Uncategorized

New Year, New Challenges – New Opportunities for Dairy

Posted on by Theresa Sweeney

A new year, a new administration, a new Congress, and new challenges. Regardless of what does or doesn’t happen this year, buckle up. And welcome to 2025.

The watchword of the year is change. Voters demanded it, and members of Congress and the new administration are vowing to deliver. At the same time, what those changes may be, how they occur, and which ones happen when, remain very open questions. Until new leaders in federal agencies are in place, and until congressional coalitions begin to coalesce, where dairy’s priorities fit into the broader picture remains to be seen – and as last month’s column stated, sorting out what’s real and what isn’t, and acting accordingly, is itself a critical area of emphasis in 2025.

But we do know this: We at NMPF are ready to pursue and seize the opportunities for better farm policy that will undoubtedly present themselves over the course of the next year. Here’s why:

  • We’re coming off a great 2024. Our successful efforts at building what became the foundation of a USDA Federal Milk Marketing Order modernization plan that farmers can get behind; our efforts to maintain dairy’s prominence in the federal Dietary Guidelines for Americans as reflected in its recent scientific report; and our leadership in developing export markets through collaboration with the U.S. Dairy Export Council and others, all create the muscle memory and momentum that carries us into this year with credibility and confidence.
  • We have a great team. In each of our key areas of emphasis – government relations and regulatory affairs, economics and trade – we have seasoned, well-connected staff working hard to understand the new policy environment and make it work for dairy farmers and their cooperatives. As Washington transitions, we are making the phone calls and meeting the key players as they emerge, ensuring our interests are on their minds.
  • We speak with a consistent voice. As we saw throughout FMMO, the power of farmer unity is not to be underestimated. By representing the cooperatives that handle the vast majority of U.S. milk, we play key roles in nourishing Americans and the world while boosting rural economies. That’s our voice – and it’s a voice to be reckoned with that’s recognized in policy circles.
  • We are supported by the collective strength of our members and the broader dairy industry. NMPF takes pride in being a leader, but we also know we are far from alone in our efforts. Our colleagues among cooperatives and our friends in the broader dairy and agricultural communities create momentum and quality teamwork as we seek our goals together. It’s like returning a kickoff in football – a team that has the ball, knows its assignments and makes the right blocks can make it a long way downfield. And we do, and we will.

That doesn’t mean we’ll always be on offense. When proposals come up that create problems for dairy farmers and their cooperatives, we will respond effectively on behalf of our members. Within the new Washington are many perspectives, and we will work to support the outcomes that best allow dairy to thrive. We are confident of positive change – we also know that much of it won’t come easily.

But above all, we’re ready. Ready to embark on a new path in an era that has its risks and pitfalls, but that also holds exciting opportunities. Let’s work together, and we’ll make good things happen for dairy.

Gregg Doud

President & CEO, NMPF

 

Dairy Poised for an Action-Packed 2025

Posted on by Alan Bjerga

By Paul Bleiberg, Executive Vice President, Government Affairs, National Milk Producers Federation

2024 was a tumultuous year on the political front, and 2025 promises to be just as eventful on the policy front.

The 2024 election resulted in President-elect Donald Trump winning a second term while Republicans simultaneously won control of the U.S. Senate and held their majority in the U.S. House of Representatives. With a governing trifecta in hand next year, Republicans are poised to put their stamp on many significant issues, several of which have direct implications for dairy farmers.

Picking up where this year left off, a new farm bill remains on the congressional to-do list. Lawmakers enacted a one-year extension before adjourning for the year, paving the way for House Agriculture Committee Chairman GT Thompson of Pennsylvania and incoming Senate Agriculture Committee Chairman John Boozman of Arkansas to lead their respective panels in drafting long-term farm policy legislation next year.

This year’s House and Senate farm bill frameworks included numerous dairy priorities, such as requiring USDA to conduct mandatory manufacturing cost surveys every two years, prioritizing common food name protection in trade discussions, and allowing schools to serve nutrient-dense whole milk. This year’s extension ensures that the Dairy Margin Coverage (DMC) program continues without disruption as the National Milk Producers Federation (NMPF) advocates for a new five-year farm bill next year that meets dairy’s needs.

Republicans will also turn their attention to extending the expiring provisions of the Tax Cuts and Jobs Act of 2017, one of President-elect Trump’s signature first-term accomplishments. NMPF will urge Congress to continue several pieces of the 2017 law, including the Section 199A domestic manufacturing tax deduction that allows agricultural cooperatives to pass the proceeds directly back to their farmer-owners. Congress is likely to complete this process using the tool known as budget reconciliation, which allows for the consideration of certain tax and spending legislation not subject to the Senate’s 60-vote filibuster requirement.

Finally, Congress will need to address an overall government funding deadline in early 2025. This year’s draft House and Senate agriculture funding bills included several NMPF-backed provisions, including House language to reverse the reduction in the maximum monthly milk allotment in USDA’s final foods package rule for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and Senate language mirroring the Innovative FEED Act to allow the Food and Drug Administration to review animal feed additives in a more efficient manner. While a short-term funding extension will require the new Congress to complete the full-year bills, the bills drafted this year will likely serve as the starting point for final negotiations next year.

Beyond these priorities, Congress and the incoming Trump Administration are likely to address major issues ranging from environmental policy to labor to trade. At each step of the way, NMPF will advocate for dairy farmers and the cooperatives they own as they seek to provide the U.S. and the world with wholesome, nutritious, and sustainably-produced milk and dairy products.

lve harmful barriers to trade, and promote the U.S. dairy industry as the global supplier of choice.

This column originally appeared in Hoard’s Dairyman Intel on Dec. 26, 2024.

Vitaliano’s Valedictory: Economist Shares Thoughts on Dairy’s Evolution

Posted on by Theresa Sweeney

After nearly four decades as an economist at NMPF, Dr. Peter Vitaliano is retiring at the end of the year. He predicts a bright future for the industry.

“The U.S. dairy industry produces a huge variety of great products, for which consumption is continuing to grow,” Vitaliano said in a Dairy Defined Podcast. “It has very progressive farms and farmers, and great leadership amongst our organizations, and great organizations. That has been the case when I came, it’s the case now, and it’s going to be the case for many years in the future.”

Vitaliano, NMPF’s longtime chief economist, reflects on the evolution of policy challenges for the dairy industry in the podcast, explaining how shifts in the industry have created greater unity – and a more effective NMPF. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts and Spotify under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

NMPF’s Galen Reviews 2024 Highlights, Latest on Farm Bill Extension

Posted on by Chris Galen

NMPF’s senior vice president Chris Galen outlines for Dairy Radio Now listeners how Congress is wrapping together a farm bill extension with a government funding bill, just a few days before Christmas, and how NMPF will work with Congress on a new farm bill early in 2025.  He also summarizes highlights for dairy farmers from 2024, including strong margins and near-record levels of dairy consumption.

NMPF Statement on Dietary Guidelines for Americans Advisory Committee Scientific Report

Posted on by Theresa Sweeney

From NMPF President & CEO Gregg Doud:

“NMPF thanks the Dietary Guidelines Advisory Committee for recognizing dairy’s important role in a healthy diet and its continued recommendation of three servings of dairy for Americans two years and older.

“Throughout this process, the committee looked carefully at the nutrition dairy products provide. The committee’s scientific review showed that reducing or eliminating dairy from the diet leads to undernourishment in key nutrients for millions of Americans. The review also made clear that expanding the food group to include additional plant-based alternative beverages outside of fortified soy is not supported by scientific evidence. Specifically, the committee noted “the direct substitution of plant-based milk alternatives for cow’s milk within the patterns may introduce unintended consequences for meeting other nutrient recommendations and may vary by product selected.” This is especially important, as the dietary guidelines greatly affect the food options available to children through school meals and other nutrition programs.

“NMPF also thanks the committee for acknowledging that dairy is an equitable option that provides accessible and affordable sources of essential nutrients to everyone, and that lactose-free and lactose-reduced dairy foods can provide those same nutrients for people who may not be able to tolerate regular dairy.

“We are disappointed that the committee only recommends consumption of unflavored milk, especially as they acknowledged that flavored milk contains beneficial nutrients and did not explicitly conclude any connection between flavored milk consumption and obesity risk.

“It is reassuring that the committee came to multiple conclusions supporting dairy that are backed by decades of scientific evidence. We encourage the agencies to look further into recent science supporting the benefits of whole milk in the diet. The committee found evidence that substituting higher-fat dairy with lower-fat dairy showed no association with cardiovascular disease morbidity, and it also found evidence of positive benefits for growth and bone health specifically related to whole milk consumption by young children. We see these conclusions as positive steps. We will continue to advocate for consideration of full-fat dairy in the final dietary guidelines expected to be released next year.”

Driven by Cheese, Dairy Consumption Rises Again

Posted on by Rachel Ravencraft

Propelled by record cheese use and gains in butter, cottage cheese and yogurt, U.S. per capita dairy consumption returned to 1950s levels last year, according to USDA data released just before Thanksgiving.

At 661 pounds per person, the amount of milk Americans consume is back to where it was in 2021, which in turn was on par with the year Buddy Holly died — at least in terms of dairy U.S. dairy consumption.

What’s driving the trend? Think cheese, which has doubled in per capita consumption over the past 50 years even as per capita fluid milk use has declined. Or look at butter, at its highest since the 1960s. And fermented dairy products are having a moment — cottage cheese consumption is at its highest in a decade, and yogurt is also rising.

The only disappointment? Rounding. If you drill more deeply into the numbers, 2023 didn’t quite match 2021, with consumption at 660.7 pounds, compared to 661.2 two years ago. But with positive signs in sales and the holidays ahead, there’s still a chance for Americans to push 2024 to new heights.

We can do this, America. Have your grocery carts at the ready, help a dairy farmer, and enjoy the perfect companion for your holiday cheer.

 

NMPF’s Bleiberg Assesses Agenda for Congressional Lame Duck Session

Posted on by Chris Galen

NMPF’s chief lobbyist Paul Bleiberg explains for listeners of Dairy Radio Now what Congress will focus on during the first few weeks of December in the congressional lame duck session that is following last month’s election.  Members of the House and Senate will have to address government spending for 2025, but are not expected to pass a new farm bill in 2024, instead preferring to extend current policy and work on a new version next year.

 

NMPF’s Bjerga Discusses Rising Dairy Consumption

Posted on by Alan Bjerga

https://www.rfdtv.com/keep-it-flowing-u-s-per-capita-dairy-consumption-returns-to-1950s-levels

NMPF Executive Vice President for Communications & Industry Relations Alan Bjerga discusses new USDA data showing that per-capita dairy consumption among Americans is back to 1950s levels, in an interview with RFD-TV. Robust holiday sales could push consumption to even higher levels. “We can do this, America,” Bjerga said.

NMPF Builds on Strong China Relationship

Posted on by Rachel Ravencraft

NMPF Executive Vice President for Policy Development & Strategy Jaime Castaneda traveled to Shanghai and Beijing the week of Nov. 4 as part of NMPF and the U.S. Dairy Export Council’s ongoing efforts to grow U.S. dairy’s market share in China. 

Joined by USDEC President and CEO Krysta Harden, Castaneda presented at the China International Import Expo and the Global Dairy Conference, highlighting the U.S. dairy’s commitment to being a reliable supplier of high-quality, safe, and sustainable products. 

While in China, Castaneda and Harden delivered a new proposal to lower China’s most favored nation tariffs for cheese to Madam Yu, the Vice President of the China Chamber of Commerce of Foodstuffs and Native Produce. Like U.S. dairy’s successful tariff reduction effort in 2017, the proposal would improve market access for U.S. dairy producers to the top dairy importing country in the world. 

The trip to China is just the latest NMPF and USDEC effort to grow the dairy relationship between the two countries. Castaneda in September spoke at a U.S-China Bilateral Agriculture Industry Roundtable on the opportunities for American ag companies in China. That came on the heels of a USDEC-USDA Foreign Agricultural Service business development mission to Beijing and Shanghai in June, which helped to fortify relationships between U.S. dairy suppliers and Chinese buyers and strengthen ties with Chinese trade associations and government agencies. 

FARM Showcases Sustainability Progress

Posted on by Rachel Ravencraft

The National Dairy Farmers Assuring Responsible Management (FARM) Program highlighted the launch of FARM Environmental Stewardship Version 3 at the Fall Meeting of the Dairy Sustainability Alliance, highlighting progress in dairy sustainability and stewardship.  

Nicole Ayache, NMPF’s chief sustainability officer, took the main stage to talk about the recent kick off and its incorporation of the Ruminant Farm System (RuFaS) model, a whole-farm model that simulates dairy farm production and environmental impact. Vermont dairy farmer Brian McGarry joined Ayache, sharing insights and opportunities for farmers and their cooperatives to evaluate potential technologies and measure progress.  

FARM’s Senior Director of Animal Care, Beverly Hampton Phifer, led animal care evaluators through Version 5 training in Green Bay, WI. Evaluators must be re-certified every updated version cycle and attend a recalibration training annually. This marks the ninth training of the year, with the last training for 2024 taking place last Monday in Fresno, CA.  

October DMC Margin Recedes $0.40/cwt from September Record

Posted on by Rachel Ravencraft

The monthly margin under the Dairy Margin Coverage (DMC) program decreased by $0.40/cwt from September’s record level to $15.17/cwt. The October all-milk price was down $0.30/cwt from September to $25.20/cwt, while the DMC feed cost formula rose again from September, by $0.10/cwt of milk, mostly on a higher price for premium alfalfa hay. 

The end of November dairy and grain futures indicated the DMC margin would average around $11.85/cwt for all of 2024. 

Record DMC margins and relatively high prices come as policy and market developments continue to keep the NMPF/U.S. Dairy Export Council Joint Economics team busy with market analysis and events 

NMPF Senior Director for Economic Research & Analysis Stephen Cain presented a market outlook to the ADPI Risk Management Seminar on Nov. 6 in Chicago and an FMMO and a farm bill update to Texas Farm Bureau virtually on Nov. 7. Will Loux gave an overview of the impact of H5N1 on the market to the Innovation Center Animal Care Committee virtually on Nov. 14.