Tag: regulations

U.S. defends dairy in Colombia

Posted on by Alan Bjerga

Jaime Castaneda HeadshotBy Jaime Castaneda, Executive Vice President, National Milk Producers Federation 

NMPF and the U.S. Dairy Export Council (USDEC) are working to preserve market access for American dairy exports to Colombia following the Colombian government’s abrupt July 5 decision to initiate a politically driven “subsidies and countervailing measures” investigation into milk powder imports form the United States.

The move has little to do with U.S. milk and everything to do with Colombia’s domestic politics. In an effort to reverse slipping popularity with voters, the Colombian government has decided to misuse trade tools usually reserved for private industry to counter legitimate damage from “dumped” product sold at below market rates. In contrast to this, Colombia’s government has instead launched this case on its own, alleging that U.S. milk powder exports from 2020 to 2023 were unduly subsidized by U.S. government programs and damaged Colombian dairy producers. Unfortunately, due to the investigation’s political nature, the Colombian government could impose tariffs on imported U.S. milk powder products as early as September 16. That would be certain to stifle trade to the market.

NMPF and USDEC have been working with U.S. exporting cooperatives and companies, legal teams, and the U.S. government to submit a strong, data-driven defense proving that this investigation is without merit.

In their counterarguments, NMPF and USDEC note that the investigation is baseless for many reasons, including:

  1. Product comparison: Imported U.S. milk powder and domestically produced Colombian fluid milk are distinct products with different physical characteristics and end uses, making them non-comparable.
  2. Subsidy misinterpretation: The Colombian government incorrectly assumes that U.S. dairy producer support directly benefits milk powder manufacturers, which is not the case.
  3. Lack of causal link: U.S. milk powder imports haven’t caused any damage to the Colombian dairy industry. Evidence simply doesn’t exist.

Because of the political nature of this investigation, a fair result is not guaranteed, which means that U.S. government intervention may be necessary. NMPF and USDEC are urging U.S. Trade Representative Katherine Tai and U.S. Department of Agriculture Secretary Tom Vilsack to use all available tools to respond forcefully should Colombia impose tariffs on U.S. milk powder imports despite the lack of evidence meriting such a result.

Congress is also paying attention. A letter sent by the bipartisan leads of the U.S. House of Representative’s Agricultural Trade Caucus to the Colombian Ambassador to the United States highlights the U.S. dairy industry’s long-standing commitment to work with its Colombian counterparts and encouraged the two industries to work together to strengthen the dairy sectors in both countries instead of pursuing meritless investigations.

Colombia’s investigation will play out over months, starting with preliminary results and potential provisional measures as early as September 16, followed by a public hearing and additional comment periods.

At stake is $70 million in annual U.S. milk powder exports to Colombia.

While not a trivial amount by any means, this investigation could also set a dangerous precedent for like-minded governments to imitate. Over the past several years, protectionist sentiments have grown around the world, and Latin America is no exception. The region has become a battleground in the effort to preserve existing trade opportunities, flaring up from Peru and Ecuador to Brazil and Mexico.

While cooperating with the investigation, NMPF and USDEC continue to engage with policymakers and allied organizations to seek a positive conclusion. Regardless of which way this investigation turns out, it’s important for the United States to respond forcefully and let its trading partners know that such maneuvers will not be tolerated.

This column originally appeared in Hoard’s Dairyman Intel on Sept. 5, 2024.

NMPF’s Bjerga on Milk’s Value for Everyone

Posted on by Alan Bjerga

NMPF Executive Vice President of Communications Alan Bjerga discusses the plethora of low- and no-lactose dairy products available to meet America’s nutritional needs in an interview with Dairy Radio Now. With societal concerns about equitable nutrition access informing conversations over the upcoming Dietary Guidelines, dairy needs to make it clear that it’s a nutrition solution for all, Bjerga says.

Work Continues to Strengthen Supply Chains

Posted on by Alan Bjerga

Tony Rice Headshot

By Tony Rice, Director, Trade Policy, National Milk Producers Federation

America’s dairy producers rely on a global supply chain that is reliable, transparent, and predictable to thrive in the competitive global dairy market — a reality made apparent during the COVID-19 pandemic, when supply chain snarls created headaches for dairy and the entire global economy.

But while many pandemic-era export issues have eased, an emerging threat to secure, reliable U.S. rail shipping is worsening.

Organized crime groups are increasingly breaking into shipping containers headed from the Midwest to West Coast ports in search of high-value consumer products. That’s creating serious food safety issues and forcing exporters to return the cargo at a financial loss, with limited recourse for insurance claims.

The National Milk Producers Federation (NMPF), in collaboration with the U.S. Dairy Export Council (USDEC), is tackling the issue on two fronts. Exporters experiencing break-ins are being connected with relevant railroads to determine best practices to mitigate theft, including lock and tracking recommendations. Meanwhile, NMPF is engaged with the Federal Bureau of Investigations, Surface Transportation Board, Homeland Security Investigations, and rail police forces to identify options to heighten policing efforts and best practices for reporting break-ins. NMPF and USDEC are also pursuing new appropriations funding for a Homeland Security task force dedicated to addressing supply chain theft, with language specific to agricultural cargo.

Encouragingly, the Biden Administration is implementing new guardrails to prevent dairy exporters from having to deal with the sorts of record costs, unprecedented fees, and unpredictable shipping schedules that occurred during the pandemic.

That work started two years ago when NMPF fought hard to help shape and pass into law the Ocean Shipping Reform Act of 2022, which mitigated unfair and harmful carrier practices. The law’s far-reaching nature has resulted in a lengthy and deliberative implementation process — one to which NMPF has dedicated almost two years of engagement to ensure the rules are fair for dairy exporters.

That work paid off when the Federal Maritime Commission’s final rule on detention and demurrage billing practices took effect May 28. The rule reflects official recommendations from NMPF and USDEC, including important clarity on who should be billed, the time frames for billing, and a streamlined dispute process.

In tandem with upcoming rulemaking from the maritime commission on what determines a carrier’s unreasonable refusal to deal or negotiate, these statutes will bring much-needed stability to what has been a difficult shipping market to navigate. These developments are especially timely given the potential disruptions that a full reopening of the Red Sea would have on sailing schedules, as well as ongoing East Coast port labor negotiations.

While there are many moving pieces in shipping legislation, NMPF is engaging with Congress on two critical new bills. The bipartisan Ocean Shipping Reform Implementation Act would update supply chain data standards, and the Ocean Carrier Rail Storage Charges Act is a bill to clarify jurisdictional gaps between the Surface Transportation Board and the Federal Maritime Commission regarding fees oversight.

As dairy exporters navigate uncertain waters, NMPF and USDEC remain dedicated to supporting a resilient and secure supply chain. The work continues to ensure that U.S. dairy exporters continue to thrive in a dynamic global market.

This column originally appeared in Hoard’s Dairyman Intel on June 13, 2024.

NMPF’s Yeiser Stepp Talks Biosecurity Best Practices

Posted on by Alan Bjerga

Emily Yeiser Stepp, Executive Director of the National Dairy Farmers Assuring Responsible Management (FARM) Program, discusses best practices in biosecurity as dairy farmers navigating a new federal order on testing and interstate animal movement in an interview with the National Association of Farm Broadcasters. “We still don’t know a lot about this virus and are taking action to limit that risk of virus spread, not only to protect our own dairy herds but also those poultry facilities that are being impacted, as well as protecting our dairy workers,” Yeiser Stepp said.

NMPF’S Hanselman Explains New USDA School Meal Dairy Regulations

Posted on by Chris Galen

NMPF’s Director of Regulatory Affairs, Miquela Hanselman, explains to Dairy Radio Now listeners the changes to the federal school lunch program meal requirements just announced by USDA.  The new rules will maintain a place at the table for flavored milk, while also making modest adjustments to sodium levels that won’t negatively impact cheese offerings in school meals.

NMPF’s Paul Bleiberg Outlines USDA Decision On WIC Dairy Purchases

Posted on by Chris Galen

NMPF’s Executive Vice President Paul Bleiberg gives Dairy Radio Now the background on this week’s decision by USDA to adjust spending for WIC program recipients, and how that will impact dairy purchases, including milk, as the changes are implemented.

NMPF’s Bjerga on FMMO Hearing Progress

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga discussed progress so far at USDA’s Federal Milk Marketing Order hearing, which began last month, in an interview with RFD-TV. Testimony thus far has focused on proper pricing for milk components, an area in which dairy farmers have made significant headway in the past quarter century.

Lab-based ‘milk’ Labeling Fight Is Here

Posted on by Alan Bjerga

By Clay Detlefsen, Chief Counsel, NMPF

One would think that four decades’ worth of lessons would lead to some truths being learned. But as laboratory-based dairy imitators enter the marketplace, the U.S. Food and Drug Administration (FDA) seems poised to repeat the same mistakes it has made with plant-based beverages, in which their labels mislead consumers into confusing one thing with something very different.

At issue is a product called “Bored Cow,” which markets itself as “milk.” While the product does include a whey protein that’s the product of fermentation in a laboratory setting, other elements on its long list of exotic ingredients show what should be obvious to every consumer: This isn’t milk as nature has ever known it.

NMPF has been fighting with FDA over its lack of enforcement of dairy standards of identity for decades. What Bored Cow is doing is taking one whey protein that’s synthetically made by precision fermentation, blending that with a myriad of other food ingredients that are quite disgusting-sounding in many cases, and calling the product “dairy milk.”

That’s the wrong description for what they’re selling.

Milk has 13 essential nutrients. It contains 400 different fatty acids. It has got two categories of proteins, casein and whey, numerous micronutrients, and it’s an incredibly complex matrix that delivers an enormous nutritional package for consumers. You cannot replicate that in a laboratory. Milk is natural and it’s good for you. And you can’t duplicate what comes from a cow in a stainless steel vat.

But so far, FDA is allowing this violation of its standards of identity to persist, though finally after decades of inaction, FDA has gotten the message that consumers are confused and misled about the nutritional inferiority of most if not all plant-based milk alternatives. We are still hopeful FDA will step up and enforce its rules. Earlier this year, FDA proposed a voluntary labeling guidance in which they ask marketers of plant-based milk alternatives to voluntarily disclose their products’ nutritional offerings and, in most cases, those products’ nutritional inferiorities.

While NMPF appreciates the more explicit side-by-side comparison, the overall FDA guidance is flawed and we want it withdrawn. When it comes to Bored Cow and its one synthesized dairy protein, we are concerned that this, too, is a nutritionally inferior imitator that will mislead consumers and deliver a mediocre product that could harm human health.

One caveat that lab-based companies are using to distinguish themselves from plant-based imitators is that their products include one component of dairy milk. While that’s the case, it doesn’t change how very different in overall composition these products actually are — the same fundamental challenge that is also at the root of concerns over plant-based labeling. In both cases, processors are largely ignoring existing rules and regulations and doing whatever they want — not in the consumer’s interest but in their own. It’s sloppy, lazy marketing and it needs to stop.

As with plant-based foods, FDA needs to enforce its rules and regulations and send a clear message to the plant-based folks, and now the synthetic “milk” processors, that the dairy rules are on the books, and they, like everyone else, have to follow them. Otherwise, the integrity of the marketplace — and the FDA’s role as the protector of consumer interests — will continue to erode. That’s not what consumers deserve. And it’s completely preventable — if only, after four decades, FDA finally learns.

This column originally appeared in Hoard’s Dairyman Intel on July 31, 2023.

NMPF’s Bjerga Discusses Benefits of Milk-Price Modernization

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communication discusses how the Federal Milk Marketing Order Modernization plan the organization submitted to USDA this week would create a firmer foundation for the U.S. dairy industry, with farmers being paid a price that better reflects the quality of their milk and sharing their price risk more equitably with processors. Ultimately, once needed updates are fully in place, everyone will benefit from milk that’s valued appropriately across the industry, he said. Bjerga speaks with Mike Pearson on the Agriculture of America podcast.

NMPF’s Bjerga on Plant-Based vs. Lab-Based Labeling Concerns

Posted on by Alan Bjerga

 

NMPF Senior Vice President of Communications Alan Bjerga discusses the differing challenges of plant-based beverages that use dairy terms vs. lab-created dairy alternatives using a replicated dairy protein, in an interview with WEKZ radio in Janesville, WI. While plant-based beverages have widely divergent nutritional profiles, lab-based dairy does incorporate actual dairy — but doesn’t duplicate the complex interactions and processes that create a true dairy product.

FDA Guidance On Plant-Based Beverages’ Use of Dairy Terms is a First Step, NMPF Says While Calling for Complete Transparency in Labeling

Posted on by Alan Bjerga

In response to today’s FDA guidance on plant-based beverages, which guides manufacturers of plant-based beverages to disclose their nutrient inferiority and acknowledges the public health concern of nutritional confusion over such beverages, the National Milk Producers Federation, which has led the fight for labeling transparency, released the following statement:

From Jim Mulhern, President and CEO of the National Milk Producers Federation:

“Today’s FDA announcement is a step toward labeling integrity for consumers of dairy products, even as it falls short of ending the decades-old problem of misleading plant-based labeling using dairy terminology. By acknowledging both the utter lack of nutritional standards prevalent in plant-based beverages and the confusion over nutritional value that’s prevailed in the marketplace because of the unlawful use of dairy terms, FDA’s proposed guidance today will provide greater transparency that’s sorely needed for consumers to make informed choices.

“Still, the decision to permit such beverages to continue inappropriately using dairy terminology violates FDA’s own standards of identity, which clearly define dairy terms as animal-based products. We reject the agency’s circular logic that FDA’s past labeling enforcement inaction now justifies labeling such beverages “milk” by designating a common and usual name. Past inaction is poor precedent to justify present and future inaction.

“Because FDA’s proposed guidance is meaningless without action, enforcement will be necessary to ensure that this limited progress is reflected on grocery shelves. For these reasons, we will continue our work in Congress to pass the DAIRY PRIDE Act, which would direct FDA to enforce its own rules and clarify that dairy terms are for true dairy products, not plant-based imposters.

“FDA’s last three Senate-confirmed commissioners — from both parties — have each acknowledged the problem of consumer confusion over nutritional content created by beverage labels that use dairy terms to imply qualities they simply don’t have. Medical groups, including the American Academy of Pediatrics, concur with this concern. Today’s proposed guidance at least recognizes this reality: That nutritionally inconsistent concoctions of water, factory-processed powders and other additives simply don’t contain the same nutrition that milk provides.

“As the agency entrusted with protecting consumers from mislabeled products, FDA’s action here takes a step in that direction. And after more than four decades of efforts that have often fallen on deaf ears, we appreciate that today’s agency leadership is beginning to treat plant-based beverage labeling more like the critical issue of nutrition and agency integrity that it is.

“We also would like to thank consumers, who sales data show drank fewer fake dairy beverages in 2022 than in 2021, part of a broader awakening to the bogus marketing of fake milk manufacturers that have been accepted uncritically for far too long. Despite the misinformation spun in advertisements and media, consumers are seeing through the marketing and recognizing these beverages for the fakes that they are. But consumers shouldn’t have to make choices in a marketplace that’s less than fully transparent, and until the federal government fully lives up to its mission, NMPF will continue to lead the battle for labeling transparency.”

For more NMPF discussion of the misleading use of dairy terms on plant-based beverages, see:

https://www.nmpf.org/the-plant-based-lie-that-needs-to-die/

https://www.nmpf.org/say-it-loud-say-it-clear-the-plant-based-beverage-bust-is-here/

https://www.nmpf.org/dairy-wins-on-facts-in-looming-lab-based-labeling-battle/

https://www.nmpf.org/plant-based-higher-cost-lower-quality-be-sure-to-tell-your-barista/

https://www.nmpf.org/fdas-proven-it-can-do-its-job-on-fake-milk-it-can-do-it-again/

https://www.nmpf.org/dairy-defined-lactose-free-milk-is-growing-faster-than-plant-based-you-didnt-know-that/

https://www.nmpf.org/dairy-defined-the-over-hyped-shift-to-plant-based-beverages/