Thompson, Peterson introduce Whole Milk for Healthy Kids Act of 2019

schoolmilkiStock-510657195web.jpgBipartisan bill would allow whole milk as option in school cafeterias

WASHINGTON – Making good on a promise to introduce legislation to bring whole milk back to schools, U.S. Representative Glenn ‘GT’ Thompson (R-PA) has joined forces with House Agriculture Committee Chairman Collin Peterson (D-MN) to introduce a bipartisan bill to allow for unflavored and flavored whole milk to be offered in school cafeterias.

H.R. 832, the Whole Milk for Healthy Kids Act of 2019 recognizes the importance of milk to the health and well-being of growing children.

Last year, the U.S. Department of Agriculture Secretary Sonny Perdue directed USDA to allow schools to serve 1% low-fat flavored milk in school meal programs that had been restricted previously to fat-free flavored milk.

H.R. 832 would take this further to allow whole milk to be included as well.

 

“Milk is the No. 1 source of nine essential nutrients in the diets of our students, but if they don’t drink it these health benefits are lost,” Rep. Thompson said in a press release Wednesday (Jan. 30). “Milk consumption has been declining in schools throughout the nation because kids are not consuming the varieties of milk being made available to them. It is my hope that the Whole Milk for Healthy Kids Act will bring a wider range of milk options to American lunchrooms so students can choose the kind they love best.”

“I’m proud to join Congressman Thompson in this effort that will provide more choices for nutritious and healthy milk to kids in schools, and a valuable market for dairy farmers in Minnesota, Pennsylvania and nationwide at a time when they’re continuing to face extremely difficult market conditions,” Chairman Peterson said in a statement.

Rep. Peterson is Chairman of the House Ag Committee and Rep. Thompson is a member of the House Ag Committee.

Thompson is also a member of the House Committee on Education and Workforce to which the bill was referred after its introduction on Jan. 29.

The nine original co-sponsors of the bill include Agriculture Committee Republican Leader Mike Conaway (R-TX) and three members of the Committee on Education and Workforce to which the bill was referred — Rep. Lloyd Smucker (R-PA), Rep. Dan Meuser (R-PA) and Rep. Elise Stefanik (R-NY).

Additional co-sponsors are Rep. Chris Collins (R-NY), Rep. Rodney Davis (R-IL), Rep. John Joyce (R-PA), and Rep. Mike Kelly(R-PA).

In a press release late last week, Thompson gave some background on this bill. He noted that in 2010, Congress passed the Healthy, Hunger-Free Kids Act which amended nutrition standards in the School Lunch Program.  Among the changes, the law mandated that flavored milk must be fat-free within the program.

This 2010 law, along with lower participation in the program, led to an alarming decline in milk consumption in schools since 2010. Declining milk consumption in schools not only impacts students, but also dairy farm families and rural communities across the nation.

Two years ago, to help encourage nutritious options in the School Lunch Program and increase consumption, Rep. Thompson introduced legislation – H.R. 4101, the School Milk Nutrition Act of 2017 – which provided schools the option to serve 1% low-fat flavored milk varieties.

In May of 2017, the USDA announced a rule that allowed schools to receive waivers for low-fat (1%) flavored milk, rather than only fat-free, which is the essence of H.R. 4101.

On January 29, 2019, Rep. Thompson introduced this bipartisan bill — H.R. 832, the Whole Milk for Healthy Kids Act of 2019. This legislation builds on the previous bill and USDA’s rule by allowing whole milk (both unflavored and flavored) to be offered within the School Lunch Program.

Producers and consumers are urged to contact their representatives to support this bill. Key members of Congress to reach out to on the Committee on Education and Workforce, which will be the committee to consider the bill, include Rep. Joe Courtney (D-CT), Chairman Bobby Scott (D-VA), Rep. Marsha Fudge (D-OH). View all Congressmen and women serving on this committee here

Follow the progress of H.R. 832, the Whole Milk for Healthy Kids Act of 2019 here.

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Is this milk antibiotic-free? You bet!

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These Jersey cows are calmly chewing their cud while being milked in the parlor. Their milk will be tested before it is loaded on the truck and again at the processing plant because all milk – no matter what is on the label – is antibiotic-free. Any milk found to contain antibiotics is discarded. Protocols and penalties are in place from farm to consumer.

By Sherry Bunting

Author’s note: This 2014 column in the Hudson Valley Register Star brought in more email than any other column. I was amazed how many people shared it when it ran and how many reached out to say they did not know this! 

Organic. Natural. Antibiotic-Free. Are you confused by food labeling? Do you question what milk to bring home for your family? How is milk tested and regulated before it reaches the dairy case at my supermarket?

It’s important to break down these labels to understand what they mean — or don’t mean — in terms of the safe, healthful and nutritious qualities of milk and dairy products.

Let’s talk specifically about antibiotic-free milk. The good news is that all milk is indeed free of antibiotics! And all dairy milk is among the safest, most nutritious food and/or beverage on the planet, no matter what special label it does or doesn’t carry. In fact, milk, butter, natural cheeses and many other dairy products are among the cleanest labeled foods and beverages you can find. Unlike the fake stuff, milk is minimally processed, if at all, and no long list of ingredients. Dairy milk is just milk, straight from nature to your fridge. No mystery vats full of additives. Just a bunch of hard-working dedicated people loving what they do — taking care of cows making nutritious delicious natural milk!

Not only does milk contain protein (8 grams per 8 oz glass!), calcium and 9 essential vitamins and minerals, all dairy milk — no matter whether it is organic, conventional, labeled “antibiotic-free” or not — is heavily tested and truly antibiotic-free!

I often hear from consumers who believe organic-labeled milk is their only antibiotic-free choice. Let’s examine this.

“So many people think there are antibiotics in milk not labeled organic. We are pleased to report that we dispelled that myth at the Just Food conference in New York City,” reported Deb Windecker. She and her husband and their two children milk 100 cows near Utica in Herkimer County. She again recounted the steps that ensure all milk is antibiotic-free during an interview with staff writers for Farm Aid ahead of the concert at Saratoga Springs in September 2013. Today, the Windeckers are a certified organic dairy farm, which means they are not permitted to use antibiotics as treatments, but this is not to be confused with antibiotics in milk, because all milk, no matter the label, is tested multiple times to ensure it is free of antibiotic residues. The same goes for meat.

Farm Aid’s emphasis in recent years has gravitated toward organic as the symbol of family farms producing wholesome products, but the truth is that farm families operate farms of all sizes, organic and conventional. In fact, the most recent Ag Census shows that 98 percent of all farms in the U.S. are family owned. Furthermore, as unique as farms are in their management practices, there are certain things all dairies have in common — shipping antibiotic-free milk is one of them!

It’s important to know how highly-tested all dairy milk is at multiple intervals from the farm to the consumer, and how penalties and protocols are in place on the farm, at the processing plant and with regulators.

“These steps insure the milk you drink and the dairy products you eat are totally antibiotic-free,” Windecker explains.

On the farm, dairy producers sometimes use antibiotics when a cow or calf is sick — just like a mother would treat a sick child instead of watching that child suffer. On an organic farm, the producer may treat that animal also, but then the animal must be sold to a conventional farm because even after the treatment clears the animal’s body, she cannot be milked on the organic farm after she recovers. The owner must sell her to a non-organic farm even though all of her treatment is gone and no residues are left in milk, meat or even the filtering organs of the body!

So, what happens when cows are treated on a nonorganic, conventional farm? The treatment is recorded, and the cow’s milk is kept out of the milk tank not only during treatment, but for the prescribed time after treatment that it takes for the medication to totally clear the blood system.

Medications have “withdrawal” instructions on the label or per the veterinarian’s prescription, and farmers often do a quick-test or send samples with the milk hauler to be checked at the plant to be sure they’ve waited long enough BEFORE putting that cow’s milk in the tank.

Residue avoidance is of huge importance to dairy producers because they care about the quality of the milk they produce for consumers, and because if that milk were to be shipped, the sample tested would show the residue and the whole tank — or truckload — of milk would have to be dumped. In that case, the farmer would not be paid for his milk, and he would be liable for the value of other milk on that truck, because it would also be dumped.

When I worked on the dairy farm, we avoided treating cows unless absolutely necessary because withholding their milk during and after treatment is something farmers stay conscious of. This is why dairy farmers pay attention to details and take time to observe their cattle to adopt preventive protocols that help to avoid illness in the first place. Farmers certainly can’t afford to spend money on unnecessary medications or to lose a whole tank of milk, and the penalties that go with it, by accidentally milking a treated cow into the tank.

Good record keeping, identification methods, and employee communication are important at the farm level. But, rest assured, if mistakes happen, they are caught when the farm sample is tested at the milk processing plant.

After filling the tanker-truck, the milk hauler provides the processing plant with the test samples he has collected from each farm’s milk tank. Those samples are taken before the milk is loaded on the truck. Those samples are tested at the plant, and fresh samples are also taken of milk in the truck at the plant and again from storage units before processing. Packaged milk is also randomly tested in commerce to ensure further accountability.

Milk testing in the dairy industry is precise and covers a range of trace substances in addition to antibiotic residue and bacteria levels. Each testing interval from farm to store ensures milk’s safety, quality and goodness. Feel free to enjoy with confidence, and without fear.

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Sherry Bunting is a veteran journalist writing on agriculture and food topics for 35 years.

FARMSHINE Editor: ‘You should know what’s going on behind your back.’

16998665_1877802419128042_6866585577837346794_nBy DIETER KRIEG

This editorial by Farmshine editor and publisher Dieter Krieg, appeared in the January 4, 2019 edition of Farmshine and is republished here with permission.

The fact that most of you have never heard of GENYOUth is reason to suspect that its goals are dubious and very likely not in your interest. The non-profit was founded in 2010 by the National Dairy Council (NDC) and the National Football League (NFL). So, in the nine years since GENYOUth came to be, have you heard of it?

We discovered it in late 2017 … and not in a good way. On the contrary, we were appalled! All the more so because we had never heard of it. And surely the “dairy folks” at NDC, and its sister organizations, including ADA, UDIA, NDB and DMI would have had contact information for Farmshine. Indeed they did and do, regularly sending us “silly” stuff which is almost an insult to dairy farmers. Need an example? Turn to page 22, and see what DMI considers worthy of good news for you dairy producers.

In 2016, GENYOUth held its first “gala”… meaning they held their first very fancy gathering at one of the fanciest places this side of Paris. Internally, they patted themselves on their collective backs, but outside of their boardrooms and ballrooms, not a word. Were they — and are they — trying to keep their agenda out of your sight? Or, were you at the Waldorf-Astoria Hotel in December, 2016, for the inaugural high-class gathering of GENYOUth.

Don’t feel bad if you weren’t invited. Only a very select few dairy farmers (like maybe just one) gets to attend.

We suspect that dairy farmers are kept away and in the dark about it all because if they knew the truth … if they saw and heard what’s going on … there’d be a revolt. And that’s exactly what we need!

It wasn’t until December of 2017 that we were tipped off about the GENYOUth gala that had been held that month.

Once again, it was held in New York City, this time aboard the aircraft carrier, Intrepid — about as exotic a venue as you can find in the Big Apple. We’re sure it was nice, as well as shameful. We looked into it and concluded in short order that GENYOUth does not have the interests of America’s dairy farmers in mind. Not in the least. Not at all.

If our exposure of the 2017 GENYOUth gala accomplished anything at all, it’s this: We actually received a news release of the event this past year (2018). In typical DMI-NDC-ADAUDIA-NDB-USDEC fashion, the news release is full of praise for itself. It appears completely unedited on page 18, if you’d like to read it.

By the way, not mentioned in the GENYOUth report is where and when it was held. For the record, it took place on November 27th at the Ziegfeld Ballroom on 54th Street in
Manhattan. It bills itself as “New York City’s premier special events venue.” There’s really nothing wrong with that in itself.

What’s disturbing is that these galas feature some very heavy hitters with very deep pockets and they’re all united to promote, push and publicize skim and low-fat milk.

Their absolute mission is to change the culture of milk consumption. Down with whole milk; raise a glass of skim instead.

If you’re okay with that, then fine. If not, then it’s time for you to raise your voice.

Again, if you haven’t already read the GENYOUth article on page 18, please take the time to do so. You should know what’s going on behind your back. And don’t be surprised if you come away feeling like you’ve been stabbed in the back.

Shame on DMI, NDC, ADA, UDIA, NDB, USDEC for betraying the mission dairy farmers entrusted you with!

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Homemade ads about milk reveal and surprise community

By Sherry Bunting, published in Farmshine, Friday, January 4, 2019

“Everything helps… Anything helps,” said Nelson Troutman. The Pennsylvania dairy farmer gave consumers in his area an early Christmas gift, and this gift of knowledge keeps giving in the New Year.

Frustrated by the forced emphasis on low- and non-fat milk promotion and seeing the need to draw attention to the simple healthy truth about milk, while planting the seed that consumers can ask for local milk, Troutman came up with his own promotion idea.

On December 11, he painted a wrapped round bale with the words “Drink LOCAL Whole MILK 97% FAT FREE!”

Then he placed the round bale in his pasture, where it is visible at the intersection of Wintersville and Stouchsburg Road near Richland, in the Lebanon/Berks area of Pennsylvania.

After all, whole milk is standardized to 3.25% fat content, making it virtually 97% fat-free — a point on the minds of consumers that milk labels and checkoff promotion have not been able to tap into.

“It was the cheapest and easiest thing to do, and I’ve gotten a lot of very nice and interesting comments,” said Troutman in an interview with Farmshine. “Today, I saw two ladies walking down the street. They had just passed the bale. I had no idea who they were. They saw me coming out the farm lane and waved. I am sure they were talking about the bale.”

Nearly three weeks after his round bale billboard was placed for the community and those passing through to see, Troutman said the gift keeps giving with new and continuing conversations.

“I am amazed at talking to people about this educational bale,” Troutman said Monday (Dec. 31). “People say to me that they did not know any milk is 97% fat-free, much less that the whole milk is 97% fat-free!”

Troutman uses their surprise at this revelation as a teachable moment.

“I explain that fat-free milk is 100% fat-free, 1% milk is 99% fat-free, 2% milk is 98% fat-free and whole milk — at 3.25% fat — is basically 97% fat-free. They are astounded,” he affirms. “So, I ask them what they thought any milk is, and they tell me that they never thought about it. When I ask them what they think the fat percentage of whole milk is, most answers were 10% to 20% fat. I actually had one man say he thinks whole milk is 50% fat! His wife made him drink 2% milk for that reason.”

So what is being gained with this message? Troutman gives an example. He said the man who confessed that he thought whole milk was 50% fat — upon hearing the truth — said he will never again drink 2% milk and has switched to whole milk while also being made aware of the local ties and how to find local brands.

What does all the milk confusion tell us about the success — or failure — of mandatory checkoff promotions? People are confused about so many things where milk is concerned. But the fat content should not continue to be one of their confusions. It is standardized and easy to demystify with a simple message, a simple sign, that opens the door to conversations that matter.

Troutman said he knows that the dairy farmers’ mandatory checkoff promotion organizations of American Dairy Association Northeast (ADANE) and Dairy Management Inc (DMI) — and even Allied Milk Producers — cannot advertise milk as 97% fat-free. He says there are government rules about putting this on the label or in a checkoff-funded campaign.

But, he believes it is high time for a grassroots promotion.

“We farmers can do this! It’s real education, and it sure beats the price of the milk mustache. Advertising is expensive, but we farmers have an edge. We live along roads and highways where we can put up signs, use our bales, silage bags, silos, barns, and wagons,” says Troutman.

“We also have friends that have agribusinesses in town that could use a sign. And there is Facebook, which is very powerful to the consume. We need the consumers in Pennsylvania to ask for whole Pennsylvania-produced milk at our restaurants, schools and stores,” he adds.

Troutman is definitely on to something, as people across the state and in other regions as well have complained all year on social media and at meetings and with photos of supermarket dairy shelves that whole milk is often not stocked to the density of the fat-free, low-fat and reduced fat milks.

In fact, as one producer in northern Pennsylvania noted recently, she has to order whole milk on ahead at her local store if she wants more than three gallons for an event. When asking the store manager why whole milk is not made more available in the dairy case, the store owner told her the reason is because it isn’t as healthy and contains too much fat!

Nelson Troutman’s simple idea is borne of frustration but with education and truth at its core, and it is easy to implement.

He says that dairy farmers are fed up with decades of their product being thrown under the bus by dietary guidelines and promotion restrictions leading people to believe — over time — that whole milk is full of fat. The labels do not even say 3.25% fat! And this has led to people having all kinds of inflated ideas about how much fat is in whole milk to begin with.

It is no wonder that even well-educated pediatricians mindlessly follow blindly the lies of omission — telling mothers to put their children on lower fat milks at age two because they falsely believe whole milk is more than 10% fat!

Troutman made his round bale sign and placed it in his pasture by a busy intersection to educate his community and to encourage other farmers and agribusinesses to use his idea to educate their communities.

“Maybe they want to do something on a bale or a wagon or a silage bag,” he said. “Everything helps… anything helps.”

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Eastern dairy industry has value-add soul-searching to do

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Talking candidly about dairy markets and trade were market experts (l-r) Tom Wegner, Land O’Lakes economist; Tom Roosevelt, founder and owner of West Chester-based Roosevelt Dairy Trade, Inc; and Matt Gould, owner of Philadelphia-based Dairy & Foods Market Analyst, LLC. Photos by Sherry Bunting

By Sherry Bunting, published previously in Farmshine, November 30, 2018

BAINBRIDGE, Pa. – “There is a long list of demands coming from consumers with unprecedented opportunities for milk,” said Matt Gould, owner of Dairy & Food Market Analyst LLC, based in Philadelphia. “Consumer demands are the key, and they are willing to pay for them.”

That was the good news. Gould said that Pennsylvania has an image to capitalize on, and part of that image is family farms working close to the land and animals — the iconic Lancaster County Amish-made image — for example.

But by the end of the forum, it was clear that how the state of Pennsylvania — and the eastern states in general — can tap into value-added dairy opportunities will require both individual and collective soul-searching.

The not-so-good news was the main substance of three hours with three dairy market experts at the annual Professional Dairy Managers of Pennsylvania (PDMP) Fall Issues Forum on November 14 at the Bainbridge Fire Hall in Lancaster County.

Each expert, in their own way, painted a changing and sobering portrait of the dairy market landscape. Producers in Pennsylvania, and the eastern U.S. in general, are not located where commodity processing growth is occurring to serve rapid growth for export and foodservice markets, but instead, exist in a market where declining fluid milk consumption is dictating the terms and leaving mainly the option of slow growth consumer niche markets that take time to develop and must be “continually fed.”

The experts noted that even though the Northeast is down to 30% Class I utilization, 87% of fluid milk sales is water that is expensive to ship, so, in a sense, the albatross around the neck of eastern dairy farmers is the fluid milk market needing farms nearby consumers, but at the same time declines in fluid milk sales are pressuring those farms.

In fact, the experts characterized the East as mainly a fluid and specialty market for dairy. Not the news many wanted to hear since a recent Pennsylvania Dairy Study suggested the Keystone State is a good location for a new cheese plant, and the Port of Philadelphia was tagged in the study as a vehicle to potentially capitalize on export growth markets.

Tom Roosevelt, founder of Roosevelt Dairy Trade, Inc., West Chester, said that commodity processing expansion is mainly associated with export growth and that is all being centered on the West and Midwest.

“A new cheese plant is not my first thought for Pennsylvania,” he said bluntly.

In fact, all three panelists agreed that the Keystone State’s hope is in building niche markets, and they offered these strategies: 1) branding the state’s image, 2) improving milk components, 3) marketing to consumers who have an emotional connection to where their food comes from and how it is produced, and 4) altering production practices — such as Organic, non-GMO and animal welfare labeling — to meet those niche demands.

They also preached the need for greater efficiency and market discipline, that producers here will increasingly see base/excess programs and will need to be using risk management tools and futures markets to get a ‘flat’ price because a ‘flat’ price is where the industry is headed in the midst of volatile global trade factors.

All three experts indicated that the deepening national and global dairy crisis won’t get better any time soon, and that Pennsylvania has some additional long-term challenges if it wants to retain and grow dairy.

Billed as a session to take dairy markets and trade ‘beyond the spin,’ the forum discussion was brutally honest. While disheartening, the information about what is happening here in the context of what is happening elsewhere is important for constructive ongoing discussions in Pennsylvania and other eastern states about the future of their dairy farms that are key to agriculture infrastructure and state and local economies.

When asked about the potential to change how milk is priced, Roosevelt said that there is no question the CME is thinly traded, but that electronic trading has brought in more activity. He said the USDA National Dairy Product Sales Report that provides the product prices for milk pricing formulas, is outdated.

He and Gould agreed that substantial changes to Federal Order milk pricing are not likely to happen because the investments of large companies (think Walmart, Leprino, etc.) rely on a “stable regulatory environment to protect their investments.”

Adding value

Gould challenged Pennsylvania’s dairy industry to instead focus on “value-added” processing and marketing instead of focusing on making more milk.

Tom Wegner, economist with Land O’Lakes said that, “Three years of tough markets would seem to be due for a price peak, but I don’t want to give any notion that it will get better soon. That is the impact of long milk. We are long on milk, and that will probably continue for a while.

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Tom Wegner, economist with Land O’Lakes, shows global milk production patterns during the PDMP forum on dairy markets.

“Your production of components here is more important to enhance milk checks than anything else,” Wegner said.

Roosevelt was particularly candid: “It’s tough to look at this part of the country and think you’ll have dairy exports. The real benefit you have here is in value-added.”

He gave the example of conventional nonfat dry milk selling for 85 cents a pound when organic powder is over $4.00/lb. (The flip-side of this proposition is the very high feed costs and other costs for organic production in which consolidation is also happening, so those producers also are having tough times.)

“It is hard for you to compete on a commodity level,” said Roosevelt from his experience trading dairy commodities at a ratio of 60% domestic use, including animal and pet feed makers, and 40% exports, noting the export trade really began in the past eight years.

“We do a lot of business with Land O’Lakes and Maryland-Virginia,” he said, “but we don’t move hardly anything into export markets out of the Northeast. The fluid market dictates things here in the East compared with the West and Midwest, where cheese is king.”

Roosevelt said the Midwest, Southwest and West are where dairy plants are doing line extensions, and new plants are being planned and breaking ground.

Global volatility

“These companies and cooperatives are going after the commodity big-volume markets to China and Mexico,” said Roosevelt. “If tariffs take those markets out, then it will affect you here because that milk moves down the line. When those markets move product out of the U.S., that means less competition for you here.”

The export markets are deemed the growth markets, said the experts, because domestic demand is declining in some sectors and offers only slow-growth opportunities in other sectors.

With the growth-focused U.S. dairy industry fueled mainly by exports, the volatility of the global market has forced more of the industry to use the CME futures markets to get the ‘flat price’ they want in their quarterly contracts, according to Roosevelt.

“As traders, we trade off the market price and use the futures to convert that to a flat price,” he said. “I would urge you to look at the futures to get a flat price. It’s a tool that will be increasingly important to all of you because, whether we like it or not, we are in a global market and futures are a way to reduce that volatility.”

Roosevelt’s bottom line was for producers to be as efficient as they can and look for the market that “gives you the value, whether it’s artisan or organic.”

Wegner echoed the advice on being efficient. He said the largest farms have the advantage of stretching their economies of scale and taking a longer view in this long period of long milk.

He gave a history of Land O’Lakes with its butter production dating back to 1921 and the eventual merger with Midatlantic here in the East.

“We aggregate demand also,” he said, a nod to Land O’Lakes’ Purina. “We want more of our members to buy more of our products, not just sell us milk.”

Explaining Land O’Lakes’ market-back philosophy, Wegner said the cooperative has put tools together that include traceability and are trying to put production discipline tools into that mix.

“We come to our customers with a farm-to-fork approach and send that back through milk production for an end-to-end view,” said Wegner. “Being farmer-owned is a great part of our background as we continue to grow markets.”

While Pennsylvania’s average herd size is 90 cows, most of the producers attending the forum represented farms with 300 to 1200 cows. Some of the questions lingering in their minds were: How many niches does a dairy market have? And what will it take to develop those in-roads to cover more milk and spread those opportunities beyond the small farm-store label at the end of the drive?

While niche-marketing connects producers and their location and practices with consumers who develop that emotional tie, Roosevelt said the dairy commodity supply-chain has been developing its own sets of practices and programs.

Supply-chain realities

“Traceability is a huge part of our business, and it is as important on the feed side as the food side working with customers like Cargill and ADM,” he explained, noting the huge increase in paperwork following every product delivery. Not only are there certified analyses, date processed, how processed and lot numbers, but in the case of whey, the buyer wants to know what type of cheese process produced the whey because each one has its own profile. He gave the example of whey from Swiss cheese being whiter and higher in protein.

He noted they are getting questions about organic and non-GMO whey, which will produce even more paperwork, and that the traceability aspect is moving back the supply chain to the farm level.

Wegner also talked about traceability. While he didn’t mention it specifically, both Land O’Lakes and DFA are trialing block-chain technology to follow product digitally through the supply chain. Walmart is driving full traceability and moving toward block-chain technology.

“Walmart is one of our biggest customers for butter,” said Wegner. “Just think of the traceability challenges of mixed loads with hundreds of producers.”

The National Milk Producers Federation FARM program was described as a way of consolidating groups of producers into blocks that are being evaluated to use approved practices.

“Members want to know ‘what’s in it for me?’’ said Wegner, “but the reality is that the FARM program contains a lot of the things we have to do to be part of the market.”

Not only are domestic commodity dairy sales being driven by large fast food chains that want to be sure a farm-level animal welfare issue, for example, doesn’t damage their name, the export markets have this concern as well where brands are involved.

Wegner noted that Pizza Hut is launching a new restaurant every 18 hours, globally, and the Yum brand, which includes Pizza Hut and Taco Bell, are opening new restaurants every 8 hours across the globe. He said that 80% of the menu items at these restaurants include dairy. They secure cheese from the U.S. and are concerned about capacity and traceability over the next three years.

For example, Leprino has 80% of the market share for U.S.-produced mozzarella, said Wegner, and their growth is more concentrated in states like Michigan, Colorado, New Mexico and California.

Trickle-down effect

With the commodity production for export and large chain foodservice sectors growing — and served mainly by the Midwest and West — Roosevelt maintained that this export growth is still very important to the East because “the benefit trickles down from the West.”

He said that, “The value of growing exports, for you, is that you will have less competition coming from the Midwest and West.”

What can alter that picture — overnight — is the impact of trade tariffs and trade wars with the top three countries for off-shore dairy trade, in order: Mexico, Canada and China.

He said the tariffs have had an incredible effect on lactose trade. Those customers can go to Europe. “There’s plenty of lactose in Europe and they are quick to fill the gap with a lower price,” said Roosevelt.

Another big trade item is permeate, which is 70 to 80% lactose with some protein left in. There are fewer global competitors in this market, but when the tariffs hit, product was “in the water” and fourth quarter contracts were being negotiated, resulting in buyers and sellers splitting the extra costs and new contract offers coming in on lower bids.

The bottom line on these two commodities, according to Roosevelt, is less market for U.S. lactose and a lower price on U.S. permeate.

As for nonfat dry milk powder, it goes all over, but primarily to Mexico, Canada and China, in that order. The “new NAFTA” and the trade war with China, combined, can have an impact on all three export destinations for nonfat dry milk.

Mainly, Roosevelt’s point was that trade uncertainty can create changes “overnight” that affect dairy, and that tariffs are bad for agriculture, in general, because they “create inefficiencies that stop the normal market dynamics from taking effect.”

Like every other economist at every other meeting, Wegner talked about how Europe “really put on milk” when the quotas were removed. He admitted that he was among those who didn’t believe it would happen. But it did. And this extra milk, said Wegner, resulted in stockpiled powder that drove prices down globally.

With some intervention and drought conditions affecting Europe, the EU’s growth this year was only 1.4% instead of 2.5%. But a 1.4% growth in Europe represents far more milk than the same percentage of increase in the U.S.

Growth challenges

Wegner explained that the U.S. is growing milk production at roughly 1% per year now, but that equates to 2 billion additional pounds of milk annually. At the same time 600 million fewer pounds are going into bottles for Class I sales.

“That is what is challenging our system,” he said. “We are seeing the cows come out of the system, but better cows are going back in. For things to get better, a lot more cows need to come out.”

With Land O’Lakes having a national footprint, Wegner observed the challenges of more milk coming on in some of the largest herds in the nation. While California is not growing year-on-year, Texas and the Southwest states are growing rapidly.

He noted that even though Michigan’s growth slowed this year, “Michigan is the poster-child for the hazard of growing ahead of the market,” said Wegner. “They doubled their production from 5 billion pounds in 2000 to over 10 billion pounds by 2018, and this drove their price $2 below everyone else because their milk has to move around.”

Wegner touched on the recent Pennsylvania Dairy Study and its finding that a new cheese plant or other new processing capacity could reduce hauling costs for producers and add value to farm level milk pricing.

“New processing is easy to do, but what do you do with the additional product?” he suggested. “We take a market-back approach at Land O’Lakes because if we don’t sell it or eat it, the product gets stored.”

Wegner called cold storage cheese stocks “very high” and he said that butter stocks were “a little higher than they need to be.” (Note that the USDA cold storage report the following week showed a record-high draw-down in butter stocks that may have improved the butter storage situation.)

Wegner also said that Mexico’s retaliatory tariffs, if they remain in place until a new trade agreement is signed, are already stagnating U.S. cheese production into storage – cheese that had been going to Mexico. (Cheese exports were down 9% compared with a year ago in September.)

The bright spots, he said, are the dairy ingredient markets. “But the Class III market, right now, is a dog.”

The Class IV market is improving as Europe works through its mountain of powder, bit by bit. That powder is getting close to two years old, and Wegner observed that the U.S. is selling fresh powder at a price advantage to buyers who want fresh.

Looking at some of the specific market impacts of the trade tariffs, Wegner stressed the “woefully underestimated” tariff-mitigation payments by USDA to dairy farmers, and all three experts agreed that these tariffs, and more that will potentially kick-in January 1st, are having very negative impacts on the U.S. dairy supply chain.

When asked how these impacts could be blamed for the lack of a price recovery when U.S. dairy exports have been record-high for January through September (most recent figures), the response was that producers should not expect higher export levels to improve farm-level prices because these export markets are largely “market-clearing” commodity markets.

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PDMP executive director Alan Novak opens the discussion to questions from the 60 dairy producers and industry representatives gathering at the Bainbridge Fire Hall on November 14 for the Professional Dairy Managers of Pennsylvania’s (PDMP) Fall Issues Forum focused on dairy markets and trade.

Also driving milk production and processing west are the incentives western states provide for new plants, new dairy operations, and growth of existing businesses. For example, the I-29 corridor of the Dakotas is an area that has lots of capacity, is building more, and has dairies, like Riverview, adding cows in a big way.

Indiana and Michigan are other examples of states becoming big dairy suppliers via Select Milk Producers and Fair Oaks. Colorado’s growth is fueled by Leprino, and Texas has multiple growth influencers, including line extensions by Hilmar.

Taken together, the U.S. has grown milk production by 17 to 18 billion pounds of annual production over the past five years, according to Wegner. That’s like adding another Pennsylvania and Minnesota to the nation’s milk load. Wegner said that boils down to 50 million more pounds of milk per day moving in the U.S. compared with five years ago.

Wegner also talked briefly about Land O’Lakes’ base/excess plans. “This is our way of putting some discipline into the discussion, which goes to our market-back approach,” he said. “We moved a lot of milk from our milkshed this year, and that long milk has a cost. At the same time, he noted that Land O’Lakes has been stripping and dumping milk here, that its producers are assessed to pay for that.

“We worked with DFA (Dairy Farmers of America) and DMS (Dairy Marketing Services) on this step to do cream salvage,” he added.

Land O’Lakes’ view of investing in processing is that the products have to be able to move along the value chain in order to produce more of them.

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How do we unwind a trend that demonizes and suppresses a food group?

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A dairy panel with Mike Eby, Nina Teicholz (center), Lorraine Lewandrowski and John King (not pictured) was eye-opening to food-interested people at the 25th NESAWG conference in Philadelphia. Minds were opened as food policy influencers report weeks later some are reading Teicholz’s book The Big Fat Surprise, and it is changing their thinkingAllied Milk Producers helped sponsor this panel. Stay tuned. 

JUNK NUTRITION SCIENCE STILL RULES DIETARY GUIDELINES

25th NESAWG brings dairy to table in Philadelphia 

By Sherry Bunting, Farmshine, December 14, 2018

PHILADELPHIA, Pa. — Justice, power, influence… Balance. How do people unwind a trend that demonizes and suppresses a food group?

How do Americans have faith in an increasingly globalized food system that gives them choices, but behind the scenes, makes choices for them?

How do urban and rural people connect?

These questions and more were addressed as hundreds of food-interested people from all backgrounds and walks of life gathered for two days in center-city Philadelphia recently for the 25th Northeast Sustainable Agriculture Working Group (NESAWG) conference.

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Lorraine Lewandrowski (left), a central New York dairy farmer and attorney, talks with Niaz Dorry of NFFC. Dorry spoke on the opening panel about her 67,000-mile tour of rural America, urging others to “meet the farmers where they are.” Lewandrowski spoke about the ecology of rainfed grasslands in the Northeast and the struggle of family dairy farms throughout this landscape.

For Niaz Dorry of the National Family Farm Coalition (NFFC), the answer is simple: “Get out into the countryside and meet the farmers — where they are,” she said, during the opening panel of the conference as she talked of her recently completed America the Bountiful tour, driving over 67,000 miles of countryside — coast to coast.

Dorry also touched on the dairy crisis. “Go and experience their grief with them. Be with them at milking on Tuesday and see them sell a portion of their cows on Wednesday — just to make payroll.”

Pennsylvania Secretary of Agriculture, Russell Redding echoed this theme during the lunch address as he said agriculture is “zipcode-neutral,” that we need to forge “a more perfect union in our food system” but that the future lies in “differentiating” agriculture here.

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“We see our future — and our long-term investments in Pennsylvania — driven by differentiation…” said Pennsylvania Ag Secretary Russ Redding.

“It’s nice to be with folks who understand the power of food to change lives,” said Redding as he mentioned rooftop gardens, urban brownfields and Pennsylvania’s rank as number two in the nation for organic sales.

“We see our future — and our long-term investments in Pennsylvania — driven by differentiation, by being able to grow and produce and market organic agriculture,” said Sec. Redding.

With the NESAWG goal to “cultivate a transformative food system,” panels and breakouts covered topics from building networks and insuring equity among sectors to understanding urban food trends and ways to position Northeast agriculture within the power grid that ordains the direction of mainstream food production, processing and distribution today.

A breakout session on building “farm-to-school” hubs, for example, gave attendees insight for getting more fresh, local foods into school meals. Presenters talked about obstacles, and how they are navigated, about martialing available resources, identifying networks, working in collaboration with others, piloting ideas and growing them. Farm-to-School began in 2007, and it is growing.

Another breakout brought a panel of dairy producers to share with urban neighbors the crisis on Northeast dairy farms. The panel featured the work of dairy producers Jonathan and Claudia Haar of West Edmeston, New York, who spoke about consolidation that has been underway for decades in dairy.

But it was an afternoon panel — Milk Economies, Ecology and Diet — that put dairy and livestock producers squarely in the realm of hope for a re-wind.

Keynoting this panel was Nina Teicholz, author of The Big Fat Surprise and founder of The Nutrition Coalition. She covered the history of current government Dietary Guidelines and how rigorous studies have been ignored for decades because they don’t “fit” the narrative on saturated fats and cholesterol.

She was joined by dairy farmer and attorney Lorraine Lewandrowski of Herkimer County, New York, who spoke on dairy ecology and how the rainfed grasslands and croplands of Northeast dairy farms are a haven to wildlife, especially important species of birds and butterflies and pollinators.

They were joined by Mike Eby and John King of Lancaster County, Pennsylvania, representing National Dairy Producers Organization and Allied Milk Producers. The two men spoke on the dairy economy and what is happening on family dairy farms, struggling to remain viable.

“The land is most important to us,” said Lewandrowski about her deep love of Honey Hill, where her family has farmed for four generations. While, she is an attorney in town with farmers among her clients, she also helps her brother with the farm and her sister with her large animal veterinary practice.

Lewandrowski is known as @NYFarmer to her over 26,000 followers on Twitter — generating over 75,000 interactions from nearly a quarter-million tweets in the past 10 years!

She described a reverence for the land and its wildlife — cohabitating with a rich agricultural heritage and sense of rural community that exists within an afternoon’s drive of New York City.

“We have land that is rich in water,” she said with a nod to a dairy industry consolidating into regions that rely on irrigation.

“Our lands are rainfed: 21 million gallons of water run through our farm with an inch of rainfall,” she said. “Our farms are diverse across this landscape. But our farmers are going out of business in this economy. So many of these farms are then turned into urban sprawl. What will become of the people, the land and its wildlife?”

Lewandrowski talked about identifying bird species on their farm, of the crops and pasture in dairy operations, and the economic hardships she sees firsthand. She shared her vision of Northeast rural lands and what they bring to urban tables and communities.

Introducing Teicholz to an audience primarily of urban people, Lewandrowski shared how dairy farmers feel — working hard to produce healthy food, and then contending with poor prices driven by regulations that suppress its value.

“I didn’t know why our food is not considered good and healthy. Nina’s book gave me hope,” she said. “We are fighting for our land, and yet the vegans are so mean. When our farmers go out of business, they cheer on social media. They cheer when our families lose everything. But the land and wildlife lose also, and the vegans cheer.”

Teicholz traced the history of her 10-year investigation that led to The Big Fat Surprise: Why Butter, Meat, and Cheese Belong in a Healthy Diet. It started with a newspaper assignment on dietary fat.

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Nina Teicholz explains the revelations of a decade of investigation leading to The Big Fat Surprise. In the 5 years since publishing, farmers seek her out to thank her. She says she never realized how it must feel to be a dairy or meat producer — producing a healthy product while being told it is not healthy and seeing your livelihood pushed down by faulty dietary controls.

“Before I knew it, I had taken this huge deep-dive into fats and realized we have gotten it all completely wrong,” said Teicholz, a former vegetarian for 25 years before her research.

“I’m here to speak today because I found Lorraine’s twitter account and fell in love with her photos and stories from the dairy farm,” said Teicholz. In the nearly five years since her book was published, awareness of ignored science has been raised.

A California native, living in New York City, Teicholz described herself as an urban person and how surprised she was to hear the stories from farmers about how her book and her work gives them hope.

“It breaks my heart to now realize that — after all this time — the dairy farmers and meat producers have been led to feel that there is something wrong with the food they are producing, and to see how vegans go after these farmers, and now after me too,” Teicholz related.

“How did we come to believe these things that led to the decline in foods like whole milk, and have pushed down the producer?” Teicholz traced the history of dietary caps to the theory of one researcher — Ancel Keys from the University of Minnesota.

“Concern about heart disease in the 1960s led to many theories. The diet-heart hypothesis of Ancel Keys was just one theory, but he was unshakably confident in his own beliefs, and he was considered arrogant, even by his friends,” said Tiecholz.

“When the American Heart Association nutrition committee first supported Keys’ recommendations — even though the scientific evidence was very weak — that was the little acorn that grew into the giant oak, and it’s why we are where we are today,” she explained.

Methodically, Teicholz took her audience through the science that was used to support Keys’ theory, as well as the many more rigorous studies that were buried for decades.

In fact, some of the very research by the National Institute of Health (NIH) that had set out to prove causation for Keys’ theory was buried in the NIH basement because “the results were so disappointing to that theory.”

The studies that did not validate Keys’ theory — that fat in the diet is the cause of heart disease, obesity and other diseases — were suppressed, along with the studies that outright refuted his theory. A steady drumbeat of science — both new and exposed from those earlier times — shows a reverse association and causation.

48329399_2290819234570553_8398919649542012928_n.pngIn fact, since the Dietary Guidelines capped saturated fat in the 1980s — becoming progressively more restrictive in requiring lowfat / high carb diets — the data show the association, that Americans have become more obese, with higher rates of diabetes and heart disease.

“It feels like the battle is endless,” John King said as he spoke of the real struggle on dairy farms and of selling his dairy herd in 2015. “But it is rewarding and encouraging to see what people are doing to expose the truth now.”

King posed the question: “Do urban communities really care about rural communities? If not, then we are done. Our food will come from somewhere else and the system will be globalized.

“As farmers, we care about what we produce, and we care about our animals,” he said. “What happens to us on our farms trickles down to the urban areas. It’s an uphill battle to try to go against the status quo, and we need urban communities to care if we are going to be successful. It comes down to whether urban and rural care about each other. Do we care about our neighbors?”

Teicholz sees the U.S. being in the midst of a paradigm shift. However, it is taking time for the Dietary Guidelines Advisory Committee to change and open up to the science. She noted that in the 2015-2020 guidelines, the caps were removed for cholesterol, but they were kept in place for saturated fat.

“The cholesterol we consume has nothing to do with blood cholesterol,” said Teicholz. “The body produces cholesterol, and if we eat fat, our body makes less of it. It is the science that remains buried that needs to continue to surface. People need to know that the fat you eat is not the fat you get.”

She cited studies showing the healthfulness of full-fat dairy, that drinking whole milk and consuming the healthy fats in butter, beef, bacon and cheese are the fastest ways to increase the HDL ‘good’ cholesterol in the bloodstream.

It is the saturated fat caps in the current guidelines that are the reason whole milk, real butter, beef, and 100% real cheese are not served in schools today, said Teicholz. She showed attendees how these recommendations drive the food supply.

“The recommendations are allowing children to have whole milk only for the first two years of life, after that, at age one or two, children on skim milk,” she said. “The recommendations drive what we eat whether we realize it or not.”

She showed how the current flawed Dietary Guidelines drive the diets of the military, school children, daycare centers, WIC programs, hospitals, prisons, retirement villages. And these recommendations are downloaded by foodservice and healthcare: physicians, dieticians, nutrition services, foodservice menu guides. They are driving how dairy and meat products are presented in restaurants, fast food chains and other menus of choice. They are driving the current FDA nutrition innovation strategy that is working on a symbol for “healthy” and looking at modernizing standards of identity to accomplish these nutritional goals that focus on lowfat / high carb diets.

“Meanwhile, it is the unsaturated fats, the new products in the food supply, that are negatively affecting us and those are all there… in the USDA feeding programs,” Teicholz pointed out.

Others in the panel discussion pointed to an anti-animal view, that cattle are bad for the planet in terms of climate change. These views perpetuate the current dietary guidelines. In fact, in 2015, the Dietary Guidelines Advisory Committee attempted to introduce “sustainability” guidelines on what they deemed “healthy” for the planet into these guidelines, officially.

This is the ecology side that Lewandrowski addressed, showing urban food influencers how the concept of sustainability is being overtaken and systemized and how Northeast dairy farmers have a great story to tell that is being ignored, drowned-out.

“We have to think about how the shifts are occurring in the food system and manage those shifts. We can work together and make change happen,” said Mike Eby, articulating the message of National Dairy Producers Organization (NDPO), seeking to work with the system to manage farmers’ interests.

Allied Milk Producers helped sponsor this dairy panel, and Eby said that whether it is milk promotion through Allied, membership in NDPO, or supporting the buying and donating of dairy products through Dairy Pricing Association (DPA), it is important for people to participate.

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Mike Eby and John King brought Allied Milk Producers materials — and plenty of milk — to the NESAWG conference in Philadelphia. Amos Zimmerman also had a booth for Dairy Pricing Association.

He gave examples of how Allied and DPA — funded by farmers — are reaching out to consumers, schools, urban communities with donations of product and a positive message.

“We need more people to get involved to fix these issues, and to create a system that supports its producers and stabilizes prices,” said Eby.

“We need to reach out and work together as urban and rural communities,” added Lewandrowski.

 

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Hundreds of food-interested people from all backgrounds and walks of life attended the 25th Northeast Sustainable Agriculture Working Group conference in Philadelphia, where networking from urban to rural looked at regional solutions.

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What will become of, us?

sunsetbarn.jpgGovernment’s cozy relationship with dairy lobby is problem no. 1

By Sherry Bunting, reprinted from Farmshine, October 19, 2018

These are tough times. The strain of a fourth year of flat-lined milk prices is wearing thin on dairy farmers and those who serve them.

And the folks inside the Beltway don’t get it.

Wait, maybe they do.

The Farm Bill has yet to be passed, the mid-term elections are over… and the question continues to be asked: What can be done about the fact that family dairy farms are dropping like flies?

This question has been asked and answered for the better part of three years and the whole decade before that… and still we find ourselves repeating the same words falling on the same deaf ears, pleasant nods, and ‘sincere’ handshakes.

Where does Washington go for the answers? The dairy lobby. In fact, members of Congress will say that nothing gets done without getting National Milk Producers Federation on board.

What’s the deal for the future? A better ‘welfare’ program for small farms to window-dress the rapid and deliberate consolidation that is running rough-shod over their markets and using the Federal Order and other regulated pricing mechanisms to do it.

For years, a decade or more, grassroots dairy farmers have told their legislators to please work on repairing the damage government has already done to dairy farming.

They’ve pleaded with those inside the Beltway to heed the truth on the decades of flawed dietary guidelines and to right the wrongs in our nation’s school lunch program and other institutional feeding programs that are forced to follow these flawed guidelines.

But alas, instead of real change, we get more of the same, while the dairy lobby cheers and applauds over a tiny change allowing schools to serve 1% lowfat flavored milk instead of the prior Obama-era mandate of fat-free.

Meanwhile, nothing changes for regular milk in schools. It’s been fat-free and 1% for a decade now, and we have lost a generation of milk drinkers and stand to lose even more, and all the while our school kids fight increased obesity and diabetes rates, and we wonder, why?

Heck, you can’t even sell whole milk as a fundraiser during school hours, and you can’t give it away to schoolchildren during school hours due to these dietary rules that –according to those who have done a decade of scientific investigation of the research –show are actually not healthy rules for our children in the first place.

Plus, we have the FDA, having looked the other way for more than 10 years, now talking about milk’s standard of identity within a greater framework of “modernizing” standards of identity to “accomplish nutritional goals” — goals that are guided by flawed government dietary guidelines.

Instead of acknowledging the past wrong and immediately setting it right, the FDA adds comment period after comment period to try to read the minds of consumers. They want to know if consumers understand what they are buying when they buy fake milk.

The short answer? survey after survey shows that an overwhelming majority of consumers are, in fact, confused about the nutritional differences between real milk and the imposters — some consumers even believe there is milk in the not-milk ‘milk’.

Meanwhile, more time passes. Farmers are asked to wait. Be patient, while more damage is done by counterfeit claims that steal market share from dairy milk’s rightful place.

And then there’s the regulated milk pricing. What are the odds that any member of Congress will heed the past 10 years of requests for a national hearing now that California has enthusiastically joined the Federal Orders? That was the death nell of more of the same.

“It’s a free market,” say the legislators, regulators and market pundits.

“It’s a global market,” they add further.

No folks. It is a regulated market, and believe me when I tell you, the USDA and the major national footprint cooperatives operate this regulated market in lockstep.

Processors can’t access the administrative hearing process, unless they are cooperative-owned processors.

Farmers can’t access the administrative hearing process, except through their cooperatives.

Ditto on the above when it comes to voting. Bloc voting on behalf of farmers by their cooperative leadership seals every deal.

At a meeting a few months ago in the Southeast with USDA administrators that was intended to talk about multiple component pricing, farmers brought forward their grievances about bloc voting and their concerns about how milk is qualified on their Orders to share in their pool dollars.

What was USDA’s official response? The same response we hear over and over from legislators. “You vote for your co-op boards and they vote for Federal Orders.”

The Federal Orders were implemented in the 1930’s to keep milk available to consumers, to keep producers from being run-over. Today, these Orders are used to move milk from expanding consolidation areas to regions that have small and mid-sized family and multi-generational dairy farms located near consumer populations and competitive markets.

This is not a size thing. This is not small vs. big thing. This is structural change thing that is happening in the dairy industry at an increasingly rapid rate while the lifeblood is sucked right out of our culture of dairy farming.

troxel-sale-2The storm is brewing. Since the beginning of this year, the financial experts have told us that one-third of producers are selling out or contemplating an exit from dairy, that another one-third are not sure where they even stand, and that another one-third are moving forward with plans for expansion within consolidating industry structures.

The thought occurs to me: When the other two-thirds of producers are gone, what will become of that one-third that is still moving forward expanding, undeterred? What will become of the fabric from which their progress emerged? What will become of the next generation with hands-on experience, passion and love of dairy? Who will be raised on a dairy farm in the future? What contributions will be lost when dairy becomes only a business and no longer a business that is also a lifestyle? Who will be the support businesses? How will our communities change? Will all of our dairies in the future be academically run? What will become of our cow sense, our deep roots, our sense of community?

What will become of, us?

GL 4736For years we have heard “there’s a place for every size dairy in this industry.” That phrase is how we get small and mid-sized farms to advocate with consumers about modern farming so they will accept a more consolidated dairy farming picture.

Now that we are reaching this point, will we hear the large consolidating integrators say the same in reverse? Will they slow down, push pause, and realize there IS a place for the diversity of farms that make this industry the shining star it is and could be?

While at World Dairy Expo in Madison, Wisconsin in October, the strain of now a fourth year of low prices was evident. Attendance “felt” lower even if the official numbers don’t totally reflect it.

Show entries were down. Traffic among trade show exhibitors was interesting and steady, but ‘off’ and ‘different.’

Dairy farmers are struggling. Large, small, and in between, these times are tough, and clear answers are elusive.

Dairy farmers remain paralyzed by three things:

1) the inability to have an effect on their circumstances or seat at the decision table;

2) lack of understanding of an incredibly complex regulated market; and

3) the innate desire to trust the establishment that handles their milk because they are too busy milking, managing and caring for cows, not to mention the land, to handle the milk marketing themselves.

Just think about this for a moment. In the past four years, National Milk Producers Federation has created and implemented the F.A.R.M. program where someone can come in and put you on a list for a subjective heifer bedding evaluation, where more is being not asked, but demanded, while at the same time, the pay price from which to do more is declining.

The milk checkoff programs continue to focus on partnerships. All kinds of efforts emerge to give away milk and dairy, and meanwhile supermarket wars by large integrating retailers push milk further into a commodity corner from which all imposters can brand their ‘more than’ and ‘less than’ marketing claims.

What we learned at some of the seminars at World Dairy Expo is that nothing will change in the milk pricing system, that it’s a free market, a global market, and that the best Congress can do is improve the margin protection program and other insurance options so farmers have the tools to deal with it.

I’m here to tell you that as long as this remains true, no farmer should be ashamed to use these tools even if it means receiving taxpayer dollars because it is the government’s actions and inaction over a decade or more that have created the problems in milk pricing and marketing today, and furthermore, the government shows no sign of wanting to let go of its stranglehold on dietary guidelines, how it enforces dairy’s standard of identity in fraudulent labeling, nor how it conspires with the dairy lobby — made up of the nation’s largest cooperatives — to regulate pricing in a way that further consolidates the dairy industry.

And by the way, all of the rhetoric on trade and NAFTA and Canada’s supply management system and Class 7 pricing has been nothing more than a smokescreen.

wGDC18-Day1-56Trade is important, but again, we have reached a point where 2018 is seeing the demise of dairy farms at rapid rates while exports continue to set new records. As of Oct. 5, 2018, U.S. dairy exports for the first 8 months of the year (Jan-Aug) accounted for a record-setting 16.6% of milk production on a solids basis. That’s the largest ever percentage of the largest ever milk production total – more of the more – in the history of the U.S. dairy industry’s recordkeeping.

In fact, traders will be the first to tell you that “more exports” don’t translate into “better farm milk prices” because the export markets are largely commodity clearing markets and they are fueling expansion of commodity processing in areas of the U.S. where it is easiest to export to Asia and Mexico. A global supply-chain is in the works.

The exports, in fact, are diluting the Federal Order pricing at the same rapid rate as declines in consumer fluid milk consumption, putting severe pressure on eastern markets in particular.

Meanwhile, the eastern milk markets are extremely tight on milk. This information is sourced to cooperative managers and the independent USDA Dairy Market News. Plants are seeking milk and not receiving it. Trucker shortages are complicating the problem. State regulated pricing mechanisms, such as in Pennsylvania, still interfere, making milk cheaper to bring in than to use what is here. In some Federal Orders to the south, this is also the case because of how their pools are administrated.

We are seeing the vicious circle of self-fulfilling prophecies. Producers who want to operate 50 cow, 100 cow, 300 cow, 500 cow, 1000 cow, 1500 cow dairy farms in the eastern U.S. within a day’s drive of the largest population are in jeopardy. They have lost their location advantage but continue to deal with the disadvantages. As milk tightens they are not seeing their premiums return, instead some farmers report getting docked by their co-ops for not making enough milk, or they are socked with incredible hauling rates because their milk was hauled out while other milk was hauled in.

What can Congress do? Hold that national hearing on milk pricing. Give farmers a seat at the table apart from the company-store. Learn what is happening. See government’s role in it.

Dear Congress, if you really want to know what to do, look in the mirror.

Before it’s too late, please right the fundamental wrongs government has done to our dairy consumers and dairy farmers as it controls what fat level of milk kids are permitted to drink at school, how milk is priced, how milk is marketed and how milk is allowed to be advertised and promoted with farmers’ own money – while at the same time still turning a blind eye and deaf ear to loss-leading supermarket wars that operate off the backs of farmers and the processing industry’s pillaging of milk’s market share with nondairy imposters.

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