Dairy Convenes with a Full Policy Agenda

NMPF’s member cooperatives are preparing for our organization’s premier annual event: the Joint Annual Meeting, held in conjunction with the United Dairy Industry Association and the National Dairy Promotion and Research Board. This year’s event is in Phoenix from Oct. 21-23, near one of the country’s most dynamic milk-producing regions. It’s an incredible opportunity to celebrate accomplishments, renew goals and craft strategy for future challenges. As is always the case, NMPF’s farmer and co-op leadership can feel satisfaction with jobs well-done that will position dairy farmers and the entire industry for a positive future.

High on that agenda is Federal Milk Marketing Order Modernization, for which we submitted our final comments earlier this month. USDA’s proposed changes to the FMMO system reflect the principles we laid out in our testimony and earlier comments, principles we arrived at after years of painstaking, methodical work engaging the top minds in in the industry. While we would never pass up an opportunity to suggest improvements (and we didn’t), fundamentally we have no quarrel with USDA and its plan. Barring unexpected, objectionable revisions, we look forward to it being put forward for producer votes expected early next year.

An unheralded part of USDA’s plan is that not only does it propose an update of the current system, it lays out a road map for how to make changes more methodically and easily in the future. There’s a balance between making change too easy, which could destabilize a system, and making it so difficult that it’s intimidating and costly to even attempt. Considering that the last major changes to the FMMO system came in 2000, it’s clear that, to date, the latter scenario has prevailed. That shouldn’t be the case; along with this modernization, future necessary modernization should be simpler. Achieving that is another win for farmers that will create a fairer, more responsive FMMO.

We’ll also be talking a lot about exciting changes to the Cooperatives Working Together program, which for more than two decades has helped U.S. dairy producers and cooperatives further America’s growing share of growing global dairy exports. We emphatically believe this program, updated and fully funded, will blaze a new chapter for U.S. global leadership in dairy exports.

FMMO and CWT alone would be enough to get everyone in Phoenix excited – but there’s much more. We’ll be discussing our industry’s prudent response to the still ongoing H5N1 virus outbreak in dairy cattle, which, after intense concern in the spring, is still with us. We continue to be both a resource and an advocate for dairy farmers on this critical issue. We also are marking this year’s implementation of new FARM program standards, serving up agricultural-sector-leading improvements.

On the policy front, we’ll be talking about our advocacy for the next farm bill and beyond, with important legislative vehicles such as the Innovative Feed Act offering potential pathways for greater dairy prosperity. We also can’t forget about the Whole Milk for Healthy Kids Act, which overwhelmingly passed the House of Representatives last year — we won’t rest until it’s approved – or the Dairy PRIDE Act, which, slowly but surely, continues to grow in congressional support.

And no meeting would be complete with our cheese contest, which in recent years has added yogurt, and this year butter, as a category. If the nation’s finest cheese, butter and yogurt, can’t get you to register, then nothing will.

There are also challenges ahead. Regardless of which political alignment comes out on top this election season, tax changes enacted in 2017 come up for renewal in 2025. We need to come out firing on behalf of dairy farmers when that debate occurs. We continue to be concerned about anti-animal-agriculture efforts afoot related to the upcoming Dietary Guidelines for Americans, and we need to make sure we don’t concede an inch in ensuring that dairy’s unparalleled nutrition remains widely recommended and available for all Americans.

It’s a full agenda, but one that inspires to work hard every day to serve our members, who in turn serve consumers in the U.S. and around the world. We’ll have a lot more to say later this month, and even more to do after that. We always welcome the tasks.


Gregg Doud

President & CEO, NMPF

 

How the World Dairy Expo Shows NMPF’s Breadth

Alan Bjerga, NMPF Executive Vice President of Communications, discusses how NMPF’s strong presence at the World Dairy Expo shows the breadth of the organization’s service to its members in an interview with WEKZ, Janesville, WI. NMPF-affiliated offerings include a panel on Federal Milk Marketing Order modernization, a seminar on succession planning, a look at women’s leadership in dairy and H5N1 biosecurity management on dairy farms. The National Dairy FARM Program will also be out in full force, Bjerga noted.

NMPF’s Rice Updates Dairy Radio Now Listeners on New Export Challenges

NMPF’s Director of Trade Policy Tony Rice tells Dairy Radio Now listeners how NMPF is working to prevent a loss of milk powder exports to Colombia, which is taking unjustified steps to raise tariffs on U.S. products. Rice also provides an outlook of the potential impact on the dairy sector if a threatened labor strike materializes next week in Eastern and Southern ports.

Dairy Diversity Ready to Grow

It might sound crazy to think that a product that’s already in 94 percent of U.S. households has room to grow, but the numbers indicate it’s true. Here’s what we’re talking about:

This comes from a study done by the International Food Information Council, supported by NMPF and the International Dairy Foods Association, on consumption habits among diverse U.S. populations. What’s striking is that, even though self-reported lactose intolerance among non-White populations runs at roughly 30 percent (according to the same study), clear majorities among Black, Hispanic and Asian/Pacific Islander populations haven’t even tried milk that addresses that intolerance, forgoing an option that provides 13 essential nutrients. And presumably, some of those non-milk drinkers are in that 6 percent who don’t have it in their refrigerators.

(And conversely, some of that 94 percent must include lactose-intolerant consumers. Are they taking lactase pills to aid in digestion? Are other household members the milk drinkers? There’s still much to know.)

The point is this: At a time when the committee drafting recommendations for the next Dietary Guidelines for Americans is looking at nutrition science and contemplating recommendations that are appropriate to the lived experiences of a wide range of Americans, it’s important to meet people where they are. For the overwhelming majority of them, that means a place where they have milk in the fridge. Those who aren’t there are in a place where awareness of the numerous ways to benefit from dairy nutrition, regardless of lactose tolerance, isn’t what it needs to be.

That suggests a need to double down on offering dairy’s benefits in a way that’s tailored to the needs of individual communities. It means listening to communities that value dairy and wish it could be offered more readily, in more accessible forms. It means serving that 94 percent of households with milk — and using the tools available to raise that percentage. It emphatically does not mean de-emphasizing dairy as a critical nutritional option for all Americans — or even worse, suggesting it be replaced by sources that aren’t nutritionally equivalent.

NMPF has a call to action that dairy advocates can use to help get this message across. Public health, and the best public health guidance, is important to all Americans. And dairy is ready to provide high-quality nutrition that’s affordable and accessible to all.

 

U.S. Dairy Calls for Swift Government Action as Colombia Moves to Impose Unjust Tariffs

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today expressed their strong disappointment with a preliminary ruling by Colombia’s government that unfairly targets U.S. dairy exporters by advancing baseless claims that U.S. milk powder was unduly subsidized. The groups called on U.S. trade officials to take immediate action to challenge Colombia’s unjust decision and defend American dairy farmers and exporters.

Based on the announcement by Colombia, the preliminary findings call for an additional 4.86% tariff to be implemented on U.S. milk powder exports.

USDEC and NMPF have been working closely with allies in Colombia as well as their members to demonstrate that no U.S. milk powder going to Colombia is subsidized and that Colombia’s dairy sector challenges are due to a variety of other factors. Even the Colombian government acknowledged that there are “many elements that currently affect the Colombian dairy sector”.

“It’s extremely unfortunate that the Colombian government has chosen to use these politically motivated allegations to impose protectionist trade barriers, which will ultimately not only harm U.S. exporters, but Colombian companies and workers who rely on U.S. dairy products and ingredients,” said Krysta Harden, president and CEO of USDEC. “The U.S. government must act promptly and forcefully to send a message that these sorts of tactics will not be tolerated.”

“Today’s preliminary findings show yet again that the current Colombian government does not respect its trade commitments,” said Gregg Doud, president and CEO of NMPF. “Instead of working with the U.S. government and dairy industry to resolve this issue in a mutually beneficial way, Colombia has instead chosen to move forward with this meritless investigation. The U.S. government must use every tool at its disposal to counter the unwarranted tariffs on U.S. milk powder.”

Colombia proceeded with the preliminary imposition of new tariffs on U.S. milk powder exports without evidence of damage caused by those products on its producers or any indication that government support to U.S. dairy farmers resulted in lower U.S. milk powder prices. The action follows a similar case Colombia initiated against U.S. ethanol exports, along with unwarranted import bans on U.S. poultry and beef exports.

The next steps in the investigation include the collection of further evidence by the Colombian government and a public hearing to consider arguments in the case near the end of the evidentiary period. The preliminary tariff will be in effect for four months as the investigation moves forward. A final determination to impose tariffs could be maintained for up to five years prior to review.

Dairy Radio Now Listeners Learn of House Hearing Examining FDA Labeling Failure

NMPF’s Executive Vice President Paul Bleiberg explains for Dairy Radio Now listeners why the House of Representatives held a hearing this week to examine how the Food and Drug Administration is focusing its resources. Bleiberg said Deputy FDA Commissioner Jim Jones faced scrutiny from lawmakers about the agency’s failure to enforce standards of identity for the labeling of plant-based dairy imitators, a point NMPF has been raising for years.

Lactose Misinformation is Intolerable

Dairy’s opponents have a new bad-faith argument — that because of lactose intolerance, dairy is inappropriate for diverse communities. It’s a bogus case, but it seems to be seeping into public policy discussion. Before regretful decisions start to be made to the detriment of public health, let’s make it clear: Dairy is a socially inclusive, equitable solution that can benefit all communities.

By the standards of contemporary misinformation, it’s easy to see how lactose-intolerance arguments have gained traction. They include a fact — that some populations have difficulty digesting lactose, a natural sugar found most commonly in milk — and turn it into a myth: that because of this intolerance, dairy should be de-emphasized as a source of nutrition.

But what suits the need of an activist group that may or may not be focused on nutrition doesn’t suit the public interest. A closer look at what dairy provides, and how it can be provided in a way that respects people’s lived dietary experiences and nutritional needs, shows just how misguided, and potentially damaging, an anti-dairy message cloaked in equity rhetoric can be.

A few points to ponder:

  • Dairy is an important source of 13 essential nutrients, including three of the four identified as of public health concern among Americans in the 2020 Dietary Guidelines for Americans. Overall, 89 percent of Americans under-consume dairy, according to that guidelines committee’s report.
  • Dairy beverage substitutes, such as plant-based beverages, are not nutritionally equivalent to dairy and are in fact inferior in significant ways. Even fortified soy drinks, currently recommended as a substitute for dairy under the U.S. dietary guidelines, are chemically dissimilar and may interact with human bodies differently.
  • At the same time, a lactose-free substitute for traditional milk is available that offers true nutritional equivalence. That substitute is called… lactose-free milk, and it solves tolerance issues for most people. It’s hard to imagine a more equitable nutritional solution than giving everyone the same beverage, tailored to their needs — unless, of course, you’re either misinformed or not truly concerned about equity.
  • Beyond milk, lactose is far from predominant in dairy products, giving lactose-intolerant consumers even more options. Butter, for example, has only trace amounts of lactose. Yogurt has much less lactose than milk, and many varieties of cheese, including Cheddar, Colby, Monterey Jack, mozzarella and Swiss, are also low-lactose. Kefir, a thicker, creamier beverage, is lower-lactose than milk, and includes probiotics that help with lactose digestion. These options provide abundant nutrition within healthy dietary patterns, even for many who experience varying levels of lactose intolerance. Here is a helpful guide to lactose in dairy and how to consume dairy with confidence.
  • Awareness of lactose-free options is low in diverse populations, which shows a need for education, not deprivation. According to research done last year by the International Food and Information Council, more than half of members of U.S. racial and ethnic minority groups have never tried lactose-free milk, despite having higher reported percentages of lactose intolerance than White Americans.
  • With increasing sales and newer production practices, the traditional price premium between traditional and lactose-free milk is showing signs of fading, with store brands now offering lactose-free milk.

Nutrition science is challenging, and nutrition policy even more so, as different interest groups try to mold eating habits in ways that sometimes are meant to achieve goals other than effective nutrition. In the end, federal food policy is meant to help people nourish themselves — and for the highest quality nourishment, dairy still provides an unparalleled package, for everyone.

It’s a fact: A healthy, rich-in-dairy diet can be low in lactose or lactose-free. Be wary of arguments that are truth-free instead.

 

 

U.S. defends dairy in Colombia

Jaime Castaneda HeadshotBy Jaime Castaneda, Executive Vice President, National Milk Producers Federation 

NMPF and the U.S. Dairy Export Council (USDEC) are working to preserve market access for American dairy exports to Colombia following the Colombian government’s abrupt July 5 decision to initiate a politically driven “subsidies and countervailing measures” investigation into milk powder imports form the United States.

The move has little to do with U.S. milk and everything to do with Colombia’s domestic politics. In an effort to reverse slipping popularity with voters, the Colombian government has decided to misuse trade tools usually reserved for private industry to counter legitimate damage from “dumped” product sold at below market rates. In contrast to this, Colombia’s government has instead launched this case on its own, alleging that U.S. milk powder exports from 2020 to 2023 were unduly subsidized by U.S. government programs and damaged Colombian dairy producers. Unfortunately, due to the investigation’s political nature, the Colombian government could impose tariffs on imported U.S. milk powder products as early as September 16. That would be certain to stifle trade to the market.

NMPF and USDEC have been working with U.S. exporting cooperatives and companies, legal teams, and the U.S. government to submit a strong, data-driven defense proving that this investigation is without merit.

In their counterarguments, NMPF and USDEC note that the investigation is baseless for many reasons, including:

  1. Product comparison: Imported U.S. milk powder and domestically produced Colombian fluid milk are distinct products with different physical characteristics and end uses, making them non-comparable.
  2. Subsidy misinterpretation: The Colombian government incorrectly assumes that U.S. dairy producer support directly benefits milk powder manufacturers, which is not the case.
  3. Lack of causal link: U.S. milk powder imports haven’t caused any damage to the Colombian dairy industry. Evidence simply doesn’t exist.

Because of the political nature of this investigation, a fair result is not guaranteed, which means that U.S. government intervention may be necessary. NMPF and USDEC are urging U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack to use all available tools to respond forcefully should Colombia impose tariffs on U.S. milk powder imports despite the lack of evidence meriting such a result.

Congress is also paying attention. A letter sent by the bipartisan leads of the U.S. House of Representative’s Agricultural Trade Caucus to the Colombian Ambassador to the United States highlights the U.S. dairy industry’s long-standing commitment to work with its Colombian counterparts and encouraged the two industries to work together to strengthen the dairy sectors in both countries instead of pursuing meritless investigations.

Colombia’s investigation will play out over months, starting with preliminary results and potential provisional measures as early as September 16, followed by a public hearing and additional comment periods.

At stake is $70 million in annual U.S. milk powder exports to Colombia.

While not a trivial amount by any means, this investigation could also set a dangerous precedent for like-minded governments to imitate. Over the past several years, protectionist sentiments have grown around the world, and Latin America is no exception. The region has become a battleground in the effort to preserve existing trade opportunities, flaring up from Peru and Ecuador to Brazil and Mexico.

While cooperating with the investigation, NMPF and USDEC continue to engage with policymakers and allied organizations to seek a positive conclusion. Regardless of which way this investigation turns out, it’s important for the United States to respond forcefully and let its trading partners know that such maneuvers will not be tolerated.


This column originally appeared in Hoard’s Dairyman Intel on Sept. 5, 2024.