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NMPF Concentrates on Keeping Markets Open for U.S. Dairy Products

June 4, 2010

 

NMPF Concentrates on Keeping Markets Open for U.S. Dairy Products

NMPF has been active in working to keep key markets open in both Europe and China, while also attempting to increase market opportunities in Cuba.

The situation in China is a challenging and continually evolving one. The Chinese government indicated in late April that it would continue to accept only U.S. food-grade dairy products accompanied by a certificate dated May 31st or earlier, regardless of when the product actually arrived in China. On May 31st, Chinese authorities told the U.S. government that it does not currently plan to enforce the June 1 health certificate deadline that had been previously announced. Chinese customs officers have not been informed that they are to stop accepting shipments lacking a certificate dated prior to June 1. Although this far falls short of the certainty that is needed to restore smooth market functioning, it is better than a definitive market closure. It is NMPF’s understanding that swift movement by the U.S. to work towards finding agreement on new certificate language has been helpful, and could resolve this situation, if China accepts reasonable offers by the U.S. government.

Another issue of great concern to many NMPF members has been the E.U. Somatic Cell Count issue. Late last year, the E.U. informed the U.S. government that exporters would need to test for compliance to the E.U.’s 400,000 SCC limit at the individual farm level, rather than at the tanker or silo levels, as had customarily been the practice. This poses a significant challenge for many coops and as a result, NMPF has been working with our government to evaluate the legitimacy of the EU’s requirements, and to evaluate more workable compliance criteria.

Concrete information from the U.S. government regarding how it plans to require companies to document compliance with the E.U. criteria remains extremely limited – a point that heightens the challenge facing coops as they find ways to deal with this issue. NMPF will continue to keep members fully informed of developments as work with the government moves forward.

Finally, NMPF is also working to expand markets. The U.S. currently ships some dairy products to Cuba, a market where close proximity would give the U.S. a strong advantage were policies not complicating our ability to sell there. To help correct this, House Agriculture Committee Chairman Peterson, along with Rep. Jerry Moran (R-KS), have introduced H.R. 4645, which would ease agricultural payment restrictions limiting U.S. competitiveness, as well as permit travel by all Americans to Cuba. The latter is expected to offer the prospect of expanded agricultural sales, including of higher value-added products such as cheese. As a result, NMPF has been strongly supportive of this legislation and is hopeful that it soon will be taken up in the House Agriculture Committee.