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NMPF Submits Milk-Pricing Plan to USDA, Moving FMMO Modernization Forward

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) today submitted to USDA its comprehensive proposal for modernizing the Federal Milk Marketing Order (FMMO) system, the product of two years of examination and more than 150 meetings held to build consensus behind updates to a program that last saw significant changes in 2000.

“Dairy farmers and their cooperatives need a modernized Federal Milk Marketing Order system that works better for producers,” said NMPF President and CEO Jim Mulhern. “By updating the pricing formulas to better reflect the value of the high-quality products made from farmers’ milk, by rebalancing pricing risks that have shifted unfairly onto farmers, and by creating a pathway to better reflect processing costs going forward, we are excited to submit this plan as a path toward a brighter future for dairy.”

Upon official acceptance, USDA will have 30 days to review the plan and decide whether and how to move forward with a federal order hearing to review the plan. Highlights include:

  • Updating dairy product manufacturing allowances (the “make allowance”) contained in the USDA milk price formulas;
  • Discontinuing the use of barrel cheese in the protein component price formula;
  • Returning to the “higher of” Class I mover;
  • Updating milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas; and
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.

NMPF will pursue two other components of its Federal Order proposal, approved unanimously by the organization’s Board of Directors in March, outside of the federal-order hearing process, as they don’t involve changing federal order regulations. The recommendations, which remain essential parts of NMPF’s modernization plan, are:

  • Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting, which can be implemented through federal rulemaking; and
  • Developing legislative language for the farm bill to ensure the make allowance is regularly reviewed by directing USDA to conduct mandatory plant-cost studies every two years.

Mulhern urged USDA to grant a hearing on the entire NMPF proposal, noting how the effectiveness of some components are dependent on the inclusion of others. Mulhern also thanked other organizations that have helped NMPF forge necessary producer consensus by sharing views and insights throughout the process, saying that spirit of unity and good-faith discussion will help FMMO modernization move forward more quickly.

“From state and regional dairy associations to the American Farm Bureau Federation, dairy farmers have had many allies and friends throughout this process,” Mulhern said. “As Secretary Vilsack has stated, consensus is necessary to successful modernization. We have that producer consensus, and we look forward to working together toward adoption and implementation of our plan.”

CWT Assists with 8.2 Million Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 15 offers of export assistance from CWT that helped them capture sales contracts for 783,000 pounds (355 MT) of American-type cheese, 55,000 pounds (25 MT) of butter, 6.6 million pounds (3,000 MT) of whole milk powder and 714,000 pounds (324 MT) of cream cheese. The product is going to customers in Asia and South America and will be delivered from May through September 2023.

CWT-assisted member cooperative year-to-date export sales total 15.6 million pounds of American-type cheeses, 495,000 pounds of butter (82% milk fat), 2,000 pounds of anhydrous milkfat, 24.5 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 361.4 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.

U.S. Trade Representative Highlights Importance of Common Names Protection in Intellectual Property Report

Posted on by Theresa Sweeney

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) expressed their appreciation today for the U.S. Trade Representative’s (USTR) prioritization of the protection of common names in this year’s Special 301 Report. The organizations urged USTR to swiftly move forward with more assertive steps to preserve export access for food producers relying on common food and beverage terms.

Published annually, the report outlines global challenges related to intellectual property, which includes continued and escalating efforts from the European Union to abuse and misuse geographical indications (GI) to confiscate generic terms – such as “parmesan” or “bologna” – for its own producers.  This year’s report reflects several of the main areas of concern that CCFN detailed in comments submitted in January, with support from NMPF and USDEC.

“As USTR’s report clearly lays out, the EU’s aggressive common name confiscation campaign presents a significant threat to producers and exporters in the U.S. and elsewhere,” said Jaime Castaneda, executive director of CCFN. “Looking forward, it’s urgent that the Administration use its full suite of tools to protect the market access rights of producers using common food and beverage names.”

Restricting the right of producers to use common names is far more than just a labeling issue – it strips companies of the right to market products using the names that consumers know and love, takes products off shelves, and hurts workers up and down the supply chain.

“For far too long, the EU has abused GIs to erect trade barriers that prevent U.S. dairy from competing on a more level global playing field,” commented Jim Mulhern, president and CEO of NMPF. “The U.S. government has ample opportunities – including through existing bilateral trade engagement forums and upcoming trade negotiations – to fight back. We’ll be urging and supporting those efforts on behalf of American dairy farmers.”

“The U.S. dairy industry relies on exports to succeed, so when foreign government ban or restrict the use of common cheese names, it impacts companies, family farms, workers and the industry at large,” explained Krysta Harden, president and CEO of USDEC. “American-made dairy can compete with any products in the world. We thank USTR for acknowledging what a sizable problem this is for American producers and call on the Administration to stand up to unfair trade barriers so that our industry can go toe to toe with global competitors.”

CWT Assists with 1.9 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 1.9 million pounds (844 MT) of American-type cheese. The product is going to customers in Asia and Oceania, and will be delivered from May through August 2023.

CWT-assisted member cooperative year-to-date export sales total 14.8 million pounds of American-type cheeses, 440,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 17.9 million pounds of whole milk powder and 2.7 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 299.0 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.

 

Co-ops Build Farm Sustainability, Maryland-Virginia’s Reames Says

Posted on by Theresa Sweeney

With Earth Day tomorrow placing a spotlight on environmental stewardship, dairy cooperatives are a critical link in ensuring dairy-farmer leadership in meeting ambitious sustainability goals, said Lindsay Reames, executive vice president of sustainability and external relations for Maryland and Virginia Milk Producers Cooperative Association.

“Sustainability does have a number of different meanings, and I think the most important thing that we can do as a dairy co-op is understand what it means on each of our individual farms,” said Reames in a Dairy Defined Podcast released today. “The way we approach sustainability with our member owners is by finding ways where we can add value to their operation and improve the environmental outcomes from their farm.

“So, any investments that we make through our partnerships and through our sustainability programs have to align with that farm’s business model to bring them real value back to their operation. And we found that a number of new technologies, best management practices not only improve the environmental outputs on that operation, but also improve the overall economic wellbeing of the farm, which is a really important component of sustainability.”

The full podcast is here. 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.

U.S. Dairy Announces New Collaboration to Lead on Climate

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) announced today the signing of a set of principles and a new partnership with the National Agricultural Organizations (FARM) from Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia and Colombia to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate and trade.

Far too often, global convenings and climate proposals reflect ideologies at the expense of science, ignore progress that the industry has made in reducing emissions, and try to impose one-size-fits-all approaches on an industry they do not fully understand.

In collaboration with the National Agriculture Organizations (FARM), and the Pan-American Dairy Federation (FEPALE), USDEC and NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers.

To launch this important strategic collaboration, USDEC, NMPF, FARM and FEPALE co-hosted a seminar on April 19 and 20, 2023, on “The Road to Sustainability in Livestock Production in the Americas,” bringing together influential leaders from across the livestock sectors of the MERCOSUR and South America region. Attendees heard from global experts and discussed ways to reduce the livestock sector’s greenhouse gas emissions while remaining viable for the next generation of farmers.

Both the partnership and meeting are being organized with an eye toward the UN Food Systems Summit Stocktaking Moment and COP28, where the organizations will play a role in shaping the discussion around agriculture’s role in a sustainable future.

Resources Available for California Farms Affected by Flooding

Posted on by Theresa Sweeney

After the driest three years on record, California dairy producers are reeling from storms that have displaced families and cattle, damaged farms and feed supplies, and severely impacted crops being grown to feed the state’s 1.7 million dairy cows. California dairy farmers are now bracing for more flooding as temperatures rise and this year’s historic Sierra snowpack thaws.

Federal, state and local officials are working to repair damaged canals, levees and roads while preparing flood barriers and limiting reservoir water levels to leave room for melting snow. However, overflowing water continues to impact the nation’s top-producing dairy region, and farmers’ full losses have yet to be realized.

NMPF is working with affected members, federal agencies and Congress to mobilize meaningful, timely support for California dairy farmers and secure funding and support for critical water infrastructure and storage in the future.

Preparation and Response

The resources below outline how dairies can best prepare for and respond to a flooding emergency. For immediate help, producers should contact local emergency management officials or dial 2-1-1. California dairy farmers are urged to keep in close contact with their county agriculture commissioners when dealing with losses and problems on the farm as they are the best local resource for agriculture-related information and are tasked with collecting data for USDA disaster assistance.

Recovery

USDA is offering technical and financial assistance to help California dairy farmers recover. Affected producers should contact their local USDA Service Center to report losses and learn more about program options available to assist in their recovery from crop, land, infrastructure and livestock losses and damages. Applicable programs include:

  • Emergency Conservation Program: The Emergency Conservation Program (ECP) helps farmers repair damage to farmlands caused by natural disasters and put in place methods for water conservation during severe drought. The ECP does this through funding and technical assistance. (Application deadline: Oct. 13)
  • Emergency Farm Loans: Farm Service Agency emergency loans help producers who suffer qualifying farm related losses directly caused by the disaster in a county declared or designated as a primary disaster or quarantine area. Also, farmers located in counties contiguous to the declared or designated area may qualify for loans. (Application deadline: Within eight months of disaster declaration)
  • Livestock Indemnity Program: The Livestock Indemnity Program (LIP) provides benefits to livestock producers for livestock deaths in excess of normal mortality caused by adverse weather or by attacks by animals reintroduced into the wild by the Federal Government. LIP payments are equal to 75 percent of the average fair market value of the livestock. (Application deadline: File of Loss must be filed within 30 days of event or when loss becomes apparent)
  • Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program: The Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP) provides financial assistance to eligible producers of livestock for losses due to certain adverse weather events or loss conditions. Assistance can cover loss of grazing land and stored feed losses. (Application deadline: File of Loss must be filed within 30 days of event or when loss becomes apparent)
  • Environmental Quality Incentives Program: While not designed to be an emergency response program the Environmental Quality Incentives Program (EQIP) can play a vital role in assisting producers recovering from natural disasters. Through EQIP, USDA’s National Resources Conservation Service provides financial assistance to repair and prevent excessive soil erosion caused or impacted by natural disasters.

Click here to navigate USDA’s Disaster Assistance Discovery Tool. The discovery tool walks producers through five questions to help them identify personalized results of what USDA disaster assistance programs may meet their needs.

Additional federal relief is available in counties that have been declared major disaster areas. Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. Visit FEMA.org for more information.

Contact Us

Please contact Theresa Sweeney-Murphy at tsweeney@nmpf.org with any questions and for more information.

NCIMS Collaborates on Grade A Milk Safety

Posted on by Alan Bjerga

By Miquela Hanselman, Regulatory Affairs Manager, NMPF

The 2023 National Conference on Interstate Milk Shipments (NCIMS) was held in Indianapolis from April 3 to 7. The gathering once again highlighted the successful collaboration between the U.S. Public Health Service (USPHS)/Food and Drug Administration (FDA), state regulators, and dairy industry representatives in an ongoing effort to promote and protect a safe supply of Grade A milk and milk products.

Since it began in 1950, the conference serves as a model program of stakeholder cooperation. It brings together all affected parties to develop and maintain an effective and efficient system of regulating the interstate shipment of milk and milk products to ensure the safest milk supply possible.

The conference is held biannually to update the Grade A Pasteurized Milk Ordinance (PMO). The PMO, of course, regulates the interstate shipment of milk and milk products, outlining the standards for Grade A raw milk for pasteurization, ultra-pasteurization, aseptic processing and packaging, retort processed after packaging or fermented high-acid, shelf-stable processing, and packaging. The PMO affects every dairy farmer in the United States.

Prior to the NCIMS conference, proposals are submitted to update the PMO. Those proposals are then discussed and voted on at the conference by committees, councils, and finally state delegates. From there, FDA has the choice to concur or nonconcur. The 2023 conference featured more than 400 attendees — the most in its history — after taking a four-year hiatus due to the COVID-19 pandemic. FDA, state regulators, and industry representatives submitted 72 proposals for the conference. Those proposals touched on everything from water testing to the addition of kefir to determining how to handle yogurt parfaits. Below is an overview of three proposals NMPF believes are significant for dairy farmers:

Proposal 207, submitted by the National Milk Producers Federation, would require a 48-hour notice prior to on-farm inspection. Reasons for this include the risks to human health following the COVID-19 pandemic, the farm’s biosecurity, and overall personnel safety. The proposal was amended at the conference and passed through the delegates to be assigned to a standing or ad-hoc committee to review specific sections of the PMO that reference on-farm biosecurity. Summary thoughts: This is an important first step in recognizing the importance of biosecurity measures on dairy farms and will hopefully lead to further discussion of inspection notices.

Proposal 218, submitted by the Methods for Making Sanitation Ratings committee, backed eliminating the evaluation of a milking time inspection program from the calculation of enforcement ratings for dairy farms. This proposal did not make any changes or expectations of milk time inspections in Sections 5 or 6 of the PMO. The justification for the removal of the milking time inspection program was that it wasn’t being done, giving dairy farms an automatic credit of 5 points. The proposal passed as amended through the delegates to evenly redistribute the weight of those 5 points among the remaining items evaluated when calculating the enforcement rating score for dairy farms. Summary thoughts: NMPF is concerned about the unintended consequences of the reallocation.

Proposal 301, submitted by the National Milk Producers Federation, provided a definition of equivalence for the USPHS/FDA responsibility to determine whether a foreign country’s regulatory program and government oversight of that program has an equivalent effect on the safety of the regulated milk or milk product. The term “equivalence” is important for international trade; unfortunately, the PMO has long lacked a definition. This proposal passed through the delegates as amended to include a definition more like that of the World Trade Organization. Defining equivalence provides clarity for foreign countries wishing to participate in the PMO. Summary thoughts: This proposal sends an important message to FDA on the importance of transparency when analyzing equivalence for foreign countries.

Future plans

For the 40 proposals that the state delegates passed, FDA will choose to concur or not concur. From there, a new edition of the PMO will be made available. The every-other-year conference will be held in Minneapolis in 2025.

This column originally appeared in Hoard’s Dairyman Intel on April 17, 2023.

CWT Assists with 229,000 Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted four offers of export assistance from CWT that helped them capture sales contracts for 229,000 pounds (104 MT) of cream cheese. The product is going to customers in Asia and will be delivered from April through June 2023.

CWT-assisted member cooperative year-to-date export sales total 13.0 million pounds of American-type cheeses, 550,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 17.9 million pounds of whole milk powder and 2.7 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 284.3 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 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.

CWT Assists with Over 1 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 908,000 pounds (412 MT) of American-type cheese, 2,000 pounds (1 MT) of anhydrous milkfat and 132,000 pounds (60 MT) of whole milk powder. The product is going to customers in Asia, the Caribbean and Oceania, and will be delivered from April through October 2023.

CWT-assisted member cooperative year-to-date export sales total 13.5 million pounds of American-type cheeses, 550,000 pounds of butter (82% milkfat), 2,000 pounds of anhydrous milkfat, 17.9 million pounds of whole milk powder and 2.5 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 287.7 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 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.

Need Peanut “Butter”? Got “Milk” of Magnesia? We’re Fine with That

Posted on by Theresa Sweeney

Of all the misinformation the plant-based sector has aimed at dairy over the decades, one of the most aggravating has been the idea that because dairy farmers want nut-juice manufacturers to stop pretending their products are equal to theirs, they must somehow also oppose terms like peanut butter, Cream of Wheat, and other common products that have dairy-associated words in them.

They do this to both to obscure our real point – that their mimicking of dairy’s properties and use of dairy terms to sell nutritionally inferior imitations creates a real public health issue – and to try to make our arguments seem silly. But the problem is, that’s never been our position – it’s just another “plant”-ed lie. We’ve even specifically rebutted the point, in the Citizen Petition we sent FDA in 2019. So once more, with feeling, here’s the difference between our position on terms like “peanut butter” vs. plant-based dairy alternatives.

It all comes down to:

21 U.S. Code § 343 – Misbranded food

Plant-based fake-dairy products are misbranded. According to FDA regulations, a food shall be deemed to be misbranded … “If it purports to be or is represented as a food for which a definition and standard of identity has been prescribed by regulations.”

The italicized part is the important part. (That’s why we italicized it.) The main principle behind the concept of misbranding is “don’t pretend to be something you’re not,” and that’s the difference between plant-based imitators and common foods that have long used dairy terms without pretending to be in the same food category.

Cream of Wheat is a wholesome breakfast food, but no one’s urging you to pour it in your coffee. Coconut-milk-in-a-carton is problematic (we’ll explain why), but coconut-milk-in-a-can isn’t being sold as a beverage.

Nut butters are spreads, but they don’t substitute for butter in baking — and if you decide to slather body butter on your toast because you thought it’s dairy flavored with … then you’re just an awful human being, and you deserve to vomit. By the same token, Milk of Magnesia isn’t pushing to worm its way into the federal school lunch program, even if the occasional school lunch may make some students wish that were so.

The common thread is that none of these items are trying to masquerade as dairy products. They aren’t promoting marketplace confusion, and they aren’t implying nutrient content they don’t provide.

Contrast that with the plant-based imposters. They’re sold in gallon jugs, cartons and tubs. Even though most don’t require refrigeration because they’re not fresh, they try to fool consumers by paying grocery stores to put their products in the dairy case. They add artificial colorings to make them look like the dairy products they mimic, and they market themselves as being able to do whatever true dairy milk, butter, cheese, or yogurt can do – with the implication that if they can do the same things, they must be equivalent, which in nutrition, they clearly are not.

That’s misleading, as consumer research shows. That’s misbranding, as the FDA defines the term. And that’s what we oppose, as we continue our fight for labeling transparency.

This charade’s been going on for decades. As then-WhiteWave CEO Steven Demos said in 2001 of how soy beverage came to be a dairy imitator: “We also had to figure out how to get this product category to market. Dairy milk is a staple food that we consider a fundamental part of the scenery in a supermarket. Why not position fresh soymilk to be as close as possible?”

That attitude is all about market position – but not market integrity. But integrity has never been the plant-based sector’s strong suit. We’re hoping that our campaign to add comments to FDA’s draft guidance on plant-based beverage labeling will encourage the agency to start enforcing its own rules, just as we’re supporting the DAIRY PRIDE Act as a congressional solution.

We’d encourage you to use the materials we provide as you compose your letter to FDA. Write it while you’re enjoying a peanut butter sandwich and cooking a coconut-milk-based curry. Maybe treat yourself to some chocolates for dessert (the cocoa butter in them must be 100 percent pure to meet FDA’s chocolate standard of identity, by the way).

Dairy is fine with that. We know who we are — and we know where the confusion always comes from. It’s time for it to end.