NMPF’s Senior Vice President for Trade, Shawna Morris, discusses Canada’s latest efforts to evade the USMCA trade deal on the “Adams on Agriculture” podcast.
Tag: dairy exports
Dairy Farmers Reinforce Trade Priorities with Ambassador Tai at Agriculture Event Hosted by Rep. DelBene
The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today thanked Representative Suzan DelBene (D-WA) for hosting U.S. Trade Representative Ambassador Katherine Tai for a roundtable in Burlington, WA to discuss agriculture trade priorities. At the event, Washington farmers and food producers from various sectors, including dairy, raised the importance of implementing a trade policy that expands agricultural exports.
Washington dairy farmers Jeremy Visser and Mike Schoneveld, member-owners of USDEC and NMPF-member Northwest Dairy Association/Darigold, conveyed the importance of exports and global market access for the dairy industry. Visser and Schoneveld praised Rep. DelBene for her leadership on dairy trade issues to help expand opportunities for dairy in international markets.
“NMPF appreciates the hard work that Rep. DelBene has long undertaken to encourage trade policies that help expand American agricultural exports. Her recognition of the critical role that exports play for farmers’ incomes and the rural economy has been central to the pursuit of trade policies that help deliver value to American dairy farmers and expand jobs in America. Dairy farmers are grateful to Ambassador Tai for launching the dispute settlement case against Canada’s restrictive access to U.S. dairy and appreciate Rep. DelBene’s advocacy on this matter as well. At the same time, dairy farmers are also keen to see a proactive trade agenda of opening new markets around the world,” said Jim Mulhern, president and CEO of NMPF.
“As solid as our track record has been to date, America’s dairy industry has not reached its full trade potential on the global stage. Each dairy product that we export – whether it’s cheese, milk powder, or another essential dairy ingredient – has a powerful impact across the entire supply chain. Expanding while also defending market share abroad is critical to U.S. dairy manufacturers and exporters, especially cheese exporters that are encountering barriers disguised by the European Union’s Geographical Indications agenda,” said Krysta Harden, president and CEO of USDEC. “We thank Rep. DelBene for hosting Ambassador Tai to hear from Washington’s agricultural sector directly on how to support that work through new trade agreements, enforcing trade agreements, and resolving trade barriers in other countries.”
Feds Seeking Solutions to Port Problems
Working with the U.S. Dairy Export Council (USDEC) and a group of agricultural organizations, NMPF is now seeing the administration and Congress seeking solutions to widespread concerns within dairy about ongoing ports congestion and unwarranted fees on exports.
President Biden issued an Executive Order, “Promoting Competition in the American Economy,” on July 15 that recognizes the need for executive branch action regarding consolidation and certain business practices in several industries, including the shipping sector. The order establishes the White House Competition Council to coordinate and advance efforts to limit overconcentration, monopolization, and unfair competition in or directly affecting the American economy. Relevant to the ocean shipping concerns, this Council will include the Secretaries of Transportation and Agriculture, as well as the chair of the Federal Maritime Commission (FMC).
The order also includes specific guidance to the FMC to “vigorously enforce the prohibition of unjust and unreasonable practices” regarding shipping fees. Additionally, it requests the FMC’s Shipper Advisory Committee to issue recommendations for improved enforcement of those and related rules, and for the FMC to consider issuing new regulations to improve export shipping conditions. It remains to be seen whether this process will be sufficient to prompt FMC to play a more proactive role in enforcing carriers’ compliance with the Shipping Act. The language regarding recommendations for improved enforcement and new regulations, however, is noteworthy and will help promote legislative options to address the challenge.
NMPF has hired a firm with expertise in maritime issues to closely monitor the implementation of this Executive Order and work with us in pressing for additional action from the administration and Congress.
On the Congressional front, NMPF, in coordination with USDEC, has provided input to proposed legislation from Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD) that extends stronger enforcement authority for the maritime commission to require ocean carriers to comply with guidelines on reasonable carrier practices. The draft legislation would force carriers to certify they are complying with commission guidelines on reasonable detention and demurrage fees, require the carriers to load product if it is at a port and does not exceed safe weight limits, and increases transparency into carrier action.
NMPF will continue to advocate for these important changes to the Shipping Act and continue to seek additional solutions to the ongoing crisis.
NMPF Presses for Delay on New EU Certification Requirements
NMPF’s trade policy team, collaborating with the USDEC, continues to work with the Biden Administration and Congress to press for a delay in onerous European Union (EU) new certification requirements for dairy and composite products, as well as new flexibility from the EU on its overly prescriptive mandates for imports.
NMPF staff have met repeatedly with USDA, USTR and FDA officials to emphasize the issue’s urgency of the issue, outline key concerns and impacts of the EU certification scheme, and explore routes forward. U.S. Trade Representative Katherine Tai has engaged on the issue in June, and USDA Secretary Tom Vilsack has been active in pressing the EU for relief as well.
To complement this effort, NMPF and USDEC worked with leading members of Congress to support a Congressional letter sent on June 14 to the EU Ambassador to the U.S. Stavros Lambrinidis. The letter urged the EU to extend flexibility to these regulatory changes that are unduly prescriptive and ensure that U.S. dairy exports to the EU do not come to an abrupt stop. An additional Congressional spotlight was placed on the urgent need for resolution on June 24 when Sen. Thune (R-SD) emphasized the urgency of relief on the certification issue with Deputy USTR Nominee Jayme White during his confirmation hearing. White assured the Senate Finance Committee that he would prioritize resolution of the issue.
NMPF continues to insist that this and the wider set of challenges the U.S. dairy sector faces in shipping to the EU must be addressed more effectively.
“U.S. exporters continually have to chase new mandates by the European Union to retain our current access, even when there are no safety concerns with American dairy products,” said Jim Mulhern, NMPF President and CEO. “Too often dairy trade with the EU is a one-way street. The EU’s frequent approach to import requirements is to mandate prescriptive procedures that U.S. dairy exporters need to make time-consuming changes to conform just to retain access to that market for our safe products. The products we export today are entirely safe; new EU mandates that would seek to force the U.S. to change our regulatory system match theirs would do nothing to enhance that.”
Congress Hears from Dairy on Port Problems
NMPF is seeking a wide range of solutions, including legislative ones, to problems at U.S. ports that continue to harm U.S. dairy exports.
NMPF and the U.S. Dairy Export Council (USDEC) are calling for legislation to amend the Shipping Act to strengthen the Federal Maritime Commission’s (FMC) authority to enforce reasonable ocean carrier guidelines to ensure more normalized trade opportunities for U.S. agricultural exports, working with the Agriculture Transportation Coalition and Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD).
Months of NMPF and USDEC efforts to raise congressional attention to port issues and exports also bore fruit when the House Subcommittee on Coast Guard and Maritime Transportation held an oversight hearing on June 15 highlighting the ongoing delays and increased costs for exports at U.S. ports. NMPF, USDEC and other agricultural organizations have actively encouraged the subcommittee to take this step to bring more focus to bear on the challenges U.S. exporters face.
Members of Congress at the hearing heard from U.S. agricultural organizations, FMC Commissioners Dan Maffei and Rebecca Dye, and port operations groups. NMPF President and CEO Jim Mulhern said in remarks issued the same day that “dairy producers throughout the country are feeling the consequences of port congestion as delays in loading U.S. dairy exports onto carriers creates a chilling effect on farm-gate milk prices.” NMPF and USDEC have particularly urged the commission to require ocean carriers to certify that they are complying with the agency’s guidelines.
The Numbers Show It — U.S. Dairy is Growing Globally
U.S. dairy products are increasingly competitive globally – a fact shown in surging export numbers, according to two top dairy economists in the National Milk Producers Federation’s latest Dairy Defined podcast.
“Global demand is fundamentally really strong right now,” said Wiliam Loux, the Director of Global Trade Analysis for the U.S. Dairy Export Council. “Consumers within China are just wanting a lot of dairy. And Mexico, after a tough year with the COVID-19 pandemic and some economic issues, is recovering. Southeast Asia, the Middle East, all need product too.”
Loux was joined by Stephen Cain, an economic analyst for NMPF and USDEC, who noted that, relative to its main global competitors, the United States may be best positioned to take advantage of further growth in international dairy markets.
“The EU and New Zealand are facing substantial obstacles in growing their herd. We’re the only one that has the capacity to add cows, add growth to meet that growing demand,” Cain said. “Our ability to meet that demand, and adding cows and adding production, is really going to help serve us in terms of the global impact of U.S. dairy on the marketplace.”
The full podcast is here. You can also find the podcast on Apple Podcasts, Spotify, and Google Podcasts. A transcript is also available here. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.
Ag Groups Ask Congress to Pass Infrastructure Package Quickly
A group of bipartisan lawmakers is ready to present an infrastructure package to the Senate. It comes as a coalition of ag groups, Farmers for Free Trade, urges Congress to act quickly. The group includes farmers, truckers, and port workers who say that upgrades are vital if we are to compete on a global scale. The National Milk Producers Federation is among the coalition. NMPF Senior Vice President for Communications Alan Bjerga recently discussed the biggest hurdles facing the milk industry on RFD-TV.
Port Congestion Problems Continue for U.S. Dairy Exporters
NMPF, working together with the U.S. Dairy Export Council, is continuing to actively raise the visibility of extensive port-related problems affecting exports of U.S. dairy products with federal officials while engaging on trying to find solutions. These challenges have included backlogs, delays, lack of storage for delayed shipments, and increased costs that have bedeviled shippers and impeded exports since last Fall.
NMPF staff met with key staff of the Senate Committee on Commerce, Science and Transportation on April 13 to discuss the challenges and ways in which Congress could help. Staff also participated in a meeting on April 19 convened with senior officials at the USDA and the U.S. Department of Transportation, which provided NMPF and groups representing other U.S. agricultural sectors the opportunity to outline problems facing U.S. exporters and press for faster resolutions.
On April 27, NMPF and several of its members joined together in sending a letter signed by almost 300 companies and organizations to the Department of Transportation urging further steps on this issue to help provide relief to U.S. agricultural exporters. NMPF has also been actively working to urge Congressional support for language in the Transportation Appropriations bill that would provide greater direction to the Federal Maritime Commission regarding its analysis of what measures could be taken to help alleviate the export crisis.
NMPF asks for help from the membership to share any information that quantifies the impact of the port problems. Questions and information can be directed to Tony Rice (trice@nmpf.org).
First Quarter 2021 CWT-Assisted Export Sales Top 42 Million Pounds of Product
In the first three months of 2021, CWT assisted member cooperatives in securing 218 contracts to sell 11.8 million pounds of American-type cheeses, 8.8 million pounds of butter, 3.6 million pounds of anhydrous milkfat (AMF), 13.5 million pounds of whole milk powder and 4.4 million pounds of cream cheese. The milk equivalent of these 2021 contracts is 540 million pounds on a milkfat basis. The product is going to over 100 customers in 26 countries around the world. All the product will be delivered in 2021.
The year-to-date totals include March contracts for 3.7 million pounds of cheese, 1.5 million pounds of butter, 1.6 million pounds of AMF, 7 million pounds of whole milk powder and 901,691 pounds of cream cheese.
Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program expands the demand for U.S. dairy products. This, in turn, positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
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.
All cooperatives and dairy farmers are encouraged to add their support to this important program. Membership forms are available at http://www.cwt.coop/membership.
Trade Agreement Partners Colombia, Panama Weigh Dairy Import Restrictions
NMPF, working in concert with USDEC, provided early warning to U.S. trade officials in February regarding brewing safeguard tariff and regulatory threats in two key U.S. Free Trade Agreement partners’ markets: Panama and Colombia. In discussions with USTR and USDA officials in February, NMPF and USDEC underscored the importance of preserving commitments made by each country through the free trade agreements in place with the U.S. for nearly a decade.
Sparked by growing protectionist sentiment among domestic dairy interests, the Colombian and Panamanian governments are faced with calls to apply tariff safeguards on imported cheese and milk powder from the U.S. In the case of Panama, government official have used safeguard tariffs on certain cheese and yogurt products since imports have reached levels that automatically trigger the permissible safeguards under the FTA. In the case of Colombia, local dairy producers are campaigning for safeguard tariffs to be levied on U.S. milk powder imports, a move that would upend U.S. access to its 10th-largest export market. Additionally, each government is considering labeling and other regulatory changes aimed at making U.S. dairy imports more difficult.
As both countries consider protectionist measures, NMPF will continue to work with USDEC and the U.S. government to preserve access to these markets.
ITC Blueberries Decision Heads Off Potential Retaliation Concerns
The US International Trade Commission (ITC) unanimously voted Feb. 11 to reject import restrictions on blueberries from Mexico, Canada, Argentina, Chile and Peru, ending the threat of retaliatory tariffs against U.S. dairy exports.
In testimony before USTR in August, NMPF Senior Vice President Jaime Castaneda urged the commission to avoid putting U.S. dairy producers again in the crosshairs of a trade dispute with Mexico. Per U.S. census data, over $1.4 billion of U.S. dairy products were sold to Mexico in 2020 – a market that would be at risk if tariffs on blueberry imports from Mexico are imposed.
NMPF in December joined 34 other agriculture and food groups to write the US Trade Representative (USTR) opposing limitations on blueberry imports. This broader coalition effort also secured a bipartisan, bicameral Congressional letter from Senator Kyrsten Sinema (D-AZ) and Senator Jerry Moran (R-KS) arguing against action that would invite subsequent retaliation against U.S. agricultural exports.
Questionable Shipping Practices Prompt NMPF Action with Maritime Commission
NMPF staff, working together with the U.S. Dairy Export Council (USDEC), joined several agriculture organizations last month to press the Federal Maritime Commission to help address severe shipping-related challenges plaguing dairy and other U.S. agricultural sectors.
A shift in U.S. consumer preferences for stay-at-home goods has led to a surge in imports from Asia, driving up container demand around the Pacific Rim. Meanwhile, several agricultural exporters, including U.S. dairy, are struggling with cancelled shipments, exorbitant detention and demurrage charges, and broken contracts as shipping companies are moving containers and vessels quickly back to Asia. Freight costs are netting 20 to 30 times more from Asia to the U.S. than vice versa and carriers are restricting availability of containers to rural points of origin in the interior U.S., preferring coastal drop-off and pickup.
In multiple meetings with maritime commissioners in February, NMPF and other organizations representing agricultural exporters stressed the urgent need to step-up regulatory compliance on detention and demurrage guidelines issued last year and to explore ways to address the container shortage issues. Alongside these organizations, NMPF is pursuing congressional outreach to encourage tougher FMC enforcement while working with other sectors to evaluate the need for changes to legislation to better equip the FMC to deal with such issues.
