NMPF’s Senior Vice President Chris Galen reviews highlights of National Milk’s 2024 annual meeting in Phoenix for the listeners of Dairy Radio Now. The annual conference, which just concluded Oct. 23, reviewed NMPF’s work this year on FMMO modernization, the farm bill, and dealing with HPAI in dairy cows.
NMPF’s Senior Vice President Chris Galen provides Dairy Radio Now listeners the highlights of National Milk’s 2024 annual meeting in Phoenix, which runs Oct. 20-23. The annual conference, held jointly with the dairy checkoff, will feature keynote presentations on new revenue opportunities for farmers, an assessment of the upcoming November elections, a psychographic profile of the farmer of the future, and a presentation from the CEO of Domino’s Pizza. The meeting also brings together the Young Cooperator program representatives from NMPF’s member co-ops.
By Clay Detlefsen, Chief Counsel, National Milk Producers Federation
The National Milk Producers Federation (NMPF) has worked with federal agencies on cyber issues for more than two decades. While the priorities and likely types of threats have shifted as technology has advanced, food and agriculture entities must take cybersecurity in all its forms seriously.
Last month, seven U.S. government agencies plus Canadian and British agencies worked together to create a fact sheet to address pro-Russian “hacktivist” activity among four of the nation’s 16 critical infrastructure sectors — water and wastewater, dams, energy, and food and agriculture.
Most people think of ransomware when they think of hackers. This involves people breaking into systems and demanding payment to unblock the data or system they have blocked. This is a very real concern, and the food processing industry alone has as many as 100 or more ransomware attacks per year. However, ransomware is not the food and agriculture sector’s only risk. This new government fact sheet focuses instead on industrial control systems that are attacked not to be extorted for ransom but rather to destroy the systems and negatively affect our nation’s critical infrastructure.
By exploiting software weaknesses, weak passwords, and passwords without two-factor authorization for internet-connected operational technology (OT) devices, pro-Russia hacktivists can cause disruptions that could range from mildly annoying to catastrophic. For example, already in 2024 pro-Russia hacktivists have manipulated access points known as human machine interfaces (HMIs) at water and wastewater systems in North America and Europe. The hackers altered machine settings, turned off alarm mechanisms, and changed administrative passwords to lock out operators.
While disruptions like these are — for now — smaller scale, a targeted attack that could disrupt or destroy enough infrastructure to cause chaos remains a real risk. For dairy, that risk is largely borne by processors, which have many more internet-connected systems than an average dairy farm. Still, the risk to farms rises as more dairies integrate high-tech and internet-connected devices into their operations. Processors and farms should be particularly diligent with any internet-connected devices that could cause serious harm if compromised, such as refrigeration equipment or rotary and robotic milking equipment.
The fact sheet linked above identifies numerous resources that help improve an entity’s cybersecurity, along with several recommendations that will help ward off ransomware attacks and attacks on OT. Among many holistic and system-wide mitigations, government agencies recommend three actions to take today if you have systems that may be open to attack:
NMPF will continue the dialog on this issue with federal partners and will keep the dairy industry informed. In the meantime, everyone is encouraged to share the government fact sheet with anyone who might find it useful.
This column originally appeared in Hoard’s Dairyman Intel on July 11, 2024.
Dairy farmers have reasons to be pleased with the draft proposal for Federal Milk Marketing Order modernization, NMPF Executive Vice President Alan Bjerga said in an interview with Dairy Radio Now. That said, the process isn’t complete. Farmers still have a 60-day comment period and a final producer vote before any final proposal is implemented. NMPF is ready to lead, as it has throughout, Bjerga said.
By Peter Vitaliano, Vice President, Economic Policy & Market Research, NMPF
The April 1 deadline for interested parties to submit post-hearing briefs summing up their arguments for changes to the Federal Milk Marketing Orders (FMMO) has passed. Now that participants in USDA’s record-length FMMO hearing having had their final say, it’s time for USDA to review the complete hearing record and formulate its recommended decision, which should be reported around July 1.
The National Milk Producers Federation offered by far the most comprehensive and constructive set of proposals for effecting long-overdue updates to the federal order pricing formulas. Our brief reemphasized that updating formulas to reflect the dynamically changing structure of the U.S. dairy industry is critically important for the order program to achieve its basic purposes of ensuring an adequate supply of milk for fluid milk use, promoting orderly marketing, and providing adequate prices to dairy farmers for doing so. NMPF’s five specific proposals put farmers first, in keeping with the FMMO mission. They also have very broad support from groups and individuals representing dairy farmer interests.
By contrast, the major hearing participants representing processors opposed most of the hearing’s 21 proposals, including NMPF’s proposals to raise the Class III and Class IV skim milk component composition factors, remove barrel cheese from the protein component price formula, and update the Class I differentials to reflect current costs of supplying milk for fluid processing. Advocacy by proprietaries focused primarily on just two issues: the particularly high profile matters of the make allowances and the Class I mover.
While all parties to the hearing broadly agreed that the make allowances in the orders’ component pricing formulas need to be updated in stages — due largely to how much current costs likely exceed the current make allowances — hearing participants significantly disagreed on specifically how to do so. NMPF and its member cooperatives argued that USDA needs to have the authority and the directive to conduct regular mandatory, audited studies of manufacturing costs and yield factors so the industry, and dairy farmers in particular, can have confidence that the numbers are truly accurate — certainly more accurate than the voluntary cost studies that have more holes than Swiss cheese. All parties support mandatory studies, which almost certainly will be included in the upcoming farm bill. But proprietary manufacturer interests have requested that substantial increases, based only on voluntary studies, be fully implemented with a relatively short phase-in period, a move that would significantly harm dairy farmer incomes.
NMPF and other parties representing dairy farmer interests also universally support returning to the “higher of” Class I mover, a position equally strongly opposed by proprietary processor interests. No one supports the current “average of” mover, with its 74-cent per hundredweight fixed factor, but proprietary interests lined up behind keeping the average of mechanism with an adjustable factor that would mimic, with considerable lags, the higher of mover. This approach, done in the name of improving risk management, unfortunately mutes the immediate market signals the higher of approach sends. It also offers cold comfort to dairies that might go out of business because of a lower mover and don’t have the lag time to wait for a make-up adjustment later.
A low point in the hearing from the standpoint of farmer interests was reached when a group of proprietary fluid processors pushed back against NMPF’s carefully worked out proposal to increase the Class I differentials by proposing instead to eliminate the fixed portion of the current ones, which would effectively erase any difference between Class I and the manufacturing class prices in many orders and render them unworkable. It garnered no support from any other party.
But for all the controversy seen thus far, soon it will all be superseded by USDA’s plan. NMPF remains hopeful that careful thinking and attention to the purpose and mission of federal orders carries the day. We’re confident in a positive outcome.
This column originally appeared in Hoard’s Dairyman Intel on April 15, 2024.
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NMPF Executive Vice President Jaime Castaneda discusses efforts to expand dairy market access at recent World Trade Organization meetings in Abu Dhabi in an interview with the Red River Radio Network. Castaneda also discusses trade relations with India and the importance of the NMPF-led Cooperatives Working Together program for the future of U.S. dairy exports.
NMPF’s Stephen Cain provides Dairy Radio Now listeners a summary of what USDA will do now that its five-month-long national milk pricing hearing concluded at the end of January. NMPF and other parties will soon submit post-hearing briefs, and the USDA is expected to then weigh the evidence presented by witnesses and issue a draft proposal by mid-summer.
NMPF’s Chris Galen tells Dairy Radio Now listeners about the major national policy developments expected to top the headlines in early 2024. These include efforts to fund the government, including agencies like the USDA. Lawmakers also have to complete work on a new Farm Bill prior before the political focus shifts away from Washington toward the 2024 election campaign.
NMPF Executive Vice President Alan Bjerga speaks with RFD-TV about how all of agriculture needs to fight for the integrity of trade agreements in the wake of a USMCA dispute panel decision that failed to protect U.S. access to Canada’s market. The President’s Export Council, with member co-op Land O’Lakes representing farmers, discussed the importance of market access in a White House meeting on Wednesday. Bjerga also talked about the resumption of the USDA Federal Milk Marketing Order hearing in Indiana this week, and how repeated delays aren’t helpful for milk producers.
NMPF’s annual cheese contest, held in conjunction with its annual meeting, has evolved from a quality-improvement initiative to a showcase of some of the world’s top cheeses, as produced by NMPF member cooperatives. RFD-TV goes behind the scenes to talk with cheese judges, contest coordinators and winners to show how the contest — which now features other dairy products — encourages the best in NMPF co-ops, and the best in cheesemaking as well.
NMPF Board of Directors Chairman Randy Mooney of Dairy Farmers of America explains the organization’s role as the essential advocate for dairy farmers in Washington and how the organization works with other groups to advance industry prosperity in an interview with RFD-TV. Mooney also talks about what challenges the industry faces and how resilience is the key to future success. The segment also highlights Prairie Farms’ overall win in this year’s NMPF cheese contest.
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