Joint ABI/ADPI Annual Meeting Set for Chicago April 26 – 28

The joint annual conference of the American Butter Institute and the American Dairy Products Institute will be held Sunday through Tuesday, April 26 – 28, at the Hyatt Regency in Chicago.

One of the premier events of the year for butter and dairy ingredient marketers, the conference will cover topics including the challenge of nourishing a growing world population and the 2015 Dietary Guidelines for Americans, the government’s primary nutrition advice for consumers. Panelists will include Janet Raddataz of Sargento Foods, Greg Miller from the National Dairy Council, and Tim Hunt from Rabobank. Also on the agenda are board meetings for both ABI and ADPI and a recognition lunch that will honor the 2015 ADPI Award of Merit winner and the Jim Page Memorial Scholarship recipient.

The meeting offers networking opportunities with more than 1,000 senior executives from manufacturers, marketers, suppliers, distributors and brokers of manufactured dairy products, as well as industry analysts, journalists, and key government officials. Registration is through the ADPI website.

Animal Agriculture Alliance Stakeholders Summit Set for Early May in Kansas City

The Animal Agriculture Alliance will hold its 2015 Stakeholders Summit in Kansas City on Wednesday and Thursday, May 6-7. Dairy producers interested in attending can register through the organization’s website.

Speakers will include Brad Scott, a partner in Scott Brothers Dairy Farms in Chino, California, who was featured in the television show Undercover Boss, and Dennis Dimick, executive editor of National Geographic, who oversaw the magazine’s 2014 Future of Food series. Returning from last year are Jeff Fromm, author of Marketing to Millennials, and Feedstuffs’ Andy Vance as moderator.

The Animal Agriculture Alliance helps consumers understand modern animal agriculture and seeks to expose those who spread misinformation about the industry. Jamie Jonker, NMPF Vice President of Sustainability & Scientific Affairs, serves on its board.

Congress Seeks a Positive Market-Access Outcome for U.S. Dairy in Pacific Trade Pact

The dairy industry today praised the more than 75 House members who have urged the Obama Administration to negotiate a strong market-access outcome for the U.S. dairy industry in the Pacific Rim trade agreement.

Led by the co-chairs of the Congressional Dairy Farmer Caucus, the House members sent a bipartisan letter to U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack, saying Canadian and Japanese dairy market barriers must be addressed in any final Trans-Pacific Partnership (TPP) agreement to allow more U.S. dairy exports. The TPP involves trade negotiations between the United States and 11 other nations.

“We recognize that you must juggle a wide range of priorities,” the congressmen said in the letter. “However . . . we believe that winning an overall positive market access result for the U.S. dairy industry is critical to the success of the TPP negotiations.”

The National Milk Producers Federation, the U.S. Dairy Export Council and the International Dairy Foods Association commended the House members’ action, noting that dairy producers and processors agree on the importance of a balanced, positive TPP market-access outcome for their industry.

“The U.S. dairy industry has a $4 billion trade surplus worldwide and supports tens of thousands of jobs here at home, yet we still face substantial hurdles in major markets,” said Tom Suber, USDEC president. “TPP should expand our ability to compete through new access and more fair rules of trade.”

“The U.S. cannot give a pass to major countries like Canada and Japan while at the same time increasing access for major competitors into our own market. That is completely unacceptable,” said Jim Mulhern, NMPF president and CEO. “Given that TPP is likely to introduce more competition in a number of key markets, the bottom line is that this agreement must result in a net boost in export opportunities for U.S. dairy producers.”

Connie Tipton, IDFA president and CEO, added, “Significant market access for all dairy products must be on the table in negotiations with Japan and Canada. If this is to be a true 21st century trade agreement, U.S. dairy exporters should not be limited on what they sell into these markets.”

A majority of the House members signing the letter have voted in support of at least one of the U.S. free trade agreements approved in 2011, which are the most recent to date. Spearheading the letter were the Congressional Dairy Farmer Caucus co-Chairs: Reid Ribble (R-WI), Peter Welch (D-VT), Joe Courtney (D-CT), Suzan Delbene (D-WA), Tom Reed (R-NY), Michael Simpson (R-ID), David Valadao (R-CA) and Timothy Walz (D-MN). Read the letter here.

 

The National Milk Producers Federation, 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 nearly 32,000 dairy producers on Capitol Hill and with government agencies.

The U.S. Dairy Export Council 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. The U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.org

The International Dairy Foods Association, Washington, D.C, represents the nation’s dairy manufacturing and marketing industries and their suppliers, with a membership of 550 companies within a $125-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation, the National Cheese Institute and the International Ice Cream Association. IDFA’s nearly 200 dairy processing members run nearly 600 plant operations, 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. IDFA can be found online at www.idfa.org.

NMPF Thanks West Virginia Governor for Vetoing Bill Permitting Raw Milk Sales

The National Milk Producers Federation today thanked West Virginia Governor Earl Ray Tomblin for vetoing legislation allowing consumers to obtain unpasteurized milk through herd-shares, or arrangements under which they become part owners of a dairy cow. Tomblin said the bill posed “a serious risk to public health.”

“The link between consuming raw milk and foodborne illness has been well-documented, with evidence spanning nearly 100 years,” said NMPF President and CEO Jim Mulhern. “At the same time, no claims of additional health benefits from drinking raw milk over pasteurized milk have been substantiated. NMPF and the nation’s dairy farmers appreciate that Governor Tomblin sided with public health experts over raw milk advocates in rejecting SB 30.

“Endangering public health is no way for any state to operate and we appreciate Governor Tomblin heeding that message,” Mulhern added. “At least six other state legislatures have bills pending that would ease raw milk sales to consumers. We urge them to follow West Virginia’s lead and reject these measures.”

The state legislature sent Tomblin SB 30 late last month. NMPF, the voice of 32,000 dairy farmers nationwide, urged a veto in a joint letter with the International Dairy Foods Association, which represents dairy processors.

Tomblin announced his veto today, saying that consuming raw milk “has inherent dangers and  . . . is particularly dangerous to children, pregnant women, and persons with compromised immunity.” Currently, no form of raw milk sales are permitted in West Virginia.

NMPF has led the dairy industry in opposing efforts to make raw milk more accessible to consumers. Unpasteurized milk is a key vehicle in the transmission of pathogenic bacteria including E. coli 0157:H7, Campylobacter, Listeria monocytogenes, and Salmonella.

 

The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

Fixing the Right Problem the Right Way

You don’t have to be a craftsman to understand the adage that when the only tool you have is a hammer, every problem looks like a nail. This type of reductionist thinking can affect many businesses, not just carpentry, but whenever such a thought process is applied, it distracts people from actually solving issues because their attention is focused on the wrong problem – and hence, the wrong solution.

A recent case in point is critical comments from some quarters regarding the venerable Federal Milk Marketing Order system. Clearly, the system isn’t perfect, and in fact, is in need of some change. However, we have to be very careful when evaluating any fixes that we don’t take a hammer to FMMOs when they are not the real source of the problem some want to repair.

One of the periodic concerns we’ve heard from dairy processors, particularly in the past year, is that the industry has experienced more price volatility in recent years. Markets at home and abroad have been seemingly moving more quickly, and less predictably, than ever before. In the case of 2014, farm-level milk prices reached levels never before seen. For dairy buyers, a $25 per hundredweight all-milk price last year was a tough pill to swallow. Of course, when prices are much lower, as they were in 2012 and are again in 2015, it’s the farmers who have reason to complain.

The truth is that last year’s high prices were not unique to the U.S., and certainly were not due to the federal milk order system. With over 15 percent of U.S. milk production now moving into world markets, we all recognize that our industry is more fully integrated with the world dairy trading system. The weather in New Zealand affects milk production there, and their problems can push up milk prices elsewhere around the world. Chinese demand has the same effect. Meanwhile, terrific weather last year in our Corn Belt affected global grain prices by pushing them down.

Any potential changes to Federal Orders are not going to magically wipe away the prospect of global and unpredictable price movements. Since dairy is by its nature a relatively price inelastic product, minor swings in production and consumption can create big swings in price. It is important to recognize that reality, because as we sell more into the world market, this will be the norm in the future.

The fact is that monthly-announced classified pricing actually sands off some of the rough edges of price volatility. While cash commodity markets, and the futures markets for Class III and IV prices, trade daily, the Federal Order price minimums change only monthly. That actually acts as a modifier of erratic, shorter-term price changes. While the monthly NASS-based price formulas woven into FMMOs have their own set of issues that need addressing, price volatility could actually accelerate in the absence of a monthly price formula calculation.

One of the ironies of all this discussion right now is that California’s dairy farmers are seeking to replace their state marketing system with the federal one. Dissatisfied with what many see as the state’s failure to update its program to address pricing imbalances, several farmer-owned cooperatives in California are now petitioning to create a Federal Order for their members. That’s a strong signal to me that Federal Orders are a relevant, and necessary, dairy policy mechanism in the 21st century.

The key issue with any policy is to continue monitoring and evolving it to keep up with changing conditions. We certainly see a need to reassess the issue of make allowances and end product price formulas, for example. They were included in the FMMO reform package in the late 1990s as a replacement for the old Minnesota-Wisconsin milk price, and haven’t been updated. And there are other changes also worth considering.

But let’s be clear: at its core, the Federal Order system is designed to ensure orderly marketing and protect dairy farmers from predatory pricing practices. Some dairy companies believe that reform is about ending the system, not mending it, and in the process providing farmers a smaller share of the consumer’s dairy dollar – a share that has been shrinking over time. That’s a non-starter for us. Our focus will be on reforms needed to strengthen – not weaken – Federal Orders so they continue to achieve their objective of benefiting producers and consumers by establishing and maintaining orderly marketing conditions.

Price volatility is a challenge for dairy farmers and processors alike. However, Federal Orders don’t create that volatility – market forces of supply and demand do. Thus, going after FMMOs with a hammer is not going to improve, or change in any meaningful way, the pricing pendulum. There are risk management tools available to help manage volatility. Let’s not use a hammer when the job at hand calls for a wrench.

NMPF Applauds Introduction of Safe and Accurate Food Labeling Act

Legislation Will Establish Labeling Guidelines to Help Farmers and Consumers

ARLINGTON, VA – The National Milk Producers Federation today praised the introduction of legislation in the House of Representatives that would establish federal standards for the safety and labeling of foods containing genetically modified organisms.

Under the bill, the Safe and Accurate Food Labeling Act, the Food and Drug Administration will set standards for companies that wish to label their products as containing or not containing GMOs. The legislation was introduced by a bipartisan group of lawmakers led by Reps. Mike Pompeo (R-KS) and G.K. Butterfield (D-NC). Rep. Pompeo introduced similar legislation in the House last year.

“Rather than create a confusing patchwork of state policies, the legislation would deal with this issue at the national level,” said Jim Mulhern, President and CEO of NMPF. “It would improve clarity in foods carrying a GMO-free label by establishing uniform rules and a national certification program for foods that have been produced without bioengineering.”

GMOs have been proven safe by nearly 2,000 studies from the leading scientific bodies in the world, including the World Health Organization and the American Medical Association. Agencies including the FDA, the U.S. Agriculture Department, the National Academy of Sciences, and the World Health Organization have found no negative health effects from consuming GMOs.

“Due to the complexity of the American food chain, state-by-state labeling is not an option,” Mulhern said. “The additional costs would be passed on to consumers, and many family-run businesses, including dairy farms, would be unable to navigate these new hurdles.”

There is no need for mandatory labeling of foods made with GMO process or ingredients, “but if food marketing companies wish to voluntarily label their products as being free of GMOs, this legislation establishes a national protocol for doing so,” Mulhern said.

Currently, up to 80 percent of the food available in the United States contains genetically modified ingredients.

 

The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

NMPF Statement on U.S. Dietary Guidelines Advisory Committee Report

Delivered by Beth Briczinski, NMPF Vice President of Dairy Foods & Nutrition:

The Departments of Health and Human Services, and Agriculture, are holding a public meeting today in Bethesda, Maryland, to receive public oral comments on the Scientific Report of the 2015 Dietary Guidelines Advisory Committee. The National Milk Producers Federation is one of 70 organizations offering input on the draft report.

“I am a dairy foods scientist at the National Milk Producers Federation, which represents the nation’s dairy farmers. As you review the DGAC report and prepare messaging for Americans, we want to remind the Agencies why we believe it is imperative that the 2015 Dietary Guidelines continue to recommend three servings of milk or other dairy foods each day.

“First, dairy has nine essential nutrients, is a source for three of the four nutrients of concern identified in the DGAC report, and is extremely difficult to replace in the diet. For example, the DGAC reported that when they modeled a “no-dairy” diet, intake of several key nutrients fell below adequate levels, specifically with calcium dropping by up to 88%1.

Even foods that are sometimes seen as “substitutes” for dairy can’t compare to real dairy products. The DGAC wrote that although soy, rice or almond beverages can be fortified with calcium, its absorption is less efficient from plant-based beverages. The report also noted that to actually absorb the same amount of calcium, you have to consume more calories, even though what most Americans need is to consume fewer calories2.

“The number of servings of other foods that would be required to replace dairy’s unique total nutrient package, as well as the cost of those foods, make it unlikely that people who forgo dairy will actually obtain an equivalent nutrient intake.

Simply put, there is no substitute — three servings of nutrient-dense dairy products should be an essential part of every healthful diet.

“Second, most Americans age nine and older are not consuming recommended amounts of dairy – barely two servings a day – and the DGAC report showed that average overall consumption hasn’t increased during the past 15 years3.  In fact, the only population groups meeting recommended amounts were very young children. By the age of four, Americans have major shortfalls in meeting recommendations for milk consumption4.

“So I’d like to conclude with a suggestion for the simple, understandable, actionable messages that are needed in order for the Dietary Guidelines to motivate real dietary improvements for consumers when they plan meals or make food choices.

“Knowing that the nutrient package of dairy foods is virtually irreplaceable in the diet… and that dairy consumption averages less than two servings a day… I would suggest that the Dietary Guidelines first continue to recommend three servings of dairy, and second to recommend Americans increase their current consumption of dairy foods. Most Americans would certainly benefit by adding one more serving of nutrient-dense dairy foods each day. This would go a long way toward improving essential nutrient intakes and toward educating consumers about the simple steps they can take to achieve better diets and better health.

“Thank you for the opportunity to be here today. NMPF will also be filing written comments.”

1 [Ch. 1, p. 32]

2 [Ch. 1, p. 32]

3 [Figure D1.29, p. 143]

4 [Figure D1.29, p. 145]

 

The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

Vermont Dairy Farmer Tells House Agriculture Committee about Biotechnology’s Benefits to Consumers

Joanna LidbackWashington, D.C. – The added costs imposed by mandatory labeling for genetically-modified organisms could increase the price of food to consumers while driving smaller farms out of business, according to Vermont dairy farmer Joanna Lidback (pictured speaking at a congressional hearing in Washington, D.C., in July 2014), who said that the use of GMO crops is important to her farm’s economic sustainability.

In testimony presented Tuesday before the House Agriculture Committee, Lidback, who farms in Westmore, Vermont, with her husband and two young sons, said that building an economically viable small family business has led them to “fully embrace using technology to farm better and with less impact on our surroundings” – and part of that entails using GMO seed varieties that grow best in New England.

“We would want the choice of the best seed regardless of breeding technology; genetic engineering offers the best options,” she said, explaining that their 200 acre farm in Vermont’s Northeast Kingdom has a shorter growing season that limits the variety of crops they can grow. If marketplace demands were to force them to use non-GMO feed grains – most of which would be certified organic – the farm’s feed bill would more than double each month, from $5,328 to $12,000.

“I do not see how we could profitably farm in the long term with those increased feed costs,” Lidback said. “I also believe that biotechnology enables us to lessen the environmental impact that growing can have because less fertilizer and pesticides are used to grow an abundant crop.”

Lidback testified on behalf of Agri-Mark Dairy Cooperative, which is a member of both the National Council of Farmer Cooperatives and the National Milk Producers Federation. Lidback keeps a blog documenting her family’s life on the farm (farmlifelove.com).

She told the committee’s members that attempts at mandatory labeling of foods derived from GMO processes are aimed at arbitrarily limiting choices, for farmers and consumers alike. She said that consumers have a right to know “that the meals they serve at the family dining table every night are safe and nutritious. But a very small percentage of the population should not be able to impose their personal, non-science based food preferences on the rest of us – prompting food prices to increase and driving farms like mine out of business.”

Lidback said that mandatory labels on foods with biotech ingredients are not necessary, but that “if consumers are to drive some sort of label requirement, I believe it should be done in a cohesive way at the federal level.” Lidback said that consumers who want information about how their food is sourced can get information from companies using voluntary labeling systems, including the USDA’s Certified Organic program and the use of third-party verification of a “Non-GMO” label.

She said a patchwork quilt of state laws, whereby some states such as Vermont impose labeling requirements that neighboring states do not, would raise questions “about whether or not the product is the same. This serves no one’s interest – not consumers, not farmers, not food producers.”

 

The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.

Agri-Mark, with more than a billion dollars in 2014 sales, markets more than 300 million gallons of farm fresh milk each year for about 1,200 dairy farm families in New England and New York. The cooperative is headquartered in Methuen, Mass., has been marketing milk for dairy farmers since 1913, and actively represents their legislative interests in the Northeast and in Washington, D.C.

The National Council of Farmer Cooperatives is a national association representing America’s farmer cooperatives. There are nearly 3,000 farmer cooperatives across the U.S. whose members include a majority of our nation’s more than 2 million farmers, ranchers and growers. These farmer cooperative businesses handle, process, and market agricultural commodities and related products; furnish farm supplies; and provide credit and associated financial services. Earnings from these activities are returned to their members on a patronage basis. Farmer cooperatives also provide jobs for nearly 250,000 Americans, many in rural areas, with a combined payroll of over $8 billion. Additional information about NCFC can be found at www.ncfc.org.

U.S. Dairy Groups Join Australia & New Zealand in Call for Ambitious Outcome in Trans-Pacific Partnership

The national dairy organizations of the United States, Australia and New Zealand today issued a joint letter to their respective trade and agriculture officials, pressing for an ambitious, comprehensive and commercially meaningful outcome in the Trans-Pacific Partnership (TPP) negotiations. Representing three of the leading dairy exporting nations in the world, the groups believe TPP provides a historic opportunity to eliminate trade distortions and ensure an abundance of safe and affordable products for consumers, while providing increased opportunities for dairy farmers and processors.

The dairy organizations specifically called for “significantly increased dairy market access” with Japan and Canada, two of the 12 partners in the treaty. Noting that negotiations with Japan have made progress, the organizations said vital work remains and the ambitious goals of the partnership should not be sacrificed for the sake of expediency. They also urged negotiators to turn a greater spotlight on Canada, saying the country needs to provide more meaningful market access for all dairy products if it is to remain a participant in the treaty.

“Our neighbor to the north needs to come to the table now with a substantial offer on dairy,” said Connie Tipton, president and CEO of the International Dairy Foods Association. “The U.S. dairy industry will not accept another deal like the North American Free Trade Agreement that allows Canada to exclude dairy. TPP was launched to open markets, not create more barriers.”

Jim Mulhern, president and CEO of the National Milk Producers Federation, echoed that sentiment. “The U.S. dairy industry is tired of having the door slammed in its face,” he said. “While progress has been made with Japan, the job there is not yet finished. Meanwhile Canada is dragging its feet. We simply will not tolerate an agreement that doesn’t provide the opportunity for us to sell significantly more U.S. dairy products to both countries.”

Tom Suber, president of the U.S. Dairy Export Council, noted the increased demand for everything from milk to ice cream in the Asia-Pacific markets. “The United States is ideally suited to help meet increased demand for a wide range of dairy products throughout the TPP region. The full range of U.S. exporters deserves to see expanded access for their products that allows them to keep growing their sales over time.”

While traditional tariff barriers remain widespread for dairy products, trade is also restricted by more subtle, non-tariff measures, such as the European Union’s aggressive stance on geographical indications, as was demonstrated in its trade agreement with Canada. The organizations said they expect TPP to ensure that new market access will not be hindered by these types of non-tariff barriers, which are aimed at thwarting imports.

The letter provided a forum for the three countries to deliver a united message to negotiators on these key priorities, but also noted that the organizations each have additional criteria by which they will judge the final TPP outcome.

 

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 nearly 32,000 dairy producers on Capitol Hill and with government agencies.

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. The U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.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 550 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 run nearly 600 plant operations, 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. IDFA can be found at www.idfa.org.

NMPF to Congress: Favorable Trade Deals Needed to Sustain Recent Dairy Export Growth

ARLINGTON, VA – The National Milk Producers Federation said today that exports have given the dairy industry a tremendous boost in recent years and that balanced free trade agreements, implemented with congressional trade negotiating authority, are crucial to the future economic health of U.S. dairy farmers.
Testifying before the House Agriculture committee, NMPF board member and Wisconsin dairy farmer Pete Kappelman, shown in the photo, said U.S. dairy exports have increased 625 percent – to a record $7.1 billion since 2000  and that today, the equivalent of one day’s milk production each week is sold in foreign markets.

“That makes exports critical to the health of my farm and our dairy industry at large,” Kappelman said, adding that, because overseas population growth outpaces domestic growth, exports are the key to continued expansion for dairy farmers.

Kappelman, who farms in Two Rivers, Wisconsin, said it is not coincidence that enormous growth in dairy exports occurred while the United States was implementing several free trade agreements, and that each of those agreements was approved by using Trade Promotion Authority. “In every case, our dairy exports to countries with which we implemented free trade agreements have shown substantial, sometimes dramatic, increases,” he said.

Right now, Kappelman said, Congress should approve new TPA legislation to complete a favorable Trans-Pacific Partnership agreement between 12 Pacific Rim countries. “Significant access to TPP’s most protected dairy markets – Japan and Canada – is absolutely essential to us, and both of those countries have pointed to the importance of having TPA in place as TPP talks enter their final stage,” he said.

“The TPA legislation introduced last year put a strong new priority on tackling nontariff barriers, which have been cropping up much more frequently,” Kappelman added. He said these range from unjustifiable health and safety measures to efforts to give European Union producers an advantage in international markets by misusing Geographical Indications.

“Our negotiators have moved the ball forward on many key issues but more work still needs to be done,” Kappelman said. “To ensure that we conclude a high-standard, balanced agreement that delivers net trade benefits for the U.S. dairy industry, we need to have TPA in place.”

Kappelman testified at a hearing on the importance of trade to agriculture. He heads NMPF’s International Trade Committee and is chairman of Minnesota-based cooperative Land O’Lakes, Inc. He is also a board member of the U.S. Dairy Export Council.

 

The National Milk Producers Federation, 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 more than 32,000 dairy producers on Capitol Hill and with government agencies.