Dairy Groups Applaud U.S. Government Action to Resolve NAFTA Trucking Dispute with Mexico

 

In response to the long-standing lack of U.S. compliance with its trucking obligations to Mexico under the North American Free Trade Agreement (NAFTA), Mexico has been legally levying tariffs on a variety of U.S. exports since March 2009. In August 2010, Mexico added a new retaliation list that included many U.S. cheeses.

At a meeting Thursday in Washington between the heads of states of both nations, an agreement was announced to put the U.S. on the path to resolving the cross-border trucking dispute.

NMPF and the U.S. Dairy Export Council said they are looking forward to a swift process by the Department of Transportation (DOT) to complete a final agreement. It is expected that DOT will issue a Federal Register with the proposed rules for a 30 day comments. Once the Department of Transportation reviews all of the comments, it must issue a final rule. This rule will be deemed the final agreement.

The Government of Mexico has announced that once a final agreement has been reached, Mexico will suspend its retaliatory tariffs on dairy products by 50 percent (if the retaliatory tariffs are 20%). After the final agreement, the tariff will be reduced by half to 10 percent and will suspend the remaining half when the first Mexican carrier is approved to cross the border.

Congress Funds Government…For Two More Weeks

 

To avoid a shutdown of the federal government, Congress passed a short-term Continuing Resolution (CR) this week that will allow the government to continue operating through March 18. Altogether, the short-term fix will reduce current spending levels by $4 billion by rolling back certain earmarks and eliminating a handful of programs, many of which were already targeted by President Obama in his fiscal year 2012 budget proposal. President Obama signed the temporary funding bill just prior to the current CR expiration on March 4. By passing the short extension only, the rhetoric and debate on Capitol Hill is expected to escalate in the coming weeks.

Prior to this week’s short-term extension debate, the House passed a measure last month to fund the government through the end of the fiscal year, which would have provided over $60 billion in savings. However, many of the provisions in the bill brought much controversy and political overtones, leaving little chance that the Democrat-controlled Senate will pass it.

Along with health care and food safety, the Environmental Protection Agency (EPA) quickly became a main target of the House GOP. Through the amendment process, EPA’s efforts on a multitude of issues concerning agriculture would be effectively stopped, including the agency’s actions in the Chesapeake Bay, their efforts in the State of Florida with numeric nutrient criteria, as well as the ongoing work to further regulate dust particles. Meanwhile, the House also voted on multiple amendments regarding biofuels. Amendments that would stop EPA from implementing E15 and halt federal funding from going to the development of certain ethanol infrastructure, successfully passed in the House.

NMPF Conducts National Grassroots Tour as Congress Prepares FFTF Legislation

NMPF Conducts National Grassroots Tour as Congress Prepares FFTF Legislation

More than 700 dairy farmers have attended the meetings NMPF arranged in July at eight locations across the West and Midwest as part of the organization’s effort to educate the industry about the benefits of the Foundation for the Future program. In addition to that national grassroots education effort, NMPF is also leading a lobbying effort to build support for new legislation encapsulating the key elements of FFTF.

A week after the grassroots meetings began, Congressman Collin Peterson (D-MN) introduced a legislative discussion draft containing the elements of FFTF, an effort which drew the support of NMPF and other dairy organizations interested in making positive improvements in dairy policy.

NMPF is urging dairy producers to contact their members of Congress, using NMPF’s Dairy GREAT email system, asking them to co-sponsor Peterson’s bill. Peterson has indicated he would like to formally introduce the bill as soon as possible, once additional co-sponsors are obtained.

“This is a long-anticipated and very welcome next step in the process of upgrading dairy policy to better provide farmers with protection, stability, and the opportunity for growth,” said Jerry Kozak, President and CEO of NMPF. “We appreciate the attention that Congressman Peterson has brought to this issue, and we will be working with him and his colleagues on Capitol Hill to help advance and implement the concepts of Foundation for the Future.”

The discussion draft text is available online.

Meanwhile, four more regional FFTF meetings will be held in August, starting next Monday in Harrisburg, PA. The schedule can be found online.

 

New Consortium Seeks to Protect the International Right to Use Common Food Names

New Consortium Seeks to Protect the International Right to Use Common Food Names

A number of food producers and dairy organizations have launched the Consortium for Common Food Names, an international initiative that seeks to stop efforts to restrict the use of generic food names, including such efforts by the European Commission.

The new consortium opposes any attempt to monopolize generic names that have become part of the public domain, such as parmesan, feta, provolone, bologna, salami and many others, as well as terms used by winemakers such as “classic”, “vintage”, “fine” and “superior”. The consortium will seek to foster the adoption of an appropriate model that protects legitimate GIs like “Parmigiano Reggiano” while preserving the right of all producers to use common names like “parmesan”.

The consortium is not opposed to proper geographical indications (GIs), like “Camembert de Normandie” and “Brie de Meaux” cheeses from France, and “Clare Island Salmon” from Ireland. For some specialized products such as these, made in a specific region, it has made sense for the European Commission (EC) to protect the regional name to help preserve the unique nature of that product. In fact, products from other parts of the world – such as Washington State Apples, Idaho Potatoes, Valle de Colchagua wine from Chile, or Thai Jasmine Rice – may also benefit from similar protection. The consortium supports these types of terms as a tool to promote distinctive products.

“No one country or entity should own common food names,” said Jaime Castaneda, executive director of the new initiative, and senior vice president of trade policy at the U.S. Dairy Export Council. “If such efforts are successful, consumers will no longer recognize many of their favorite foods. Producers around the world will be forced to consider relabeling potentially billions of dollars’ worth of food products.

Many well-known foods trace their origins to Europe, but thanks to decades of trade and the emigration of individual food artisans, these products are now made and enjoyed throughout the world. Over time, this has greatly increased the popularity of European varietals like parmesan and salami, to the commercial benefit of European and non-European producers and consumers alike.

The consortium will work to inform consumer groups, farmer associations, manufacturers, and agricultural, trade and intellectual property officials of the damage that will be caused in their own countries if efforts to restrict the use of common food names go unchecked. It will also work with these groups to protect common food names in domestic regulations and international agreements. Importantly, it will work to develop a clear and reasonable scope of protection for GIs by working with leaders in agriculture, trade and intellectual property rights; and foster adoption of high-standard and model GI guidelines throughout the world.

The Consortium will be holding a reception on April 12th in Milwaukee, WI after the International Cheese Technology Exposition in order to provide the opportunity for anyone interested to learn more about this initiative. The reception will be held at 4:00 – 5:00 pm in the Oak Room of the Hilton Milwaukee City Center Hotel. NMPF members, press and others interested in the consortium are welcome to attend.

 

USDA Confirms Fourth Case of BSE

USDA Confirms Fourth Case of BSE

The USDA’s Animal and Plant Health Inspection Service (APHIS) confirmed the detection of Bovine Spongiform Encephalopathy (BSE) in a dairy cow from Tulare, California, last week, the nation's fourth case of BSE. The cow was never presented for slaughter for human consumption; it was targeted for postmortem screening at a rendering facility near its home farm in California, according to the USDA.

After the announcement on April 24th, NMPF issued a statement saying that “America’s dairy farmers are encouraged that the on-going surveillance and inspections performed by federal authorities continue to ensure that BSE does not enter the U.S. food supply.”

This is the fourth mad cow case in the U.S. since December 2003, when a cow imported from Canada was diagnosed at slaughter. The two cases since then, along with this recent case in California, were infected with an atypical strain of BSE that does not appear to be related to the consumption of feed infected with the prions that cause BSE. It was infected feed which spread the disease to nearly 200,000 cattle in Europe in the 1980s and 1990s, where approximately 176 people later contracted a fatal encephalopathy from eating tainted beef products.

Scientific research indicates that BSE cannot be transmitted in cow's milk, even if the milk comes from a cow with BSE. In fact, the World Health Organization (WHO) has stated that tests on milk from BSE- infected cows have not shown any BSE infectivity. Milk and milk products are considered safe.

 

NMPF Responds to Allegations by the Cheese Importers Association of America

NMPF Responds to Allegations by the Cheese Importers Association of America

Following the March 29th announcement that NMPF will assume management of the REAL® Seal, the Cheese Importers Association of America (CIAA) issued a news release alleging that this change in management of the REAL® Seal program will violate a law requiring the imposition of fees on imported dairy products.

The CIAA release contained incorrect information and factual errors which necessitated a response from NMPF.

“It appears that the CIAA lacks full knowledge of the history, ownership, and use of the REAL® Seal program and the concerns voiced by that organization are clearly misplaced,” said Jerry Kozak, President and CEO of NMPF. Kozak said the following points were important to more completely understand the issue:

  1. The United Dairy Industry Association (UDIA), a federation of 18 state and regional dairy research promotion boards, owns the REAL® Seal and is free to license it as the organization deems appropriate. NMPF will now be managing the licensing and marketing of the REAL® Seal, but ownership of the trademark remains with UDIA. NMPF has long-standing relationships with many of the current users of the Seal, making it a natural fit to carry out the aims of the program.
  2. UDIA is a different organization from the National Dairy Board (NDB). When U.S. dairy farmers pay their 15 cents per hundredweight promotion assessment, 10 cents goes to state and regional promotion entities affiliated with UDIA or other qualified programs, and 5 cents goes to the NDB. While the NDB and the UDIA created Dairy Management, Inc. ("DMI") through which to share staff resources and maximize organizational efficiencies, the UDIA and the NDB remain separate and distinct entities.
  3. The 7.5 cents per hundredweight import assessment that is paid by importers for promotion purposes is directed to the national dairy promotion program operated by the NDB. The import assessment is not paid to the UDIA.
  4. Legislation that established the dairy import assessment does not impose limitations on how UDIA manages its assets, including the REAL® Seal. No funds from the NDB have been or will be used for National Milk’s operation of the REAL® Seal Program.

 

Farm Bill Process Takes Big Steps Forward in April

The process of making major, badly-needed changes in dairy policy took dramatic steps forward last month when both the House and Senate agriculture committees examined how best to improve the dairy safety yet.

Last Thursday, the Senate Agriculture Committee approved a farm bill draft that contains sweeping improvements in dairy programs, including a new Dairy Production Margin Protection Program to help farmers mitigate the risks of volatility of both milk and feed prices. The farm bill was approved by a vote of 16 to 5, and now will proceed to the full Senate for consideration. The bill was not amended in any way that alters the basic framework and usefulness of either the margin protection or market stabilization elements.

The timing of further action is still to be determined; however, farmers should use NMPF’s Dairy GREAT email system to send their senators a note, urging them to pass the farm bill this month.

Meanwhile, the House Agriculture Subcommittee on Livestock and Dairy held a hearing last week, specifically focused on dairy policy and the farm bill. NMPF President and CEO Jerry Kozak (left) explained why the Dairy Security Act will be crucial to improving the federal safety net for dairy producers. Most members of the House panel seemed sympathetic to the argument that current programs aren’t working, and that the compromise approach developed by NMPF has merits.

NMPF’s position was bolstered last week by the appearance of a new analysis of the Dairy Security Act by Dr. Scott Brown of the University of Missouri. Brown’s review found that margin volatility will be reduced through the DSA’s margin protection and market stabilization features, and that neither exports nor consumer markets will be adversely impacted.

 

NMPF Bids Farewell to Two Staff Members, Welcomes a Third

NMPF Bids Farewell to Two Staff Members, Welcomes a Third

After serving NMPF for over a decade in a number of capacities, Roger Cryan, Vice President of Milk Marketing & Economics, has left the organization to rejoin the AMS Dairy Programs staff at USDA from which he came nearly 12 years ago.

Cryan is most known to the membership for his invaluable work on Federal Milk Marketing Order developments and other issues pertaining to economic policy. He has been a steadfast advocate for dairy producer interests, and his keen insight and wide knowledge of milk marketing in the U.S. will be missed, according to NMPF President and CEO Jerry Kozak.

In his new position, Cryan will assume the office of Director, Economics Division, Dairy Programs, where he will manage the Economic Analysis Branch, Market Information Branch and Dairy Market News Office, among additional duties.

In the near term, Cryan’s duties will be divided among existing staff. An assessment of the future direction of this position is now underway.

Meanwhile, David Hickey, Director of Government Relations, has also left NMPF to join his family’s business venture, a global consulting firm specializing in corporate facilities relocation and site selection.

After joining the staff in early 2010 to work as a lobbyist on dairy policy, Hickey established himself as an in-house expert on environmental, energy, and other issues. His prior experience on Capitol Hill and at the National Association of State Departments of Agriculture proved useful in promoting the interests of the NMPF membership.

To fill Hickey's position, John Hollay (above left) will be joining NMPF on Monday, May 7th, as the new Director of Government Relations. Hollay will be coming from Connecticut Congressman Joe Courtney’s staff, where he served as Legislative Assistant with responsibilities for issue areas pertaining to dairy policy, general agriculture, energy, environment, and labor. He was also the lead Congressional staffer on the re-establishment of the Dairy Farmer Caucus on Capitol Hill. Hollay will be introduced to the NMPF membership at the upcoming Board of Directors and YC meeting in June.

Starting Monday, Hollay will be reachable at jhollay@nmpf.org.

 

Midwest Producer Represents Dairy Industry as Agriculture Advocate

Midwest Producer Represents Dairy Industry as Agriculture Advocate

The U.S. Farmers & Ranchers Alliance (USFRA) recently trained 18 farmers and ranchers from throughout the United States in their first Conversation Leader training. These farmers and ranchers were nominated by USFRA affiliates as outstanding agriculture advocates that can serve as spokespeople for USFRA. The training took place on March 28th and 29th in Chicago, IL.

Suzanne Vold (left), a dairy producer with NMPF member cooperative Land O'Lakes, was nominated as a Conversation Leader to participate in this training by NMPF, which is an affiliate of USFRA. The training provided her with information and hands-on experiences that will allow her to engage in more meaningful conversations about her farm and farming practices with consumers.

 

The training focused on engaging in a conversation about food production, rather than defending food production. This was accomplished through conversation training, social media training provided by AgChat Foundation, and hands-on workshops that focused on message development, media interviews, panel discussions and social media interaction. The second day of training included a breakfast that allowed the farmers and ranchers to engage in a conversation about how food is grown and raised with Chicago area food bloggers.

"We are so pleased to have such a wide variety of farmers and ranchers in attendance for our first Conversation Leader training," said Bob Stallman, President of the American Farm Bureau and Chairman of USFRA. "It is imperative for farmers and ranchers to have their voices included in the conversations about how food is grown and raised. USFRA will be using this team to serve as USFRA’s go-to farmers and ranchers for high level engagement such as meetings, tours, and media interviews."

Sessions are currently being planned to train additional Conversation Leaders to lead the conversation about how food is grown and raised.

 

Farm Bill Action Expected on Capitol Hill in June

Farm Bill Action Expected on Capitol Hill in June

Farm Bill Action Expected on Capitol Hill in June

Both the Senate and the House of Representatives are expected to take significant next steps in the development of the 2012 Farm Bill later this month.

In the Senate, Agriculture Committee leaders are pushing for a procedural cloture vote this week to demonstrate that farm bill draft – approved in the Ag Committee on April 26th – has the support of at least 60 senators. Once that cloture vote occurs, the full Senate will debate and then vote on the Farm Bill proposal. A summary has been assembled that details the key dairy elements in the Senate bill. The Congressional Budget Office affirmed last month that the entire farm bill will save approximately $23 billion over the next decade.

Meanwhile, the House Agriculture Committee has wrapped up a series of farm bill hearings, and is slated to begin fleshing out its own version of a farm bill later in June. Assuming that the Senate approves its bill this month, and the House Ag panel approves its own version in the same time frame, the full House of Representatives will have a narrow window of opportunity to pass the bill before the summer congressional recess in August.

Farmers can use NMPF’s Dairy GREAT email system to contact their Senators, urging a yes vote on the Farm Bill.

 

CWT-Assisted Export Sales Well Ahead of 2011

CWT-Assisted Export Sales Well Ahead of 2011

For the first six months of 2012, Cooperatives Working Together (CWT) has assisted 10 member cooperatives in making 406 sales to overseas buyers in 32 countries in the Asia/Pacific region, the Middle East, North Africa, and Central and South America. Cheese export sales through the end of June totaled 66.3 million pounds. Butter and anhydrous milk fat sales totaled 45.2 million pounds.

All products are scheduled to be delivered in 2012 and are the equivalent of 1.597 billion pounds of milk on a butterfat basis, or the same as the annual production of 76,100 cows. With U.S. milk production up 3.3 billion pounds in the first five months of 2012, CWT is not only expanding and maintaining markets for U.S. dairy products, but it is also moving milk out of the U.S. market. This strengthens and stabilizes dairy farmer milk prices. CWT members have sold the equivalent of 1.6 billion pounds of milk overseas so far this year.

Thirty-seven dairy cooperatives and 117 individual producers, representing 70% of the milk produced in the U.S., are investing in CWT. If more cooperatives and individual producers invest just two cents per hundredweight in CWT, the program will be more effective. For membership information, please visit www.cwt.coop.

 

National Dairy Producers Conference to be Held Next Spring

National Dairy Producers Conference to be Held Next Spring

Members of the dairy industry can mark their calendars for the upcoming National Dairy Producers Conference (NDPC), which will take place April 7 – 9, 2013 at the Hyatt Regency in Indianapolis, IN. Dairy producers, cooperative executives and directors, processors, suppliers and consultants to the dairy business, state and federal regulators, promotion organization executives, and academics are all encouraged to attend.

The NDPC provides an unmatched opportunity for key players in the dairy industry to listen, learn, and lead. No other meeting offers the same breadth of topics and sessions, all of which examine the key challenges and opportunities facing dairy farmers and marketers.

Topics for the 2013 conference will include the farm bill, immigration, dairy beef quality assurance, agricultural lending, and the estate tax and succession planning, among others. The conference will be preceded by a tour to Fair Oaks Farms. Watch for more information in the next several months.