California Ag Network

Category: Dairy Industry

  • USDA Dairy Roundtable Delivers Record Exports to Indonesia

    The USDA-sponsored “U.S.–Indonesia Dairy Roundtable” event, held in Jakarta on September 30, 2019, has delivered record results for U.S. dairy exports. In the year since the seminal event concluded, U.S. exports of dairy products to Indonesia surged to more than 160,000 metric tons, valued at more than $346 million. Moreover, U.S. market share of Indonesia’s nearly $1.4 billion dairy import market dramatically increased from 14 percent to 25 percent. In calendar year 2020, as of September, the U.S. had already exported a record volume of dairy products to Indonesia and is on track to reach a record value by the end of the year. The event was an excellent example of FAS collaboration with host government officials, local importers, and U.S. industry stakeholders to increase U.S. exports.

    Background

    Held at the Grand Hyatt Ballroom in Jakarta on September 30, 2019, the U.S.–Indonesia Dairy Roundtable was a groundbreaking event designed to increase trade in dairy products between the U.S. and Indonesia. Led by USDA Undersecretary for Trade and Foreign Affairs, Ted McKinney, U.S. Ambassador to Indonesia, Joseph R. Donovan, and Indonesia’s Minister of Trade, Enggar Lukita, the gathering brought together key stakeholders from both countries for day-long discussions on dairy trade and policy. In addition to hearing from senior level officials from both governments, participants engaged in one-on-one business meetings designed to expand importer knowledge of U.S. dairy products and exporter knowledge of Indonesian buyers’ requirements. Arranged by the U.S. Dairy Export Council (USDEC) and FAS Jakarta, industry representatives from 13 dairy exporters and producers met directly with buyers from 60 Indonesian companies representing importers, processors, and retailers. FAS Jakarta collaborated closely with USDEC to organize and manage this USDA- sponsored event. The event was an excellent example of how FAS can join with host government officials, local buyers, and U.S. industry stakeholders to increase U.S. exports.

    Ambassador Joseph R. Donovan speaks at the U.S. – Indonesia Dairy Roundtable event alongside Agricultural Counselor, Chris Rittgers (center) and USDA Undersecretary for Trade and Foreign Affairs, Ted McKinney (right).

    Results

    In the immediate months following the roundtable, exports of U.S. dairy products to Indonesia accelerated across key product categories including Non-Fat Dry Milk (NFDM), Whey, Lactose and Cheese. This strong performance in the final quarter led to a record quantity of U.S. exports to Indonesia in 2019. Despite market and demand disruptions related to Covid-19, strong demand for U.S. dairy products continued throughout 2020. Far outpacing the record 2019 year, in the year since the roundtable concluded (October 2019 – September 2020), U.S. exports of dairy products to Indonesia surged to more than 160,000 metric tons, valued at more than $346 million.

    Source: USDA – GATS

    Importantly, the gains for U.S. dairy were not solely derived from Indonesia’s growing dairy consumption. Global trade data in the year following the roundtable demonstrates the vast majority of growth in U.S. exports were a direct result of increasing market share. The U.S. market share for Indonesia’s $1.4 billion dairy import market increased nearly 80 percent in the year following the roundtable. This impressive growth, from 14 percent to 25 percent market share, came almost exclusively at the expense of dairy exports from the EU.

    The gains in U.S. exports have made Indonesia the fourth largest market for U.S. dairy by volume and the sixth by value. Significantly, this achievement is not the result of increased exports for any one particular product, but rather an upsurge across various dairy product categories:

    Top Destinations for Key U.S. Dairy Products by Value and Volume

    Seizing Opportunity

    The success of the U.S.–Indonesia Dairy Roundtable can in a large part be attributed to the fast response by U.S. Ambassador Donovan, FAS Jakarta, and the dairy industry to seize an opportunity to expand U.S. exports. Upon hearing reports of trade tensions between the EU and Indonesia related to palm and palm- derived products spilling over into trade of other commodities, FAS Jakarta and the dairy industry moved quickly to mobilize a high-level event that could capitalize on the changing trade environment. Ambassador Donovan spearheaded the engagement with the Ministry of Trade, which ultimately brought together U.S. exporters and Indonesian importers together at an opportune moment when Indonesia sought to diversify trade in dairy products away from the EU.

    Following the roundtable event, both FAS Jakarta and USDEC have continued to work aggressively to link U.S. dairy exporters with Indonesian buyers. This collaboration is perhaps most clearly demonstrated in the successful efforts to register new U.S. dairy facilities for export to Indonesia. Since concluding the roundtable, over 30 new U.S. dairy facilities have submitted applications to the Ministry of Agriculture seeking approval to export. Accordingly, USDEC has expanded its counseling to members on the application process and halal product requirements for Indonesia, while FAS Jakarta has actively engaged U.S. exporters to review and troubleshoot applications before submission and continually advocate with the Ministry of Agriculture for expedited review of U.S. applicants. As a result, 13 U.S. dairy facilities have been approved for export to Indonesia in 2020 and an additional 19 are undergoing the review process. Currently, 114 U.S. dairy facilities are approved for export to Indonesia, more than double the number of any other country. — By Garrett Mcdonald, USDA Foreign Agricultural Service

  • Mailbox Milk Prices Expected to Normalize in 2021 Following Year of Extreme Volatility

    The pandemic in 2020 caused unprecedented market volatility in dairy prices, leading to lower milk checks for dairy producers. However, the price spread is expected to realign in the first half of 2021, bringing normalcy to producer price differentials (PPDs) and mailbox milk prices, according to a new report from CoBank’s Knowledge Exchange division.

    Extreme volatility in cheese and milk prices resulted from supply chain disruptions, government purchasing, and changes in consumption habits during the COVID-19 pandemic. Record-high cheese prices lifted Class III milk prices disproportionately higher than Class IV milk prices, which were held in check by low butter and milk powder prices.

    Because of higher Class III milk prices, cheese manufacturers were incentivized to depool milk from Federal Milk Marketing Order (FMMO) marketing regions. The loss of higher-priced Class III milk from the pool resulted in negative PPDs for dairy farmers and lower mailbox milk prices.

    “The coronavirus pandemic broke the relationship between monthly mailbox milk prices and monthly Class III milk prices,” said Tanner Ehmke, manager of CoBank’s Knowledge Exchange. “But the spread between Class III and IV milk prices is expected to realign in the first half of 2021, bringing normalcy back to PPDs and mailbox milk prices.” 

    Pooling and De-Pooling

    While most Class I processors are legally obligated to pool milk in an order, handlers of other classes of milk have the option to participate based on certain order performance requirements and the financial incentive.

    Between June and November 2020, cheese processors mostly found themselves in a disincentivized position. The cost of milk would be higher if processors had pooled milk in the order. As a result, cheese manufacturers have in many cases chosen to “de-pool” milk.

    The effect of de-pooling has been most dramatic in California, where the FMMO pool consisted of an average of just 0.8% Class III milk between June and October 2020. This followed an average of 29% of the order in the same period in 2019.

    De-pooling is incentivized when the blend or uniform price in an order pool falls below either Class III or Class IV prices. Historically, de-pooling also tends to coincide with a negative producer price differential.

    Future of PPDs

    Negative PPDs occur when milk in a federal milk pool is less than the Class III price. This tends to happen when the Class III price is at a significant premium to Class IV milk prices.

    New cheese manufacturing plants coming online and expanding in Iowa, Michigan, Minnesota, South Dakota, and Wisconsin will increase annual production of American-type cheese by an estimated 8% by June 2021. When at capacity, the addition in manufacturing will utilize approximately 4.6 billion lbs. of milk annually—roughly equivalent to 1.5 years of increases in annual U.S. milk production.

    The increase in plant capacity, combined with the slowing of government programs like the Food Box Program, should contribute to Class III and Class IV milk prices returning to more historical price spreads in the second quarter of 2020, resulting in positive PPDs.

    Read the report, When the Pandemic Breaks Milk Prices: A Study in Returning to Normal.

    About CoBank

    CoBank is a $148 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 70,000 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 also maintains an international representative office in Singapore.

  • Dairy Manure and Methane Recovery

    For most of us, 2020 can’t be over soon enough. Yet, in the digester development world, each day from today through 2024 is precious time to identify facilities, procure funding, and install digesters. Why? To capture methane and use it as valuable renewable compressed natural gas (RCNG) and meet ambitious manure methane reduction targets.

    How is the California digester portfolio doing? Since 2015, 119 dairies have installed, or are installing, digesters to capture and utilize manure methane. The number of dairy projects receiving funding by year and developer are shown in Table 1. The 2015 projects used methane for electricity. Only two digesters since then use methane for electricity. Almost all facilities use biogas for renewable compressed natural gas. Digesters are being developed in six counties within the San Joaquin Valley. The success of these projects and others yet to come will help California dairies meet the ambitious goal of 40 percent reduction in manure methane from 2013 levels by 2030.

    For more information on funding, see the CDFA website. — By Deanne Meyer – UC Davis Department of Animal Science & UCANR

  • Grazing & Riparian Restoration Are Compatible When You Put in the Work

    With a little time and effort, rangeland managers can have a dramatic impact on the resilience of California’s riparian areas, which are important to the state’s human, environmental and economic well-being. Rangeland ecologists at the University of California, Davis, found that when ranchers invest even one week a year in practices that keep cows away from creeks — like herding, fencing and providing supplemental nutrition and water — they can improve riparian health by as much as 53 percent.

    “The human factor is remarkably significant,” said Ken Tate, professor and Cooperative Extension specialist in the UC Davis Department of Plant Sciences. “Common thinking is that effectiveness of various rangeland management tools is site specific and largely due to site factors, such as topography and plant communities. Some practices are better suited to certain ranches for these reasons. But this study suggests that how you implement the tools might be the biggest factor in keeping rangelands productive and environmentally sustainable.”

    Tate collaborated with UC farm advisors and several other UC rangeland ecologists on the large-scale riparian conservation study recently reported in the Rangeland Journal.  

    One-third of California — 38 million acres — is rangeland. Much of it is mountainous and arid and managed for livestock production. Grazing on rangeland feeds livestock and also offers many environmental benefits like keeping invasive weeds in check, reducing risk and intensity of wildfires, and supporting habitat for certain animals and plants found nowhere else in the world.

    Problems arise, though, when cattle spend too much time near water, where manure can create water-quality risks for people downstream. That is especially true in California where some 80 percent of the state’s drinking and irrigation water is stored on or passes through rangeland. Overgrazing in riparian areas also tramples sensitive habitat and lets perfectly good forage on hillsides go to waste.

    Examining 1 million acres

    Tate and his team studied 46 grazing units on ranches and national forests covering nearly 1 million acres of dry, rugged rangeland in east-central and northeastern California. With the ranchers’ help, they looked at the relationship between number of livestock, managerial effort and riparian health. To measure riparian health, researchers looked for tiny aquatic bugs, animals and insects known as benthic macroinvertebrates.

    “We collected the kind of things you’d find under rocks when you crawled around creeks when you were a kid,” Tate explained. “The types of bugs and creepy crawlies present and absent tell us a lot about the biodiversity and health of a stream.”

    The team found no significant relationship between riparian health, number of livestock and simple yes/no answers on whether ranchers used fencing, herding or water and salt licks on hillsides to coax cattle from creeks. There was, however, a significant correlation between riparian health and time spent implementing those tools.

    “It doesn’t take a lot of effort, but it does take some effort,” Tate said. “When you put a salt lick on a hillside to attract cattle, for example, it’s going to lose its effectiveness if you don’t go back and refill it and move it to another hillside when the grass around it is grazed. Cows cannot live by salt alone.”

    Tate is encouraged by the results and the solutions they suggest.

    “We see a lot of win-wins,” Tate said. “Effective management opens up new forage opportunities and increases productivity. And when you have more useable land, you relieve pressure on riparian areas, which is good for the environment and for agriculture.” — By Diane Nelson, UC Davis

  • Sustainable Food Systems, COVID-19 Drive 2020 Sustainable Ag Summit Dialogue

    Beth Bechdol, Deputy Director-General at the Food and Agriculture Organization of the United Nations, previewed the 2021 Food Systems Summit and its implications for U.S. agriculture during her keynote address of the 2020 Sustainable Agriculture Summit held virtually, Nov. 18-19.

    The sixth annual Sustainable Agriculture Summit attracted a record 800 attendees, with farmers making up about a fourth of the audience. The summit is hosted jointly by five organizations representing U.S. dairy, commodity crop, specialty crop, beef and pork industries, including the checkoff-founded Innovation Center for U.S. Dairy.

    Bechdol said the Food Systems Summit, which will be held in New York City in September, will be an opportunity for the U.S. food and agriculture community to ensure its diverse voices, sustainability record and progress are reflected in the role food systems play in achieving the United Nations 2030 Sustainable Development Goals.

    “This is an agenda that must be owned by everyone,” she said. “In some ways, we really hope that it awakens the world to the fact that we all need to work together to transform the way the world produces, consumes and even just thinks about food.”

    Barbara O’Brien, president of the Innovation Center for U.S. Dairy, opened the Sustainable Agriculture Summit with a review of the COVID-19 crisis and its impact on the world. She said Feeding America projects an 8 billion meal deficit in the charitable food system over the next 12 months, and that the virus created a “reframing” of how people think about and define a sustainable food system.

    “Brands, companies and industries, including agriculture, can no longer sit on the sidelines of the conversation,” O’Brien said. “We don’t have the luxury to stay silent on environmental, social and economic issues as NGOs, customers and consumers make it an expectation of business.”

    She recognized the 2050 Environmental Stewardship Goals announced by the Innovation Center for U.S. Dairy and applauded the resilience of U.S. agriculture this year, saying its collective strength positions the industry for a bright future.

    “The counter narrative is growing louder and the global debate over what fits and what doesn’t fit in a sustainable food system is real,” she said. “The question is how do we set the course for the next generation of global agricultural sustainability that builds consumer trust, preserves consumer choice and allows for a vibrant industry? Together, I think we can find the answer.”

    Examining ESG issues

    A panel discussion led by Krysta Harden, executive vice president of global environmental strategy for Dairy Management Inc., focused on how environmental, social and governance (ESG) issues are revolutionizing sustainability throughout the value chain. For agriculture, these challenges include climate change, food waste, labor and treatment of essential workers.

    Harden referenced dairy’s proactivity in  launching its U.S. Dairy Stewardship Commitment in 2018. The Commitment is a voluntary social responsibility pledge to consumers and customers that processors and co-operatives will transparently meet defined criteria in areas including animal care, environment and food safety. Harden said 29 dairy companies representing 70 percent of U.S. milk production have adopted the Stewardship Commitment.

    “Investors are increasingly seeking a strong link between corporate sustainability performance and financial performance, which is why it’s important for agriculture to take note and make sure we are prepared to accelerate these areas,” Harden said.

    The summit also featured a panel discussion on how COVID-19 heightened public awareness around food security and how food and agriculture can build sustainable supply chains in a disrupted world.

    Denise Osterhues, senior director of sustainability and community engagement for The Kroger Co., said the company’s Zero Hunger | Zero Waste program that aims to end hunger and reduce waste in its communities by 2025, took on added relevance this year.

    She said Kroger’s top priority during the onset of COVID-19 was to simply stay in business so consumers could continue having access to safe, healthy and affordable food. The grocer invested more than $1 billion in health and safety measures for employees and customers. Kroger also accelerated its e-commerce business and offered curbside and delivery services.

    Osterhues referenced a milk donation program in Michigan that was in place before COVID-19 hit, in which Kroger collects surplus milk from co-ops and donates the processing. More than 130,000 gallons have been donated into the Feeding America pipeline as a result.

    She is encouraged by the charitable and proactive response she has seen during this time.

    “One lesson we believed from the start, but has become more clear, is that we totally need everyone,” she said. “It will take all of us to do our own parts and more. We’re excited about the innovation we have seen. Some of the start-ups, entrepreneurs and college students who have risen to the moment are putting creative solutions in place and making things happen.”

    Other panel sessions addressed subjects including preserving biodiversity, climate-smart agriculture and working alongside underrepresented communities to build a more just, equitable and inclusive food system.

    For information on U.S. Dairy’s sustainability efforts, visit www.usdairy.com/sustainability.

  • PERC Urges Producers to Consider Propane Heating Solutions for Reliable, Consistent Power Year-Round

    As winter weather quickly approaches, the Propane Education & Research Council urges producers to consider how propane can keep your operation running smoothly and livestock safe year-round, without worrying about peak pricing or power outages.

    Propane-powered building and water heating solutions offer reliable, consistent power independent of the grid—an invaluable asset for many agricultural operations. Propane equipment eliminates the risk of sudden power outages, which can wreak havoc on a farm or ranch. With propane equipment, producers do not have to rely on access to the power grid or a natural gas line.

    “With propane heating equipment, producers can take back more control over their farm, and the consistent and precise temperatures help them maintain healthier plants and animals,” said Mike Newland, Director of Ag Business Development at PERC. “At the same time, producers can cut unnecessary costs, saving 25 percent more with propane water heating versus electricity.”

    On-demand tankless water heaters achieve high efficiency by eliminating the thermal standby losses from a storage tank and demonstrate efficiencies of at least 90 percent. Propane-powered building heat—including boilers, hot air furnaces, or radiant heaters—are highly efficient and offer thermal efficiencies of up to 95 percent.

    For more information about propane-powered agricultural equipment and the Propane Education & Research Council visitwww.Propane.com/Agriculture.

  • Surging Feed Prices Will Challenge the U.S. Animal Protein Sector’s Recovery

    The U.S. animal protein sector is expected to face a 12% increase in feed costs in 2021, which will mark the highest year-over-year inflation since 2011. With corn futures above $4 per bushel and soybean meal futures around $350 per ton, cattle feeders, hog producers and chicken producers will pay higher prices for feed than they have in many years, according to a new report from CoBank’s Knowledge Exchange division.

    The higher feed costs come at a challenging time, as meat and poultry industry margins have been pressured by weak prices in 2020 due to COVID-19. Average producer margins for cattle, hogs and broilers fell into negative territory this year after the pandemic disrupted foodservice demand and drove widespread meat plant slowdowns and shutdowns.

    “Most producers lost money during the year, but that’s been in the midst of some of the most extreme volatility in global food demand anyone has ever seen,” said Will Sawyer, lead animal protein economist with CoBank. “Industry margins are far better today than they were in the spring, but there will be tighter windows of opportunity for the livestock and poultry sectors to profit in 2021.”

    Much of the increase in feed prices is being driven by Chinese demand for grain as it rebuilds its hog herd and overall animal protein supply after African Swine Fever (ASF) ravaged its herd the last couple of years. The USDA forecasts China’s corn imports to more than triple in the 2020-21 crop year, with much of that increase coming from the U.S.

    The shortage of animal protein in China has drawn massive trade flows towards the world’s most populous country. Since China lost more than half of its hog herd beginning in late 2018, it has been the largest importer globally of beef and pork, and nearly surpassed Japan in poultry imports. While China’s protein imports are expected to decline a modest 3% in 2021, CoBank economists anticipate those imports will fall more sharply in the years to follow.

    For most of the last decade, feed costs have generally been a tailwind for U.S. meat and poultry producers and have been lower than the year before for six of the last eight years. In 2021, U.S. hog producers are expected to face the highest level of feed cost inflation at 14%, closely followed by cattle feeders at 13%, and chicken producers at 11%. The impact of feed costs varies by species for several reasons, such as life cycle, feed ration, and components of other feed costs.

    While feed costs will be more of a burden for the animal protein industry than in previous years, meat and poultry supply growth is expected to slow in 2021. USDA forecasts 0.8% overall growth for U.S. beef, pork, and chicken production in the coming year, the slowest rate of supply growth since 2014. That leaves reason for some level of optimism that higher feed costs can be offset by higher prices.

    “While animal protein and poultry producers face a higher cost structure in 2021, margin opportunity will increasingly come from revenue rather than cost,” said Sawyer. “And fortunately, there are positive signs that producers and processors may benefit from higher beef, pork, and poultry prices to cushion higher feed costs.”

    Sawyer points to the emergence of COVID-19 vaccines as a positive first step towards the eventual normalization of food and animal protein consumption patterns, including the return of foodservice industry demand. Additionally, changes by major meat and poultry processors greatly reduce the probability of a repeat experience seen in April and May 2020.

    CoBank estimates U.S. meat and poultry companies have invested more than $2.5 billion this year in direct COVID-19 expenses to ensure safe working conditions and reduced risk of plant shutdowns. With plants operating at a more normal level, absenteeism levels improving, and far fewer workers falling ill, the financial impact of COVID-19 looks to be far less in the coming year than what the industry has endured in 2020.

    Read the full report, Surging Feed Prices to Test U.S. Animal Protein’s Recovery.

    About CoBank

    CoBank is a $148 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 70,000 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 also maintains an international representative office in Singapore.

  • More Than 7 in 10 Adults Want Companies Partnering with Gov’t to Distribute Coronavirus Vaccines

    In an International Dairy Food Association (IDFA) poll conducted by Morning Consult from December 4-7 among a national sample of 2,200 adults, 71% of adults support companies and employers partnering with public health agencies at local and state levels to aid in the distribution of the coronavirus vaccine to employees. The same poll found more than four in five adults believe food workers—manufacturing, retail and farm workers, among others—should be made a priority when it comes to being among the first to receive the coronavirus vaccine.

    The Morning Consult interviews were conducted online with a target sample of adults across age, race/ethnicity, gender, educational attainment, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

    The full survey findings and graphical presentations of data may be found at www.idfa.org/vaccinesurvey. Key findings from the survey include:

    • More than four in five adults agree that grocery store workers (89%), farm workers (85%), and agricultural and food production (86%) workers are essential workers.
    • Seven in ten adults (71%) support companies and employers partnering with public health agencies at local and state levels to aid in the distribution of the coronavirus (SARS-CoV-2) vaccine to employees.
    • A bipartisan majority of adults support private companies and employers partnering with public health agencies at local and state levels to aid in the distribution of the coronavirus vaccine to employees.
    • More than four in five adults believe grocery store workers (90%), agriculture and food production workers (85%), and farm workers (82%) should be made a priority when it comes to being among the first to receive the coronavirus vaccine
    • More than four in five Democrats, independents, and Republicans demographics believe food and agriculture production workers should be made a priority when it comes to being among the first to receive the coronavirus vaccine.
    • Two-thirds of adults (65%) report they are likely to get the coronavirus vaccine while a third (35%) report they are unlikely to.
    • While a majority of adults report they are likely to get the COVID-19 vaccine when it becomes available, Democrats and older adults are the most likely to report they are likely to get the vaccine.

    Background from the International Dairy Foods Association (IDFA)

    IDFA represents more than 3 million employees across the dairy foods supply chain, including farmers, food processors and manufacturers, food retailers, and other distributors. Food industry workers are recognized as part of our nation’s critical infrastructure by the Department of Homeland Security. Because of this recognition, the U.S. Centers for Disease Control and Prevention’s (CDC) COVID-19 Vaccination Program Interim Playbook designates food industry workers for vaccine prioritization as part of Group 1B, after frontline healthcare workers and other target populations. Prioritization will ensure continued operations and supply of food and other critical consumer packaged goods to people around the country. Without prioritization, supply chains could break down, creating widespread disruptions to our economy. Companies within the food industry are seeking to partner with federal, state and local public health officials to help reinforce the importance and safety of vaccinations and ensure essential food workers can access and receive vaccinations as they become available.

  • Referendum on CA Dairy Quota Reform Proposal Recommended by Administrative Judge

    United Dairy Families of California — Judge Timothy Aspinwall issued a recommended decision today that United Dairy Families of California’s petition to sunset the Quota Implementation Plan (QIP) and equalize Regional Quota Adjusters (RQAs) must move forward to a referendum.

    The judge’s decision confirmed that the petition submitted to the California Department of Food and Agriculture (CDFA) met all legal and procedural requirements. The Order of Decision is now before CDFA Secretary Karen Ross, who will make the final determination on whether or not a referendum will be held.

    The petition was born out of a multi-year effort led by United Dairy Families, a volunteer organization of dairy farmers seeking to unite the California dairy industry. United Dairy Families held over twenty meetings around the state and solicited input from hundreds of producers to determine a fair process to resolve the current dispute over the QIP.

    Economists Dr. Marin Bozic and Matt Gould provided expert analyses of multiple plans that aided dairy producers in their decision to move forward with the sunset plan to the QIP.

    United Dairy Families submitted over 300 signed petitions from dairy producers to CDFA in June, which initiated the referendum process. A hearing on the petition was held on September 30, 2020, during which Judge Aspinwall heard testimony and arguments from United Dairy Families, interested organizations SAVE QIP and STOP QIP, and additional testimony from various producers.

    United Dairy Families is pleased with Judge Aspinwall’s decision, and hopes Secretary Ross will affirm the recommended decision and direct that the petition proceed to a referendum.

  • Tom Vilsack to Return as Secretary of Agriculture

    President-elect Joe Biden has nominated Tom Vilsack to serve as Secretary of Agriculture. Former U.S. Agriculture Secretary, Tom Vilsack currently serves as president and CEO of the U.S. Dairy Export Council. He took the position in February 2017 after serving eight years as the nation’s 30th Secretary of Agriculture.

    According to the U.S. Dairy Export Council, “Vilsack worked hard to strengthen the American agricultural economy, build vibrant rural communities and create new markets for the tremendous innovation of rural America. In eight years at the Department, Vilsack fought to put Americans back to work and create an economy built to last. Under his leadership, USDA supported America’s farmers, ranchers and growers who are driving the rural economy forward, provided food assistance to millions of Americans, carried out record conservation efforts, made record investments in our rural communities and helped provide a safe, sufficient and nutritious food supply for the American people.”

    “Vilsack was the longest-serving member of President Obama’s original Cabinet. Prior to his appointment, he served two terms as the Governor of Iowa, in the Iowa State Senate and as the mayor of Mt. Pleasant, Iowa. Vilsack received his bachelor’s degree from Hamilton College and his law degree from Albany Law School in New York.”

    “Vilsack has been honored for his public service and work to advance American agriculture by the Congressional Hunger Center, Global Child Nutrition Foundation, U.S. Global Leadership Coalition, National Corn Growers Association, American Farm Bureau, and National Farmers Union. A native of Pittsburgh, Pennsylvania, Vilsack was born into an orphanage and adopted in 1951. After graduating from law school, Vilsack moved to Mt. Pleasant Iowa, his wife Christie’s hometown, where he practiced law. The Vilsacks have two adult sons and two daughters-in-law-Doug, married to Janet; and Jess, married to Kate. They also have four grandchildren.”

    Regarding Vilsack’s nomination, American Farm Bureau President Zippy Duvall shared, “The American Farm Bureau Federation welcomes the news that Tom Vilsack will be nominated to be Secretary of Agriculture. His leadership as the 30th Secretary of Agriculture and as Governor of a state reliant on agriculture is evidence of his qualification to serve in this role. Tom Vilsack understands that the agriculture sector is far more complex than most people understand. He believes in a ‘big tent’ philosophy that supports all types of production and understands the importance of respecting farmers and ranchers as partners worthy of support in the race to achieve sustainability goals.”

    “Tom and I built a good relationship during his first term as Ag Secretary and we’ve built on that relationship in his current role with the U.S. Dairy Export Council. I look forward to sitting down with him again to continue our conversation on how to address the opportunities and challenges facing agriculture and rural communities. The pandemic revealed both the strengths and weaknesses of our food system, which Tom has had a front row seat to witness.”

    “Together, we must prepare to tackle a new farm bill and build on efforts to create a fair marketplace for U.S. agriculture to compete globally. It is essential we ensure climate policies respect farmers and remain market-based and voluntary. And, we must end the digital divide that puts rural America at a disadvantage.”

    “Tom Vilsack earned a reputation for rising above partisanship to serve farmers and ranchers and I’m confident he’ll continue to do so. The American Farm Bureau stands ready to support Tom and work closely with him knowing his success as Ag Secretary correlates directly with America’s farmers and ranchers, as well as our rural communities, having the support they need to flourish.”

    National Milk Producers Federation President and CEO Jim Mulhern added, “Tom Vilsack has dedicated his life to service. While we will miss him as a colleague and friend, all of us in the dairy community who have had the opportunity to work with him over the past four years know his deep passion and commitment to rural America and his understanding of its interdependence with our urban and suburban communities. The challenges that lie ahead are many – from a battered farm economy to climate change, the environment and sustainability, to nutrition and the importance of addressing the nation’s growing food insecurity, as well as the need for better trade policy and expanded markets abroad, and much more. No one is better suited to tackle these challenges than Tom Vilsack. We applaud President-elect Biden’s decision, and we look forward to Secretary Vilsack’s next chapter of leadership in American agriculture.”

    Michael Dykes, president and CEO of the International Dairy Foods Association shared, “The International Dairy Foods Association is pleased to see news of Mr. Vilsack’s expected nomination to lead USDA by President-Elect Biden. As Mr. Vilsack knows well, one-fifth of the nation’s economy is linked, either directly or indirectly, to the food and agriculture sectors, supporting more than 45 million jobs and trillions in wages. An experienced mayor, governor and two-term Agriculture Secretary in a previous administration, Mr. Vilsack has the knowledge and understanding to hit the ground running and make immediate progress on pressing issues facing food, agriculture and the rural economy. He has seen first-hand the pandemic’s impact on health and jobs, and we’re hopeful that with his guidance, we can continue to protect our essential workforce so they can feed our nation. To that point, the nation’s food security will be his top priority upon taking office, and IDFA offers our partnership in finding creative ways to reduce hunger and improve access to nutritious foods including dairy. On behalf of the men and women working across the dairy industry—from farms to processing facilities to retail and distribution hubs—IDFA looks forward to working with Mr. Vilsack and his team to make dairy central to solutions. Together, we can enhance economic progress for food producing communities and strengthen export opportunities, unleash innovation to safeguard our food and advance nutrition solutions, and create a more sustainable footprint for our food and agriculture sector.”

    John Piotti, President and CEO of the American Farmland Trust shared, “American Farmland Trust congratulates Tom Vilsack on being nominated as Secretary of Agriculture by President-elect Joe Biden. At a time when farmers are struggling in the face of a global pandemic, his experience will help USDA tackle these challenges on day one of the new administration. We especially look forward to working with him to advance farmland protection, provide farmers the tools to address climate change, create a more inclusive agricultural system, and widen the doors of participation to a new, diverse generation of producers.”

    Julie Anna Potts, president and CEO of the North American Meat Institute also sustained the nomination, and said, “Secretary Vilsack brings experience and leadership to the Department of Agriculture at a critical time when the meat and poultry industry works to put food on American’s tables and to keep the farm economy working in a pandemic. We look forward to working closely with Secretary Vilsack in his new role to ensure our industry remains a valuable partner to livestock producers, an efficient supplier to consumers and competitive in the international marketplace.”