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FDA Guidance On Plant-Based Beverages’ Use of Dairy Terms is a First Step, NMPF Says While Calling for Complete Transparency in Labeling
In response to today’s FDA guidance on plant-based beverages, which guides manufacturers of plant-based beverages to disclose their nutrient inferiority and acknowledges the public health concern of nutritional confusion over such beverages, the National Milk Producers Federation, which has led the fight for labeling transparency, released the following statement:
From Jim Mulhern, President and CEO of the National Milk Producers Federation:
“Today’s FDA announcement is a step toward labeling integrity for consumers of dairy products, even as it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology. By acknowledging both the utter lack of nutritional standards prevalent in plant-based beverages and the confusion over nutritional value that’s prevailed in the marketplace because of the unlawful use of dairy terms, FDA’s proposed guidance today will provide greater transparency that’s sorely needed for consumers to make informed choices.
“Still, the decision to permit such beverages to continue inappropriately using dairy terminology violates FDA’s own standards of identity, which clearly define dairy terms as animal-based products. We reject the agency’s circular logic that FDA’s past labeling enforcement inaction now justifies labeling such beverages “milk” by designating a common and usual name. Past inaction is poor precedent to justify present and future inaction.
“Because FDA’s proposed guidance is meaningless without action, enforcement will be necessary to ensure that this limited progress is reflected on grocery shelves. For these reasons, we will continue our work in Congress to pass the DAIRY PRIDE Act, which would direct FDA to enforce its own rules and clarify that dairy terms are for true dairy products, not plant-based imposters.
“FDA’s last three Senate-confirmed commissioners — from both parties — have each acknowledged the problem of consumer confusion over nutritional content created by beverage labels that use dairy terms to imply qualities they simply don’t have. Medical groups, including the American Academy of Pediatrics, concur with this concern. Today’s proposed guidance at least recognizes this reality: That nutritionally inconsistent concoctions of water, factory-processed powders and other additives simply don’t contain the same nutrition that milk provides.
“As the agency entrusted with protecting consumers from mislabeled products, FDA’s action here takes a step in that direction. And after more than four decades of efforts that have often fallen on deaf ears, we appreciate that today’s agency leadership is beginning to treat plant-based beverage labeling more like the critical issue of nutrition and agency integrity that it is.
“We also would like to thank consumers, who sales data show drank fewer fake dairy beverages in 2022 than in 2021, part of a broader awakening to the bogus marketing of fake milk manufacturers that have been accepted uncritically for far too long. Despite the misinformation spun in advertisements and media, consumers are seeing through the marketing and recognizing these beverages for the fakes that they are. But consumers shouldn’t have to make choices in a marketplace that’s less than fully transparent, and until the federal government fully lives up to its mission, NMPF will continue to lead the battle for labeling transparency.”
For more NMPF discussion of the misleading use of dairy terms on plant-based beverages, see:
https://www.nmpf.org/the-plant-based-lie-that-needs-to-die/
https://www.nmpf.org/say-it-loud-say-it-clear-the-plant-based-beverage-bust-is-here/
https://www.nmpf.org/dairy-wins-on-facts-in-looming-lab-based-labeling-battle/
https://www.nmpf.org/plant-based-higher-cost-lower-quality-be-sure-to-tell-your-barista/
https://www.nmpf.org/fdas-proven-it-can-do-its-job-on-fake-milk-it-can-do-it-again/
https://www.nmpf.org/dairy-defined-the-over-hyped-shift-to-plant-based-beverages/
Record Exports Drive U.S. Dairy Demand
By William Loux, Vice President, Global Economic Affairs, NMPF and U.S. Dairy Export Council.
U.S. dairy exports excelled again in 2022, with record shipments further cementing its role as the key demand driver for U.S. milk.
For the third consecutive year, the U.S. dairy industry set a record for the volume of dairy products exported on a milk solids equivalent basis, with the current record now surpassing 2.4 million metric tons — the equivalent of over 40 billion pounds of raw milk, or 18% of the U.S. milk supply.
Perhaps even more impressive, for the fifth time in the last six years, U.S. exports grew by more than domestic consumption. Of that six-year window, 2019 was the only time in that span when exports grew by less than domestic sales. That’s the year the U.S. faced prohibitive retaliatory tariffs on dairy products destined for China. In addition, African Swine Fever was cratering China’s demand for whey products. At the same time, U.S. skim milk powder exporters were facing headwinds from EU intervention storage stocks that began hitting the market at below-market prices in 2019. All this noted, with 2019 being a particularly unique exception, the international market has been the driver of U.S. dairy demand growth for the past six years.
Success can’t be taken for granted
European milk production came on strong at the tail end of 2022 as favorable weather and margins boosted output. Conversely, demand within the European Union bloc has reportedly weakened as consumers feel the squeeze on their wallets, which is causing European wholesale prices to dip. With more supply, weaker internal demand, and low prices, we can expect significantly more competition from Europe in the international market than we did in 2022 when their exports dropped 10% during the first 11 months of the year.
Additionally, the international demand picture remains uncertain. Despite the clear success of U.S. dairy, the world’s collective dairy trade actually dropped 4% in 2022 — primarily on account of China. The world’s largest dairy product-importing nation contracted dairy imports by 21% as the country drew down inventories built in 2021, witnessed a surge in domestic milk supplies, and instituted movement restrictions, all of which damaged dairy consumption and imports.
China’s return to the market in 2023 remains uncertain. The lockdowns have been lifted, but milk production in the country is still growing, and inventories of milk powder reportedly remain heavy. Optimistically, consumption in the country will rebound and stockpiles will be reduced, setting the stage for China’s return as a global buyer in the middle part of the year. But until they do, New Zealand, which exported over 40% of its production to China at its peak, will have plenty of products available for customers elsewhere, meaning increased competition with the United States.
Outside of China, the demand picture will likely be mixed depending on local conditions, but broadly, slower economic growth and inflation are expected to challenge lower-income consumers and push buyers to look for bargains.
Overall, I am forecasting international demand in 2023 to return to growth, but not at a spectacular rate, and with more suppliers competing for business.
Given the expected headwinds this year, industry investment in international markets will be critical to success. To set another record in 2023, the U.S. must continue the work being done to build demand for U.S. dairy products overseas and expand market access in key markets, all while maintaining reliability with international customers by being engaged and responsive.
This column originally appeared in Hoard’s Dairyman Intel on Feb. 21, 2023.
CWT Assists with 2.0 Million Pounds of Dairy Product Export Sales
ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted ten offers of export assistance from CWT that helped them capture sales contracts for 2.0 million pounds (886 MT) of American-type cheese. The product is going to customers in Asia and Oceania, and will be delivered from March through August 2023.
CWT-assisted member cooperative year-to-date export sales total 10.2 million pounds of American-type cheeses, 50,000 pounds of butter (82% milkfat), 17.8 million pounds of whole milk powder and 1.2 million pounds of cream cheese. The products are going to 15 countries in five regions. These sales are the equivalent of 234.8 million pounds of milk on a milkfat basis. Over the last 12 months, CWT assisted sales are the equivalent of 1.084 billion 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.
Dairy Brings Resilience for Ukraine Farmer
One year after Russia’s invasion of Ukraine, dairy cows are critical to keeping Kees Huizenga’s crop and livestock operation running as the war continues to bring hardship and suffering to the country and its agriculture.
When the war began, “I went to the people, to the old employees to talk to them and tell them not to panic and that we will all stay, and that we have to keep on running the farm and keep on feeding and milking the cows because they don’t care if it’s rockets or not. They have to be milked three times a day. And that’s what we did. And everybody stayed,” said Huizenga, who is now living in his home country of the Netherlands while managing the 2,000-cow dairy and crop farm he began more than 20 years ago near Cherkasy, Ukraine, about 120 miles southeast of its capital city of Kiev.
“The creamery, the processing factory, they never skipped one day in picking up the milk. They never skipped a day in paying. We gave them some milk for free and they processed it for free and they gave these products to refugees and to the army. And a lot of people, a lot of farmers did similar things.”
Looking at the next year, the biggest challenge for Ukrainian farmers is “the uncertainty,” he said. “You never know what’s going to happen tomorrow, if that rocket might hit your farm. We are still far away from the front line, but I know farmers who’ve been hit and who’ve been tortured and killed as well. So, I don’t know what the biggest uncertainties are. If there will be enough fertilizer available to grow a good crop. Seeds, are they more or less available. Prices because of these export complexities.”
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NMPF Commends Farmers Speaking at House Farm Bill Listening Session
NMPF commended three NMPF cooperative members who spoke up for dairy producers today at a bipartisan House Agriculture Committee farm bill listening session held in Tulare, CA. California dairy producers Brad Bosch, Jared Fernandes and Tony Lopes each discussed farmer needs as lawmakers begin work on a reauthorization of farm programs due later this year.
House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, presided over the session, accompanied by House Speaker Kevin McCarthy, R-CA, and Representatives David Valadao, R-CA, Jim Costa, D-CA, John Duarte, R-CA, Jimmy Panetta, D-CA, Doug LaMalfa, R-CA, Salud Carbajal, D-CA, David Rouzer, R-NC, and John Rose, R-TN. Held in one of the nation’s biggest milk-producing counties, dairy was top-of-mind as farmers and lawmakers discussed critical agricultural policies.
“Just as NMPF appreciates the work dairy producers do every day to nourish our nation and the world, we are grateful to each of our members for taking time out of their day to attend this important session,” said Jim Mulhern, president and CEO of NMPF. “We also thank Chairman Thompson, Speaker McCarthy, Representatives Valadao and Costa, and their colleagues for hosting today’s farm bill listening session.”
NMPF cooperative member farmers touched on critical issues NMPF is hoping the House Agriculture Committee will consider in crafting the 2023 farm bill, including key matters related to the Federal Milk Marketing Order system, the Dairy Margin Coverage program and other risk management tools, and the important sustainability opportunities that farm bill conservation programs provide to dairy producers of all sizes.
Among farmer comments:
Brad Bosch, southern California dairy farmer, California Dairies, Inc. and Dairy Farmers of America member-owner: “The dairy industry is working hard to reach a consensus on the Federal Milk Marketing Order improvements that will be submitted to USDA for consideration in a national federal order hearing. Of most importance is returning to the ‘higher of’ Class I mover. The current formula is blamed for a nearly $1 billion loss over the last few years.
“Discussions in the industry are also focused on potential changes to the make allowance. While make allowance changes will also go through a federal order process, the industry lacks the data to make good decisions on this issue. I hope that the next farm bill will include language giving USDA to authority to conduct mandatory plant cost studies so that we better understand the real cost of dairy manufacturing.”
Jared Fernandes, third-generation dairy farmer, Tipton, CA, Land O’Lakes, Inc. member-owner: “The 2018 Farm Bill made tremendous improvements to the dairy safety net, including through the Dairy Margin Coverage program. These changes provided better coverage levels, lower premiums and more flexibility for dairy farmers. We hope to build off of the improvements to both DMC and dairy insurance programs in the 2023 Farm Bill to continue providing dairy producers with straightforward, easy-to-use risk management tools.
“Next, we need bipartisan collaboration that encourages the adoption of conservation practices at scale. There is significant opportunity for farmers looking to utilize the USDA conservation programs, and the farm bill presents an opportunity to support and streamline these programs to make them easier for farmers to use and we encourage you to consider allowing the private sector, including farmer cooperatives and ag retailers, to extend the conservation delivery system.”
Tony Lopes, fourth-generation dairy farmer, Gustine, CA, CDI and DFA member-owner: “Across the California dairy industry, we largely view the 2018 Farm Bill as a legislative victory. It provided the much-needed safety net programs, the Dairy Margin Coverage as well as Dairy Revenue Protection, that has worked well for us through these unprecedented times through the pandemic and supply chain constraints. However, due to inflationary pressures, constraints related to how much milk volume can be enrolled in these programs as well as regionally different cost structures in calculating the milk-to-feed margin within the DMC, $9.50 is not the same as it was years ago, and it’s different in every region and every shape and size of operator. We just ask to echo Speaker McCarthy’s words with the opportunity to produce dairy on a level playing field with other regions across the country.
“Additionally, when we look at the Dairy Revenue Protection program, we ask that our friends in the dairy industry be afforded the same opportunity as our friends in the livestock sector to protect at 100% price coverage level, similar to that of the Livestock Risk Protection program. And lastly, recognizing the large component of the farm bill that is nutrition assistance. We just ask that you continue to prioritize U.S. dairy and beef production throughout that program.”
CWT Assists with 6.7 million Pounds of Dairy Product Export Sales
ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 23 offers of export assistance from CWT that helped them capture sales contracts for 1.4 million pounds (618 MT) of American-type cheese, 50,000 pounds (23 MT) of butter, 4.9 million pounds (2,230 MT) of whole milk powder and 333,000 pounds (151 MT) of cream cheese. The product is going to customers in Asia, Central America, the Caribbean, Middle East-North Africa, and South America, and will be delivered from February through August 2023.
CWT-assisted member cooperative year-to-date export sales total 8.3 million pounds of American-type cheeses, 50,000 pounds of butter (82% milk fat), 17.8 million pounds of whole milk powder, and 1.2 million pounds of cream cheese. The products are going to 15 countries in five regions. These sales are the equivalent of 216.8 million pounds of milk on a milkfat basis. Over the last 12 months, CWT-assisted sales are the equivalent of 1.154 billion 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 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 dairy farmers’ milk prices and margins.
Regulatory Register – Winter 2023
Playing Cyber Defense
2022 Dairy Data Highlights
NMPF Statement on Record Dairy Exports
From NMPF President and CEO Jim Mulhern:
“For the third consecutive year, U.S. dairy farmers have proven how their dedication to innovation and sustainability leadership increasingly have made them the world’s provider of choice for nutritious dairy products. In both value and in volume, U.S. sales are at all-time highs, and in 2022, a record percentage of U.S. milk production was exported overseas. This happened despite the headwinds our exporters battled last year, which included supply chain challenges, a lack of new trade agreements to establish more level playing fields abroad, and other barriers to trade that threatened to upend progress.
“Let this be a signal to the world: U.S. dairy farmers are, and will be, a growing force for global nutrition, sustainability and health, as shown by the increasing preference of consumers worldwide for the products they create. We’re excited to see today’s year-end export totals reflect a vision we’ve been pursuing for decades, and we look forward to seeing further progress in the years to come.”
NMPF’s Morris Talks Trade, Canada on Podcast
NMPF and USDEC Senior Vice President for Trade Shawna Morris discusses the need to hold accountable for its trade commitments on the Agriculture of America podcast. Canada’s improper allocations under its Tariff-Rate Quota system is impeding the market access promised U.S. dairy farmers under the USMCA trade agreement, making a legal remedy necessary. The U.S. needs to strongly defend its farmers, Morris said; while farmers are hoping for a fair solution with Canadian compliance, retaliatory tariffs against Canadian products may be necessary, she said.
