Tag: dairy exports

CWT-Assisted Dairy Export Sales for 2021 Reach Nearly 1.5 Billion Pounds

Posted on by Theresa Sweeney

Despite not taking bids for two weeks during December breaks, CWT member cooperatives secured 41 contracts in December adding 3.5 million pounds of American-type cheeses, 105,000 pounds of butter, 44,000 pounds of whole milk powder, 767,000 pounds of cream cheese and 300,000 pounds of anhydrous milkfat to CWT-assisted sales in 2021. These products will go customers in the Caribbean, Asia, Middle East-North Africa and South America, and will be shipped from December 2021 through June 2022.

CWT-assisted dairy product sales contracts for 2021 total 53.1 million pounds of American-type cheese, 16 million pounds of butter, 6.4 million pounds of anhydrous milkfat, 12.2 million pounds of cream cheese and 45.1 million pounds of whole milk powder. This brings the total milk equivalent for the year to 1.447 billion 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.

USDEC and NMPF Applaud USDA, DOT Strong Message of Support for Agricultural Exporters

Posted on by Theresa Sweeney

On behalf of dairy farmers and manufacturers across the country, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) praised yesterday’s strong message from the U.S. Department of Agriculture (USDA) and the U.S. Department of Transportation (DOT) urging the world’s leading ocean carriers to reform their practices to provide better service to U.S. agricultural exporters. The letter specifically referenced the need to expand use of available West Coast terminal capacity and to “restore reciprocal treatment of imports and exports [which] is inherent in trade.”

USDEC and NMPF repeatedly met with USDA and DOT officials as well as the White House over the past several months to urge a greater Administration focus on the shipping supply chain crisis’s impact on agricultural exporters. The dairy organizations have urged the Administration to call out profiteering by foreign-owned carriers at the expense of dairy exporters and take steps to address the supply chain crisis that’s cost the dairy industry $1.3 billion over just the first three quarters of 2021.

Yesterday’s letter was a key step in the right direction and builds on last week’s successful passage of House legislation designed to curb some of the bad-faith practices by ocean carriers. USDA and DOT noted that, “This imbalance is not sustainable and contributes to the logjam of empty containers clogging ports. The poor service and refusal to serve customers when the empty containers are clearly available are unacceptable and, if not resolved quickly, may require further examination and action by the Federal Maritime Commission.”

“Dairy exporters are enduring tremendous challenges in getting their high-quality products to customers in overseas markets, which puts our industry’s reputation as a reliable supplier at risk. Our competitors in the European Union and Oceania are eager to swoop in and scoop up those sales,” said Krysta Harden, president and CEO of USDEC. “USDEC commends the Administration’s recognition that the current situation facing our dairy exporters cannot continue and strongly supports further steps by the Federal Maritime Commission and other Administration entities to drive change swiftly.”

“Dairy farmers and their cooperatives have invested significantly in painstakingly cultivating export markets to help meet the growing global demand for dairy. This year’s shipping supply chain crisis has created enormous upheaval in maintaining those sales, which are so critical to the overall demand for American milk,” said Jim Mulhern, president and CEO of NMPF. “Dairy farmers strongly support USDA and DOT’s castigation of ocean shippers’ abusive practices and urge the Administration to take the steps necessary to bring about meaningful reforms in export access for our dairy industry.”

Both organizations formed an Export Supply Chain Working Group earlier this year and have worked on a range of initiatives to address the shipping crisis including the passage of HR 4996 and work to drive further Congressional advancement of this legislation. Steps by the Administration to fully use all existing authorities are a crucial complement to that ongoing legislative reform effort.

Ports Progress Critical, NMPF’s Rice Says

Posted on by Theresa Sweeney

Overwhelming support received last week in the U.S. House of Representatives for badly needed shipping-policy reforms is a crucial step, but far from the only one needed, to ensure reliable exports of U.S. dairy products to growing overseas markets, said Tony Rice, trade policy manager for NMPF and the U.S. Dairy Export Council, in a Dairy Defined podcast released today.

Since the Ocean Shipping Reform Act passed the House last week, “We are focused on keeping up that pressure and ensuring both in Congress and both with the administration that there are fixes out there and the fixes are not just a one-time or one-off, that these are going to be some fundamental reforms that are much needed in this industry to ensure that this situation doesn’t happen again,” Rice said.

Rice explains the complexities of challenges facing U.S. port traffic, with ships experiencing powerful financial incentives to quickly travel to Asia without carrying farm exports necessary to boost rural incomes and the U.S. economy. Rice also explains why public policy changes are essential, and how NMPF is working for full congressional package of reforms. 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 Works to Preserve Market Access to the European Union

Posted on by Theresa Sweeney

After months of dedicated work by NMPF and USDEC, both organizations welcomed USDA’s Agriculture Marketing Service (AMS) Nov. 22 announcement to add the new EU dairy certificates, as well as the associated transit versions of each dairy certificate, to its ATLAS system. AMS plans to begin issuing the new dairy certificates in early December.

The European Union has long sought to stymie market access for dairy imports through a litany of nontariff barriers, including complex certification requirements. The late 2020 announcement of new EU certificates for dairy products and composite products (i.e., processed foods containing both animal sourced ingredients) were yet another hurdle that had the potential to completely choke off U.S. access to that market. NMPF and USDEC adopted a multi-track approach to the issue:

  • Successfully working with the U.S. government and Congress to secure a compliance approach that did not impose onerous new burdens on dairy farmers and manufacturers as well an initial delay of the certificate implementation date; and
  • Ensuring that USDA was equipped with the authorization and tools necessary ensure that the certificates could be issued well ahead of the extended deadline to avoid shipping delay problems. These efforts helped ensure that the certificates could be implemented in a timely manner even as the U.S. government continues to work to resolve challenges in other product areas so that dairy trade to and through the European Union can continue uninterrupted.

NMPF’s Mulhern Speaks at Annual Meeting

Posted on by Alan Bjerga

 

NMPF President and CEO Jim Mulhern speaks at the organization’s annual meeting in Las Vegas, NV on Nov. 16.

NMPF’s Morris Says Ports Crisis Requires Federal Action

Posted on by Alan Bjerga

 

Current supply chain strains at U.S. ports will need improvements in federal policies to provide both short- and longer-term solutions, NMPF Senior Vice President for Trade Shawna Morris said in an interview with the National Association of Farm Broadcasters. “The fact that the market is not improving, that things are not sorting themselves out and that we don’t seem to be around the corner,” Morris said, “really points to the need for more government introduction into this process through the legislative side and through the administration side to help deal with this.”

NMPF’s Castaneda Discusses Ports Backup

Posted on by Alan Bjerga

 

NMPF and U.S. Dairy Export Council Executive Vice President Jaime Castaneda discusses backups at U.S. ports, how delays in dairy shipments can threaten trade reliability and relationships, and how federal policy can be improved to alleviate dairy export challenges on the Adams on Agriculture podcast.

Dairy Groups Applaud Major Climate-Smart Agricultural Initiatives Touted at COP26

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) applauded the U.S. Department of Agriculture’s announcement this week that it has joined the Pathways to Dairy Net Zero initiative as a formal supporter. The dairy groups also welcomed this week’s formal launch of the Agriculture Innovation Mission (AIM) for Climate.

These global agriculture efforts align with the approach U.S. dairy is taking to reduce its environmental impact through its Net Zero Initiative, which aims to achieve net-zero greenhouse gas emissions by 2050 and will help the U.S. dairy industry be an environmental solution now and in the future.

Pathways to Dairy Net Zero is a ground-breaking, multi-stakeholder initiative that aims to accelerate climate change action across the dairy sector. It is well-aligned with the U.S. dairy industry’s own Net Zero Initiative, launched last year, that reinforces its leadership within global agriculture as a source of climate solutions. AIM for Climate accelerates climate-smart agriculture and food systems innovation over the next five years by embracing practical solutions identified through investments in research and pilot programs. This is very similar to dairy’s Net Zero approach.

To help demonstrate the U.S. dairy industry’s commitment to sustainability and ensure our farmers, processors and exporters are well represented in this important global forum, USDEC’s senior vice president for Sustainability and Multilateral Affairs, Nick Gardner, was on the ground in Glasgow for COP26 events.

“Dairy farmers are proud to be part of the U.S. Dairy Net Zero Initiative to do our part in driving toward a global climate solution,” said Jim Mulhern, president, and CEO of NMPF. “USDA’s formal support for the Pathways to Dairy Net Zero, which NMPF also supports, will help to further catalyze this global effort by dairy sectors and governments around the world to foster sustainable production practices. We commend USDA’s global leadership in charting an incentive-based approach to encouraging sustainably managed livestock systems that can help feed a growing global population while minimizing environmental impacts.”

“With the world’s lowest greenhouse gas footprint per gallon of milk, U.S. dairy leads the world in sustainability. Yet we’re also deeply committed to making further progress as we work together with others in the U.S. and around the world to create environmental solutions that make U.S. dairy ever more competitive globally,” said Krysta Harden, president and CEO of USDEC. “Working together and with a firm commitment to the positive role that innovation and productivity can play in the sustainability arena, we’ll be able to help create the sustainable future so important to us all.”

NMPF Urges USTR to Expand Dairy Market Access Opportunities

Posted on by Theresa Sweeney

NMPF joined with the U.S. Dairy Export Council on Oct. 27 in filing with the U.S. Trade Representative’s Office a highly detailed set of comments outlining barriers to U.S. dairy exports. The submission was made to inform USTR’s National Trade Estimate Report on Foreign Trade Barriers, an annual compilation of constraints around the world to U.S. exports.

NMPF emphasized the importance of expanding market access opportunities to better support the U.S. dairy sector, urging the pursuit of new agreements and tariff reductions with key trading partners. The comments also highlighted nontariff trade barriers, particularly those driven by protectionism or overly burdensome policy prescriptions, that make it harder than necessary for U.S. dairy companies to compete in foreign markets. For instance, extensive sections highlight ongoing issues with key trading partners like Mexico (product standards revisions, conformity assessments, geographical indications) and the EU (the bloc’s intervention scheme, certifications, border measures, geographical indications, Farm to Fork plans). Newer barrier areas were also covered, such as Colombia’s milk powder safeguards investigation, Indonesia’s excessively slow dairy facility registration process, and Egypt’s WTO-illegal single-source halal certifier mandate, among other issues.

In total, the comments outline trade issues with 30 countries or regions, as well as concerns related to Codex, the World Health Organization and the World Trade Organization.

NMPF Continues Push on Supply Chain Constraints

Posted on by Theresa Sweeney

While national headlines are dominated with news of delayed imports threatening to put a damper on the upcoming holidays as a result of supply chain disruptions, U.S. dairy exporters are facing an increasing, and in some ways opposite, difficulty: Securing containers and cargo ship space for their products.

That issue is gaining broader attention as well, thanks in large part to the efforts of the U.S. Dairy Export Council (USDEC) and NMPF, which along with other ag organizations and companies are leading the policy push for supply chain improvements.

That work commanded a larger spotlight recently as Congress convened to examine the supply chain impacts on American agriculture and related sectors. The current supply chain crisis could cause “irreparable harm” to agriculture, Mike Durkin, President and CEO of Leprino Foods, said at a U.S. House Agriculture Committee hearing Nov. 3 about how supply chain issues are affecting export markets for Leprino and the U.S. dairy industry. USDEC and NMPF voiced strong support for Durkin’s call for U.S. government action to more effectively tackle the shipping crisis and its effects on dairy farmers and manufacturers.

“The supply chain challenges have significantly impacted our business, and we don’t expect them to ease anytime soon. I’m here to talk about a critical component of this disruption that has not received much attention – exports,” Durkin said. “This export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.”

Durkin called on Congress to act on ocean shipping legislation, address critical transport-industry labor shortages, increase port hours of operation, and take other steps to help American agriculture producers reach their foreign markets effectively.

Even as cargos coming from Asia are at full capacity, 72% of containers leaving major California ports are leaving empty – a record volume. While supply and demand issues are a large part of the problem, foreign-owned carrier lines have taken advantage of the situation to forgo loading U.S. exports in favor of loading empties for a quick turnaround toward more lucrative Asian imports. As a result, continually rolled bookings, unprecedented shipping rates, product deterioration, and high detention and demurrage fees have cost American dairy exporters nearly $1 billion through just the first seven months of the year. As a result, even as international demand for dairy products reaches records, U.S. shippers are losing market share to competitors as the United States risks its reputation as a reliable supplier.

NMPF, USDEC and policy partners continue to drive home with the administration and Congress the long-term implications this crisis will have on dairy exporters unless measures are taken to reign in unwarranted carrier behavior. That work has helped to build bipartisan support in Congress for the Ocean Shipping Reform Act (H.R. 4996), which now has 65 cosponsors. A briefing paper on the legislation is here; a new “frequently-asked questions” document compiled by NMPF can be found here. In October, NMPF and USDEC urged the Department of Transportation to voice support for the legislation and provided detailed recommendations on several other concrete steps that DOT and its interagency partners could take to help address the shipping crisis.

The past month has seen a spate of steps announced to begin to help address the supply chain problems. The announced follow a series of meetings NMPF, USDEC were the sole dairy organizations that a long with  a few other agricultural leaders held with officials in September, including with White House Ports Envoy John Porcari and other White House supply chain task force staff, to help drive home the depth and complexity of the shipping-related challenges facing dairy exporters.:

  • As a partial response to NMPF sharing specific data on the impact of the issue and direct advocacy, USDA announced Sept. 29 that the agency will provide $500 million “to provide relief from agricultural market disruption, such as increased transportation challenges, availability and cost of certain materials, and other near-term obstacles related to the marketing and distribution of certain commodities.” NMPF will be sharing member feedback on how the funds could be best used to mitigate the congestion in a meeting with USDA officials next week.
  • On Oct. 13, following months of intensive advocacy to the administration from NMPF, President Biden announced a series of public and private commitments from ports, dockworkers and large companies aimed at addressing port bottlenecks that have been snarling supply chains for nearly a year. The commitments included
    • An expansion to 24/7 operations at the Ports of Los Angeles and Long Beach
    • An International Longshore and Warehouse Union announcement that its members are willing to work the necessary extra shifts, and
    • A pledge from six large companies – Walmart, UPS, FedEx, Samsung, Home Depot and Target – to use the expanded hours to move more cargo off the docks so ships can come to shore faster.
  • On Oct. 20, California Governor Gavin Newsom issued an executive order that directs state agencies to identify state, federal and private land for short-term container storage; extend a temporary exemption to current gross vehicle limits to priority freight routes; and establish workforce training and education programs.

NMPF encourages the dairy farming community to reach out to elected officials to voice support for the proposed House legislation and highlight the importance of action to deal with the shipping crisis impacting dairy exports.

Dairy CEO Says Supply Chain Crisis Could Permanently Harm U.S. Agriculture

Posted on by Theresa Sweeney

The current supply chain crisis could cause “irreparable harm” to agriculture, Mike Durkin, President and CEO of Leprino Foods, said in testimony prepared for a U.S. House Agriculture Committee hearing today about how supply chain issues are affecting export markets for Leprino and the U.S. dairy industry. The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) voiced strong support for Durkin’s call for U.S. government action to more effectively tackle the shipping crisis and its effects on dairy farmers and manufacturers.

“The supply chain challenges have significantly impacted our business, and we don’t expect them to ease anytime soon. I’m here to talk about a critical component of this disruption that has not received much attention – exports,” Durkin said. “This export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.”

Durkin called on Congress to act on ocean shipping legislation, address critical transport-industry labor shortages, increase port hours of operation, and take other steps to help American agriculture producers reach their foreign markets effectively.

Leprino Foods, the largest purchaser of milk in the United States, is a family-owned, privately held company with 4,500 employees and facilities in Colorado, California, New Mexico, Michigan, Pennsylvania and New York. It supports over 1,000 dairy farms and is the largest producer of mozzarella cheese as well as a leading supplier of dairy nutrition products. Leprino exports 26% of its milk equivalent volume to 55 countries.

Across the industry, approximately one day’s worth of U.S. milk production each week goes to exports, which results in about $6.5 billion in U.S. dairy products being exported to over 133 countries.

“The strain of shipping challenges is taking a heavy toll on dairy exporters, which is why it was so important that the House Agriculture Committee heard today from companies such as Leprino Foods that are doing everything possible to hang onto foreign customers yet are still bearing the brunt of this problem,” said Krysta Harden, president and CEO of USDEC. “Dairy exporters are working hard to get American-made product to foreign customers in a reliable and affordable way, but the present situation can’t be sustained long-term. We need Congress and the Administration to move swiftly to improve the efficiency and fairness of supply chains.”

“Dairy depends on exports, a vital part of the total demand for the milk produced every day by America’s hard-working dairy farmers” said Jim Mulhern, president and CEO of NMPF. “We risk damaging foreign market relationships and long-term customers if we cannot better assure efficient export flows. Leprino Foods provided some important recommendations to Congress to address the supply chain challenges. We hope both they and the Administration act quickly to provide relief.”

Ports Crisis Costing Dairy Farmers, NMPF’s Castaneda Says

Posted on by Alan Bjerga

U.S. dairy exports are being hindered by supply chain backups as U.S. ports, NMPF Executive Vice President Jaime Castaneda says in an interview on RFD-TV. “It is holding up the amount of product that we can export overseas, therefore that actually impacts the price of every single producer in the country,” Castaneda said.