Tag: dairy trade

NMPF Board of Directors Approves Comprehensive Farm Bill Recommendations

Posted on by Alan Bjerga

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

Posted on by Alan Bjerga
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

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.