NMPF Advocates for Industry Needs in Worldwide Trade Talks

NMPF’s active engagement with key administration officials in the lead-up to President Trump’s July 31 executive order establishing a new tariff system has helped create opportunities for dairy as deals across the globe take shape.

The order places reciprocal import tariffs on dozens of countries while maintaining the reciprocal tariff rate at 10% on all others. Several trade framework agreements were also announced prior to the order that may improve market access for U.S. dairy exporters.

The executive order sets country-specific tariff rates ranging from 10% to 41% on a broad set of imports. Several key U.S. trading partners negotiated terms to secure 15%-20% tariff rates under bilateral arrangements, including the EU, Japan, Indonesia, the Philippines, South Korea, the UK and Vietnam. Details on each are slim – with some having been announced solely via social media – yet most reference tariff reductions that would benefit U.S. agricultural exports.

Throughout these discussions, NMPF staff Jaime Castaneda and Shawna Morris, who served as Confidential Agricultural Trade Advisors to USTR and USDA, have provided extensive details and recommendations to U.S. trade negotiators on the importance of maintaining stable access to key export markets, avoiding retaliatory disruptions, reducing tariffs, and resolving nontariff trade barriers in specific markets.

NMPF joined USDEC in praising the framework agreement announced with Indonesia, which notably would eliminate Indonesia’s 5% dairy tariffs in a promising and growing market for U.S. dairy products and seeks to address nontariff barrier concerns with Indonesia’s lengthy facility registration process and threats to the use of common cheese names.

“We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets,” said Gregg Doud, president and CEO of NMPF, in the statement. “NMPF looks forward to reviewing the details of the agreement and working with the administration to ensure Indonesia upholds its end of the bargain.”

Separate negotiations are underway with countries on which the U.S. first began raising tariff rates: Mexico, Canada and China. Mexico, the largest market for U.S. dairy, received a 90-day reprieve, allowing continued negotiations and uninterrupted trade for the time being. Meanwhile, Canadian exports that are not USMCA-compliant will face a 35% tariff beginning Aug. 2. Negotiations with China to avert a further hike in bilateral tariffs with that country are ongoing, with a looming deadline of Aug. 12.

NMPF Looks Ahead After Securing Farm, Tax Policy Wins

NMPF is building momentum on other major policy areas now that significant tax and agriculture legislation has passed Congress, with a focus on whole milk and farm workforce needs.

The Whole Milk for Healthy Kids Act has a chance for Senate floor action, having already passed through the Senate Agriculture Committee. The bill would provide schools with the option of serving whole and 2% milk in addition to the 1%, fat-free, and flavored options currently offered. Whole and 2% milk are the most consumed varieties at home and offer the same 13 essential nutrients, including protein, calcium and vitamin D, as lower-fat varieties.

Sens. Roger Marshall, R-KS, and Peter Welch, D-VT, the bill’s lead Senate sponsors, are working to pass the measure in the Senate by unanimous consent, a maneuver that saves time and heads off potentially problematic amendments. House Agriculture Committee Chairman GT Thompson, R-PA, and Representative Kim Schrier, D-WA, are leading the bill in the House and are working to coordinate quick passage once it moves from the Senate to the House.

NMPF also continues to urge Congress to pass legislation that meets dairy’s unique agricultural workforce needs, an increasingly pressing challenge given stepped-up deportation activity.

House Agriculture Committee Chairman Rep. GT Thompson, R-PA, is developing legislation based on last year’s House Agriculture Labor Working Group report, which recommended improving dairy’s access to the H-2A ag visa program. NMPF is also seeking stabilization for current dairy farm workers and their families, potentially in line with President Trump’s recent comments recognizing the importance of farm workers to the work producers do to feed the country and care for their animals.

NMPF has also stepped up its public and member communication on agricultural labor. NMPF hosted a members-only webinar offering guidance to farmers on immigration law on July 22. Meanwhile, Chief Veterinary Officer Meggan Hain had an opinion article on the importance of a stable foreign-born work force to animal welfare that was published in the USA Today Network wire service on July 24.

Finally, Congress is likely to turn its attention to passing a slimmed-down “Farm Bill 2.0” – items not included in the provisions of the tax legislation that included agriculture, including many programs traditionally handled in farm bills. The legislation will provide an opportunity to advance NMPF policy priorities that were unable to be included in the recent budget package, such as the bipartisan, bicameral SAFETY Act to direct USDA to partner with the U.S. Trade Representative to prioritize the protection of common food names like “parmesan” and “bologna” in international trade negotiations.

A slimmed-down bill will build on the dairy policy wins in the One Big Beautiful Bill Act signed July 4, which included:

  • Renewing the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history calculation to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in their coverage for the duration of the bill;
  • Providing mandatory funding for USDA to conduct mandatory dairy processing cost surveys every two years to provide better data to inform future make allowance conversations;
  • Boosting the farm bill conservation baseline, resulting in increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program;
  • Providing new trade promotion funding based on current programs that return well over $20 in export revenue for every dollar invested in the programs; and
  • Increasing funding for animal health programs that help to prevent, control, and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle.

The legislation also included several tax policy priorities for dairy farmers and the cooperatives they own.

  • The bill made permanent the Section 199A deduction, enabling dairy farmer-owned cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.
  • It also extended the Clean Fuel Production Tax Credit through 2029 to support the production of low-carbon transportation fuels. The bill strengthens the credit by allowing the Treasury Department to establish specific emissions rates for fuels derived from dairy manure, with the goal of unlocking new revenue streams for dairy farmers who invest in methane digesters that reduce emissions.

Joint Statement from NMPF and USDEC on Senate Confirmation of Luke Lindberg as USDA Under Secretary of Trade and Foreign Agricultural Affairs

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) today applauded the Senate’s confirmation of Luke Lindberg to the position USDA Under Secretary of Trade and Foreign Agricultural Affairs.

Statement from Gregg Doud, President and CEO of NMPF:

“We are excited to get to work with Under Secretary Lindberg, who has a proven track record of advancing American agricultural interests and will help USDA deliver results for American dairy producers and cooperatives. Mr. Lindberg’s leadership and understanding of trade policy strengthen the future of U.S. dairy. We look forward to working with Under Secretary Lindberg and the entire Trump administration to champion American dairy farmer interests, fight back on unjustified and unscientific barriers to American exports and open markets across the globe.”

Statement from Krysta Harden, President and CEO of USDEC:

“The confirmation of Luke Lindberg represents a significant win for U.S. dairy exporters and our industry’s global competitiveness. Mr. Lindberg’s experience leading trade missions and managing export initiatives position him perfectly to break down trade barriers and create pathways for American dairy to reach global consumers. Last year, U.S. dairy exports reached a historic $8.2 billion, demonstrating the tremendous global demand for American dairy products. This position is critical to advancing America’s leadership in international dairy markets. Together we can put more Made in America dairy on more overseas shelves. We are delighted to have a strong advocate for policies that enhance competitive dairy access into international markets.”

Dairy Maintains Momentum Through Turbulence

It doesn’t really need to be said, because evidence is everywhere. But it’s worth repeating, in light of how easy it is to lose focus among turbulence in labor, trade and politics: Dairy’s future is incredibly bright.

Any skepticism toward that idea can quickly be countered with about 10 billion reasons. That’s the dollar amount of investments in new dairy processing capacity that’s coming online between 2023 and 2026, according to an NMPF analysis. Ultimately, these investments are an investment in the U.S. dairy farmer.

From Washington state to Georgia, manufacturers are placing their bets on increased consumer demand for dairy products. State-of-the-art facilities are promising to put affordable, nutritious dairy foods on store shelves and dinner plates in the United States and around the world. The processing growth is creating new outlets for dairy farm production, a tide that lifts all boats across the industry.

And the realization that growing consumer demand isn’t just a forecast: It’s current reality.

  • U.S. fluid-milk consumption rose last year for the first time since 2009. Milk’s market share versus plant-based imposters continues to rise (as if nut drinks were ever truly a threat in the first place).
  • Cottage cheese has emerged as the go-to snack food for Generation Z.
  • And per capita overall U.S. dairy demand continues at levels last seen in the 1950s.

All that is a tribute to the fact that, even with all the diet diversification since then, dairy remains a bedrock of American diets, accessible to all, affordable, and trusted. It’s also a tribute to the industry’s vision and how long-term producer investment in the dairy checkoff has encouraged innovation in new research, technologies, and products.

Overseas sales remain a bright spot for the industry as well. That may seem surprising, given all the headlines of volatility in global trade as the United States tries to reset global commerce. But it’s true: In 2025 through May, the value of U.S. dairy exports was $3.873 billion, 13% higher than the same period last year, when they were $3.422 billion.

That’s a powerful testament to the resilience of U.S. dairy producers and exporters who work around the clock, managing and building relationships that are being heavily tested this year. While overall year-to-date sales volumes are slightly down, and Chinese retaliatory tariffs have heavily weighed down sales to that market, higher-value products like high protein whey products have grown 8% by volume and 30% by value year-to-date. Similarly, U.S. cheese exports are up 7% by volume and 18% by value when compared to 2024 exports through May.

Recent progress in new trade deals with trade partners such as Indonesia also brings encouragement that eventually trade waters will calm, with new opportunities possible for U.S. dairy producers as the turbulence ebbs. Thank you, U.S. Dairy Export Council, thank you NMPF member cooperatives, thank you, NEXT Program, and most all thank you, dairy farmers, for keeping this momentum going.

All this, of course, isn’t meant to give short shrift to the significant challenges ahead. At NMPF we are well aware of the workforce challenges facing dairy farms as a nationwide crackdown on illegal immigration disrupts agricultural workforces. Current trade success so far doesn’t mean policy upheaval can’t damage or reverse progress, nor that export momentum will stay the same if new trade policies don’t improve global access opportunities. And consumer confidence faces misinformation threats that only become more sophisticated.

But heading into August, when Congress goes back home and policymaking hits a temporary pause, we at NMPF couldn’t be prouder to represent a growing, thriving industry — not one that’s free from challenges, but one that meets the challenges at hand. Dairy’s momentum becomes our momentum. That momentum is significant. It augurs well for the months and years to come.


Gregg Doud

President & CEO, NMPF

 

NMPF’s Castaneda Explains for Dairy Radio Now the Importance of Investigation of Milk Powder Trade

NMPF’s executive vice president Jaime Castaneda explains for listeners of Dairy Radio Now why NMPF asked the Trump Administration to investigate the world trade in milk powders, and, in particular, the impact of Canada’s protectionist practices on U.S. producers. Castaneda and NMPF colleague Will Loux testified this week on the issue.

Fake butter is a dairy labeling crock

By Christopher Galen, Executive Director, American Butter Institute

Butter continues to be the case study for how real dairy products have been dogged by plant-derived imitators for decades. Where butter is concerned, oleomargarine has been nipping at its heels for nearly 100 years, starting at the dawn of the ultra-processed food era. Margarine use surged after World War II, but in the 21st century, a preference for natural foods and consumer aversion to long ingredient labels has turned the tide, as per capita butter use has grown, while vegetable spreads usage has melted.

But there’s always a new wrinkle to this competition, or, to mix metaphors, old wine in new skins. I’m referring to the Country Crock product made from seed oils (palm and canola, mostly) that doesn’t even meet the legal definition of margarine. Yet its makers have the gall to market this as “dairy free salted butter.” In addition to that highly suspect prominent label description, the Country Crock package includes an image of a traditional red barn associated with dairy farms and employs an image of real butter pats, not their oily impersonators.

This label is a flagrant violation of federal standards of identity, which define butter as a product “made exclusively from milk or cream, or both, with or without common salt, and containing not less than 80% by weight of milkfat.” That’s the clear description of the Code of Federal Regulations, and Congress even passed a Butter Act to further emphasize the point that plant-based imitators don’t fit the butter bill.

This misleading packaging prompted the American Butter Institute (ABI) to fire off a letter this summer to the FDA’s Office of Nutrition and Food Labeling, pressing the agency to either ask Country Crock to correct its label or seek its withdrawal from sale, given its false and misleading label.

Unfortunately, while the FDA was quick to respond to ABI’s complaint, the gist of its response was that it is relying on plant food marketers to police their own practices according to a 2025 FDA guidance indicating that if imitators use the name of a standardized food (butter, in this case), the imitation food should be qualified by its type of plant source. The FDA also wrote to ABI that it looks at the entire context of the label to identify the nature of the food within, to ensure that it is not misleading.

Thus, what’s particularly irritating here is that the label is obviously designed to deceive: apart from the oxymoron of “dairy free salted butter,” it also features a big red barn and silo on its front, while offering only in a very tiny font at the package bottom that it is a “79% plant-based oil spread.” If there is a better illustration of a false and misleading product package, you’d have to search the grocery store for a long time to find one.

I wish I were surprised by this shrug of the shoulders by FDA, but that’s been the consistent pattern for many years regarding things like vegan butter and plant-based butter . . . along with the whole panoply of fake milks, cheeses, ice creams, and yogurts, none of which have a drop of real dairy in them.

So, ABI and the National Milk Producers Federation will continue hammering away at the FDA regulators and ask them to simply do their jobs. We are hoping that the new leadership at FDA will feel compelled to defend food product integrity and help consumers make better choices about real foods — a process that has to start with the label.


This column originally appeared in Hoard’s Dairyman Intel on July 31, 2025.

U.S. Dairy Organizations Testify Before USITC on Global Policies Affecting Dairy Markets

National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) Executive Vice President for Policy Development & Strategy, Jaime Castaneda, and Senior Vice President for Global Economic Affairs, Will Loux, testified today before the U.S. International Trade Commission (USITC) on the need for the U.S. government to hold trading partners accountable for policies that disrupt global markets for nonfat milk solids products and harm U.S. dairy producers and exporters. Chief among those concerns were Canadian dairy policies.

Throughout the hearing, Castaneda and Loux highlighted how trade distorting policies and subsidies from Canada, India, Turkey, the European Union, and others have driven artificially low-priced exports from those competitors onto global markets, undercutting U.S producers. The remarks complemented a set of in-depth comments filed on July 16.

“The U.S. is an extremely competitive player in world dairy markets,” said Castaneda. “However, Canada’s actions are one of the major policy factors undermining fair competition in those markets. We encourage this investigation to include a focus on the full breadth of trade distorting policies that Canada and other major suppliers employ that can undercut U.S. producers and exporters. It is critical that the United States takes steps to curb these anticompetitive practices during the 2026 USMCA review process.”

The hearing was part of an ongoing USITC investigation into the global nonfat milk solids market and export competitiveness. As requested by the U.S. Trade Representative, the inquiry and subsequent report will analyze government policies and programs that Canada and other major suppliers maintain that affect the production and exports of nonfat milk solids products from major dairy producing countries. NMPF and USDEC have been urging the U.S. government to take steps to address Canada’s continued attempts to circumvent its trade commitments that were intended to limit the offloading of artificially low-priced dairy proteins onto the global market. USTR’s initiation of this investigation was a key step in that direction.

“Canada’s exports of protein concentrates and isolates have more than doubled since the implementation of USMCA,” said Loux in his remarks. “India’s subsidized SMP exports were as high as 45,000 metric tons in 2021 and were sold at a 10% discount compared to the global average. Turkey’s whey exports—which have quadrupled in the last two years by selling at roughly half the global average—are increasingly moving beyond the Middle East and into critical export markets for U.S. manufacturers, including Southeast Asia and China. It is essential that the United States push back against dishonest trade practices and ensure that U.S. dairy producers can compete on a level playing field around the world.”

USITC is scheduled to submit its report to USTR by March 23, 2026.

Complementing this effort, NMPF and USDEC are dedicated to working with the Administration and Congress to leverage the investigation’s findings through the 2026 USMCA Review process to ensure that U.S. dairy producers are delivered the market access they were promised and fully benefit from the agreement moving forward.

U.S. Dairy Industry Praises Indonesia Trade Agreement

The National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) applauded the announcement late yesterday of a new trade framework between the United States and Indonesia that eliminates tariffs on the vast majority of U.S. exports and contains pledges to remove longstanding nontariff barriers affecting American dairy products.

“This looks like it will be a significant win for U.S. dairy. We commend the Trump Administration for securing an agreement that should deliver real benefits for our dairy farmers,” said Gregg Doud, president and CEO of NMPF. “We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the Administration to ensure Indonesia upholds its end of the bargain.”

As outlined in a White House factsheet issued yesterday, Indonesia will eliminate tariffs on approximately 99% of U.S. exports; recognize U.S. regulatory oversight, including by listing all U.S. dairy facilities and accepting certificates issued by U.S. regulatory authorities; and commit to implement a fair and transparent process for handling geographical indications (GIs) to ensure common cheese names are respected.

“Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly,” said Krysta Harden, president and CEO of USDEC. “While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”

“The prospect of having Indonesia commit to a more transparent and balanced approach to GIs would be a meaningful advance in the global fight to preserve the use of common food names like parmesan and feta,” said Jaime Castaneda, executive director of CCFN. “We commend the U.S. negotiators for prioritizing this issue, particularly at a time when European Union is attempting to expand their GI abuse in growing dairy markets and shut out the United States. We will work diligently with the U.S. government to hold Indonesia accountable to their commitments on common names.”

The United States exported $246 million in milk powders, whey products, cheese and other dairy ingredients to Indonesia in 2024, making it the seventh largest U.S. dairy export destination. The agreement complements ongoing work by NMPF and USDEC to support integration of school milk into Indonesia’s new Free Nutritious Meals program and foster greater collaboration on trade.

NMPF, USDEC and CCFN also welcomed the news that agreements had been struck this week with the Philippines and Japan, with details forthcoming.

U.S. Dairy Industry Celebrates Julie Callahan Nomination for Chief Agricultural Negotiator

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) commended President Trump’s nomination of Dr. Julie Callahan to serve as Chief Agricultural Negotiator for the Office of the U.S. Trade Representative.

“The role of Chief Agricultural Negotiator is critical to ensuring that American dairy farmers have a voice in trade negotiations,” said Gregg Doud, president and CEO of NMPF and a former USTR Chief Agricultural Negotiator. “Dr. Callahan is the right choice. Her expertise and leadership in agricultural trade policy is second to none. Dairy farmers and the entire U.S. dairy industry look forward to working with her to open new export markets and hold our trading partners accountable. We ask that the Senate move swiftly to advance her confirmation process.”

Callahan currently serves as the Assistant U.S. Trade Representative for Agricultural Affairs and Commodity Policy where she leads on expanding and preserving market access opportunities for U.S. farmers and food manufacturers. Her impressive tenure in agricultural trade policy spans across a variety of leadership roles with USTR and the U.S. Food and Drug Administration, in addition to early career experience with the USDA Foreign Agricultural Service and the American Chemical Society.

“Dr. Callahan’s nomination today is a win for U.S. agriculture,” said Krysta Harden, president and CEO of USDEC. “The U.S. dairy industry depends on a proactive trade policy agenda to grow. Dr. Callahan brings deep trade policy expertise and an unmatched record of advocating for U.S. farmers and food manufacturers to a role vital to ensuring agriculture has a seat at the negotiating table. We look forward to working with her to drive back trade barriers and build markets for American dairy producers. USDEC calls on the Senate to quickly confirm her as our next Chief Agricultural Negotiator.”

“For far too long, the European Union has misused its geographical indications rules to monopolize common food names like ‘parmesan’ and block fair competition from U.S. producers,” said Jaime Castaneda, executive director of CCFN. “In her current role, Dr. Callahan has been leading the charge in preserving market access for U.S. common name producers in the face of these harmful EU policies. Her leadership will be instrumental in working to ensure that the European Union stops taking advantage of American farmers. We are excited for the opportunity to further work with her on this important mission and urge an expeditious confirmation process in the Senate.”

EPA’s PFAS Assessment is Well-Meaning but Wrong

By Clay Detlefsen, Senior Vice President, Regulatory & Environmental Affairs

As part of its effort to protect communities from per- and polyfluoroalkyl substances (PFAS), the Environmental Protection Agency has created a draft risk assessment modeling human exposure to the “forever chemicals” PFOA or PFOS from the application of sewage sludge, or biosolids, to farmland. This risk assessment does not model risks for the general public, only very specific populations living on or near sites affected by PFAS from biosolids.

EPA’s goal of the risk assessment is to inform future actions by federal and state agencies as well as steps that wastewater systems, farmers and other stakeholders can take to protect people from PFAS exposure, while also ensuring American industry keeps feeding and fueling the nation. And that’s a worthwhile goal. However, the models used in the draft risk assessment operate on extreme assumptions which don’t account for the reality of agriculture.

One part of EPA’s assessment models the PFAS exposure risk to dairy farmers. In this model, a dairy farm family lives on an 80-acre farm next to a 13-acre lake, where sewage sludge containing one part per billion of PFAS has been applied to the pasture every year for 40 years where the cows are raised. Everyone in the family drinks 32 oz of milk directly from the bulk tank each day, and they also eat eggs and meat from animals on the farm, fish from the nearby lake, and fruits and vegetables grown on the farm. The farm family has lived on the land for the past 10 years.

Sound familiar? Of course not. There’s not a single dairy farm in the country that produces every piece of food a family eats. Furthermore, there are not that many dairies in the United States that pasture raise their cows, and even fewer that apply sewage sludge from municipal wastewater systems to their pastures every year for 40 years. This model also does not account for existing best management practices for the land application of biosolids that farmers often incorporate into their practices.

EPA’s draft risk assessment is yet another example of the agency forcing a square peg in a round hole when it comes to PFAS on dairies. It is important to continue to increase our understanding of PFAS and how it moves through our ecosystem, as well as the potential health effects of PFAS exposure. But EPA’s misguided approach in this model paints an inaccurate picture that does a disservice to everyone.

The National Milk Producers Federation, together with other major agriculture organizations, will be submitting comments to EPA in the coming weeks that explain the shortcomings of the agency’s draft risk assessment on PFOA and PFOS in sewage sludge and why this model should not be used to inform new regulations. There is no clear solution to this issue right now, but NMPF will continue to advise EPA about realistic representation of on-farm practices.


This column originally appeared in Hoard’s Dairyman Intel on July 17, 2025.

NMPF’s Bleiberg Explains Dairy Policy Implications of “Big, Beautiful” Budget Bill


NMPF Executive Vice President Paul Bleiberg explains for listeners of Dairy Radio Now how the recently-passed “one big beautiful bill” will affect dairy policy, including extension for fie years of the Dairy Margin Coverage program.  He also forecasts whether Congress will tackle other elements of the next farm bill yet this year.