Author: Rachel Ravencraft
NMPF, USDEC Urge U.S. Government to Preempt Colombian Trade Barriers
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are asking the U.S. government to prepare a plan to “leverage all available tools” should Colombia move forward with imposing countervailing tariffs on U.S. milk-powder exports, making that request in a letter sent Friday to U.S. Trade Representative Katherine Tai and U.S. Agriculture Secretary Tom Vilsack.
NMPF and USDEC also commended a complementary Congressional letter sent Friday to Colombian Ambassador to the United States Luis Gilberto Murillo in response to the investigation. Led by Reps. Jim Costa, D-CA, Adrian Smith, R-NE, Jimmy Panetta, D-CA and Dusty Johnson, R-SD, the letter highlights that the U.S. and Colombian dairy industries should be working collaboratively to promote policies that strengthen the dairy sector instead of launching “damaging protectionist investigations.”
Colombia’s recent decision to initiate an unwarranted Subsidies and Countervailing Measures investigation into U.S. exports of milk powder is a tariff threat without merit, USDEC and NMPF say in the letter, noting that no causal link exists between U.S. milk powder exports and the injury alleged by Colombian officials. The letter also explains that imported milk powder products and domestically produced fluid milk are not interchangeable ingredients in a food manufacturing facility.
“The U.S.-Colombia Free Trade Agreement has been a success story for American and Colombian producers and consumers alike,” said Krysta Harden, president and CEO of USDEC. “Initiating unfounded investigations undermines this progress and is a step backward in our trade relationship. We appreciate the Ag Trade Caucus leaders for recognizing this investigation for what it is – baseless. USDEC commends the U.S. interagency team for their extensive work on the ongoing investigation and will continue to work closely with the U.S. government and Congress as the legal process moves forward.”
“NMPF appreciates Representatives Costa, Smith, Panetta and Johnson for standing up for American dairy producers’ market access rights,” said Gregg Doud, president and CEO of NMPF. “We will continue working with the U.S. government to ensure this unsubstantiated investigation doesn’t set a dangerous precedent.”
Trust is a Dairy Superpower
What makes dairy so valued that milk alone is in 94 percent of U.S. refrigerators? Nutrition is one factor. So is affordability. But perhaps the greatest value is one that data supports: People trust it.
The dairy checkoff’s latest consumer perception tracker, conducted by Kantar Group, shows just how much confidence dairy has from consumers – and it’s a great contrast to the loud braying of the anti-dairy fringe, which takes up more brain space among the sane and grounded than should. Rated on a 1-7 scale of trust, with 1 being none and 7 being total, 58 percent of consumers rated dairy at 5 or above, according to the nationally representative sample of consumers aged 13-65.
That same survey, conducted last November and December, showed 35 percent either strongly or completely trusting dairy, shown by ratings of 6 and 7. That high trust level held across generations. Baby boomers led at 38 percent of strong or complete trust; Generation X, a cohort famed for trusting no one, was lowest at 33 percent. And the future looks stable and bright. About 34 percent of teenagers strongly or completely trusted dairy, with young adults at 35 percent and Millennials at 36. And again, these were the highest ratings of trust – including less-fervent support, clear majorities spanned generations.
Dairy also did well when compared with other foods and industries. Dairy’s 58 percent trust level compares well with beef (53), almonds (51), tech (53, sorry Zuckerberg and Musk) and finance (43 – with apologies to Wall Street).
To sum up: In an increasingly fractured climate plagued by misinformation, dairy continues to attract broad-based support across wide swathes of society. In a superpower nation where trust is declining, dairy has its own superpower – trust from consumers that remains strong.
Pretty heavy stuff, when you think about it. But dairy can carry the load, with unparalleled nutrition, uncommon consumer reach and high levels of consumer trust. It’s a refreshing situation, appropriate for refreshing products.
NMPF, USDEC Expand Strong Partnerships in South America
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) advanced a pair of partnerships in South America this week. The organizations signed a Memorandum of Understanding (MOU) with Abraleite, a prominent Brazilian milk producers association, and renewed an existing MOU with Argentine farmer organization Sociedad Rural Argentina (SRA).
The agreements enhance cooperation between the United States and South American dairy industries, focusing on critical areas such as the economic and social significance of the dairy sector and the removal of trade barriers affecting both producers and consumers.
“Our engagements in South America this week underscored the shared challenges and opportunities facing dairy producers and processors in the United States, Brazil and Argentina,” said Krysta Harden, president and CEO of USDEC. “Partnerships with likeminded organizations have been proven to be crucial as we strive to promote the benefits of dairy on the international stage and tackle attempts to erect trade barriers throughout the Americas.”
The updated MOU with SRA includes the launch of a Sustainability and Trade Taskforce, an initiative to provide a balance to European policies that could unfairly impact producers in the United States and Argentina. Objectives include demonstrating that livestock production is a cornerstone of sustainable food systems and advocating for science-based trade policies.
“Dairy producers throughout the Western Hemisphere confront many of the same issues and priorities,” said Gregg Doud, president and CEO of NMPF. “We look forward to working alongside Abraleite and SRA to advance policies that promote dairy and limit trade barriers.”
The two MOUs follow a partnership signed on June 4 with the Colombian dairy organization Asoleche. The partnership formalized USDEC and NMPF’s prior collaboration with Asoleche, demonstrating the value in focusing on areas of common ground, in contrast to the politically driven countervailing duty investigation into U.S. milk powder exports recently initiated by the Colombian government.
In addition to the Latin American partnerships in Argentina, Brazil, and Colombia, USDEC and NMPF have also established MOUs with the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).
NMPF Statement on USDA’s Recommended FMMO Modernization Plan
From NMPF President & CEO Gregg Doud:
“Based on our initial reading, NMPF is heartened that much of what we proposed after more than two years of policy development, and another year of testimony and explanation, is reflected in USDA’s recommended Federal Milk Marketing Order modernization plan.
“Crafting an effective milk-pricing system for farmers is complex and requires a careful balance. USDA’s plan acknowledges that complexity and, while not matching our proposal in every detail, looks largely in keeping with the comprehensive approach painstakingly determined by the work of dairy farmers and their cooperatives over the past three years. We look forward to examining this proposal topic-by-topic, gathering input regarding the various needs of our members nationwide, and adding their insights as this process moves toward a vote of producers.”
NMPF Awarded USDA Grants to Advance Dairy Industry Disease Preparedness
The National Milk Producers Federation (NMPF) today was awarded funding from the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service National Animal Disease Preparedness and Response Program (NADPRP) supporting two projects advancing dairy cattle disease preparedness.
The first award will expand on USDA funding NMPF received in 2021 to build the National Dairy Farmers Assuring Responsible Management (FARM)Biosecurity Program. FARM Biosecurity provides dairy farmers with the tools to protect the health of their herds and employees from everyday and foreign animal diseases. Biosecurity resources developed from the initial 2021 USDA funding are currently being used to respond to the H5N1 animal health issue. This new funding will expand educational resources and training opportunities for producers, cooperatives, state animal health officials and FARM Program evaluators; update the Secure Milk Supply Plan guidance and further develop the capabilities of the FARM Biosecurity database.
The second award will bring together stakeholders including dairy cooperatives, milk haulers, milk testing labs, state and federal animal health officials and National Animal Health Laboratory Network (NAHLN) lab directors to conduct a gap analysis and create a report outlining current capabilities and guidance for industry and policymakers to implement a foot-and-mouth disease diagnostic assay using bulk tank milk samples to provide herd-level disease surveillance in the event of an outbreak.
“USDA funding for continued enhancement of biosecurity on dairy farms for emerging and foreign animal diseases arrives at a time when the dairy industry is already using USDA-funded resources to address the challenges of H5N1,” Gregg Doud, president and CEO of NMPF, said. “This ongoing collaboration between USDA and NMPF is building resiliency for the U.S. dairy industry now and for the future.”
The grants are funded by the 2018 Farm Bill as part of an overall strategy to help prevent animal pests and diseases from entering the United States and reduce the spread and impact of potential disease incursions through advance planning and preparedness. USDA has funded the NADPRP projects with the goal of individually and collectively addressing critical livestock biosecurity, large-scale depopulation and carcass disposal concerns in all major livestock industries across all U.S. regions. NMPF will apply the grant funding to advance biosecurity and diagnostic testing capabilities to support animal health on dairy farms by partnering with stakeholders and experts, including dairy farmers, veterinarians, dairy cooperatives and processors, NAHLN laboratories, Preventalytics LLC, and state and federal animal health officials.
NMPF Statement on “Higher-of” Inclusion in the House Farm Bill
From NMPF President & CEO Gregg Doud:
“We commend House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, for including language in the House farm bill to restore the previous “higher of” Class I mover formula. The previous mover served dairy farmers well for decades, while the current mover has cost dairy farmers more than $1 billion in Class I skim milk revenue and continuously undermines orderly marketing of milk.
“We also are grateful for the inclusion of language to require mandatory manufacturing plant cost studies to help inform future discussions on make allowances, another critical component of the Federal Milk Marketing Order system. We are excited for the House’s upcoming farm bill markup and thank the members in both parties who have supported each of these priorities.”
U.S. Dairy Backs American Ag Negotiators at WTO Ministerial
The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are backing efforts by U.S. negotiators to advance an agriculture work plan and oppose trade distorting proposals at the World Trade Organization (WTO) ministerial (MC13). NMPF and USDEC representatives are on the ground in Abu Dhabi, supporting and advising U.S. trade negotiators on agricultural priorities during the ongoing negotiations.
As with prior ministerials, there is the concern that a small group of countries will attempt to extract concessions on one issue by withholding support on other broadly supported provisions. While it is evident that most countries do not want the WTO to take a step backward, a select few members are leveraging unrelated issues to advance proposals that would expand agricultural trade distorting measures like public stockholding. USDEC and NMPF strongly support the U.S. government’s leadership in standing firm against any attempts to weaken trade disciplines.
“We should not allow one country to dictate the outcome of the negotiations in agriculture for concessions on other unrelated issues,” said Gregg Doud, president and CEO of NMPF. “We are privileged to have strong negotiators in Abu Dhabi who are defending against attempts to introduce additional trade distorting elements in the WTO. NMPF supports a holistic work plan on agriculture that includes an equal commitment to increasing market access and limiting domestic support.”
“The WTO is an important organization that has served its members well. We need to protect its important function in governing a rules-based trading system while also pursuing needed reforms, particularly to improve the dispute settlement mechanism,” said Krysta Harden, president and CEO of USDEC. “USDEC commends the U.S. negotiating team for their strong stance to defend U.S. interests and we encourage them to stand firm against any tradeoffs between agriculture and other sectors. We are also encouraged that WTO negotiations are highlighting the important role that trade has in addressing sustainability concerns, particularly given the U.S. dairy industry’s leadership in growing sustainable production and feeding the world.”
The WTO provides a rules-based trading system that provides stability and predictability for U.S. dairy exporters. The system includes provisions that reduce trade barriers and a dispute settlement mechanism for holding member countries accountable to their obligations, allowing U.S. dairy products to compete globally on a level playing field. MC13 provides a forum for members to deliberate reforms to the WTO framework.
NMPF Statement on U.S. Rep. Glenn ‘GT’ Thompson
From NMPF President & CEO Jim Mulhern:
ARLINGTON, VA – “Our prayers are with our longtime friend Rep. GT Thompson and his family as they navigate his diagnosis. Rep. Thompson has always been a fighter, and we know he will face this challenge head-on. We are here to support Rep. Thompson through his treatment and know that his strength and spirit will help him through a speedy recovery.”
Dallmann East River Dairy is on the frontline of sustainability
Dallmann East River Dairy sits on the border of Calumet and Manitowoc counties in Brillion, WI. Nick Dallmann, his sister Lindsay Hansen, and their parents Dan and Shirley are all involved on the farm. Nick’s grandparents started the farm in 1964 with 80 acres of land and 15 cows. The Dallmanns now farm about 3,300 acres of cropland and have nearly 5,000 animals on site, milking 2,700 cows every day.
The dairy’s commitment to sustainability has grown over time. “Sustainability is one of those things that you can see coming down the pipeline—you can see certain environmental things, like erosion, starting to happen and you can predict some of the new regulations,” Nick Dallmann said. “We’ve found that just doing our part to be good stewards helps us stay ahead of all that.”
For the rest of the Dallmann’s story and others in our Farmer Focus series, check out NMPF’s Sharing Our Story page.
NMPF Commends Farmers Speaking at House Farm Bill Listening Session
NMPF commended three NMPF cooperative members who spoke up for dairy producers today at a bipartisan House Agriculture Committee farm bill listening session held in Tulare, CA. California dairy producers Brad Bosch, Jared Fernandes and Tony Lopes each discussed farmer needs as lawmakers begin work on a reauthorization of farm programs due later this year.
House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, presided over the session, accompanied by House Speaker Kevin McCarthy, R-CA, and Representatives David Valadao, R-CA, Jim Costa, D-CA, John Duarte, R-CA, Jimmy Panetta, D-CA, Doug LaMalfa, R-CA, Salud Carbajal, D-CA, David Rouzer, R-NC, and John Rose, R-TN. Held in one of the nation’s biggest milk-producing counties, dairy was top-of-mind as farmers and lawmakers discussed critical agricultural policies.
“Just as NMPF appreciates the work dairy producers do every day to nourish our nation and the world, we are grateful to each of our members for taking time out of their day to attend this important session,” said Jim Mulhern, president and CEO of NMPF. “We also thank Chairman Thompson, Speaker McCarthy, Representatives Valadao and Costa, and their colleagues for hosting today’s farm bill listening session.”
NMPF cooperative member farmers touched on critical issues NMPF is hoping the House Agriculture Committee will consider in crafting the 2023 farm bill, including key matters related to the Federal Milk Marketing Order system, the Dairy Margin Coverage program and other risk management tools, and the important sustainability opportunities that farm bill conservation programs provide to dairy producers of all sizes.
Among farmer comments:
Brad Bosch, southern California dairy farmer, California Dairies, Inc. and Dairy Farmers of America member-owner: “The dairy industry is working hard to reach a consensus on the Federal Milk Marketing Order improvements that will be submitted to USDA for consideration in a national federal order hearing. Of most importance is returning to the ‘higher of’ Class I mover. The current formula is blamed for a nearly $1 billion loss over the last few years.
“Discussions in the industry are also focused on potential changes to the make allowance. While make allowance changes will also go through a federal order process, the industry lacks the data to make good decisions on this issue. I hope that the next farm bill will include language giving USDA to authority to conduct mandatory plant cost studies so that we better understand the real cost of dairy manufacturing.”
Jared Fernandes, third-generation dairy farmer, Tipton, CA, Land O’Lakes, Inc. member-owner: “The 2018 Farm Bill made tremendous improvements to the dairy safety net, including through the Dairy Margin Coverage program. These changes provided better coverage levels, lower premiums and more flexibility for dairy farmers. We hope to build off of the improvements to both DMC and dairy insurance programs in the 2023 Farm Bill to continue providing dairy producers with straightforward, easy-to-use risk management tools.
“Next, we need bipartisan collaboration that encourages the adoption of conservation practices at scale. There is significant opportunity for farmers looking to utilize the USDA conservation programs, and the farm bill presents an opportunity to support and streamline these programs to make them easier for farmers to use and we encourage you to consider allowing the private sector, including farmer cooperatives and ag retailers, to extend the conservation delivery system.”
Tony Lopes, fourth-generation dairy farmer, Gustine, CA, CDI and DFA member-owner: “Across the California dairy industry, we largely view the 2018 Farm Bill as a legislative victory. It provided the much-needed safety net programs, the Dairy Margin Coverage as well as Dairy Revenue Protection, that has worked well for us through these unprecedented times through the pandemic and supply chain constraints. However, due to inflationary pressures, constraints related to how much milk volume can be enrolled in these programs as well as regionally different cost structures in calculating the milk-to-feed margin within the DMC, $9.50 is not the same as it was years ago, and it’s different in every region and every shape and size of operator. We just ask to echo Speaker McCarthy’s words with the opportunity to produce dairy on a level playing field with other regions across the country.
“Additionally, when we look at the Dairy Revenue Protection program, we ask that our friends in the dairy industry be afforded the same opportunity as our friends in the livestock sector to protect at 100% price coverage level, similar to that of the Livestock Risk Protection program. And lastly, recognizing the large component of the farm bill that is nutrition assistance. We just ask that you continue to prioritize U.S. dairy and beef production throughout that program.”
