NMPF and USDEC Applaud Record U.S. Dairy Exports in 2021

On behalf of U.S. dairy producers and manufacturers, the National Milk Producers Federation and the U.S. Dairy Export Council lauded the industry’s decades of work that’s led to a record year for U.S. dairy exports after the U.S. Department of Agriculture announced record sales of $7.75 billion in 2021, accounting for over 17% of U.S. milk production.

“The record demand for U.S. milk overseas in 2021 is a testament to the hard work and dedication of U.S. dairy farmers and the entire industry to making sure our high-quality, nutritious products feed the world as well as Americans,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “As we’ve said many times, exports represent the next frontier for U.S. dairy – it’s gratifying to see decades of effort bear fruit and only makes us more excited about the future successes ahead.”

“Outstanding results like last year’s record-setting $7.75 billion in U.S. dairy exports don’t happen overnight. They’re the result of a lot of hard work by our industry to build demand for U.S. dairy products around the world and harness the opportunities that past trade deals – from U.S. free trade agreements to the World Trade Organization’s Uruguay Round – have made available,” said Krysta Harden, president and CEO of the U.S. Dairy Export Council. “We look forward to continuing to build on this success further and to ensure we have the right trade and export supply chain policy tools to support that growth.”

Exports may have reached even higher levels had U.S. exporters not been battered by supply chain challenges that drove up costs and complexity of delivering dairy products to foreign customers. The U.S. dairy industry will need proactive trade policies that remove barriers to trade and ensure that U.S. dairy farmers and manufacturers are equipped to compete on a level playing field, the organizations added.

NMPF’s Morris on U.S. Dairy’s Trade Win Over Canada

Shawna Morris, Senior Vice President for Trade with the National Milk Producers Federation and the U.S. Dairy Export Council, discusses U.S. dairy’s win over Canada in the first trade dispute ever brought before the USMCA’s dispute settlement panel on RFD-TV. The panel ruled against Canada in a case brought by the United States over its unfair allocation of quotas that limited U.S. dairy access to Canada agreed to as part of USMCA.

 

Dairy Cooperative Leader Highlights Need for New Market Access Opportunities at Virtual Town Hall

Robert Chesler, CEO of the United Dairymen of Arizona, emphasized the importance of securing new market access opportunities through bilateral or multilateral Free Trade Agreements during a virtual town hall organized today by Farmers for Free Trade (FFT). For American dairy farmers to remain competitive in the international market, the United States must unlock new export markets, Chesler said.

As FFT members, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) have a leading role in carrying out its mission of informing the public about the benefits of free trade and supporting the pursuit of beneficial trade agreements that expand export opportunities for American farms.

During today’s virtual event, Chesler spoke of the challenges that American dairy exporters face as the United States’ trade competitors continue to secure greater dairy market access in key export markets. He noted that countries such as New Zealand, Australia, and the EU are aggressively pursuing new trade deals, which then harms the competitiveness of U.S. dairy products at a time when international demand is growing. In his remarks, Chesler said that policy actions focused on increased competition and removing burdensome market barriers are key to sustaining our existing export markets and opening additional opportunities for U.S. dairy producers.

“We urge the Administration to seek Trade Promotion Authority renewal to go after new trade agreements,” Chesler noted in his comments. “This is critical to realizing fully the potential of dairy markets in places like Vietnam, Indonesia, the United Kingdom and other major dairy purchasers. In the meantime, the U.S. should be using all types of trade tools to expand access and reduce barriers to U.S. exports with major agricultural importing markets.”

An NMPF and USDEC member based in Tempe, the United Dairymen of Arizona is a full-service milk marketing cooperative founded in 1960. Its farmer-owned manufacturing facility produces milk powder, cream, butter, and a variety of other dairy ingredients, many of which are exported around the world.

“We thank Robert for representing the industry and outlining provisions that could improve our export market,” said Jim Mulhern, NMPF president and CEO. “American dairy farmers support thousands of jobs in rural communities. Unfortunately, the lack of a trade agenda that focuses on opening markets limits our ability to grow. We need the administration to aggressively pursue greater market access opportunities to ensure American dairy exporters can effectively compete with other dairy exporting nations that continue to ink new agreements.”

“We applaud Robert’s remarks today about the competitive disadvantage that U.S. dairy producers are facing and encourage this administration to address the issue by engaging in negotiations with our trading partners,” said Krysta Harden, USDEC president and CEO. “What we are seeing today are unfavorable tariff rates when compared to our competitors and regulatory barriers that are hampering our exporters’ ability to access their full market potential. USDEC strongly supports UDA’s call to action for the administration to use its trading tools to pursue new opportunities.”

NMPF’s Bjerga on Holiday Dairy Demand, Milk Pricing

 

NMPF Senior Vice President of Communications Alan Bjerga discusses how dairy demand may fare over the holiday season as COVID worries clash with consumer cravings for eggnog. Meanwhile, U.S. senators are looking at milk pricing, a discussion NMPF is leading thanks to its nationwide scope and diverse membership. Bjerga spoke in an interview on RFD-TV.

NMPF’s Mulhern Speaks at Annual Meeting

 

NMPF President and CEO Jim Mulhern speaks at the organization’s annual meeting in Las Vegas, NV on Nov. 16.

NMPF’s Morris Says Ports Crisis Requires Federal Action

 

Current supply chain strains at U.S. ports will need improvements in federal policies to provide both short- and longer-term solutions, NMPF Senior Vice President for Trade Shawna Morris said in an interview with the National Association of Farm Broadcasters. “The fact that the market is not improving, that things are not sorting themselves out and that we don’t seem to be around the corner,” Morris said, “really points to the need for more government introduction into this process through the legislative side and through the administration side to help deal with this.”

NMPF’s Castaneda Discusses Ports Backup

 

NMPF and U.S. Dairy Export Council Executive Vice President Jaime Castaneda discusses backups at U.S. ports, how delays in dairy shipments can threaten trade reliability and relationships, and how federal policy can be improved to alleviate dairy export challenges on the Adams on Agriculture podcast.

USMCA Dairy Enforcement in Focus

As NMPF continues to reiterate to the U.S. government the need for greater market access opportunities for U.S. dairy, the Trade Policy team is highlighting a need for strong enforcement of agreements already in place to ensure American dairy producers are provided the access already negotiated – notably the U.S.-Mexico-Canada Agreement (USMCA).

In two National Association of State Departments of Agriculture (NASDA) meeting sessions on Oct. 21 and 26 with state agricultural commissioners in October, NMPF staff highlighted the importance of the ongoing dispute settlement proceedings over Canada’s allocation and administration of dairy tariff-rate quotas that run counter to its commitments under the new trade pact. In addition, NMPF emphasized the need for diligence regarding Canada’s other USMCA dairy commitments and for a heightened focus on preserving smooth trade flows with our largest export partner, Mexico.

USDEC, NMPF Commend Senate Confirmation of Cindy McCain for U.S. Representative to the United Nations Agencies for Food and Agriculture

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) support the Senate confirmation yesterday of Cindy McCain’s nomination to serve as U.S. Representative to the United Nations Agencies for Food and Agriculture. The United States’ active involvement in the three Rome-based U.N. food agencies, including the Food and Agriculture Organization (FAO), is critical as countries and their food producers combat hunger.

“Through Codex Alimentarius and other programs, the FAO plays a key role in setting global standards for the movement and consumption of safe food. U.S. dairy producers, manufacturers, and exporters rely on strong U.S. leadership in FAO convenings to ensure policy recommendations and decisions are science-based,” said Krysta Harden, President and CEO of USDEC. “With a wealth of experience working across international boundaries, Cindy McCain is well-positioned to serve as the next U.S. Representative to the UN Agencies for Food and Agriculture.”

As the global conversation on sustainable food systems shifts from the UN Food Systems Summit to work in the Rome-based agencies, it is critical that the U.S. has a strong voice in international fora to amplify the role that the U.S. dairy and agricultural industry is playing in advancing sustainability efforts. American dairy farmers, processors, and manufacturers are leaders in advancing voluntary action to reduce environmental impacts, including an industry-wide goal to achieve net-zero carbon emissions by 2050 and a first-of-its kind voluntary National Dairy Farmers Assuring Responsible Management (FARM) Animal Care program, which sets high standards for animal care, housing, and antibiotic stewardship for 99% of all milk originating in the United States.

“The position of U.S. Ambassador to the UN Food Agencies is uniquely important as countries grapple with feeding a growing world population in a sustainable manner. UN forums, including the important follow up work initiated by the Food Systems Summit, are opportunities for U.S. dairy to showcase our sustainability efforts, and it is vitally important for the U.S. dairy industry to be well represented in these discussions,” said Jim Mulhern, President and CEO of NMPF. “With a long and rich career devoted to serving people around the world, Cindy McCain epitomizes the qualities needed to serve the American people in Rome.”

Ports Crisis Costing Dairy Farmers, NMPF’s Castaneda Says

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.

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.”