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NMPF Eager for Next Steps in Milk Marketing Modernization with USDA “Action Plan”

Posted on by Alan Bjerga

ARLINGTON, VA – The National Milk Producers Federation applauds USDA for today proposing its “Action Plan” to move toward a national hearing based on NMPF’s proposal to modernize the Federal Milk Marketing Orders. The largest representative of U.S. dairy farmers and farmer-owned dairy processors is eager to begin the next phase of creating a federal order system that better reflects today’s market conditions and dairy producer needs.

“We’re gratified that USDA recognizes the comprehensive nature of our proposal and are looking forward to it being considered in full, because the whole of our plan adds up to more than the sum of its individual parts,” said NMPF President and CEO Jim Mulhern. “We will bring the same level of dedication and preparation to this part of the process that we did in drafting our own plan, which included more than 150 meetings and wide consultation across dairy producers and the entire industry.”

NMPF’s Federal Milk Marketing Order proposal, detailed here, offers comprehensive solutions that recognize the needs of today’s dynamic industry. While the complexity of the process will require detailed discussions, the unity seen among dairy producers supporting NMPF’s proposal, which the organization’s Board of Directors approved unanimously, puts adoption on a positive path moving forward, since producers vote for Federal Orders Mulhern said.

Randy Mooney, NMPF chairman and dairy farmer near Rogersville, MO, called the proposal’s strong momentum a testament to the power of dairy farmers, through their cooperatives, to undertake bold initiatives that advance their industry. Farmers will continue to lead as modernization moves forward, Mooney said.

“Dairy producers have proven throughout this process that, with unity and careful attention to each other’s needs, we can achieve impressive things,” he said.  “Dairy’s strength comes from its farms, and producers ready to face challenges and seize opportunities. We’re excited to begin the formal hearing process.”

NMPF Opposes Shortsighted Formula Legislation

Posted on by Alan Bjerga
ARLINGTON, VA – NMPF strongly opposes legislation introduced today by Senators Mike Lee, R-UT, and Bob Menendez, D-NJ, and Representatives Adrian Smith, R-NE, and Don Beyer, D-VA, that would increase U.S. vulnerability to infant formula supply disruptions by increasing U.S. reliance on imported formula and formula inputs. The legislation would unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in job loss and foreign dependence.

“This bill would make American families more reliant on foreign companies for their infant formula supply and puts in place new one-way-street trade conditions that would harm dairy farmers, cooperatives and processors,” said Jim Mulhern, president and CEO of NMPF. “Instead of weakening our domestic infant formula sector and putting American jobs at risk, we ask that Congress work with us to reinforce and expand our domestic production capacity.

“We strongly support two-way dairy trade,” Mulhern said. “That’s why we advocated for passage of existing U.S. free trade agreements and why we’ve been vocal proponents of resuming trade negotiations to expand dairy trade opportunities; but we vehemently object to putting unilateral import expansion on the backs of American dairy farmers.”

This bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. In response to that short-term, unique emergency, NMPF supported the 2022 Formula Act and did not oppose passage of the subsequent 2022 Bulk Infant Formula to Retail Shelves Act, which increased import access at a time of acute need. Both laws rightfully expired at the end of 2022, once U.S. production had recovered to pre-crisis levels.

FDA noted in May 2023 testimony to the House Oversight Committee that formula stocking levels are now higher than those seen prior to last year’s temporary crisis, making the legislation introduced today all the more nonsensical.

“American dairy farmers and dairy cooperatives are committed to ensuring a robust, dependable supply of infant formula for American families,” said Randy Mooney, NMPF chairman and a dairy farmer near Rogersville, MO. “The United States can absolutely more than meet domestic demand, and should in fact be positioning itself as a net-exporter of infant formula. The U.S. dairy industry is a proven leader in providing milk powder, whey, lactose and cheese to consumers all around the world – infant formula should be no different.”

Mulhern said that “the idea that the best way for the United States to secure a dependable supply of infant formula is through foreign companies and an unreliable global supply chain is simply wrong. Congress should focus its efforts instead on better supporting the American companies, workers, and farmers who supply nearly all of this country’s formula and formula ingredient needs. Those steps should include reforms to WIC program procurement; ensuring new domestic formula firms have the support needed to gain market authorization; and negotiating new trade agreements to expand export opportunities for American-made formula and other dairy products.”

FARM provides insights on labor laws

Posted on by Alan Bjerga

Keeping up with changes to state and federal labor laws can be daunting. However, given the tight labor markets, dairy farms must redouble efforts to attract and retain employees.

The National Dairy Farmers Assuring Responsible Management (FARM) Workforce Development program offers free resources. These include state and federal legal fact sheets as well as human resource (HR) and safety templates to help dairy owners and managers increase worker engagement, reduce employee turnover, and manage safety hazards associated with dairy farming.

As part of its programming, FARM Workforce Development hosts quarterly educational webinars for program evaluators — the individuals who conduct on-farm assessments and support farmers with continuous improvement. For this year’s first webinar, Dan Deacon of Conn Maciel Carey LLP highlighted recent and potential upcoming changes to federal labor laws, including independent contractor definitions, overtime and wage rules, and Occupational Safety and Health Administration (OSHA) regulations. While FARM’s on-farm assessment tool does not evaluate legal compliance, understanding the legal and regulatory context is essential for advancing adoption of HR and safety best practices.

The Wage and Hour Division of the Department of Labor issued a proposed update to the Employee vs. Independent Contractor classification in October — restoring the “totality of the circumstances” analysis to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. A final rule would limit when a worker may be properly classified as an independent contractor and may be subject to legal action. The Wage and Hour Division is currently reviewing feedback from their public comment period and will provide next steps in the coming months.

The Wage and Hour Division has also held industry stakeholder listening sessions regarding overtime regulations and indicated it will issue a proposed rule to update the salary exemption threshold this year. It is not clear at this time whether the division is also exploring further updates to overtime regulations.

In January 2023, OSHA issued enforcement memos to field offices and state plans that significantly expand the potential for higher fines issued to employers for safety and health violations. One memo expands the circumstances for instance-by-instance citations, while the other reiterates OSHA’s discretion to limit the grouping of citations. OSHA also initiated a rulemaking in January 2023 for the Worker Walkaround Representative Designation Process, which would allow union representatives to participate in OSHA inspections at non-union workplaces, at the request of employees, and be more involved in the OSHA process. Prior to those actions, in March 2022, OSHA also issued a proposed rule to expand the e-recordkeeping requirements planned to be implemented this year, which would require certain high hazard employers to submit OSHA 300, 301, and 300A data to OSHA on an annual basis.

FARM Workforce Development supports dairy farmers in identifying and implementing HR and safety best practices to enhance safe and thriving work environments. Dairy cooperatives and processors representing 60% of the U.S. milk supply participate in the initiative. More than 400 assessments have been completed across 23 states. Visit FARM’s website for FARM Workforce Development resources, including federal and state legal fact sheets.

CWT Assists with 1.7 Million Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 20 offers of export assistance from CWT that helped them capture sales contracts for 1.2 million pounds (526 MT) of American-type cheese and 562,000 pounds (255 MT) of cream cheese. The product is going to customers in Asia, Central America, the Caribbean and Oceania, and will be delivered from May through September 2023.

CWT-assisted member cooperative year-to-date export sales total 19.7 million pounds of American-type cheeses, 594,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 24.6 million pounds of whole milk powder and 4.1 million pounds of cream cheese. The products are going to 19 countries in five regions. These sales are the equivalent of 407.6 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.

Dairy’s Future Found in New Markets, New Leaders

Posted on by Theresa Sweeney

Dairy’s future will be increasingly global and diverse, as emerging markets increase demand and women take on greater leadership roles in the industry, this year’s chairwoman of the NMPF Young Cooperators program said in a dairy defined podcast.

“The U.S. really had a competitive edge, as far as the quality and safety of the products,” said Lorilee Schultz, who milks 60 registered Holsteins and manages more than 200 acres at Mil-R-Mor Farm in Orangeville, IL, said of her time briefly working with the USDA’s Foreign Agriculture Service. The member of Prairie Farms cooperative is very active in community leadership and has a special interest in teaching kids about agriculture, including interactions with more than 200,000 school children through the Adopt-A-Cow program, a free, years-long virtual experience where students care for a calf and interact with a dairy farmer.

That investment in dairy’s future will also be critical as new leaders emerge through programs such as NMPF’s YCs, which will be in Washington next week for their annual congressional fly-in, she said. Schultz, 38, said one of her messages to lawmakers will be that “If we want to retain the talented young people that we have in our rural communities, we really need to make sure that we’re investing in those communities, making sure we have things like good schools, access to healthcare, quality and affordable childcare.”

And for dairy’s next generation of leadership – especially for women, who are currently under- represented in top industry positions – it’s critical to get involved, Schultz said. “It’s really important to have our voices heard,” she said. “I just want to encourage everybody to know that they can be involved in leadership and make a difference.”

The full podcast is below. You can also find the podcast on Apple Podcasts, Spotify and Google Podcasts. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

CDI’s Vanderham, NMPF’s Bjerga discuss California flooding

Posted on by Alan Bjerga

 

NMPF Board of Directors member Cory Vanderham of California Dairies, Inc., and NMPF Senior Vice President of Communications Alan Bjerga talk about the challenges of California dairy producers and the need for long-term policy solutions on RFD-TV. While record snowpack is replenishing water supplies battered by multi-year drought, it also is bringing chaos to producers who are facing extreme weather conditions that require immediate reaction. For more details on how Vanderham has handled this year’s deluge, check out NMPF’s recent Dairy Defined podcast.

CWT Assists with 1.7 million Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted eight offers of export assistance from CWT that helped them capture sales contracts for 1.6 million pounds (722 MT) of American-type cheese, 55,000 pounds (25 MT) of butter and 44,000 pounds (20 MT) of whole milk powder. The product is going to customers in Asia, Middle East-North Africa, Oceania, and South America, and will be delivered from May through November 2023.

CWT-assisted member cooperative year-to-date export sales total 18.6 million pounds of American-type cheeses, 594,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 24.6 million pounds of whole milk powder and 3.6 million pounds of cream cheese. The products are going to 19 countries in five regions. These sales are the equivalent of 392.6 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.

The World Wants Protein. Dairy Builds on That.

Posted on by Theresa Sweeney

Ah, protein –a building block of life. That refreshing post-exercise recovery drink, that yogurt in a school lunch box, that succulent cut of meat, those humble but mighty dry beans. All rich with exquisite chains of amino acids that repair your cells and make new ones. Without protein, we are nothing. With it, we are human, and resilient.

So it’s no wonder that, as people become wealthier, one of the first things they seek out is protein – both more protein and higher-quality protein. And just as protein is a basic need for life, that may be the basic reason why dairy – coveted for its protein and unparalleled in its quality, has been steadily rising as a share of global protein consumption for the entire 21st century.

From our friends at the NMPF/USDEC Economics Unit:

From just under 11.5 percent of global protein consumption to just over 13 percent today, dairy keep inching upward in serving global protein needs. Combine that with the fact that global population itself is growing, and you have a recipe for profound growth in coming decades. Higher population + higher incomes that help consumers meet their daily nutrition needs and access quality nutrients = rising dairy demand.

And who is supplying that dairy? Increasingly, the United States, which saw record exports in 2020, 2021 and 2022. With world-leading sustainability and productivity, U.S. dairy exports have powerhouse potential for a powerhouse product, providing protein to a world in which demand will only rise.

So if you ever hear anyone doubt the importance of dairy exports, or wonder whether international trade is critical to the industry’s future, just show them this chart and say, “It’s the protein, stupid.” Because protein isn’t going away, and dairy’s only becoming more important to providing it.

Now that’s a block to build on.

Bipartisan Group of Members of Congress Introduce Legislation to Strengthen Common Name Protection in Upcoming Farm Bill

Posted on by Theresa Sweeney

A coalition of American agricultural organizations hail introduction of legislation to proactively establish protections for foods and beverages using common terms in export markets.

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC), Consortium for Common Food Names (CCFN) and allied organizations commend today’s introduction of the Safeguarding American Value-Added Exports (SAVE) Act to promote the protection of common names in the 2023 Farm Bill. Led in the Senate by Sen. John Thune (R-SD), Tammy Baldwin (D-WI), Roger Marshall (R-KS) and Tina Smith (D-MN) and led in the House by Representatives Dusty Johnson (R-SD), Jim Costa (D-CA), Michelle Fischbach (R-MN) and Jimmy Panetta (D-CA), the language would explicitly direct USDA Foreign Agricultural Services (FAS) to work with the U.S. Trade Representative to include the protection of commonly used terms like “parmesan”, “chateau” and “bologna” as a priority in international negotiations. This is the first farm bill effort on common names.

“The lack of strong action by previous administrations has allowed the European Union to misuse and abuse its geographical indications, hurting U.S. exporters in several markets,” said Jaime Castaneda, Executive Director of CCFN. “This new emphasis on protecting common names is a much-needed step in the right direction to ensure that our producers can sell their products in markets around the world.”

The proposed language would amend the Agricultural Trade Act of 1978 to define “common names” and direct the Secretary of Agriculture to coordinate with the U.S. Trade Representative to proactively defend the right to use common names for agricultural commodities or food products in international markets.

“For years, the European Union has been using illegitimate GIs to boost its own producers at the expense of others, putting a tremendous political priority on giving European companies a leg up over producers in the U.S. and other countries,” noted Castaneda. “It is time that our government takes a more proactive approach to tackling this challenge so that we can turn the tide to stand up for food and beverage producers relying on common names.”

  • Many agricultural producers in the United States and around the world depend on common food and beverage terms – such as parmesan, chateau, or bologna – to market and sell their products.
  • Since 2009, the EU has used trade negotiations and intellectual property rules to confiscate common names for their own producers – essentially monopolizing certain products in specific markets.
  • For American farmers and producers, this leads to lost opportunities overseas and expensive fights domestically, in addition to fewer choices for consumers.
  • Recently, there has been significant efforts from the private sector to defend common names, including a favorable U.S. Court of Appeals ruling and actions by congressional champions on Capitol Hill.

CWT Assists with 1.5 Million Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White
ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 11 offers of export assistance from CWT that helped them capture sales contracts for 1.3 million pounds (587 MT) of American-type cheese, 44,000 pounds (20 MT) of butter and 154,000 pounds (70 MT) of cream cheese. The product is going to customers in Asia, Central America, the Caribbean, Middle East-North Africa, Oceania and South America, and will be delivered from May through November 2023.

 

CWT-assisted member cooperative year-to-date export sales total 17.0 million pounds of American-type cheeses, 539,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 24.6 million pounds of whole milk powder and 3.6 million pounds of cream cheese. The products are going to 19 countries in five regions. These sales are the equivalent of 376.3 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 the export and delivery of the product are verified by the 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.