ARLINGTON, VA – Following the March 29th announcement that the National Milk Producers Federation (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 contains incorrect information and factual errors which necessitate 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 are 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.

 

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 31 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.

 

 

Organization Will Promote Use of Logo to Differentiate American-Made Dairy Foods from Imports and Imitations

ARLINGTON, VA – The National Milk Producers Federation (NMPF) will now manage the licensing and use of the REAL® Seal , one of the most iconic and recognizable product integrity logos used in the food industry, NMPF announced today.

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.

“The REAL® Seal was created more than 30 years ago to help consumers distinguish between real and artificial cheeses, as the pizza category was really taking off,” said Jerry Kozak, President and CEO of NMPF. “Today, a generation later, we still see a need to differentiate American-made dairy products from imports, and real dairy foods from those made with soy or rice or even hemp. Our management of this labeling program will benefit consumers, as well as the farmers who have a direct stake in how their milk is marketed.”

One of NMPF’s primary missions “is protecting the integrity and overall value of U.S. dairy products. NMPF has expertise in food labeling requirements and the regulatory process affecting dairy product standards,” Kozak noted. “With NMPF’s link to dairy producers and its dedication to protecting dairy product integrity, NMPF will be able to provide valuable insight that will allow for growth of the program,” he said.

While the program will not undergo any immediate changes, Kozak said the process has begun to determine how to make the REAL® Seal an even more effective marketing tool for dairy product manufacturers, dairy product processors, food processors and food service providers.

“Consumers continue to express an interest in food quality and integrity, through the choices they make at grocery stores and restaurants,” Kozak said. “Labeling is an integral part of creating and maintaining a dialogue with them.”

As a result of this change in management, “the program will now strive to educate new generations of dairy consumers about the significance of the REAL® Seal, revitalizing the brand and talking to them about the good taste, nutritional value, and wholesomeness associated with dairy foods and dairy food ingredients made from milk produced in the United States,” he said.

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 31 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.

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) welcomed the launch today of the Korea-U.S. Free Trade Agreement (KORUS), the most economically significant U.S. FTA in nearly two decades. Thanks to this historic agreement, Korean consumers will now have greater opportunities to access high-quality dairy products from the United States.

“The United States has become an important supplier of cheese and other dairy products to Korea over the last few years,” said Tom Suber, president of USDEC, which along with NMPF took the lead role in working with U.S. government officials to represent industry interests during trade negotiations. “We believe KORUS provides a valuable opportunity for our members to strengthen their ties to Korea and for us to work with the broader Korean dairy industry to grow consumption of dairy products.”

The FTA provides immediate zero tariff access for whey for feed use, as well as duty-free access for a total of 16,000 tons of cheese, milk powders, whey for food use and other products. The agreement also calls for most of Korea’s remaining tariffs to be phased out in 5-10 years.

“The first-year access alone that KORUS provides for dairy food products equates to 270 million pounds of U.S.-produced milk. That’s 4,435 loads of milk coming from America’s hard-working dairy farmers to meet Korea’s growing demand for safe and nutritious dairy products,” said Jerry Kozak, president and CEO of NMPF.

Suber further praised the benefits of the FTA, noting that, “The access this agreement provides will not only help our exporters better serve the demands of the Korean market, but also will play a key role in helping alleviate price inflation in Korea by expanding the range of affordable food supplies.”

Consumption of U.S. dairy products in Korea has risen steadily. U.S. cheese exports to Korea grew 75 percent in 2011, reaching nearly 72 million pounds, making the United States the largest supplier with a 43 percent market share. KORUS is expected to further encourage this trend as the terms of the FTA come into effect and ultimately influence food prices in Korea.

Details on the terms of KORUS can be found on the website of the U.S. Foreign Agriculture Service at http://www.atoseoul.com/fta/fta_page2_final.asp. Further information specific to cheese and whey products can be found at http://www.atoseoul.com/fta/Cheese.pdf and at http://www.atoseoul.com/fta/Whey.pdf.

USDEC and NMPF vigorously championed KORUS at each stage in its development, working closely with the U.S. government throughout negotiations, continuously pressing for action in the long interlude between the close of negotiations and congressional consideration of the agreement, and leading the effort to actively argue its merits with respect to dairy products to members of the U.S. Congress in order to help ensure passage of the FTA.

“Today is a welcome reward for years of work devoted to bringing about closer economic relations between the two countries,” said Kozak.

The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the export trade interest of U.S. milk producers, proprietary processors, dairy cooperatives, and export traders. Its mission is to enhance international demand for U.S. dairy products and assist the industry to increase the volume and value of exports. USDEC accomplishes this through market development programs that build overseas demand for U.S. dairy products, resolving market access barriers and advancing the industry’s trade policy goals. USDEC activities are supported by staff in Mexico, Japan, South Korea, China, Taiwan, Hong Kong, Southeast Asia, South America, Middle East and Europe. Website: www.usdec.org.

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 31 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.

Dairy Farmers Need Improved Safety Net Sooner, Not Later, Says NMPF

ARLINGTON, VA – The National Milk Producers Federation’s (NMPF) Board of Directors supported a resolution today urging Congress to pass a Farm Bill in 2012, one that contains an improved safety net for farmers in the form of the Dairy Security Act.

The resolution, passed unanimously Tuesday by the NMPF Board at its spring meeting, made it clear that the organization does not support any approach in Congress that would extend current farm programs by another year, and delay the creation of a better dairy program.

“Kicking the can down the road into 2013, where the farm bill is concerned, is neither good politics, nor good policy,” said Randy Mooney, Chairman of NMPF and a dairy farmer from Rogersville, MO. “The tough choices about budget priorities won’t be any easier next year. But more to the point, dairy farmers need a better program than what we have right now. A farm bill extension in 2012 doesn’t do us any good.”

Mooney said he was encouraged that leaders in both the Senate and House Agriculture Committees have recently expressed hope that each chamber can complete work on a bill prior to the summer.

NMPF has worked since 2009 to formulate a comprehensive economic safety net that is based on margins, rather than just the farm level price of milk. After developing its own proposal, Foundation for the Future, NMPF worked with Reps. Collin Peterson (D-MN) and Mike Simpson (R-ID) to encapsulate those concepts into H.R. 3062, the Dairy Security Act.

“At some point, we have to hold Congress accountable for providing a stable safety net going forward,” Mooney said. “We’ve seen prices drop significantly in the first quarter of 2012, and margins are again compressed, even as farmers are struggling to recover from the severe losses in 2009.”

The full text of the NMPF Farm Bill resolution reads:

WHEREAS, the NMPF Board of Directors recognizes that lower milk prices and higher feed costs are likely to result in significantly reduced operating margins for dairy producers across the country in 2012, and

WHEREAS, the NMPF Board of Directors also recognizes the ineffectiveness of current federal programs designed to help protect the livelihood of dairy producers, as witnessed during the catastrophic margins of 2009, it is:

RESOLVED, that the United States Congress be urged to pass a new Farm Bill as soon as possible that includes the provisions of the Dairy Security Act, and it is further

RESOLVED, that the NMPF Board of Directors does not support an extension of the current Farm Bill and urges Congress to enact the Dairy Security Act if a Farm Bill is not enacted in 2012.

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 31 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.

Farmers Endorse Dairy Security Act as Best Approach

SARANAC LAKE, NY – At a field hearing today in upstate New York, the House Agriculture Committee heard from three dairy farmers that major reform is needed in farm policy, and all three endorsed the Dairy Security Act, H.R. 3062, as the best approach to making needed changes.

Friday’s hearing was the first of four meetings across the country that the House Agriculture Committee is holding to gather input for the upcoming Farm Bill. Neal Rea, a member of the NMPF Board of Directors, and a dairy farmer from Salem, NY, told the panel that reforms in dairy policy “must be multi-faceted, and seek to refocus existing farm-level safety nets, create a new program to protect farmers against low margins, and establish a way to better balance dairy supply and demand.” Rea is also chairman of Agri-Mark, a farmer-owned cooperative with members in New England and New York.

Rea said that his farm, like most other dairy farms, lost significant amounts of money in 2009, due to the combination of low milk prices and high feed costs, and did not benefit much from the safety net provisions of current policy. Rather than existing current programs, such as the price support and MILC payments, Rea testified that policies need to be changed to take into consideration the cost of producing milk.

“Margins, the difference between the feed costs and the milk price, became ever so important” for farmers who endured 2009, he said. The Dairy Security Act offers farmers the opportunity to obtain margin insurance that would protect against catastrophic equity losses when margins are compressed.

This approach, developed by Rea and other members of NMPF, requires “a new way of thinking about dairy economics,” he said, noting that previously, most of the focus had been solely on milk prices, but not input costs. “But if there is one lesson to be learned from 2009, it’s that change is needed,” Rea told the congressional panel.

Rea’s endorsement of the NMPF plan was echoed by Jeremy Verratti, a dairy farmer from Gasport, NY. He also noted that “margin insurance, promoted and partially subsidized by the federal government, would be very helpful in weathering the bumps in the road that disrupt normal market pricing.”

Verratti said that in some years, such as 2009, “these bumps are more like a boulder in the field you’re plowing, a small seismic shake, or even a widespread earthquake that threatens the foundation of an entire industry. As a young dairy producer, I will never forget the financial hardship of 2009.”

The third dairy farmer to offer his perspective to the committee was Eric Ooms, whose family owns a farm in Kinderhook, NY, and who was testifying on behalf of the New York Farm Bureau Federation.

“Farm Bureau supports the Dairy Security Act because the supply management component of this proposal is voluntary,” Ooms said, in reference to the market stabilization provision of the DSA. “If an individual producer chooses to limit production and the federal government wants to incentivize this, that is the producer’s decision and we support that,” Ooms said.

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 31 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.