Incoming NMPF President & CEO Gregg Doud explains NMPF’s role in Washington policy formulation and dairy farmer priorities, including a new farm bill, Federal Milk Marketing Order modernization, integrity in plant-based labeling and dietary guidelines that maximize the benefits of dairy, in an interview with RFD-TV. He also emphasized the importance of international trade and global issues to U.S. dairy’s future. “We need to look five, 10 years ahead and see what this industry needs,” he said.
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Lights, camera … Bjerga! Live from the Dairy Experience
NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga takes viewers on a tour of the Dairy Experience at this week’s Joint Annual Meeting in Orlando, FL. From information booths to ice cream, this year’s event brought together a diverse dairy community, showing farmer unity and industry pride during a time of transition at NMPF.
NMPF’s Chairman Mooney Spotlights Dairy Leadership
The dairy sector has benefited from strong leadership, as farmers work together to meet today’s challenges, National Milk Producers Federation Chairman Randy Mooney said in a Dairy Defined podcast.
A new farm bill, a national hearing on modernizing the Federal Milk Marketing Order system, and ongoing challenges in sustainability and risk management have challenged dairy farmers, Mooney said in the podcast, taken from his remarks at the organization’s annual meeting in Orlando on Tuesday. Farmers have responded with their trademark resilience, uniting to advance their industry, he said.
“This year we came together as an industry to unite around a number of issues that helped build that resiliency. Together we worked to make every drop count, every meeting, count every call, every email, every handshake,” he said.
The full podcast is here. You can also find the podcast on Apple Podcasts and Google Podcasts. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.
NMPF’s Mulhern Reflects on Policy, Legacy
NMPF President & CEO Jim Mulhern, who is retiring at the end of this year after a decade at the helm of the organization, discusses dairy’s current policy challenges in an interview with RFD-TV. “A lot of this focus of the farm bill for us is in the bucket of either economic risk management issues, conservation issues, trade issues, and nutrition,” he said. “I would say the biggest challenge for the future is to lean in, to take on the challenges that we all see out there and look for workable solutions.”
Dairy’s Long-Term Outlook Bright, Doud, NMPF Economists Say
The future of U.S. dairy farming is bright as global growth and American capacity for innovation and production combine to create a powerhouse, the National Milk Producers Federation’s (NMPF) incoming president and CEO and the organization’s economists highlighted in presentations at NMPF’s annual meeting in Orlando, FL.
“In terms of the world of protein, dairy is a huge part of the future,” said Gregg Doud, who will take over NMPF’s reins on Jan. 1, in remarks at the meeting, held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. Doud, a former chief agricultural trade negotiator for the Office of the U.S. Trade Representative, said opportunities are there for U.S. dairy’s taking with robust outreach and appeals to consumers worldwide.
“My message to you today is very simple,” he said. “Let’s go. Let’s get it in gear.”
Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. In a panel of NMPF economists following Doud’s remarks, forecasts showed an improving price outlook next year, even as inflation continues to pose challenges for consumers.
“We see a road to recovery in 2024,” said Will Loux, head of the joint economics unit serving NMPF and the U.S. Dairy Export Council. “Things aren’t all roses, we still have really significant headwinds on the demand side both here at home and abroad, but we look at the world with a lot of optimism still, especially in the long run.”
The joint annual meeting concludes today.
NMPF’s Mooney Highlights Dairy’s Persistent Strength at Annual Meeting
National Milk Producers Federation (NMPF) Chairman Randy Mooney commended U.S. dairy farmers for their persistence in supporting positive change for their industry at the organization’s annual meeting in Orlando, noting that challenges are nothing new to producers and that their unity has brought progress in encouraging better federal farm policy.
“We’re nourishing families around the world through milk’s unbeatable nutritional value,” said Mooney in remarks at the meeting, which is held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. “I’ve dairied for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO.
Dairy producers in the past year have faced operating margins at their lowest since the federal dairy safety net was adopted in its current structure in 2014 as prices plummeted from record highs. Meanwhile, the U.S. farm bill has expired, and dairy farmers are seeking a fairer milk pricing system through a USDA-led Federal Milk Marketing Order (FMMO) hearing, which began in August and will resume Nov. 27 after a temporary pause.
Following Mooney onstage was NMPF President and CEO Jim Mulhern, who is retiring at the end of this year after leading the organization for a decade. In his remarks, Mulhern reflected on the challenges dairy farmers have met and how they will meet the challenges to come.
“I’ve tried to remain true to what I see as the hallmark of the dairy community: people who work hard, approach things with common sense, care passionately about the product they produce,” Mulhern said. “You all strive to do the right thing. And I can tell you, looking over the course of my career, those are qualities that can take you a very long way.”
Also at the meeting, NMPF’s Board of Directors approved the organization’s policy positions and elected new members. New directors elected to the Board of Directors and approved by NMPF delegates include Brad Bateman of Dairy Farmers of America and Rick Burkhamer of Foremost Farms. Burkhamer, who farms near Richland Center, WI, was also named to NMPF’s Executive Committee.
Along with adopting official federal policy positions, NMPF’s membership also raised funds for the organization’s college research scholarships and held its annual cheese and dairy product contest in conjunction with the meeting.
The Chairman’s Award for the NMPF Cheese and Yogurt Contest went to Prairie Farms Dairy for its Cave Aged Rinded Swiss, produced in Faribault, MN. Ellsworth Cooperative Creamery won the Chairman’s Reserve Award for its Pepperoni with Marinara Rub produced in Menomonie, WI. This year’s contest included 252 entries from 14 participating NMPF co-ops, a total of 3,350 pounds (1.52 metric tons) of cheese and yogurt.
NMPF’s official portion of the meeting concludes tomorrow. Highlights include a dairy economics forecast by NMPF staff; awards in the organization’s annual dairy contest; and an address by incoming President and CEO Gregg Doud, who takes over from Mulhern Jan. 1.
CWT Assists with 231,000 Pounds of Dairy Product Export Sales
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Dairy is a staple in spite of inflation
By Allison Wilton, Coordinator, Economic Policy and Global Analysis, NMPF
U.S. dairy consumption has been steadily rising for years, reaching more than 11.5 million metric tons (milk solids equivalent) in 2022. This is up 15% from ten years ago. As one of the highest dairy consuming countries in the world, U.S. per capita consumption of cheese, yogurt, and butter has grown steadily for years. Recent food trends are bringing fun and innovative twists on common dairy products; as examples, butter boards went viral last year as a new “charcuterie” option, and health influencers are raving about the benefits of adding cottage cheese into recipes for higher protein and healthy fats. Ultimately, dairy demand remains resilient even when facing significant headwinds.Dairy’s resiliency is true on a global basis, too. On average, 13% of the global consumer’s protein came from dairy in 2022, a rise compared to 2021 and a significant leap over the past decade. In fact, global dairy protein consumption has grown by nearly 25% over the last decade.
Still, despite that resiliency, inflation and economic uncertainty have affected consumers and the dairy industry.
Inflation had mixed effects
In 2022, consumers started to really take notice of rising grocery and food costs. Prices for goods across all categories, not just dairy, were starting to climb more than usual due to several factors, including the ongoing COVID-19 pandemic and international supply chain disruptions. Inflation reached a peak in summer of 2022, and though it has eased slightly since, prices are still significantly higher compared to three years ago.
Source: NMPF-USDEC, IRI, NPD
Grocery and food items were some of the most prevalent and hardest hit areas by inflation, and dairy products were not immune. The price of dairy in food and beverage stores rose by more than 15% in 2022 compared to 2021, the highest jump in prices of all categories. The value of dairy sales grew significantly in 2022. Even so, and although this can partially be attributed to the higher prices, the growth in dairy sales (up 14.7%) outpaced that of non-dairy categories (8.3% greater).
Additionally, though all categories’ volume fell, the volume of dairy products sold fell less than that of non-dairy products. In other words: even though dairy had higher inflation rates, the slide in volume sold was less than the dip of other food and beverage categories. Shoppers were continuing to put dairy products in their cart despite the higher prices. That’s a testament to the dairy’s place as a dietary staple for many around the country and the world.
Dairy demand persists
Consumers prefer dairy products over plant-based alternatives: sales of cheese, frozen products, and other dairy goods dwarf plant-based imitations in stores. As even more alternatives fill shelves, dairy doesn’t lose shelf space. Rather, per capita consumption in several areas have grown, including cheese (up 17% from 2020), yogurt (up 5%), and butter (up 21%). The dairy aisle remains of top value when compared to other aisles within major food and beverage stores and is one of the fastest growing aisles in terms of sales dollars, topping $75 billion in 2022.
Cheese is expected to grow only more popular as time goes on, as is butter and yogurt. The U.S. dairy industry is poised to meet this demand as the industry advances in the coming years. As inflation wanes, consumers may return to trying higher value dairy products, of which there is no shortage. U.S. dairy will continue to be a major part of consumers’ diets and shopping carts.
This column originally appeared in Hoard’s Dairyman Intel on Nov. 9, 2023.
Preview of Upcoming NMPF 2023 Annual Meeting in Orlando
NMPF’s senior vice president Chris Galen discusses the upcoming 2023 NMPF annual meeting starting Nov. 12 in Florida.
October CWT-Assisted Dairy Export Sales Totaled 6.6 Million Pounds
CWT member cooperatives secured 63 contracts in October, adding 5.4 million pounds of American-type cheeses, 844,000 pounds of cream cheese and 388,000 pounds of whole milk powder to CWT-assisted sales in 2023. In milk equivalent, this is equal to almost 59 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa, South America and Oceania, and will be shipped from October 2023 through April 2024.
CWT-assisted 2023 dairy product sales contracts year-to-date total 41.7 million pounds of American-type cheese, 908,000 pounds of butter, 26,000 pounds of anhydrous milkfat, 7.8 million pounds of cream cheese and 39 million pounds of whole milk powder. This brings the total milk equivalent for the year to 751.6 million pounds on a milkfat basis.
Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.
The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.
NMPF Submits Dietary Guidance Statement Comments Pushing for Clarity
NMPF strongly objected to FDA’s discussion of plant-based milk and yogurt alternatives in the agency’s draft guidance ,“Questions and Answers About Dietary Guidance Statements in Food Labeling: Draft Guidance for Industry” published by the Food and Drug Administration (FDA) in comments submitted Sept. 25.
Dietary guidance statements can be used on food labels to provide consumers with information about foods or food groups that can contribute to a nutritious dietary pattern to help consumers make healthier choices. NMPF’s comments supported the use of consensus statements from authoritative bodies as the basis for dietary guidance statements but requested clarification on food group equivalents. NMPF also questioned FDA’s approach to plant-based milk and yogurt alternatives, saying it will encourage false and misleading advertising — which FDA has already acknowledged as an issue in their draft guidance for the labeling of plant-based milk alternatives.
“Despite the agency’s instructions to use consensus statements from authoritative bodies in developing guidance statements, FDA appears to violate its own principle by describing a means by which plant-based alternatives other than fortified soy could make dietary guidance statements based on consensus statements about the dairy group,” NMPF wrote in its comments.
NMPF’s comments on the proposed guidance for dietary statements is one small part of the organization’s broader campaign against the mainstreaming of plant-based beverages as legitimate dairy alternatives, an issue FDA itself has acknowledged is a public health threat. Other efforts include our campaign for a stricter version of FDA’s draft guidance on plant-based beverage labeling, multiple letters to the agency, and a Freedom of Information Act request on agency communications regarding plant-based beverages.
ABI Approves of USDA’s Proposed Butter Testing Changes at Fall Meeting
The American Butter Institute’s (ABI) Board of Directors reviewed and approved a USDA proposal to allow for greater industry participation in butter testing at its fall conference in Phoenix, Oct. 5-6.
ABI, an industry group managed by NMPF, worked with NMPF regulatory staff to respond to an August proposal from USDA’s Agricultural Marketing Service (AMS) that would allow butterfat tests to be performed at an in-house or approved third party laboratory, and add a requirement for plants to maintain and make such records available for examination by a USDA inspector. ABI’s response supported the amendment as a means of increasing butter processing efficiency that conforms to current industry practice. ABI’s members also sought further clarification from USDA about which tests will be reviewed, suggesting that only finished product tests should be considered.
ABI’s letter to USDA, signed by NMPF Chief Counsel Clay Detlefsen, who also works for ABI under the management arrangement, also proposed that butter manufacturers take the lead in performing grading services in their own facilities, following the procedures set forth by USDA. Under this new approach — also discussed at the fall conference by ABI’s board — USDA could then audit those records to ensure manufacturer compliance with USDA grading procedures and allow the finished goods to use the USDA grade shield.
ABI will continue to speak with USDA about how to shift more grading practices to member companies’ facilities.
