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Shrinking Plant-Based Beverage Sales? Hmmm…

Posted on by Theresa Sweeney

Maybe it’s the bad taste they leave. Maybe it’s P.T. Barnum’s adage about how often you can fool people, proving itself again. Or maybe people simply are finally seeing through the marketing spin. We’ll leave the speculation to others.

But the fact is this: Plant-based beverage sales are declining. That’s the data. You hadn’t heard that? You mean that plant-based marketers and their media allies who have long touted that fake milks would lead to the “death of dairy” aren’t telling you that the novelty appears gone and that predictions of Almond Ascendance have come to naught? Sorry about that, perhaps they should have told you sooner. But the markets know, and now you do too, because here it is:

Most Milk Alternative Segments are Losing Volume in 2022

Source: IRI/DMI custom milk database; Total U.S. multi-outlets + c-stores. Volume for 2022, through May 22.

It’s been true for more than a year now. Almonds – down. Soy – down. Coconuts, rice, and “other” – down. And what’s up? Oats, pea, and horchata (which, it should be noted, is sometimes made with actual milk). But those beverages aren’t enough to stave off the widespread sector decline that’s led by almonds, which is ¾ of the category. And those pockets of isolated growth come at the expense of other plant-based beverages, cannibalizing the sector instead of growing it.

So as the FDA contemplates guidance on labeling, and proven mis-informers try to argue that their place in the market is fore-ordained – and everyone else should just go along with their blatant mislabeling – remember: Real milk is the superior product – in nutrition, taste, functionality and naturalness – and  the highly processed plant-based food propagandists know it. Maybe that’s why you haven’t been hearing much lately about how plant-based beverages are on the rise at dairy’s expense. Because they aren’t rising at dairy’s expense. In fact, they’re not even on the rise.

Dairy Leader Urges Congress to Promote Greater Focus on Agricultural Trade

Posted on by Theresa Sweeney

Sheryl Meshke, co-president and CEO of Associated Milk Producers Inc. (AMPI), told a Senate subcommittee today that the U.S. government must pursue additional market access opportunities and address export supply-chain delays in order for the U.S. dairy industry to keep up with its global competitors.

Meshke serves on the board of directors for both the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).

“In pursuing exports, the U.S. dairy industry faces experienced and well-established competitors who have been exceptionally active with free trade agreements,” said Meshke, whose New Ulm, MN-based cooperative is a member of both NMPF and USDEC. “The United States needs to get back in the game and craft an approach to pursuing comprehensive trade agreements.”

Meshke also emphasized the importance of enforcing existing trade agreements, particularly U.S. dairy export access to the Canadian market under the U.S.-Mexico-Canada Agreement.

Meshke addressed the Senate Agriculture Committee’s Subcommittee on Commodities, Risk Management, and Trade, which convened the hearing on agricultural trade issues.

American dairy risks losing its competitiveness, as the global playing field slowly tilts against the United States due to competitors’ trade agreements with key dairy importing markets, Meshke noted in her testimony. She also said U.S. trade negotiators need to target priority markets for expanded access, including Southeast Asia, Japan, China, the Middle East and the United Kingdom.

Meshke also emphasized the importance of combating non-tariff trade barriers, particularly the European Union’s aggressive efforts to confiscate food and beverage names in global markets by abusing geographical indications systems. She urged a strong defense of common food names: “We can’t wait any longer for the U.S. government to proactively defend the use of common food and beverage names against aggressive global efforts by the EU to restrict the use of generic terms we rely on.”

Congress and the Biden Administration must take further steps to address export supply chain delays, Meshke added. She specifically called for the passage of the Ocean Shipping Reform Act (OSRA), versions of which have passed in both the U.S. House of Representatives and the Senate, and for a suite of solutions to be pursued to mitigate this complex problem.

“As Sheryl outlined so well, we are now seeing dairy consumption grow at exceptional rates in many markets around the world,” said Jim Mulhern, president and CEO of NMPF. “The U.S. dairy industry is well-positioned to meet the expanding global demand for sustainably produced dairy products. But to seize those opportunities, we must take a leadership role along with like-minded countries – advancing policies and crafting trade agreements that can deliver real benefits for dairy farmers.”

“Now more than ever, global markets are critically important to the health of the U.S. dairy industry,” said Krysta Harden, president and CEO of USDEC. “We need to make full use of every available trade tool – including the Indo-Pacific Economic Framework, the U.S.-Taiwan Initiative, and Trade and Investment Framework Agreements – to improve market access in key export markets. At the same time, we can’t leave comprehensive trade agreements on the cutting room floor. Exports underpin U.S. dairy’s success in the present and, backed by trade agreements, exports will support the industry’s growth in the future.”

Dairy Supports Nomination of Doug McKalip for Chief Agricultural Negotiator

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC)  – representing America’s dairy farmers, exporters and manufacturers – today offered their support and praise for President Biden’s selection of Doug McKalip as the Chief Agricultural Negotiator for the Office of the U.S. Trade Representative (USTR).

“Expanding U.S. agricultural export opportunities requires all hands on deck,” said Jim Mulhern, president and CEO of NMPF. “The position of USTR’s Chief Agricultural Negotiator plays a central role in driving trade policy and expanding overseas markets for dairy products. Doug is an excellent choice given his strong background in agriculture, earned while serving in numerous positions within the White House and USDA. He brings an informed perspective on how to best drive policy and support American agriculture and he will be ready to lead from day one. NMPF encourages the Senate to confirm him without delay, so that he may hit the ground running.”

“Doug has spent a lifetime in service to America’s farmers and rural communities, and we are grateful for his dedication,” said Krysta Harden, USDEC president and CEO. “He has seen firsthand how opening new markets and lowering tariffs on American dairy products have been essential to the success or our farmers, manufacturers and workers. Additional market opportunities await American dairy, as global consumers reach for our high-quality, sustainably produced products when given the chance. As Chief Agricultural Negotiator, he will have the opportunity to help us continue to grow and thrive through exports, which today account for over 17% of domestic milk production.”

Love of Farm, Family Motivates Young Cooperators Leader

Posted on by Theresa Sweeney

A commitment to a rural family life motivates work at Unc Brock Farm, said Val Lavigne of Schaghticoke, NY, chairwoman of NMPF’s National Young Cooperators organization of younger dairy farmers, Lavigne said in a Dairy Defined podcast released today. Lavigne and her husband, members of the Agri-Mark cooperative, operate the 200-cow dairy near Schaghticoke, NY, along with numerous side businesses related to the farm. “We are a family run farm. We do have a few employees, but for the most part, the family does a lot of the work, and we’re happy to,” she said. “I’m so happy to be able to raise my three children on the farm with the cows and the other animals, and I wouldn’t want it any other way.”

Along with the farm, the family raises turkeys, beef, and goats along with a catering business.

Lavigne also discusses the challenges of being a younger farmer and why she’s leading the YCs, which since 1950 has provided dairy leaders with a better understanding of issues facing farmers and their co-ops. This week, the YC program is hosting its capstone event in Washington, combined with the program’s annual fly-in to Capitol Hill.

The full podcast is here. You can find and subscribe to the podcast on Apple Podcasts, Spotify, Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” A transcript is also available below. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

2025-2030 Dietary Guidelines Kick Offs, NMPF Submits Comments

Posted on by Theresa Sweeney

NMPF submitted comments on the proposed scientific questions for the 2025-2030 Dietary Guidelines for Americans (DGAs) May 16, emphasizing NMPF’s shared priority with USDA and HHS of ensuring all Americans have access to nutrient-dense, healthy foods. NMPF also requested the opportunity for stakeholders to comment on the inclusion and exclusion criteria that will apply to the systematic review as this has led to some dairy-focused studies not making the cut in the past. The full, detailed comments can be found here.

The Dietary Guidelines are important as they form the basis of federal nutrition policy and programs including the National School Breakfast and Lunch programs. The development of the new version can be lengthy, with the next steps including selection of the Scientific Advisory committee and their review of the evidence.

The 2020-2025 guidelines retained dairy as a separate group and continued to recommend 3 servings of low-fat and non-fat dairy products in the Healthy U.S.-Style Dietary Pattern. NMPF will continue to monitor and advocate for dairy in the DGAs throughout the entire process.

May CWT-Assisted Dairy Export Sales Totaled Nearly 19 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 57 contracts in May*, adding 5.0 million pounds of American-type cheeses, 49,000 pounds of butter, 13.0 million pounds of whole milk powder and 679,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 147 million pounds of milk on a milkfat basis. These products will go customers in Asia, Central America, Oceania and South America, and will be shipped from May through December 2022.

CWT-assisted 2022 dairy product sales contracts year-to-date total 47.7 million pounds of American-type cheese, 95,000 pounds of butter, 5.0 million pounds of cream cheese and 28.5 million pounds of whole milk powder. This brings the total milk equivalent for the year to 690 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.

*Awaiting confirmation on one bid offer

Application Deadline for FARM Beef Quality Assurance Award Approaching

Posted on by Theresa Sweeney

The application deadline for the FARM Program and Beef Quality Assurance (BQA) program’s annual joint award is June 10.

The award will recognize an outstanding dairy farmer that demonstrates excellence in animal care and handling principles. Applicants must also demonstrate a strong desire to continually incorporate BQA principles on their farms while encouraging others to implement the producer education program. Winners will receive a round trip to New Orleans, LA to attend the 2023 Cattle Industry Convention and Trade Show.

The FARM Program is a proud BQA partner. BQA is a nationally coordinated, state-implemented program that provides information to U.S. beef producers, including dairy farmers, and beef consumers about how common-sense husbandry techniques can be coupled with accepted scientific knowledge to raise cattle under optimum management and environmental conditions. BQA guidelines are designed to make certain all beef consumers can take pride in what they purchase – and can trust and have confidence in the entire beef industry.

Click here for more information and to apply.

FARM Unveils Online Modules for Calf Care and Quality Assurance Program

Posted on by Theresa Sweeney

The FARM Program announced May 11 that farmers raising dairy calves have access to new training resources and certification through the Calf Care and Quality Assurance (CCQA) program. CCQA promotes a way of thinking that prompts calf raisers to approach management decisions with thoughtfulness and an appreciation for the responsibility they have to their animals, consumers, the environment and the broader cattle industry.

The science- and outcome-based program was developed with an understanding of the diversity of calf-raising enterprises while maintaining facility type and size neutrality. While the practices identified in the animal care reference manual are not the only practices that can meet the desired outcomes, the program provides a framework that serves as a resource for anyone working in the calf-raising industry.

In addition to the manual, online modules and self-assessment tools, CCQA will release an audit tool later this year. Completion of the CCQA online modules provides certification equivalent to Beef Quality Assurance certification.

Certification through CCQA helps ensure optimal calf health and welfare and is the first, collaborative educational tool that provides guidelines for calf raisers. The CCQA program is a joint initiative led by the FARM Program and the Beef Quality Assurance program, with support from the Dairy Calf and Heifer Association and the Veal Quality Assurance program.

Task Force Recommends Next Steps in FMMO Modernization Work

Posted on by Theresa Sweeney

The task force of milk marketing experts from across NMPF’s membership met May 12 to review and approve a series of recommendations about how to improve the Federal Milk Marketing Order program.

The meeting at NMPF’s office was the next step in refining proposals to modernize and improve the price determination under the FMMO system. The Task Force reached unanimous agreement on a number of recommendations for improving our current pricing system and is expected to make several more recommendations before its work concludes.

The full NMPF Economic Policy Committee will review the Task Force’s proposals at their next meeting on June 6th, followed by a Board of Directors review of the proposals at their meeting June 7-8. NMPF will conduct additional member and industry stakeholder outreach over the summer.

Member CEOs Meet at NMPF Office

Posted on by Theresa Sweeney

In light of the many recent leadership transitions at NMPF’s member cooperatives – half of the members have changed CEOs within the past three years – NMPF hosted informational meetings May 9-10 to provide background materials and resources to these executives and discuss overall organizational strategy and mission priorities at NMPF, part of the ongoing discussion of how to best serve dairy farmers and the entire sector.

Five cooperative CEOs attended, with one joining via Zoom, for the deep dive on NMPF governance, budgets and staff resources and policy priorities.

NMPF Leads on Supply Chain Issues in White House, USDA, Congressional Engagement

Posted on by Theresa Sweeney

NMPF staff joined USDEC leadership engaging policymakers in meetings at the White House and USDA, as well as with leading members of Congress, in meetings May 12 on export supply chain issues. The group underscored the importance of the pop-up sites USDA launched earlier this year in Oakland and Seattle, and emphasized additional potential remedies, including:

  • Preferential port access for ocean carriers that maximize agricultural export carriage
  • Resuming the weekly Ocean Shipping Container Availability Report
  • 24-hour ag export pop-up sites at inland ports; and
  • Dual-turn facilitation of containers. A dual-turn allows containers delivering imports to an inland location to be provided directly to a nearby export-focused shipper, rather than being returned empty to the coast.

On May 25 USDA announced that it would begin accepting applications for the Commodity Container Assistance Program (CCAP) at the ports of Oakland and Seattle. Under the program, the Farm Service Agency (FSA) is providing a $125 per container payment to assist exporters with the additional logistical expenses associated with picking up empty shipping containers to be filled with agricultural commodities and will also provide payments of $200 per dry container and $400 per refrigerated container to help cover additional logistical costs associated with moving the shipping container.

NMPF touted this additional step to support dairy exports as president and CEO Jim Mulhern noted, “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

NMPF remains among the most active agricultural industry voices pushing for progress to resolve the export supply chain crisis through a full-spectrum approach, engaging policymakers, driving policy and educating the public.

NMPF also commended a House bill introduced on May 13 by Reps. Angie Craig (D-MN) and Dusty Johnson (R-SD) that would create a dedicated task force within USDA designed to support American agriculture by shoring up the supply chain, increasing government coordination and preventing future issues. The bill unanimously passed the House Agriculture Committee on May 18. The language in this stand-alone bill parallels language in the existing COMPETES Act, now in conference.

Finally, NMPF’s senior vice president of trade policy, Shawna Morris, addressed dairy industry concerns as part of a May 18 webinar, hosted by Hoard’s Dairyman. Shawna focused on NMPF’s policy efforts. The lively and informative panel, which remains available for viewing, included perspectives from the Port of Oakland, a dairy exporter and an expert academic.