Tag: dairy exports

Dairy is a staple in spite of inflation

Posted on by Alan Bjerga

By Allison Wilton, Coordinator, Economic Policy and Global Analysis, NMPF

U.S. dairy consumption has been steadily rising for years, reaching more than 11.5 million metric tons (milk solids equivalent) in 2022. This is up 15% from ten years ago. As one of the highest dairy consuming countries in the world, U.S. per capita consumption of cheese, yogurt, and butter has grown steadily for years. Recent food trends are bringing fun and innovative twists on common dairy products; as examples, butter boards went viral last year as a new “charcuterie” option, and health influencers are raving about the benefits of adding cottage cheese into recipes for higher protein and healthy fats. Ultimately, dairy demand remains resilient even when facing significant headwinds.Dairy’s resiliency is true on a global basis, too. On average, 13% of the global consumer’s protein came from dairy in 2022, a rise compared to 2021 and a significant leap over the past decade. In fact, global dairy protein consumption has grown by nearly 25% over the last decade.

 

Still, despite that resiliency, inflation and economic uncertainty have affected consumers and the dairy industry.

Inflation had mixed effects

In 2022, consumers started to really take notice of rising grocery and food costs. Prices for goods across all categories, not just dairy, were starting to climb more than usual due to several factors, including the ongoing COVID-19 pandemic and international supply chain disruptions. Inflation reached a peak in summer of 2022, and though it has eased slightly since, prices are still significantly higher compared to three years ago.

 

Source: NMPF-USDEC, IRI, NPD

Grocery and food items were some of the most prevalent and hardest hit areas by inflation, and dairy products were not immune. The price of dairy in food and beverage stores rose by more than 15% in 2022 compared to 2021, the highest jump in prices of all categories. The value of dairy sales grew significantly in 2022. Even so, and although this can partially be attributed to the higher prices, the growth in dairy sales (up 14.7%) outpaced that of non-dairy categories (8.3% greater).

Additionally, though all categories’ volume fell, the volume of dairy products sold fell less than that of non-dairy products. In other words: even though dairy had higher inflation rates, the slide in volume sold was less than the dip of other food and beverage categories. Shoppers were continuing to put dairy products in their cart despite the higher prices. That’s a testament to the dairy’s place as a dietary staple for many around the country and the world.

Dairy demand persists

Consumers prefer dairy products over plant-based alternatives: sales of cheese, frozen products, and other dairy goods dwarf plant-based imitations in stores. As even more alternatives fill shelves, dairy doesn’t lose shelf space. Rather, per capita consumption in several areas have grown, including cheese (up 17% from 2020), yogurt (up 5%), and butter (up 21%). The dairy aisle remains of top value when compared to other aisles within major food and beverage stores and is one of the fastest growing aisles in terms of sales dollars, topping $75 billion in 2022.

Cheese is expected to grow only more popular as time goes on, as is butter and yogurt. The U.S. dairy industry is poised to meet this demand as the industry advances in the coming years. As inflation wanes, consumers may return to trying higher value dairy products, of which there is no shortage. U.S. dairy will continue to be a major part of consumers’ diets and shopping carts.

This column originally appeared in Hoard’s Dairyman Intel on Nov. 9, 2023.

NMPF Advocacy Helps Boost Market Development Funding

Posted on by Theresa Sweeney

The U.S. Department of Agriculture announced Oct. 23 it will direct $1.3 billion from the Commodity Credit Corporation (CCC) to establish a Regional Trade Promotion Program, and another $1 billion to commodity-based international food aid, after significant lobbying from NMPF and encouragement from the U.S. Dairy Export Council.

The funding announcement was prompted by a Sept. 6 letter from Senate Agriculture Committee Chair Debbie Stabenow, D-MI, and Ranking Member John Boozman, R-AR, calling on the agency to expand CCC authority to fund export promotion and food aid initiatives. NMPF has long advocated for Congress to double funding for the Market Access Program and Foreign Market Development program, which significantly advance U.S. dairy’s reach overseas but have not received a funding boost in more 16 years. This U.S. investment will help bridge the gap in export promotion funding that U.S. agriculture receives in comparison to foreign competitors.

USDEC’s Harden discusses USDA Support for Trade

Posted on by Alan Bjerga

Krysta Harden, president and CEO of the U.S. Dairy Export Council, discusses the value of USDA support for U.S. agricultural exports in an interview with RFD-TV from the World Food Prize in Des Moines, IA. The department said Oct. 24 it plans to devote $2.3 billion from the Commodity Credit Corporation to promoting better market opportunities for U.S. agricultural producers and expanding food aid to support communities in need around the world, a move advocated for by NMPF and USDEC.

NMPF and USDEC Commend Significant New Investment in Export Market Promotion

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) praised today’s announcement from the U.S. Department of Agriculture that it plans to devote $2.3 billion from the Commodity Credit Corporation to promoting better market opportunities for U.S. agricultural producers and expanding food aid to support communities in need around the world.

The expanded export support program and food aid were requested by Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, and Ranking Member Sen. John Boozman, R-AR, in late August.  USDA will devote $1.3 billion to establishing a Regional Agricultural Trade Promotion Program, and $1 billion to commodity-based international food aid.

“The U.S. dairy community is grateful for the USDA’s decision to invest in supporting the cultivation of enhanced international market opportunities for America’s dairy farmers and cooperatives. We thank Senators Stabenow and Boozman for their initiative in encouraging USDA to pursue this course of action,” said NMPF president and CEO Jim Mulhern. “Now more than ever, the U.S. dairy industry relies on exports. If distributed to those sectors that are presently underfunded such as dairy, the new export promotion funding will put us in a better position to compete globally and grow our consumer base. NMPF encourages Congress to build on today’s announcement by USDA to also deliver additional funding for the Market Access Program and Foreign Market Development Program in the development of the next Farm Bill.”

NMPF, USDEC and other agricultural leaders are advocating for Congress to double funding for the Market Access Program and Foreign Market Development program – the two programs have not received a raise in over 16 years, despite offering consistent returns on investment.

“Farmers, manufacturers and workers up and down the dairy supply chain benefit from expanded trade opportunities that help the industry thrive in today’s global economy,” said USDEC president and CEO Krysta Harden. “We’re thankful that USDA is taking this important step to support American Agriculture and appreciate Senators Stabenow and Boozman elevating the importance of using CCC resources to fund programs that will strengthen the U.S. dairy industry through the creation of new markets and the promotion of nutritional dairy-containing products in food aid. We look forward to continuing to work together to level the playing field for America’s dairy farmers and producers.”

NMPF Engages on New Federal Supply Chain Program

Posted on by Theresa Sweeney

NMPF and USDEC coordinated a Sept. 8 U.S. Department of Transportation briefing on its Freight Logistics Optimization Works (FLOW) program to a group of members that have been engaged in the organizations’ supply chain working group.

A novel approach to optimizing supply chain data, FLOW allows U.S. stakeholders including ocean carriers, ports, motor carriers, railroads, warehousers and others to exchange data and better measure cargo traffic demand versus equipment supply. FLOW incorporates elements of the now-defunct USDA Ocean Shipping Container Availability Report, which NMPF and USDEC have long advocated for resuming. The two organizations are also pressing the U.S. government for increased transparency into the export supply chain, including through expanding dairy exporter participation in FLOW.

September CWT-Assisted Dairy Export Sales Nearly 10.4 Million Pounds

Posted on by Theresa Sweeney

Cooperatives Working Together (CWT) member cooperatives secured 30 contracts in September, adding 2.4 million pounds of American-type cheeses, 99,000 pounds of butter, 719,000 pounds of cream cheese and 7.1 million pounds of whole milk powder to CWT-assisted sales in 2023. In milk equivalent, this is equal to 82.2 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, South America and Middle East-North Africa, and will be shipped from September 2023 through March 2024.

CWT-assisted 2023 dairy product sales contracts year-to-date total 36.3 million pounds of American-type cheese, 908,000 pounds of butter, 26,000 pounds of anhydrous milkfat, 6.9 million pounds of cream cheese and 38.6 million pounds of whole milk powder. This brings the total milk equivalent for the year to 692.6 million 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.

The SAVE Act Stands Up for American Dairy

Posted on by Alan Bjerga

Tony Rice Headshot

By Tony Rice, Trade Policy Manager, NMPF

Parmesan. Feta. These are among the common cheese names that have been around for generations — and until the past 20 years, were uncontested in their use by U.S. dairy producers selling high-quality, commonly understood varieties in America and the world.

But an aggressive European Union (EU) campaign to use free trade agreement negotiations to confiscate common names through the misuse of geographical indication (GI) rules has seen American producers of cheeses like “parmesan” and “feta” forced in the past decade to withdraw from certain markets and have their products taken from store shelves.

A solution to this problem is making its way through Congress.

The bipartisan Safeguarding American Value-Added Exports (SAVE) Act was introduced in May. The legislation would spur greater action from U.S. administrations to prioritize the protection of common names. The SAVE Act would direct the secretary of agriculture to determine a list of common names frequently subject to GI restrictions around the world and deem restrictions on them by our trading partners an unfair trade practice. Currently, no such list exists, which gives the European Union and other foreign governments a free hand in claiming common names as GIs, despite them long being a part of the public domain.

The bill also directs the U.S. government to proactively negotiate the defense of generic name rights with foreign trade partners through all available avenues. It’s co-sponsored in the Senate by Senators John Thune (R-SD), Tammy Baldwin (D-WI), Roger Marshall (R-KS), and Tina Smith (D-MN). In the House, sponsors include Representatives Dusty Johnson (R-SD), Jim Costa (D-CA), Michelle Fischbach (R-MN), and Jimmy Panetta (D-CA). The congressional leads are likely to try to incorporate the SAVE Act into the upcoming farm bill text.

This effort wouldn’t be taking place without the hard work and advocacy of the dairy community. The Consortium for Common Food Names, in partnership with National Milk Producers Federation and U.S. Dairy Export Council, has been at the forefront of opposing bad-faith GI recognitions that restrict generic terms, including winning a landmark court case in March that preserves free use of “gruyere” in the United States. As important as the defense strategy has been, growing aggressiveness by the EU on GIs and persistent lack of action by previous U.S. administrations has made the Capitol Hill effort necessary.

The benefits of tackling illegitimate GIs would extend up and down the dairy supply chain. Farmers’ and manufacturers’ international markets access would be preserved, consumers would have more choices at the grocery store, and retailers would benefit from the competition of more options and greater sales. Without adequate protection for generic terms, lost export opportunities due to GI misuse and rebranding to alter the name of a product translate to lower demand for fluid milk to make those products.

The SAVE Act is not a silver bullet. The EU will continue to push for illegitimate GIs in markets around the world. But after years of losing ground as American dairy farmers and producers had their rights violated and market opportunities lost, Congress has demonstrated that they are ready to take on this fight. NMPF has a call to action here for dairy advocates who wish to contact their lawmakers to support this important legislation. America’s dairy industry deserves nothing less than a fair playing field to compete in, and the SAVE Act is a key step to securing international market access for U.S. dairy farmers for generations to come.

This column originally appeared in Hoard’s Dairyman Intel on Aug. 3, 2023.

IDF World Dairy Summit Comes at a Great Time

Posted on by Alan Bjerga

 

The International Dairy Federation’s World Dairy Summit will be in the United States this year. Shawna Morris, senior vice president of trade policy for the National Milk Producers Federation and the U.S. Dairy Export Council, says the summit is coming to the U.S. at a good time. “We had a record year in exports last year, we’re very well-poised to continue to grow in the years to come, and we’re leading on so many of the sustainability fronts that are such an increasing focus for international markets,” she said.

NMPF Strengthens Relationship with Japanese Dairy Organization

Posted on by Theresa Sweeney

NMPF’s Jaime Castaneda joined a delegation of U.S. dairy farmers and U.S. Dairy Export Council (USDEC) staff who traveled to Japan to sign a “Letter of Friendship” with JA-Zenchu, Japan’s Central Union of Agricultural Cooperatives.

The letter, similar to ones NMPF has signed with groups in Latin America, pledges to address the common difficulties that dairy farmers in both countries are facing. Specifically, the two groups promised to collaborate on “dairy-friendly policies at international forums, share information and knowledge on relevant issues and continue to strengthen ties between the two countries for the good of the dairy farmers” represented.

While in Japan, Castaneda and the delegation met with Japanese dairy farmers and agricultural leaders to learn more about the unique issues they are facing and toured Megmilk Snow Brand’s cheese plant.