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National Milk Producers Federation Statement on USDA BSE Announcement

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From Jerry Kozak, President and CEO of NMPF

America’s dairy farmers are encouraged that the on-going surveillance and inspections performed by federal authorities continue to ensure that bovine spongiform encephalopathy (BSE), or mad cow disease, does not enter the U.S. food supply.

The U.S. Department of Agriculture (USDA) announced Tuesday that a BSE-infected animal was detected in California, in a dairy cow that was presented at a rendering plant. Three previous cases of BSE have been discovered in the U.S. in the past nine years.

Although details about the age and origins of the animal are being withheld pending further investigation, NMPF offered the following points about the issue:

  • Milk and dairy products do not contain or transmit BSE, and animals do not transmit the disease through cattle-to-human contact. The infectious prions that transmit BSE are found in neurological tissues, such as brains and spinal cords.
  • The United States put regulations in place in 1997 to prohibit ruminant protein from being used in animal feed. This applies to all cattle, dairy and beef alike.
  • Non-ambulatory animals – those that cannot walk – are not allowed to be processed at facilities where meat animals are handled. This regulation helps ensure that animals that are unwell are not entered into the food supply.

For more background on BSE and the dairy sector, visit the NMPF website.

The USDA also has an FAQ on BSE on its website.

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.

NMPF Welcomes Inclusion of Dairy Policy Reforms in Senate Agriculture Committee Farm Bill Draft

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ARLINGTON, VA – The draft farm bill language released this afternoon by the Senate Agriculture Committee includes the key components of the Foundation for the Future dairy policy reform developed by National Milk Producers Federation (NMPF) nearly two years ago. The dairy legislation begins at Section 1401 (page 68) in Title 1 – Subtitle D and goes through Section 1481 (page 111).

In preparation for an Agriculture Committee markup next week, Committee Chairwoman Sen. Debbie Stabenow (D-MI), along with Ranking Member Sen. Pat Roberts (R-KS), released the provisions Friday of the entire farm bill, including the dairy legislative language.

“The primary elements of NMPF’s comprehensive dairy reform package are included in this legislative draft, for which we are grateful,” said Jerry Kozak, President and CEO of NMPF. “The bill reflects the best-possible outcome for America’s dairy farmer community, which is in great need of a better federal safety net than what we have now.” The package of reforms is also supported by many other state and national farm groups.

“We look forward to working with Sens. Stabenow, Roberts, and the other committee members in building support in the Senate for this legislation.”

The Senate farm bill draft contains the major elements of the Dairy Security Act (DSA), introduced last autumn in the House by Reps. Collin Peterson (D-MN) and Mike Simpson (R-ID), and included in Sen. Richard Lugar’s (R-IN) farm bill plan. The core of the DSA is a margin insurance program that protects farmers from dire economic conditions caused by either low milk prices or high feed costs. The margin insurance program replaces existing dairy programs, including the MILC and Dairy Product Price Support programs. Farmers will have the option of signing up for the margin insurance program; if they choose to do so, they will then be enrolled in the Market Stabilization program through which they will be asked to manage their milk output when worst-case conditions appear.

“We believe the approach the Senate Agriculture Committee is taking will generate broad, bipartisan support for the farm bill. This bill allows dairy farmers to better manage their risks, in a deliberate approach that offers a superior safety net, reduces government involvement in our industry, and positions our entire industry to compete in a global marketplace. It saves money compared to existing programs, and will be affordable and convenient for farmers to use. Critically, it treats all farmers equally, and doesn’t produce regional or size-based outcomes that are inherently discriminatory.”

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.

NMPF Statement in Response to Allegations by the Cheese Importers Association of America

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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.

Farm Bill Process Heats Up with Action Expected Soon in Senate

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The Senate Agriculture Committee is expected to vote on a new Farm Bill later this month, and NMPF is ramping up its efforts to ensure that the provisions of the Dairy Security Act are included in the Senate legislation under consideration.

NMPF has continued to highlight the importance of making dramatic changes in dairy policy, both on Capitol Hill, and across the country. National Milk member farmers have published a series of editorial columns this year in key states such as California, New York, Pennsylvania,Wisconsin, Minnesota, New Mexico and Texas, calling on Congress to enact the Dairy Security Act.

In addition, at its spring meeting last month, the NMPF Board of Directors passed a resolution urging Congress to create a new Farm Bill in 2012, one that contains an improved safety net in the form of the Dairy Security Act. The resolution “made it clear that National Milk 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,” said Jerry Kozak, President and CEO.

Both the House and Senate Agriculture committees have held their own series of hearings on Farm Bill issues. The House has one more field hearing to conduct on April 20th in Dodge City, Kansas. However, the Senate ag panel is expected to move first to draft a farm bill, as early as the week of April 16th.

Farmers can email their Senators to support the Dairy Security Act by using NMPF’s Dairy GREAT grassroots system.

 

NMPF Assumes Management of REAL® Seal for Dairy Products

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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.

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.”

 

CWT Assisted Exports Mount, Offset Milk Production Growth

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March was another busy month for the Cooperatives Working Together (CWT) Export Assistance program. CWT received 78 requests for assistance from member cooperatives, and agreed to provide assistance on 72 of the requests: 42 for cheese totaling 10.9 million pounds, and 30 for butter totaling 10.3 million pounds.

The CWT-assisted exports in March bring the product totals for 2012 to 37.8 million pounds of cheese and 33.3 million pounds of butter sold by member cooperatives to customers in 19 countries on four continents. On a milk equivalent butterfat basis, these exports equal 1.075 billion pounds. That is equal to nearly 60 percent of the increase in milk production for the first two months of the year.

 

Historic Free Trade Agreement Takes Effect; U.S.-Korea FTA Now in Force

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NMPF joined the U.S. Dairy Export Council (USDEC) last month in welcoming the launch of the Korea-U.S. Free Trade Agreement (KORUS), the most economically significant U.S. free trade agreement (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 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.

“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.

Details on the terms of KORUS can be found on the website of the U.S. Foreign Agriculture Service. Further information specific to cheese and whey products can also be found online.

 

Application Deadline Approaching for 2012 Scholarship Program

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NMPF will continue accepting applications for its National Dairy Leadership Scholarship Program until Friday, May 4. Any graduate student (enrolled in Master’s or Ph.D. programs) actively pursuing research of direct benefit to milk marketing cooperatives and dairy producers is encouraged to apply. (Applicants do not need to be members of NMPF to qualify).

Scholarship recipients will be selected by NMPF’s Board of Directors in June and notified soon afterwards. The top scholarship applicant will be awarded the Hintz Memorial Scholarship, which was created in 2005 in honor of the late Cass-Clay Creamery Board Chairman Murray Hintz who was instrumental in establishing NMPF’s scholarship program.

Recommended fields of study include but are not limited to Agriculture Communications and Journalism, Animal Health, Animal and/or Human Nutrition, Bovine Genetics, Dairy Products Processing, Dairy Science, Economics, Environmental Science, Food Science, Food Safety, Herd Management, and Marketing and Price Analysis. Applications received after Friday, May 4 will not be eligible for consideration. For an application or more information, please visit the NMPF website or call the NMPF office at 703-243-6111.

 

Social Media Campaign to Highlight Versatility, Value of Butter to Consumers

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Butter marketers will use a variety of social media tools in 2012 to better connect their product with consumers, as word-of-mouth marketing assumes a greater degree of importance in the dairy category.

The centerpiece of the campaign will be a new blog, “Go Bold With Butter,” which will serve as a virtual kitchen where consumers can interact with a team of butter enthusiasts who will tout the value and versatility of butter.

Nine dedicated bloggers were recruited to generate content for the blog, including recipes, photos, and videos. Each will offer a unique perspective on the best way to create satisfying food experiences centered on butter. A GoBoldWithButter Facebook page andTwitter profile have also been established to complement blog activity. The Facebook page and Twitter profile will share general “GoBoldWithButter” messaging, recipes and content, and help drive traffic back to the Real Butter blog, especially for seasonal cooking themes. The campaign will also use a Pinterest page, as that social media site is rapidly growing in popularity among users that this campaign is targeting.

“The preparation and enjoyment of food is one area of life where people’s experiences and expectations are very personal, and social media tools are perfect to help amplify those feelings,” said Mark Korsmeyer, President of the American Butter Institute (ABI). “Butter marketers will greatly benefit from this new campaign, because it will create real connections among butter enthusiasts, while helping to educate a new generation about why butter is best for cooking and baking.”

Each of the nine blog contributors brings a different style and perspective, but they are all passionate about creating memorable dishes to share with their friends and families.

The promotion of the blog and its digital companions is largely driven by online advertising. This includes targeted online and Facebook ad executions to fulfill advertising support of the Go Bold With Butter blog with a seasonal emphasis. The Butterisbest.com website will be updated five times throughout the course of the campaign corresponding with seasonal messaging for the GoBoldWithButter campaign. The Butter is Best e-newsletter will also be updated to correspond with the new campaign and distributed quarterly.

Irv Holmes, Chair of ABI’s Marketing Committee, said: “At a time when we’re witnessing new trends in cuisine – an emphasis on simplicity and authenticity, coupled with a curiosity about bold new flavors – we need to help connect those who have a do-it-yourself ethic with our products. Go Bold With Butter, leveraged across a variety of social media platforms, is a new type of marketing to help engage these consumers.”

Go Bold With Butter is presented by America’s Dairy Farmers® in partnership with the Wisconsin Milk Marketing Board.

 

NMPF Report Features Organization’s Achievements from Past Year

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Last month, NMPF released its 2011 Activities and Accomplishments Report, which recounts the organization’s various achievements throughout the past year. The new report highlights important issues ranging from economic policy, government relations, food safety, nutrition, animal health, and standards and labeling. It also highlights activities of the NMPF membership, featuring the board of directors, member cooperatives, and Young Cooperators. The report is available on the NMPF website.

 

NMPF Statement in Response to Allegations by the Cheese Importers Association of America

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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.

No More Games of Kick the Can

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March temperatures may be warming up across most of the country, but in Washington, things are cooling down. This isn’t a weather report; it’s a blunt assessment of the pace of action on Capitol Hill.

It’s a well-documented fact that the legislative process, which normally moves about as fast as a turtle, is slower still in election years. And this year is no exception. If anything, expectations in 2012 for any substantive action are even lower, given the partisan gridlock affecting both chambers of Congress.

That’s why the National Milk Producers Federation Board of Directors made a strong statement earlier this month when it adopted a resolution urging Congress to pass a Farm Bill this year.

The resolution, passed unanimously 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. I’ve spent a great deal of time in the past two years, in this space and in other forums, talking about why a better safety net is needed for dairy farmers. So I won’t belabor the point that the status quo is not an option.

But what some may not understand is that even if all that Congress has the energy to do is enact a simple, one-year extension of the current Farm Bill, getting that done is no small feat. There are more than three dozen programs in the current legislation that will have no funding baseline after Sept. 30, 2012. What that means is that even if they are extended for another year, new money will have to be found – somehow, somewhere – to continue paying for them. The status quo for another 12 months is not the financial and political slam dunk that some may assume.

Thus, our message to the House and Senate leadership, as well as to the White House, is that if hard choices need to be made this summer, why not make them in pursuit of something big, and not something small? What’s the point in buying just a little extra time, only to return to town in 2013 facing the same challenges – and in all likelihood, even harsher ones, given the shaky state of the federal budget?

It appears Congress is already putting off hard decisions until after the November elections on the really big headache issues pertaining to tax rates, spending cuts, and the overall effort to reduce the cavernous budget deficit. Whoever comes to Washington in 2013, either as a freshman or a returning incumbent, will have his or her plate full with tough, unenviable choices.

Unfortunately, delaying until tomorrow what should be decided today has become the standard operating procedure for many elected officials, in municipalities and state capitols, as well as in Washington. When there are few good options, a game of duck and delay is better than the alternative of angering a variety of constituencies. But inaction has harmful consequences of its own.

This year for dairy farmers – at least in the first few months of it – is shaping up to be a time in which having a margin insurance program and a market stabilization mechanism would have been very useful. Some of the hard-earned equity that farmers have clawed back after 2009 is at risk yet again because of the downturn in milk prices, and uptick in feed costs. A better approach is needed, sooner rather than later.

Perhaps members of Congress will prefer to kick the proverbial can down the road and postpone any action on farm policy until 2013, but dairy farmers can’t afford to play that game.