NMPF Letter Warns FDA: Don’t Repeat Plant-Based Mistakes with Lab-Produced Fake ‘Milk’

The U.S. Food and Drug Administration (FDA) must end dairy product mislabeling by manufacturers of synthetic, cell-based “dairy” ingredients that are in violation of federal dairy Standards of Identity to prevent a repeat of the plant-based labeling fiasco that’s created confusion among consumers and regulatory headaches at the agency, the National Milk Producers Federation (NMPF) said in a letter to the agency.

“Bored Cow’s product takes water and adds what we believe to be one unidentified, lab-engineered ‘whey protein’ along with a highly processed concoction of food additives, preservatives, oil, sugar and several added vitamins, and claims to have created ‘animal-free dairy milk.’ It is baseless, preposterous and absurd to call the resulting product ‘milk,’” NMPF President and CEO Jim Mulhern said in the letter. “In the interest of public health, the misleading labeling charade must end before it gets out of hand. FDA must act, and must do so now.”

NMPF, which has repeatedly called on FDA to enforce its identity standards for milk as plant-based fakes have proliferated, has been warning the agency that lab-based milk imposters would be next on the horizon without agency action. Even as the agency is wrestling with draft guidance that finally acknowledges consumers’ core concern over plant-based beverages – their false positioning as dairy equivalents in the face of glaring nutritional inferiority – lab-based imitators are following the plant-based playbook and plastering “milk” and other standardized dairy terms on products that in composition bear little resemblance to true dairy.

“As we have seen in the decades-long folly of plant-based beverage labeling, an ounce of prevention is worth oceans of cure,” Mulhern wrote. “We ask the agency to exercise its well-established authority to prevent this company and others that seek to follow from leading consumers down what will become a superhighway of misinformation, absent your willingness to enforce the law.”

Consumers concerned with labeling integrity may visit NMPF’s Call to Action on plant-based labeling here. For an in-depth discussion on lab-based “dairy” and its pitfalls, listen to this podcast here. A copy of NMPF’s full letter regarding Bored Cow, a brand offered by New York City-based Tomorrow Farms, is here.

Price and Margin Outlook Challenge Farmers

By Peter Vitaliano, Chief Economist, NMPF

The price and margin outlook continues to challenge the nation’s dairy farmers, with little sign of immediate relief.

CME futures markets, which I use to project prices, indicate a 2023 calendar year U.S. average All-Milk price within a penny or two of $20.45 per hundredweight (cwt.); combined with an annual average Dairy Margin Coverage (DMC) feed cost of $14.20 per cwt., prices and costs at these levels would result in an annual average DMC margin of $6.25.

The USDA’s DMC Decision Tool has a different take on the CME futures, but it too shows roughly the same three average numbers for this year. Meanwhile, USDA’s World Agricultural Supply and Demand Estimates (WASDE) report from June 8 was even more dour, with a $19.95 per cwt. milk price forecast for this year.

The worst of the trough

And those are just the averages — the worst of the trough may be happening right now. Both the CME futures markets and the USDA tool indicate DMC margins well below $5 per cwt. for the three months during the May to August period, which for the first time would trigger Tier 2 payments. Tier 2 coverage at that level costs only a half cent a hundredweight, the same as equivalent Tier 1 coverage. Neither forecast expects the margin to top $9.50 per cwt. before the year is out.

Milk production isn’t usually cited as the root cause of this gloom – but it deserves a closer look. Production growth has been experiencing an unusually short and mild expansion cycle following its extended period last year below year-earlier levels. Production growth maxed out this year at 1.4% in January and was headed down since, hitting just 0.4% over a year ago in April, but annual growth ticked back up to 0.6% in May and has averaged 0.8% for the first five months of 2023.

But assessing the role of milk production with respect to milk prices can’t be done only with reference to historic patterns but rather with respect to current available demand. USDA reports of plentiful supplies for manufacturing, milk selling well below class prices, and busy production schedules suggests that milk production is definitely part of the problem. And production itself needs to be understood, because milk solids production is a more reliable indicator of the aggregate supply of dairy products available in the markets. And that’s up by 1.1% during the first third of the year.

A top-level look at the supply-demand situation for key products and total milk use during the first third of 2023 provides further insights. American cheese production has been an important outlet for recent additional milk production, which isn’t surprising given the recent expansion of U.S. cheese production capacity. Production has grown by 2.6% during the first four months of this year while total commercial use, domestic consumption, and exports are up by 1.6%. Even with these increases, stocks are still below last year’s peak levels.

Total commercial use of other than American-type cheese is up by just 0.8%, as food service use is weak following more than a year of retail price inflation that has forced consumers to tighten up on spending. But production of this type of cheese is down by half a percent. Total fluid milk sales are 2.7% lower than last year, which is in line with long-term trends that were broken in recent years only during the first pandemic year when fluid sales experienced modest growth. Butter consumption suffered last year from its extreme price inflation but has showed improved consumption in recent months. Total exports are on par with last year’s record levels so far in 2023 but have recently slowed in pace. During March and April last year, exports sent 18.4% of domestic milk solids production overseas. This year, this was just 17%.

The current weak price and margin situation isn’t attributable to one single factor; rather, it’s an accumulation of many small weaknesses in many areas, with some further deterioration in just the last couple of months. The futures markets’ projected improvement during the second half of the year will need to be driven by consumers returning to bolder spending behavior as inflation continues to ebb, and for the current low prices to perform their proverbial supply-side function of curing themselves.


This column originally appeared in Hoard’s Dairyman Intel on June 26, 2023.

CWT Assists with 732,000 Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted four offers of export assistance from CWT that helped them capture sales contracts for 461,000 pounds (209 MT) of American-type cheese and 271,000 pounds (123 MT) of cream cheese. The product is going to customers in Asia, Middle East-North Africa and Oceania, and will be delivered from June through August 2023.

CWT-assisted member cooperative year-to-date export sales total 24.0 million pounds of American-type cheeses, 594,000 pounds of butter (82% milkfat), 24,000 pounds of anhydrous milkfat, 31.2 million pounds of whole milk powder and 4.4 million pounds of cream cheese. The products are going to 22 countries in five regions. These sales are the equivalent of 498.4 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 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 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.

Cheese-Name Fight Vital for Industry

What’s in a name? Quite a lot. In dairy, a name defines a taste and experience. And that’s why European Union attempts to monopolize commonly understood cheese names poses a problem for consumers and cheese companies, as John Umhoefer, executive director of the Wisconsin Cheese Makers Association in Madison explains in the latest Dairy Defined Podcast.

“Our dairy farmers here in Wisconsin and other states, we can’t go to Europe and sell a Parmesan cheese. We can’t go to Europe and sell a cheese called feta,” he said. “It’s infuriating because those names are used worldwide and the cheeses are produced worldwide. But the EU has put up walls.”

Umhoefer, joined by NMPF Senior Vice President for Trade Policy Shawna Morris, also discusses recent legal victories and a congressional effort to help U.S. producers stifle EU attempts to use cheese names as a trade barrier. 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 below. Please attribute information to NMPF.


NMPF’s Larson on Whole Milk in Schools

 

NMPF Senior Director of Government Relations Claudia Larson discusses the Whole Milk for Healthy Kids Act, which has bipartisan support in the House and Senate. The legislation would return whole milk to schools, encouraging better nutrition and reducing food waste. Larson speaks on the Rural Radio Network.

Dallmann East River Dairy is on the frontline of sustainability

Dallmann East River Dairy sits on the border of Calumet and Manitowoc counties in Brillion, WI. Nick Dallmann, his sister Lindsay Hansen, and their parents Dan and Shirley are all involved on the farm. Nick’s grandparents started the farm in 1964 with 80 acres of land and 15 cows. The Dallmanns now farm about 3,300 acres of cropland and have nearly 5,000 animals on site, milking 2,700 cows every day.

The dairy’s commitment to sustainability has grown over time. “Sustainability is one of those things that you can see coming down the pipeline—you can see certain environmental things, like erosion, starting to happen and you can predict some of the new regulations,” Nick Dallmann said. “We’ve found that just doing our part to be good stewards helps us stay ahead of all that.”

For the rest of the Dallmann’s story and others in our Farmer Focus series, check out NMPF’s Sharing Our Story page.

CWT Assists with 10.5 Million Pounds of Dairy Product Export Sales

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted 33 offers of export assistance from CWT that helped them capture sales contracts for 3.8 million pounds (1,700 MT) of American-type cheese, 22,000 pounds (10 MT) of anhydrous milkfat and 6.6 million pounds (3,000 MT) of whole milk powder. The product is going to customers in Asia, Middle East-North Africa, Oceania, and South America, and will be delivered from June through December 2023.

CWT-assisted member cooperative year-to-date export sales total 23.6 million pounds of American-type cheeses, 594,000 pounds of butter (82% milkfat), 24,000 pounds of anhydrous milkfat, 31.2 million pounds of whole milk powder and 4.1 million pounds of cream cheese. The products are going to 22 countries in five regions. These sales are the equivalent of 492.0 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 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 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 the dairy farmers’ milk prices and margins.

Young Leaders Promote Dairy Priorities

By Theresa Sweeney-Murphy, Director, NMPF Young Cooperators Program

Theresa Sweeney-Murphy, NMPF headshotFarm bill negotiations, an effort to modernize the Federal Milk Marketing Order system, and an ongoing dairy labeling battle provided up-and-coming dairy leaders with no shortage of topics to discuss with members of Congress and their staffs on Capitol Hill.

Young Cooperators (YC) from across the country were in Washington last week for the National Milk Producers Federation’s annual Dairy Policy and Legislative Forum, a two-day issues and advocacy training that equips young dairy farmer leaders to effectively advocate for dairy’s interests.

Forty-nine producers from 21 states ranging from Maine to California brought dairy’s voice to Capitol Hill to promote NMPF’s policy priorities while sharing how these issues uniquely affect their businesses.

NMPF’s effectiveness in Congress depends heavily on grassroots engagement. With fewer people than ever directly involved in dairy, farmers must continue to punch above their weight to maintain relevance in an increasingly urban Congress. NMPF’s National YC Program equips them to do that, providing opportunities to learn background information about the many issues affecting the industry, and empowering them to become — and stay — politically engaged.

The National YC Program is open to producers under the age of 45 who own or are employed on an NMPF member cooperative dairy farm.

The program’s webinar series is open to all eligible dairy farmers and industry affiliates and available at no cost. The 45-minute webinars, each covering a different topic, are held quarterly. Recent topics include an update on NMPF’s modernization efforts, finding work/life balance on the farm, and a panel discussion about challenges women face in reaching dairy leadership positions.

In addition to its Dairy Policy and Legislative Forum, NMPF’s YC Program has other in-person opportunities this year. The program will host a workshop and reception on October 5 at the World Dairy Expo in Madison, Wis. Later that month, the National YC Program is hosting a Young Farmer Forum at the International Dairy Federation’s World Dairy Summit October 17 to 18 in Chicago, Ill. The next month, it will host its annual Leadership and Development Program from November 12 to 13 in Orlando, Fla.

Click here and check the National YC Program box to stay up-to-date on program activities and contact your cooperative to learn more about the program and how you can be involved

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This column originally appeared in Hoard’s Dairyman Intel on June 15, 2023.

CWT Assists with 1.7 Million Pounds of Dairy Product Export Sales

 

NEWS RELEASE

 

FOR IMMEDIATE RELEASE

Tuesday, May 30, 2023

CONTACT

Allison Wilton

703-243-6111

awilton@nmpf.org

 

CWT Assists with 1.7 Million Pounds of Dairy Product Export Sales

 

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

 

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

 

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and cooperatives by fostering the competitiveness of 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.

 

 

Good News for Consumers on Inflation

When dairy prices rise, people notice.

That’s what happens when your product is so ubiquitous that grocery stores price it below-cost to bring in consumers who make up for the loss by buying higher-margin items. That’s what happens when your products are so essential that there’s no way around spending a premium if that’s what it takes to bake a perfect cake. And that’s what happens when people rely on you for affordable, efficient nutrition.

But in recent months, even as last year’s general run-up in inflation has eased, some of that easing has been even more pronounced in dairy products. Butter prices, which in December were 31 percent higher than a year earlier, are now only up 5 percent year-over-year, according to the latest Consumer Price Index numbers – much more in line with overall inflation. Cheese was up 13.5 percent last August – but by April it has fallen to 6.1 percent, less than overall food inflation of 7.5 percent.

And fluid milk, which last August was witnessing year-over-year inflation of 17 percent, in April was up a meager 1.6 percent over the year before, a number that, given all that’s occurred, seems positively … normal.

Which shouldn’t be surprising in the end. While dairy, like many perishable products, is prone to more dramatic price swings than many other goods, over the long haul it remains extremely affordable, and has only become more so over time. Check out the divergence seen from 2008, when long-term overall inflation, food inflation and dairy inflation were relatively equal, through today, as dairy prices have risen less, during most of that period, relative to those other categories.



The best bargain in nutrition is only getting better. And while short-term blips get headlines, as the spikes recede, all that remains is dairy’s well-deserved reputation for quality and affordability. Something to keep in mind as the summer months heat up – dairy will cool you down, from your body to your pocketbook.

NMPF’s Bjerga on the Whole Milk for Healthy Kids Act

NMPF Senior Vice President of Communications Alan Bjerga discusses the Whole Milk for Healthy Kids Act and the importance of bringing back whole milk as an option in school meal programs. The Whole Milk for Healthy Kids Act was introduced in the House of Representatives on Tuesday, and is another step acknowledging the increased understanding of the benefits of whole milk in diet. Bjerga speaks on RFD-TV.

May CWT-Assisted Dairy Export Sales Totaled 5 Million Pounds

CWT member cooperatives secured 41 contracts in May, adding 4.1 million pounds of American-type cheeses, 99,000 pounds of butter, 88,000 pounds of whole milk powder and 717,000 pounds of cream cheese to CWT-assisted sales in 2023.

In milk equivalent, this is equal to 46.3 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Oceania, South America and Middle East-North Africa, and will be shipped from May through November 2023.

CWT-assisted 2023 dairy product sales contracts year-to-date total 19.7 million pounds of American-type cheese, 594,000 pounds of butter, 24.6 million pounds of whole milk powder, 4.1 million pounds of cream cheese and 2,000 pounds of anhydrous milkfat. This brings the total milk equivalent for the year to 407.6 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.