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NMPF’s Bjerga on FMMO Hearing and Dairy Leadership
NMPF Senior Vice President of Communications Alan Bjerga discusses where USDA’s hearing on Federal Milk Marketing Orders stands and outlines the road ahead once the process is complete. Bjerga was interviewed on RFD-TV.
Restrained Supply, Expanding Demand Offer Some Hope for Improved Milk Prices
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.
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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 the dairy farmers’ milk prices and margins.
Version 5 Furthers FARM Animal Care Standards
By Beverly Hampton Pfifer, Senior Director, FARM Animal Care
The National Dairy FARM Program has evolved over the years to become a rigorous on-farm quality assurance program and trusted industry risk mitigation tool that gives the supply chain the confidence it needs to enthusiastically support dairy despite activist pressure and misinformation. Soon-to-come updates to FARM Animal Care are designed to strengthen that assurance, spotlighting dairy farmers’ stewardship of their herds and leadership in best practices.
The return on investment the FARM Program offers dairy comes from the value dairy wholesalers and retailers find in it, proving the great work dairy farmers are doing while identifying those in need of mild to major corrective action. From January 1, 2020, to July 1, 2023, 72% of the U.S. dairy industry was evaluated under FARM Animal Care Version 4. FARM captures farmers’ excellence within cow Animal Care evaluation questions, which illustrate high standards and continuous improvement. Examples include 96% compliance with body condition standards, 94% compliance with locomotion scores, and 94% and above compliance on focus areas of calf care, non-ambulatory animals, euthanasia, and fitness to transport decisions.
These results give the dairy industry verifiable data to elevate supply chain confidence. That’s also why it’s important for program expectations to remain current and relevant. Over the past two and a half years, the FARM Program has worked closely with more than 85 individual farmers serving on governing committees as well as numerous veterinarians, cooperative and processor staff, and animal scientists to review more than 300 comments submitted during a six-week public comment period to ensure that the Animal Care standards are supported by the latest dairy industry science and offer appropriate and useful best management practices for producers on all types of dairies. The resulting Animal Care Version 5 standards, approved by the National Milk Producers Federation (NMPF) board of directors in June, make small refinements that aid in the industry’s commitment to continuous improvement.
Changes captured in FARM Animal Care Version 5, which goes into effect July 1, 2024, include:
Locomotion
Current standard: At least 95% of the lactating herd scores 2 or less on the FARM locomotion scorecard.
Version 5 standard: Maintain the above standard and add that 85% or more of the lactating herd scores 1 or less on the FARM locomotion scorecard.
Pain mitigation for disbudding
Current standard: Pain mitigation for disbudding is provided.
Version 5 standard: Maintain the above standard, but the timeline for correction, if the standard is not met, has been shortened from three years to a maximum of nine months.
Disbudding method
Current standard: *None specified*
Version 5 standard: Calves should be disbudded with caustic paste or cautery.
Colostrum feeding
Current standard: Preweaned calf protocols and practices must demonstrate that preweaned calves are provided sufficient quality and quantity of colostrum or a colostrum replacer within six hours after birth, even if immediately transported off the farm.
Version 5 standard: Maintain the above standard with more clearly defined expectations. Preweaned calf protocols and practices must demonstrate that preweaned calves are provided sufficient quality (such as by visual observation or a colostrometer), and quantity of colostrum or a colostrum replacer (10% of birth weight) or there must be evidence of successful transfer of passive immunity within six hours after birth, even if immediately transported off the farm.
Continuing education
Current standard: There is job-specific continuing education for nonfamily employees with animal care responsibilities in stockmanship/handling, preweaned calf care, nonambulatory animals, euthanasia, and determining animals that are fit for transport.
Version 5 standard: Maintain the above standard, but the timeline for correction if the standard is not met has been shortened from three years to a maximum of nine months.
Euthanasia
Current standard: Euthanasia protocols and practices identify a primary and secondary individual for euthanasia implementation.
New standard in Version 5: Euthanasia protocols and practices demonstrate the method of confirmation of death.
For more details about the National Dairy FARM Program or the upcoming Animal Care Version 5 standards, visit nationaldairyfarm.com.
This column originally appeared in Hoard’s Dairyman Intel on August 21, 2023.
NMPF’s Cain on USDA’s FMMO Hearing
USDA’s Federal Milk Marketing Order modernization hearing begins Wednesday and dairy farmers are eager to be part of the process. National Milk Producers Federation Director of Economic Research and Analysis, Stephen Cain, says there is a lot of ground to cover. “We’ve developed a big package that we think is going to help the U.S. dairy farmer,” Cain told the National Association of Farm Broadcasters.
CWT Assists with 2.7 Million Pounds of Dairy Product Export Sales
ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 27 offers of export assistance from CWT that helped them capture sales contracts for 2.7 million pounds (1,200 MT) of American-type cheese. The product is going to customers in Asia, Middle East-North Africa and Oceania, and will be delivered from August through November 2023.
CWT-assisted member cooperative year-to-date export sales total 31.1 million pounds of American-type cheeses, 809,000 pounds of butter (82% milkfat), 24,000 pounds of anhydrous milkfat, 31.4 million pounds of whole milk powder and 5.9 million pounds of cream cheese. The products are going to 24 countries in five regions. These sales are the equivalent of 580.8 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 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.
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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 the dairy farmers’ milk prices and margins.
NMPF’s Bjerga on Why Milk’s Widening Its Lead Over Plant-Based Beverages
NMPF Senior Vice President of Communications discusses the shifting consumer preference toward milk over plant-based beverages, plus NMPF’s latest efforts toward labeling integrity, on RFD-TV. Consumer data shows consumption of plant-based drinks falling this year, while milk sales are remaining more stable. Meanwhile, NMPF has submitted comments to FDA urging it to enforce its Standard of Identity that clearly state that milk is an animal product.
CWT Assists with Nearly 710,000 Pounds of Dairy Product Export Sales
ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted four offers of export assistance from CWT that helped them capture sales contracts for 710,000 pounds (322 MT) of American-type cheese. The product is going to customers in Asia and Oceania and will be delivered from August through September 2023.
CWT-assisted member cooperative year-to-date export sales total 28.3 million pounds of American-type cheeses, 809,000 pounds of butter (82% milkfat), 24,000 pounds of anhydrous milkfat, 31.4 million pounds of whole milk powder and 5.9 million pounds of cream cheese. The products are going to 24 countries in five regions. These sales are the equivalent of 555.5 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.
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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 the dairy farmers’ milk prices and margins.
The SAVE Act Stands Up for American Dairy
By Tony Rice, Trade Policy Manager, NMPF
Parmesan. Feta. These are among the common cheese names that have been around for generations — and until the past 20 years, were uncontested in their use by U.S. dairy producers selling high-quality, commonly understood varieties in America and the world.
But an aggressive European Union (EU) campaign to use free trade agreement negotiations to confiscate common names through the misuse of geographical indication (GI) rules has seen American producers of cheeses like “parmesan” and “feta” forced in the past decade to withdraw from certain markets and have their products taken from store shelves.
A solution to this problem is making its way through Congress.
The bipartisan Safeguarding American Value-Added Exports (SAVE) Act was introduced in May. The legislation would spur greater action from U.S. administrations to prioritize the protection of common names. The SAVE Act would direct the secretary of agriculture to determine a list of common names frequently subject to GI restrictions around the world and deem restrictions on them by our trading partners an unfair trade practice. Currently, no such list exists, which gives the European Union and other foreign governments a free hand in claiming common names as GIs, despite them long being a part of the public domain.
The bill also directs the U.S. government to proactively negotiate the defense of generic name rights with foreign trade partners through all available avenues. It’s co-sponsored in the Senate by Senators John Thune (R-SD), Tammy Baldwin (D-WI), Roger Marshall (R-KS), and Tina Smith (D-MN). In the House, sponsors include Representatives Dusty Johnson (R-SD), Jim Costa (D-CA), Michelle Fischbach (R-MN), and Jimmy Panetta (D-CA). The congressional leads are likely to try to incorporate the SAVE Act into the upcoming farm bill text.
This effort wouldn’t be taking place without the hard work and advocacy of the dairy community. The Consortium for Common Food Names, in partnership with National Milk Producers Federation and U.S. Dairy Export Council, has been at the forefront of opposing bad-faith GI recognitions that restrict generic terms, including winning a landmark court case in March that preserves free use of “gruyere” in the United States. As important as the defense strategy has been, growing aggressiveness by the EU on GIs and persistent lack of action by previous U.S. administrations has made the Capitol Hill effort necessary.
The benefits of tackling illegitimate GIs would extend up and down the dairy supply chain. Farmers’ and manufacturers’ international markets access would be preserved, consumers would have more choices at the grocery store, and retailers would benefit from the competition of more options and greater sales. Without adequate protection for generic terms, lost export opportunities due to GI misuse and rebranding to alter the name of a product translate to lower demand for fluid milk to make those products.
The SAVE Act is not a silver bullet. The EU will continue to push for illegitimate GIs in markets around the world. But after years of losing ground as American dairy farmers and producers had their rights violated and market opportunities lost, Congress has demonstrated that they are ready to take on this fight. NMPF has a call to action here for dairy advocates who wish to contact their lawmakers to support this important legislation. America’s dairy industry deserves nothing less than a fair playing field to compete in, and the SAVE Act is a key step to securing international market access for U.S. dairy farmers for generations to come.
This column originally appeared in Hoard’s Dairyman Intel on Aug. 3, 2023.
NMPF’s Galen on FDA’s Draft Plant-Based Labeling Guidance
Chris Galen, NMPF’s senior vice president of membership services and strategic initiatives, discusses NMPF’s latest effort to prevent misleading labeling on Dairy Radio Now. While FDA’s draft guidance on plant-based beverages acknowledges the public health concern regarding nutritional confusion, it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology, he says. Galen discusses the comments NMPF submitted to FDA this week that emphasize the importance of transparent product labeling to ensure consumer understanding and informed purchasing decisions.
