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U.S. Dairy Markets See Strong Exports and Consumption Growth
NMPF’s Rice Updates Dairy Radio Now Listeners on New Export Challenges
NMPF’s Director of Trade Policy Tony Rice tells Dairy Radio Now listeners how NMPF is working to prevent a loss of milk powder exports to Colombia, which is taking unjustified steps to raise tariffs on U.S. products. Rice also provides an outlook of the potential impact on the dairy sector if a threatened labor strike materializes next week in Eastern and Southern ports.
NMPF’s Morris Discusses Colombia Trade Dispute
Shawna Morris, NMPF’s executive vice president for trade policy & global affairs, explains how Colombia moving to impose an additional tariff on U.S. milk powder exports is unjustified and unhelpful for dairy farmers and consumers in both nations. Morris speaks in an interview with RFD-TV.
Dairy Diversity Ready to Grow
It might sound crazy to think that a product that’s already in 94 percent of U.S. households has room to grow, but the numbers indicate it’s true. Here’s what we’re talking about:
This comes from a study done by the International Food Information Council, supported by NMPF and the International Dairy Foods Association, on consumption habits among diverse U.S. populations. What’s striking is that, even though self-reported lactose intolerance among non-White populations runs at roughly 30 percent (according to the same study), clear majorities among Black, Hispanic and Asian/Pacific Islander populations haven’t even tried milk that addresses that intolerance, forgoing an option that provides 13 essential nutrients. And presumably, some of those non-milk drinkers are in that 6 percent who don’t have it in their refrigerators.
(And conversely, some of that 94 percent must include lactose-intolerant consumers. Are they taking lactase pills to aid in digestion? Are other household members the milk drinkers? There’s still much to know.)
The point is this: At a time when the committee drafting recommendations for the next Dietary Guidelines for Americans is looking at nutrition science and contemplating recommendations that are appropriate to the lived experiences of a wide range of Americans, it’s important to meet people where they are. For the overwhelming majority of them, that means a place where they have milk in the fridge. Those who aren’t there are in a place where awareness of the numerous ways to benefit from dairy nutrition, regardless of lactose tolerance, isn’t what it needs to be.
That suggests a need to double down on offering dairy’s benefits in a way that’s tailored to the needs of individual communities. It means listening to communities that value dairy and wish it could be offered more readily, in more accessible forms. It means serving that 94 percent of households with milk — and using the tools available to raise that percentage. It emphatically does not mean de-emphasizing dairy as a critical nutritional option for all Americans — or even worse, suggesting it be replaced by sources that aren’t nutritionally equivalent.
NMPF has a call to action that dairy advocates can use to help get this message across. Public health, and the best public health guidance, is important to all Americans. And dairy is ready to provide high-quality nutrition that’s affordable and accessible to all.
U.S. Dairy Calls for Swift Government Action as Colombia Moves to Impose Unjust Tariffs
The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today expressed their strong disappointment with a preliminary ruling by Colombia’s government that unfairly targets U.S. dairy exporters by advancing baseless claims that U.S. milk powder was unduly subsidized. The groups called on U.S. trade officials to take immediate action to challenge Colombia’s unjust decision and defend American dairy farmers and exporters.
Based on the announcement by Colombia, the preliminary findings call for an additional 4.86% tariff to be implemented on U.S. milk powder exports.
USDEC and NMPF have been working closely with allies in Colombia as well as their members to demonstrate that no U.S. milk powder going to Colombia is subsidized and that Colombia’s dairy sector challenges are due to a variety of other factors. Even the Colombian government acknowledged that there are “many elements that currently affect the Colombian dairy sector”.
“It’s extremely unfortunate that the Colombian government has chosen to use these politically motivated allegations to impose protectionist trade barriers, which will ultimately not only harm U.S. exporters, but Colombian companies and workers who rely on U.S. dairy products and ingredients,” said Krysta Harden, president and CEO of USDEC. “The U.S. government must act promptly and forcefully to send a message that these sorts of tactics will not be tolerated.”
“Today’s preliminary findings show yet again that the current Colombian government does not respect its trade commitments,” said Gregg Doud, president and CEO of NMPF. “Instead of working with the U.S. government and dairy industry to resolve this issue in a mutually beneficial way, Colombia has instead chosen to move forward with this meritless investigation. The U.S. government must use every tool at its disposal to counter the unwarranted tariffs on U.S. milk powder.”
Colombia proceeded with the preliminary imposition of new tariffs on U.S. milk powder exports without evidence of damage caused by those products on its producers or any indication that government support to U.S. dairy farmers resulted in lower U.S. milk powder prices. The action follows a similar case Colombia initiated against U.S. ethanol exports, along with unwarranted import bans on U.S. poultry and beef exports.
The next steps in the investigation include the collection of further evidence by the Colombian government and a public hearing to consider arguments in the case near the end of the evidentiary period. The preliminary tariff will be in effect for four months as the investigation moves forward. A final determination to impose tariffs could be maintained for up to five years prior to review.
Dairy Radio Now Listeners Learn of House Hearing Examining FDA Labeling Failure
NMPF’s Executive Vice President Paul Bleiberg explains for Dairy Radio Now listeners why the House of Representatives held a hearing this week to examine how the Food and Drug Administration is focusing its resources. Bleiberg said Deputy FDA Commissioner Jim Jones faced scrutiny from lawmakers about the agency’s failure to enforce standards of identity for the labeling of plant-based dairy imitators, a point NMPF has been raising for years.
Lactose Misinformation is Intolerable
Dairy’s opponents have a new bad-faith argument — that because of lactose intolerance, dairy is inappropriate for diverse communities. It’s a bogus case, but it seems to be seeping into public policy discussion. Before regretful decisions start to be made to the detriment of public health, let’s make it clear: Dairy is a socially inclusive, equitable solution that can benefit all communities.
By the standards of contemporary misinformation, it’s easy to see how lactose-intolerance arguments have gained traction. They include a fact — that some populations have difficulty digesting lactose, a natural sugar found most commonly in milk — and turn it into a myth: that because of this intolerance, dairy should be de-emphasized as a source of nutrition.
But what suits the need of an activist group that may or may not be focused on nutrition doesn’t suit the public interest. A closer look at what dairy provides, and how it can be provided in a way that respects people’s lived dietary experiences and nutritional needs, shows just how misguided, and potentially damaging, an anti-dairy message cloaked in equity rhetoric can be.
A few points to ponder:
- Dairy is an important source of 13 essential nutrients, including three of the four identified as of public health concern among Americans in the 2020 Dietary Guidelines for Americans. Overall, 89 percent of Americans under-consume dairy, according to that guidelines committee’s report.
- Dairy beverage substitutes, such as plant-based beverages, are not nutritionally equivalent to dairy and are in fact inferior in significant ways. Even fortified soy drinks, currently recommended as a substitute for dairy under the U.S. dietary guidelines, are chemically dissimilar and may interact with human bodies differently.
- At the same time, a lactose-free substitute for traditional milk is available that offers true nutritional equivalence. That substitute is called… lactose-free milk, and it solves tolerance issues for most people. It’s hard to imagine a more equitable nutritional solution than giving everyone the same beverage, tailored to their needs — unless, of course, you’re either misinformed or not truly concerned about equity.
- Beyond milk, lactose is far from predominant in dairy products, giving lactose-intolerant consumers even more options. Butter, for example, has only trace amounts of lactose. Yogurt has much less lactose than milk, and many varieties of cheese, including Cheddar, Colby, Monterey Jack, mozzarella and Swiss, are also low-lactose. Kefir, a thicker, creamier beverage, is lower-lactose than milk, and includes probiotics that help with lactose digestion. These options provide abundant nutrition within healthy dietary patterns, even for many who experience varying levels of lactose intolerance. Here is a helpful guide to lactose in dairy and how to consume dairy with confidence.
- Awareness of lactose-free options is low in diverse populations, which shows a need for education, not deprivation. According to research done last year by the International Food and Information Council, more than half of members of U.S. racial and ethnic minority groups have never tried lactose-free milk, despite having higher reported percentages of lactose intolerance than White Americans.
- With increasing sales and newer production practices, the traditional price premium between traditional and lactose-free milk is showing signs of fading, with store brands now offering lactose-free milk.
Nutrition science is challenging, and nutrition policy even more so, as different interest groups try to mold eating habits in ways that sometimes are meant to achieve goals other than effective nutrition. In the end, federal food policy is meant to help people nourish themselves — and for the highest quality nourishment, dairy still provides an unparalleled package, for everyone.
It’s a fact: A healthy, rich-in-dairy diet can be low in lactose or lactose-free. Be wary of arguments that are truth-free instead.
U.S. defends dairy in Colombia
By Jaime Castaneda, Executive Vice President, National Milk Producers Federation
NMPF and the U.S. Dairy Export Council (USDEC) are working to preserve market access for American dairy exports to Colombia following the Colombian government’s abrupt July 5 decision to initiate a politically driven “subsidies and countervailing measures” investigation into milk powder imports form the United States.
The move has little to do with U.S. milk and everything to do with Colombia’s domestic politics. In an effort to reverse slipping popularity with voters, the Colombian government has decided to misuse trade tools usually reserved for private industry to counter legitimate damage from “dumped” product sold at below market rates. In contrast to this, Colombia’s government has instead launched this case on its own, alleging that U.S. milk powder exports from 2020 to 2023 were unduly subsidized by U.S. government programs and damaged Colombian dairy producers. Unfortunately, due to the investigation’s political nature, the Colombian government could impose tariffs on imported U.S. milk powder products as early as September 16. That would be certain to stifle trade to the market.
NMPF and USDEC have been working with U.S. exporting cooperatives and companies, legal teams, and the U.S. government to submit a strong, data-driven defense proving that this investigation is without merit.
In their counterarguments, NMPF and USDEC note that the investigation is baseless for many reasons, including:
- Product comparison: Imported U.S. milk powder and domestically produced Colombian fluid milk are distinct products with different physical characteristics and end uses, making them non-comparable.
- Subsidy misinterpretation: The Colombian government incorrectly assumes that U.S. dairy producer support directly benefits milk powder manufacturers, which is not the case.
- Lack of causal link: U.S. milk powder imports haven’t caused any damage to the Colombian dairy industry. Evidence simply doesn’t exist.
Because of the political nature of this investigation, a fair result is not guaranteed, which means that U.S. government intervention may be necessary. NMPF and USDEC are urging U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack to use all available tools to respond forcefully should Colombia impose tariffs on U.S. milk powder imports despite the lack of evidence meriting such a result.
Congress is also paying attention. A letter sent by the bipartisan leads of the U.S. House of Representative’s Agricultural Trade Caucus to the Colombian Ambassador to the United States highlights the U.S. dairy industry’s long-standing commitment to work with its Colombian counterparts and encouraged the two industries to work together to strengthen the dairy sectors in both countries instead of pursuing meritless investigations.
Colombia’s investigation will play out over months, starting with preliminary results and potential provisional measures as early as September 16, followed by a public hearing and additional comment periods.
At stake is $70 million in annual U.S. milk powder exports to Colombia.
While not a trivial amount by any means, this investigation could also set a dangerous precedent for like-minded governments to imitate. Over the past several years, protectionist sentiments have grown around the world, and Latin America is no exception. The region has become a battleground in the effort to preserve existing trade opportunities, flaring up from Peru and Ecuador to Brazil and Mexico.
While cooperating with the investigation, NMPF and USDEC continue to engage with policymakers and allied organizations to seek a positive conclusion. Regardless of which way this investigation turns out, it’s important for the United States to respond forcefully and let its trading partners know that such maneuvers will not be tolerated.
This column originally appeared in Hoard’s Dairyman Intel on Sept. 5, 2024.
Landmark Agreement Secures U.S. Exporters’ Rights to Use Common Names in Chilean Market
U.S. exporters of certain cheeses and meats will continue to be able to use those terms in Chile.
The Consortium for Common Food Names (CCFN), National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) commended the passage into law of commitments by the Chilean National Congress today that safeguards the rights of U.S. cheese and meat exporters to use certain common names – such as “parmesan” and “prosciutto” – to market and sell their products in the Chilean market.
The agreement came together following an exchange of letters between U.S. Trade Representative Katherine Tai and Chile’s Undersecretary of International Economic Relations Claudia Sanhueza on June 21, which confirmed a mutual understanding and agreement that U.S. exporters will be able to continue to market their products in Chile using a number of common cheese and meat terms.
Certain provisions under the EU-Chile trade agreement signed in December 2023 enabled the unfair treatment of U.S. meat and dairy products by abusing geographical indication protections. In response, CCFN, NMPF and USDEC worked closely with U.S. and Chilean government officials to address the U.S.-Chile Free Trade Agreement’s (FTA) threats to U.S. cheese and meat products.
Included in the agreement is a mutual understanding regarding “prior users” of certain cheese and meat terms in the market. For a limited number of products that the EU allowed to be grandfathered and that American exporters had exported to Chile prior to the updated FTA, all U.S. producers of those products will have the right to continue to use those terms in Chile. In addition, an extensive list of common names will also be protected for use in Chile for all U.S. producers. The exchange of letters is now integrated into the FTA between the two countries and is subject to its provisions, including the FTA’s enforcement measures.
“CCFN applauds the Administration for their initiative to negotiate the protection of parmesan and a number of other key products,” said Jaime Castaneda, executive director for CCFN. “We greatly appreciate USTR and USDA’s work with the Chilean government and urge the Administration to continue its efforts to push back against the European Union’s strategic monopolization of common names. To that end, it’s vital that the U.S. establish a firm policy of proactively seeking protections for common name products with key trading partners all around the world.”
“Chile is a critical market and partner for U.S. dairy in Latin America,” said Krysta Harden, president and CEO of USDEC. “We greatly appreciate USTR and USDA for their hard work to strengthen this relationship, which will directly help U.S. producers grow their businesses in Chile. We look forward to continuing to work together to create new avenues for U.S. dairy exports and to avoid similar challenges from cropping up in other international markets.”
“This agreement is a milestone for U.S. dairy producers,” said Gregg Doud, president and CEO of NMPF. “It ensures that many of our products will maintain fair access to the Chilean market, supporting the growth and success of American dairy farmers on a global scale. Now, we need to build on that momentum by securing agreements with other trading partners to protect export opportunities for even more U.S. cheeses.”
The agreement will enter into force 90 days from the National Congress’ Sept. 3 approval.
Outreach Helps Weather Outbreak
- Helped lead and coordinate industry response to H5N1 in dairy cattle developments
- Expanded educational opportunities for NMPF members
- Generated advocacy opportunities via Young Cooperators program and other initiatives
NMPF communications staff played an industry leading role in heading off a potential crisis in the public’s confidence in milk via responding to the H5N1 outbreak in dairy cattle, coordinating media outreach while providing members with up-to-the-minute updates on federal and marketplace responses to an unprecedented animal health concern.
Coordinating with other industry actors including the cross-sector Dairy Communications Management Team, NMPF led the drafting of initial messages to dairy farmers and assisted in messages distributed to the public and media upon USDA’s first disclosure of cases on March 25. Numerous NMPF staff interviews with news organizations, combined with frequent member alerts and a series of well-attended webinars represented a multi-prong approach to managing the acute phase of reporting. In recent weeks, as cases have ebbed, NMPF has continued in its informational role.
As a result in part of NMPF’s efforts, no discernable decrease in milk sales was connected to the outbreak, while farmer navigation of changing federal and state rules, while inevitably rocky at times, was smoothed considerably by accurate, timely information. As 2024 approached its waning month, continued sporadic cases of H5N1 in dairy herds signaled that the virus wasn’t simply going to disappear, underscoring the need for continued vigilance.
NMPF this year significantly expanded its webinar offerings, providing members with valuable educational opportunities. NMPF offered 13 member webinars during the first eight months of the year, covering critical topics such as FMMO modernization, biosecurity, cybersecurity and farmer mental health. By broadening its educational resources, NMPF continues to provide tools to its members to help them navigate complex challenges, enhance operations and maintain a competitive edge in the marketplace.
NMPF also developed and served the next generation of dairy-farmer leadership through its National Young Cooperators (YC) program, hosting its annual Dairy Policy and Legislative Forum in June. Forty-nine young dairy farmers and cooperative coordinators from 17 states representing ten member cooperatives participated in discussions about political engagement and dairy policy issues along with training on how to be an effective advocate and spokesperson for dairy. YCs then headed to Capitol Hill to speak with members of Congress and their staff about NMPF priorities including the 2024 Farm Bill, dairy labeling and foreign market access.
FARM Updates Program Areas and Leads in H5N1 Response
- Launched Animal Care Version 5
- Launched Workforce Development Version 2
- Provided Biosecurity best practice amidst H5N1 Outbreak
The National Dairy Farmers Assuring Responsible Management (FARM) Program’s commitment to continuous improvement has shown throughout the year. Updated versions of its Animal Care, Workforce Development, and Environmental Stewardship program areas are advancing its commitment to sharing dairy’s positive social responsibility story. The program also turned its attention to supporting farmers as they navigated the H5N1 outbreak, an immediate crisis that may become a long-term effort.
FARM Animal Care Version 5 released updates July 1 focusing on best practices for calf disbudding, colostrum management, and pre-weaned calf care. Euthanasia and fitness to transport for all age classes rounded out the latest updates. The changes came after a two-year review and revision period that included input from FARM’s Farmer Advisory Council and Animal Care Task Force, along with NMPF’s Animal Health and Well-Being Committee. Since launching, 448 Version 5 evaluations have been completed by 72 participant cooperatives and processors.
FARM Workforce Development Version 2 also debuted in July, with updates focused on improving the evaluation tool used on-farm to assess human resource management and safety best practices. Seven questions were added to strengthen the tool’s coverage of communication and performance management.
FARM Environmental Stewardship Version 3 will integrate the Ruminant Farm Systems (RuFaS) model, as the new engine behind the tool. This model incorporates updated science and the ability to run what-if scenarios to assess practice and technology options. results. The updated platform offers flexibility, with the choice to enter minimum data inputs like Version 2 and optional data inputs – like details on crop production practices – for more tailored results. This upgrade will support industry efforts to be greenhouse gas-neutral by 2050 and respond to growing customer requests.
While FARM Program updates have been implemented, FARM Biosecurity proved essential in helping guide dairy farmers through a real-time biosecurity threat – the presence of H5N1 virus in dairy cattle. FARM provided timely, accurate information and industry-leading resources as the first cases of H5N1 appeared in U.S. dairy cattle.
NMPF’s Chief Science Officer. Dr. Jamie Jonker, served as a leading industry expert and spokesperson shortly after the first USDA confirmation of H5N1 in Texas dairy cattle on March 25. Jonker also led an April 1 NMPF member and FARM participant webinar on the topic that also featured Dr. Mark Lyons from USDA and Dr. Fred Gingrich from the American Association of Bovine Practitioners, giving the latest information on the fast-moving situation. The webinar attracted 1,380 registrants and began an ongoing industry education effort.
Dairy producers and cooperatives can enroll in FARM Biosecurity- Enhanced training to learn the basics of developing an enhanced biosecurity plan. Additionally, there is a suite of resources such as the Biosecurity Prep Guide, User Guide for the FARM Biosecurity database, map checklist, and video tutorials for those interested.
Also highlighting the first half of 2024, FARM held its annual Evaluator Conference July 22-24 in Lexington, KY for FARM Program Evaluators to connect, learn about recent program updates and hear from allied industry subject matter experts. The first in-person Evaluator Conference since 2021 featured 50 evaluators and 29 organizations and was sponsored by Alltech, which also provided an evening reception and distillery tour. Participants heard from industry professionals on assorted topics surrounding the Animal Care, Environmental Stewardship, Biosecurity and Workforce Development program areas.
