Author: Theresa Sweeney

U.S. and Mexico Dairy Sectors Recommit to Binational Cooperation

Posted on by Theresa Sweeney

Leading dairy representatives from the United States and Mexico gathered at Dairy Farmers of America headquarters in Kansas City this week to discuss strengthening cross-border cooperation on dairy issues. The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) served as the U.S. hosts and event organizers. Mexico’s delegation at the meeting included representatives from the Confederación Nacional de Organizaciones Ganaderas (CNOG), Asociación Mexicana de Productores de Leche (AMLAC), Gremio de Productores Lecheros de Mexico, Cámara Nacional de Industriales de la Leche (CANILEC), and Consejo Nacional Agropecuario (CNA).

On their fifth annual meeting within the framework of the partnership to strengthen the productive sector for milk in North America, held in Kansas City, the U.S. and Mexican dairy industries hereby agree to:

  1. Preserve, facilitate, and enhance fair trade between the two
  2. Preserve this forum for discussion and analysis of the relevant topics and issues of the milk and dairy producing sectors of Mexico and the United States.
  3. Have as a key objective the expansion of dairy consumption in both countries to the benefit of producers, manufacturers and consumers in the United States and Mexico. Promote joint activities that help increase the consumption of our dairy products within our region.
  4. Identify and promote actions that improve the productivity of dairy farms in Mexico and the United States.
  5. Continuously seek to strengthen the image and reputation of milk and dairy products in both countries to defend against the improper usage of milk and milk product names by other products of non-dairy origin.
  6. Maintain an open communication channel between the milk and dairy producers’ organizations of both countries, with the aim of achieving consensus for the benefit of our Likewise, exchange information and successful experiences through the participation of members of both countries in forums and congresses organized by our associations.
  7. Work on the strengthening of cooperation in the areas of technological exchange and training, both in terms of milk production at the farm level and in food safety and quality improvement of milk and dairy products from the nutritional standpoint.
  1. Work on sharing information on key new areas such as sustainability, animal welfare, farm labor, and other issues as they appear and mutually agree to the benefit of our producers and industry to ensure that we coordinate efforts to defend dairy in international forums and with consumers. Exchange information about the market trends of milk and dairy products in the North American region.
  2. Continue activities in defense of common food names, in particular, cheese names, allowing their free use in our North American market.
  1. Develop a work plan on the topics of the common agenda, with a follow-up scheme with scheduled meetings.

Burkholders Sustain a Dairy for Generations to Come

Posted on by Theresa Sweeney

In farming, success often means creating an operation that can sustain the next generation. And that requires embracing change. That balance of continuity and innovation is what Clint Burkholder and his family have tried to achieve.

“Things change very rapidly on the farm,” said Burkholder, owner of Burk-Lea Farms near Chambersburg, Pennsylvania. “We’re striving to do the best that we can. We care for our animals. We care for the land. We need to treat the animals, treat the environment and everything to the best of our ability, because if we don’t, it won’t be there for the next generation.”

The Burkholder family, a member of Maryland & Virginia Milk Producers Cooperative Association, milks 850 Holsteins, raises roughly 700 heifers and cultivate 1,400 acres of cropland. Animal care and environmental conservation is part of the business plan; they house their cows in free-stall barns with sand bedding and use cover crops and no-till on their cropland to benefit soil and water quality. The farm also has a manure separation system and a water recirculating system to recycle water.

For more of the family’s story and more profiles of innovative dairy farms, visit NMPF’s Sharing Our Story page.

Read the Profile Here

 

NMPF Commends Climate Provisions in Senate’s Inflation Reduction Act

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) commended the inclusion of $20 billion in new funding for USDA conservation programs in the Inflation Reduction Act which passed the Senate today.

The funding, spearheaded by Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, will help dairy farmers advance their proactive sustainability leadership by enhancing farm bill conservation programs with an emphasis on key dairy areas of opportunity, including feed management. The new investments will provide important voluntary technical assistance to dairy farmers who undertake such stewardship practices, including targeted new funding that emphasizes critical farm practices that yield significant environmental benefits for dairy.

“Dairy farmers seize environmental sustainability opportunities whenever possible,” said Jim Mulhern, president and CEO of NMPF. “The funding increases in this package will better position dairy farmers to effectively implement the dairy sector’s Net Zero Initiative and fulfill its 2050 environmental stewardship goals. We are very grateful to Chairwoman Stabenow for her success and leadership in securing this meaningful new conservation investment, which will be a game-changer for dairy.”

Dairy farmers in 2020 committed in their Net Zero Initiative to become greenhouse gas neutral or better by 2050, while also maximizing water quality and optimizing water use around the country.

Key wins for dairy among the climate-smart ag provisions of the Inflation Reduction Act include:

  • $8.45 billion in new funds for the Environmental Quality Incentives Program, which provides important technical assistance to dairy farmers, targeted toward stewardship practices that can reduce greenhouse gas emissions;
  • $25 million annually for Conservation Innovation Trials, with new funding targeted toward initiatives that use feed and diet management to reduce the enteric methane emissions that can comprise roughly one-third of a dairy farm’s greenhouse gas footprint. NMPF is excited for this opportunity to amplify its focus on reducing enteric emissions; and
  • $6.75 billion in new funds for the Regional Conservation Partnership Program, which funds locally developed, targeted partnership projects, emphasizing initiatives that incentivize or target reduced methane emissions.

NMPF and the National Council of Farmer Cooperatives last year led a coalition of 12 agricultural and conservation organizations on a letter advocating for significant new funding for climate-smart agricultural practices while opposing tax policy proposals that could have undermined the transfer of family farms from one generation to the next. NMPF is pleased that those tax policy proposals are not included in this legislation and thanks the many members in both parties who advocated against them.

NMPF also looks forward to continuing to work with both Republicans and Democrats to enact climate and conservation policy into law. Last year, the Senate passed the Growing Climate Solutions Act, authored by Senator Mike Braun, R-IN, and Chairwoman Stabenow by a vote of 92-8. More recently, the House Agriculture Committee adopted the SUSTAINS Act authored by Ranking Member Glenn ‘GT’ Thompson, R-PA, by a voice vote. Last month, NMPF worked with Reps. Jim Baird, R-IN, and Jimmy Panetta, D-CA, to secure new funding for animal feed additive approvals in pending appropriations legislation.

Pat Koch Joins NMPF’s Finance and Administration Team

Posted on by Theresa Sweeney

Pat Koch has joined NMPF as the organization’s finance and administration manager. In this role, she is responsible for vendor management and accounts payable for NMPF, CWT, the American Butter Institute, REAL® Seal program and contract administration for NMPF’s service contracts with Dairy Management Inc. and USDEC. Pat joined NMPF after relocating from Wisconsin, where she was Administrative Project Coordinator for M3 Insurance. Prior to that, she lived and worked in California. Her other business experiences include being the Lead Production Accountant for Pixar (A Bug’s Life), Financial Analyst for Disney and owning her own dog bathing and grooming business, Rub-A-Dub Dog Bath.

July CWT-Assisted Dairy Export Sales Totaled 4.7 Million Pounds

Posted on by Theresa Sweeney

CWT member cooperatives secured 27 contracts in August, adding 3.7 million pounds of American-type cheeses, 110,000 pounds of butter, 44,000 pounds of whole milk powder and 866,000 pounds of cream cheese to CWT-assisted sales in 2022. In milk equivalent, this is equal to 44 million pounds of milk on a milkfat basis. These products will go customers in Asia, Central America, Middle East-North Africa, Oceania and South America, and will be shipped from July through January 2023.

CWT-assisted 2022 dairy product sales contracts year-to-date total 57.2 million pounds of American-type cheese, 459,000 pounds of butter, 6.5 million pounds of cream cheese and 28.6 million pounds of whole milk powder. This brings the total milk equivalent for the year to 797 million pounds on a milkfat basis.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

FARM Evaluators Annual Conference Held in Fort Worth

Posted on by Theresa Sweeney

The National Dairy Farmers Assuring Responsible Management (FARM) Program hosted its annual conference for evaluators July 18-19 in Fort Worth, TX.

The two-day conference brought together nearly 70 FARM evaluators representing dairy cooperatives and processors throughout the country to discuss program updates and emerging research. The conference also offered attendees the opportunity to network with other evaluators and engage with program staff.

During the conference, evaluators heard from experts on a variety of topics relating to the FARM Program’s priority areas, including environmental stewardship, biosecurity, workforce development and animal care speakers. NMPF staff members Emily Yeiser Stepp, Sage Saffran, Miquela Hanselman, Jamie Jonker, Ph.D. and Beverly Hampton Phifer were among the subject matter experts who presented during the conference. Attendees toured the Fort Worth Stockyard and a nearby dairy farm and feedlot during their visit.

EPA Releases Draft NAEMS Dairy Emission Models

Posted on by Theresa Sweeney

EPA released July 14 the preliminary draft report on ammonia, hydrogen sulfide, and particulate matter emission models for dairy operations developed using data gathered during the National Air Emissions Monitoring Study (NAEMS). The report is now available via the NAEMS project site.

The report’s release will be followed by EPA’s draft report on Volatile Organic Compounds (VOC) emission models for dairy farms, set for release later this year. Once the second report is released, EPA will then take time to revise and improve the preliminary draft models for all animal types. Once all the models have been reviewed and revised, EPA will release the entire set of revised draft models for a formal public comment period currently scheduled for mid-year 2023 with finalization by that year’s end. NMPF will be reviewing the current and future drafts to provide comment to EPA.

The NAEMS was established in 2006 by a voluntary Air Compliance Agreement between the EPA and the pork, dairy, egg and broiler industries, to address the lack of scientific data. Funded through a one-time authorization through the national dairy checkoff, dairy farmers provided the financial support for NAEMS so that emissions data could be collected at select sites to first, accurately assess emissions from livestock operations and compile a database for estimation of emission rates, and second, promote a national consensus for emissions-estimation methods and procedures from livestock operations.

NMPF, USDEC Push for Additional Supply Chain Relief Post-OSRA

Posted on by Theresa Sweeney

As the Ocean Shipping Reform Act (OSRA) takes effect and dairy supply chains continue to face turmoil, NMPF and partner organization the U.S. Dairy Export Council are seeking additional policy solutions while fostering cooperation with port authorities and other key supply chain players.

NMPF President and CEO Jim Mulhern and USDEC President and CEO Krysta Harden met July 7 with retired Army General Stephen Lyons, the new Ports and Supply Chain Envoy for the Biden Administration, to ensure the needs of U.S. dairy farmers remain a priority as OSRA, supply chain-relief legislation passed into law in June, is implemented and additional remedies are pursued, pressing him on a range of critical matters to ensure continued administration support solving supply chain issues.

NMPF also joined a coalition of 157 trade associations in urging the White House to provide support to parties locked in negotiations over a dock worker strike at West Coast ports. At issue is the expired contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.  A work stoppage, lockout or slowdown would come at a disastrous time for ag exporters.

NMPF also engaged the U.S. President and CEO of Mediterranean Shipping Company (MSC) Fabio Santucci on a wide-ranging call on July 12 to discuss the export crisis from the perspective of shippers. The meeting was part of a broader effort to identify opportunities to improve relations with carrier lines, which also included a meeting with Orient Overseas Container Line (OOCL) on July 8. In both meetings, NMPF focused on the challenges members face in container availability, cancellations, delays and fees and emphasized the negative impact these challenges had on relationships with import markets.

On the legislative front, NMPF provided input into and endorsed the American Port Privileges Act, legislation proposed  June 28 that would require U.S. ports to give priority to ships carrying U.S. exports. The legislation, introduced by Reps. John Garamendi (D-CA) and Jim Costa (D-CA), builds on OSRA and offers preferential berthing access by moving vessels that load 51% or more by volume or weight of American exports to the front of the loading queue. It also incentivizes ocean carriers to make second-leg voyages to ports like the Port of Oakland, the largest U.S. port for dairy exports.

All this comes as supply chain challenges continue to cascade across shippers and port facilities. As of late July, the Port of Oakland was closed due to protests over a new California trucking law. Meanwhile, even though several of OSRA’s helpful provisions have taken effect — including robust detention and demurrage payment guidelines – following them has not been instant, with the Federal Maritime Commission reminding shipping carriers on July 22 that compliance is necessary.

In that environment, NMPF and USDEC continue to pursue additional ways to advance policy and shipping-sector solutions.

Milk Price and DMC Margin Outlooks Pull Back from Recent Records

Posted on by Theresa Sweeney

The average milk price in the United States dropped by $0.40/cwt in June from May’s all-time record level to $26.90/cwt. The Dairy Margin Coverage margin also fell by $0. 59/cwt from May to June, driven by a June feed cost that rose $0.19/cwt from the month before.

The milk price outlook for the remainder of 2022 has weakened in recent weeks, as dairy product price inflation has taken a toll on both retail and food service consumption. Since June 1, the futures-based average milk price forecast for the months of June through December has dropped by more than $2/cwt. Despite this, the futures do not currently indicate the DMC margins will drop below $11/cwt anytime during the remaining months of 2022. The DMC Decision Tool on the USDA/FSA website, on the other hand, is currently showing a much lower price forecast and a higher feed cost outlook, with margins falling slightly below $9.50/cwt during most of the months of July through November.

NMPF Shapes Policy Response to Infant Formula Shortage

Posted on by Theresa Sweeney

As the country has grappled with severe infant formula shortages brought on by a rare and temporary manufacturing issue, NMPF has worked to encourage a targeted and multi-faceted government response to increase domestic and imported formula supplies in the short-term while outlining the critical need for deeper policy reform to stimulate larger, more diversified U.S. formula production in the future.

NMPF staff in a July 14 meeting with Deputy Director of the White House National Economic Council Sameera Fazili underscored that the long-term solution to the crisis is boosting domestic production. Examining current policy and determining necessary changes to regulation around domestic processing to achieve that goal would best provide the type of production cushion the U.S. needs to ensure a formula availability crisis does not occur again in the future.

To complement its work with the White House and other agencies such as USDA and the U.S. Trade Representative, NMPF is continuing to advise the FDA leadership on weekly calls. The FDA has been providing certain infant formula importers “enforcement discretion,” which has had the effect of waiving certain FDA rules and regulations to enable short-term market access. NMPF has emphasized that these enforcement discretion efforts should only continue until the domestic market balance is restored.

NMPF staff also worked with Congress on the carefully tailored, time-limited Formula Act, H.R. 8351, which was signed into law July 21 after quick House and Senate passage. The law waives U.S. tariffs on certain infant formula imports until Dec. 31 to ensure that the domestic market has the necessary supplies to meet the needs of infants. NMPF insisted the legislation be short-term in light of the short-term nature of formula supply shortages and avoid granting tariff benefits for formula inputs that would simply displace U.S. dairy ingredients rather than work to bridge the remaining formula availability gap.