Tag: dairy exports

The Numbers Show It — U.S. Dairy is Growing Globally

Posted on by Theresa Sweeney

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

Posted on by Alan Bjerga

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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

Posted on by Theresa Sweeney

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.

NMPF’s Mulhern Speaks on Tom Vilsack’s Nomination to Lead USDA

Posted on by Alan Bjerga

NMPF President and CEO Jim Mulhern talks about Tom Vilsack’s nomination to become USDA Secretary on Brownfield Ag News. “He has a deep understanding of our industry and frankly, I think a deeper understanding of all of U.S. agriculture,” Mulhern says in the broadcast.

NMPF excited for Vilsack’s White House return

Podcast: Sen. Pat Roberts on His Past and Agriculture’s Future

Posted on by Theresa Sweeney

Senate Agriculture Committee Chairman Pat Roberts is leaving Congress after 40 years in January. The only person to lead both the House and Senate agriculture committees takes with him a wealth of wisdom in agriculture policy – but also holds optimism for agriculture’s ability to get things done in an environment of difficult challenges.

“I would just say that I am very confident that the people who will be taking my place, they have a lot of experience,” Roberts said in a Dairy Defined interview released today. “They’re good folks. I think the same attempt, at least, with regards to making it bipartisan, will continue.”

Roberts, who first came to Washington as a congressional staffer a half-century ago, also reflects on the two farm bills he led — 1996’s Freedom to Farm law and the 2018 bill — as well as one area where he wished he could have done more: his leadership of the Senate Intelligence Committee during the Iraq War. He also said he doesn’t consider his career to be over – without revealing plans, he said that when it comes to farm policy, “I intend to have my finger in the pie somewhere.”

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on iHeartRadio, Apple Podcasts, Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Dairy Industry Applauds USTR Action to Address Canadian TRQ Violations

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) applaud today’s announcement that the U.S. Trade Representative (USTR) will initiate official consultations with Canada to examine the administration of its dairy Tariff Rate Quota (TRQ) obligations. The two organizations, with strong bipartisan backing from Congress, have long raised the alarm about the need to ensure the United States-Mexico-Canada Agreement (USMCA) is fully enforced, due to Canada’s history of undermining its trade commitments.

“USMCA is designed to improve trade with Canada, while modifying some of Canada’s trade-distorting dairy policies. We knew from day one that enforcement would be key to bringing the intended benefits home to America’s dairy industry. I applaud USTR for hearing our concerns and relying on our guidance to take this critical enforcement step to ensure that the agreement is executed in both letter and spirit,” said Tom Vilsack, president and CEO of USDEC. “This is the critical first step, but more work may be needed to ensure Canada complies with its Class 7 related USMCA commitments as well.”

Even prior to its entry into force, USDEC and NMPF monitored Canada’s actions regarding its USMCA commitments and urged Congress and the administration to make this a priority as soon as USMCA entered into force. Canada has distorted its TRQ administration to limit imports from the U.S. Earlier this year, USDEC and NMPF highlighted for USTR and the U.S. Department of Agriculture (USDA) the inconsistencies between Canada’s dairy TRQ allocations and Canada’s USMCA obligations. In a detailed filing submitted to the administration, NMPF and USDEC provided the agencies with a specific legal review of the Canadian TRQ system and an explanation of the negative impacts resulting from them.

“America’s dairy farmers appreciate USTR’s commitment to the fair and transparent enforcement of USMCA. Enforcement has been one of the top priorities of our industry since the final agreement was announced, and we’ve worked diligently to ensure that it remains one of USTR’s top priorities, as well. Only when Canada is held fully accountable to its trade commitments will America’s dairy farmers be able to realize the full benefit of the provisions that the U.S. government worked so hard to secure,” said Jim Mulhern, president and CEO of NMPF. “We look forward to working closely with the incoming administration as well since enforcement efforts are likely to require sustained focus going forward.”

The concerns raised by USDEC and NMPF have been echoed by a broad bipartisan coalition of members of Congress. In August, 104 Representatives sent a letter to USTR and USDA asking for Canada to be held accountable to its trade promises while a letter in the Senate was signed by 25 Senators. USDEC and NMPF commend the continued engagement of so many members of Congress on this important issue.