ARLINGTON, VA – The dairy industry is eager to work with U.S. Trade Representative Robert Lighthizer to protect and expand market access for U.S. dairy while addressing problematic Canadian dairy policies, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) said today following Lighthizer’s Senate confirmation.

Lighthizer will begin work on a variety of pressing trade policy issues, including the renegotiation of the North American Free Trade Agreement (NAFTA), expanding market access channels in Asia, and preventing the loss of common food names.

“We welcome Mr. Lighthizer’ s confirmation because of his grasp of global trade rules and understanding of the importance of balanced trade agreements to the U.S. dairy sector,” said NMPF President and CEO Jim Mulhern. “We will continue to urge USTR to focus on protecting Mexico, our No. 1 market, insist that Canada revoke its detrimental new milk pricing policy, and pursue additional export opportunities around the world.”

Another significant challenge for Ambassador Lighthizer is the European Union’s aggressive stance on the use of geographic indications (GIs). Not only must the United States resist using GIs at home, Lighthizer has said, it should discourage other countries from agreeing to use them, as well.

“As the Trump Administration’s trade policy strategy develops, we want to build upon the U.S. government’s past successes in pushing back against the EU’s global GI agenda,” said Tom Vilsack, president and CEO of USDEC. “We also want to examine opportunities for bilateral trade agreements in key markets like Japan.” Vilsack recently visited Japan on a trade mission.

Lighthizer’s experience includes deputy trade representative under President Ronald Reagan, chief of staff for the Senate Finance Committee, as well as direct private sector experience in enforcing trade rules on behalf of his clients.

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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.

ARLINGTON, VA – “We congratulate Dr. Gottlieb on his confirmation by the Senate today. NMPF will engage with the U.S. Food and Drug Administration’s new leadership on ways to strengthen the safety of the food supply, promote the judicious use of antimicrobials in livestock, and ensure the clear, consistent labeling of foods regulated by FDA.

“We share Commissioner Gottlieb’s goal of remedying the bureaucratic inertia that has hindered FDA’s work on several issues. This should include the proper labeling of foods that are disregarding FDA standards of identity. For too long, FDA has not responded to dairy imitators’ obvious violation of FDA’s clear definition that milk, cheese, ice cream and yogurt must be made from real dairy sources.

“We welcome a more proactive, responsive FDA on the food standards issue to reduce the confusing terminology proliferating in grocery stores and retail food markets. This will greatly enhance the credibility of the agency as the federal authority on food labeling, composition and safety.”

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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 Board of Directors Unanimously Approves Recommendations to Margin Protection Program

The Margin Protection Program-Dairy (MPP-Dairy) was developed by the National Milk Producers Federation through a lengthy, detailed and deliberative process in response to the dairy industry financial crisis of 2009. However, when Congress eventually enacted the program in 2014, the MPP had been amended and diluted to the extent that it, too, fell short of providing the protection required of an effective farm safety net program. Over the last two years, NMPF staff gathered feedback on the program from producers across the country. At the 2016 NMPF Annual Meeting, NMPF Chairman Randy Mooney re-established the Economic Policy Committee (EPC) to review the program and suggest possible improvements. The NMPF Board of Directors approved the final list of recommendations at its meeting on March 7.

• NMPF news release on the board’s approval
• 1-page summary of the recommendations
• 3-page summary of the recommendations 

Over the next few weeks, the Innovation Center for U.S. Dairy – in partnership with dairy farmers through their checkoff – will launch a multi-year, multi-stakeholder proactive campaign that boldly and proudly tells dairy’s stories through people in the industry.

The campaign kicks off on World Milk Day on June 1, and celebrates June Dairy Month through a creative and engaging communications effort. During this time, farmers, cooperatives, brands and other dairy community members will come together to spark connections with consumers by sharing stories that build dairy trust and relevance.

Farmers have some of most credible voices in telling dairy’s story about how milk is produced and the commitment to animal care and environmental stewardship. Visit www.dairyinfo.org for more information about the campaign and content farmers can share to reignite the passion people have for nature’s perfect food. Further details about the campaign and how to share its content will come next month.

The National Dairy FARM Program released several farm-focused materials in April, each focused on one of its three pillars: Environmental Stewardship, Antibiotic Stewardship and Animal Care. All of the materials are now available on the FARM Program website.

In celebration of Earth Day on April 23, the FARM Program’s Environmental Stewardship (ES) module released its first-ever guide, the Environmental Stewardship Continuous Improvement Reference Manual, in cooperation with the Innovation Center for U.S. Dairy. The guide provides a comprehensive suite of on-farm management practices to reduce a farm’s environmental footprint and improve its profitability. Specifically, the manual features a detailed explanation of the Environmental Stewardship module, as well as strategies to reduce on-farm greenhouse gas (GHG) emissions in various areas of farm management, including feed, manure, energy, forage and animal health.

From its Antibiotics Stewardship pillar, FARM launched the 2017 edition of the Milk and Dairy Beef Drug Residue Prevention Manual, the primary educational tool for dairy managers about the judicious, responsible use of antibiotics and how to prevent drug residues in milk and meat. The newest edition now identifies drugs subject to the newly implemented Veterinary Feed Directive (VFD), and contains updated industry data on the declining presence of antibiotic residues found in milk.

Finally, to help animal handlers improve their stockmanship skills, FARM Animal Care and the National Beef Quality Assurance program jointly released a training video, now on the FARM Program website. The 27-minute video is divided into several chapters and multiple choice questions to test viewers on the content. The video can serve as a training resource to satisfy the FARM Animal Care Version 3.0 requirement for annual employee training.

For any questions regarding these materials, please contact Beverly Hampton.

An appeals court ruling last month could significantly expand the air emissions reporting requirements imposed on animal agriculture operations across the nation, if the court’s decision is not challenged. NMPF is working with federal regulators to assess and mitigate the problems that may arise from the April 11 ruling, in which the United States 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.

Back in 2008,  the U.S. Environmental Protection Agency (EPA) issued a final rule that 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.

The exemption from CERCLA notifications applied to the general release into the air of hazardous substances from animal waste (on dairy farms, this includes ammonia and hydrogen sulfide). The exemption from EPCRA notifications applied only to air releases of hazardous substances (on dairy farms, this includes ammonia and hydrogen sulfide) from animal waste on farms below the thresholds specified in the U.S. regulatory code 40 CFR 355.31, and for farms that are not confined. With respect to dairy, the reporting size threshold was 700 mature dairy cows, milked or dry.

EPA has not clarified the requirements for reporting in response to the court decision, nor has it revealed its intention to file an appeal. NMPF and other agriculture groups have conveyed to EPA the gravity of the situation and the short timeline to act. If the decision stands, CAFOs and smaller farms that exceed the daily reportable quantity (RQ) of 100 pounds per day of air emissions of either ammonia or hydrogen sulfide could have to file the required notifications. NMPF estimates that farms with as few as 250 cows could be required to report. The court will not release its mandate to vacate the exemption until the time to appeal has run out around May 26 (45 days from the decision).

NMPF and other animal agriculture associations are discussing all short-term options, which include appealing the decision or securing a regulatory fix from EPA, as substantive discussions with EPA begin.  Discussions with Congress about a legislative intervention as a long-term solution also are underway. For now, dairy producers should not take any action until the best course of action has been determined. For further information, please contact Clay Detlefsen at or Jamie Jonker.

In early April, the U.S. Food and Drug Administration (FDA) announced three waivers to the final Sanitary Transportation rule mandated by the Food Safety Modernization Act (FSMA), including the Pasteurized Milk Ordinance (PMO) waiver long sought by NMPF.

NMPF has advocated for several years for a waiver for PMO-regulated facilities. When the initial Sanitary Transportation of Human and Animal Food rule was proposed, FDA said it intended to waive the rule’s requirements in certain cases “in which they would not be needed to further protect foods from becoming unsafe.”

The waiver, to be issued soon, applies to inbound raw milk, outbound shipments of milk and cream, and shipments of finished Grade “A” milk products from PMO-regulated facilities.

As part of the regulatory process, NMPF asked for clarification about the phrase “only when transporting Grade ‘A’ milk and milk products” out of concern that most outbound shipments of finished Grade “A” products do not comprise only Grade “A” products, but include non-Grade “A” products like orange juice or ice tea. Thus, the waiver could be viewed as nullifying an outbound shipment containing both Grade “A” and non-Grade “A” products.

FDA declined to provide any further insight, but NMPF holds that outbound shipments of finished products from a PMO-regulated facility are not subject to the rule, even if the shipment contains non-Grade “A” products. For more information about this rule or the waiver, please contact Clay Detlefsen.

Dairy products should be labeled as “healthy” and the government should recognize new science that shows the benefits of dairy at all fat levels, NMPF told the U.S. Food and Drug Administration (FDA) last month as the agency takes input from industry groups about food labeling terminology.

NMPF told the FDA that dairy should be included in a separate category for “healthy” claims, similar to fruits and vegetables. National Milk also said FDA should disregard criteria on total fat and saturated fat in recognition that dairy foods are nutrient-dense and part of three different eating patterns that the Dietary Guidelines for Americans (DGA) defines as “healthy.” The comments noted that the DGA recommends more dairy consumption.

FDA has long enforced rules about which foods can bear the term “healthy” and similar claims on their packaging. NMPF said that because of new scientific evidence, dairy foods considered “healthy” should not be limited to low-fat and fat-free varieties, but also include reduced-fat varieties. NMPF also advised FDA to be flexible in changing “healthy” guidelines so the agency could later add full-fat dairy products as scientific understanding progresses about the benefits of dairy fat in the diet.

Along with other groups, NMPF said FDA should better align its criteria with authoritative dietary guidance, including the DGA. Food identified as “under-consumed” by the DGA should automatically be able to make a “healthy” claim, NMPF said.

Dairy farmers in April continued to speak out in support of the DAIRY PRIDE Act (DPA), legislation that would prompt the U.S. Food and Drug Administration (FDA) to enforce its own law stating that any food product using the term “milk” on its label must come from an animal source, not a plant.

In April, two Virginia dairy farmers submitted op-ed columns to prominent local newspapers explaining their support of the DPA and why their elected officials should back the bill. Matt Nuckols (right), of Beaverdam, Va., wrote in the Richmond Times-Dispatch that is it unfair for FDA to ignore its own food labeling laws when dairy producers strictly follow government regulations to produce a safe, healthy food.

“We ask that these agencies honor their side of the deal, and enforce the rules for other ‘milk’ makers, too,” Nuckols said.  He indicated that government regulators should not be able to pick and choose which policies to enforce, any more than farmers should be able to.

Mark Sowers (left), of Floyd, Va., used his column in the Roanoke Times to note the importance of DPA for Virginia’s 1,000 dairy operations and the state’s robust agriculture sector.

“In 2014, milk was the state’s third-most profitable agricultural product, bringing in $478 million from over 1,000 operations,” he said. “Virginia’s reputation as a strong agriculture state is too great to risk the invasion of these imitators.”

Earlier in April, Sen. Angus King (I-ME) announced his support for the DPA, following another column from Maine dairy farmer Travis Fogler in the state’s largest newspaper, the Portland Press-Herald. To date, the DPA has been backed by the following senators and congresspersons: King, Tammy Baldwin (D-WI), Debbie Stabenow (D-MI) and Jim Risch (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) and Elise Stefanik (R-NY)  in the House.

NMPF continues to publicize legislative action alerts, news articles, infographics and other materials that inform and encourage support for DPA. NMPF strongly encourages cooperatives to share these materials with staff, producer-members and on social media to whip up industry and congressional support.

Cooperatives Working Together (CWT) assisted member cooperatives in securing 40 contracts to sell 6.2 million pounds of cheese to customers in Asia, Central America, the Middle East and Oceania in April 2017. The product will be shipped from April through July 2017.

Adding these transactions to the other sales made so far this year raises the total CWT-assisted product sales to 29.7 million pounds of cheese and 1.4 million pounds of butter. These sales are destined for customers in 14 countries in five regions, and will move overseas the equivalent of 306 million pounds of milk, on a milkfat basis, in the first seven months of 2017.

Helping 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 available on the CWT website.

The USDA’s National Agricultural Statistics Service (NASS) reported that the U.S. average all-milk price dropped $1.20 per hundredweight from February to March, to $17.30 per hundredweight. The price deterioration resulted from declines of more than one dollar per hundredweight in both the Class III and the Class IV federal order prices from February to March. The Class III price has weakened as milk production growth in the past several months has led to increased domestic cheese production and stocks. The Class IV price has weakened as skim milk powder remains oversupplied on world markets.

Feed ingredient prices for March announced by NASS and USDA’s Agricultural Marketing Service showed small and partially offsetting changes from February. These translate into a monthly Margin Protection Program (MPP) feed cost of $7.95 per hundredweight, up $0.03 from February.  That slight increase, coupled with the decline in the milk price, generated a MPP margin for March of $9.35 per hundredweight, down $1.23 per hundredweight from February.

USDA’s current MPP margin forecast, based on early May CME futures settlements, projects the margin will remain above $8 per hundredweight during 2017. However, USDA currently projects a slight probability that the margin will fall below the $8 coverage level during May-June, with lower probabilities that this level will trigger MPP payments during other bimonthly periods this year.

USDA’s MPP margin forecasts are updated daily online. NMPF’s Future for Dairy website offers a variety of educational resources to help farmers make better use of the program.

NMPF’s campaign to challenge the erosion U.S. cheese makers’ ability to use common food names was reflected in a new report from the Trump Administration cataloguing the potential loss to American businesses caused by European trade policy.

Last week, the U.S. Trade Representative’s Office (USTR) outlined the Trump Administration’s commitment to curtailing the damaging abuses of geographical indications (GIs) – particularly by the European Union (EU). NMPF joined the Consortium for Common Food Names (CCFN) in hailing the report as a strong, positive signal on how the administration plans to tackle these types of trade and intellectual property issues in the next four years.

The report highlighted ongoing threats to U.S. companies that legally use common food names both within the United States and in global trade. This report is released each year by the USTR’s office, and outlines extensive efforts that the administration is making around the world to stem the EU’s efforts erect barriers to U.S. exports.

Earlier this year NMPF expressed its concerns to USTR about the growing threat to U.S. manufacturers of foods with common names, including cheeses such as parmesan, feta and Asiago. Among NMPF’s specific requests to the USTR: hold trading partners accountable for their commitments; preserve market access negotiated through earlier trade agreements; and prevent competitors from monopolizing widely used generic food terms.

“We cannot allow our trading partners to chip away at the value of prior World Trade Organization or free trade agreement concessions,” said Jim Mulhern, president and CEO of NMPF. “Just because the free trade agreement with Europe is off the table for now doesn’t mean Europe’s dairy sector will sit by.  They are aggressively pursuing other trade deals that could limit our export opportunities, and we will continue to be vigilant about challenging those practices”