U.S. dairy exports are being hindered by supply chain backups as U.S. ports, NMPF Executive Vice President Jaime Castaneda says in an interview on RFD-TV. “It is holding up the amount of product that we can export overseas, therefore that actually impacts the price of every single producer in the country,” Castaneda said.
Tag: dairy trade
Dairy Farmers Reinforce Trade Priorities with Ambassador Tai at Agriculture Event Hosted by Rep. DelBene
The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today thanked Representative Suzan DelBene (D-WA) for hosting U.S. Trade Representative Ambassador Katherine Tai for a roundtable in Burlington, WA to discuss agriculture trade priorities. At the event, Washington farmers and food producers from various sectors, including dairy, raised the importance of implementing a trade policy that expands agricultural exports.
Washington dairy farmers Jeremy Visser and Mike Schoneveld, member-owners of USDEC and NMPF-member Northwest Dairy Association/Darigold, conveyed the importance of exports and global market access for the dairy industry. Visser and Schoneveld praised Rep. DelBene for her leadership on dairy trade issues to help expand opportunities for dairy in international markets.
“NMPF appreciates the hard work that Rep. DelBene has long undertaken to encourage trade policies that help expand American agricultural exports. Her recognition of the critical role that exports play for farmers’ incomes and the rural economy has been central to the pursuit of trade policies that help deliver value to American dairy farmers and expand jobs in America. Dairy farmers are grateful to Ambassador Tai for launching the dispute settlement case against Canada’s restrictive access to U.S. dairy and appreciate Rep. DelBene’s advocacy on this matter as well. At the same time, dairy farmers are also keen to see a proactive trade agenda of opening new markets around the world,” said Jim Mulhern, president and CEO of NMPF.
“As solid as our track record has been to date, America’s dairy industry has not reached its full trade potential on the global stage. Each dairy product that we export – whether it’s cheese, milk powder, or another essential dairy ingredient – has a powerful impact across the entire supply chain. Expanding while also defending market share abroad is critical to U.S. dairy manufacturers and exporters, especially cheese exporters that are encountering barriers disguised by the European Union’s Geographical Indications agenda,” said Krysta Harden, president and CEO of USDEC. “We thank Rep. DelBene for hosting Ambassador Tai to hear from Washington’s agricultural sector directly on how to support that work through new trade agreements, enforcing trade agreements, and resolving trade barriers in other countries.”
Idaho Dairy Producer Testifies Before Congress on USMCA Enforcement Importance
National Milk Producers Federation (NMPF) Executive Committee member Allan Huttema said USMCA enforcement is essential for the agreement to reach its potential for U.S. dairy farmers in testimony today at a U.S. Senate Finance Committee hearing on the impact of the U.S.-Mexico-Canada Agreement (USMCA) on U.S. dairy. Huttema operates an 800-cow dairy in Parma, Idaho and serves as chair of the Darigold and Northwest Dairy Association boards, both of which are NMPF and U.S. Dairy Export Council (USDEC) members.
“I thank Chairman Wyden and Ranking Member Crapo, my own senator, for extending me the opportunity to discuss the impact the USMCA has had on my farm and the thousands of other dairy farms throughout the country,” said Huttema. “Enforcement of trade agreements like USMCA is important to ensure we retain the ability to supply high-quality cheeses, milk powders and a variety of other dairy products to customers around the world.”
“NMPF and the dairy producers it represents are grateful to the Senate Finance Committee for inviting Allan to discuss the benefits that the USMCA has brought U.S. dairy producers and cooperatives,” said Jim Mulhern, President and CEO of NMPF. “But as Huttema said so well, adequate enforcement is necessary to ensure American dairy producers are provided the access promised in the agreement. We are grateful to the Senate Finance Committee members for their advocacy in support of the recently initiated dispute settlement proceedings over Canada’s dairy tariff rate quotas (TRQs) – a critical step in enforcement of this agreement.”
The $6.5 billion worth of U.S. dairy products exported each year underpins the economic health of dairy producers, processors, and manufacturers across the United States. American dairy exports create more than 85,000 direct jobs and have a nearly $12 billion economic impact. Whether it is Canada’s TRQ administration or Mexico’s array of new regulations intended to limit imports, NMPF and USDEC have urged the U.S. government to ensure the USMCA is fully enforced. Enforcement secures the access extended to U.S. dairy producers in the USMCA and sends a strong message to other U.S. trading partners that attempts to subvert trade obligations will not be tolerated.
“The U.S. Dairy Export Council appreciates the Senate Finance Committee and its members for hearing Allan’s testimony and answers regarding the importance of the USMCA and new trade opportunities to the U.S. dairy industry,” said Krysta Harden, President and CEO of USDEC. “USDEC agrees with Allan regarding the need to pursue greater market access opportunities for high-quality American dairy products that our international consumers demand. USMCA was an important step forward, but it’s not enough. We need new trade agreements to expand on Congress’ hard work in passing USMCA. The EU is filling the vacuum that American trade policy is leaving – an issue that Congress needs to address with additional market opportunities for U.S. exports. We appreciate Allan sharing his insight and concerns with the agreement’s implementation and its impact on dairy farmers, processors and manufacturers throughout the United States.”
Dairy Farmers Welcome Ambassador Tai to Trade Forum Hosted by Rep. Kind
The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today commended Representative Ron Kind (D-WI) and U.S. Trade Representative Ambassador Katherine Tai for hosting a trade forum at a Wisconsin dairy farm. Several dairy farmers had the opportunity to voice their concerns and priorities for dairy exports with Ambassador Tai and highlight the impact of trade policy on American dairy producers.
USDEC and NMPF members participating in the event emphasized the need for greater market access for dairy products and the impediments trade barriers pose to greater international trade. At the event, dairy farmers belonging to NMPF and USDEC members Associated Milk Producers, Inc., Dairy Farmers of America, FarmFirst, and Organic Valley, among others, praised Congressman Kind for his leadership as he continues to encourage the Biden Administration to work toward greater opportunities in international markets. The event was hosted by Hamburg Hills Farm, an Organic Valley member located in Stoddard, Wisconsin.
“On behalf of dairy producers and their cooperatives, NMPF thanks Congressman Kind for his ongoing advocacy in securing trade opportunities for dairy farmers in Wisconsin and nationwide. We’re grateful that Ambassador Tai and hardworking USTR staff are pursuing a dispute settlement case to finally secure Canadian market access granted under USMCA,” said Jim Mulhern, President and CEO of NMPF. “We look forward to working with Ambassador Tai, Representative Kind, and their staff to reduce foreign trade barriers through country-to-country dialogues and new trade agreements.”
“Obtaining and expanding market share abroad is critical to U.S. dairy manufacturers and exporters. The global dairy industry is more competitive than ever, so we greatly appreciate Congressman Kind hosting Ambassador Tai on a dairy to provide tangible examples of why the U.S. dairy value chain depends on international trade,” said Krysta Harden, President and CEO of USDEC. “We’re thrilled the ambassador could visit the farm to see for herself how America’s dairy farmers are producing for the global marketplace. We appreciate both of their personal efforts to ensure Canada meets its tariff-rate quota obligations under the U.S.-Mexico-Canada Agreement (USMCA).”
USDEC & NMPF Appreciate Congressional Oversight; Urge Continued Federal Action on Ports Issues
“The U.S. Dairy Export Council (USDEC) thanks Coast Guard & Maritime Transportation Subcommittee Chairman Salud Carbajal and Subcommittee Ranking Member Bob Gibbs for holding a House Transportation & Infrastructure (T&I) hearing today to examine the impacts of shipping container shortages and delays on supply chains critical to global food supply,” said Krysta Harden, USDEC President and CEO. “While receiving testimony and answers from Federal Maritime Commission (FMC) Chair Maffei and Commissioner Dye is a step forward in resolving the issues the U.S. dairy industry faces, we urge House T&I leadership to ensure this oversight action results in tangible action to alleviate and resolve the challenges exporters face.”
“Dairy producers throughout the country are feeling the consequences of port congestion as delays in loading U.S. dairy exports onto carriers creates a chilling effect on farm-gate milk prices,” said Jim Mulhern, National Milk Producers Federation (NMPF) President and CEO. “We thank Chairman Carbajal and Ranking Member Gibbs for holding a hearing today to identify what enforcement authority the FMC requires to resolve this crisis and ensure American dairy exports can continue unimpeded.”
Specifically, USDEC and NMPF believe the FMC should require ocean carriers to certify that they are complying with the agency’s guidelines. Additionally, the organization urge Congress to allocate sufficient resources to the FMC to ensure complaints of carrier malpractice are prioritized and investigations are expedited to prevent shipping carriers from engaging in unfair trade practices.
Members of Congress Seek Delay in European Union Action to Prevent Disruption of U.S. Dairy Exports
The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today thanked congressional leaders seeking to prevent trade disruptions of U.S. dairy exports to the European Union (EU). Representatives Ron Kind (D-WI), Jackie Walorski (R-IN), Jim Costa (D-CA) and John Katko (R-NY) wrote to EU Ambassador to the United States Stavros Lambrinidis, urging a delayed implementation of new EU certification requirements for imports of U.S. dairy and composite food products and greater recognition of the strength of the U.S. system in producing safe exports.
“On behalf of America’s dairy farmers, processors, and exporters, we thank Representatives Kind, Walorski, Costa and Katko for emphasizing to European leadership the need to prevent significant trade disruptions to U.S. dairy exports,” said Krysta Harden, USDEC President and CEO. “The U.S. government and American dairy industry have been making a reasonable request to delay implementation of the EU’s new certification requirements, which fail to recognize the safety of U.S. dairy products and the high level of animal health protections in our industry. If the EU wants to steer its trade relationship with the U.S. toward stronger ground, it should start by changing its plan to choke off access for dairy and other products later this summer.”
“We appreciate the bipartisanship support by key members of Congress writing to the EU Ambassador, calling for immediate action to delay implementation of new, unwarranted certification requirements for U.S. dairy and composite food products until U.S. and EU government officials negotiate a mutually agreeable solution,” said Jim Mulhern, NMPF President and CEO. “U.S. dairy farmers and processors continually have to chase new mandates by the European Union to retain our current access, even when there are no safety concerns with American dairy products. This type of unwarranted red tape is exactly the type of nontariff trade barrier that drives a gaping dairy trade deficit between the U.S. and the EU.”
The European Commission published new certification requirements at the end of 2020 for a wide range of food products, including dairy, adding confusing and vague requirements that threaten to upend U.S. dairy exports to the EU. Two sets of new requirements have posed concerns to the U.S. dairy industry: (1) revised import certificates for dairy products; and (2) new certification requirements for “composite products,” which are processed food products that contain ingredients of both animal and plant origin.
NMPF Offers Support to USTR Katherine Tai to Expand Markets
NMPF Chairman Randy Mooney and President and CEO Jim Mulhern met with U.S. Trade Representative Katherine Tai on May 3 to discuss the dairy industry’s trade policy priorities.
Issues addressed included the importance of expanding market access opportunities around the world for American dairy products and enforcement our agreements, including ensuring Canada fully implements its tariff-rate quotas for U.S. dairy consistent with the U.S.-Mexico-Canada Agreement (USMCA). Mooney and Mulhern also raised concerns with EU policies that restrict the use of common food names by American cheese producers.
In a follow-up letter to Ambassador Tai, NMPF laid out how the dairy industry’s commitment to sustainable dairy production and the real-world progress America’s dairy farmers have made to reduce greenhouse gas emissions can further USTR’s climate and sustainability goals if more export opportunities are available to U.S. dairy products.
NMPF, working with the U.S. Dairy Export Council, continues to advocate for the importance of opening and expanding global markets, enabling American dairy farmers to compete on a level playing field and meet the world’s dairy needs with high-quality, sustainable products.
CEO’s Corner: Trade + Sustainability = Dairy’s Next Frontier
Among all the great stories dairy can tell in 2021 as it celebrates National Dairy Month in June, from its reaffirmation by grocery shoppers to farmer leadership in COVID-19 vaccine drives, the sector’s gains in global trade is a true standout. U.S. dairy exports volumes reached a record in March, with the percentage of domestic milk production sent overseas that month the second highest ever. Revenues are also increasing – the $688 million worth of dairy products shipped abroad in March was the highest since 2014.
Trade is always top of mind at the National Milk Producers Federation, and of course at the U.S. Dairy Export Council, with whom we work closely. As the U.S. dairy-farmer organization that encompasses the full range of issues that shape a farmer’s success, we at NMPF are also focused on an important part of the trade story that’s less obvious, but increasingly important: how boosting dairy sales overseas depends on progress on sustainability investments at home. Just as it is in the United States, sustainability is increasingly becoming crucial for global consumers. The good news is U.S. dairy is a leader globally on sustainability just as it is on quality and affordability – crucial considerations for feeding the world, which ultimately benefits both farmers at home and consumers abroad.
First, the part we’ve always known: U.S. dairy farmers deliver affordable nutrition that meets global food-security needs. Nutrient-dense U.S. dairy products have nourished billions of people worldwide. They provide nutrients critical to preventing and addressing malnutrition, including high-quality protein, calcium, phosphorus, potassium, iodine, and vitamins B2 and B12. And because U.S. dairy combines high quality and competitive cost, its export creates broad-based nutritional benefits worldwide.
But another, increasingly important element of U.S. dairy’s appeal is its world-leading sustainability. Even as they produce high-quality, affordable products, U.S. dairy cooperatives and the entire industry are cultivating and supporting sustainable food systems that are good for people, animals, and the planet. This serves global consumers and reflects their needs. It dovetails with the environmental, economic and social aspects of sustainability as defined by the UN Food and Agriculture Organization, and it also aligns with the values of stewardship U.S. dairy farmers have always embodied. Sustainability matters to dairy, as U.S. consumers have discovered — and as the world increasingly knows.
U.S. dairy’s commitments are tangible and measurable. The industry’s 2050 Environmental Stewardship Goals and its Net Zero Initiative are putting the U.S. dairy sector on a path toward becoming carbon neutral or better by 2050 while optimizing water use and improving water quality. The same emphasis on sustainable production is at the core of the National Dairy FARM Program, which helps U.S. dairy farmers remain leaders in animal care, environmental stewardship, workforce development, antibiotic stewardship, and biosecurity.
Such sector-wide emphasis on best practices and sustainability leadership has already brought results. Innovative farming practices helped reduce dairy’s carbon footprint per gallon of milk by 19 percent from 2007 to 2017, while using 30 percent less water and 21 percent less land. UN FAO research has found that North America was the only region in the world to reduce farm-level dairy greenhouse gas (GHG) emissions between 2005 and 2015, even as milk production increased.
Choosing American milk products directly reduces global dairy emissions. That’s a great message for the world about U.S. milk. And make no mistake, the world needs what we have to offer. Global dairy consumption is expected to rise 16 percent in the next decade, and with competitors such as New Zealand and the European Union facing constraints on production due to their own policies, the opportunities for U.S. dairy brought through sustainable production are real.
So let’s raise a glass to sustainability this National Dairy Month. U.S. dairy farmers and its world of consumers are working to improve their health and the health of their planet every day. This is a success that can be sustained. And in the U.S. dairy community, it is what we pledge to do.
NMPF’s Bjerga on the Need for Trade Enforcement
U.S. dairy exports are at record levels, showing the potential of overseas markets. But trade integrity is necessary to expand dairy sales, making enforcement of the USMCA trade agreement a must, NMPF Senior Vice President of Communications Alan Bjerga said on RFD-TV.
NMPF Offers Dairy Industry Support to Ambassador Tai on Expanding Agricultural Markets
In a meeting today with U.S. Trade Representative Katherine Tai, Jim Mulhern, President and CEO of the National Milk Producers Federation, and NMPF’s Chairman Randy Mooney offered to closely collaborate with Ambassador Tai and the entire Biden Administration on trade in order to strengthen the health of the U.S. dairy industry to allow for further expansion of the hundreds of thousands of dairy-reliant jobs across the country.
“From farmers to farm workers, dairy manufacturers, milk haulers, and port workers – all these are just some of the Americans that are increasingly reliant on dairy exports for their prosperity,” Mulhern said. “Expanding access for Made-In-America dairy products and eliminating the non-tariff trade barriers that impede them is fundamental to supporting the U.S. dairy industry and the millions more who depend on a robust dairy supply chain.”
In the meeting with Ambassador Tai, Mulhern emphasized the need for new market opportunities, noting in particular the importance of enforcement of existing trade agreements such as ensuring Canada meets its trade obligations; countering European Union attempts to misuse common food names through inappropriate geographical indication rules; engaging with Mexico to ensure a normal flow of trade; and concluding new market expanding trade agreements.
“We’re grateful to Ambassador Tai for taking the time to meet with us and discuss a few of the trade-related issues on the minds of America’s dairy farmers,” said Mulhern. “Our industry is an agricultural leader in improving sustainability, promoting high animal care standards, and providing high quality products. Together with the U.S. Dairy Export Council we’re eager to work closely with the Ambassador and her team to meet growing global dairy demand with sustainably produced American dairy products.”
Trade Agreement Partners Colombia, Panama Weigh Dairy Import Restrictions
NMPF, working in concert with USDEC, provided early warning to U.S. trade officials in February regarding brewing safeguard tariff and regulatory threats in two key U.S. Free Trade Agreement partners’ markets: Panama and Colombia. In discussions with USTR and USDA officials in February, NMPF and USDEC underscored the importance of preserving commitments made by each country through the free trade agreements in place with the U.S. for nearly a decade.
Sparked by growing protectionist sentiment among domestic dairy interests, the Colombian and Panamanian governments are faced with calls to apply tariff safeguards on imported cheese and milk powder from the U.S. In the case of Panama, government official have used safeguard tariffs on certain cheese and yogurt products since imports have reached levels that automatically trigger the permissible safeguards under the FTA. In the case of Colombia, local dairy producers are campaigning for safeguard tariffs to be levied on U.S. milk powder imports, a move that would upend U.S. access to its 10th-largest export market. Additionally, each government is considering labeling and other regulatory changes aimed at making U.S. dairy imports more difficult.
As both countries consider protectionist measures, NMPF will continue to work with USDEC and the U.S. government to preserve access to these markets.
ITC Blueberries Decision Heads Off Potential Retaliation Concerns
The US International Trade Commission (ITC) unanimously voted Feb. 11 to reject import restrictions on blueberries from Mexico, Canada, Argentina, Chile and Peru, ending the threat of retaliatory tariffs against U.S. dairy exports.
In testimony before USTR in August, NMPF Senior Vice President Jaime Castaneda urged the commission to avoid putting U.S. dairy producers again in the crosshairs of a trade dispute with Mexico. Per U.S. census data, over $1.4 billion of U.S. dairy products were sold to Mexico in 2020 – a market that would be at risk if tariffs on blueberry imports from Mexico are imposed.
NMPF in December joined 34 other agriculture and food groups to write the US Trade Representative (USTR) opposing limitations on blueberry imports. This broader coalition effort also secured a bipartisan, bicameral Congressional letter from Senator Kyrsten Sinema (D-AZ) and Senator Jerry Moran (R-KS) arguing against action that would invite subsequent retaliation against U.S. agricultural exports.
