Digest Highlights

NMPF seeks intervention on FDA enforcement of labels on plant-based dairy alternatives

The National Milk Producers Federation (NMPF) ramped up pressure in its seemingly never-ending quest to have the FDA enforce labeling and marketing regulations concerning plant-based dairy imitation beverages and foods.

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Dave Natzke
Editor / Progressive Dairy

In a 19-page letter to the director of the office of the ombudsman within the FDA, NMPF President and CEO Jim Mulhern said the agency’s failure to regulate misleading labels on dairy alternatives was a “clear dereliction of duty” and asked for intervention to break the bureaucratic logjam.

The FDA ombudsman serves as a neutral and independent resource for members of FDA-regulated industries when they experience problems with the regulatory process.

Mulhern said inaction by the FDA had “led to the proliferation of unlawfully labeled, nutritionally inferior nondairy substitutes that not only fail to comply with the applicable ‘imitation’ dairy food disclosure requirement, but are misrepresented as ‘milk,’ ’yogurt,’ ‘cheese,’ ‘ice cream’ and ‘butter’ by misappropriating common or usual names for dairy foods to name imitation dairy foods.”

“Allowing unlawfully labeled ‘plant-based’ imitation dairy foods to proliferate poses an immediate and growing risk to public health; it is a clear dereliction of the FDA’s duty to enforce federal law and agency regulations,” he said.

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DMC enrollment continues

Enrollment for the 2021 Dairy Margin Coverage (DMC) program opened on Oct. 13 and runs through Dec. 11 at USDA Farm Service Agency (FSA) offices. As of Nov. 2, about 2,399 dairy operations (10% of those with established milk production history) had enrolled in the 2021 DMC program. Milk production enrolled was estimated at 19.7 billion pounds, also about 10% of the established history.

  • Resources: Use a new DMC Decision Tool to help make 2021 program enrollment decision. View a video explaining the revamped tool here.

Organic dairy stays on growth path

While the number of overall U.S. dairy herds continues to decline, the USDA’s latest Certified Organic Survey revealed growth among organic dairies. Based on the 2019 survey, certified organic dairy herds, cow numbers, milk volume and value were up substantially from a similar survey in 2016 survey.

Organic milk sold during 2019 topped 5.1 billion pounds, up more than 1.1 billion pounds (nearly 22%) from 2016. The value of organic milk sold was up nearly $200 million (14%) from 2016 to $1.585 billion.

The number of farms with certified organic cows was estimated at 3,134 in 2019, up 575 since 2016. Of all organic dairy herds, about 3,100 marketed milk in 2019, up 569 (22%) compared to the previous survey. (Based on USDA statistics, the overall number of all dairy herds commercially licensed to sell milk fell from 41,819 in 2016 to 34,189 in 2019, a decline of about 18%.)

With more and larger herds than in 2016, cow numbers managed organically increased by 84,383 in 2019. Peak U.S. organic cow numbers during the year were estimated at 363,404 head, ending the year slightly lower at 337,540 head.

For more information and individual state data regarding organic dairies, cows, milk volume and value, see the Nov. 25 issue of Progressive Dairy.

USDA awards fourth round of ‘food box’ contracts

On Oct. 28, the USDA authorized contracts for the fourth round of the Farmers to Families Food Box Program, covering deliveries through Dec. 31, 2020. Previously, U.S. Ag Secretary Sonny Perdue had announced an additional $500 million would be allocated to fund the program for the final two months of the year.

A full list of approved suppliers will be posted on the Farmers to Families Food Box Program webpage.

The new round of food boxes will again provide a combination of foods, including 5-6 pounds of dairy, plus the equivalent of 1 gallon of 2% or whole milk.

Dairy products must contain at least one product from two groups:

  • Group A options include cheddar, Swiss, pepper jack, mozzarella or other hard, semifirm or semisoft cheeses.
  • Group B options include cottage or cream cheese, yogurt, butter and sour cream.

About 110 million boxes had been distributed through the first three rounds of the program.

CFAP payment updates

Direct payments to U.S. dairy farmers through both versions of the Coronavirus Food Assistance Program (CFAP) topped $2.64 billion as of Nov. 1.

  • CFAP 1 payments totaled $1.766 billion to 24,519 applicants. The application period closed Sept. 11.
  • CFAP 2 payments totaled $876.9 million to 16,231 applicants.

Direct payments under CFAP will equal $1.20 per hundredweight (cwt) on eligible milk production for the last nine months of 2020. The sign-up period is open through Dec. 11, 2020, at USDA FSA county offices. CFAP 2 is considered a separate program and requires a separate sign-up, even if the producer signed up for and received payment under CFAP 1. Producers who did not sign up for CFAP 1 are eligible to sign up for CFAP 2.

Global Dairy Trade index lower

The index of Global Dairy Trade (GDT) dairy product prices fell 2% in the latest auction, held Nov. 3. A price summary of individual product categories follows:

  • Skim milk powder was down 4.4% to $2,722 per metric ton (MT).
  • Butter was up 3.9% to $3,822 per MT.
  • Whole milk powder was down 2% to $2,985 per MT.
  • Cheddar cheese was down 0.8% to $3,786 per MT.

The next GDT auction is Nov. 17.

Ohio dairy risk management webinar begins Nov. 5

Ohio dairy leaders are kicking off a three-part miniseries of webinars to help producers mitigate risks in the year ahead.

Organizers from Ohio State University’s (OSU) College of Food, Agricultural and Environmental Sciences, in partnership with the Ohio Dairy Producers Association, are hosting the miniseries via Zoom. All sessions are free and will be offered from noon-1 p.m. (Eastern time zone). Sessions will also be recorded and posted on the OSU Extension webpage under past events.

Dates and topics include:

  • Nov. 5: Mark Stephenson, director of dairy markets and policy at the University of Wisconsin, will explain how milk is priced and discuss factors that led to this years’ unprecedented negative producer price differentials (PPDs) and volatile milk prices.

  • Nov. 17: William Loux, director of global trade analysis at the U.S. Dairy Export Council, and Mike McCully, owner and CEO of The McCully Group, will offer domestic and international dairy supply and demand outlooks.

  • Nov. 24: OSU Extension educators Chris Zoller and Jason Hartshuh, along with Kenny Burdine, University of Kentucky Extension livestock economist, will provide an overview of risk management tools, the DMC and Dairy Revenue Protection (Dairy-RP) programs, and futures and options.

Click here for the complete program and to register.

California funds more dairy methane reduction projects

The California Department of Food and Agriculture (CDFA) awarded nearly $25.4 million in funding for methane reduction projects across the state.

The latest round of funding covers 12 Dairy Digester Research and Development Program (DDRDP) projects, with grants totaling $16.5 million and 13 Alternative Manure Management Program (AMMP) projects, with grants totaling $8.9 million. The projects include $32 million in matching funds.

The collective projects will reduce an estimated 191,360 metric tons of greenhouse gases per year.

Since 2015, 235 dairy families in California have participated and contributed to methane reduction efforts through the AMMP and DDRDP programs. The programs are part of the California Climate Investments, a statewide cap-and-trade program.

Darigold expanding organic market

Darigold Inc. is expanding its organic dairy processing capabilities and products and adding to its pool of organic dairy producers in the northwest U.S.

The company announced the release of Darigold Northwest Organic Milk, initially sold at select Costco warehouses, with plans for further distribution at other retailers in the coming months. The co-op is also distributing its flagship organic product, lactose-free, low-sugar and high-protein Darigold FIT Organic Milk through Costco. The co-op’s entry into the branded organic segment has also included Farmer’s Reserve butter.

As a part of this growth, Darigold is adding organic segregation and processing capabilities to a fourth plant.

Headquartered in Seattle, Washington, Darigold is the marketing and processing subsidiary of Northwest Dairy Association (NDA), which is owned by over 350 dairy farm families in Washington, Oregon, Idaho and Montana. Darigold handles approximately 10 billion pounds of milk annually, operating 11 plants throughout the Northwest.

Central Plains Dairy Expo scheduled

The Central Plains Dairy Association (CPDA) board and staff continue to plan for the 2021 Central Plains Dairy Expo (CPDE) to be an in-person event. The event is scheduled for March 24-25, 2021, in Sioux Falls, South Dakota.

The 2021 expo will include activation of ASM Global’s VenueShield – an advanced environmental hygiene protocol. VenueShield reduces physical touch points, increases sanitization and cleanliness, and provides various health monitoring guidelines and services. Capacity limits will be set for session rooms, as well as rooms being expanded to accommodate social distancing.

With health and safety being the top priority, CPDA board members decided to forgo holding a concert in conjunction with the next CPDE.

Registration is now open and is free for all dairy producers. All attendees are strongly advised to register online at least 30 days prior to the event.

Room reservations at Sheraton Sioux Falls & Convention Center, if you plan to stay overnight. A link to the reserved block of room reservations at the Sheraton Sioux Falls & Convention Center can be found here.

I-29 Moo University adds to dairy podcast offerings

The I-29 Moo University Dairy Consortium and extension dairy specialists from five participating states along the Interstate 29 corridor are expanding dairy information delivery, utilizing twice-monthly podcasts.

Past podcasts have covered federal dairy programs impacting dairy farmers, as well as on-farm management topics, including heat stress, forage preservation and sampling, feeding strategies, animal activism, silage safety, risk management tools, reproduction and quality assurance programs.

The podcasts, also archived for later viewing, are geared toward dairy producers of all sizes. Each episode is about 30 minutes and is available on the I-29 Moo University website.

I-29 Moo University is a consortium of extension dairy specialists from the land-grant universities in Iowa, Minnesota, Nebraska, North Dakota and South Dakota.

Dairy Download: The rural-urban divide

Is there a rural and urban divide and, if so, are leaders in agriculture and rural America working to close the gap? Blimling and Associates’ Phil Plourd and Kathleen Wolfley share insights and interviews on that topic in the latest Dairy Download podcast, produced by the International Dairy Foods Association (IDFA).

In the discussion, Dee Davis, founder and president of the Center for Rural Strategies and chair of the Rural Assembly Steering Committee, said he believes rural and urban Americans are not so different in their basic needs and outlook.

U.S. Rep. Congressman Collin Peterson (D-Minnesota), chair of the House Committee on Agriculture, said bipartisanship is becoming increasingly important if rural areas are to get adequate representation on federal policy.  end mark

Dave Natzke