first webinar is scheduled for June 20 at noon EDT, and will review the vulnerability assessment requirements of the IA Rule. The one-hour webinar will include a short Q-and-A session. Other webinar dates are:

Aug. 22, 2017 12:00 Noon EDT
Oct. 24, 2017 12:00 Noon EDT

Clay Detlefsen, NMPF’s senior vice president for regulatory and environmental affairs, and member of the FSPCA Steering Committee and the Intentional Adulteration workgroup, is creating training materials to help NMPF’s members understand the requirements of this and other FSMA rules. NMPF encourages its members with processing operations to take advantage of this opportunity. 

NMPF Facilitates NCIMS Passage of Proposals to Enforce Labeling, Enhance Safety of Dairy Foods

Several priority initiatives of NMPF and its members won the backing of the National Conference on Interstate Milk Shipments (NCIMS) at its biennial meeting in Michigan in mid-May. In a surprising rebuke to the U.S. Food and Drug Administration (FDA), state milk regulators requested that the federal agency work with them to clarify the proper use of milk product labeling terms, as they unanimously adopted a resolution offered by NMPF.

By approving this resolution, “the NCIMS delegates acknowledged that states need federal assistance in the regulation of all products utilizing standardized dairy terms. This will ultimately benefit consumers, who face an increasingly bewildering assortment of imitation dairy products,” said Beth Briczinski, NMPF’s vice president of dairy foods and nutrition. “It’s time for FDA to work with state agencies in defending standards of identity for dairy products.”

The NCIMS is a national cooperative regulatory program that includes state milk regulatory agencies, dairy companies and FDA. NMPF staff attended the conference to advocate positions of interest to dairy cooperatives and their producer members. The states collaborate with federal regulators and industry groups, including National Milk, to ensure the safety and integrity of dairy products regulated under the Grade “A” program, including fluid milk, yogurt and other dairy products. When the six-day meeting concluded, delegates had approved approximately 40 of the 100 proposals offered to revise the conference’s model milk sanitation ordinance and supporting documents.

NMPF staff and members significantly contributed to the drafting of two proposals that were ultimately passed by the state voting delegates to finalize the alignment of the Pasteurized Milk Ordinance (PMO) with the Food Safety Modernization Act (FSMA) Final Rule for Preventive Controls for Human Foods. NMPF has been working since FSMA was approved in 2011 to bring both regulatory schemes into one harmonized program.

NMPF also insisted on the importance of greater transparency and communication from FDA regarding its process for Grade “A” equivalence. NMPF was unhappy with the lack of details about how FDA would regulate this issue, which led to an NMPF proposal that called for increased information sharing by and communication with FDA regarding evaluations and determinations of milk safety program equivalence in other countries. At NCIMS, FDA pledged much greater transparency with the NCIMS membership on foreign equivalence determinations, and ultimately supported an amended version of the proposal.

NMPF also submitted several proposals that were passed by conference delegates to alleviate any confusion about the timing criteria for tanker washing and milk sample collection; increasing transparency around milk safety program equivalence in other countries; and updating the requirements for bulk milk transportation and the requirements for voluntary testing of milk for drug residues.

For further information on the NCIMS conference results, please contact Clay Detlefsen at CDetlefsen@nmpf.org  or Beth Briczinski at BBriczinski@nmpf.org.

DAIRY PRIDE Act Supporters Keep Grassroots Pressure on Congress

Grassroots efforts to urge Congress to pass the DAIRY PRIDE Act (DPA) continued during May, with over 600 letters of support sent to lawmakers through NMPF’s Legislative Action Center – a 50-percent increase within the last month. This surge in outreach from dairy farmers was driven by a new Facebook advertising campaign (featuring images such as the one at left) asking NMPF’s online community to express their support for proper dairy product labeling.

In addition, Florida dairy producer Ben Butler of Southeast Milk, Inc., submitted an opinion article to a major southern newspaper. In his op-ed for the Orlando Sentinel, Butler insisted on enforcing the country’s food-labeling laws to better protect milk from imposters.

“People are slowly returning to real, natural food,” he said. “Perhaps the best part about cow’s milk is that it’s been real and natural all along.”

NMPF continues to publish legislative action alerts, news articles, infographics and other materials that advocate support for DPA. NMPF strongly encourages cooperatives to share these materials with staff, producer-members and on social media to garner additional congressional support for the DPA measure.

The bipartisan DAIRY PRIDE Act would require the U.S. Food and Drug Administration (FDA) to enforce the long-standing regulation that milk must come from an animal source, thus prohibiting plant-based “milks” from using dairy terminology on their labels. NMPF has continued to build support for the House and Senate companion bills since their introduction in late January, including working with farmers to publish several op-ed pieces in major regional newspapers.

To date, congressional support includes Angus King (I-ME), Tammy Baldwin (D-WI), Debbie Stabenow (D-MI), Jim Risch (R-ID) and Mike Crapo (R-ID) in the Senate; and Reps. Peter Welch (D-VT), Mike Simpson (R-ID), Sean Duffy (R-WI), Joe Courtney (D-CT), David Valadao (R-CA), Susan DelBene (D-WA), Collin Peterson (D-MN), Mike Gallagher (R-WI), Glenn Grothman (R-WI), Ron Kind (D-WI), Thomas Rooney (R-FL), James Sensenbrenner (R-WI), Richard Nolan (D-MN), Elise Stefanik (R-NY) and James Comer (R-KY)  in the House.

CWT Helps Member Co-ops Secure 9.6 Million Pounds of Export Sales

Cooperatives Working Together assisted member cooperatives last month in winning 54 contracts to sell 8.1 million pounds of cheese and 1.6 million pounds of butter to customers in Asia, Europe, the Middle East, North Africa and Oceania in May 2017. The U.S.-made dairy products will be shipped from May through August 2017.

These transactions raise the total CWT-assisted product sales so far in 2017 to 37.7 million pounds of cheese and 3 million pounds of butter. These sales are going customers in 17 countries in five regions, and will move the equivalent of 415.8 million pounds of milk on a milkfat basis overseas through August 2017.

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

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation. All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are also available on the CWT website.