Overcoming challenges is what we do

By Randy Mooney, Chairman, NMPF Board of Directors

We’ve had a lot of achievements this year, but it’s also been a challenging time.

A year ago, costs on the farm were extremely high, but we had prices that would cover that. This year, costs are still high, but prices are down. That’s a lot of stress on the farm. And we’re also dealing with problems that we’ve dealt with for years.

There are labor problems; you just can’t find anybody to work. Supply chain disruptions are closer to the farm this year. It’s milk trucks getting milk off the farm; it’s feed trucks bringing feed into the farm. It’s getting simple parts that we took for granted we could get anytime we wanted to. There are geopolitical issues and extreme weather events.

We have challenges all the time, but it just seems like we continue to have more. It seems like we’re in the eye of a storm. But as farmers, we always anticipate a moment before the dawn, before things turn, before things get good again.

One of the things I’ve learned is that a lot of the world is envious of what we have.

They’re envious because we have the Farmers Assuring Responsible Management (FARM) Program, a self-governing program. We have a government that recognizes what we’re doing with sustainability — it’s not being mandated down from the top.

We’re taking care of our own. Today, we produce more milk using fewer and fewer natural resources. We’re revitalizing rural communities. For every dollar generated in dairy farming, it turns over three to seven times in local communities, generating $750 billion in the United States. That‘s pretty impressive.

We’re nourishing families around the world through milk’s unbeatable nutritional value. I’ve dairy farmed for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm. We’re putting the most nourishing, most nutritious product known to man in that milk tank. And when that truck leaves, I know I’ve done something good.

Our ability to evolve how we work and adapt our resiliency is becoming more and more important. This year, we came together as an industry to unite around issues that helped build that resiliency. NMPF worked with member co-ops, farm bureaus, and state dairy organizations to come to consensus on the most substantial issues. Even going back to 2021, when you talk about Federal Milk Marketing Order modernization, we’ve worked hard to get these things done. Nobody knows what the outcome’s going to be, but you telling your story has made a difference.

Beyond that, we’re going to get a farm bill passed — we’re going have an extension. We’ve been working to implement the next version of FARM, FARM 5.0, that goes into effect in July. We also will work on promoting dairy’s sustainable nutrition. Dairy offers the most complete nutritional package available, and what’s amazing is that as we produce more milk, we’ll continue to use fewer natural resources. That’s the definition of sustainable nutrition.

For years, we’ve talked about sustainability in terms of environmental stewardship and how that translates into financial value for farms. Now, the financial values are there. You take solar panels, wind, methane digesters, and a lot of things happen on a farm that’s generating electricity to run your farms and to run your neighbor’s households. We’re there now. What we need is conservation funding in the farm bill through USDA grants through state and federal programs. There’s real money available to help us continue to do that, and we will.

No imitation food from a nut, a bean, or grain can hold a candle to dairy’s nutritional package. We all know that. That’s why it’s important to keep fighting the fight on plant-based alternative labeling. In the guidance that was issued earlier this year, the Food and Drug Administration (FDA) recognized and admitted that plant-based alternatives are nutritionally inferior to real dairy.

Dairy protein plays a critical role in feeding people around the world, and it can’t be replaced by alternatives, including plant-based. Consumers have the right to understand how they’re nourishing their families, and we’re going to continue to advocate for the Dairy PRIDE Act to try to get that passed in Congress.

We’re going to continue to fight for more flavored milk in schools and higher fat levels, especially for those children whose main source of nutrition is through the school milk program. Milk is essential to their diets, and we’re not going to give up that fight. We’re all part of an industry that’s doing remarkable things. We are winning.


This has been adapted from Chairman of the NMPF Board of Directors Randy Mooney’s speech at the National Milk Producers Federation annual meeting in Orlando, Fla., on Nov. 14, 2023. This column originally appeared in Hoard’s Dairyman Intel on Nov. 22, 2023.

Dairy is a staple in spite of inflation

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

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

 

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

Inflation had mixed effects

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

 

Source: NMPF-USDEC, IRI, NPD

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

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

Dairy demand persists

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

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


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

USDEC’s Harden discusses USDA Support for Trade


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

NMPF’s Jonker brings the IDF World Dairy Summit home

 

NMPF Chief Science Officer Jamie Jonker connects the themes of the World Dairy Summit, which concluded in Chicago on Thursday, to advancing the interests of U.S. dairy farmers. The summit, hosted by the United States for the first time since 1994, had attendees from 55 countries and activities from technical panels to farm tours.

Trade Team Builds International Ties While Supporting U.S. Dairy

  • Championed the introduction of the Safeguarding American Value-Added Exports (SAVE) Act to protect market access for U.S. cheesemakers
  • Secured the right of producers to use the common name “gruyere” in the U.S. market through a landmark legal victory in the U.S. Court of Appeals for the Fourth Circuit
  • Led engagement with the U.S. government to hold Canada accountable for its ongoing violations of USMCA’s dairy provisions
  • Promoted U.S. dairy’s trade initiatives and sustainability progress as lead sponsor of the Asia-Pacific Economic Cooperation’s agricultural ministerial luncheon in Seattle
  • Formed alliances with dairy and agricultural organizations worldwide to strengthen and grow NMPF’s voice.

NMPF trade activities this year have included initiatives that defend U.S. products in the global arena while expanding trade. Efforts made in collaboration with the U.S. Dairy Export Council (USDEC) and the Consortium for Common Food Names (CCFN) prompted the May 17 introduction of the bipartisan, bicameral Safeguarding American Value-Added Exports (SAVE) Act to increase U.S. government actions to protect common terms like “parmesan” and “feta” in export markets. The milestone bill to advance common name protections capped off months of congressional engagement, including a March 1 event on Capitol Hill.

The SAVE Act explicitly defines “common names” as a term ordinarily used for marketing a food product, as determined by the U.S. Department of Agriculture (USDA), and directs the U.S. government to proactively defend the rights of U.S. common name users and exporters. Led in the Senate by Sens. John Thune, R-SD, Tammy Baldwin, D-WI, Roger Marshall, R-KS, and Tina Smith, D-MN, and in the House by Reps. Dusty Johnson, R-SD, Jim Costa, D-CA, Michelle Fischbach, R-MN, and Jimmy Panetta, D-CA, the SAVE Act is expected to be incorporated into the 2023 Farm Bill. Members and supporters can make their voice heard by writing to their representatives in Congress through NMPF’s advocacy platform.

NMPF also secured a key victory for U.S. cheese producers and dairy farmers through a March 3 ruling from the U.S. Court of Appeals for the Fourth Circuit, which confirmed that “gruyere” is a common name, in opposition to French and Swiss consortiums which hoped to trademark the term in the U.S. market. The NMPF trade policy team, alongside USDEC and CCFN, worked diligently with the legal team to ensure that American gruyere producers can continue to market and sell their products in the United States.

NMPF’s dedication to building dairy exports through expanding market has included fly-ins to DC, use of congressional trade hearings to elevate dairy priorities, meetings with USTR and USDA political appointees on trade, intensive work with U.S. negotiators on using the Indo-Pacific Economic Framework to address nontariff trade barriers, and joint agricultural coalition efforts such as the trade-focused August 21 letter to 2024 Presidential candidates urging a greater commitment to trade agreements.

Efforts also extend to ensuring existing agreements deliver full benefits for U.S. dairy. NMPF commended the U.S. government’s Jan. 31 announcement that it requested a second USMCA panel to hold Canada responsible for violating the agreement’s dairy market access obligations. The announcement resulted from extensive work by NMPF with USTR and USDA last year to ensure that the second USMCA case was well-positioned for success. NMPF and USDEC since January have continued to work closely with USTR and USDA to support their case and ensure that Canada grants U.S. producers and exporters the market access negotiated and promised under USMCA.

To bolster NMPF’s work to preserve and expand market access for dairy products in markets around the world, the organization has also continued to grow its global voice and influence, forming partnerships with leading dairy and agricultural organizations overseas.

As governments around the world embrace protectionist stances and adopt ill-advised policies, NMPF strives to continue to grow its network of allies to support pro-dairy, pro-trade and science-based rules. Strengthening ties in Latin America, NMPF announced on April 20 a new collaboration with the National Agricultural Organizations from Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia and Colombia to represent the dairy and livestock industry in international climate discussions. During a trip to Japan, NMPF formalized a July 6 “Letter of Friendship” with JA-Zenchu, Japan’s Central Union of Agricultural Cooperatives, to address the common difficulties that dairy farmers in the two countries are facing. Most recently, NMPF and USDEC signed on July 27 an agreement with the Italian Dairy Association, Assolatte, to promote the nutritional benefits of dairy products and support dairy-friendly policies in international forums.

NMPF’s Morris Touts Dairy on Panel with Top Federal Ag Trade Officials

Shawna Morris, NMPF’s Senior Vice President of Trade Policy, moderated a July 12 trade policy panel with U.S. Chief Agricultural Negotiator Doug McKalip and USDA Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor at the annual U.S. Agricultural Export Development Council conference in McLean, VA.

Morris underlined the importance of exports for the U.S. agricultural industry and highlighted the ways that the Biden Administration can work with the industry to make progress in opening new markets. Morris and Tony Rice, NMPF’s Trade Policy Manager, joined USDEC staff in a series of meetings with USDA Foreign Agricultural Service attachés during the conference to brief them on dairy trade issues specific to the attachés’ markets around the world.

NMPF and USDEC also organized a July 7 letter with 22 other leading agricultural organizations to U.S. Trade Representative Katherine Tai ahead of the July 9-15 Indo-Pacific Economic Framework negotiations. The letter points out American agriculture’s preference for resuming comprehensive trade negotiations, spells out the agricultural industry’s priorities for the negotiations including securing specific commitments on common name protections, burdensome facility listing and certification requirements, and sanitary and phytosanitary barriers to trade.

NMPF Co-op Member Farmer Briefs Congress on Farm Bill Trade Priorities

Brad Vold, a Glenwood, MN farmer and a member of the Land O’Lakes cooperative, testified to the value of rules-based trade at a July 10 House Ways and Means Committee field hearing in Kimball, MN.

Vold, co-owner of Dorrich Dairy, spoke on the need for the United States to negotiate new comprehensive free trade agreements, enforce existing trade deals and address nontariff barriers to exports. Vold pointed to the importance of reducing tariffs and enforcing clear and consistent rules for trade, as well as the U.S. government’s responsibility to combat the European Union’s monopolization of common food names. NMPF’s trade policy team collaborated with Land O’Lakes and helped Vold prepare testimony and briefed congressional offices on U.S. dairy trade priorities prior to the briefing.

NMPF also participated in a July 11 briefing with congressional staff at the U.S. Capitol on the importance of USDA’s Market Access Program (MAP) and Foreign Market Development (FMD) funding to promote U.S. dairy exports. NMPF Trade Policy Manager Tony Rice explained how USDEC uses the funds to build relationships in overseas markets and promote U.S. dairy products to foreign customers. Rice emphasized that despite the proven success of the MAP and FMD investments in growing international market share, the programs have not had an increase in nearly two decades and are routinely oversubscribed.

NMPF and USDEC are working to advance bipartisan legislation to double MAP and FMD funding in the upcoming farm bill. The Expanding Agricultural Exports Act is led by Senators Joni Ernst, R-IA, Tina Smith, D-MN, Susan Collins, R-ME, and Chuck Grassley, R-IA, and the Agriculture Export Promotion Act is led by Representatives Jim Costa, D-CA, Tracey Mann, R-KS, Kim Schrier, D-WA, Ashley Hinson, R-IA, Jimmy Panetta, D-CA, Brad Finstad, R-MN, and Chellie Pingree, D-ME.

NMPF and USDEC Form Alliance with Italian Dairy Association to Promote Priorities Internationally

The National Milk Producers Federation (NMPF), U.S. Dairy Export Council (USDEC), and Italian Dairy Association (Assolatte) signed an agreement today that increases collaboration between the three groups as they promote the nutritional benefits of dairy products and support dairy-friendly policies in international forums.

The memorandum of understanding (MOU) organizes a set of objectives centered around ensuring the accurate and exclusive labeling of dairy terms for milk and dairy products and advocating for international standards and guidelines that recognize the contributions of the global dairy industry to sustainable food systems. The partnership will last through 2025.

“Our two countries each have a proud tradition of producing world-class, sustainable dairy products,” said Jim Mulhern, president and CEO of NMPF. “That shared passion will fuel this partnership as we work to proactively advance positive, sound international dairy policies.”

“Dairy producers in Italy and the United States both have incredible opportunities to grow and thrive, while also facing similar challenges that threaten that potential,” said Krysta Harden, president and CEO of USDEC. “This agreement is an important step in growing our voice as we continue to call for fair, science-based policies that support sustainable growth for dairy producers and manufacturers around the world.”

“This is an ambitious and far-reaching agreement between two giants of the global dairy industry, Italy and the United States – a cooperation that we hope will help to remove potential obstacles to the production and marketing of milk and dairy products,” said Paolo Zanetti, chairman of Assolatte.

The MOU between NMPF, USDEC, and Assolatte complements similar agreements signed last year with Sociedad Rural Argentina and the Chilean Federacion Nacional de Productores de Leche (Fedeleche), which strengthened NMPF and USDEC’s relationships in Latin America.


From left, Jaime Castaneda, USDEC and NMPF EVP for policy development and strategy, Paolo Zanetti, chairman of Assolatte, and Nick Gardner, USDEC SVP for sustainability and multilateral affairs

NMPF Board of Directors Approves Comprehensive Farm Bill Recommendations

NMPF’s Board of Directors approved June 7 a suite of farm bill policy priorities covering the commodities, conservation, trade, and nutrition titles, working to enhance federal support for producers and expand access to nutritious dairy products for consumers at home and abroad.

With the current farm bill set to expire Sept. 30, Congress is working to enact a new bipartisan five-year farm bill.  NMPF’s recommendations will aid in enacting an on-time farm bill that provides dairy producers the certainty they need as they manage their risks and resources while seeking market opportunities at home and abroad.

“The farm bill is crucial both to dairy farmers seeking to effectively manage their risk and to the consumers who benefit from the nutritious products dairy farmers work every to provide,” said Randy Mooney, chairman of NMPF’s board and a dairy farmer outside Rogersville, MO. “We stand ready to work with lawmakers as they craft this complex, extremely important legislation that touches everyone.”

In the Commodities title:

NMPF seeks to build on its successes in the last farm bill to strengthen the dairy safety net and provide producers with access to a range of risk management tools.  NMPF’s board voted to support continuing the Dairy Margin Coverage safety net while updating the program’s production history calculation.  The board also voted to prioritize improving the Livestock Gross Margin-Dairy and Dairy-Revenue Protection programs should new funding become available.

The board also voted to seek farm bill language to direct USDA to conduct mandatory plant cost studies every two years to provide better data to inform future make allowance reviews. This would complement the near-term make allowance update NMPF is pursuing through its Federal Milk Marketing Order initiative via the USDA hearing process announced last week. Similarly, the board also voted to pursue restoring the previous “higher of” Class I mover in the most expeditious manner possible, either administratively via the FMMO process or legislatively through the farm bill, in which the mover was last changed in 2018.

In the Conservation title:

NMPF is advocating for policies that better position the dairy industry to meet its voluntary, producer-led goal of becoming greenhouse gas neutral or better by 2050. NMPF’s board voted to support maintaining robust funding for voluntary conservation programs, such as the Environmental Quality Incentives Program that supports dairy farmers in their ongoing land and water resource management efforts, with additional emphasis on feed and manure management both of which are major areas of opportunity in sustainability. The board also voted to seek relief from program payment limitations that prevent the family farmers that produce most of the nation’s milk supply from fully using these programs.

In the Trade title:

NMPF will support policies recognizing the growing importance of trade for U.S. dairy, with exports accounting for one-sixth milk of all U.S. milk production, a share expected to grow. NMPF’s board voted to support enhancing funding for trade promotion programs like the Market Access Program and the Foreign Market Development program, which promote American-made dairy and agriculture products that compete with heavily subsidized foreign products and return well over $20 in export revenue for every dollar invested.

The NMPF board also voted to seek language to protect common food names, as embodied in the bipartisan, bicameral SAVE Act that would establish an official list of common food and beverage names and direct USDA and the U.S. Trade Representative to prioritize this issue in international trade negotiations.

In the Nutrition title:

NMPF will support policies that reflect dairy’s role as an excellent source of 13 essential nutrients, some of which are under-consumed, according to the most recent Dietary Guidelines for Americans. The Supplemental Nutrition Assistance Program is vital to linking the food we produce as farmers to families across the country facing difficult circumstances.  NMPF’s board voted to support the enhancement of federal nutrition programs to provide nutritious dairy products to beneficiaries.  NMPF also supports the bipartisan Dairy Nutrition Incentives Program introduced in the Senate to encourage SNAP participants to choose healthful dairy products at the grocery store.

 

NMPF Opposes Shortsighted Formula Legislation

ARLINGTON, VA – NMPF strongly opposes legislation introduced today by Senators Mike Lee, R-UT, and Bob Menendez, D-NJ, and Representatives Adrian Smith, R-NE, and Don Beyer, D-VA, that would increase U.S. vulnerability to infant formula supply disruptions by increasing U.S. reliance on imported formula and formula inputs. The legislation would unilaterally and permanently remove tariffs and tariff rate quotas on infant formula and infant formula base powder, resulting in job loss and foreign dependence.

“This bill would make American families more reliant on foreign companies for their infant formula supply and puts in place new one-way-street trade conditions that would harm dairy farmers, cooperatives and processors,” said Jim Mulhern, president and CEO of NMPF. “Instead of weakening our domestic infant formula sector and putting American jobs at risk, we ask that Congress work with us to reinforce and expand our domestic production capacity.

“We strongly support two-way dairy trade,” Mulhern said. “That’s why we advocated for passage of existing U.S. free trade agreements and why we’ve been vocal proponents of resuming trade negotiations to expand dairy trade opportunities; but we vehemently object to putting unilateral import expansion on the backs of American dairy farmers.”

This bill is a misguided response to the dire shortages of infant formula that occurred last year after a temporary production crisis at a large U.S. formula manufacturing plant. In response to that short-term, unique emergency, NMPF supported the 2022 Formula Act and did not oppose passage of the subsequent 2022 Bulk Infant Formula to Retail Shelves Act, which increased import access at a time of acute need. Both laws rightfully expired at the end of 2022, once U.S. production had recovered to pre-crisis levels.

FDA noted in May 2023 testimony to the House Oversight Committee that formula stocking levels are now higher than those seen prior to last year’s temporary crisis, making the legislation introduced today all the more nonsensical.

“American dairy farmers and dairy cooperatives are committed to ensuring a robust, dependable supply of infant formula for American families,” said Randy Mooney, NMPF chairman and a dairy farmer near Rogersville, MO. “The United States can absolutely more than meet domestic demand, and should in fact be positioning itself as a net-exporter of infant formula. The U.S. dairy industry is a proven leader in providing milk powder, whey, lactose and cheese to consumers all around the world – infant formula should be no different.”

Mulhern said that “the idea that the best way for the United States to secure a dependable supply of infant formula is through foreign companies and an unreliable global supply chain is simply wrong. Congress should focus its efforts instead on better supporting the American companies, workers, and farmers who supply nearly all of this country’s formula and formula ingredient needs. Those steps should include reforms to WIC program procurement; ensuring new domestic formula firms have the support needed to gain market authorization; and negotiating new trade agreements to expand export opportunities for American-made formula and other dairy products.”

NMPF Co-Leads Dairy Dialogue on Climate

NMPF’s Executive Vice President for Policy Development and Strategy Jaime Castaneda traveled to Argentina for a regional seminar April 19-20 on, “The road to sustainability in livestock production in the Americas,” Coordinated in partnership with USDEC, the Pan-American Dairy Federation (FEPALE) and the Federation of Rural Association of the Mercosur (FARM).

The seminar facilitated discussion of common opportunities and challenges for the dairy and livestock sectors in the Americas on sustainability and other food systems policy issues. Organizers also adopted a set of joint principles to formalize collaboration on climate, the role of trade, and the importance of sustainable productivity growth.

The new partnership will focus on engaging government officials and international organizations to promote climate policies that are attainable for the dairy and livestock industries, given their unique needs.

With the UN Food Systems Summit Stocktaking Moment and COP28 taking place next year, this collaboration will play a significant role in ensuring dairy and livestock producers have a seat at the table and shaping the discussion of the agricultural industry’s part in reaching climate goals.