NMPF Executive Vice President, Policy Development & Strategy Jaime Castaneda discusses potential dairy trade issues between the U.S. and Colombia, the latest on FMMO updates, and common food names with host Jesse Allen on this Agriculture of America podcast.
Tag: dairy trade
NMPF, USDEC Urge U.S. Government to Preempt Colombian Trade Barriers
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are asking the U.S. government to prepare a plan to “leverage all available tools” should Colombia move forward with imposing countervailing tariffs on U.S. milk-powder exports, making that request in a letter sent Friday to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack.
NMPF and USDEC also commended a complementary Congressional letter sent Friday to Colombian Ambassador to the United States Luis Gilberto Murillo in response to the investigation. Led by Reps. Jim Costa, D-CA, Adrian Smith, R-NE, Jimmy Panetta, D-CA and Dusty Johnson, R-SD, the letter highlights that the U.S. and Colombian dairy industries should be working collaboratively to promote policies that strengthen the dairy sector instead of launching “damaging protectionist investigations.”
Colombia’s recent decision to initiate an unwarranted Subsidies and Countervailing Measures investigation into U.S. exports of milk powder is a tariff threat without merit, USDEC and NMPF say in the letter, noting that no causal link exists between U.S. milk powder exports and the injury alleged by Colombian officials. The letter also explains that imported milk powder products and domestically produced fluid milk are not interchangeable ingredients in a food manufacturing facility.
“The U.S.-Colombia Free Trade Agreement has been a success story for American and Colombian producers and consumers alike,” said Krysta Harden, president and CEO of USDEC. “Initiating unfounded investigations undermines this progress and is a step backward in our trade relationship. We appreciate the Ag Trade Caucus leaders for recognizing this investigation for what it is – baseless. USDEC commends the U.S. interagency team for their extensive work on the ongoing investigation and will continue to work closely with the U.S. government and Congress as the legal process moves forward.”
“NMPF appreciates Representatives Costa, Smith, Panetta and Johnson for standing up for American dairy producers’ market access rights,” said Gregg Doud, president and CEO of NMPF. “We will continue working with the U.S. government to ensure this unsubstantiated investigation doesn’t set a dangerous precedent.”
NMPF, USDEC Expand Strong Partnerships in South America
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) advanced a pair of partnerships in South America this week. The organizations signed a Memorandum of Understanding (MOU) with Abraleite, a prominent Brazilian milk producers association, and renewed an existing MOU with Argentine farmer organization Sociedad Rural Argentina (SRA).
The agreements enhance cooperation between the United States and South American dairy industries, focusing on critical areas such as the economic and social significance of the dairy sector and the removal of trade barriers affecting both producers and consumers.
“Our engagements in South America this week underscored the shared challenges and opportunities facing dairy producers and processors in the United States, Brazil and Argentina,” said Krysta Harden, president and CEO of USDEC. “Partnerships with likeminded organizations have been proven to be crucial as we strive to promote the benefits of dairy on the international stage and tackle attempts to erect trade barriers throughout the Americas.”
The updated MOU with SRA includes the launch of a Sustainability and Trade Taskforce, an initiative to provide a balance to European policies that could unfairly impact producers in the United States and Argentina. Objectives include demonstrating that livestock production is a cornerstone of sustainable food systems and advocating for science-based trade policies.
“Dairy producers throughout the Western Hemisphere confront many of the same issues and priorities,” said Gregg Doud, president and CEO of NMPF. “We look forward to working alongside Abraleite and SRA to advance policies that promote dairy and limit trade barriers.”
The two MOUs follow a partnership signed on June 4 with the Colombian dairy organization Asoleche. The partnership formalized USDEC and NMPF’s prior collaboration with Asoleche, demonstrating the value in focusing on areas of common ground, in contrast to the politically driven countervailing duty investigation into U.S. milk powder exports recently initiated by the Colombian government.
In addition to the Latin American partnerships in Argentina, Brazil, and Colombia, USDEC and NMPF have also established MOUs with the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).
NMPF Advances Dairy Export Prospects in South America
NMPF’s Jaime Castaneda joined USDEC leadership and staff in Brazil July 28-31 to explore market opportunities and address trade barriers for U.S. dairy products. While there, Castaneda met with key executives, agribusiness leaders, and policymakers in São Paulo and Brasília, Brazil. The discussions in Brazil focused on the quality, safety, and sustainability of U.S. dairy products and the tariff and nontariff barriers to reaching the market.
The group then traveled on to Argentina for additional meetings Aug. 1-3.
A key focus of the mission was the signing of two Memoranda of Understanding (MOUs). NMPF and USDEC established a new MOU with Abraleite in Brazil to foster collaboration and strengthen trade relationships. The organizations also plan to renew an existing MOU with Sociedad Rural Argentina, continuing their commitment to cooperation and support for U.S. dairy exports and a unified voice at international gatherings.
NMPF Grows Latin American Network
Strengthening its trade and dairy priorities in Latin America, NMPF and USDEC signed a June 4 memorandum of understanding (MOU) with the Colombian Association of Dairy Industry (Asoleche).
The agreement details objectives that the U.S. and Colombian industries will undertake to improve knowledge sharing and eliminate trade barriers between the two countries. The MOU complements similar agreements USDEC and NMPF have made throughout Latin America, including with Sociedad Rural Argentina, the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).
Gregg Doud, president and CEO of NMPF, said, “The U.S. and Colombian dairy industries share many of the same values and priorities. We’re excited to work alongside Asoleche to promote positive, sound policies that build a stronger dairy industry in the Americas and internationally.”
NMPF Supports Indonesia School Milk Pledge as Market Share Grows
NMPF Executive Vice President of Trade Policy and Global Affairs Shawna Morris joined U.S. Dairy Export Council (USDEC) staff in Indonesia from June 18-21 to advance the U.S.-Indonesia Technical Collaboration Project on Dairy and encourage steps to increase dairy trade in what is becoming an increasingly important market.
The trip took place as the country prepares to fulfill a new pledge from incoming president Prabowo Subianto to provide free milk to Indonesian schoolchildren as part of a new school meals program Indonesia plans to launch. Indonesia, meanwhile, is a rising consumer of U.S. dairy, with exports rising 28 percent over the past five years to becoming the second biggest customer in the Southeast Asia region.
A joint effort to provide forward-looking technical and educational support for local dairy producers, the U.S.-Indonesia Technical Collaboration Project on Dairy was spurred by a 2023 National Association of State Departments of Agriculture (NASDA) trade mission to Indonesia which USDEC President and CEO Krysta Harden joined.
NMPF and USDEC are working with NASDA, the Wisconsin Agriculture Department, New Mexico Department of Agriculture, and New Mexico State University to develop technical education modules that provide to Indonesian small-scale dairy farmers guidance and best practices for achieving sustainable, healthy, and higher-yield dairy production.
NMPF and USDEC staff met with a host of local industry and government leaders, discussing the progress in launching the joint capacity building project as well as the importance of addressing Indonesia’s tariff and non-tariff barriers to unlock complementary U.S. dairy exports that can fully meet the country’s expected higher level of dairy demand.
Work Continues to Strengthen Supply Chains
By Tony Rice, Director, Trade Policy, National Milk Producers Federation
America’s dairy producers rely on a global supply chain that is reliable, transparent, and predictable to thrive in the competitive global dairy market — a reality made apparent during the COVID-19 pandemic, when supply chain snarls created headaches for dairy and the entire global economy.
But while many pandemic-era export issues have eased, an emerging threat to secure, reliable U.S. rail shipping is worsening.
Organized crime groups are increasingly breaking into shipping containers headed from the Midwest to West Coast ports in search of high-value consumer products. That’s creating serious food safety issues and forcing exporters to return the cargo at a financial loss, with limited recourse for insurance claims.
The National Milk Producers Federation (NMPF), in collaboration with the U.S. Dairy Export Council (USDEC), is tackling the issue on two fronts. Exporters experiencing break-ins are being connected with relevant railroads to determine best practices to mitigate theft, including lock and tracking recommendations. Meanwhile, NMPF is engaged with the Federal Bureau of Investigations, Surface Transportation Board, Homeland Security Investigations, and rail police forces to identify options to heighten policing efforts and best practices for reporting break-ins. NMPF and USDEC are also pursuing new appropriations funding for a Homeland Security task force dedicated to addressing supply chain theft, with language specific to agricultural cargo.
Encouragingly, the Biden Administration is implementing new guardrails to prevent dairy exporters from having to deal with the sorts of record costs, unprecedented fees, and unpredictable shipping schedules that occurred during the pandemic.
That work started two years ago when NMPF fought hard to help shape and pass into law the Ocean Shipping Reform Act of 2022, which mitigated unfair and harmful carrier practices. The law’s far-reaching nature has resulted in a lengthy and deliberative implementation process — one to which NMPF has dedicated almost two years of engagement to ensure the rules are fair for dairy exporters.
That work paid off when the Federal Maritime Commission’s final rule on detention and demurrage billing practices took effect May 28. The rule reflects official recommendations from NMPF and USDEC, including important clarity on who should be billed, the time frames for billing, and a streamlined dispute process.
In tandem with upcoming rulemaking from the maritime commission on what determines a carrier’s unreasonable refusal to deal or negotiate, these statutes will bring much-needed stability to what has been a difficult shipping market to navigate. These developments are especially timely given the potential disruptions that a full reopening of the Red Sea would have on sailing schedules, as well as ongoing East Coast port labor negotiations.
While there are many moving pieces in shipping legislation, NMPF is engaging with Congress on two critical new bills. The bipartisan Ocean Shipping Reform Implementation Act would update supply chain data standards, and the Ocean Carrier Rail Storage Charges Act is a bill to clarify jurisdictional gaps between the Surface Transportation Board and the Federal Maritime Commission regarding fees oversight.
As dairy exporters navigate uncertain waters, NMPF and USDEC remain dedicated to supporting a resilient and secure supply chain. The work continues to ensure that U.S. dairy exporters continue to thrive in a dynamic global market.
This column originally appeared in Hoard’s Dairyman Intel on June 13, 2024.
U.S. Dairy Earns Investment from New Market Development Program
USDEC received a $10 million award from USDA for its work on international dairy market development under its first allocation of funding under the Regional Agricultural Promotion Program (RAPP) announced May 20 following a strong push from NMPF and USDEC for increased investment in market promotion. USDA established RAPP last October to expand U.S. agriculture exports to new markets where demand for high-quality agricultural products is growing, including Southeast Asia, Latin America, the Middle East, and Africa.
RAPP’s launch was prompted by requests from Senate Agriculture Committee Chair Debbie Stabenow, D-MI, and Ranking Member John Boozman, R-AR to USDA regarding the need for greater international market expansion program funding.
In advance of that request, NMPF and USDEC advocated extensively with Congress regarding the importance of that additional investment, particularly at a time of dormant administrative trade policy initiatives.
NMPF Talks Trade and Collaboration with EU
NMPF staff met with European Union government officials and agriculture groups on April 8 as part of the U.S.-EU Collaboration Platform on Agriculture. The forum was launched by Secretary Tom Vilsack and EU Agriculture Commissioner Janusz Wojciechowski in 2021 to strengthen the relationship between the two industries and discussing best practices to collaboratively address shared challenges.
The meeting kicked off with a series of panel discussions. NMPF executive vice president for trade policy and global affairs Shawna Morris spoke on a panel entitled “The Future of the Livestock Sector: Pressures and Opportunities.” Morris underscored the U.S. dairy sector’s long-standing leadership on animal care through NMPF’s FARM program and ongoing work to reduce greenhouse gas emissions, led by the Innovation Center for U.S. Dairy.
Given the European Union’s tendency to impose burdensome regulations on its trading partners, Morris emphasized the importance of incentive-based policies, as opposed to counter-productive, prescriptive rules, particularly around climate and consumer preferences.
Following the conference, Morris participated in a subsequent discussion with EU Agriculture Ministry officials at an event organized by the U.S. Food and Agriculture Dialogue for Trade at the European Union’s embassy.
NMPF Secures Dairy Market Access Priorities in House Trade Program Renewal Bill
The House of Representatives introduced a bill on April 15 that would renew the Generalized Systems of Preferences (GSP) trade program with new agriculture-specific eligibility criteria. NMPF worked with Congressional offices to secure language giving U.S. dairy producers a fairer opportunity to sell their products in key markets.
Inactive since its expiration at the end of 2020, the GSP trade program eliminates U.S. duties for thousands of products imported to the U.S. from developing countries. U.S. dairy tariff rate quotas are not affected by the GSP program. To be GSP-eligible, countries must adhere to certain human rights and economic conditions. The House’s bill introduces new provisions that would provide a much-needed boost for the U.S. dairy industry, including requirements that beneficiary countries:
- Provide open and equitable market access to U.S. agriculture exports and
- Protect the generic use of common food and beverage terms.
Paired with the introduced Safeguarding American Value-Added Exports Act, this bill is positioned to strengthen the United States’ hand in combatting nontariff trade barriers in various export markets, including countering the European Union’s campaign to monopolize common name foods.
NMPF and USDEC Advocate for Enhanced Dairy Trade Opportunities at USTR Hearing
Tony Rice, Trade Policy Director for the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC), will testify this afternoon before the U.S. Trade Representative (USTR) on how U.S. trade policy can strengthen supply chain resiliency and ensure that U.S. dairy continues to grow as a global leader.
The U.S. dairy industry exported more than $8 billion worth of products in 2023, supporting thousands of jobs and contributing significantly to the national economy. Rice in his testimony will highlight the need for a more proactive U.S. trade policy agenda that aggressively tackles global trade barriers and enhances market access to key partners.
“An inclusive, worker-centered trade policy should reflect the central role that comprehensive trade agreements and American exports play for the agricultural economy and the many farmers and workers throughout the supply chain who rely on it,” Rice says in his prepared statement. “Expanding export sales does not only support America’s farms, but also traditionally underserved workers in rural communities and in companies supplying inputs and services, in downstream food manufacturing plant jobs, and in cities with large port facilities heavily dependent on trade.”
Rice also recommends that USTR incorporate dairy-specific elements in trade negotiations, drawing on the precedent set by annexes for wine in various agreements, or the broad recognition of the U.S. regulatory system for processed foods including dairy in the U.S.-Panama Trade Promotion Agreement.
“Such steps would facilitate smooth, more reliable and robust dairy supply chains with our trading partners,” Rice says in his statement.
Find NMPF and USDEC’s full testimony here.
NMPF’s Doud Discusses HPAI, FMMO Modernization
NMPF President & CEO Gregg Doud discusses dairy’s response to Highly Pathogenic Avian Influenza (HPAI), the path forward for Federal Milk Marketing Order Modernization through an approach that puts farmers first, and opportunities for dairy in global markets. Doud spoke in an interview with the Agriculture of America podcast.
