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California Flood Woes Far from Ebbing

Posted on by Theresa Sweeney

A record snowpack that’s far from fully melted, combined with last winter’s record rains, may mean it will be some time before Cory Vanderham, owner of Vanderham West Dairy in Corcoran, CA, will get his 4,500 cows all back to his farm.

In the meantime, he’s relying on leases in other locations, help from friends, and faith, to get through an ongoing disruption to the dairy industry in the nation’s top milk-producing state that creates new challenges every day.

“You don’t realize how strong this community is and how strong ag is until things get wild like this,” said Vanderham, a member of NMPF’s Board of Directors and the California Dairies Inc. cooperative, said in a Dairy Defined podcast released today. “And when it got wild, everybody showed up to help.”

Vanderham also discusses his on-the-ground observations on what kind of policy changes and investments at all levels of government could improve the state’s water management and infrastructure as farmers look toward a more resilient future in the face of weather extremes. 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 below. Please attribute information to NMPF.

NMPF’s Bjerga on Growing Momentum for FMMO Modernization

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga discusses how the support of the American Farm Bureau Federation is a powerful statement of farmer consensus for NMPF’s Federal Milk Marketing Order modernization plan currently before USDA. Bjerga also talks about the industry’s active discussions on fighting misinformation about dairy, in an interview with RFD-TV’s Christina Loren.

A Critical Moment Arrives on the FMMO Scene

Posted on by Alan Bjerga

By Jim Mulhern, President and CEO, NMPF

Jim Mulhern, NMPF President and CEO

The march to milk-pricing modernization reached another milestone this month, as the National Milk Producers Federation (NMPF) submitted to USDA our comprehensive proposal for Federal Milk Marketing Order (FMMO) reform.

After more than 150 meetings over nearly two years, a strong consensus has emerged among producers and our allies for changes that hold benefits for farmers of all sizes, in all regions, and for the broader industry that, together with producers, serves wholesome, nutritious products to consumers 24 hours a day, seven days a week.

A lot of work has gone into this effort. We have examined the program in great detail and came up with a plan that modernizes and updates Federal Milk Marketing Orders so they can work better for today’s dairy industry.

Some key highlights:

  • Returning to the “higher of” Class I mover.
  • Discontinuing the use of barrel cheese in the protein component price formula.
  • Updating milk component factors for protein, other solids, and nonfat solids in the Class III and Class IV skim milk price formulas.
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas.
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years.
  • Extending the current 30-day reporting limit to 45 days on forward-priced sales on nonfat dry milk and dry whey to capture more export sales in the USDA product price reporting.

The first five of these are part of our proposal before USDA. We’re seeking the make-allowance review via the farm bill and the forward-pricing plan through separate federal rulemaking.

The components work together

It’s important to note how much the elements of our proposal rely on one another to succeed. Take the make-allowance, for example. It hasn’t had a meaningful update in 15 years. It’s a key priority of our hearing request, and it’s of intense interest to some. But it still needs to be addressed in a way that benefits all. Handling that issue in isolation would have the effect of reducing milk prices to farmers, a non-starter in a program that’s ultimately supported by a vote from producers.

That’s why we have the make allowance issue in our proposal, but one that’s included along with other necessary updates to milk pricing help economically offset our proposed make allowance adjustment, by bringing pricing formulas up-to-date and minimizing disruption to markets.

Modernizing the Federal Milk Marketing Order system has been due for some time; the pandemic experience, which exposed fault lines in the system, underscored just how necessary this effort has been and created the impetus for change. We’ve been deliberate in our approach because we wanted to make sure that we addressed the concern that Agriculture Secretary Vilsack stated well over a year ago when he said it was important to have consensus within the producer community.

We have achieved that consensus, and we believe we have sent USDA a strong signal — both in the thoroughness of our proposal and our depth of support among producers — that our comprehensive proposal is the proper basis for FMMO hearings and a path toward modernization.

And we’ll need to maintain that consensus throughout the process. As we move forward toward a hearing, we’ll continue listening to any concerns and providing any information that’s helpful for progress. Please don’t hesitate to write to the special address we’re using so that staff can respond to your questions. Thank you for your help and support.

This column originally appeared in Hoard’s Dairyman Intel on May 11, 2023.

New FMMO Will Work Better for Farmers, Mulhern Says

Posted on by Alan Bjerga

 

NMPF President and CEO Jim Mulhern says the industry need a modernized Federal Milk Marketing Order that works better for dairy farmers, in an interview with the National Association of Farm Broadcasters. “We’re really excited that is a plan that will point a way toward a much brighter future for us dairy industry,” Mulhern said.

NMPF’s Mulhern Explains FMMO Modernization

Posted on by Alan Bjerga

NMPF President and CEO Jim Mulhern explains the importance of modernization to the Federal Milk Marketing Order system and the benefits it hold from farmers to consumers in an interview with AgriTalk, a daily national conversation about the latest issues impacting agriculture and rural America. NMPF’s proposal to update the system, which governs milk pricing, is currently before USDA.

 

CWT Assists with 95,000 Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted two offers of export assistance from CWT that helped them capture sales contracts for 51,000 pounds (23 MT) of American-type cheese and 44,000 pounds (20 MT) of whole milk powder. The product is going to customers in South America and Asia, and will be delivered from May through August 2023.

CWT-assisted member cooperative year-to-date export sales total 15.7 million pounds of American-type cheeses, 495,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 24.6 million pounds of whole milk powder and 3.4 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 362.2 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.

Co-ops Lead in Developing Milk-Pricing Consensus

Posted on by Theresa Sweeney

It would seem daunting that the highly diverse dairy community, which ranges from small, 20 cow farms to 20,000+ animal operations using state-of-the-art equipment for everything from housing to enhanced sustainability, would be able to reach a unanimous consensus on a comprehensive proposal to modernize milk pricing, which is both incredibly important and incredibly complicated for each of those farms.

But dairy farmers, as represented by the members of NMPF, have a mechanism that allows the industry to tackle complex issues and work on solutions that can make improvements for all: the cooperative. And after two years and more than 150 meetings on milk marketing orders, that structure again is proving essential to industry progress.

Even after decades of consolidation and increasingly sophisticated operations, the co-op remains the heart and soul of dairy. Cooperatives handle 85 percent of U.S. milk, produced on farms that are 97 percent family owned. By providing technical and risk-management support, economic expertise and most importantly, a guaranteed buyer for a perishable product, co-ops meet dairy needs – including the need to reach agreement on all-encompassing issues such Federal Milk Marketing Order modernization. Working together for mutual self-help is the cooperative spirit. It’s the engine that makes dairy move.

Though not every dairy cooperative is an NMPF member (although they should be, if they want to be engaged in building industry positions on critical issues such as FMMO modernization), the strength of its membership covers two-thirds of the U.S. milk supply –which enables us to solidly speak for dairy farmers in federal policy debates. That’s why NMPF became the natural place to craft an FMMO modernization proposal. Top economists and analysts from member cooperatives talked with the farmer-leaders of NMPF co-ops nationwide, arriving at solutions to thorny problems that respected the interests of all and, in total, achieves mutual benefits.

The result is the plan NMPF submitted to USDA last week. That’s how things should be done – and that’s how things will continue to be done as the Agriculture Department considers the plan and, assuming successful consideration, a federal order hearing takes place.

Not every dairy farmer is a co-op member, of course, and the industry includes other parts of the supply chain that have an interest in FMMO issues. That’s obvious, and the farmer-led plan NMPF has submitted wouldn’t have been as well-considered – and certainly not as likely to succeed – without the input and support from stakeholders across dairy.

But in the end, the vehicle driving the first major FMMO update in nearly a quarter-century is the farmer-owned cooperative. Co-ops are where the ideas come from, and where the initiative to realize those ideas come from as well. As the federal-order process continues, each will be important to success. Fortunately, supplies of both are ample.

NMPF’s Bjerga Discusses Benefits of Milk-Price Modernization

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communication discusses how the Federal Milk Marketing Order Modernization plan the organization submitted to USDA this week would create a firmer foundation for the U.S. dairy industry, with farmers being paid a price that better reflects the quality of their milk and sharing their price risk more equitably with processors. Ultimately, once needed updates are fully in place, everyone will benefit from milk that’s valued appropriately across the industry, he said. Bjerga speaks with Mike Pearson on the Agriculture of America podcast.

West Brings Finance Expertise to Staff

Posted on by Theresa Sweeney

NMPF’s newest staff member, David West, has joined the organization as its Vice President of Finance and Administration for the Federation and its related organizations.

In that role, West is responsible for overseeing all finance and accounting, human resources, information technology, contract management, and other administrative matters. He also serves as the advisor to the senior leadership team on financial planning, reporting, budgeting, and operations and ensures organizational legal and regulatory compliance. In carrying out these responsibilities, David supervises a team of in-house administrative personnel and outsourced accounting, human resources, and legal services professionals.

Prior to joining NMPF, David served as the Director of Finance and Administration at George Washington’s Mount Vernon, a non-profit with 650 employees that generates $70 million in revenue and $200 million in investments. During his tenure, he led the organization’s efforts, in budgeting, finance, compliance, payroll, and system administration. Before that, David worked in public accounting at Tate & Tryon, where he oversaw non-profit financial preparation for a variety of non-profit organizations.

A native of Northern Virginia, David resides in Springfield, VA and is a graduate of High Point University in North Carolina.

April CWT-Assisted Dairy Export Sales Totaled 10.7 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 38 contracts in April, adding 3 million pounds of American-type cheeses, 55,000 pounds of butter, 6.7 million pounds of whole milk powder, 2,000 pounds of anhydrous milkfat and 522,000 pounds of cream cheese to CWT-assisted sales in 2023. In milk equivalent, this is equal to 85.6 million pounds of milk on a milkfat basis. These products will go to customers in Oceania, South America, Asia, Central America and the Caribbean, and will be shipped from April through October 2023.

CWT-assisted 2023 dairy product sales contracts year-to-date total 15.6 million pounds of American-type cheese, 495,000 pounds of butter, 3.4 million pounds of cream cheese, 2,000 pounds of anhydrous milkfat and 24.5 million pounds of whole milk powder. This brings the total milk equivalent for the year to 361.4 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.