Tag: dairy exports

Dairy Commends Passage of Ocean Shipping Reform Act, Urges Swift Implementation

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) applaud the signing of the Ocean Shipping Reform Act, S. 3580, by President Joe Biden. Following passage of the legislation by the House of Representatives earlier this week by a vote of 369-42, President Biden signed the bill into law today. The enactment of the Ocean Shipping Reform Act sets in motion a series of new rules and regulations regarding ocean carrier practices that the Federal Maritime Commission (FMC) must implement over the course of the next year.

The legislation was introduced in response to the vocal advocacy by NMPF, USDEC and other agricultural export and shipper organizations, as problems with effective ocean freight transportation worsened in 2021. Congressmen John Garamendi (D-CA) and Dusty Johnson (R-SD), and Senators Amy Klobuchar (D-MN) and John Thune (R-SD) introduced similar versions of the Ocean Shipping Reform Act in the House and Senate, which both passed speedily through their respective chambers.

“We are grateful to our congressional champions – Congressmen Garamendi and Johnson, and Senators Klobuchar and Thune – for their leadership in getting this legislation drafted, introduced and passed so quickly. The U.S. dairy industry has suffered many challenges in getting goods smoothly and reliably to export markets due in large part to problematic ocean carrier practices. These new rules will allow the FMC to better enforce reasonable behavior by the ocean carriers,” said Jim Mulhern, president and CEO of NMPF.

“Our members continue to face significant impacts due to international ocean shipping challenges. Just last year, that resulted in over $1.5 billion in increased export costs and lost opportunities. While we can’t restore those losses, we are very pleased that President Biden and our allies in Congress quickly recognized the urgency of these problems and put their support behind legislative solutions to crack down on unjustified shipping practices,” said Krysta Harden, president and CEO of USDEC. “We urge the FMC to implement these rules quickly and begin to conduct the new oversight, regulation and enforcement necessary to end the unfair and unreasonable ocean cargo practices that have impeded American dairy products from efficiently getting to their overseas customers.”

Both organizations called on the FMC to implement the rules as expeditiously as possible to support agricultural exporters in getting more products onto vessels in order to better address rising food security needs around the world.

Dairy Leader Urges Congress to Promote Greater Focus on Agricultural Trade

Posted on by Theresa Sweeney

Sheryl Meshke, co-president and CEO of Associated Milk Producers Inc. (AMPI), told a Senate subcommittee today that the U.S. government must pursue additional market access opportunities and address export supply-chain delays in order for the U.S. dairy industry to keep up with its global competitors.

Meshke serves on the board of directors for both the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC).

“In pursuing exports, the U.S. dairy industry faces experienced and well-established competitors who have been exceptionally active with free trade agreements,” said Meshke, whose New Ulm, MN-based cooperative is a member of both NMPF and USDEC. “The United States needs to get back in the game and craft an approach to pursuing comprehensive trade agreements.”

Meshke also emphasized the importance of enforcing existing trade agreements, particularly U.S. dairy export access to the Canadian market under the U.S.-Mexico-Canada Agreement.

Meshke addressed the Senate Agriculture Committee’s Subcommittee on Commodities, Risk Management, and Trade, which convened the hearing on agricultural trade issues.

American dairy risks losing its competitiveness, as the global playing field slowly tilts against the United States due to competitors’ trade agreements with key dairy importing markets, Meshke noted in her testimony. She also said U.S. trade negotiators need to target priority markets for expanded access, including Southeast Asia, Japan, China, the Middle East and the United Kingdom.

Meshke also emphasized the importance of combating non-tariff trade barriers, particularly the European Union’s aggressive efforts to confiscate food and beverage names in global markets by abusing geographical indications systems. She urged a strong defense of common food names: “We can’t wait any longer for the U.S. government to proactively defend the use of common food and beverage names against aggressive global efforts by the EU to restrict the use of generic terms we rely on.”

Congress and the Biden Administration must take further steps to address export supply chain delays, Meshke added. She specifically called for the passage of the Ocean Shipping Reform Act (OSRA), versions of which have passed in both the U.S. House of Representatives and the Senate, and for a suite of solutions to be pursued to mitigate this complex problem.

“As Sheryl outlined so well, we are now seeing dairy consumption grow at exceptional rates in many markets around the world,” said Jim Mulhern, president and CEO of NMPF. “The U.S. dairy industry is well-positioned to meet the expanding global demand for sustainably produced dairy products. But to seize those opportunities, we must take a leadership role along with like-minded countries – advancing policies and crafting trade agreements that can deliver real benefits for dairy farmers.”

“Now more than ever, global markets are critically important to the health of the U.S. dairy industry,” said Krysta Harden, president and CEO of USDEC. “We need to make full use of every available trade tool – including the Indo-Pacific Economic Framework, the U.S.-Taiwan Initiative, and Trade and Investment Framework Agreements – to improve market access in key export markets. At the same time, we can’t leave comprehensive trade agreements on the cutting room floor. Exports underpin U.S. dairy’s success in the present and, backed by trade agreements, exports will support the industry’s growth in the future.”

May CWT-Assisted Dairy Export Sales Totaled Nearly 19 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 57 contracts in May*, adding 5.0 million pounds of American-type cheeses, 49,000 pounds of butter, 13.0 million pounds of whole milk powder and 679,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 147 million pounds of milk on a milkfat basis. These products will go customers in Asia, Central America, Oceania and South America, and will be shipped from May through December 2022.

CWT-assisted 2022 dairy product sales contracts year-to-date total 47.7 million pounds of American-type cheese, 95,000 pounds of butter, 5.0 million pounds of cream cheese and 28.5 million pounds of whole milk powder. This brings the total milk equivalent for the year to 690 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.

*Awaiting confirmation on one bid offer

NMPF Leads on Supply Chain Issues in White House, USDA, Congressional Engagement

Posted on by Theresa Sweeney

NMPF staff joined USDEC leadership engaging policymakers in meetings at the White House and USDA, as well as with leading members of Congress, in meetings May 12 on export supply chain issues. The group underscored the importance of the pop-up sites USDA launched earlier this year in Oakland and Seattle, and emphasized additional potential remedies, including:

  • Preferential port access for ocean carriers that maximize agricultural export carriage
  • Resuming the weekly Ocean Shipping Container Availability Report
  • 24-hour ag export pop-up sites at inland ports; and
  • Dual-turn facilitation of containers. A dual-turn allows containers delivering imports to an inland location to be provided directly to a nearby export-focused shipper, rather than being returned empty to the coast.

On May 25 USDA announced that it would begin accepting applications for the Commodity Container Assistance Program (CCAP) at the ports of Oakland and Seattle. Under the program, the Farm Service Agency (FSA) is providing a $125 per container payment to assist exporters with the additional logistical expenses associated with picking up empty shipping containers to be filled with agricultural commodities and will also provide payments of $200 per dry container and $400 per refrigerated container to help cover additional logistical costs associated with moving the shipping container.

NMPF touted this additional step to support dairy exports as president and CEO Jim Mulhern noted, “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

NMPF remains among the most active agricultural industry voices pushing for progress to resolve the export supply chain crisis through a full-spectrum approach, engaging policymakers, driving policy and educating the public.

NMPF also commended a House bill introduced on May 13 by Reps. Angie Craig (D-MN) and Dusty Johnson (R-SD) that would create a dedicated task force within USDA designed to support American agriculture by shoring up the supply chain, increasing government coordination and preventing future issues. The bill unanimously passed the House Agriculture Committee on May 18. The language in this stand-alone bill parallels language in the existing COMPETES Act, now in conference.

Finally, NMPF’s senior vice president of trade policy, Shawna Morris, addressed dairy industry concerns as part of a May 18 webinar, hosted by Hoard’s Dairyman. Shawna focused on NMPF’s policy efforts. The lively and informative panel, which remains available for viewing, included perspectives from the Port of Oakland, a dairy exporter and an expert academic.

NMPF’s Castaneda on Dairy Trade With Canada

Posted on by Alan Bjerga

 

Jaime Castaneda, NMPF’s Executive Vice President for Policy Development & Strategy, discusses Canada’s lack of willingness to honor its dairy commitments under USMCA on RFD-TV. A dispute resolution panel under the trade agreement has found Canada’s system of allocating access to its dairy market to the U.S. in violation of the deal. NMPF is urging an aggressive U.S. response.

U.S. Dairy Supports New USDA Container Program for Ag Exports

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today welcomed the U.S. Department of Agriculture’s (USDA) announcement to offer additional support to American agriculture exporters through the new Commodity Container Assistance Program (CCAP). The initiative will provide funding from the Farm Service Agency (FSA) to exporters to reduce the costs of sourcing containers at the Oakland and Seattle-Tacoma ‘pop-up’ port locations.

“Dairy producers and other agriculture exporters have been clamoring for relief from these ocean shipping challenges for nearly two years,” said Jim Mulhern, president and CEO of NMPF. “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

“We are grateful to see Secretary Vilsack and USDA taking a leadership role in addressing these port and ocean freight challenges that dairy producers are facing. I am impressed with the speed and innovative approach with which USDA has moved this pop-up concept into operation,” said Krysta Harden, president and CEO of USDEC. “We will continue working with USDA and its interagency partners in pursuing solutions to the supply chain challenges that impact the bottom line of dairy exporters and the U.S. workers and foreign consumers who rely upon American dairy exports.”

As port terminal operations have become congested and ocean carriers have prioritized shipping empty containers back to Asia from west coast ports, agriculture exporters have struggled to obtain containers from the carriers, to secure reliable vessel bookings, and to overcome obstacles to delivering goods to the ports to meet vessel departures timelines. The pop-up sites are intended to offer off-terminal locations for empty container storage, increasing access for agriculture shippers to use them and freeing up port terminal space for freight operations. At the pop-up sites, exporters can transload their commodities into the containers (both dry and reefer) and store them on property until the vessel booking earliest return dates are announced, enabling more efficient drayage delivery to the ports. The FSA’s payments will help to cover the costs of moving the containers between the ports and the pop-up yards, as well as the storage at the pop-up site.

NMPF and USDEC are working with USDA to identify key port locations, including at inland terminals, to replicate the pop-up initiative.

Supply Chain Needs Outlined by NMPF, USDEC to Administration

Posted on by Theresa Sweeney

NMPF and USDEC, with input from their joint export supply chain working group, took multiple steps last month to tout additional actions the U.S. government could take to help address the supply chain issues plaguing dairy exporters.

Highlighting the efforts were comments the two organizations submitted to the Federal Maritime Commission (FMC) on April 14 concerning detention and demurrage billing requirements. The comments outlined a series of nine recommendations for rulemaking focused on upgrading carriers’ information requirements related to detention and demurrage — measures that would help correct the current information power imbalance that favors carriers.

NMPF and USDEC also sent a letter April 21 to Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg recommending five additional tools that could provide supply chain relief and support to dairy farmers and exporters. The leading recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR) which previously detailed the availability of ocean shipping containers at locations across the United States on a weekly basis. NMPF export supply chain working group members have underscored the usefulness of this report and urged its reactivation.

Shortly thereafter, NMPF joined a coalition of agricultural associations in an April 25 letter to Director of the National Economic Council Brian Deese, Secretary Vilsack and Secretary Buttigieg, asking the administration to coordinate a meeting between exporters and ocean carriers to foster progress on export shipping access.

While these immediate steps could help deliver much-needed immediate relief, NMPF also remains focused on advancing longer-term legislative efforts to heighten the oversight of ocean shipping practices and mandate reforms.

The Ocean Shipping Reform Act (OSRA)– now passed by both the U.S. House and Senate – is headed to conference to reconcile differences in the two versions. NMPF and USDEC played a key role in shaping the text for both versions and securing bipartisan support, but the work continues to ensure the provisions that would deliver the most tangible solutions are retained in a final bill.

The most likely route forward is through the conference process slated to begin in May on a China competitiveness legislative package of which OSRA is a part. NMPF joined an April 20 letter from a broad coalition of U.S. exporting organizations to the conferees, urging the inclusion of the more prescriptive provisions unreasonable carrier behavior.

NMPF Pursues, Protects Dairy Market Access

Posted on by Theresa Sweeney

NMPF and the U.S. Dairy Export Council (USDEC) submitted joint comments to the U.S. Trade Representative’s Office on April 11 asking it to place a high priority on tariff cuts and nontariff barrier removals through the Indo-Pacific Economic Framework (IPEF).

While the administration still hesitates to pursue comprehensive free trade agreements, the framework, which is focused on defining shared objectives around trade facilitation, standards, supply chain resiliency, sustainability, and other common interests in the Indo-Pacific region, presents a potential opportunity to take one step forward on access terms in the region. NMPF in the comments urged that the Biden Administration pursue comprehensive trade agreements to establish lasting tariff and nontariff trade barrier reductions. While acknowledging that the economic framework will not be that kind of agreement, the comments make the case that it could still reduce or eliminate barriers to trade and suggest numerous areas for potential progress.

NMPF and USDEC worked closely with Congressional offices to bolster that message through a March 30 House of Representatives letter to U.S. Trade Representative Katherine Tai and Secretary of Agriculture Tom Vilsack urging the administration to prioritize U.S. food and agriculture in any IPEF negotiations. The bipartisan letter, led by Reps. Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), and signed by 85 other members of Congress, called on the administration to use the Indo-Pacific negotiations to “include efforts to reduce tariffs on U.S. agricultural exports,” to establish regulatory reforms that would benefit U.S. dairy and others in American agriculture, and more.

NMPF also is continuing to safeguard free trade in Latin America, where growing anti-import sentiment from domestic agricultural industries is contributing to a proliferation of potential new market access barriers.

Panama formally petitioned the United States in March 16 to renegotiate several of the agricultural market access provisions in the U.S.-Panama Trade Promotion Agreement. In response, NMPF and USDEC, working together with the Corn Refiners Association, initiated an April 14 letter co-signed by fifteen other agricultural organizations to Ambassador Tai and Secretary Vilsack urging them to preserve the agricultural market access terms of the trade deal and ensure Panama honors its trade obligations. The letter states that modifying an already-implemented trade deal would set an “alarming precedent” and urges the administration to stay the course on FTA implementation.

U.S. Dairy Industry Urges Additional Export Supply Chain Relief

Posted on by Alan Bjerga

ARLINGTON, VA – The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today sent a letter to the Biden administration recommending specific steps to provide relief and support to dairy farmers and exporters facing supply chain constraints.

The letter to Agriculture Secretary Tom Vilsack and Transportation Secretary Pete Buttigieg called for interagency collaboration to enhance capacity at ports, incentivize carriers to load export cargo, and improve transparency throughout the supply chain. The lead recommendation called for USDA’s Agriculture Marketing Service (AMS) to restart its Ocean Shipping Container Availability Report (OSCAR).

“Supply chain challenges have cost U.S. dairy exporters over $1.5 billion last year alone. We thank Secretaries Vilsack and Buttigieg for their advocacy for America’s agriculture exporters in the face of significant supply chain constraints. We are incredibly grateful for the administration’s ongoing efforts and creative solutions, particularly for the development of ‘pop-up’ sites for agricultural exporters to source empty containers,” said Krysta Harden, president and CEO of USDEC. “The additional recommendations submitted today would provide agricultural exporters much needed insight into container availability and provide avenues to incentivize carriers to load outbound shipments to key dairy markets around the world.”

“Shipping containers for U.S. dairy exports continue to be in short supply at coastal ports, and even more scarce at inland locations. These essential links in the global supply chain must be available to American dairy exporters throughout the country in order to ship their products to overseas buyers,” said Jim Mulhern, president and CEO of NMPF. “We thank USDA and DOT for their strong focus on this issue. As congestion continues, so too must the spectrum of tools deployed to address these challenges. Today’s letter highlights the additional steps necessary to take to ensure American dairy farmers are not losing long-term international market share due to these persistent supply chain challenges.”

The specified programmatic elements to provide supply chain relief include:

  • Restarting USDA AMS’ OSCAR, which would detail the availability of ocean shipping containers at locations throughout the United States.
  • Establishing inland pop-up terminal yards, similar to those in Oakland and Seattle, in Minneapolis, Chicago, Detroit, Salt Lake City and Kansas City. This would enable greater access inland to containers and improve the ability to secure vessel accommodations with short earliest-return-date windows at those locations.
  • Developing the ‘fast lane’ concept to incentivize the flow of agriculture exports into and from ports. This would include trucking lanes at port terminals that are dedicated to the expeditious delivery of perishable agriculture goods to ports.
  • Incentivizing ocean carriers to load more export containers, instead of empty containers, through preferred or prioritized berthing access.
  • Including real-time tracking of containers as part of the Administration’s Freight Logistics Optimization Works initiative.
  • Piloting projects with carriers for ‘dual turns’ of containers, wherein containers delivering imports to an in-land location may be provided directly to an export-focused shipper, rather than being sent back empty to the port. This could be supported through the USDA’s Commodity Credit Corporation resources.

 

 

NMPF’s Bjerga on Ukraine’s Agricultural Challenges

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga discusses efforts to assist farmers in Ukraine and some of the challenges faced by the sector in an interview with WEKZ, Janesville, Wisconsin. Livestock producers face special challenges with feed and fuel, while farmers also are struggling with access to transportation.

Congress Demands Canada Meet its USMCA Dairy Commitments, Earning Dairy’s Praise

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) expressed their deep appreciation for robust Congressional support on ensuring Canada fully honors its U.S.-Mexico-Canada (USMCA) dairy market access commitments. Today several leading members of the U.S. House of Representatives sent a bipartisan letter to U.S. Trade Representative Katherine Tai and U.S. Secretary of Agriculture Tom Vilsack calling on the administration to reject Canada’s recent dairy proposals and insist on real reform.

Last month, Canada proposed inconsequential changes to its dairy tariff-rate quota (TRQ) allocations after a USMCA dispute panel found in January that Canada’s existing rules do not meet USMCA requirements. Led by Reps. Ron Kind (D-WI), Tom Reed (R-NY), Antonio Delgado (D-NY), Glenn Thompson (R-PA), Suzan DelBene (D-WA), Dusty Johnson (R-SD), Jim Costa (D-CA), and David Valadao (R-CA), the letter argues that Canada must bring its dairy TRQs into alignment with its USMCA commitments, which would further open Canada’s market to U.S. dairy products. Representative Elise Stefanik (R-NY) has sent a similar letter pointing out that Canada’s USMCA dairy TRQ proposal is insufficient to deliver on USMCA’s promise for dairy exporters on March 4.

“The USMCA is not a list of optional suggestions and aspirational ambitions. Yet Canada has treated its obligations to American dairy producers as a game, seeing what they can get away with,” said Jim Mulhern, president and CEO of NMPF. “Congress rightfully recognizes this must stop. If we do not require our allies meet their signed commitments, then our trade agreements are not worth the paper they are printed on.”

“USDEC appreciates this strong bipartisan support focused on ensuring that American dairy exporters receive the benefits that was negotiated in the USMCA,” said Krysta Harden, president and CEO of USDEC. “We are committed to continuing to work with the U.S. government to make sure that the dairy market access negotiated with Canada is provided in full to the benefit of both American dairy farmers and manufacturers, and Canadian consumers alike.”

The bipartisan House letter sent today states, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain. That is why it is critical that this compliance stage of the USMCA dairy case demonstrate that the USMCA enforcement process works – not just to deliver the right finding, as it did in January – but to ensure faithful implementation of the overall agreement and drive real, tangible reforms that are seen on store shelves, to the benefit of American dairy producers and manufacturers, just as USMCA intended.”

NMPF Presses U.S. Government to Pursue Market Access Opportunities

Posted on by Theresa Sweeney

NMPF continues to identify and advocate for pathways that increase foreign market access for U.S. dairy while the Biden Administration remains slow to pursue comprehensive trade agreements.

The Indo-Pacific Economic Framework (IPEF), a limited trade contract intended to strengthen trade relations, supply chain resiliency, and cybersecurity in the region, may offer the broadest non-FTA opportunity to advance that goal for now. The framework under development touts a “fair and resilient” trade module focused primarily on addressing nontariff issues.

NMPF, together with USDEC, is working to ensure the dairy industry has a hand in shaping its development as the effort gains momentum. The Senate Finance Committee held a March 15 hearing on the framework, where NMPF helped members with questions for  Sharon Bomer Lauritsen, who testified on behalf of the agricultural industry, to draw out how dairy market barriers could best be addressed in the IPEF.

Several of the recommendations Bomer offered echoed those NMPF shared with USTR in early February in a confidential submission outlining various dairy market access priorities including reductions by our trading partners of their World Trade Organization tariffs.

NMPF also worked with a coalition of agricultural organizations to generate support for a March 30 bipartisan Congressional letter to Ambassador Tai and Secretary Vilsack, urging the administration to make agriculture a priority in IPEF negotiations. Led by Reps. Jimmy Panetta (D-CA) and Jodey Arrington (R-TX), together with Jim Costa (D-CA), Dusty Johnson (R-SD), Ron Kind (D-WI) and Randy Feenstra (R-IA), the letter called on the administration to use IPEF to address barriers to U.S. agricultural exports, create mutually agreed-upon regulatory reforms that would benefit U.S. dairy and others in American agriculture, “include efforts to reduce tariffs on U.S. agricultural exports” and more.