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

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

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

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

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

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

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

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

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

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.

Taking On EU Dairy Malfeasance is Welcome — and Long Overdue

President Trump’s tariff measures toward trading partners across the world sends a clear signal to trading partners: The United States is no longer going to stand for shenanigans that lead to unlevel playing fields. That’s especially true in dairy. And within dairy, the European Union stands apart as an example of shenanigans in action. If the president’s tariffs spur the negotiations that place their policies within the realm of reality and fairness, the effort will be worthwhile.

American farmers have long voiced their concerns about the unfairness of the EU’s agricultural trade policies, arguing that these policies create significant challenges for them in the global marketplace. Some facts: In 1980, the US exported $12 billion in agricultural products to the 27 current members of the European Union. That $12 billion was the high-water mark until 2023. We’ve gone almost 45 years bouncing in a range of between $6 billion and $12 billion annually to the European Union — accounting for zero export growth since the Carter administration. Meanwhile, the trade deficit in agricultural products is growing, and gaping: $23.6 billion at last count.

Now look at dairy trade. The U.S. imports $3 billion in dairy from the European Union — and exports $167 million. We export more cheese to New Zealand, a major dairy exporter with a population of 5 million people — or roughly the same population as Ireland, Slovakia or Norway.

That’s pathetic.

Why do we have that gap, and how do we close it?

From more than 30 years of dealing with EU agriculture, the answer to the first part is simply this: The EU is reflexively protectionist in agriculture. The U.S. “beef hormone” case against the EU, which dates to the 1980s, is a classic example: The U.S. won.  The EU has never complied.

The EU Farm to Fork Initiative, all the certification requirements and protocols, everything that requires processes in the EU, all of it is designed to keep ag imports out. The EU approach to common cheese names like “parmesan” — making it impossible for Americans to sell their products as what they actually are — is a crowning example of the creative, and inappropriate, use of non-tariff barriers to protect their market.

And none of that even touches on the subsidies the Europeans lavish on their farmers, and the schemes they use to push their products at low prices on global markets, ensuring that U.S. farmers repeatedly struggle with unfair competition as they build their own relationships via high-quality, affordable products.

Any effort to close this gap is long overdue; the Trump administration’s strategy starts this process and squarely puts the focus — and the pressure — where it should be: On Brussels, which has artificially created this lopsided trade imbalance and needs to take tangible steps to level the playing field.

In my three decades of experience, the European Union has proven impossible to deal with in agriculture — but if the president stays steady and forceful on EU tariffs, we may finally get their attention. We have no problem with the president hiking tariffs on EU imports higher to drive them to the table — the current ones are a bargain for the EU, considering the highly restrictive barriers the EU imposes on our dairy exporters. And if Europe retaliates against the United States, the administration should respond swiftly and strongly in kind by raising tariffs yet further on European cheeses and butter.

Much has been written about the president’s aggressive stances toward traditional allies such as the EU, questioning the wisdom of taking on our “friends.” But with friends like these, who needs enemies? Relationships are reciprocal, and fairness is the foundation of goodwill. There has been no fairness from the EU toward American farmers — for decades.

All that said, hope remains that American dairy can finally make real progress through productive negotiations. This administration can help achieve a level playing field for U.S. dairy producers by tackling the EU’s numerous tariff and nontariff trade barriers that bog down our exports. It can create a brighter future for U.S. dairy trade — and build hope among farmers who know that the administration is listening to them, and now the world as well.

As the administration moves forward with negotiations, we’re hoping for swiftly negotiated, constructive outcomes. We will do whatever we can to help break this decades-old logjam that has hurt U.S. farmers and consumers on both sides of the Atlantic. The field is wide open, and we are poised for progress.


Gregg Doud

President & CEO, NMPF

 

NMPF Capitalizes on U.S. Tariff Leverage to Advance Dairy

NMPF and the U.S. Dairy Export Council (USDEC) held strategic meetings throughout April to improve access to key foreign markets as the Trump Administration attempts to negotiate new terms with U.S. trading partners following its April 2 reciprocal tariff plan announcement.

  • Taiwan: Executive Vice President for Policy Development & Strategy Jaime Castaneda and Trade Policy Director Tony Rice, together with the California Milk Advisory Board, traveled to Taiwan from March 31 to April 3 for meetings on dairy market access. The group met with Taiwanese trade and agricultural ministry officials, importers, the U.S. and Taiwanese chambers of commerce, among others, to highlight Taiwan’s dairy tariff disparity between the United States and New Zealand and seek prioritization of tariff relief through the newly commenced U.S.-Taiwan trade negotiations.
  • Japan: Castaneda hosted Yoichi Watanabe, Vice Minister of Japan’s Ministry of Agriculture, Forestry and Fisheries on April 14 to discuss U.S. dairy trade priorities in the context of U.S.-Japan negotiations. American dairy exporters secured expanded access for certain products under the U.S.-Japan Phase One Agreement signed in 2019, but NMPF is seeking further tariff elimination and quota expansion for a range of dairy products in the new set of negotiations.
  • Indonesia: Executive Vice President for Trade Policy & Global Affairs Shawna Morris shared U.S. dairy priorities in an April 24 meeting with a member of the Indonesian Parliament and the Senior Vice President of the Indonesian Chamber of Commerce. She also joined NMPF President and CEO Gregg Doud, USDEC President and CEO Krysta Harden and additional USDEC staff in a subsequent meeting with additional Indonesian Chamber of Commerce delegation members on May 2. The conversations focused on NMPF’s goals for tariff reductions and resolving long-standing challenges associated with Indonesia’s dairy facility listing requirements. During that May 2 meeting NMPF and USDEC signed a Memorandum of Understanding with the Indonesian Chamber of Commerce which commits the organizations to work collaboratively to enhance U.S.-Indonesia trade relationships, including through the use of U.S. dairy products to meet Indonesia’s growing dairy needs.

Castaneda and Morris continue to communicate U.S. dairy trade priorities with the administration as cleared confidential advisors to ensure tariff and nontariff barriers to dairy trade are prioritized in the ongoing negotiations.