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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ReplyForward

Comment period for milk, dairy identity ends 8/27. Part 2 of 7/26 hearing right here

iStock-544807136.jpgBy Sherry Bunting, from Farmshine, August 17, 2018

WASHINGTON, D.C. – There are 10 days remaining for public comment on FDA standards of identity for milk and nearly 80 other dairy products, along with the other aspects at stake as FDA launched its Nutrition Innovation Strategy to determine – and stamp – healthy choices for consumers while taking steps to “modernize” standards of identity to “achieve nutritional goals.”

The daylong FDA hearing on July 26 was one of several relating to these issues on the FDA docket, and as previously reported in Farmshine, dairy has taken center stage for several reasons.

First, Scott Gottlieb, head of the FDA, responded to calls for FDA to take a closer look at the dairy industry standards of identity, especially for milk. He opened the hearing saying that the agency must first determine “how consumers understand and use the term ‘milk’ to know if the inherent differences between these products is well understood by consumers so we can understand how consumers are being misled.”

The public comments being received by FDA through August 27, are the first step in its multi-faceted approach.

Individual comments on any of these converging standards of identity issues and the Nutrition Innovation Strategy can be sent to FDA prior to the Aug. 27, 2018 deadline at the docket portal here.

Or, send to: Dockets Management Staff (HFA–305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20857. 

The second aspect of this brief comment period is to discuss the standards of identity more broadly.

“We want to hear about changes in science to review and update,” said Gottlieb. “We are hearing the standards of identity can cause the food industry to avoid reformulations that would reduce fat and calories. We want to gather this input and encourage out-of-the-box thinking with the bottom line helping consumers to identify healthier options.”

We covered some of the testimony at FDA’s July 26 listening session in Part One in Farmshine, Aug. 10, 2018.

Here, in Part Two, published in Farmshine August 17, 2018, are more of the elements from that hearing that are so important to know and understand…

Of particular interest on dairy product standards of identity were the hearing comments by Cary Frye, senior vice president of regulatory affairs for the International Dairy Foods Association (IDFA). She commended Commissioner Gottlieb for undertaking the Nutrition Innovation Strategy “to improve nutrition and health.”

While absolutely silent on enforcement of milk’s standard of identity, despite representing the nation’s milk and dairy food processors, Frye said, “the key area we are working on is to modernize the standards of identity for dairy products, which make up more than one-third of the 280 standards of identity currently on the FDA books.”

She said these standards “are outdated and stand in the way of innovations and novel processes. Current systems are not working and definitely need to be reformed.”

Frye noted that the cheese standards have been unchanged while ultrafiltered milk processes have been around for 20 years. “Clearly a new approach is needed for processes like this to be used to create new and healthful products.”

She said “processing milk by filtration to concentrate proteins and remove lactose is embraced around the world, but these new processes are not permitted in our dairy products with the current standards.”

Frye did, however, thank the FDA for what she described as FDA’s “recent guidance allowing ultrafiltered milk as an ingredient for cheeses.”

“But the agency needs to go further and make dairy a top priority for modernized standards of identity,” said Frye on behalf of IDFA. “We must incentify innovation. We can’t make these investments if we must petition for standards that take decades to complete.”

Along with standards, FDA wants to modernize label claims as a key element of the nutrition innovation strategy, to give consumers “quick signals” with important information on the nutritional benefits of food choices.

A key question FDA is looking at is: What claims best stimulate innovation to create products that are better choices?

Speakers at the hearing identified food trends, saying consumers are committed to a more balanced approach between nutrition and function, but also the idea of food, that it is part of how they experience life, with taste becoming more important to consumers than nutritional profile as they move away from “lowfat” foods.

(Unfortunately, this FDA strategy has not yet acknowledged there are health-related and nutritional reasons for consumers to move away from “lowfat” dogma of the past 30 to 40 years. My comment to the FDA docket will include sending by mail, a copy of The Big Fat Surprise, by Nina Teicholz, who will join me in sending copies of this book to FDA?)

As in many of these discussions, the generational shifts in food trends and choices are the most noticeable. Hearing presenters noted that millennials are pursuing “clean eating and natural foods” as more important than a nutrition-based label.

With that in mind, upholding and enforcing the current standards of identity for milk and dairy products becomes important since it is simple compared with concocted imitation formulations with long lists of ingredients unable to provide all of the nutrition milk has – naturally.

Hearing presenters also acknowledged that the declines in consumption of meat and dairy over the past 40 years have just begun to “shift back the other way.” People are returning to the fresh perimeter of the grocery store.

(Again, no mystery here, FDA needs to read the book: The Big Fat Surprise)

With millennial food choices driven by a so-called “return to purity,” my thoughts as I listened to the July 26 FDA Nutrition Innovation Strategy hearing is this: Will FDA move incrementally toward giving consumers what they want, while slipping into that desired food the science and innovation the FDA and food industry believe consumers need… in order to “get” the FDA ‘healthy choice’ stamp – however that is ultimately defined in this multi-year strategy and however it is ultimately designed for packaging?

These are big things to watch and participate in.

This is not to say that some new standards aren’t needed. Rob Post for Chobani, testified that they produce a nutrient dense, healthy, strained Greek yogurt, but because no standard of identity exists for this type of yogurt, they are challenged to have standardized nutrition profiles “that account for the 52% protein content in Greek yogurt” when used in institutional feeding programs like the National School Lunch Program.

“Today’s consumers have evolving demands and a new set of food values,” said Post. “Health is important, but so are other values and drivers.”

Others noted that the current standards of identity “do not allow lower salt content for cheese.”

This could be an issue when it comes to nutritional cheese getting a ‘healthy choice’ FDA stamp in the future, if such stamps are based on what are now questionable low-salt directives for healthy eating.

“Standards are important because they assure the consistency of the product, its authenticity and nutrition,” said Post.

Laura MacCleery, Policy Director, Center for Science in the Public Interest testified that, “Americans overconsume saturated fat.” They are among the contingent of wanting to work on labeling to steer consumers away from saturated fat.

Meanwhile, the American Heart Association testified to FDA that they want the standards of identity “modernized to improve the nutritional value of food by reducing both sodium and saturated fat.”

On the flipside, members of the dairy processing industry said they are looking for standards to be modernized to abolish the milk fat minimums and allow lower sodium on natural cheeses that currently have rigid standards of identity. Dairy processors testified that this is necessary to conform to the nutritional focal points of this discussion – salt and fat – that are still based on current dietary guidelines.

Will FDA grant these wishes and will we see lowfat and low salt cheeses introduced as “the real thing” because the standard has changed based on a dietary guideline many in the scientific community are already saying is a flawed guideline?

You can see the intertwined dilemma this FDA Nutrition Innovation Strategy could spawn.

Taste is king, according to the food processors speaking about low salt claims. They said they go ahead and formulate low salt varieties, they just are not always advertising it on the packaging space.

Will modernization of standards of identity low-salt and low-fat our food – our cheese for example — without our knowing it or being able to choose? Do we care if that happens as long as it tastes good? And how is that happening? With milk protein concentrates, given FDA’s already loosened grip on allowable ingredients in cheese standards of identity?

A representative for Great Lakes Cheese spoke up to say that, “Consumer transparency around label claims and that presents a huge consumer perception issue. We are interested in experimenting to reduce sodium in cheeses, but without having to put a flag saying so on our product.”

Without a change in standards, a low salt or low fat cheese would have to be labeled that way. If the fat and salt standards are abolished, no ‘flag’ is needed and consumers won’t know the fat or salt is lowered – it just may taste different.

One question asked was “If our goal is to impact consumer behavior, how do we empower consumers to look for better choices by looking to the nutrition facts instead of making changes to do it for them (with modernized standards and healthy-choice stamps)?”

Part of this process is FDA’s work to “update” the definition of “healthy” as a “voluntary” claim. What kind of symbol should be used, should it be by food group.

“What’s healthy and not healthy shifts over time, and it’s not the same for everyone. If you’re putting a stamp on something today, you may have to take it off at some time down the road,” said one hearing participant.

Dieticians were on the side of “one size doesn’t fit all” when it comes to using FDA-sanctioned ‘healthy’ stamps or symbols on food labels. They preferred to see a focus on foods and food patterns more than specific nutrients.

In fact, one anonymous dietician has already commented on the public document online to say they have spent 30 years with government food programs and this is his or her observation over those 30 years: “We have done a great disservice to the public in trying to get people to eat 6 to 12 servings of carbohydrates per day while subsisting on a lowfat diet.”

A participant from the Edge dairy farmer cooperative of 800 members in the Midwest (formerly Dairy Business Association Cooperative based in Wisconsin) said that, “Accurate labeling is the first step in FDA’s enforcement of existing standards for milk, cheese, yogurt. High nutrition and taste have come to be expected,” he said.

“Inaccurate labeling is not fair to farmers and their investment or to customers who may have been misled. We’re encouraged by FDA’s announcement and we encourage innovation in the dairy case to keep up with changing wants and needs with options for healthy products, but most people under-consume dairy products. We must have the flexibility to make what competes and to label innovative foods made with milk.”

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‘FDA may have forgotten the standard for milk, but we haven’t’ – Part One

Dairy epicenter of broader FDA strategy

 Public comments due August 27

By Sherry Bunting, from Farmshine August 10, 2018

WASHINGTON, D.C. — While the dairy industry is focused on multiple layers to the milk and dairy standards of identity — the FDA review of these standards, and their enforcement, is couched within the broader Comprehensive Multi-Year Nutrition Innovation Strategy launched recently by the Food and Drug Administration (FDA).

Labeling and education are aspects of the strategy, along with a new FDA definition of “healthy choice” to be identified “visually” on foods that meet criteria FDA is still defining.

But the key to the strategy, according to FDA, is to “modernize” standards of identity in order to achieve specific nutrition goals the agency believes will reduce chronic diseases – namely diabetes, obesity and heart disease.

Since 80 of the 280 foods with current standards of identity are dairy foods, and many of the remaining 200 are meat products, the FDA’s noted allegiance to the low-fat dogma of the current Dietary Guidelines does not bode well for how this may all turn out.

That’s why grassroots consumers and producers NEED to get involved.

Of particular concern in a July 26 FDA hearing are regulator use of terms such as “barrier to innovation” or “reformulations of foods using science” in discussing how modernized standards of identity can help the government attain an objective of getting consumers to eat in accordance with the ways it believes will lower chronic disease.

This, despite the fact that noted scientists in the health and nutrition fields and investigative science journalists, like Nina Teicholz, author of The Big Fat Surprise, continue to point out how flawed the science has been for current dietary guidelines,  and how these flawed guidelines have actually led to epidemic rates of obesity and diabetes while doing nothing to abate heart disease and morbidity.

Teicholz observed in submitted comments that, “There is no evidence that saturated fats cause obesity. Consumption of saturated fats have declined 17% since 1970, animal fats down by 29% in same period, while obesity rates are up, so explain how saturated fats can be the cause?”

Hearings on parts of the Nutrition Innovation Strategy have already taken place prior to FDA commissioner Scott Gottlieb’s now-famous statement that “Almonds don’t lactate.” This statement propelled milk and dairy into the epicenter of the standard of identity modernization process FDA already had in motion.

A daylong FDA hearing on July 26 kicked off the standard of identity portion of the Nutrition Innovation Strategy, and two weeks prior, the administration held a listening session specifically on the labeling and regulation of new cell-cultured protein technologies — funded by billionaire investors and conventional agriculture companies — seeking to gain standardized status as ‘animal-free’ versions of various meats and dairy proteins for inclusion in products — interchangeably without notice.

The July 26 session attracted a larger than expected attendance due to the national discussion on imitation milk products, and FDA moderator Kari Barrett indicated there was a “very large webcast audience participating.”

Commissioner Gottlieb kicked it off telling how FDA has been monitoring food innovation trends and sees these trends as providing an opportunity to empower individuals to use nutrition to reduce chronic disease.

He acknowledged a “deep personal interest” in the Nutrition Innovation Strategy as he believes nutrition innovation can help solve health issues, and he believes FDA can develop a policy framework to achieve it in their regulatory role.

(However as the daylong hearing progressed, it became obvious that the notable presenters and regulators on various panels are relying heavily on the current flawed Dietary Guidelines for Americans, which themselves are in need of “modernization” due to the revelations about the poor science behind them, particularly on saturated fat).

“We want to empower consumers with innovation and facilitate industry innovation for healthier foods … to remove barriers and leverage nutrition toward these goals,” said Gottlieb, calling it one of his “top priorities.”

He reminded participants that FDA regulates 80% of the food supply with a long history of informing that regulatory process via the Dietary Guidelines for Americans.

“We want to modernize our regulatory approaches to help consumers seek healthier options,” said Gottlieb. “The historic approach (of FDA) is to set barriers. But by modernizing our framework and approach and looking at consumer trends, the food industry can provide these healthier options with foods consumers are seeking.”

The new area of focus for the agency, according to Gottlieb, will be to see the food industry “compete on the nutritional attributes of their products” within a policy framework that allows innovative reformulation.

Gottlieb also mentioned “calls for FDA to take a closer look at dairy identity,” he said. “But first we must better understand how consumers understand and use the term milk and how they are being misled.”

Gottlieb acknowledged the “proliferation of beverages calling themselves milk” and said the FDA is being questioned about its enforcement of milk’s standard of identity.

“The challenge is that we can’t unilaterally change if we have been historically enforcing it a certain way,” he said.  “That’s what we are starting, a conversation. We are meeting with interested stakeholders and will post a definition later this summer or early fall with specific questions for feedback and then revisit our enforcement.”

The next steps after comments, feedback and proposed definitions for milk will be to provide the industry with guidance on labeling, and then compliance.

“In the meantime, we will take steps on labels where there is a high likelihood of consumers being misled in cases where public health is affected,” Gottlieb said.

In total, the FDA has 280 standards of identity on the books “created when our grandparents were younger than me,” he said. “We want to hear about the changes in science to review so that we can update these standards.”

He gave the example of standards of identity being modernized with industry and consumer input “to reduce fat and calories.”

He said that FDA wants “to gather input and encourage out-of-the-box thinking” so that the standards are not so rigid as to “cause the industry to avoid reformulations that would reduce fat and calories.

“We need diverse opinions,” said Gottlieb, “but the bottom line (of the Nutrition Innovation Strategy) is for consumers to identify healthier options.”

He said that, “Disparities in diet contribute to disparities in health… modernizing standards and label claims are a key element of our strategy to give consumers quick signals with important information on nutritional benefits and provide incentives for industry to innovate for foods with more healthful attributes.”

Expert panelists, like David Portalatin, vice president and food industry advisor, The NPD Group, testified about consumer trends: “Our data suggest that plant-based protein alternatives are increasing very rapidly, and a large percentage of these consumers are not vegan.”

“Protein is the number one thing consumers seem to want to add to their diets, and we’ve seen a proliferation of ways to add it, and consumers say ‘yes’ I’ll try that,’” said Portalatin about the renewed interest in high protein diets. “When we invest in new stuff, we buy it, we are not a meat-avoidance society.”

He noted that according to survey data, 84% of people reporting they are consuming plant-based alternatives while they are not vegan or vegetarian. “There are a lot of us trying these alternatives,” said Portalatin.

He also mentioned that the interest consumers have in purchasing “low-fat” foods is declining, that people want real food – as it is – and want to control their intake of fat by portion size.

FDA hearing graph

David Portalatin said that in addition to more protein and fewer concerns among consumers about fat, consumers aso want more calcium, iron, Vit. A and antioxidants. Milk contains all and is a big source all but iron, while beef is a big source of the iron. A recent study showed that milk and other dairy foods are “densely packed” with antioxidants delivered in a more soluble way via the protein and fat found naturally in milk —  the very fat that FDA and the food police want people to eat less of and the very protein that some experts at the hearing said consumers want more of, but are not deficient in. In other words, consumers are going one way with their diets (away from flawed guidelines that have led to chronic illness) while the government may use this nutrition strategy to shepherd consumers back into the flawed guidelines obedience flock they are just now breaking free of. Screenshot by Sherry Bunting during FDA hearing webcast 

Interestingly, the four areas consumers are trying to improve their diets are found in the combination of real milk and beef in the diet.

The American Heart Association had a representative during the open comment time telling FDA they “want the standards of identity to be modernized to improve the nutritional value of food by reducing sodium and saturated fat.” (More on this in a future part of this series).

While he noted that generational cohorts are the biggest drivers of change, the renewed interest in high protein diets is, in his opinion, not necessary since “American diets are certainly not deficient in protein,” in Portalatin’s opinion.

He and other panelists tended to lump this high protein diet preference with a return to higher fat in the diet. Not one panelist recognized the revelations about low-fat dogma of 40 years contributing to the very chronic diseases the FDA strategy seeks to prevent. Every indication from this hearing is that FDA will fall in line with the Dietary Guidelines Advisory Committee in continuing to tweak all kinds of rules and regulations to get Americans to eat less fat — unconsciously — through modernized standards and reformulated foods.

The Good Food Institute — an organization representing plant-based and cell-culture imitation meat and dairy products — had legal representatives testifying on July 26 that, “FDA’s practice for the last decade or more in its guidance for ‘milk’ is that we could use the term ‘milk’ with appropriate modifiers, like almondmilk. The same has been true of butter, such as cashewbutter.”

The Good Food Institute insisted that when their foods can use a standardized term with a modifier, it allows their new – and they say healthier (but are they?) – products come to market more easily. “If that changes, it will make it harder for newer and healthier foods to come to market,” they said.

A representative for Dairy Farmers of America spoke during the open comment time saying that, “The current standard for milk should be enforced as it is. The plethora of products are borrowing the dairy industry’s nutrition profile, and those products may not be as nutritional or wholesome with FDA not enforcing the standard.”

From the Academy of Nutritionists and Dieticians, Jeannie Blankenship, said their professional members will have to “translate” whatever FDA decides on these things. “Consumers must be able to readily understand,” she said. “People with food allergies and intolerances use these standardized terms in a different manner than the general population.”

North Carolina Ag Commissioner Joe Reardon cited the standard of identity defines milk as a lacteal secretion of the mammary gland. “Plant-based beverages do not meet that definition,” he said. “If milk is on the label, then milk should be in the product. Without enforcement of this simple standard, then all standards of identity are compromised.”

He and others made it clear they are not advocating for these plant-based beverages to be removed from the market.

“We recognize they are a vital option for many consumers; however, they should be labeled correctly, without the term ‘milk,’” said Reardon. “North Carolina and other states stand ready and willing to assist FDA to enforce this standard and for the industry to come into compliance. We have heard here all day about the importance of a label, but without truth in labeling, none of the other matters.”

Kim Bremmer FDA Hearing (1).jpg

Kim Bremmer testified to FDA on behalf of the American Dairy Coalition about enforcement of the definition of milk. Photo provided by ADC

Speaking for the American Dairy Coalition, which recently started an Integrity Initiative, Kim Bremmer, a dairy producer from Wisconsin said “You play a vital role in giving consumers the information to make choices. Nutrition matters. I see tens of thousands of consumers in my speaking and the vast amount think some of these beverages have cow’s milk in them, and most believe they are as nutritional as milk, and they aren’t. The play on words is misleading.”

Bremmer described cow’s milk as a powerhouse of nutrition with crucial nutrients for cellular function. “No other drink packs this nutrition. There’s no comparison,” she said, explaining what she sees and hears when fourth-graders visit her farm and she watches the children connect the dots to realize the almondmilk they may be drinking at home, isn’t milk at all.

“One in five people are food insecure and one out of 10 adolescent girl are deficient in calcium. We have a problem. We must protect the integrity and identity of milk because nutrition matters,” said Bremmer.

Rob Post from Chobani was there to talk about getting a standard of identity for Greek yogurt so that schools and other institutional feeding situations could accurately quantify the protein levels. As it is now, they are standardized at the regular yogurt levels of protein even though strained Greek yogurts are 52% protein — twice that of regular yogurt.

While he said standards of identity have not kept pace with new food innovations, and he wants to see a better process, he was quick to defend the current definition of milk and dairy — and its enforcement — saying that, “It’s important to have options, but words matter to consumers and dairy means something specific. It means nutrient dense, minimal processing. It is important that this standard is preserved,” said Post.

From National Milk Producers Federation (NMPF), Tom Balmer noted that the issue comes down to “safeguarding the standards to help maintain honesty in the markets.”

“Milk, yogurt, cheese, butter. Standardized dairy terms are being coopted by others as purely a marketing gimmick, while these products lack the nutrients and attributes of dairy,” said Balmer.

“Consumers don’t realize they are being shortchanged. It’s hard to talk about ‘modernizing’ standards when current standards are not enforced. FDA may have forgotten the standard for milk, but we haven’t. Enforce the current standards and stop the confusing and deceitful marketing practices.”

International Dairy Foods Association (IDFA), representing milk and dairy processors, was mum on milk, but touted an array of expanded and modernized standards they want to see for many dairy standards. More on that in part two.

The American Dairy Coalition is urging the FDA to stop allowing the wrongful use of the word “milk” on non-milk, plant-based alternative products labels. To sign the ADC Milk Integrity Initiative petition, it is available online at http://www.americandairycoalitioninc.com/the-integrity-initiative.html

Public comments can be sent to FDA prior to the Aug. 27, 2018 deadline at the docket portal at https://www.regulations.gov/docket?D=FDA-2018-N-2381.

Or, send to: Dockets Management Staff (HFA–305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852

All submissions received must include the Docket No. FDA– 2018–N–2381 for ‘‘FDA’s Comprehensive, Multi-Year Nutrition Innovation Strategy.’’

Look for part 2 this week.

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Win, win and win: Turning tough challenges into abundant goodness

Philabundance partners with local dairy farms to bring Abundantly Good dairy foods to those in need.

By Sherry Bunting as published in July 20 Farmshine

PEACH BOTTOM, Pa. — Great ideas often come wrapped in tough challenges.

For Lancaster County dairy farms and Philabundance — the Delaware Valley’s largest hunger relief organization with a 30-year history of rescuing and upcycling food — the urban and rural challenges of hunger, food waste and price-depressing surpluses have converged under the new ‘Abundantly Good’ business model and brand.

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The folks at Philabundance are enthusiastic about working with Lancaster County dairy farms, like Cedar Dream(pictured) near Peach Bottom.

It’s mid-morning in July, and the day’s first milking and chores are done at Cedar Dream Farm. The 53 registered Holstein cows on this southern Lancaster County dairy farm lay comfortably chewing cud in the fan-cooled tiestall barn.

They will be turned out to pasture in the cooler overnight temperatures after the evening milking. Tended by Abner Stoltzfus, his wife Rebecca and the older of their eight children, the herd produces an RHA of 24,000M 3.9F 3.3P with somatic cell counts between 100 and 130,000. Their cleanliness and comfort tell the story.

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Next to the spotless and kosher-approved processing room, the chiller holds not only finished products but also clean, bright white pails of fruit puree for yogurts. I was attracted to the in-season black raspberry!

Before looking in again on the cows and heading to the fields, Stoltzfus takes time to show me the dairy processing room and the chiller full of consumer-ready milk and yogurt in the small creamery built a little over a year ago on the farm.

He offers a pint of the strawberry drinkable yogurt. Creamy, with just the tiniest hint of color from the strawberry puree. It had all the farm-fresh flavor I was thirsting for. Yum.

We talk about how co-packing for Philabundance and Sunset Farms helped launch the Cedar Dream creamery last spring.

What began for Philabundance in the past few years — utilizing PASS (PA Ag Surplus System) funds from the Pa. Department of Agriculture to reclaim surplus milk and pay the processing, packaging and transportation to turn it into cheese — is now expanding with the funding from the new retail brand, according to Monika Crosby, assistant manager of food acquisition for Philabundance.

To increase their reach, Philabundance launched the Abundantly Good brand a year ago, focusing primarily on specialty cheeses. For each pound of cheese sold through retail partners, $1.00 is returned — totaling over $9,000 so far — to buy even more surplus milk to make even more cheese, and now yogurt, for the food banks, soup kitchens, Fresh For All farm markets for eligible families, and other Philabundance clients and programs.

Crosby shares her concern about the 40% of food that is wasted yearly in the U.S., while 1 in 5 Philadelphians don’t know where their next meal is coming from.

She grew up the daughter of a dairy farmer in the New York Finger Lakes Region. When her father met Amos Zimmerman of Dairy Pricing Association during a meeting in New York, the connection between Philabundance and Lancaster County dairy farms followed.

“There is an overabundance of perfectly good milk, and yet so much of it has to be thrown out. So, we developed a business plan with Sunset Farms to utilize surplus milk to create cheese and yogurt,” Crosby says, explaining that the surplus milk goes to Sunset Farms in Ronks for cheesemaking and butter. Excess skim from butter-making goes to Cedar Dream.

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Abner Stoltzfus figures he’s made 8,000 pints of drinkable yogurt, with over half of it vanilla flavored, using surplus skim milk for Philabundance, and half from his farm’s own milk as Cedar Dream strawberry flavored drinkable yogurt (left) for the retailers selling Cedar Dream whole milk and whole chocolate milk (right). He also does other sizes, including 6-oz. bottles of milk and drinkable yogurt as well as cup-yogurt.

At Cedar Dream, the skim milk is heated to 108 degrees in the new vat pasteurizer. Yogurt cultures are added, and 12 hours later, flavoring is added. The process turns a pound of surplus skim milk into a pint of nutritious, full-bodied and flavorful drinkable yogurt — with nearly 4000 pints of vanilla made for Philabundance families since April.

This journey really began in the spring of 2017, when Philabundance used PASS funds to help divert 12 loads of surplus milk destined to be dumped. Local cheesemakers turned this into 66,000 pounds of natural, high-quality cheese for hungry Pennsylvanians, according to Crosby.

From that experience, the idea for the Abundantly Good brand was born during collaborations between Philabundance and its partners, including the Central Pennsylvania Food Bank and Chester County Food Bank, as well as the Pennsylvania dairy industry.

“We saw the great need for more high-quality dairy products… and decided to develop the Abundantly Good program to help fund our purchases of more dairy products for our community,” says Crosby.

The Abundantly Good specialty cheeses are sold to retailers like Di Bruno Brothers, Riverwards Produce, The Common Market and Third Wheel Cheese Co.

“We jumped at the chance to partner with Philabundance by selling Abundantly Good cheese, as it gave us the chance to sell something that tastes good and does good at the same time,” said Emilio Mignucci, vice president of Di Bruno Bros. in a press release. The specialty food retailer piloted the concept by carrying five varieties.

As they saw success with cheese, Philabundance went back to their farmers and learned there was excess skim milk from butter production.

“We determined that yogurt would be both delicious and nutritious for our families in need,” Crosby adds.

Stoltzfus says most of what his creamery does right now is co-packing for Philabundance, Chester County Food Bank and Sunset Farms. But he also brings a bit of his own herd’s milk in to package whole milk, whole chocolate milk, cup yogurt and drinkable yogurt under the Cedar Dream brand.

“They say it takes a full year to get started into on-farm processing. That’s about right,” says Stoltzfus, thankful for the opportunity to co-pack while he begins developing and marketing his own products. They are seeing a slow and steady increase by word of mouth in a few small local markets like the Solanco Market and East Drumore Foods.

“I want to provide consumers with a local Pennsylvania dairy product, fresh off the farm, and be happy with the product I produce,” he explains, emphasizing that this is not something that happens overnight. “I knew to be careful and not get too aggressive too fast. I want to take one step at a time, so I don’t fall.”

A former board member of Dairy Pricing Association, Stoltzfus understands the double-challenge of dairy excess pressuring farm milk prices and the plight of food-insecure families, so he was more than happy to do something that is beneficial for others.

“We have the facility to do this and are gladly doing it,” he says. “I figured we’d be focusing more on cup yogurt, but after sitting down with Philabundance, we started making the drinkable yogurt, and they seemed to really like that.”

Set up to bottle 400 to 500 pints per hour, he does about 500 to 600 pints per week with some weeks up to 3000 pints, but it’s the prep and everything else associated with having a creamery that takes time.

“I see the way things are going, the uncertainty, and I knew we better figure something out to keep us going,” he reflects.

While he likes being involved on the processing side, and sees more people exploring this option to help save smaller family farms, he’s quick to point out: “It does take some attention away from the farm and the cows.”

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Copacking helps Cedar Dream creamery get established

He knows he needs to balance his time and growth, even though he’d love to take milk from every dairy farm that has contacted him as new market uncertainties emerge in his community, not just for independent producers, but also co-op members around how Sunday milk pickups are handled.

“I would love to say yes to everyone, but I am just getting started,” says Stoltzfus. “I can’t grow too fast ahead of myself. Getting established is very important.”

He is grateful to those who are helping along the way, including his lender, Ephrata National Bank, for seeing the vision in the creamery investment.

For Philabundance, it’s dairies like Sunset Farms and Cedar Dream that are a big part of the triple-bottom-line they seek with the Abundantly Good brand, according to Elizabeth Sanon, assistant procurement manager.

“This project has enabled us to provide quality dairy products that far surpass anything we’ve been able to offer to our families previously,” she says. “We are not only combating the need for better access to healthier foods… but are reducing unnecessary waste of agricultural products and creating an innovative new revenue stream for local farmers.”

Under the farmer-mantra of ‘leaving this place better than we found it,’ Sanon says that while the U.S. continues to lose family farms at a rapid rate, the number of food-insecure people continues to rise. “With Abundantly Good, we are able to create solutions within the community to address these problems.”

The hope is for the Abundantly Good brand to continue to grow in retailers and product lines to ultimately fund the free distribution of dairy products to those in need on a year-round basis.

To learn more about Philabundance, including its Fresh for All program and the Uplift and Upcycle partnerships, visit https://www.philabundance.org  or contact Kait Bowdler, deputy director of sustainability at sustainability@philabundance.org.

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Abner and Rebecca Stoltzfus and their children milk and care for 53 registered Holstein cows and their replacement heifers. Cows spend the hot days in the fan-cooled tiestall barn and are on pasture in the cooler temperatures after the evening milking. They produce a 24,000-pound herd average with 3.9 fat, 3.3 protein.

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FDA admits almonds don’t lactate, but here’s the rest of the story…

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They’re even taking her ‘moo!’ Investor-heavy high-tech startup companies are (with USDA’s help) taking her DNA to give food-grade yeast her protein-producing ability in a fermentation process to make “animal-free milk and dairy.” They’re editing her cells to grow muscle blobs in bioreactors for “animal-free boneless beef” and using her unborn bovine fetal serum as the culture media for the so-called ‘clean’ ‘animal-free’ cell-cultured meat growth. And they are taking her “moo” with website invitations to “join the ‘Moo’-vement or to get ‘moo-ving’ for all the dairy you love with none of the cows.” Meanwhile, FDA is poised — in a multi-year nutrition innovation strategy — to expand standards of identity for milk/dairy and meat/beef to accomplish nutrition innovation goals that, themselves, are being questioned and in the end may give these companies the license to steal. Photo by Sherry Bunting

FDA nutrition innovation strategy poised to ‘modernize’ how milk, beef defined as high-tech labs make cow-less versions of both

By Sherry Bunting for Farmshine, July 27, 2018

WASHINGTON, D.C. — As President Ronald Reagan famously said: “The nine most terrifying words in the English language are: I’m from the government and I’m here to help.”

Last week’s news that the Food and Drug Administration (FDA) will “help” the situation of imitation milk labels was followed by specifics from FDA Commissioner Scott Gottlieb.

He revealed in a live interview with Politico: “An almond doesn’t lactate, I will confess.”

Now there’s the sound bite everyone wants to hear, and the media and social media worlds went wild. But what does it really mean? Here’s the rest of the story and how to get involved.

Gottlieb said publicly that FDA plans to start gathering public comments before taking next steps in “redefining the rules for milk products”.

What he didn’t say in the Politico Pro Summit on July 17 is that FDA has already published a hearing and comment notice in the June 27, 2018 Federal Register for a July 26 hearing that covers three topics related to “modernizing” standards of identity, and the comment period ending August 27, 2018.

Will the government’s offer to ‘help’, in this case, result in more dishonesty and skulduggery, tricking consumers into eating what they may not otherwise choose and allowing investor-heavy startup companies to steal from farmers and ranchers, not only the identity of the products they produce, but also the very commodity-promoting checkoff dollars the government mandates they pay?

FDA already has a standard of identity for milk, and almost 100 dairy products, that it has chosen to ignore for more than a decade on any product except actual dairy milk.

Here’s the rub… If real dairy milk does not have added Vitamin D (when fat is removed Vit D is added to bring it back to full-fat levels of Vit. D), it can be deemed “mislabeled” by FDA and unable to call itself MILK.

But, if there are almonds and soybeans in your milking parlor — by all means, have at it,  label it milk — with or without Vit. D — not to mention without real milk’s levels of protein, quality amino acid profile and 9 essential nutrients.

You see, the standard of identity for milk is enforced when it comes from a cow, but not when it comes from a plant. And yet, because there is a standard of identity for milk — a nutritional and functional expectation — the plant-based knock-offs get to hijack that profile without being held to it and can selectively market from it with ‘more xxx’ or ‘free of xxx’ statements without stipulating what they are deficient in. (Example: Almond milk labels should say “88% less protein” if they are going to differentiate from the standard of identity they are hijacking).

By its own admission, FDA has maintained a non-enforcement posture on plant-based imitation beverages. Described as “enforcement discretion,” FDA has looked the other way and the dairy foods industry was either asleep at the wheel or developing imitations on the side, while these imposters were flooding the dairy case.

Meanwhile the companies investing in the imitations were free to do their market development and consumer confusion while securing space in the dairy case.

The timing of Gottlieb’s comments last week is even worse, given FDA’s launch of a multi-year nutrition innovation review as part of the agency’s nutrition innovation strategy revealed in March that seeks to expand standards of identity for products like milk and meat.

FDA meetings are happening quickly and quietly in various areas of imitation animal protein labeling and regulation. Yes, they are public meetings, but no one really knows about them.

Milk and dairy products have already been on the receiving end of identity-theft for more than a decade, and now that griddle is heating up to pancake both dairy farmers and ranchers (cattle are the target) with new plant-based mixtures, but even more horrifying are the genetically-edited cellular protein blobs or white-substance-exuding yeast grown in bioreactors yearning to be beef and milk.

There are new identity-thieves lurking about and guess what? USDA — the government — is the source of the bovine gene-edited cells and bovine gene-sequenced yeast in the heavily-investor-funded tech food startup companies that are the real focus of FDA’s recent moves.

With patents in hand — and funding from their big investors to scale up manufacturing — they seeking regulatory and labeling authority under FDA to be meat/beef and milk/dairy — without the cows.

FDA had a hearing on cell-cultured proteins July 12, and comments on regulation and labeling for this are due September 25.

A hearing on standards of identity was held by FDA on July 26 (after Farmshine press time), and comments are due August 27. (Look for more on this in next week’s Farmshine).

Dairy and beef producers need to become actively engaged in these moves by FDA because the main organizations that represent them — National Milk Producers Federation and National Cattlemen’s Beef Association — are on record stating these cell-cultured products should be subject to regulation under USDA like real meat and dairy. They are mainly seeking a level playing field in the marketplace, not opposing their classification as meat, milk, dairy.

(NMPF is vigorously defending milk’s standard of identity against plant-based imitations on nutritional grounds, but seeking a level playing field on the cell-cultured proteins).

Trust me, food and dairy manufacturing companies and investors have already hired the best and the brightest and are already involved in this FDA process — cheering for the other team.

Here’s an example: Perfect Day ‘animal-free milk’ is on the market after receiving its patent in February and raising $24.7 million in first-round startup funding from investors to scale-up manufacturing.

This company has a business-to-business (B2B) model, according to an interview with Reuters, and is already working with some of the world’s largest dairy food and beverage manufacturers. Its website states that the product is just like milk in terms of proteins, but without the cholesterol, saturated fats, lactose, and environmental impact of cattle. Just think what this portends for the dumping of even more fat-free real milk from the market.

In fact, a primary foreign investor indicated support for the Perfect Day (fake milk) startup because it aligns with United Nations Sustainability Goals for 2030. (There’s that S-word again. I hope we are paying attention to how the S-word and cattle are getting along these days). Continental Grain is a big investor in both the Memphis Meats (fake meat) and Perfect Day (fake milk) startups, while Cargill and Tyson are investors in the Memphis Meats startup.

These high-tech food sciences are attracting big high-tech investors at a rapid rate because they are viewed as “disruptor technologies,” and their websites and promotional materials hold nothing back. Milk, meat, beef, dairy – no words are off limits in their branding and marketing.

In effect, while the government forces dairy and beef producers to pay a checkoff tax for promotion of their commodities, beef and dairy — and the names of products associated with those commodities — the government is looking the other way or now potentially encouraging more identity-theft as techies enter the food space to market proteins using the dairy and beef profiles and images, without paying one dime.

As for Perfect Day, this fake-milk is made by genetically altering food-grade yeast, taking DNA from a cow and sharing its protein-producing qualities with the yeast. (Sourced from the USDA, the genetically-altered yeast are cultivated to produce ‘dairy’ protein).

This process results in a microbe that is combined with a sugar substrate (food for the microbe) to feed, grow and exude in a fermentation process the company says is like “craft-beer-style-brewing,” producing protein “building blocks” for making dairy milk, yogurt and cheese. Perfect Day’s website says: “Dairy reinvented: Sustainable. Kind. Delicious.”

The end game is to provide a ‘base dairy’ protein that looks and tastes like milk, for inclusion in manufactured dairy products like cheese, ice cream, pizza, yogurt, and to work “synergistically” with the dairy foods industry as — according to the website — “a complement to cow-based milk that takes some of the stress away from the factory-farming system, rather than replace dairy cows entirely.”

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Memphis Meats and other companies on the fake meat side are doing similar things with cell-culturing to grow cellular protein blobs in laboratory bioreactors.

In each case, the ultimate goal is to decrease the need for cattle — be they dairy or beef bovines.

Think about this for a moment. Even at a 1 to 3% inclusion rate in common dairy foods or ground beef, these lab-cultured proteins and genetically-altered yeast give processors even more control over supply, demand and pricing of milk as well as boneless beef, and if standards of identity allow this, or if FDA enforcement discretion looks the other way – consumers will never know the integrity of their food has been changed.

If FDA modernizes its standards of identity to accomplish the goals as outlined by Commissioner Gottlieb — including a reduction in saturated fat consumption despite revelations that saturated fats are healthful not harmful — it is entirely possible that FDA’s new guidance could allow these protein “innovations” in standardized dairy and meat products, without being considered mislabeled and with no indication to consumers.

Gottlieb has already established FDA’s desire to accomplish certain nutritional goals by spurring innovation with more “flexible” standards of identity.

Ahead of the July 26 hearing, FDA published its intention to cover three aspects in the standards of identity discussion: 1) Protecting consumers against economic adulteration; 2) Maintaining the basic nature, essential characteristics, and nutritional integrity of food; and 3) Promoting industry innovation and providing flexibility to encourage manufacturers to produce more healthful foods.

FDA’s Federal Register notice also says the following: “Our intent is that modernizing standards of identity to improve the nutrition and healthfulness of standardized foods will promote honest and fair dealing in the interest of consumers and achieve the goals of the Nutrition Innovation Strategy.”

How can FDA pursue this course in the face of what has been revealed in the past three to four years? It appears that bringing these B2B products to market, along with the FDA nutritional innovation strategy, are happening ahead of the battleground brewing for the next round of Dietary Guidelines.

It appears they want to modernize standards of identity for dairy within less than one year, to get them in place before the current flawed dietary guidelines are challenged in the 2020 cycle, which begins in earnest in 2019.

Numerous investigations and scientific reports and studies show that the saturated fat avoidance of more than 30 years was not only never proven to be healthful, it is now shown to be harmful. And the rhetoric from the United Nations and various Sustainability projects continues to focus on cattle as being bad for the planet, despite evidence to the contrary.

FDA wants comments that specifically talk about how the agency can use standards of identity to encourage the production of more healthful foods, to take into consideration technology, nutrition science and marketing trends, and to assess what consumers expect these standards to tell them.

Is FDA about to help the food industry blur the lines of food integrity to trick people into eating according to USDA/HHS flawed set of dietary guidelines (and UN environmental sustainability assumptions)?

That would be the ultimate dishonesty, and much worse than the 10-plus years of ignoring dairy identity theft already happening daily in the supermarket dairy case. Expanding the standard of identity, depending upon how it is accomplished, would give large, powerful, multinational food corporations a true license to steal.

Last week, the American Dairy Coalition (ADC) launched a “Protecting Milk Integrity Initiative” to advocate for the proper use of federally standardized terms established for the word “milk” on product labels. ADC is a coalition of dairy, ag and livestock producers, and they are devoting a branch of their organization to work specifically on “providing clarity and consistency for consumers across the nation,” the organization said in a July 17 news release.

ADC is getting the word out that it believes the dairy industry must speak up to ensure the FDA understands how important it is, not only for the current standard of identity for milk and dairy products to be upheld, but for it to be fully enforced — restricting the use of the word “milk” on all future plant-based or alternative product labels.

They point out that the price of milk continues to decline while sales of plant-based alternatives are up 61% over the past five years with projections of more market share gains in the future.

Don’t be fooled by FDA’s admission that almonds don’t lactate. Instead of the enforcement of milk’s standard of identity that dairy farmers have been waiting for, FDA has already quietly launched its process for modernizing standards of identity to achieve specific (and flawed) nutritional goals.

To comment on Docket No. FDA-2018-N-2381 for “FDA’s Comprehensive, Multi-Year Nutrition Innovation Strategy,” due August 27, 2018, use the docket portal at https://www.regulations.gov/docket?D=FDA-2018-N-2381.

To comment on Docket No. FDA-2018-N-2155 for “Foods Produced Using Animal Cell Culture Technology, due September 25, 2018, use the docket portal at https://www.regulations.gov/docket?D=FDA-2018-N-2155 .

To mail comments for either one, reference the appropriate docket name and number in your letter and mail to: Dockets Management Staff (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852

In addition to commenting, a petition has been developed by the American Dairy Coalition’s Protecting Milk Integrity Initiative, and signatures are being collected to submit with public comments. ADC is also taking donations to raise funds to fight this cause.

More information about Protecting Milk Integrity Initiative, visit American Dairy Coalition

To learn more about the July 12 FDA cellular protein hearing (fake meat) and July 26 standards of identity hearing (fake milk), stay tuned to future editions of Farmshine for full reports ahead of the deadlines for commenting to FDA on both.

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CAPTIONS

FAKE MEAT and FAKE MILK

New Harvest and Memphis Meats testifed to FDA on July 12 that cell-cultured ‘meats’ are inevitable. They showed diagrams of how gene-edited bovine DNA and culture media are combined in bioreactors to make cellular blobs they want to call ‘boneless beef’ — without the cow. Similar diagrams can be found for Perfect Day and their phrase: ‘all the dairy you love with none of the cows’ at their website perfectdayfoods.com. Screenshot of materials displayed during FDA hearing by Sherry Bunting