USDA to Conduct Referenda on Flawed Reform of Class I Definition
July 2, 2010
USDA to Conduct Referenda on Flawed Reform of Class I Definition
On June 24, the Federal Register published a correction to USDA’s June 14 final decision on the “fluid milk product” definition. This definition determines what products are priced at Class I, and which are required to pay the Class I price to the pool. The decision substantially adopts NMPF’s recommended dairy protein standard for defining fluid milk products, but it also includes a disappointing and unjustified exemption for yogurt drinks and kefir.
Under the old rules, a dairy beverage with less than 6.5% nonfat milk solids was exempt from Class I pricing, even if it contained as much milk protein as regular milk; and whey solids were not counted as dairy solids in defining these products. The original hearing was held five years ago to consider proposals to reform this milk content accounting, including NMPF’s proposal to define milk drinks on the basis of their protein content and to include all dairy proteins in defining a beverage as Class I. Following the June 24 correction of a technical error (caught by NMPF staff), USDA’s decision achieves this reform by including beverages in Class I on the basis of either protein or skim solids content, and by counting all dairy ingredients toward these standards. This result is largely consistent with NMPF’s hearing testimony and comments on the proposed rule.
However, USDA made the unfortunate and puzzling decision to give yogurt drinks and kefir a blanket exemption from Class I. This was proposed by yogurt makers, who claim, in effect, that these drinks are not drinks. NMPF made clear arguments against this at the hearing and in its comments, demonstrating that “yogurt drinks” are clearly “drinks,” have nearly the identical composition and form as many flavored milks, and are clearly sold to be consumed in the same manner as milk. NMPF also pointed out that kefir has no meaningful definition to distinguish it from other (Class I) cultured milk drinks. Nevertheless, USDA’s final decision exempts both yogurt drinks and kefir from Class I. This is both disappointing and inconsistent with decades of practice and principle in the Federal Order system.
USDA intends to complete the referenda for this decision by July 26, although it may take several months to implement, since it will require the establishment of administrative guidelines. NMPF hopes to work with USDA to help ensure that the guidelines for protein accounting are fair and consistent, and looks forward to the next opportunity to address the inequitable yogurt drink and kefir exemption.
Contact Roger Cryan in the NMPF offices if you have any questions. The rule can be found at the links below.
June 14 rule
PDF format: http://edocket.access.gpo.gov/2010/pdf/2010-12771.pdf
Text format: http://edocket.access.gpo.gov/2010/2010-12771.htm
June 24 correction
PDF format: http://edocket.access.gpo.gov/2010/pdf/2010-15296.pdf
Text format: http://edocket.access.gpo.gov/2010/2010-15296.htm
