Editor’s Note: September Newsletter Operating Instructions

For the second consecutive year, NMPF is devoting its September newsletter to updating members on progress made so far this year on crucial issues for dairy farmers and the cooperatives they own. While August has been a busy month for dairy – as you can see in our article updating the latest developments – Washington tends to take a slower pace in late summer because of the annual congressional recess. That makes Labor Day week a great chance to take stock of what’s been accomplished so far, before the hectic calendar of autumn takes hold and additional developments gather in speed and frequency, with a farm bill looming, critical legislation yet to pass and the Federal Milk Marketing Order process moving forward.

Here’s how to proceed: Start with the update, then work through this team-by-team update of NMPF’s work so far in 2023. We hope you find this account of challenges met so far this year to be useful. We look forward to more in the upcoming months. Thank you, again, for this opportunity to serve.

NMPF’s Bjerga on FMMO Hearing Progress

 

NMPF Senior Vice President of Communications Alan Bjerga discussed progress so far at USDA’s Federal Milk Marketing Order hearing, which began last month, in an interview with RFD-TV. Testimony thus far has focused on proper pricing for milk components, an area in which dairy farmers have made significant headway in the past quarter century.

CWT Assists with 388,000 Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted three offers of export assistance from CWT that helped them capture sales contracts for 388,000 pounds (176 MT) of American-type cheese. The product is going to customers in Asia and will be delivered from September 2023 through February 2024.

CWT-assisted member cooperative year-to-date export sales total 33.9 million pounds of American-type cheeses, 809,000 pounds of butter (82% milkfat), 26,000 pounds of anhydrous milkfat, 31.5 million pounds of whole milk powder and 6.2 million pounds of cream cheese. The products are going to 25 countries in five regions. These sales are the equivalent of 610.5 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.

###

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’s Galen Discusses Federal Order Hearing, WOTUS Updates

Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses the second week of USDA’s national hearing on Federal Order modernization, which focused on updating the milk composition formula. NMPF witnesses this week included member cooperative staff experts and dairy farmers, who effectively discussed the need to have the FMMO pricing formula reflect the rise in milkfat and solids over the past two decades. Galen also discussed EPA and the Army Corps of Engineers’ revised definition of the “waters of the U.S.”, which conforms to a recent Supreme Court ruling.


 

As Hearing Moves Forward, Dairy’s Path is Becoming Clearer

USDA’s Federal Milk Marketing Order (FMMO) hearing is well underway, and thus far its progress is much as expected. With NMPF’s proposed modernization plan serving as its bedrock, the topics under discussion very much reflect the areas we identified as key areas of improvement to FMMOs. At the same time, cross-examination and counter-proposals from other parties have been thorough, and at times, off-base.

Unsurprisingly, those questions and perspectives reflect the vested interests of the questioners, with changes often presented as zero-sum games in which the questioner’s ideas and opinions just-so-happen to benefit its bottom line. Our position at NMPF is a little different. We recognize that any proposal USDA puts up to a producer vote will need to meet a balance of interests, as admittedly, some regions, sizes or business models may benefit more than others depending on the issue. That’s a simple fact of reality in the world of policy progress. In that sense, we’re not always arguing specifically for the benefit of one party – we’re defending the consensus we’ve crafted that provides the greatest benefit to the industry as a whole, dairy farmers, processors, and consumers alike, because that’s the only approach that will bring the lasting improvements for the entire dairy industry.

This is why we at NMPF can’t help but smile a bit when we hear someone bring up an idea that we considered – and discarded – as far back as two years ago, when we began holding more than 200 meetings among farmers, cooperative analysts and industry-leading economists that generated our comprehensive improvement plan. We’ve literally been there and done that. But interested parties must have their say, and differing proposals can be brought before USDA – and in fact, they should be, so as to serve the important interests of transparency and continued consensus.

This is where all those meetings, and the thorough preparation our cooperative-led team has made for this generational opportunity for improvement, reaps dividends. We’ve faced tough questions. We’ve developed industry-leading analysis. We’ve even “war-roomed” the hearing process itself, meeting to discuss anticipated critiques of our proposal and preparing authoritative responses. Our approach is exhaustive, but never exhausting, because we’ve always kept our eyes focused on the ultimate goal of a modernized, fairer, more robust system of milk pricing for dairy farmers. And with each step toward that goal, we feel we’re only gaining more momentum – one that in the end will benefit everyone, even those who, at this moment, are offering alternatives aimed at simply boosting their narrower self-interests.

Leadership isn’t easy. As this is being published, we still have several weeks of proposals to wade through, after which further discussion and USDA consideration begins. But thus far we’re gratified that our leadership on this issue has taken dairy thus far. We set out to modernize the system. We worked with USDA, which decided it was time to examine that modernization. Now we’re explaining and justifying our proposals, with dairy’s brightest and most articulate analysts, economists and farmers testifying to the value of what we painstakingly crafted and impressing upon all of agriculture just how seriously we’ve taken this mission. We look forward to showing why our comprehensive proposal – the unanimous choice of dairy cooperatives that produce more than two-thirds of the nation’s milk — is the best approach for dairy’s future.

This occasion is incredibly important, and we’re rising to it. We look forward to continued progress.


 

Jim Mulhern

President & CEO, NMPF

 

CWT Assists with 1.4 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 17 offers of export assistance from CWT that helped them capture sales contracts for 1.2 million pounds (526 MT) of American-type cheese, 2,000 pounds (1 MT) of anhydrous milkfat, 49,000 pounds (22 MT) of whole milk powder and 150,000 pounds (68 MT) of cream cheese. The product is going to customers in Asia, Antarctica and South America, and will be delivered from August 2023 through January 2024.

CWT-assisted member cooperative year-to-date export sales total 33.5 million pounds of American-type cheeses, 809,000 pounds of butter (82% milkfat), 26,000 pounds of anhydrous milkfat, 31.5 million pounds of whole milk powder and 6.2 million pounds of cream cheese. The products are going to 25 countries in five regions. These sales are the equivalent of 606.9 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.

###

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’s Galen Discusses NMPF’s Federal Order Modernization Efforts

Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses NMPF’s Federal Milk Marketing Order (FMMO) modernization efforts. Dairy experts and government officials are gathered in Carmel, IN, for what’s expected to be five to seven weeks of testimony and discussion of proposals to update and improve the FMMO system, which last saw a major revision in 2000. Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing, including; milk composition; surveyed commodity products; Class III and Class IV formula factors; the Base Class I skim milk price; and Class I and Class II price differentials.


FMMO Hearing Heralds Farmer-Led Progress for Dairy, NMPF Says

The first day of USDA’s once-in-a-generation hearing on federal milk pricing represents a critical moment for dairy’s future, one in which the National Milk Producers Federation intends to lead, President and CEO Jim Mulhern said today.

“Thanks to the tireless efforts of dairy farmers and their cooperatives, this industry is poised for progress as Federal Milk Marketing Order modernization is now in sight,” Mulhern said, as dairy experts and government officials gathered in Carmel, IN, for what’s expected to be five to seven weeks of testimony and discussion of proposals to update and improve the FMMO system, which last saw a major revision in 2000. “NMPF’s comprehensive proposal for improvements to the system forms the basis of this hearing, and through our members’ depth of expertise and unmatched team of dairy farmers and cooperative analysts, we are prepared to advance our industry’s need for these updates.”

Following USDA’s initial presentations, the hearing will then launch into discussions of specific issues placed within the scope of the hearing, including; milk composition; surveyed commodity products; Class III and Class IV formula factors; the Base Class I skim milk price; and Class I and Class II price differentials.

After the hearing’s conclusion, entities involved in the hearing then have a period of time to respond to the testimony, followed by a USDA draft decision, then more discussion, and ultimately a vote among dairy farmers on a final proposal, likely in the second half of 2024.

Because of the hearing’s complexity and the multi-step process of formulating and approving a final plan afterward, Mulhern noted that the hearing itself is far from the culmination of the process. Still, as the centerpiece of milk-pricing efforts, the next few weeks will be the most intense for public discussion of how to create a better milk-price system for dairy farmers – a moment NMPF has spent literally years waiting for.

“Though far from the final word, this national hearing stage is a critical phase that starts a foreseeable timeline for a new system to become real,” Mulhern said. “That’s exciting for our industry. It took a long time, and incredible effort, to get to where we are today. With the leadership I know our member cooperatives will provide, it can only lead to a brighter tomorrow.”

CWT Assists with 1.5 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 16 offers of export assistance from CWT that helped them capture sales contracts for 1.3 million pounds (573 MT) of American-type cheese, 88,000 pounds (40 MT) of whole milk powder and 187,000 pounds (85 MT) of cream cheese. The product is going to customers in Asia and Middle East-North Africa, and will be delivered from August through December 2023.

CWT-assisted member cooperative year-to-date export sales total 32.4 million pounds of American-type cheeses, 809,000 pounds of butter (82% milkfat), 24,000 pounds of anhydrous milkfat, 31.5 million pounds of whole milk powder and 6.1 million pounds of cream cheese. The products are going to 24 countries in five regions. These sales are the equivalent of 594.6 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 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.

###

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.