Tag: dairy trade

NMPF Leads Charge in Dynamic Trade Environment

Posted on by Rachel Ravencraft
  • Advocated for dairy priorities in administration’s Reciprocal Trade Deals
  • Secured the reintroduction and advancement of key common names bill
  • Spurred federal investigation into global nonfat milk solids marketplace
  • Expanded network of allied organizations
  • Advanced key supply chain initiatives

NMPF has actively navigated the new administration’s proactive and unconventional trade approach to forge better global prospects for U.S. dairy exporters.

As the Trump administration’s trade negotiations unfold, NMPF Executive Vice Presidents Jaime Castaneda and Shawna Morris are serving as confidential private sector advisers to the U.S. Trade Representative and U.S. Department of Agriculture, offering guidance to ensure that U.S. dairy interests are represented and pursued across the globe.

To date, the United States announced trade frameworks with key dairy trading partners including South Korea, the European Union, the United Kingdom, Japan, Vietnam, the Philippines, and Indonesia. These frameworks vary in scope and detail and are designed to set the stage for more detailed negotiations to follow soon.

The frameworks with Indonesia, Vietnam and the Philippines are particularly promising for dairy exporters. It appears likely that all three countries will zero out tariffs on U.S. dairy exports, leveling the playing field with New Zealand and Australia, and in some cases the European Union too. Indonesia’s framework also addresses longstanding barriers that have made it difficult for American companies to compete in the market. This includes dairy facility registration approval improvements and steps that would help protect common name rights in Indonesia for products like “parmesan” and “feta.” Details on all announced trade details are forthcoming.

In addition to providing guidance as cleared advisors, NMPF worked hard in the months leading up to the negotiations to lay the groundwork for success. As the administration began to fill out its cabinet and agency positions, NMPF and the U.S. Dairy Export Council (USDEC) shared trade priorities  with incoming USTR and USDA officials to improve the global competitive landscape for U.S. dairy exporters. NMPF President and CEO Gregg Doud testified before the House Ways & Means Trade Subcommittee, where he called for the U.S. government to pursue greater market access for U.S. products and enforce existing trade agreements.

Throughout its meetings and engagements with the Trump Administration, NMPF has stressed the need to preserve trade flows, while encouraging a tailored approach to tariffs that ensure fairness for U.S. farmers and workers.

NMPF remained active in multiple trade-related areas that went beyond negotiations, for example supporting the Apr. 1 reintroduction of the Safeguarding American Food and Export Trade Yields (SAFETY) Act and continuing additional efforts to proactively protect common food names for American cheesemakers. Originally introduced as the Safeguarding American Value-Added Exports (SAVE) Act in 2023, the SAFETY Act would direct the U.S. Department of Agriculture and U.S. Trade Representative to prioritize the protection of common names like “parmesan” in international trade negotiations.

As Congress and the administration prepare for next year’s critical U.S.-Mexico-Canada Agreement (USMCA) review process, NMPF is engaging with and supporting the U.S. Trade Representative’s office and other key stakeholders to ensure that they have the information needed to strengthen the agreement for U.S. dairy producers and exporters.

A particular issue that needs addressing is Canada’s dairy policies that incentivize dairy protein to be produced, then offloaded globally at artificially low prices — including by shifting tariff codes to evade USMCA export surcharges.

NMPF responded to this issue by pressuring the administration to address Canada’s persistent flouting of USMCA commitments, which led to a U.S. International Trade Commission (USITC) investigation launched May 20 into the export competitiveness of nonfat milk solids industries in the United States and other major suppliers. NMPF submitted written comments as part of that investigation outlining underhanded practices by Canada and other global suppliers that harm U.S. producers. NMPF’s Jaime Castaneda and Will Loux further elaborated on those points at a July 28 USITC hearing in the case.

NMPF has expanded its network of international allies, strengthening its ability to advocate for U.S. dairy worldwide. During a March 17-20 trip to Central America, Castaneda closed a memorandum of understanding (MOU) between NMPF, USDEC, and the Guatemalan Dairy Development Association (ASODEL). The agreement strengthens ties between the U.S. and Guatemalan dairy industries as they advocate for free and fair-trade policies and promote greater dairy consumption.

NMPF and USDEC signed an MOU May 1 with KADIN, the Indonesian Chamber of Commerce, strengthening ties between the U.S. and Indonesian dairy industries. This agreement builds on a flourishing partnership between the two countries, launched by the establishment of the U.S.-Indonesia Dairy Partnership Program. This collaboration is focused on creating and distributing technical educational materials designed to empower small-scale dairy producers in Indonesia to improve the quality and quantity of their milk production while touting the value of complementary U.S. dairy imports to meet the full needs of Indonesia’s expanding school milk program.

To ensure that U.S. dairy exporters can depend on timely and reliable shipping and rail transportation, NMPF is prioritizing supply chain improvements.

USTR on Feb. 21 proposed to impose fees on Chinese-built and -operated cargo ships as part of a larger investigation into Chinese maritime dominance. While this action was well-intentioned, NMPF and USDEC filed comments on March 24 to warn the agency that additional service fees would significantly increase costs for American exporters and diminish shipping options for U.S. products — both of which could lead to loss of global market access. USTR heard the industry pushback and modified the rule on June 12 rolled back the severity of the proposed fees. NMPF continues to urge the agency to re-evaluate the remaining fees to ensure U.S. dairy exporters do not face additional costs to export.

U.S. Dairy: Trade Deal With Europe Must Deliver Real Change

Posted on by Rachel Ravencraft

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) welcomed today’s release of the Joint Statement on United States – European Union Framework on an Agreement on Reciprocal, Fair, and Balanced Trade. U.S. dairy leaders stressed that America can no longer afford to tolerate Europe’s entrenched protectionism, which has cost U.S. dairy farmers billions and stifled real market access. The Framework provides an essential opportunity to address those harms to benefit American dairy farmers and manufacturers.

According to the White House, the new agreement would provide preferential market access for U.S. dairy products and commit to resolving certain non-tariff barriers including streamlining requirements for dairy export certificates. Both elements are vital to improving Transatlantic trade relations.

“U.S. farmers win when competition is fair, but there’s nothing fair about Europe’s system,” said Gregg Doud, president and CEO of NMPF. “An agreement with the EU has the potential to unlock billions in new opportunities for American dairy. To get there, dairy exporters need to see market access opportunities into the EU mirror those the EU already enjoys when it ships butter, cheese and other dairy products into the U.S. market. We look forward to working with the Administration to ensure the EU follows through on delivering results that farmers can see in their milk checks.”

Exports are a lifeline for American dairy farmers, processors, and the rural communities they support. But Europe has turned trade into a one-way street. Trade that is reciprocal, fair and balanced requires leveling the playing field for U.S. exporters including ending the abuse of GIs as disguised protectionism and ensuring that EU tariffs and nontariff barriers do not shut out U.S. producers from selling products that are globally recognized and respected.

“This announcement is an important step in the right direction. America’s dairy farmers are done playing second fiddle in Europe’s rigged system,” said Krysta Harden, president and CEO of USDEC. “For too long, the EU has wielded tariffs and red tape, and misused geographical indications, as weapons to shut U.S. products out while European exporters enjoyed extensive access to our shelves. That imbalance has saddled us with a staggering $3 billion dairy trade deficit in 2024 alone. We’re pleased that the Administration is working to finally address this imbalance of opportunity.”

NMPF Dairy Experts Testify on Milk Solids Before ITC; Staff Present on Economy, AI

Posted on by Theresa Sweeney

NMPF’s Jaime Castaneda and Will Loux testified on July 28 before the U.S. International Trade Commission (USITC) as part of the agency’s ongoing Section 332 investigation into the United States’ nonfat milk solids competitiveness relative to other global suppliers, highlighting another busy month for NMPF staff in outreach and policy influence.

Testimony by Castaneda, NMPF’s executive vice president for Policy Development and Strategy, and Loux, who heads NMPF’s Joint Economics Team with the U.S. Dairy Export Council, complemented nearly 60 pages of comments filed July 16 that focused on Canada and other global suppliers’ persistent efforts to offload structural surpluses of nonfat milk solids onto the global market at artificially low prices.

NMPF and USDEC requested that the U.S. government address Canada’s attempts to circumvent its dairy obligations in the U.S.-Mexico-Canada Agreement. Despite Canada’s USMCA commitment to reform distortionary pricing schemes, limit the offloading of low-priced dairy proteins and expand its market access for U.S. dairy exporters, it has failed to follow through in meaningful ways on all three fronts undercutting U.S. dairy producers both at home and abroad — a point drawn out in the two testimonies. In response, USTR requested that the USITC conduct this investigation.

The USITC’s findings, due next March, will inform the U.S. government’s strategy heading into the upcoming USMCA review between Canada, Mexico and the United States.

NMPF and USDEC also highlighted other global suppliers that benefit from a combination of direct subsidies and state trading enterprises that distort global trade, including product originating from India, Turkey and the European Union.

The Loux and Castaneda presentations were among several spotlighting dairy’s leadership in July. NMPF Senior Director for Economic Research & Analysis Stephen Cain gave a tariff and trade outlook to industry professional on June 26 at the HighGround Global Dairy Outlook Conference in Chicago. Cain also presented a global dairy outlook to the Wisconsin Dairy Products Association Dairy Symposium in Lake Geneva on July 15 and gave a market outlook to WI Farm Bureau and the Dairy Farmers of WI in Madison later in the month.

Meanwhile, NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga presented on Artificial Intelligence and the challenges of communicating dairy’s messages in an evolving information environment at the Agricultural Media Summit in Rogers, AR, on July 29.

NMPF Advocates for Industry Needs in Worldwide Trade Talks

Posted on by Theresa Sweeney

NMPF’s active engagement with key administration officials in the lead-up to President Trump’s July 31 executive order establishing a new tariff system has helped create opportunities for dairy as deals across the globe take shape.

The order places reciprocal import tariffs on dozens of countries while maintaining the reciprocal tariff rate at 10% on all others. Several trade framework agreements were also announced prior to the order that may improve market access for U.S. dairy exporters.

The executive order sets country-specific tariff rates ranging from 10% to 41% on a broad set of imports. Several key U.S. trading partners negotiated terms to secure 15%-20% tariff rates under bilateral arrangements, including the EU, Japan, Indonesia, the Philippines, South Korea, the UK and Vietnam. Details on each are slim – with some having been announced solely via social media – yet most reference tariff reductions that would benefit U.S. agricultural exports.

Throughout these discussions, NMPF staff Jaime Castaneda and Shawna Morris, who served as Confidential Agricultural Trade Advisors to USTR and USDA, have provided extensive details and recommendations to U.S. trade negotiators on the importance of maintaining stable access to key export markets, avoiding retaliatory disruptions, reducing tariffs, and resolving nontariff trade barriers in specific markets.

NMPF joined USDEC in praising the framework agreement announced with Indonesia, which notably would eliminate Indonesia’s 5% dairy tariffs in a promising and growing market for U.S. dairy products and seeks to address nontariff barrier concerns with Indonesia’s lengthy facility registration process and threats to the use of common cheese names.

“We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets,” said Gregg Doud, president and CEO of NMPF, in the statement. “NMPF looks forward to reviewing the details of the agreement and working with the administration to ensure Indonesia upholds its end of the bargain.”

Separate negotiations are underway with countries on which the U.S. first began raising tariff rates: Mexico, Canada and China. Mexico, the largest market for U.S. dairy, received a 90-day reprieve, allowing continued negotiations and uninterrupted trade for the time being. Meanwhile, Canadian exports that are not USMCA-compliant will face a 35% tariff beginning Aug. 2. Negotiations with China to avert a further hike in bilateral tariffs with that country are ongoing, with a looming deadline of Aug. 12.

Joint Statement from NMPF and USDEC on Senate Confirmation of Luke Lindberg as USDA Under Secretary of Trade and Foreign Agricultural Affairs

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) today applauded the Senate’s confirmation of Luke Lindberg to the position USDA Under Secretary of Trade and Foreign Agricultural Affairs.

Statement from Gregg Doud, President and CEO of NMPF:

“We are excited to get to work with Under Secretary Lindberg, who has a proven track record of advancing American agricultural interests and will help USDA deliver results for American dairy producers and cooperatives. Mr. Lindberg’s leadership and understanding of trade policy strengthen the future of U.S. dairy. We look forward to working with Under Secretary Lindberg and the entire Trump administration to champion American dairy farmer interests, fight back on unjustified and unscientific barriers to American exports and open markets across the globe.”

Statement from Krysta Harden, President and CEO of USDEC:

“The confirmation of Luke Lindberg represents a significant win for U.S. dairy exporters and our industry’s global competitiveness. Mr. Lindberg’s experience leading trade missions and managing export initiatives position him perfectly to break down trade barriers and create pathways for American dairy to reach global consumers. Last year, U.S. dairy exports reached a historic $8.2 billion, demonstrating the tremendous global demand for American dairy products. This position is critical to advancing America’s leadership in international dairy markets. Together we can put more Made in America dairy on more overseas shelves. We are delighted to have a strong advocate for policies that enhance competitive dairy access into international markets.”

NMPF’s Castaneda Explains for Dairy Radio Now the Importance of Investigation of Milk Powder Trade

Posted on by Chris Galen

NMPF’s executive vice president Jaime Castaneda explains for listeners of Dairy Radio Now why NMPF asked the Trump Administration to investigate the world trade in milk powders, and, in particular, the impact of Canada’s protectionist practices on U.S. producers. Castaneda and NMPF colleague Will Loux testified this week on the issue.

U.S. Dairy Industry Praises Indonesia Trade Agreement

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) applauded the announcement late yesterday of a new trade framework between the United States and Indonesia that eliminates tariffs on the vast majority of U.S. exports and contains pledges to remove longstanding nontariff barriers affecting American dairy products.

“This looks like it will be a significant win for U.S. dairy. We commend the Trump Administration for securing an agreement that should deliver real benefits for our dairy farmers,” said Gregg Doud, president and CEO of NMPF. “We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the Administration to ensure Indonesia upholds its end of the bargain.”

As outlined in a White House factsheet issued yesterday, Indonesia will eliminate tariffs on approximately 99% of U.S. exports; recognize U.S. regulatory oversight, including by listing all U.S. dairy facilities and accepting certificates issued by U.S. regulatory authorities; and commit to implement a fair and transparent process for handling geographical indications (GIs) to ensure common cheese names are respected.

“Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly,” said Krysta Harden, president and CEO of USDEC. “While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”

“The prospect of having Indonesia commit to a more transparent and balanced approach to GIs would be a meaningful advance in the global fight to preserve the use of common food names like parmesan and feta,” said Jaime Castaneda, executive director of CCFN. “We commend the U.S. negotiators for prioritizing this issue, particularly at a time when European Union is attempting to expand their GI abuse in growing dairy markets and shut out the United States. We will work diligently with the U.S. government to hold Indonesia accountable to their commitments on common names.”

The United States exported $246 million in milk powders, whey products, cheese and other dairy ingredients to Indonesia in 2024, making it the seventh largest U.S. dairy export destination. The agreement complements ongoing work by NMPF and USDEC to support integration of school milk into Indonesia’s new Free Nutritious Meals program and foster greater collaboration on trade.

NMPF, USDEC and CCFN also welcomed the news that agreements had been struck this week with the Philippines and Japan, with details forthcoming.

U.S. Dairy Industry Celebrates Julie Callahan Nomination for Chief Agricultural Negotiator

Posted on by Rachel Ravencraft

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) commended President Trump’s nomination of Dr. Julie Callahan to serve as Chief Agricultural Negotiator for the Office of the U.S. Trade Representative.

“The role of Chief Agricultural Negotiator is critical to ensuring that American dairy farmers have a voice in trade negotiations,” said Gregg Doud, president and CEO of NMPF and a former USTR Chief Agricultural Negotiator. “Dr. Callahan is the right choice. Her expertise and leadership in agricultural trade policy is second to none. Dairy farmers and the entire U.S. dairy industry look forward to working with her to open new export markets and hold our trading partners accountable. We ask that the Senate move swiftly to advance her confirmation process.”

Callahan currently serves as the Assistant U.S. Trade Representative for Agricultural Affairs and Commodity Policy where she leads on expanding and preserving market access opportunities for U.S. farmers and food manufacturers. Her impressive tenure in agricultural trade policy spans across a variety of leadership roles with USTR and the U.S. Food and Drug Administration, in addition to early career experience with the USDA Foreign Agricultural Service and the American Chemical Society.

“Dr. Callahan’s nomination today is a win for U.S. agriculture,” said Krysta Harden, president and CEO of USDEC. “The U.S. dairy industry depends on a proactive trade policy agenda to grow. Dr. Callahan brings deep trade policy expertise and an unmatched record of advocating for U.S. farmers and food manufacturers to a role vital to ensuring agriculture has a seat at the negotiating table. We look forward to working with her to drive back trade barriers and build markets for American dairy producers. USDEC calls on the Senate to quickly confirm her as our next Chief Agricultural Negotiator.”

“For far too long, the European Union has misused its geographical indications rules to monopolize common food names like ‘parmesan’ and block fair competition from U.S. producers,” said Jaime Castaneda, executive director of CCFN. “In her current role, Dr. Callahan has been leading the charge in preserving market access for U.S. common name producers in the face of these harmful EU policies. Her leadership will be instrumental in working to ensure that the European Union stops taking advantage of American farmers. We are excited for the opportunity to further work with her on this important mission and urge an expeditious confirmation process in the Senate.”

NMPF Strengthens South America Ties on Trip with NMPF Members

Posted on by Theresa Sweeney

NMPF Executive Vice President for Policy Development and Strategy Jaime Castaneda, along with representatives from member cooperatives California Dairies Inc. and Darigold, and seven other U.S. dairy exporters and traders traveled to Lima, Peru, June 9-12 on a USDA trade mission to explore business opportunities.

The trip featured in-depth market briefings, site visits, and networking events for U.S. dairy suppliers to meet with buyers from Peru, Bolivia and Ecuador.

The host of next year’s Latin America Nutrition Congress, Peru has been a key market for U.S. dairy exporters since the U.S.-Peru Trade Agreement was signed in 2009. The Congress, which NMPF and the U.S. Dairy Export Council (USDEC) will lead, will help align public dietary guidance with up-to-date dairy science, and further strengthen partnerships between U.S. and Latin American health and agriculture sectors.

NMPF Prompts U.S. Investigation into Global Nonfat Milk Solids

Posted on by Theresa Sweeney

The U.S. International Trade Commission (ITC) announced an investigation on May 20 into global nonfat milk solids competitiveness for the United States and other major suppliers, including Canada, after extensive NMPF and U.S. Dairy Export Council advocacy for a probe.

The announcement followed an April 23 letter from the U.S. Trade Representative (USTR) requesting a formal Section 332 investigation into global suppliers’ pricing and trade practices for products with high levels of nonfat milk solids, including casein, caseinates, lactose, skim milk powder, and milk protein concentrates and isolates.

NMPF and USDEC have been closely monitoring a notable spike in certain nonfat milk solid exports from Canada following 2020 implementation of the U.S.-Mexico-Canada Agreement (USMCA). USMCA included rules on Canadian exports of skim milk powder, milk protein concentrates and infant formula that imposed higher penalty rates on exports that exceed a volume threshold. USMCA introduced these measures to curb Canada’s propensity to offload excess nonfat milk solids onto global markets at artificially low prices.

However, data shared by NMPF with USTR suggest Canada has sidestepped these obligations by shifting dairy protein production and exports to other product categories that evade the USMCA export disciplines. In meetings and written communications to both the current administration and the previous one, NMPF has urged USTR to address this behavior, which harms American dairy producers both domestically and abroad.

ITC’s 11-month investigation will evaluate Canadian and other global suppliers’ nonfat milk solids competitiveness to determine if any pricing or trade practices violate international trade rules. NMPF and USDEC will actively support the investigation and continue to insist on changes in Canada’s actions.

House-Passed Budget Reconciliation Package Advances NMPF Priorities

Posted on by Theresa Sweeney

House Republicans took key steps in May that advanced dairy policy priorities including several key farm bill items, approving President Donald Trump’s budget plan using the reconciliation process.

The full House voted to pass the large fiscal package on May 22 by a vote of 215-214. Reconciliation allows Congress to enact tax and mandatory spending legislation via a simple majority in both the House and Senate, bypassing the filibuster process in the Senate that makes it more difficult for partisan legislation to pass.

The House Agriculture Committee’s portion of the bill, passed by the committee on May 14, included multiple NMPF-backed priorities that would boost the agricultural economy and provide farmers certainty.

Relevant provisions included:

  • Extending the Dairy Margin Coverage (DMC) program through 2031; updating DMC’s production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extending the ability for producers to receive a 25% premium discount for locking in five years of coverage;
  • Providing mandatory funding for USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance conversations;
  • Folding the remaining Inflation Reduction Act conservation dollars into the farm bill baseline, resulting in increased long-term funding for popular, oversubscribed programs like the Environmental Quality Incentives Program;
  • Doubling funding for critical dairy trade promotion programs that return well over $20 in export revenue for every one dollar invested in the programs; and
  • Increasing funding for animal health programs that help to prevent, control, and eradicate animal diseases, such as the outbreak of H5N1 in dairy cattle.

The House Ways and Means Committee also adopted the tax portion of the bill on May 14. The tax package includes critical NMPF-backed language to make the Section 199A tax deduction permanent, which will allow dairy cooperatives to continue either passing the deduction back to their farmer owners or reinvesting it in their cooperatives.

“Whether it’s risk management or tax issues, the stakes are enormous for Congress to get the policy right in this legislation,” said NMPF President & CEO Gregg Doud. “House committees have done good work this week to start major elements of this bill on the right track for dairy farmers and the cooperatives they own.”

The budget reconciliation process now moves forward to the U.S. Senate, where NMPF will push to preserve the agricultural resources and tax policy gains included in the House bill. The Senate is likely to continue the process on the bill when Congress reconvenes in June.