Uncategorized

Small Changes in Costs, Prices Move March DMC Margin Above $9.50 Trigger

Posted on by Theresa Sweeney

The DMC margin rose by $0.21/cwt from February to March to $9.65/cwt, putting it just above the maximum $9.50/cwt maximum Tier 1 coverage level. The March All-Milk price rose by $0.10/cwt to $20.70/cwt, and the March DMC feed cost calculation dropped by $0.11/cwt, almost entirely on a $7.00/ton lower premium alfalfa hay price.

The DMC Decision Tool on the USDA/FSA website forecasts that the DMC margin will remain above $9.50/cwt for the rest of 2024. The enrollment period for the 2024 Dairy Margin Program ended on Tuesday. For those who are signed up for 2024 coverage, payments will be made for January’s and February’s triggered payments, depending on coverage level.

12 Years to a Win: USDA Makes Low-Fat, Skim Flavored Milk a Rule in Schools

Posted on by Theresa Sweeney

A dozen years of steady NMPF effort paid off for dairy farmers and the broader industry on April 24, when USDA solidified the ability of schools to offer 1% and fat-free flavored milk in school meals for children of all ages in its final school nutrition standards rule.

The policy win will encourage consumption of the essential nutrients provided by dairy, helping children who consume nutritious dairy products.

“This final rule helps ensure kids will be able to choose a nutritious milk they tend to prefer,” said Gregg Doud, CEO and President of NMPF. “Many children prefer low-fat flavored milk over fat-free, and flavored milk offers the same nutrients as regular milk with a minor amount of added sugar.”

NMPF praised its member cooperatives for their tireless work to decrease the level of added sugar in flavored school milk, which now generally falls below the added sugar maximum established in this final rule. “Not only does flavored milk offer the same nutrients as regular milk, its presence correlates with decreased waste in school cafeterias. I am proud of our industry’s successful commitment to providing a healthy product that kids want,” Doud said.

The final rule will include sodium limits on school meals that will not be more restrictive than the Target 2 limits from the 2012 school meals rule, a compromise NMPF supports. Added sugar maximums will also be placed on flavored yogurt (12 grams per 6 ounces) and flavored milk (10 grams per 8 ounces) beginning with the 2025-26 school year, followed by a weekly menu-wide limit of an average of less than 10 percent of calories per meal from added sugars beginning with the 2027-28 school year.

NMPF also commended the work of Reps. Glenn ‘GT’ Thompson, R-PA, and Joe Courtney, D-CT, who led and secured broad bipartisan backing for legislative efforts over several years that were instrumental to today’s outcome of restoring low-fat flavored milk as a long-term option for schools.

“We are grateful to Representatives Thompson and Courtney for spearheading the successful drive to restore low-fat flavored milk over these last 12 years,” Doud said. “We are thrilled that, working with these members, USDA has put this issue to rest.”

Doud also noted that despite noteworthy progress, the work to ensure adequate milk access in schools isn’t finished yet. NMPF supports the Whole Milk for Healthy Kids Act, which would restore whole and 2 percent varieties to school lunch menus. Led by Reps. Thompson and Kim Schrier, D-WA, the legislation overwhelmingly passed the House of Representatives in December and awaits Senate approval.

NMPF Galvanizes Dairy Response to HPAI as Animal Health Concern Evolves

Posted on by Theresa Sweeney

NMPF helped lead the dairy community in responding to rapidly evolving circumstances around the spread of the H5N1 virus among dairy cows while advocating for farmers before the federal government and reassuring consumers about the safety of milk throughout April.

With the National Dairy FARM Program available as a resource for best practices and communications efforts that informed everyone from farmers in NMPF member cooperatives to consumers of national and global media, NMPF expertise was at a premium as the dairy industry, the federal government and dairy buyers navigated a landscape that changed significantly over several weeks, culminating in a Federal Order that took effect April 29 covering testing and interstate movement.

Many efforts revolved around clearly understanding the problems posed by the virus and understanding those problems for what they are, and what they are not.

“Since this virus was first discovered in cows, H5N1 in dairy cattle has been primarily an animal health concern,” said NMPF President and CEO Gregg Doud in a statement released April 24, the day USDA announced testing requirements for lactating cows traveling interstate.

“USDA, FDA and scientific research has established what accumulated science indicated all along: The consumer milk supply is safe. Pasteurization renders the H5N1 virus, like other viruses, inactive, an important reminder to consumers of its value as a basic safeguard for human health. We appreciate that these agencies are sharing this message, which will help alleviate any concerns consumers may have.

“That said, the presence of this virus in dairy herds, as well as dairy farmers’ own commitment to animal and human health, makes USDA’s actions on testing and interstate travel appropriate. Dairy farmers stand ready to take a proactive approach to ensuring that we better understand the spread of the virus, do what we can to limit that spread, and ensure the health of our animals and workers.”

As NMPF Chief Science Officer Jamie Jonker served as a go-to resource for public information in the evolving virus situation, discussing dairy-farmer actions and concerns for National Public Radio, the Washington Post, Science Magazine and other outlets, NMPF members were kept informed in real time via fast-moving member alerts.

NMPF also organized three webinars focused on different aspects of High Pathogen Avian Influenza in dairy cattle relevant to members; convened its Co-op Communicators Committee to share media strategy and make NMPF co-op resources available; and served as a shield for members as they faced often-unanswerable questions in an at-times challenging media spotlight.

In addition, NMPF’s HPAI resources page was the most-viewed page on NMPF’s website in April, drawing more page views than the homepage itself – the first time a page other than nmpf.org was most-viewed for the month since the launch of NMPF’s Covid resources page in 2020.

April ended with the new rules on interstate cow travel and testing, while FDA tests showing the effectiveness of pasteurization in killing the H5N1 virus in milk helped allay consumer concerns. Still, HPAI as a dairy concern shows little sign of abating.

NMPF and USDEC Advocate for Enhanced Dairy Trade Opportunities at USTR Hearing

Posted on by Theresa Sweeney

Tony Rice, Trade Policy Director for the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC), will testify this afternoon before the U.S. Trade Representative (USTR) on how U.S. trade policy can strengthen supply chain resiliency and ensure that U.S. dairy continues to grow as a global leader.

The U.S. dairy industry exported more than $8 billion worth of products in 2023, supporting thousands of jobs and contributing significantly to the national economy. Rice in his testimony will highlight the need for a more proactive U.S. trade policy agenda that aggressively tackles global trade barriers and enhances market access to key partners.

“An inclusive, worker-centered trade policy should reflect the central role that comprehensive trade agreements and American exports play for the agricultural economy and the many farmers and workers throughout the supply chain who rely on it,” Rice says in his prepared statement. “Expanding export sales does not only support America’s farms, but also traditionally underserved workers in rural communities and in companies supplying inputs and services, in downstream food manufacturing plant jobs, and in cities with large port facilities heavily dependent on trade.”

Rice also recommends that USTR incorporate dairy-specific elements in trade negotiations, drawing on the precedent set by annexes for wine in various agreements, or the broad recognition of the U.S. regulatory system for processed foods including dairy in the U.S.-Panama Trade Promotion Agreement.

“Such steps would facilitate smooth, more reliable and robust dairy supply chains with our trading partners,” Rice says in his statement.

Find NMPF and USDEC’s full testimony here.

We Will Meet HPAI’s Challenge

Posted on by Theresa Sweeney

For more than a month now, dairy farmers and the entire industry have been working together to manage a challenge that they didn’t create and didn’t bring upon themselves. As of Monday, farmers are now dealing with new federal mandates that are complicating their livelihoods, even as they’re aimed toward mitigating a very real animal and potential public health risk. And because these challenges revolve around a virus, our circumstances aren’t fully under our control.

But they’re challenges we can meet.

Since Highly Pathogenic Avian Influenza in dairy cattle was first identified in the Texas Panhandle in late March, we at NMPF have been tirelessly monitoring, learning, and applying new information to the situation as it evolves, answering questions for our members and advocating for dairy’s interests as policymakers and the general public understandably pay increased attention to dairy farms.

As farm biosecurity becomes top-of-mind, we’re proud to say we’ve already been thinking about it, through our FARM Biosecurity initiative, which was initially developed thanks in part to a USDA cooperative agreement. As knowledge of HPAI and its effects on cattle develop, we’re blessed with deep knowledge of animal care and science on our own staff. And as buyers and trade partners ask questions and federal agencies create guidelines, we’ve been able to address concerns and discourage over-reaction due to our credibility and demonstrated leadership in making sure that U.S. dairy is responsible, reliable and ready to reassure based on science and sound judgment.

We’ve also been encouraged by the collaboration we’ve seen throughout agriculture, not just among dairy organizations but with federal and state officials, veterinarians and our colleagues in the cattle, poultry and egg industries, as we share best practices and information on how best to confront what may become a longer-term fixture on dairy’s landscape. We know from others’ experiences that while HPAI may change certain practices, it’s far from fatal to either public confidence or to industries affected by it. HPAI is a situation to be managed, not a cause for panic. Calm communication and coordination with others have helped us respond effectively to concerns and build confidence that our responses will succeed in steadying any disruptions we’ve felt.

So even in uncertainty, there’s much we can do. What we can’t do is declare an early victory over this challenge or predict an endpoint at which these concerns pass. The fact is, there may not be an endpoint. Again, we’re dealing with a virus. Viruses mutate, they spread in ways we don’t fully understand, and they prompt reactions that we can’t fully control. While we are hoping that the end of the spring migration, along with stepped-up biosecurity, herd monitoring and testing, will cause HPAI in dairy cattle to fizzle out, the possibility that this virus could become an ongoing, cyclical concern for dairy farmers is real.

But we’re ready. As we’ve learned these past few weeks, we have an ability to work together, meet challenges, and respond nimbly as circumstances evolve. We are looking forward to rising to meet whatever comes our way, knowing we have the depth, determination and expertise required to make the unexpected manageable, and seemingly daunting tasks the foundation for future success.

 

Gregg Doud

President & CEO, NMPF

 

NMPF Statement on House and Senate Farm Bill Frameworks

Posted on by Theresa Sweeney

From NMPF President & CEO Gregg Doud:

“Dairy farmers are heartened that today, both House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, and Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, each released documents providing an overview of their farm bill priorities and plans. Dairy farmers and the cooperatives they own are better-served by the certainty provided under a five-year farm bill, and as both chairs point the way toward important dairy priorities across multiple farm bill titles, all of dairy is eager to see this process get moving.

“We look forward to the House Agriculture Committee’s markup of its bill on May 23. We’re ready, and excited, to work with both chairs and their ranking members to complete work on a farm bill this year.”

CWT Assists with 922,000 Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted ten offers of export assistance from CWT that helped them capture sales contracts for 101,000 pounds (50 MT) of American-type cheese, 150,000 pounds (70 MT) of anhydrous milkfat, 66,000 pounds (30 MT) of whole milk powder and 604,000 pounds (275 MT) of cream cheese. The product is going to customers in Asia, Central America, the Caribbean, Middle East-North Africa and South America, and will be delivered from May through July 2024.

CWT-assisted member cooperative year-to-date export sales total 37.8 million pounds of American-type cheeses, 309,000 pounds of butter (82% milkfat), 767,000 pounds of anhydrous milkfat, 8.5 million pounds of whole milk powder and 3.9 million pounds of cream cheese. The products are going to 27 countries in five regions. These sales are the equivalent of 469.1 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and cooperatives by fostering the competitiveness of U.S. dairy products in the global marketplace and helping member cooperatives gain and maintain world market share for U.S. dairy products. As a result, the program has helped significantly expand the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

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The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins.

NMPF Statement on New Federal Travel and Test Order That Begins Today

Posted on by Theresa Sweeney

From President & CEO Gregg Doud:

The crossover of this H5N1 virus from birds to dairy cattle has presented some extraordinary challenges to animal and human health regulators in Washington. Throughout my regular contact with Secretary Vilsack, Undersecretary Moffitt, and officials from FDA and other agencies in recent weeks, I have seen how leadership at USDA, FDA and other federal agencies is well-equipped to get us through this challenge.

As new rules on testing and travel take effect today, dairy farmers and their cooperatives are ready to support these efforts to protect animal health and guard against a potential human health risk. We have offered input to federal officials on how to help farmers implement these guidelines, and we will continue sharing feedback as these procedures are put into practice. We appreciate the around-the-clock efforts that federal and local authorities and experts, from USDA and other agencies to state officials and local veterinarians, have been making to get a new system up and running these past few days, and we are grateful for their dedication and commitment.

NMPF’S Hanselman Explains New USDA School Meal Dairy Regulations

Posted on by Chris Galen

NMPF’s Director of Regulatory Affairs, Miquela Hanselman, explains to Dairy Radio Now listeners the changes to the federal school lunch program meal requirements just announced by USDA.  The new rules will maintain a place at the table for flavored milk, while also making modest adjustments to sodium levels that won’t negatively impact cheese offerings in school meals.

NMPF Statement on H5N1 and Federal Order on Lactating Cows

Posted on by Theresa Sweeney

From NMPF President & CEO Gregg Doud:

Since this virus was first discovered in cows, H5N1 in dairy cattle has been primarily an animal health concern. Today’s announcements and actions underscore that continued concern and focus on the well-being of animals and those who care for them.

USDA, FDA and scientific research has established what accumulated science indicated all along: The consumer milk supply is safe. Pasteurization renders the H5N1 virus, like other viruses, inactive, an important reminder to consumers of its value as a basic safeguard for human health. We appreciate that these agencies are sharing this message, which will help alleviate any concerns consumers may have.

That said, the presence of this virus in dairy herds, as well as dairy farmers’ own commitment to animal and human health, makes USDA’s actions on testing and interstate travel appropriate. Dairy farmers stand ready to take a proactive approach to ensuring that we better understand the spread of the virus, do what we can to limit that spread, and ensure the health of our animals and workers.

NMPF Thanks USDA for Keeping Low-Fat Flavored Milk in Schools, Culminating 12-Year Effort

Posted on by Theresa Sweeney

The National Milk Producers Federation thanked USDA for solidifying the ability of schools to offer 1% and fat-free flavored milk in school meals for children of all ages in its final school nutrition standards rule, a victory for schoolchildren that’s been 12 years in the making and will encourage consumption of the essential nutrients provided by dairy.

“This final rule helps ensure kids will be able to choose a nutritious milk they tend to prefer,” said Gregg Doud, CEO and President of NMPF. “Many children prefer low-fat flavored milk over fat-free, and flavored milk offers the same nutrients as regular milk with a minor amount of added sugar.”

NMPF praised its member cooperatives for their tireless work to decrease the level of added sugar in flavored school milk, which now generally falls below the added sugar maximum established in this final rule. “Not only does flavored milk offer the same nutrients as regular milk, its presence correlates with decreased waste in school cafeterias. I am proud of our industry’s successful commitment to providing a healthy product that kids want,” Doud said.

The final rule will include sodium limits on school meals that will not be more restrictive than the Target 2 limits from the 2012 school meals rule, a compromise NMPF supports. Added sugar maximums will also be placed on flavored yogurt (12 grams per 6 ounces) and flavored milk (10 grams per 8 ounces) beginning with the 2025-26 school year, followed by a weekly menu-wide limit of an average of less than 10 percent of calories per meal from added sugars beginning with the 2027-28 school year.

NMPF also commended the work of Reps. Glenn ‘GT’ Thompson, R-PA, and Joe Courtney, D-CT, who led and secured broad bipartisan backing for legislative efforts over several years that were instrumental to today’s outcome of restoring low-fat flavored milk as a long-term option for schools.

“We are grateful to Representatives Thompson and Courtney for spearheading the successful drive to restore low-fat flavored milk over these last 12 years,” Doud said. “We are thrilled that, working with these members, USDA has put this issue to rest.”

Doud also noted that despite todays’ significant progress, the work to ensure adequate milk access in schools isn’t finished yet. NMPF supports the Whole Milk for Healthy Kids Act, which would restore whole and 2 percent varieties to school lunch menus. Led by Reps. Thompson and Kim Schrier, D-WA, the legislation overwhelmingly passed the House of Representatives in December and awaits Senate approval.