Last month, NMPF and the U.S. Dairy Export Council (USDEC) praised the House of Representatives’ approval of H.R. 6156, which would establish permanent normal trade relations (PNTR) with Russia. NMPF and USDEC have actively supported approval of PNTR with Russia as part of work necessary to reopen that market to U.S. exporters.

The Russia dairy market has been closed to U.S. dairy products for more than two years due to Russian insistence on certain dairy certificate statements and accompanying facility inspection requirements that were not acceptable to the U.S.

“This is a significant step forward on the path to reopening one of the world’s largest dairy importing markets,” said Tom Suber, president of USDEC. “USDEC has been working extensively to help provide a firm basis for restoring access for U.S. dairy exporters to Russia. More is needed beyond PNTR to achieve that goal but approval of PNTR is a vital piece of puzzle.”

“NMPF hopes that the House action will help to spur swift action by the Senate to also approve PNTR with Russia so that we can move closer to re-establishing exports of U.S. cheese, butter and other products to benefit of America’s dairy producers,” said Jerry Kozak, president and CEO of NMPF. “This is a major market with solid opportunities for our industry and it is critical to ensure we have the same access to it that our competitors around the world enjoy.”

Both organizations also stressed the importance of a strong focus by the Administration on resolving the ongoing dairy certificate and related technical requirements that currently block U.S. dairy shipments. NMPF and USDEC believe that it is critical to continue to move forward with active and aggressive efforts to resolve these issues at the same time that Congress works to pass PNTR legislation.

November was another very active month for the Cooperatives Working Together (CWT) Export Assistance program. Of the 79 requests received, CWT provided members with competitive assistance on 18 cheese bids totaling 7.315 million pounds, 14 butter bids totaling 9.306 million pounds, and one whole milk powder bid for 85,980 pounds.

When combined with assisted sales from the previous ten months, this activity brings the total pounds of cheese sold with the help of CWT to 113.6 million pounds for the year. The total butter CWT has helped members to sell is 70.5 million pounds. Total anhydrous milkfat and whole milk powder sales assisted by CWT are 127,868 pounds and 171,961 pounds, respectively.

These sales are the equivalent of 2.590 billion pounds of milk on a milkfat basis. That means that CWT-assisted export sales will utilize 75% of the 3.4 billion pounds of additional milk produced so far in 2012.

NMPF announced this week that Jim Mulhern, a veteran public affairs professional with three decades of government policy and communications experience in Washington, DC, will join the NMPF staff January 1st, 2013, as Chief Operating Officer.

Mulhern’s position is a new one within NMPF. He will report directly to President & CEO Jerry Kozak, and have direct oversight of the communications, government relations, and membership functions of the organization.

“As the scope of NMPF’s activities has broadened in recent years, and as we plan for the future, we are fortunate to bring Jim on board to help the organization and its members with the significant challenges our industry is facing,” Kozak said. “Jim’s deep knowledge of both the dairy industry and Capitol Hill, coupled with his demonstrated ability to get things done, will greatly benefit National Milk. His strategic insight and extensive network of contacts both inside and outside the Beltway perfectly complement our existing capabilities.”

Mulhern has an extensive dairy industry background, including earlier work with NMPF. A Portage, Wisconsin native and a graduate of the University of Wisconsin, Mulhern began his professional career working for a dairy cooperative in Madison.

Mulhern came to Washington, DC, to work on Capitol Hill in 1983. He first joined the staff of NMPF in 1985 before returning to Capitol Hill to serve as Chief of Staff to Wisconsin Senator Herb Kohl. Mulhern has since worked in senior management positions for Fleishman-Hillard, the Fratelli Group, and Watson/Mulhern LLC. Throughout his time at each of these Washington, DC, public affairs companies, Mulhern maintained his relationship with NMPF by working as a consultant to the organization on numerous projects.

“I am very excited by the opportunity to return to NMPF in this leadership capacity,” Mulhern said. “I have been privileged to work on issues of importance to the nation’s dairy producers throughout my career, and I’m looking forward to expanding those efforts.”

Albert Einstein famously said that the same thinking that got you into a problem in the first place can’t be used to get you out of it. That’s why we at NMPF are using some new ideas about how to protect and promote U.S. dairy products in the 21st century, through the revitalization of the venerable REAL® Seal. The dairy marketing landscape has changed in recent decades, giving us both new problems – and new opportunities.

Those with a history in the dairy business will recall that the REAL® Seal was first deployed more than 30 years ago to combat the rising threat of imitation cheeses, which began to appear with alarming frequency on frozen pizzas. Dairy farmers fought this trend of faux cheese by developing a simple logo that manufacturers and marketers of real cheese could use to signify the authenticity of their products.

As the threat from fake cheeses faded, the rationale for aggressively promoting the Seal likewise receded. But in the past decade, we’ve seen the appearance of new competitive threats, from an assortment of dairy analogues that are every bit as concerning as the vegetable-oil based cheeses of the disco era. Hemp “milk,” soy “cheese,” rice “yogurt”…the list of imitators continues to expand. And as we think about how to challenge the rise of these competitors, we need new thinking, in the form of an old weapon with new capabilities: the REAL® Seal.

Back in March, NMPF assumed management of the REAL® Seal program from the United Dairy Industry Association. This agreement gives NMPF the responsibility to review how, and by whom, the Seal is used, using some the same parameters of the past – but not all. As discussed at last month’s NMPF annual meeting in Orlando, the REAL® Seal allows us to play offense, by helping consumers distinguish between products made from real milk, and those that are either imported, or not made from cow’s milk at all.

Research conducted by Dairy Management Inc. has found that the Seal has 91% consumer awareness – meaning nine out of ten people recognize it — and 78% of consumers are familiar enough with it to know what it stands for. What’s more, 360 food companies are registered to use the REAL® Seal on more than 10,000 products.

That’s a reflection of where things stand today. But by allowing the words “American made” to accompany the existing logo, we can help both private label and branded manufacturers, active in both domestic and international markets, distinguish their products from competitors from foreign nations. And by adding the words “made with real dairy ingredients” or “made with real butter” (or cheese), we can help food processors promote their use of dairy ingredients from real cows’ milk, and encourage the use of such ingredients over imitators. These additional label claims also will draw attention to the superior nutrient content of dairy foods, which in most cases offer a better nutritional profile than plant-based imitators.

Unfortunately, the apparent thinking these days at the Food and Drug Administration is that imitation dairy products using standard dairy names are not a concern worth countering. So if the FDA won’t preserve the integrity of dairy products and how they’re labeled, we need to use other tools at our disposal to help customers and consumers get the facts about real dairy products.

We’ve seen an explosion of label qualifiers in the past decade, from the rise of certified organic, to absence claims of dubious significance. There’s a desire for transparency and authenticity in food sourcing that processors and manufacturers are seeking to address. The bottom line is that we know at least some consumers today are asking where products are from, who makes them, and what’s inside them. The REAL® Seal was created more than three decades ago to answer those questions, and even though the questions (and the thinking behind them) have changed somewhat, the answers that real dairy foods offer are still the same.

Voting Ends December 15th to Select Three National Winners

ARLINGTON, VA – Two dairy farmers are among the nine finalists in a nationwide search for farmers and ranchers who will be part of a campaign in 2013 to help connect consumers with the sources of their food. The contest is being run by the U.S. Farmers and Ranchers Alliance (USFRA), a coalition of which the National Milk Producers Federation (NMPF) is a member.

Last summer, USFRA began a nationwide search for farmers and ranchers who are proud of what they do, want to share their stories of continuous improvement, and are actively involved today in telling those stories. The goal was to identify three or four producers who could act as spokespeople for modern agriculture with consumers.

Dairy farmers Will Gilmer of Sulligent, AL, and Daphne Holterman of Watertown, WI, are competing as two of the nine finalists. They were among 118 farmers who submitted a video entry application earlier this year to the USFRA contest. The winners will be tapped to share stories and experiences on a national stage to help shift conversations about food production, and set the record straight about the way we feed our nation.

Gilmer and his father own/operate a dairy farm in Alabama’s Lamar County. The dairy has been in continuous operation since Will’s grandfather established it on his parents’ farm in the early 1950s. They currently milk 200 Holstein cows and raise their own replacement heifers, while managing 600 acres of land used for pasture and forage production. Those forages include hay, summer silage crops, and small grains/ryegrass for both silage and strip grazing. Gilmer is an active contributor to social media, with a series of videos on his YouTube channel. He is a member of Dairy Farmers of America.

Holterman and her husband, Lloyd, are fourth-generation farmers in southeast Wisconsin. Along with their two daughters, they operate a dairy farm and raise corn for silage and alfalfa hay on 1,300 acres. In 1981, they started farming with Lloyd’s parents, milking 80 cows. Today, they own more than 500 acres and have a young partner who manages crops. They milk more than 800 cows, and sell milk as well as Holstein genetics around the world. The Holtermans are members of the Milwaukee Cooperative Milk Producers. Daphne was recognized as the 2009 World Dairy Expo Dairy Woman of the Year.

The other seven finalists in the Faces of Farming and Ranching contest include:

Bo Stone of Rowland, NC; Brenda Kirsch of St. Paul, OR; Eric McClam of Columbia, SC; Chris Chinn of Clarence, MO; Tim Nilsen of Wilton, CA; Katie Pratt of Dixon, IL; and Janice Wolfinger of Morristown, OH. Each of these grows and raises a variety of food products, but all share one common element: they are farmers and ranchers sharing their passion for producing food and continuously improving what they do.

Members of the public are encouraged to visit www.fooddialogues.com and vote for their favorite “faces.” Videos of each finalist and information about their operations are available on the site. Public voting is open through December 15th, and each person can vote once per day. The winners of the “Faces of Farming & Ranching” competition will be announced in January 2013.

In addition to the public vote, a panel of judges from throughout the food and agriculture community has interviewed and evaluated the finalists to help determine the Faces of Farming and Ranching winners. The judging panel included David Kurns of Successful Farming, Chef Danny Boome, Lauren Lexton of Authentic Entertainment, and Emily Paster, a food and parenting blogger at West of the Loop.

 

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 30 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.

Time Running Out for Legislators to Improve Dairy Farmer Safety Net

ARLINGTON, VA – The National Milk Producers Federation (NMPF) today joined more than 230 other farm, agriculture and food groups in urging Congress to pass a new, five-year farm bill in the upcoming lame duck congressional session expected to begin this week.

The letter, which was directed at the Republican and Democratic leaders of the House of Representatives, noted that there is still ample time for the House to complete its work on a new farm bill, and reconcile any differences with the already-adopted farm bill approved last summer by the Senate.

Failure to pass a new bill before Dec. 31st “will create significant budget uncertainty for the entire agricultural sector, including the rural businesses and lenders whose livelihoods are dependent upon farmers’ and livestock producers’ economic viability,” the letter said.

NMPF has been working for three years on a new and better safety net for dairy farmers that was incorporated by the House Agriculture Committee in the overall farm bill adopted by that panel in August. The dairy reforms featured in both the House and Senate versions of the new farm bill will reduce government expenditures compared to current policy.

“If the question in Washington is how to reform government programs and make them more effective, we have an answer: pass the 2012 Farm Bill. The dairy title, along with the rest of the bill, saves money compared to the present program,” said Jerry Kozak, President and CEO of NMPF.

While some have suggested that Congress should forego action on a new bill and simply pass an extension of current programs, “any temporary extension would be a short-sighted, inadequate solution that would leave our constituencies crippled by uncertainty. Both the Senate and the House Committee on Agriculture passed versions of a five-year farm bill with strong bipartisan support. We urge you to lead your colleagues in passing a new 2012 Farm Bill this year,” the coalition letter said.

NMPF’s Board of Directors earlier this year came out against an extension of the status quo, asserting that an extension of current policy through 2013 does dairy farmers no real good, and leaves the tough choices about budget priorities unresolved.

NMPF President Jerry Kozak said that if Congress can’t generate the necessary effort to pass a new farm bill this year, the organization would not support an extension of current dairy programs, and instead would insist on getting the Dairy Security Act – the dairy reform bill already included in the Senate version of the Farm Bill – included in any extension package of other farm programs.

“We’ve come too far to acquiesce to another serving of the status quo. Dairy farmers need more than platitudes from Congress – we need action and leadership,” he said.

 

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 30 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.

New York City serves as the host location for the third installment of the U.S. Farmers and Ranchers Alliance (USFRA) Food Dialogues. On November 15, three panel discussions will tackle some of the most discussed topics in food today: antibiotics, biotechnology (GMOs), and how mass media and advertising influence consumers’ food choices. The panels reviewing these topics bring together a diverse group of journalists, consumer influencers, leaders, farmers, and ranchers for an in-depth conversation about food. All panel discussions will be streamed live on the fooddialogues.com website. In addition, a special Twitter handle (#FoodD) will encourage social media discussion on Thursday.

Also next week, consumers and others can vote to winnow the nine finalists for the Faces of Farming and Ranching contest held by USFRA. More than 100 people entered the contest for their opportunity to become one of the faces of agriculture – those who will be sharing stories and experiences on a national stage to help shift conversations about food production and set the record straight about the way we feed our nation.

Starting on November 15, and running until December 15, people can visit www.fooddialogues.com to learn more about each of the nine finalists and the work they do. Two of the nine are dairy farmers.

Consumers are asked to vote for who they believe best represents farmers and ranchers who work to bring food to the table. These votes, along with the recommendation of a panel of judges, will be factored into the decision to determine the Faces of Farming and Ranching.

Just as in baseball, the best teams in dairy production track and use statistics to ensure their success. The best compilation of dairy statistics is now available in the latest edition of NMPF’s Dairy Data Highlights.

Dairy Data Highlights is a collection of 53 tables and 19 graphs that provides state-by-state and national metrics on all aspects of milk production from the recent past through 2011. This includes cow numbers, feed costs, relative prices, the sales of milk and dairy products, the difference between farm and retail prices, and trends in dairy products production. The booklet also tracks export and import information. Dairy Data Highlights has been published annually by NMPF for more than 60 years.

Dairy Data Highlights is available to NMPF member cooperatives and associate members for a per-copy price of $7.50 for orders up to 10 copies, and $5 per copy for orders larger than 10. For non-members, the per-copy price is $10.00 up to 10 copies, and $7.50 each for more than 10.

Visit the NMPF website to learn how you can order copies.

NMPF has released a revised version of its Milk and Dairy Beef Drug Residue Prevention Manual for 2013. As an area of focus for the National Dairy FARM Program^TM, the manual can be found online.

The Milk and Dairy Beef Drug Residue Prevention Manual is a concise review of appropriate antibiotic use in dairy animals. The manual is a quick resource to review those antibiotics approved for dairy animals and can also be used as an educational tool for farm managers as they develop their on-farm best management practices necessary to avoid milk and meat residues.

Additions to the 2013 version include a section on avoiding potential residue violations from extra-label drug use in an unapproved class of cattle, cephalosporin extra-label use prohibitions, as well as an updated drug and test kit list. The 2013 manual includes a certificate of participation that can be signed by a producer and his/her veterinarian to demonstrate their commitment to the proper use of antibiotics.

The Residue Avoidance manual was sponsored by Charm Sciences, IDEXX, and Pfizer Animal Health. No check-off funds were used in the development and distribution of this manual.

A report issued last month about the National Dairy FARM Animal Care Program found that overall, its subscribers are doing a thorough job of adhering to its multi-faceted approach to comprehensive dairy animal well-being.

Voluntary, and open to all producers in the United States, Farmers Assuring Responsible Management (FARM) is a national set of guidelines designed to demonstrate dairy farmers’ commitment to outstanding animal care and a quality milk supply. Cooperatives, proprietary milk processors, and individual dairy producers are using the program to assure consumers that the food they purchase is produced with integrity.

Since enrollment began in September 2010, the FARM Animal Care Program has been implemented on dairy farms accounting for 41 percent of the nation’s milk supply. With continued expansion of enrollment, participation in the FARM program is anticipated to exceed 70 percent of the nation’s milk supply in 2013.

Participating producers are provided comprehensive training materials and undergo an on-farm evaluation conducted by a trained veterinarian, extension educator, co-op field staff member, or other FARM-trained professional. Evaluators then provide a status report and, if necessary, recommendations for on-farm improvement.

In June 2012, data collected from the more than 5,000 second-party evaluations made of the dairy operations enrolled in FARM program was reviewed and analyzed to determine the effectiveness of on-farm implementation. A summary of those results is available online.

“While we’re seeing near nearly universal adoption of the best practices from the FARM animal care manual,” said Jamie Jonker, Vice President of Scientific and Regulatory Affairs at NMPF, “some specific practices have not achieved the same level of adoption as others. This demonstrates the importance of continuous improvement and on-going education as advocated by the program.”

Jonker cited several examples of where adherence is greatest, as well as where improvements are needed:

• 99.2% of farm operators engage in dairy animal observations to identify any potential health issues;
• 99% of farm operators train personnel to handle and restrain calves with a minimum of stress to the animal;
• 95.5% of farm operators train personnel in proper methods to move non-ambulatory animals;

Meanwhile:

• 72.7% of farm operators have emergency plans to address animal care needs stemming from unique circumstances such as a natural disaster;
• 68% of farm operators apply antiseptic to the navels of calves after birth as a preventative health measure.

To protect the integrity and credibility of the program, the FARM program utilizes an independent third-party process to ensure that its practices are being appropriately adopted and the educational materials and methodologies used in training both farm operators and evaluators is sound and effective. Each year, a nationwide sample of dairy farms in the program is randomly selected for visits from third-party “verifiers” to assure (to a 95% confidence interval) that the observations recorded during the second-party evaluations are valid. Validus, an Iowa-based certified auditing company with more than 10 years of experience with farm animal care programs, is used to conduct the third-party verification process.

The initial third-party verification of the FARM program was conducted in 2011, with analysis of that process completed earlier this year. This analysis confirmed that effective implementation of the FARM program is occurring through producer education and on-farm evaluation. The objective third-party verification for 2012 is currently underway.

As part of its efforts to revitalize one of the most recognized product symbols in the food industry, NMPF announced last month that the REAL® Seal is undergoing a makeover. The first step in that process involved the launch of a revamped website: www.realseal.com.

The previous website existed primarily as a resource for dairy product manufacturers and marketers interested in putting the REAL® Seal on their packaging. The new website will contain more content to educate consumers about why they should look for the REAL® Seal on the foods they buy, while also continuing to provide information for those companies using the REAL® Seal to enhance their product marketing.

“Research has found that 93 percent of consumers know of the REAL® Seal, and that many people find it useful in making buying decisions,” said Jerry Kozak, President and CEO of NMPF.

Effective March 15, 2012, the management of the REAL® Seal program was transferred from the United Dairy Industry Association to NMPF. This change was the result of an agreement between the two organizations that the transfer was the best opportunity to place a renewed emphasis on highlighting the importance and value of American-made dairy foods.

“Imitation products made from vegetables and nuts, but packaged like real dairy products and often using dairy names, have proliferated in the last few years,” said Kozak. “For example, frozen desserts made out of soybeans are packaged the same as real ice cream made from cows’ milk, with pictures that make it look like real ice cream. The only way a consumer would know the product isn’t ice cream is by reading the ingredients label.”

The same is true for other processed foods made with imitation dairy products, noted Kozak.

“Currently, frozen pizza is essentially the only processed food that uses the REAL® Seal. We intend to expand the products eligible to use the REAL® Seal beyond that that category.”

To address expanded use of the REAL® Seal, the seal itself is in the process of being tailored to other applications. Terms like “Made With” real dairy, and “American Made,” along with specific dairy product names, will be stacked above and below the basic REAL® Seal.

NMPF’s goal is to have a fully integrated program up and running early in 2013.