Tag: dairy trade

NMPF Co-Leads Dairy Dialogue on Climate

Posted on by Theresa Sweeney

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.

U.S. Trade Representative Highlights Importance of Common Names Protection in Intellectual Property Report

Posted on by Theresa Sweeney

The Consortium for Common Food Names (CCFN), U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) expressed their appreciation today for the U.S. Trade Representative’s (USTR) prioritization of the protection of common names in this year’s Special 301 Report. The organizations urged USTR to swiftly move forward with more assertive steps to preserve export access for food producers relying on common food and beverage terms.

Published annually, the report outlines global challenges related to intellectual property, which includes continued and escalating efforts from the European Union to abuse and misuse geographical indications (GI) to confiscate generic terms – such as “parmesan” or “bologna” – for its own producers.  This year’s report reflects several of the main areas of concern that CCFN detailed in comments submitted in January, with support from NMPF and USDEC.

“As USTR’s report clearly lays out, the EU’s aggressive common name confiscation campaign presents a significant threat to producers and exporters in the U.S. and elsewhere,” said Jaime Castaneda, executive director of CCFN. “Looking forward, it’s urgent that the Administration use its full suite of tools to protect the market access rights of producers using common food and beverage names.”

Restricting the right of producers to use common names is far more than just a labeling issue – it strips companies of the right to market products using the names that consumers know and love, takes products off shelves, and hurts workers up and down the supply chain.

“For far too long, the EU has abused GIs to erect trade barriers that prevent U.S. dairy from competing on a more level global playing field,” commented Jim Mulhern, president and CEO of NMPF. “The U.S. government has ample opportunities – including through existing bilateral trade engagement forums and upcoming trade negotiations – to fight back. We’ll be urging and supporting those efforts on behalf of American dairy farmers.”

“The U.S. dairy industry relies on exports to succeed, so when foreign government ban or restrict the use of common cheese names, it impacts companies, family farms, workers and the industry at large,” explained Krysta Harden, president and CEO of USDEC. “American-made dairy can compete with any products in the world. We thank USTR for acknowledging what a sizable problem this is for American producers and call on the Administration to stand up to unfair trade barriers so that our industry can go toe to toe with global competitors.”

U.S. Dairy Announces New Collaboration to Lead on Climate

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) announced today the signing of a set of principles and a new partnership with the National Agricultural Organizations (FARM) from Argentina, Brazil, Paraguay, Uruguay, Chile, Bolivia and Colombia to constructively engage governments and international organizations around the world on the issues of livestock, agriculture, climate and trade.

Far too often, global convenings and climate proposals reflect ideologies at the expense of science, ignore progress that the industry has made in reducing emissions, and try to impose one-size-fits-all approaches on an industry they do not fully understand.

In collaboration with the National Agriculture Organizations (FARM), and the Pan-American Dairy Federation (FEPALE), USDEC and NMPF will coordinate and support engagements with government officials and international organizations in promoting policies that encourage sustainable productivity growth while taking into consideration the unique needs of the livestock industry as well as profitability for farmers.

To launch this important strategic collaboration, USDEC, NMPF, FARM and FEPALE co-hosted a seminar on April 19 and 20, 2023, on “The Road to Sustainability in Livestock Production in the Americas,” bringing together influential leaders from across the livestock sectors of the MERCOSUR and South America region. Attendees heard from global experts and discussed ways to reduce the livestock sector’s greenhouse gas emissions while remaining viable for the next generation of farmers.

Both the partnership and meeting are being organized with an eye toward the UN Food Systems Summit Stocktaking Moment and COP28, where the organizations will play a role in shaping the discussion around agriculture’s role in a sustainable future.

NMPF Strengthening Ties with USTR

Posted on by Theresa Sweeney

A series of March meetings between NMPF staff and new U.S. Chief Agricultural Negotiator Doug McKalip is strengthening ties with the critical agency for U.S dairy exports, with NMPF President and CEO Jim Mulhern and others sharing industry priorities.

Officially confirmed by the Senate late last year, Amb. McKalip is U.S. agriculture’s top advocate at the U.S. Trade Representative’s office and a critical ally to America’s dairy industry.  Mulhern sat down with Amb. McKalip over dinner to talk over dairy trade challenges and opportunities on March 1.

Two days later, Trade Policy Manager Tony Rice joined the U.S. Agricultural Coalition for World Trade Organization (WTO) Reform in a meeting with Ambassador McKalip to discuss dairy priorities in the context of the WTO’s Ministerial Conference taking place early next year. Finally, those conversations were followed by an in-depth, policy-focused dialogue with NMPF trade policy leaders Jaime Castaneda and Shawna Morris on March 9.

NMPF also worked with congressional allies to support their preparations for questioning U.S. Trade Representative Katherine Tai during trade oversight hearings held by the Senate Finance Committee on March 23 and the House Ways and Means Committee on March 24, pressing Amb. Tai to pursue market-liberalizing opportunities for U.S. agriculture and removal of nontariff barriers to dairy exports, including the EU’s aggressive campaign to monopolize common cheese names.

NMPF Leads Push for More Market Access

Posted on by Theresa Sweeney

Dairy producers representing NMPF members Michigan Milk Producers Association and Agri-Mark flew to Washington on Feb. 1-2 to renew calls for a more proactive and dynamic trade policy from the U.S. government.

Organized by Farmers for Free Trade, in which NMPF is an active member, dairy producers met with members of Congress and staff serving on agriculture and trade committees this session. NMPF’s Tony Rice joined the fly-in as well and represented NMPF as part of the FFT-organized meeting with Alexis Taylor, the new USDA Under Secretary for Trade and Foreign Agricultural Affairs, on Feb. 3.

NMPF and its members in each meeting stressed the importance of market access to the success of American farmers, producers and exporters, and specifically asked lawmakers to advance trade promotion authority to help make the political environment more conducive to passing trade agreements.

NMPF’s Jaime Castaneda and Shawna Morris also met with Under Secretary Taylor on Feb. 17 to address a full suite of dairy trade priorities, including the need for a more competitive landscape for U.S. dairy exporters, a robust U.S. agenda on protecting common names like “parmesan,” strong enforcement of existing trade deals, and heightened action to beat back nontariff barriers in key dairy markets around the globe.

Record Exports Drive U.S. Dairy Demand

Posted on by Theresa Sweeney

By William Loux, Vice President, Global Economic Affairs, NMPF and U.S. Dairy Export Council.

U.S. dairy exports excelled again in 2022, with record shipments further cementing its role as the key demand driver for U.S. milk.

For the third consecutive year, the U.S. dairy industry set a record for the volume of dairy products exported on a milk solids equivalent basis, with the current record now surpassing 2.4 million metric tons — the equivalent of over 40 billion pounds of raw milk, or 18% of the U.S. milk supply.

Perhaps even more impressive, for the fifth time in the last six years, U.S. exports grew by more than domestic consumption. Of that six-year window, 2019 was the only time in that span when exports grew by less than domestic sales. That’s the year the U.S. faced prohibitive retaliatory tariffs on dairy products destined for China. In addition, African Swine Fever was cratering China’s demand for whey products. At the same time, U.S. skim milk powder exporters were facing headwinds from EU intervention storage stocks that began hitting the market at below-market prices in 2019. All this noted, with 2019 being a particularly unique exception, the international market has been the driver of U.S. dairy demand growth for the past six years.

Success can’t be taken for granted

European milk production came on strong at the tail end of 2022 as favorable weather and margins boosted output. Conversely, demand within the European Union bloc has reportedly weakened as consumers feel the squeeze on their wallets, which is causing European wholesale prices to dip. With more supply, weaker internal demand, and low prices, we can expect significantly more competition from Europe in the international market than we did in 2022 when their exports dropped 10% during the first 11 months of the year.

Additionally, the international demand picture remains uncertain. Despite the clear success of U.S. dairy, the world’s collective dairy trade actually dropped 4% in 2022 — primarily on account of China. The world’s largest dairy product-importing nation contracted dairy imports by 21% as the country drew down inventories built in 2021, witnessed a surge in domestic milk supplies, and instituted movement restrictions, all of which damaged dairy consumption and imports.

China’s return to the market in 2023 remains uncertain. The lockdowns have been lifted, but milk production in the country is still growing, and inventories of milk powder reportedly remain heavy. Optimistically, consumption in the country will rebound and stockpiles will be reduced, setting the stage for China’s return as a global buyer in the middle part of the year. But until they do, New Zealand, which exported over 40% of its production to China at its peak, will have plenty of products available for customers elsewhere, meaning increased competition with the United States.

Outside of China, the demand picture will likely be mixed depending on local conditions, but broadly, slower economic growth and inflation are expected to challenge lower-income consumers and push buyers to look for bargains.

Overall, I am forecasting international demand in 2023 to return to growth, but not at a spectacular rate, and with more suppliers competing for business.

Given the expected headwinds this year, industry investment in international markets will be critical to success. To set another record in 2023, the U.S. must continue the work being done to build demand for U.S. dairy products overseas and expand market access in key markets, all while maintaining reliability with international customers by being engaged and responsive.

This column originally appeared in Hoard’s Dairyman Intel on Feb. 21, 2023.

NMPF Statement on Record Dairy Exports

Posted on by Theresa Sweeney

From NMPF President and CEO Jim Mulhern:

“For the third consecutive year, U.S. dairy farmers have proven how their dedication to innovation and sustainability leadership increasingly have made them the world’s provider of choice for nutritious dairy products. In both value and in volume, U.S. sales are at all-time highs, and in 2022, a record percentage of U.S. milk production was exported overseas. This happened despite the headwinds our exporters battled last year, which included supply chain challenges, a lack of new trade agreements to establish more level playing fields abroad, and other barriers to trade that threatened to upend progress.

“Let this be a signal to the world: U.S. dairy farmers are, and will be, a growing force for global nutrition, sustainability and health, as shown by the increasing preference of consumers worldwide for the products they create. We’re excited to see today’s year-end export totals reflect a vision we’ve been pursuing for decades, and we look forward to seeing further progress in the years to come.”

NMPF’s Morris Talks Trade, Canada on Podcast

Posted on by Alan Bjerga

NMPF and USDEC Senior Vice President for Trade Shawna Morris discusses the need to hold accountable for its trade commitments on the Agriculture of America podcast. Canada’s improper allocations under its Tariff-Rate Quota system is impeding the market access promised U.S. dairy farmers under the USMCA trade agreement, making a legal remedy necessary. The U.S. needs to strongly defend its farmers, Morris said; while farmers are hoping for a fair solution with Canadian compliance, retaliatory tariffs against Canadian products may be necessary, she said.

NMPF Communicates Dairy Priorities to New Ag Trade Representatives, Congratulates Hill Leaders

Posted on by Theresa Sweeney

NMPF and USDEC sent a letter on Jan. 23 to the U.S. Trade Representative’s Chief Agricultural Negotiator Doug McKalip and USDA Under Secretary of Trade and Foreign Agricultural Affairs Alexis Taylor congratulating them on their confirmations and detailing the market access and trade priorities that NMPF is looking to advance in 2023 and beyond.

After many months of delay, Congress finally confirmed McKalip and Taylor at the end of 2022. NMPF and USDEC strongly supported both McKalip and Taylor’s nominations and called on Congress to quickly confirm both nominees throughout the delay. NMPF looks forward to working with Taylor and McKalip to expand market access and push for other dairy priorities.

NMPF and USDEC also sent letters congratulating the new leadership of the House committees responsible for agricultural export promotion efforts and trade policy. The letters to Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) and Ranking Member David Scott (D-GA), and Ways and Means Committee Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) relayed NMPF and USDEC’s dairy trade priorities, including increased funding for the Foreign Market Development and Market Access Programs, stronger protections for common names like “parmesan” and “feta,” and a more ambitious approach to tacking barriers to U.S. dairy exports.

NMPF will work closely with both committees to heighten the Congressional focus on agricultural trade issues in the coming year.

December CWT-Assisted Dairy Export Sales Totaled 7.1 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 25 contracts in December, adding 7.0 million pounds of American-type cheeses and 37,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 65.2 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean and Oceania, and will be shipped from December 2022 through June 2023.

CWT-assisted 2022 dairy product sales contracts year-to-date total 99 million pounds of American-type cheese, 657,000 pounds of butter, 8.8 million pounds of cream cheese and 30.7 million pounds of whole milk powder. This brings the total milk equivalent for the year to 1.223 billion pounds on a milkfat basis.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.