NMPF’S Galen Discusses DMC Signup, Impact of Government Shutdown on Farm Bill

NMPF’s Senior Vice President Chris Galen explains to Dairy Radio Now listeners the importance of using the Dairy Margin Coverage program, now that signup for 2024 is open until April 29.  He also predicts what will happen with a looming government shutdown, and how that could impact prospects for the next Farm Bill.

U.S. Dairy Backs American Ag Negotiators at WTO Ministerial

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are backing efforts by U.S. negotiators to advance an agriculture work plan and oppose trade distorting proposals at the World Trade Organization (WTO) ministerial (MC13). NMPF and USDEC representatives are on the ground in Abu Dhabi, supporting and advising U.S. trade negotiators on agricultural priorities during the ongoing negotiations.

As with prior ministerials, there is the concern that a small group of countries will attempt to extract concessions on one issue by withholding support on other broadly supported provisions. While it is evident that most countries do not want the WTO to take a step backward, a select few members are leveraging unrelated issues to advance proposals that would expand agricultural trade distorting measures like public stockholding. USDEC and NMPF strongly support the U.S. government’s leadership in standing firm against any attempts to weaken trade disciplines.

“We should not allow one country to dictate the outcome of the negotiations in agriculture for concessions on other unrelated issues,” said Gregg Doud, president and CEO of NMPF. “We are privileged to have strong negotiators in Abu Dhabi who are defending against attempts to introduce additional trade distorting elements in the WTO. NMPF supports a holistic work plan on agriculture that includes an equal commitment to increasing market access and limiting domestic support.”

“The WTO is an important organization that has served its members well. We need to protect its important function in governing a rules-based trading system while also pursuing needed reforms, particularly to improve the dispute settlement mechanism,” said Krysta Harden, president and CEO of USDEC. “USDEC commends the U.S. negotiating team for their strong stance to defend U.S. interests and we encourage them to stand firm against any tradeoffs between agriculture and other sectors. We are also encouraged that WTO negotiations are highlighting the important role that trade has in addressing sustainability concerns, particularly given the U.S. dairy industry’s leadership in growing sustainable production and feeding the world.”

The WTO provides a rules-based trading system that provides stability and predictability for U.S. dairy exporters. The system includes provisions that reduce trade barriers and a dispute settlement mechanism for holding member countries accountable to their obligations, allowing U.S. dairy products to compete globally on a level playing field. MC13 provides a forum for members to deliberate reforms to the WTO framework.

CWT Assists with 1.2 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted five offers of export assistance from CWT that helped them capture sales contracts for 1.1 million pounds (490 MT) of American-type cheese and 112,000 pounds (50 MT) of anhydrous milkfat. The product is going to customers in Asia, Central America, the Caribbean and Middle East-North Africa, and will be delivered from March through June 2024.

CWT-assisted member cooperative year-to-date export sales total 20.1 million pounds of American-type cheeses, 112,000 pounds of anhydrous milkfat, 7.1 million pounds of whole milk powder and 1.3 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 251.4 million pounds of milk on a milkfat basis. Over the last 12 months, CWT assisted sales are the equivalent of 933.8 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 US 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 dairy farmers’ milk prices and margins.

 

Raw Milk Doesn’t Define Dairy

The activist claims are unfounded. The proposed laws endanger public health. And raw milk does not define dairy.

Much like the anti-vaccination movement (with whom it shares many advocates), raw milk proponents make various claims that may seem at least somewhat plausible but fall apart on closer scrutiny. The arguments, and the suspect reasoning behind them, have popped up in state legislatures for years, and for the most part they may not seem to require that much scrutiny – until someone gets sick, which happens all too often.

But with new laws being considered in more states, the tiny niche of raw milk has the potential to disrupt the dairy industry far beyond its actual market. Long touted by its devotees as superior to pasteurized milk and the key to saving dairy farms, in practice it undoes generations of public health success that has won consumer trust and made commercially sold milk one of the safest products available.

To cite the science: Raw milk does not contain more or superior nutrition to pasteurized milk. Raw milk’s record on gut health shows how greater harm works against any perceived benefits. Raw milk does not “cure” lactose intolerance. And so on, and so on.

What raw milk does do is contain pathogens that make people sick. The current patchwork of local regulations has proven why raw milk is a public health threat: Places where raw milk sales are available to the public see much greater milk-related illness outbreaks than places where such sales are prohibited. That’s why pasteurization was invented in the first place – not as a conspiracy against consumers or farmers, but as a public health measure that has saved thousands of lives over  generations.

Those are just a few of the reasons why the Centers for Disease Control and Prevention and the Food and Drug Administration support raw milk restrictions. As with routine vaccinations, in which a decline has led to deadly, and absolutely unnecessary, illness outbreaks, pasteurization has been so effective, for so long, that many people no longer remember how  this technology improved lives in the first place.

Another popular raw-milk argument is that what consenting adults choose to buy and sell is their own business. With all due respect to absolutist libertarians, the world doesn’t work that way, as every consumer-safety regulation in the universe attests. The world especially doesn’t work that way when a product bought by consenting adults is then given to children. The vaccination comparison holds: Even though personal-conscience and religious belief exemptions exist, good luck enrolling children in a public school without a polio vaccine. There’s a reason for that. Ask your grandparents.

Another argument in raw milk’s favor is that it will “save the farm.” It’s certainly possible that revenues from small-scale sales may help a dairy farm here and there. But it’s even more certain that foodborne outbreaks that weaken consumer confidence in milk (and unfortunately, many consumers won’t distinguish between raw and pasteurized milk when hearing a radio news report on a highway) harm the tens of thousands of dairy farmers who sell in the commercial marketplace.

Dairy farmers have spent generations building a reputation for safety and quality. No “alternative” testing protocol will ensure the same level of safety as decades of experience with pasteurization, and no assurance that raw milk sellers will do the right thing and ensure safety on their own will take the place of a surefire technology that is universally applied.

So, to any state legislator who is contemplating loosening restrictions on raw milk sales: The National Milk Producers Federation, the largest organization of dairy farmers in the United States, representing small, medium and large farms, more than 95 percent of them family-owned and operated, in every region of the country, stands opposed to the legislation you are considering. It’s bad for families, it’s bad for farmers, and it’s based on bad science.

The suspect evidence and faulty reasoning has gone on long enough. It needs to stop.

NMPF Urges DMC Signup as USDA Announces Enrollment

Statement from NMPF President & CEO Gregg Doud:

“Dairy farmers are pleased to finally have the certainty of knowing when the Dairy Margin Coverage (DMC) program signup is beginning, and NMPF urges every dairy farmer to strongly consider signing up. DMC itself is improved from the previous farm bill, thanks to the permanent incorporation of updated production histories in the program, and recent low producer margins underscore just how critical DMC is for dairy farms of all sizes. We thank Congress for making this important change and are grateful for USDA’s work in rolling out this updated program for farmers.

“NMPF is eager to assist producers in any way they can with this program. We also look forward to working to ensure that farmers receive what they need even more – a new farm bill that provides certainty for the next several years, and not just 2024.”

USDA announced today that the 2024 Dairy Margin Coverage sign-up will open Feb. 28 and run through April 29. For more NMPF resources related to the DMC program and other federally backed risk management programs, visit here.

CWT Assists with 3.3 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 11 offers of export assistance from CWT that helped them capture sales contracts for 2.6 million pounds (1,170 MT) of American-type cheese, 218,000 pounds (100 MT) of whole milk powder and 487,000 pounds (220 MT) of cream cheese. The product is going to customers in Asia, Central America, the Caribbean, Middle East-North Africa and Oceania, and will be delivered from February through June 2024.

CWT-assisted member cooperative year-to-date export sales total 19.1 million pounds of American-type cheeses, 7.1 million pounds of whole milk powder and 1.3 million pounds of cream cheese. The products are going to 15 countries in five regions. These sales are the equivalent of 238.4 million pounds of milk on a milkfat basis. Over the last 12 months, CWT assisted sales are the equivalent of 925.7 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 US 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 dairy farmers’ milk prices and margins.

NMPF’s Vitaliano Offers 2024 Dairy Economic Outlook

 

NMPF’s Vice President of Economic Policy Peter Vitaliano provides Dairy Radio Now listeners a look ahead at what farm-level milk prices will do in 2024. Farmers should benefit from lower feed costs, and with milk production expected to remain stagnant again this year, prices should gradually improve.

CWT Assists with 895,000 Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted eight offers of export assistance from CWT that helped them capture sales contracts for 853,000 pounds (390 MT) of American-type cheese and 42,000 pounds (19 MT) of whole milk powder. The product is going to customers in Asia, Central America, the Caribbean and Middle East-North Africa, and will be delivered from February through June 2024.

CWT-assisted member cooperative year-to-date export sales total 16.5 million pounds of American-type cheeses, 6.9 million pounds of whole milk powder and 842,000 pounds of cream cheese. The products are going to 13 countries in four regions. These sales are the equivalent of 209.3 million pounds of milk on a milkfat basis. Over the last 12 months, CWT assisted sales are the equivalent of 914.6 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 US 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 dairy farmers’ milk prices and margins.

 

FMMO’s Next Steps Begin

Its Federal Milk Marketing Order (FMMO) hearing now concluded, USDA is now considering more than 12,000 pages of testimony as it formulates its plan for FMMO modernization. NMPF is still doing what it can to ensure that proposal best reflects the interest of dairy farmers and their cooperatives, two NMPF economists said in a Dairy Defined podcast.

The key to successful modernization is a comprehensive approach that addresses the complexity of federal orders in a way that respects the entire dairy industry while keeping in mind that orders most fundamentally must work for farmers, Dr. Peter Vitaliano, Vice President for Economic Policy and Market Research, and Stephen Cain, Senior Director for Economic Research and Analysis at NMPF. That’s always been the bedrock principle behind NMPF proposals on areas ranging from returning to the “higher-of” Class I mover to updating milk composition factors.

“What separates National Milk’s proposals from processor groups is more of our holistic approach,” Cain said. “You can’t look at the federal order system having not been updated in 20 years and not address all facets of the industry, right? You can’t say in good faith that Class I differentials need to be updated because costs have gone up without also conceding the fact that make allowances need to go up for the same reason. So we took that holistic approach. That is going to help move the industry forward together.”

Cain and Vitaliano also discuss USDA’s decision-making timeline, and why July could be the key moment for FMMO modernization. The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.


NICMA Elects New Officers, Concludes Successful 79th Annual Meeting

The National Ice Cream Mix Association (NICMA), a dairy industry trade organization managed by NMPF and led by its chief science officer, Dr. Jamie Jonker, held its 79th Annual Meeting Jan. 14-17 in Fort Lauderdale.

More than 60 attendees, speakers, and guests enjoyed three days of technical sessions covering topics from food safety, product trends and innovation, employee retention, socially responsible sourcing, regulatory issues, and industry economics. NICMA welcomed Boxes of St. Louis, Inc., and General Films as new Associate Members.