California Ag Network

Category: Dairy Industry

  • Global Demand for High-Protein Whey Soars, but is Growth Sustainable?

    The COVID-19 pandemic has fundamentally altered the global market for high-protein whey products, which have now entered the mainstream as a super food for health-conscious consumers. Global demand for high-protein whey has grown exponentially during the pandemic as consumers around the world sharpened their focus on health and nutrition.

    As the global leader in high-protein whey production and exports, the U.S. stands to benefit from the increased demand. Despite record cheese production in the U.S., global supplies of whey products remain tight which has resulted in significant price premiums for high-protein whey products.

    According to a new report from CoBank’s Knowledge Exchange, whey prices are expected to persist at historically strong levels until new cheese and whey processing capacity comes online over the next five years. In the longer term, further-processed fractionated whey protein products are expected to become the bigger value-drivers of the whey stream.

    “High-protein whey products come with risks of increasing price volatility that’s endemic of niche and diverse product mixes with limited market players,” said Tanner Ehmke, lead dairy economist with CoBank. “To meet the growing demand for diverse whey products while covering the risk of higher volatility, dairy processors will need to invest in processing technologies that allow flexibility in production.”

    While high-protein whey will continue to grow in demand and offer higher returns, low-protein whey will still offer the appeal of stability and price hedging for processors, added Ehmke. The dairy industry of the future will need to meet growing demand for low-protein whey for both human consumption and animal feed and for high-protein whey for consumer products.

    Total U.S. cheese and whey processing capacity in the U.S. is expected to increase by an estimated 10% in the next 5 years. Increasing whey production means an increasing commoditization of all whey products, including high protein concentrates and isolates. 

    Whey production will become increasingly stratified across products and prices, requiring processors to invest in processing technology to allow for flexibility in production for a variety of whey products spanning dry whey to fractionated whey. The high costs of membrane technology required for further processing of whey will limit growth opportunities to larger cheese and whey processors that have economies of scale.

    Plant-based alternative sources of protein like soy protein and pea protein are not expected to disrupt the high protein whey market due to nutritional deficiencies compared to whey.

    Watch a video synopsis and read the report, COVID-19 Spiked Demand for High-Protein Whey, but is Growth Sustainable?

    About CoBank

    CoBank is a $170 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 76,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and maintains an international representative office in Singapore.

  • Bring Back the Fat in Dairy

    Fashion trends from the 1990s may be making a comeback, but 1990’s dietary trends should definitely stay out of style. In that decade, fat was a four-letter word and non-fat and low-fat versions of foods were promoted over their full-fat counterparts, with the hope of improving heart health and reducing waist lines. We now know that trading fat for carbohydrates did not make Americans healthier (or thinner), but old habits die hard. Thirty years later, the influence of this fat-free mania on food choices and dietary recommendations is still evident. The most recent edition of the Dietary Guidelines for Americans recommends non-fat and low-fat milk, yogurt, and cheese to limit saturated fat intake. But far from clogging arteries and increasing cholesterol, a growing body of scientific studies suggests dairy-derived saturated fats could be beneficial for cardiovascular health.

    The most recent vindication for dairy fats comes from data collected as part of the Women’s Health Initiative, one of the largest studies to address risk factors for cardiovascular disease. Detailed dietary data and blood samples were collected from over 35,000 post-menopausal women aged 50–79 from across the United States to test the hypothesis that dairy foods are associated with blood biomarkers commonly used to assess risk for cardiovascular disease and diabetes. These included markers for lipid metabolism (total triglycerides, low-density lipoprotein, high-density lipoprotein, and total cholesterol), inflammation (C-reactive protein, IL-6, IL-10, and TNF-α), and glucose metabolism (glucose and insulin-related factors).

    Eating more dairy, including full-fat milk, cheese, and yogurt, was associated with a favorable biomarker profile. Going against the dogma that saturated fats are bad for heart health, higher intakes of full-fat dairy, cheese, and yogurt were associated with lower levels of blood triglycerides. And women with higher intakes of total dairy (all levels of fat), low-fat dairy, total cheese, and total yogurt also had lower levels of glucose, insulin, and two markers of inflammation (C-reactive protein and IL-6).

    Of all the dairy foods included in the analysis [8], yogurt seemed to have a unique influence on biomarker profiles. Increased yogurt consumption was associated with the largest percentage decrease in blood glucose, insulin, C-reactive protein, and IL-6 concentrations, supporting previous research on the protective effects of yogurt on inflammation and diabetes. Additionally, yogurt intake—of all fat levels—was associated with an increase in high-density lipoprotein (HDL) cholesterol, and a decrease in total triglycerides and low-density lipoprotein (LDL) cholesterol. (For those needing a quick recap on cholesterol, LDL are proteins that move fat into the walls of the arteries and can lead to plaque, whereas HDL remove fats from the artery walls. Generally speaking, higher LDL increases the risk for cardiovascular disease, whereas lower LDL and lower triglycerides decrease the risk).

    These additional effects of yogurt compared with other dairy foods are, at least in part, because yogurt is fermented and contains probiotic bacteria, like Lactobacillus. As yogurt is digested, these beneficial bacteria increase the concentration of biologically-active proteins, which then, in turn, could potentially influence physiological processes like glucose metabolism, lipid metabolism, and inflammatory reactions.

    Cheese, another fermented dairy food, was also associated with favorable profiles. Looking at just yogurt and cheese, one could argue that fermented dairy might offer health benefits despite their saturated fat content. But the finding that full-fat dairy intake was associated with lower triglycerides, as well as lower insulin and glucose concentrations, suggests that dairy-derived saturated fats could actually be mediating these associations rather than simply riding the coattails of probiotics or other nutrients in dairy.

    Milk fats are biologically different from those found in bacon or biscuits. Fats in milk are packaged in membrane-bound bubbles called globules (and are referred to as the milk fat globule membrane, or MFGM). Dairy fatty acids within the MFGM are shorter in carbon chain length relative to fatty acids from other animal fats, which could positively affect cholesterol by raising HDL levels. And new research suggests the MFGM interacts directly with microorganisms in the gut, which could then influence human physiology in much the same way as probiotics from fermented foods.

    It seems counterintuitive that saturated fats could be heart healthy. After all, we have been inundated with dietary advice to limit or avoid them for decades precisely because of their association with cardiovascular disease. But it might be time for dietary advice to join the 21st century and focus on the biological effects of foods rather than nutrients. — By Lauren Milligan Newmark, Ph.D., International Milk Genomics Consortium

  • Despite Supply Chain Challenges, Progress Made in Prioritizing U.S. Dairy Exports

    The International Dairy Foods Association (IDFA), the Port of Los Angeles, and CMA CGM — a world leader in shipping and logistics — say the groups are working together to prioritize exports of U.S. dairy products and report significant progress moving cargo to Southeast Asia, South America, and other export destinations. In January, the groups formed the Dairy Exports Working Group to identify and address supply chain issues hampering U.S. dairy product exports. Ongoing discussions, planning, and problem-solving among the organizations have yielded breakthroughs that could lead to long-term solutions for U.S. dairy exports, including moving cargo from the interior of the United States to the West Coast.

    Leaders of the Dairy Exports Working Group include Michael Dykes, D.V.M., President and CEO of IDFA; Gene Seroka, Executive Director of the Port of Los Angeles; and Ed Aldridge, President of CMA CGM and APL North America.

    The Dairy Exports Working Group reports the following progress to date:

    • CMA CGM’s acquisition of Fenix Marine Services (FMS) in the Port of Los Angeles has already led to increased control of cargo, earliest return dates, booking dates, and other benefits.
    • Additional space and equipment allocated to an IDFA member for 120 containers per week with the capability to increase to 300 containers per week via CMA CGM vessels through the Port of Los Angeles—an increase of 150%.
    • Prioritizing U.S. dairy exports for shipment to destinations in East and Southeast Asia, especially China, Vietnam, Thailand, and South Korea.
    • Working to coordinate dedicated rail service to the West Coast carrying up to 220 containers of U.S. dairy products for export and expanded opportunities for U.S. dairy exporters to utilize rail service through CMA CGM’s rail partnerships.
    • CMA CGM has diverted some ships from Los Angeles to other West Coast ports to collect U.S. dairy products for export.
    • Improved communication and transparency between CMA CGM and dairy exporters without disrupting existing relationships with other ocean carriers (i.e., freight forwarders).

    “I want to thank CMA CGM and the Port of Los Angeles for their transparency and commitment to produce real results and achieve progress for U.S. dairy exporters,” said Dykes of IDFA. “Last week, we learned that U.S. dairy exports reached a record $7.66 billion in 2021 despite serious supply chain issues, demonstrating surging demand for U.S. dairy from customers around the world. If the United States is to become the world’s leading supplier of nutritious, affordable, sustainable dairy products, we need partners like CMA CGM and Port of Los Angeles willing to roll up their sleeves and move our cargo. IDFA members are pleased with the early results of the Dairy Exports Working Group and we commit to working even harder with new partners throughout the supply chain to find market-based solutions for U.S. dairy exports. Let’s replicate this blueprint with other shippers and ports to enhance American competitiveness.”

    “I’m extremely pleased with the results and the collaboration we’ve achieved in just one month,” said Seroka of the Port of Los Angeles. “Thanks to CMA CGM and the IDFA, we’ve moved the needle on several important fronts. While there’s much more work to do, I’m proud of this effort to get American exporters back into the international game.”

    Aldridge of CMA CGM and APL North America, said, “At CMA CGM, we believe teamwork, communication and collaboration yield results. The Dairy Exports Working Group is a perfect example of the great things that can be accomplished quickly when different parts of the supply chain get together and brainstorm on possibilities. In the end, you end up with solutions that work for everyone.”

    “We are grateful for CMA’s enthusiasm to extend the successful dairy exports pilot implemented in the Port of Los Angeles to ports in Portland and Seattle-Tacoma to bring much needed relief to Northwest dairy and its rural economy,” said Stan Ryan, President and CEO of Darigold, Inc.

    Greater predictability and reliability in the U.S. dairy supply chain, which has been severely strained for months, is essential to the current and future success of the U.S. dairy industry. The current situation is costing U.S. dairy companies hundreds-of-millions of dollars and damaging the credibility and reputation of U.S. dairy exporters among global customers. For example, dairy exporters are having to airfreight product more than ever before, sometimes at 20 times the cost, to meet overseas contracts. At the same time, U.S. warehouses are full or facing near capacity levels due to delays.

    IDFA is working to expand the Dairy Exports Working Group to additional dairy companies, ports, carriers, and supply chain stakeholders, to develop market-driven, win-win solutions that will create new business, help alleviate the empty container problem, and expedite the flow of American dairy exports to our customers.

    IDFA has also been advocating with the U.S. Department of Agriculture, the White House, the U.S. Department of Transportation, and other agencies to raise awareness and ensure the viability of America’s dairy industry. As part of the Supply Chain Optimization and Resilience Coalition, IDFA is also supportive of leveraging digital tools to enhance supply chain transparency for dairy and the success of the Dairy Exports Working Group, including deployment of a national freight data portal. IDFA is committed to seeking other innovative and collaborative solutions to supply chain difficulties hampering U.S. dairy exports, as determined by the IDFA Supply Chain Task Force led by IDFA Vice President of Trade Policy and International Affairs Becky Rasdall and Director of Legislative Affairs Donald Grady.

    For more information on the Dairy Exports Working Group, please contact info@idfa.org.

    The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation’s dairy manufacturing and marketing industry, which supports more than 3.3 million jobs that generate $41.6 billion in direct wages and $753 billion in overall economic impact. IDFA’s diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent 90 percent of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients produced and marketed in the United States and sold throughout the world. Delicious, safe and nutritious, dairy foods offer unparalleled health and consumer benefits to people of all ages.

  • Dairy Checkoff Collaborates with Mayo Clinic to Advance Research & Consumer Outreach

    The dairy checkoff has entered a five-year collaboration with Mayo Clinic to explore research and consumer outreach efforts to improve public health and advance dairy’s benefits.

    The checkoff’s memorandum of understanding with Mayo entails Dairy Management Inc. (DMI), National Dairy Council (NDC) and the Innovation Center for U.S. Dairy (IC).

    “This is a milestone moment for dairy farmers who made this possible through their century-long commitment to research and dairy nutrition,” said DMI CEO Barbara O’Brien. “This doesn’t happen without the strong national reputation farmers have built through National Dairy Council.

    Dairy Management Inc CEO Barbara O’Brien

    “This is a powerful collaboration that shows how the dairy checkoff is expanding our scientific network to bring a modernized complement to our legacy and move us further into the future.”

    The collaboration will be incorporated across Mayo Clinic’s campuses in Rochester, Minn., Scottsdale and Phoenix, Ariz., and Jacksonville, Fla.

    Three focus areas

    Teams comprised of NDC scientists and registered dietitians, Mayo Clinic physicians and health professionals as well as Innovation Center for U.S. Dairy experts will lead initiatives focused on three areas:

    • Research to discover how dairy foods, particularly whole milk dairy, impacts cardiovascular health and metabolic conditions. Other potential research areas include dairy’s role on calm, sleep, digestive health and immunity.
    • Communicating dairy’s strong body of evidence, new research and insights with the scientific community, health and wellness professionals and consumers.
    • Exploring dairy’s role through digital platforms to propel people into a new way of precisely managing their wellness.

    In addition, co-created content will help debunk dairy myths and help consumers maintain confidence in dairy foods, farms and businesses.

    Marilyn Hershey, Dairy Management Inc Chair

    “This collaboration illustrates the checkoff’s consumer-first focus and our commitment to leading with credible science,” said Marilyn Hershey, a Pennsylvania dairy farmer and chair of DMI.

    For information about the dairy checkoff, visit www.usdairy.com.

    About Mayo Clinic

    Mayo Clinic is a nonprofit organization committed to innovation in clinical practice, education and research, and providing compassion, expertise and answers to everyone who needs healing. Visit the Mayo Clinic News Network for additional Mayo Clinic news.

    About Dairy Management Inc.

    Dairy Management Inc.™ (DMI) is funded by America’s 31,000 dairy farmers, as well as dairy importers. Created to help increase sales and demand for dairy products, DMI and its related organizations work to increase demand for dairy through research, education and innovation, and to maintain confidence in dairy foods, farms and businesses. DMI manages National Dairy Council and the American Dairy Association, and founded the U.S. Dairy Export Council, and the Innovation Center for U.S. Dairy.

    About Innovation Center for U.S. Dairy®

    Innovation Center for U.S. Dairy® is a leadership forum that brings together the dairy community and third parties to address the changing needs and expectations of consumers and customers. Initiated in 2008 by dairy farmers through the dairy checkoff, Innovation Center leaders and members collaborate on important areas like the environment, nutrition and health, animal care, food safety, and community contributions. Through the Innovation Center, the U.S. dairy community demonstrates its commitment to continuous improvement from farm to table, striving to ensure a socially responsible and economically viable dairy community. For more information, visit usdairy.com/about-us/innovation-center.

    About National Dairy Council®

    National Dairy Council® (NDC) is the non-profit organization dedicated to bringing to life the dairy community’s shared vision of a healthy, happy, sustainable world – with science as the foundation. NDC provides science-based nutrition information to, and in collaboration with, a variety of stakeholders committed to fostering a healthier nation, including health and wellness professionals, educators, school nutrition directors, academia, industry, consumers and media. NDC has taken a leadership role in promoting child health and wellness through programs such as Fuel Up to Play 60. Developed by NDC and the National Football League (NFL), Fuel Up to Play 60 encourages youth to consume nutrient-rich foods and achieve at least 60 minutes of physical activity every day.

  • Real CA Milk Spotlights Foodservice Innovation With 2022 Events For Professional Chefs

    The Foodservice Division of the California Milk Advisory Board (CMAB) today announced the kickoff date for the 4th Annual Real California Pizza Contest, the return of the CADairy2Go competition and the rollout of a new culinary event focusing on Cal-Mex to round out its foodservice events for 2022.

    The 4th annual Real California Pizza Contest, a search for the best pizza recipes using cow’s milk cheeses from California, gets underway on March 1st. Professional chefs and pizzaiolos from throughout the U.S, can enter their innovative recipes from March 1 through April 24, 2022, for a chance to make it to the bake-off final on June 22, 2022, in Napa, Calif. and compete for up to $25,000 in prize money.

    The CADairy2Go Invitational is inspired by chefs and foodservice operators who made quick, creative pivots to adjust their menus for the takeout and delivery model during the disruption caused by the pandemic. Now in its 2nd year, the event will feature culinary professionals representing a variety of foodservice backgrounds, such as major restaurant chains, independent restaurants, ghost kitchens and food trucks who will gather in October to compete for a chance at up to $5,000 for their innovative To-Go recipes.

    The inaugural Cal-Mex Invitational, scheduled for August, captures creations from chefs who specialize in the culinary and flavor fusion of California and Mexican cuisines.

    “Cheese is at the heart of culinary innovation – from creative pizzas to flavorful to-go and fusion dishes. As the leading producer of Hispanic-style cheese and dairy products, we’re excited to add the Cal-Mex Invitational to our foodservice outreach program and to see what the chef’s develop,”

    said Mike Gallagher, Business and Market Development Consultant for the CMAB. “These competitions offer a tremendous opportunity to partner with culinary professionals to spotlight their creativity using our sustainably sourced Real California dairy products.”

    California is a reliable, consistent source of sustainable dairy products used by chefs throughout the world. As the nation’s largest dairy state, California boasts an impressive lineup of award-winning cheesemakers and dairy processors, that are helping to drive dining innovation.

    California leads the nation in milk production and is responsible for producing more butter, ice cream and nonfat dry milk than any other state. The state is the second-largest producer of cheese and yogurt. California milk and dairy foods can be identified by the Real California Milk seal, which certifies they are made with milk from the state’s dairy farm families.

    About Real California Milk/the California Milk Advisory Board

    The California Milk Advisory Board (CMAB), an instrumentality of the California Department of Food and Agriculture, is funded by the state’s dairy farm families who lead the nation in sustainable dairy farming practices. With a vision to nourish the world with the wholesome goodness of Real California Milk, the CMAB’s programs focus on increasing demand for California’s sustainable dairy products in the state, across the U.S. and around the world through advertising, public relations, research, and retail and foodservice promotional programs.

    The Foodservice Division of the CMAB supports foodservice operators and distributors that use Real California dairy products. The CMAB offers marketing and promotional support for foodservice operators that purchase dairy products with the Real California Milk seal, which means they are made with 100 percent milk from California’s more than 1,100 family dairy farms, using some of the most sustainable dairy practices in the nation.

    For more information on sourcing cheese from California, contact the foodservice team at 209.883.6455 (MILK),businessdevelopment@cmab.net or RealCaliforniaMilk.com/Foodservice, LinkedIn, Facebook, Instagram and YouTube.

  • FARM Animal Care Program Announces Version 5 Survey Results

    The National Dairy Farmers Assuring Responsible Management (FARM) Program today shared the results of its Animal Care Version 5 Development Survey. The report summarizes stakeholder perspectives on animal care issues of importance and captures ideas and levels of support for potential changes to the industry’s animal care standards.

    “We are pleased with the level of engagement and the quality of feedback that we received from dairy farmers, veterinarians and other industry representatives that will help inform the development of FARM Animal Care Version 5,” said Emily Yeiser Stepp, vice president of the FARM Program. “We remain committed to ensuring updates made to the program reflect the needs and goals of the entire dairy supply chain.”

    FARM Animal Care is updated once every three years to ensure relevance to current industry best management practices and scientific research related to on-farm animal care. The survey received 682 responses from farmers, veterinarians, and dairy-industry leaders nationwide.

    Stakeholders identified care for sick animals, calves, and non-ambulatory cattle as dairy’s greatest priority to maintain focus on for Version 5. The survey also showed general support for making minor modifications and adding clarity to the program while avoiding large overhauls. Most survey respondents, including farmers, showed they would willingly support small changes to better address animal care vulnerabilities. Respondents also were in consensus that standards that aren’t direct measures of good animal welfare practices should be updated to prioritize an outcomes-based approach.

    The results of this survey will be used to inform all levels of governance of FARM and will help guide ongoing discussions about the development of Version 5. The National Milk Producers Federation Board of Directors provide final approval on FARM standards, which will come into effect starting July 1, 2024. For more information, visit the Version 5 development page.

    The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies.

    Created by the National Milk Producers Federation in partnership with Dairy Management Inc, the National Dairy FARM (Farmers Assuring Responsible Management) works with all U.S. dairy farmers, co-ops and processors, to demonstrate to dairy customers and consumers that the dairy industry is taking the very best care of cows and the environment, producing safe, wholesome milk and adhering to the highest standards of workforce development.

  • Deadline Extended for U.S. Dairy Sustainability Awards Nominations

    For more than a decade, the U.S. Dairy Sustainability Awards program has been celebrating dairy farms, businesses and partnerships for their dedication to advancing sustainability across the industry.

    The nominations period deadline for the 2022 U.S. Dairy Sustainability Awards has been extended to March 4.

    The farmer-founded Innovation Center for U.S. Dairy, which unites the industry through a shared social responsibility platform, launched the awards to honor exceptional farms, businesses and partnerships for their socially responsible, economically viable and environmentally sound practices and technologies that have a broad and positive impact.

    Nearly 80 farms, business and partnerships have been celebrated as winners and honorable mentions over the past 10 years. They serve as examples of the dairy industry’s commitment to social responsibility, including the 2050 Environmental Stewardship goals announced in 2020. Set by the Innovation Center through extensive industry and stakeholder collaboration, the goals are to achieve GHG neutrality, optimize water usage and improve water quality by 2050.

    “Sustainability Award winners epitomize the best of dairy sustainability and ingenuity, providing useful case studies for the dairy community as it moves forward to meet industrywide commitments, including dairy’s 2050 Environmental Stewardship goals,” said Barbara O’Brien, president and CEO of Dairy Management Inc. and the Innovation Center for U.S. Dairy. “We’re excited to see what innovations rise to the top with this year’s nominations.”

    Award submissions can be made at www.usdairy.com/2022Awards. There is no fee to enter. All farms, companies and organizations involved in the U.S. dairy industry and engaged in collaborative and sustainable dairy-related practices are eligible to submit nominations in the following categories:

    Dairy Farm Sustainability

    The Outstanding Dairy Farm Sustainability category recognizes farmers for practices and technologies that demonstrate exemplary economic, environmental and/or social benefits and continuous improvement in dairy production. Successful nominations take a holistic approach to sustainability and provide replicable results that can advance on-farm dairy leadership and inspire positive change industrywide.

    Processing and Manufacturing Sustainability

    The Outstanding Dairy Processing and Manufacturing Sustainability category recognizes demonstrated steps to innovate, measure and communicate progress within the triple bottom line of sustainability. It provides replicable success stories to benefit the dairy community and to inform continuous improvement industrywide.

    Community Impact

    The Community Impact category commends efforts that improve lives and communities through positive impacts on health and wellness, hunger relief, workforce development, community volunteering and investment, and/or environmental stewardship. Successful nominations demonstrate how farms, cooperatives, processors or other dairy community stakeholders (either collaboratively or as a single entity) develop practical and effective solutions to shared challenges and goals of the communities in which they live and work.

    Supply Chain Collaboration

    The Supply Chain Collaboration category celebrates collaborative and market-based partnerships to demonstrate that truly sustainable outcomes come when all parts of the supply chain are involved in finding solutions. This award highlights farm-to-fork engagement through a collaborative farm, cooperative processor, and/or retail/foodservice partnership to benefit all involved and to provide best-in-class examples of sustainable dairy supply chains.

    Finalists will be notified in April and the winners will receive:

    • An official commemorative plaque
    • Recognition via public relations and other promotional activities, including at an awards ceremony.
    • Opportunities to serve as a Dairy Sustainability Ambassador at key events
    • Use of the U.S. Dairy Sustainability Awards logo for marketing purposes for up to one year
    • Case studies of their stories featured on www.usdairy.com/awards

    An independent panel of judges evaluates all nominations based on measurable results, demonstrated innovation and learning, and the potential for other dairy farms and businesses to adopt the practices.

    About the Innovation Center for U.S. Dairy

    The Innovation Center for U.S. Dairy® is a leadership forum that brings together the dairy community and third parties to address the changing needs and expectations of consumers and customers. Initiated in 2008 by dairy farmers through the dairy checkoff, Innovation Center leaders and members collaborate on important areas like the environment, nutrition and health, animal care, food safety, and community contributions. Through the Innovation Center, the U.S. dairy community demonstrates its commitment to continuous improvement from farm to table, striving to ensure a socially responsible and economically viable dairy community. For more information, visit www.usdairy.com/about-us/innovation-center

  • Deadline Extended to Enroll in 2022 Dairy Margin and Supplemental Coverage

    USDA has extended the deadline to enroll in Dairy Margin Coverage (DMC) and Supplemental Dairy Margin Coverage (SDMC) for program year 2022. The deadline to apply for 2022 coverage is now March 25, 2022. As part of the Biden-Harris Administration’s ongoing efforts to support dairy farmers and rural communities, USDA’s Farm Service Agency (FSA) opened DMC and SDMC signup in December 2021 to help producers manage economic risk brought on by milk price and feed cost disparities.

    “Over the past two years, American dairy farmers have faced unprecedented uncertainty, from the ongoing pandemic to protracted natural disasters. As producers continue to manage these interconnected challenges, FSA has tools at the ready to provide critical support,” said FSA Administrator Zach Ducheneaux. “We are encouraging dairy operations to take advantage of the extended deadline and join the 8,969 operations that have already enrolled for 2022 coverage. At 15 cents per hundredweight at the $9.50 level of coverage, DMC is a very cost-effective risk management tool for dairy producers.”

    Enrollment for 2022 DMC is currently at 55% of the 2021 program year enrollment. Producers who enrolled in DMC for 2021 received margin payments each month, January through November for a total of $1.2 billion, with an average payment of $60,275 per operation.

    The DMC program, created by the 2018 Farm Bill, offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer. Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. Now, they will be able to retroactively receive payments for that supplemental production. Additionally, FSA updated how feed costs are calculated, which will make the program more reflective of dairy producers’ actual expenses.

    Supplemental DMC Enrollment

    Eligible dairy operations with less than 5 million pounds of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings, which will result in additional payments. Producers will be required to provide FSA with their 2019 Milk Marketing Statement.

    Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.

    Supplemental DMC will require a revision to a producer’s 2021 DMC contract and must occur before enrollment in DMC for the 2022 program year. Producers will be able to revise 2021 DMC contracts, apply for 2022 DMC, and enroll in other FSA programs by contacting their local USDA Service Center.

    DMC 2022 Enrollment

    After making any revisions to 2021 DMC contracts for Supplemental DMC, producers can sign up for 2022 coverage. DMC provides eligible dairy producers with risk management coverage that pays producers when the difference between the price of milk and the cost of feed falls below a certain level. In 2021, based on data to date, DMC payments have triggered for January through November for more than $1 billion.

    For DMC enrollment, producers must certify with FSA that the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee. The fee is waived for farmers who are considered limited resource, beginning, socially disadvantaged, or a military veteran. To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the online dairy decision tool.

    Updates to Feed Costs

    USDA has also changed the DMC feed cost formula via final rule published on December 13, 2021, to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay.  FSA now calculates payments using 100% premium alfalfa hay rather than 50%. In December 2021, following publication of the new feed cost policy, $102 million was paid to producers as a result of the revised high quality alfalfa feed cost formula.

    The amended feed cost formula will make DMC payments more reflective of actual dairy producer expenses.

    More Information

    For more information, producers can visit the FSA dairy programs webpage, or contact their local USDA Service Center. To locate their local FSA office, producers can visit farmers.gov/service-center-locator. Service Center staff continue to work with agricultural producers via phone, email, and other digital tools. Due to the pandemic, some USDA Service Centers are open to limited visitors.  Additionally, more information related to USDA’s response and relief for producers can be found at  farmers.gov/coronavirus

  • Record US Dairy Exports in 2021, Assistance Still Needed to Ease Supply Chain Challenges

    According to USDA today, 2021 U.S. farm and food products to the world totaled $177 billion, topping the 2020 total by 18 percent and eclipsing the previous record set in 2014 by 14.6 percent. Moreover, U.S. agricultural exports logged 230.7 million metric tons of volume in 2021, another record.

    “Today’s export figures demonstrate how the United States is poised to become the world’s leading supplier of dairy products thanks to the resilience and innovation of American dairy exporters and dairy foods companies,” shared Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association.  “Consumers in the United States and around the world continue to demand more U.S. dairy because we provide an assortment of delicious, nutritious, affordable, and sustainable dairy products. From high-value whey to award-winning cheeses, from milk powders used to make life-saving products for children and adults to safe and nutritious ESL milk, U.S. dairy is known throughout the world for quality and reliability.

    Dykes continued, “As we dig into the export data released today, we see that U.S. dairy exports hit a record $7.66 billion in 2021, outperforming the previous record of $7.08 billion achieved in 2014. Volume also set a new high, reaching 2.69 million metric tons to outpace the previous record of 2.44 million metric tons set in 2020.

    “Outstanding results like (this) in U.S. dairy exports don’t happen overnight. They’re the result of a lot of hard work by our industry to build demand for U.S. dairy products around the world and harness the opportunities that past trade deals – from U.S. free trade agreements to the World Trade Organization’s Uruguay Round – have made available,” said Krysta Harden, president and CEO of the U.S. Dairy Export Council. “We look forward to continuing to build on this success further and to ensure we have the right trade and export supply chain policy tools to support that growth.”

    “The record demand for U.S. milk overseas in 2021 is a testament to the hard work and dedication of U.S. dairy farmers and the entire industry to making sure our high-quality, nutritious products feed the world as well as Americans,” said Jim Mulhern, president and CEO of the National Milk Producers Federation. “As we’ve said many times, exports represent the next frontier for U.S. dairy – it’s gratifying to see decades of effort bear fruit and only makes us more excited about the future successes ahead.”

    “While today’s news is certainly cause for celebration among U.S. food and agriculture, exporters throughout the dairy industry remain severely challenged by supply chain challenges that have hampered our ability to export more product, fulfill obligations to customers, and meet the world’s growing demand for U.S. dairy,” Dykes clarified.  “According to industry estimates, export delays and supply chain challenges have cost the dairy industry more than $1.5 billion in lost opportunities. Through the IDFA Supply Chain Task Force and Dairy Exports Working Group, IDFA members and partners continue to look for long-term solutions to help U.S. dairy exports reach greater heights in the months and years ahead. We encourage the Biden Administration to remain active in removing bottlenecks, investing in infrastructure, and looking at public-private solutions to ease supply chain challenges.”

  • California Dairy Producer Shares Sustainability Message at House Ag Hearing

    National Milk Producers Federation (NMPF) Board of Directors member and California dairy producer Melvin Medeiros told a House Agriculture subcommittee that dairy farmers have made significant sustainability gains and stand ready to serve environmental solutions to make even further progress.

    “U.S. dairy farmers are environmental stewards. We tend with great care to our land and water to improve the resources on our farms and ensure future generations can carry on our important work of feeding the nation and the world,” said Medeiros, a member of the Dairy Farmers of America cooperative who serves on NMPF’s Executive Committee, in a hearing of the House Agriculture Committee’s Subcommittee on Livestock and Foreign Agriculture.

    “We value a proactive approach to sustainability, which can take many different forms, and we have adapted as agricultural practices and technologies have evolved and improved over time,” said Medeiros, who owns and operates a 1,600-cow dairy near Merced, CA. “Farmers place a high importance on land and water stewardship, and our family farm-owners continue to perfect these practices through sustainable innovations on the farm.”

    Medeiros in his testimony at the virtual hearing cited research showing that producing a gallon of milk in 2017 required 30% less water, 21% less land, had a 19% smaller carbon footprint, and produced 20% less manure than it did in 2007. He also cited dairy’s Net Zero Initiative as an example of proactive, producer-led agricultural leadership in reducing greenhouse gas emissions.

    Medeiros also asked lawmakers to support policy improvements that would assist producers in sustainability efforts, such as enhanced funding for conservation programs with greater emphasis on areas like feed and manure management, an investment tax credit to cover the upfront capital costs of digesters to help reduce methane emissions, and expedited approval of innovative animal feed additives that can significantly diminish enteric emissions. NMPF has previously hailed the landmark conservation funding increases in the Build Back Better Act and hopes that Congress will provide the funding needed to bolster these critical programs.

    NMPF worked closely with Medeiros and DFA to help strongly spotlight the dairy industry’s priorities and concerns during the hearing.

    “NMPF and the dairy producers it represents are grateful to the House Agriculture Committee for inviting Melvin to highlight dairy’s commitment to a more sustainable future,” said Jim Mulhern, President and CEO of NMPF. “But as he noted, improving sustainability will also require improving public policy to aid farmers in their critical stewardship mission. We stand ready to partner with Congress to get the job done.”

    About the National Milk Producers Federation

    The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.