Dairy Urges U.S. to Emphasize Trade in Congressional Hearing

National Milk Producers Federation (NMPF) First Vice Chairman and U.S. Dairy Export Council (USDEC) board member Simon Vander Woude encouraged the U.S. government to prioritize expanded market access opportunities for U.S. dairy exports at a House Subcommittee for Livestock and Foreign Agriculture hearing today focused on trade policies and priorities.

Vander Woude and his wife, Christine, operate a 3,200-head dairy in Merced, CA. He also serves as Chairman of the Board of Directors of California Dairies, Inc. (CDI), the largest dairy farmer-owned cooperative in California and the second largest in the United States. With sixty percent of the cooperative’s milk powder sold to foreign markets, CDI’s 360 family-owned dairy farms strongly rely on U.S. trade policy tools to keep export markets for their products open and growing.

“I think Chairman Costa and Ranking Member Johnson for the opportunity to testify today about U.S. trade policies and priorities impacting the U.S dairy industry. Despite all the growth and success the dairy industry has enjoyed on the export front over the past two decades, we could be doing even better with a level playing field,” said Vander Woude. “While trade is all too often disparaged in this country and its benefits sold short, our competitors are busy forging new agreements. We farmers need a proactive trade policy to keep pace and continue to increase sales to support the good farm and manufacturing jobs our industry creates.”

Vander Woude stressed in his testimony the urgency of expanding access to key dairy markets like the UK, Asia (Japan, Southeast Asia, China) and the Middle East to catch up with dairy competitors whose countries have aggressively sought trade agreements over the past decade. Vander Woude also highlighted other policy priorities significantly impacting U.S. dairy operations, including the current supply chain crisis, securing long-term relief from Chinese retaliatory tariffs, and implementation and enforcement of existing trade agreements, including USMCA.

“As Simon outlined so well to the House Livestock and Foreign Agriculture subcommittee today, exports are essential to the health of dairy farmers and to our wider industry,” said Jim Mulhern, NMPF president and CEO. “New access into markets like Canada and Japan last year was a welcome first step, but still far less than what our farmers need to remain competitive globally. The United States needs to begin moving forward again with trade agreements and other policies that expand foreign market opportunities to help family dairy farms thrive and support the thousands of jobs that depend on dairy across this country.”

“Sound trade policy that opens doors for American-made products takes time to negotiate and the time is ripe for laying that foundation,” said Krysta Harden, USDEC president and CEO. “With the administration and Congress having charted progress on many domestic priorities, now is the time for the U.S. government to take a proactive approach to tearing down both tariff and nontariff trade barriers. We also need forward-looking solutions to the nation’s supply chain issues that are hindering U.S. exports, particularly in markets where America’s farmers are at a disadvantage to our competitors.”

Read full testimony here.

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.”

U.S. Dairy Highlights Supply Chain Challenges at White House Roundtable

National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) Executive Vice President for Policy Jaime Castaneda joined members of the Biden-Harris Administration’s Supply Chain Disruptions Task Force to discuss the challenges facing the export industry regarding current supply chain disruptions.

The virtual roundtable held today featured a handful of groups in the agricultural export industry. NMPF and USDEC are pleased that the supply chain issues adversely affecting U.S. dairy exports are gaining broader attention.

“These issues warrant the focus of the entire federal government in order to address the negative economic effects on both businesses and consumers from these challenges,” said Castaneda. “This discussion was a first positive step which we hope will continue to drive high-level attention to the obstacles affecting U.S. supply chains and exports.”

Since the onset of COVID in early 2020, supply chains have been severely imbalanced, with significant consequences for many American industries. USDEC, NMPF, and other agriculture organizations and companies have been leading the policy push for supply chain improvements to mitigate congestion limiting U.S. exports and in particular ensuring that containers leave U.S. ports full of agricultural products.

During a Nov. 3 U.S. House Agriculture Committee hearing, Mike Durkin, President and CEO of Leprino Foods, noted that “this export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.”

NMPF and USDEC expressed appreciation for the opportunity to share with the White House Supply Chain Disruptions Task Force how the Administration can help address the nation’s supply chain issues, and specifically, focus its attention on the challenges facing the U.S. dairy industry, shippers, and exporters.

The organizations have also urged the administration to convene a meeting with food and agriculture industry CEOs to discuss how the White House and Congress can take immediate action to implement additional measures, such as passing ocean shipping reform legislation, addressing critical transportation industry labor and shipping equipment shortages, and other steps that will help American agriculture producers reach their foreign markets effectively.

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.

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.

NMPF’s Bjerga Discusses CEO’s Corner, Trade Growth

 

NMPF’s Senior Vice President for Communications, Alan Bjerga, discusses NMPF’s “CEO’s Corner” for June, which deals with U.S. dairy’s growing leadership in sustainable dairy exports. The monthly thought-leadership series highlights key dairy issues of the day from an NMPF perspective and is part of the organization’s “Sharing Our Story” initiative that spotlights farmer voices and industry commentary. Bjerga spoke on WEKZ radio, Janesville, Wisconsin.

NMPF’s Mulhern Speaks on Tom Vilsack’s Nomination to Lead USDA

NMPF President and CEO Jim Mulhern talks about Tom Vilsack’s nomination to become USDA Secretary on Brownfield Ag News. “He has a deep understanding of our industry and frankly, I think a deeper understanding of all of U.S. agriculture,” Mulhern says in the broadcast.

Podcast: Sen. Pat Roberts on His Past and Agriculture’s Future

Senate Agriculture Committee Chairman Pat Roberts is leaving Congress after 40 years in January. The only person to lead both the House and Senate agriculture committees takes with him a wealth of wisdom in agriculture policy – but also holds optimism for agriculture’s ability to get things done in an environment of difficult challenges.

“I would just say that I am very confident that the people who will be taking my place, they have a lot of experience,” Roberts said in a Dairy Defined interview released today. “They’re good folks. I think the same attempt, at least, with regards to making it bipartisan, will continue.”

Roberts, who first came to Washington as a congressional staffer a half-century ago, also reflects on the two farm bills he led — 1996’s Freedom to Farm law and the 2018 bill — as well as one area where he wished he could have done more: his leadership of the Senate Intelligence Committee during the Iraq War. He also said he doesn’t consider his career to be over – without revealing plans, he said that when it comes to farm policy, “I intend to have my finger in the pie somewhere.”

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on iHeartRadio, Apple Podcasts, SpotifySoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Dairy Industry Applauds USTR Action to Address Canadian TRQ Violations

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) applaud today’s announcement that the U.S. Trade Representative (USTR) will initiate official consultations with Canada to examine the administration of its dairy Tariff Rate Quota (TRQ) obligations. The two organizations, with strong bipartisan backing from Congress, have long raised the alarm about the need to ensure the United States-Mexico-Canada Agreement (USMCA) is fully enforced, due to Canada’s history of undermining its trade commitments.

“USMCA is designed to improve trade with Canada, while modifying some of Canada’s trade-distorting dairy policies. We knew from day one that enforcement would be key to bringing the intended benefits home to America’s dairy industry. I applaud USTR for hearing our concerns and relying on our guidance to take this critical enforcement step to ensure that the agreement is executed in both letter and spirit,” said Tom Vilsack, president and CEO of USDEC. “This is the critical first step, but more work may be needed to ensure Canada complies with its Class 7 related USMCA commitments as well.”

Even prior to its entry into force, USDEC and NMPF monitored Canada’s actions regarding its USMCA commitments and urged Congress and the administration to make this a priority as soon as USMCA entered into force. Canada has distorted its TRQ administration to limit imports from the U.S. Earlier this year, USDEC and NMPF highlighted for USTR and the U.S. Department of Agriculture (USDA) the inconsistencies between Canada’s dairy TRQ allocations and Canada’s USMCA obligations. In a detailed filing submitted to the administration, NMPF and USDEC provided the agencies with a specific legal review of the Canadian TRQ system and an explanation of the negative impacts resulting from them.

“America’s dairy farmers appreciate USTR’s commitment to the fair and transparent enforcement of USMCA. Enforcement has been one of the top priorities of our industry since the final agreement was announced, and we’ve worked diligently to ensure that it remains one of USTR’s top priorities, as well. Only when Canada is held fully accountable to its trade commitments will America’s dairy farmers be able to realize the full benefit of the provisions that the U.S. government worked so hard to secure,” said Jim Mulhern, president and CEO of NMPF. “We look forward to working closely with the incoming administration as well since enforcement efforts are likely to require sustained focus going forward.”

The concerns raised by USDEC and NMPF have been echoed by a broad bipartisan coalition of members of Congress. In August, 104 Representatives sent a letter to USTR and USDA asking for Canada to be held accountable to its trade promises while a letter in the Senate was signed by 25 Senators. USDEC and NMPF commend the continued engagement of so many members of Congress on this important issue.