Dairy Leaders Unanimously Endorse NMPF Milk-Pricing Plan at March Meeting

NMPF’s Board of Directors unanimously endorsed March 7 a proposal to modernize the Federal Milk Marketing Order (FMMO), a milestone that caps more than two years of discussion and more than 130 meetings on different aspects of the proposal.

The plan approved at NMPF’s March board meeting would reinvigorate the FMMO system, which guides milk pricing, to reflect an industry that’s evolved significantly since the last comprehensive revamp in 2000. It’s a proposal all dairy can get behind, said Randy Mooney, chairman of NMPF’s board of directors and a dairy farmer from Rogersville, MO.

“After gathering dairy’s best minds and consulting with partners across the industry, today we are moving forward with a comprehensive FMMO proposal the entire industry can get behind,” Mooney said. “We look forward to leading a thorough, deliberative process as we submit this proposal to USDA and partner with our allies to modernize milk pricing in ways that serve dairy farmers and the entire industry.”

The board reviewed a package of changes initially developed and proposed by a task force of NMPF cooperative experts and later approved by the organization’s Economic Policy Committee. The adopted changes, listed here, reflects the industry’s evolution while benefiting the farmers who form the bedrock of U.S. dairy.

With the board’s approval, NMPF’s next step is to move toward submitting the proposal to USDA as the basis for a federal order hearing while continuing conversations with other dairy stakeholder partners, a move expected in late April. NMPF President and CEO Jim Mulhern said the organization stands ready to assist farmers, the dairy industry and federal officials in any way it can as the process unfolds.

“We believe in a better future for this industry, and this proposal will help build that future,” he said.

NMPF’s board also welcomed new directors — Jacob Larson of Southeast Milk Inc., and Michael Lichte of Dairy Farmers of America – and released its annual report, highlighting the activities and accomplishments of the past year.

NMPF is the only nationwide organization devoted to advancing the interests of all dairy farmers of all sizes in all regions. A federation of dairy cooperatives, NMPF embodies the spirit of farmer self-help and community leadership.

Board members also discussed:

  • The need to build upon an FDA proposal on plant-based beverage labeling that doesn’t go far enough to end the mislabeling of imitation products using dairy terms;
  • Industry leadership in animal care, environmental stewardship, and workforce development through the National Dairy Farmers Assuring Responsible Management (FARM) Program;
  • How sound policy can contribute to another record year of U.S. dairy exports; and
  • Potential farm-bill priorities.

CWT Assists with 445,000 Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted six offers of export assistance from CWT that helped them capture sales contracts 445,000 pounds (202 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 12.6 million pounds of American-type cheeses, 550,000 pounds of butter (82% milkfat), 17.8 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 278.3 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 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 Dairy Summit is Coming to Chicago

By Shawna Morris, Senior Vice President, Trade, National Milk Producers Federation and U.S. Dairy Export Council 

 

This fall the world will be coming to America’s doorstep. And the entire U.S. dairy sector is poised to shine.

Coming off a string of record export years, U.S. dairy will host the International Dairy Federation (IDF) World Dairy Summit in Chicago from October 16 to 19. It’s the first time the summit — the globe’s premier dairy event — has been held in the United States in 30 years.

Over the last few years, new international dynamics are bringing seismic change to the global dairy industry. Governments around the world are now more aggressively trying to balance climate change mitigation efforts with advancing food security in the developing world. Protectionism and distorted trade arrangements have thrown certain markets out of balance, and global supply chains have still yet to fully recover from the pandemic.

These and dozens of other topics will be covered in depth at this year’s World Dairy Summit — just a short drive (or a domestic plane ride) away from your farm.

IDF each year brings together more than 1,000 participants from throughout the global dairy community to learn about the host country’s dairy sector while discussing the industry’s latest developments, exploring areas of common ground on policymaking, and highlighting new, groundbreaking innovations. The summit offers a prime opportunity for U.S. dairy to showcase its world-class manufacturing and sustainability practices as well high-quality, American-made dairy products.

Shawna Morris HeadshotWith the many exciting and innovative developments underway in the American dairy sector, the summit presents perfect timing to invite the world to learn more from the United States. All major U.S. dairy organizations, as well as several of our leading cooperators and processors, are committed to getting this done and collectively putting our best foot forward as we welcome visitors from around the world. It should be a fantastic event for attendees and demonstrate how U.S. dairy is a global leader.

The promise for dairy that can be fulfilled by U.S. leadership in the global sector reflects the 2023 Summit’s theme of “BE Dairy: Boundless Potential, Endless Possibilities.” Beyond the U.S. spotlight, the conference also will speak to the global dairy industry’s incredible promise — what it means for the millions of people whose livelihoods are supported by the dairy industry and the billions more who rely on dairy products as readily available, sustainable sources of nutrition.

Attendees will be greeted with over 25 thematic sessions, featuring more than 100 global and industry leaders, experts, scientists, technical specialists, farmers, and more, who will explore the global dairy sector’s most significant trends and opportunities to thrive. In addition to the wide variety of insights, sponsors’ and exhibitors’ products will take center stage at a concurrent expo where participants can taste samples of the wide range of what U.S. dairy has to offer and hear the diverse stories of American dairy farms and companies. Attendees will also be able to tour farms and dairy facilities in Illinois and surrounding states to experience firsthand the quality, innovation, and sustainability so characteristic of U.S. dairy farming and manufacturing.

In addition to hearing from the specialists, participants will have ample time to network and build relationships by attending the Summit’s welcome reception at the House of Blues, Farmers Dinner in the heart of Chicago, and a stellar gala dinner at Chicago’s world-class Field Museum.

For more information about the 2023 IDF World Dairy Summit or to register to attend, visit www.idfwds2023.com.


This column originally appeared in Hoard’s Dairyman Intel on April 3, 2023.

March CWT-Assisted Dairy Export Sales Totaled 2.5 Million Pounds

CWT member cooperatives secured 31 contracts in March, adding 1.8 million pounds of American-type cheeses, 168,000 pounds of butter, and 522,000 pounds of cream cheese to CWT-assisted sales in 2023. In milk equivalent, this is equal to 24.1 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean and Middle East-North Africa, and will be shipped from March through September 2023.

CWT-assisted 2023 dairy product sales contracts year-to-date total 12.6 million pounds of American-type cheese, 550,000 pounds of butter, 2.5 million pounds of cream cheese and 17.8 million pounds of whole milk powder. This brings the total milk equivalent for the year to 278.3 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.

Milk Pricing Modernization Now at a Pivotal Point

After more than 150 meetings of our dairy farmer members and co-op technical experts. After extensive outreach and consultation with national organizations, including the American Farm Bureau Federation and state and regional dairy associations. And after multiple unanimous votes at all levels of our organization, NMPF this month will submit to USDA our proposal for the first significant update of the Federal Milk Marketing Order system since 2000.

All those meetings, as well as the preparation and examination that accompanies them, add up to many hours and an incredible amount of analysis on Federal Milk Marketing Orders. But by doing the heavy lifting – one that understands and accounts for the reality that a change to one part of the system affects other important parts — we at the National Milk Producers Federation feel confident in the comprehensive proposal our Board of Directors unanimously approved last month.

While the process of a USDA FMMO hearing and a referendum vote by producers will take some time, we’ve already come a long way toward achieving improvements to milk pricing that will modernize this important program. Through our proposal, dairy farmers have found common ground, and we believe the broader dairy sector can rally around these efforts to strengthen our industry. Important components of our proposal include:

  • A return to the “higher of” Class I mover that’s fairer for farmers than the current system that seemed reasonable when it was included in the 2018 Farm Bill, but which the COVID-19 pandemic showed exposes farmers to disproportionate price risks during market disruptions;
  • Updated milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas, recognizing that these components have increased in the U.S. farm milk supply since the current formulas were established;
  • Specific make allowance adjustment numbers for the four products contained in the Class III/IV pricing formulas – cheese, dry whey, butter and nonfat dry milk – to help address increases in processing costs, as well as creating a mechanism to keep those calculations up-to-date; and
  • Updated Class I differential prices that reflect changes in the cost of delivering bulk milk to fluid processing plants.

This is difficult work, and at times it’s involved difficult conversations. But the alignment we’ve achieved among farmers, cooperatives and the cooperative-owned processing community has been one of the most critical, and gratifying, parts of the process.

An important principle we’ve followed is that, while building consensus, we’ve recognized that we can’t craft solutions that are one-size-fits all, nor can any proposal succeed when it’s narrowly tailored to what amounts to one-size-fits-one. What do I mean by that? As we quickly learned when we first started looking at federal reform in 2021 with a re-examination of the Class I Mover, a narrowly targeted approach doesn’t work when there are other major imbalances in the system.

In the end, we didn’t pursue Class I alone because we found serious modernization required a serious look at all aspects of federal milk marketing orders and their complex interactions. Now that we’ve done exactly that, we are hoping the industry can broadly rally around the conclusions at which we’ve painstakingly arrived. We owe it to this industry – and especially to the farmers who are at the heart of it – an honest, deliberative, thorough approach that creates opportunities for everyone to thrive.

Our proposal has come after discussions that reflect the great diversity of this industry. We’ve been transparent, driven by an interest in the industry’s overall success, and we aren’t afraid to lay our cards on the table with specific numbers and forecasted impacts. On the make allowance, for example, the majority of our farmers are members of cooperatives that own dairy processing plants; therefore, they have a vested interest in setting the make allowance at the right level — from both the producer and processor perspective. That balance, which runs throughout our proposal, is what is needed to modernize this important program.

After leading the most comprehensive discussion of federal orders this industry’s seen in the past quarter-century, we’re confident we’ve crafted solutions that all of dairy should get behind – with the unanimous approval our board gave to it in March as evidence of our hard work and dedication to consensus. We are heartened by the strong support among dairy farmers from coast to coast for this proposal. A comprehensive, thoughtful, measured, farmer-centric approach to modernizing the program is exactly what USDA should consider as the basis for a national federal order hearing, and we are proud to offer it.

To better understand our proposal, please explore our website at www.nmpf.org. We of course encourage feedback and any helpful comments that should be considered when finalizing our submission, which is currently under way. To reach out to us with questions as we move toward a federal hearing, feel free to write us at info@nmpf.org.

We’re looking forward to advancing this industry in collaboration and partnership. As the national organization representing most of the dairy producers who, in the end, are the ones voting on any changes to the FMMO system, we take our responsibilities seriously. And we look forward to discussing and advocating for our proposal as this critical next phase begins.


Jim Mulhern

President & CEO, NMPF

 

 

Be It Bank or Beverage, Choices Matter

While we’ll leave fuller explanations for the turmoil financial institutions such as Silicon Valley Bank, Signature Bank and others to those with more expertise, it’s clear that good-old-fashioned poor choices played a role.

It turns out that betting heavily on low-interest government debt when that government is hiking interest rates to fight inflation might not work well; nor is overloading your portfolio on cryptocurrency. And given that propensity for bad bets, it isn’t shocking to see what Silicon Valley Bank had to say about plant and cell-based meat-and-dairy alternatives in this 2019 analysts’ report, which mixed tired tropes of the ills of animal agriculture with boosterism for the future of dairy ripoffs like Ripple and Perfect Day as well as alt-protein companies like Beyond Meat, which “has wowed consumers with its realistic taste and meat-like appearance,” according to the authors.

“At Silicon Valley Bank, we embrace the future of the food industry. We have deep expertise working with foodtech companies and strong ties to the Silicon Valley ecosystem,” the analysts wrote. “If you are working in this space and would like to learn more about SVB’s role, please reach out to chat.”

Of course, we know that that turned out. Beyond Meat stock is now considered a “recipe for disaster” due in part because of its wildly self-inflated expectations. Plant-based beverage sales fell last year. And Silicon Valley Bank? It’s now part of First Citizens Bank & Trust Company after being unloaded by the Federal Deposit Insurance Corporation, which took over the institution upon Silicon Valley’s failure.

So yes, perhaps it’s time to “reach out to chat.” About how venture capital investors have thrown good money after bad at products of questionable quality that are more about marketing pitch than actual market need. About how banks seeking a quick buck put depositors at risk with poor investment choices, which include those products. And about how high-quality, proven nutrition, with a product that’s been in demand for millennia, might, unsurprisingly, be the best investment anyone could make – both for consumers and for investors who’d happily have a little less drama in their financial futures.

Dairy, like every other industry, has its challenges, which it’s dedicated to meet. But with record exports and the highest U.S. per-capita consumption since 1959, it’s a safe bet to say its future is bright. That’s what you get with real quality.

You can bank on it.

IDF World Dairy Summit Returns to the United States, Registration Open

Registration opens today for the International Dairy Federation (IDF) World Dairy Summit 2023 to be held October 16-19 in Chicago, Illinois.

The Summit is returning to the United States for the first time in 30 years and is the world’s largest annual global dairy conference. Under the theme “BE Dairy…Boundless Potential and Endless Possibilities,” the Summit’s immersive program will bring together dairy leaders and renowned experts to address dairy’s most significant opportunities in a dynamic global marketplace.

Hosted by the United States National Committee of the IDF (US-IDF), the IDF World Dairy Summit is expected to attract more than 1000 participants and expert speakers from around the world, including industry leaders, scientists, and producers. The Summit’s expo will showcase dairy companies, suppliers, dairy trade organizations, and products while 23+ thematic sessions offer engaging content from health and nutrition to sustainable production, consumer expectations, policy and innovation.

Set against the backdrop of beautiful Chicago, the best of American food, arts, music, and culture will be on full display, and participants will have easy access to some of America’s most famed dairy regions. Attendees will have the option to register for half-day, one and two-day farm and technical tours showcasing the diversity of U.S. dairy farms, research centers, processing facilities and retail in America’s heartland states of Michigan, Wisconsin, Illinois and Indiana.

Register online at www.idfwds2023.com by June 30 to receive a discounted rate. Full IDF World Dairy Summit 2023 details and program available here. Sponsorship opportunities are available.

Credentialed members of the news media should contact heather.oldani@dairy.org to express interest in registering. News media must present credentials to qualify for registration and special rates.

CWT Assists with 419,000 Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted six offers of export assistance from CWT that helped them capture sales contracts for 251,000 pounds (114 MT) of American-type cheese and 168,000 pounds (76 MT) of butter. The product is going to customers in Asia, Central America, the Caribbean and Middle East-North Africa, and will be delivered from March through July 2023.

CWT-assisted member cooperative year-to-date export sales total 12.6 million pounds of American-type cheeses, 550,000 pounds of butter (82% milkfat), 17.8 million pounds of whole milk powder and 2.0 million pounds of cream cheese. The products are going to 18 countries in five regions. These sales are the equivalent of 274.8 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 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.

NMPF’s Bjerga on Fair Nutrition Access in Federal Programs

 

NMPF Senior Vice President of Communications Alan Bjerga talks about the importance of equal nutrition for all — and how milk in both regular and lactose-free options can assist in that goal — is a bedrock principle in federal nutrition programs. Bjerga also updates on the latest in NMPF’s comment campaign regarding the FDA’s draft guidance for proper terminology in plant-based beverages, discussing the topics in an interview with RFD-TV.

If You Want Equity, You Want Milk

Faced with demand that’s found its ceiling and with its sustainability and health claims coming increasingly under question, the plant-based imitation milk marketing machine is now coming for your children. Despite the critical importance of dairy nutrients to childhood development, nut-based beverage purveyors are pushing for their white-colored sugar water to have greater access to federal nutrition programs, all in the name of “equity” – an emphasis on fairness and justice that’s become an important paradigm in policy debates.

But equity, in food, requires a quality product and equality in access. And for that, milk, a natural product offered with both regular and lactose-free options, remains by far the best solution. Equity in food policy means making sure that everyone has access to the nutrients they need to thrive. The federal school lunch and breakfast programs, the WIC Program, and other initiatives are meant to ensure nutrition for all.

Lactose intolerance is a concern for populations that have higher rates of difficulty absorbing lactose, particularly African American, Asian American, American Indian and Hispanic/Latino populations. That, unfortunately, is now being used by dairy’s opponents to tout their inferior nutrition as a solution to the problem lactose intolerance.

The latest ploy among the vegan, animal rights and plant-based lobbies is to suddenly paint themselves as social justice crusaders, demanding that their nutritionally inferior (which, even when fortified, remain unequal to dairy’s unique nutritional package) products should now be treated as legitimate milk substitutes in federal nutrition programs – all the while conveniently forgetting that a widely available alternative already exists that circumvents lactose intolerance and delivers the exact same nutritional profile as milk. Because that’s what it is.

The lactose-free milk moment has arrived.

To note: This year, at its current pace, lactose-free milk consumption is set to overtake almond beverages – the most popular plant-based category — in overall U.S. sales volume. Its total consumption is already more than half that of the entire plant-based sector, and it’s four times as much as oat drink, the current darling for aficionados of heavily processed, artificially colored liquids. The rise of low- and no-lactose milk comes even though Starbuck’s doesn’t serve it, many consumers unfortunately aren’t even sure that it comes from a cow, and it doesn’t get nearly the attention it deserves as a solution to lactose intolerance – because the plant-based beverage-makers who shout loudest care more about their marketing pitch and ideologies than in actual nutrition solutions.



Imagine how equitable a solution it would be for lactose-intolerant populations if nutrition programs touted lactose-free milk as aggressively as plant-based lobbyists tout their artificially concocted, nutritionally inferior beverages. And when you think of it that way, it’s an insult to the spirit of equity to tell lactose-intolerant children that they should receive nutrition that’s unequal to what others receive.

These are sensitive topics, but for an honest discussion, sometimes it’s important to “go there.” Fortunately, we’re seeing encouraging signs of progress, with recent USDA proposals beginning to acknowledge the need for greater lactose-free dairy access in federal nutrition programs.

But to get the most equitable nutrition policy, it’s important to point out what equity would look like. It doesn’t mean self-serving arguments designed to goose sales for the declining plant-based beverage industry. It doesn’t mean allowing their advocates to cynically tout a “solution” that would worsen nutrition outcomes. It means making sure that everyone – especially children – gets the best available nutrition, so that everyone has an opportunity to thrive.

And that means milk. We’re more than able to provide that solution.

CWT Assists with 1.6 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 19 offers of export assistance from CWT that helped them capture sales contracts for 1.5 million pounds (686 MT) of American-type cheese and 77,000 pounds (35 MT) of cream cheese. The product is going to customers in Asia and Middle East-North Africa and will be delivered from March through September 2023.

CWT-assisted member cooperative year-to-date export sales total 12.4 million pounds of American-type cheeses, 383,000 pounds of butter (82% milkfat), 17.8 million pounds of whole milk powder and 2.0 million pounds of cream cheese. The products are going to 17 countries in five regions. These sales are the equivalent of 268.7 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 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 the dairy farmers’ milk prices and margins.