California Ag Network

Tag: IDFA

  • IDFA Announces 38th Annual Capitol Hill Ice Cream Party on June 22nd

    The International Dairy Foods Association (IDFA) announced the return of the annual Capitol Hill Ice Cream Party to the National Mall on June 22, 2022. The Ice Cream Party has been an essential summertime event for members of Congress, their families, Capitol Hill staff and many other special guests since it began in 1983. However, IDFA did not hold the event in 2020 or 2021 due to the pandemic.

    The celebration on the National Mall just outside the U.S. Capitol Building is one of Washington’s most anticipated for professionals working in food and agriculture, bringing together thousands of guests, including members of Congress and officials from the executive branch, in a fun event showcasing America’s favorite frozen treat. Because IDFA and the U.S. dairy industry are committed to a more sustainable future, this year’s event will offer bowls, cups, spoons and napkins made from post-consumer recycled materials, and recycling bins will be made available by IDFA for recycling waste from the event.

    “The return of the IDFA Ice Cream Party is the biggest scoop on Capitol Hill in years,” said IDFA President and CEO Michael Dykes, D.V.M. “We always say ice cream is as bipartisan as you can get. The IDFA Ice Cream Party is our way of showing appreciation on behalf of America’s dairy producers and dairy foods makers to public servants, members of Congress and all the individuals working in Congress and in our federal agencies. Come out to the National Mall on June 22nd to enjoy some free ice cream.”

    The 38th Annual IDFA Capitol Hill Ice Cream Party will take place at Union Square Park on Capitol Hill on Wednesday, June 22 from 4:00-6:00 p.m. The park is located west of the Capitol in the area encompassing the Capitol Reflecting Pool and the Grant Memorial.

    IDFA Ice Cream Stats:

     

    • In 2021, ice cream makers in the U.S. churned out more than 1.3 billion gallons of ice cream.
    • The average American eats roughly 20 pounds of ice cream each year, or about 4 gallons.
    • Fortune Business Insights estimates the global ice cream market will reach $97.85 billion in 2027, up from $71.52 billion in 2021—a 37% jump in less than a decade due to the world’s craving for ice cream.
    • U.S. ice cream makers contribute $13.1 billion to the U.S. economy and support 28,800 dairy industry jobs, according to IDFA’s Dairy Delivers economic impact report.
    • The majority of U.S. ice cream and frozen dessert manufacturers have been in business for more than 50 years, and many are still family-owned businesses.
    • In 1984, President Ronald Reagan designated July as National Ice Cream Month and the third Sunday of the month as National Ice Cream Day. In the proclamation, President Reagan called for all people of the United States to observe these events with “appropriate ceremonies and activities.”
    • Thomas Jefferson is credited as the first American to write down an ice cream recipe.

    IDFA partnered with Research America in 2019 to study U.S. ice cream data and trends.

    • Nearly two-thirds of Americans rank vanilla as their favorite ice cream flavor. America’s top 10 favorite ice cream flavors:
      1. Vanilla
      2. Chocolate
      3. Cookies N’ Cream
      4. Mint Chocolate Chip
      5. Chocolate Chip Cookie Dough
      6. Buttered Pecan
      7. Cookie Dough
      8. Strawberry
      9. Moose Tracks
      10. Neapolitan
    • America’s favorite novelty products are:
      • Sandwiches
      • Mini cups
      • Sticks or pops
      • Cones
      • Bars
    • Most ice cream is made March through July. July is the busiest production month for ice cream makers.

    More information about ice cream is available on IDFA’s website: www.idfa.org/news-views/media-kits/ice-cream.

  • U.S. Retaliatory Tariffs Required as Canada Refuses USMCA Obligations

    The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today called on the U.S. government to levy retaliatory tariffs on Canada after Ottawa made clear that it refuses to meet its signed treaty obligations under the U.S.-Mexico-Canada Agreement (USMCA) concerning dairy market access.

    In January, a USMCA dispute resolution panel initiated by the U.S. found that Canada’s dairy tariff-rate quotas (TRQs) system violates the terms of USMCA. Canada issued a new TRQ proposal in March which included only inconsequential changes. Today’s announcement shows no indication that Canada intends to comply with its USMCA commitments on dairy TRQs.

    “Canada made a clear choice to thumb its nose at both the United States government and its international treaty obligations. It has completely disregarded the USMCA agreement signed just a few short years ago,” said Jim Mulhern, president and CEO of NMPF. “Ottawa’s decision today is clearly designed to test our resolve by doubling down on its longstanding dairy trade violations, ignoring both the spirit and the letter of its trade agreements. That decision demands retaliatory action by the U.S. government. Otherwise, our trade agreements will be seen as toothless before the ink is dry.”

    “USTR, USDA and scores of members of Congress from both side of the aisle have worked diligently to ensure American dairy farmers and manufacturers benefit from USMCA. They deserve our deepest thanks for bringing us this far,” said Krysta Harden, president and CEO of USDEC. “Unfortunately, Canada simply refuses to institute real reform, and such actions must have consequences. Retaliatory tariffs are both fair and necessary in this circumstance, as clearly provided for by USMCA.”

    As an April 5 bipartisan letter on the matter sent to Ambassador Tai and Secretary Vilsack from several leading members of the U.S. House of Representatives stated, “A deal’s a deal; it’s not too much to ask that our trading partners live up to their end of the bargain.”

    On April 19, USDEC and NMPF filed public comments on the matter with Global Affairs Canada. The filing noted, “Canada’s proposed allocation and administration policy changes in response to the CUSMA report continue to fall woefully short of full compliance with Canada’s CUSMA obligations. This has consequences not only for the agreed-upon CUSMA benefits denied U.S. and Canadian stakeholders, but also for the credibility of CUSMA enforcement procedures undergoing their first test in this dispute and for the success of CUSMA itself. We urge Canada to consider its larger interest in the success of the CUSMA and modify its dairy TRQ allocation and administration policies to give effect, in good faith, to Canada’s CUSMA commitments.”

    The International Dairy Foods Association (IDFA) also shared their distaste with Canada’s actions. “This outcome is completely unacceptable,” said Michael Dykes, D.V.M., president and CEO of IDFA. “Canada’s publication today clearly shows they are ignoring their trade commitments agreed to in the USMCA and refusing to administer their dairy TRQs in a manner compliant with the agreement. The U.S. dairy industry has made clear from the start that U.S. dairy exporters demand real TRQ reform that will permit the market access Canada agreed to. The U.S. met with Canada a week ago on this very matter and expected a good faith effort. Instead, Canada continues to deny U.S. dairy products from reaching their full capacity under the terms of the deal and continues to deny the existence of any obligations. IDFA thoroughly rejects the Canadian policy published today and demands a swift response from USTR.”

    He continued, “Canada cannot be permitted to blatantly disregard their trade obligations after having been found non-compliant by a neutral and expert panel, only to then ignore their obligations without consequence. We are pleased to see USDA responding forcefully and hope that USTR does the same. Our government must hold Canada accountable.”

  • Improving Child Nutrition and Food Security Through Increased Dairy Consumption in School Meals

    The National Milk Producers Federation (NMPF) and the International Dairy Foods Association (IDFA) today submitted joint comments to the U.S. Department of Agriculture (USDA) Food and Nutrition Service urging the agency to improve nutrition security by updating school meal nutrition standards to encourage increased consumption of dairy in keeping with recommendations from the 2020-2025 Dietary Guidelines for Americans (DGA) report and with leading health organizations.

    In 2020, the federal Dietary Guidelines Advisory Committee report found that a staggering 79 percent of 9- to 13-year-olds are not meeting the recommended intake of dairy foods and thereby under-consuming a variety of nutrients during childhood and adolescence, including potassium, calcium, and vitamin D. In their comments to USDA, IDFA and NMPF noted that school children of all ages are falling short of these recommendations, and they rely on school meals to meet their nutritional needs. IDFA and NMPF also noted that falling participation rates in school breakfast and lunch programs as a result of the COVID-19 pandemic are a growing concern for overall nutrition security among students.

    USDA this spring announced transitional school meal nutrition standards for the next two school years that will allow schools to continue to serve low-fat flavored milk consistent with DGA recommendations, and pause overly stringent sodium reduction targets that threaten the ability of school meals professionals to serve nutrient-rich cheeses. USDA intends to craft more permanent standards for school year 2024/2025 and beyond that pave the way for healthy and nutritious school meals.

    “IDFA applauds the USDA’s goal of creating ambitious, achievable, and durable nutrition standards for students that support positive health and development outcomes for children while improving nutrition security,” said Michael Dykes, D.V.M., president and CEO of IDFA. “The most recent DGA report is clear: children are not receiving enough essential nutrients for growth, development, healthy immune function, and overall wellness. School meals offer the most important opportunity of the day for children to get the essential nutrients they need, and dairy foods—including milk, yogurt, and cheese—are absolutely critical to building meals that children want to consume. Now the spotlight is on USDA to make dairy a central building block in its effort to craft ambitious, achievable, and durable school meal standards consistent with the DGAs.”

    “On behalf of American dairy farmers, NMPF thanks USDA for their work to enhance school meal nutrition standards to reverse the underconsumption of dairy and help students boost their intake of key nutrients,” said Jim Mulhern, president and CEO of NMPF. “Milk and other dairy products support USDA’s critical goal of boosting consumption of essential nutrients, including potassium, calcium and vitamin D. Low-fat flavored milk is fully consistent with the Dietary Guidelines for Americans and is a nutrient-dense option that kids in schools choose to drink.”

    In their joint comments, IDFA and NMPF urge USDA to embrace the recommendations of the DGA report and expand nutritious dairy options that encourage dairy consumption among children. USDA can do this by continuing flavored milk and yogurt offerings in schools and setting sodium limits that accommodate use of cheese in school meal products, the associations said.

    An overall decline in school milk consumption has been identified in recent years, particularly after whole milk and low-fat flavored milk options were removed from school meals 10 years ago. “USDA can begin to reverse the trend through providing certainty for schools offering flavored milks, which provide the same micronutrients as white milk but with a flavor that many children prefer,” IDFA and NMPF said. “Flavored milks, like all cow’s milk, are a source of 13 essential nutrients, including calcium, vitamin D and potassium.”

    Similarly, continuing to recognize flavored yogurt in school meals would encourage consumption of a nutritious dairy product that has been associated with higher diet quality in children, with higher intake of multiple nutrients, including calcium, potassium, magnesium, and vitamin D. In addition to being nutritious offerings for children, flavored milk and flavored yogurt have been shown to decrease food waste from school meals and increase overall meal participation.

    View the comments here.

    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.

    The International Dairy Foods Association 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.

  • Canadian Plan for USMCA Compliance a ‘Nonstarter’

    On March 2nd, the Government of Canada published its plans for complying with U.S. Mexico-Canada Agreement (USMCA) tariff-rate quota (TRQ) commitments after a USMCA dispute panel found them non-compliant in January.

    Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA), said the Canadian plan is a nonstarter. “The plan makes true access to the Canadian market unattainable through a series of gimmicks. It comes as no surprise that Canada is unwilling to reform their trade-distorting practices on dairy.”

    The plan makes minimal changes and continues to fall well short of Canada’s USMCA commitments, adding distributors as eligible applicants and allocating based on market share. IDFA remains deeply concerned that these proposed changes will continue to have the same outcome as the previous policy and market access will not be obtained.

    From the onset of USMCA implementation, IDFA has sought the reform of Canada’s TRQ administration by seeking an administration that does not have layers of overly prescriptive rules that distort the market and prevents U.S. dairy exporters from having full access to the quotas Canada agreed to in the USMCA. Canada’s announced consultations on Wednesday fall well short of true reform.

    IDFA will continue advocating for Canadian TRQ administration reform that facilitates the market access commitments in the USMCA Agreement and will continue collaborating with the U.S. Government to support their negotiation of an acceptable outcome for the USMCA TRQ dispute.

    “We continue to support our U.S. Government colleagues in ensuring Canada is fully meeting all of its commitments under USMCA,” said Dykes.

    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.

  • 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.

  • 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.”

  • IDFA, NMPF Supportive of Biden Administration School Meal Flexibilities, Encourage Expansion of Dairy Offerings

    The International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF) shared their support of the U.S. Department of Agriculture’s (USDA) final rule maintaining low-fat, flavored milk and other needed flexibilities in USDA child nutrition program meal requirements through the 2023-2024 school year.

    Michael Dykes, D.V.M., President and CEO of IDFA shared, “Today’s announcement from USDA clears up several years of confusion and takes a positive step toward restoring more varieties of milk to the school meals program. The final rule allows schools to continue to serve milk that students prefer to drink while remaining consistent with the Dietary Guidelines. The rule gives clarity to school meals professionals and food makers as they plan ahead amid supply chain challenges, and it will improve students’ access to dairy products, particularly milk and its 13 essential nutrients, and cheese as a nutrient-rich protein alternate.

    “In 2020, the federal Dietary Guidelines Advisory Committee report found that a staggering 79 percent of 9- to 13-year-olds are not meeting the recommended intake of dairy foods and thereby underconsuming a variety of nutrients during childhood and adolescence, including potassium, calcium, and vitamin D. Children of all ages are falling short of these recommendations, and they rely on school meals to meet their nutritional needs.

    “Today’s announcement helps to encourage school meal participation by maintaining a wider variety of milk offerings that kids enjoy. Milk is a major source of calcium, potassium, phosphorus, and vitamin D in the diets of children 2-18 years of age. In fact, about 73 percent of the calcium available in the food supply is provided by milk and milk products. Moreover, it has been proven time and again in schools across the country that when flavored milks are available, kids not only drink more milk—they are more likely to participate in the school meal programs and waste less food, thus truly benefiting from dairy’s important vitamins and nutrients.

    “Yet for years, schools have been burdened with regulations that hamper their ability to provide children with nutrient-dense dairy products. First, whole milk disappeared; then 2%; and then finally 1% flavored milk, which kids prefer compared to non-fat flavored milk. On top of that, schools have more recently had to plan for overly stringent sodium targets that would effectively remove cheese from the menu since sodium is necessary in cheesemaking.

    “IDFA is grateful to USDA for providing needed certainty around school meal flexibilities in the near-term, and we look forward to working with the Secretary and the Department to ensure that nutrient-rich dairy products remain core long-term components of the child nutrition and school meals programs.”

    Jim Mulhern, President and CEO of NMPF added, “Ensuring kids have access to the nutrients they need to grow and thrive is a top priority for dairy. We thank USDA for the rule’s provision that maintains schools’ ability to serve low-fat, 1% flavored milk. One percent flavored milk is not only fully consistent with the Dietary Guidelines for Americans, it is also a nutrient-dense, low-fat healthy option kids will choose to drink. I would also like to thank Representatives Joe Courtney and G.T. Thompson for their long-time leadership on this issue. We look forward to continuing to work with them, USDA, and others to help ensure everyone has access to nutritious food.”

  • Bipartisan Ocean Shipping Reform Act Calls for Swift Passage to Give Dairy Companies New Tools to Address Supply Chain Bottlenecks

    The National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association commended lawmakers for introducing bipartisan Senate legislation to address the shipping challenges the dairy industry and other U.S. agricultural sectors are facing. The legislation, should it become law, would help alleviate delays and disruptions at U.S. ports that have been a critical part of the export supply chain challenges plaguing U.S. exporters.

    Sponsored by Senators Amy Klobuchar (D-MN) and John Thune (R-SD), the Ocean Shipping Reform Act (S. 3580) is the Senate response to the House version (HR 4996) passed by a wide bipartisan vote (364 – 60) in December. Senators Baldwin (D-WI), Hoeven (R-ND), Stabenow (D-MI), Marshall (R-KS), Peters (D-MI), Moran (R-KS), Blumenthal (D-CT), Young (R-IN), Kelly (D-AZ), Blackburn (R-TN), Booker (D-NH), and Ernst (R-IA) also joined as original cosponsors of the bill.

    “The supply chain challenges that have beset American exporters pose significant difficulties for U.S. dairy producers, causing over $1.3 billion in export losses for our sector during the first three quarters of 2021,” said Jim Mulhern, president and CEO of NMPF. “We greatly appreciate the leadership of Sens. Klobuchar and Thune to introduce legislation that will encourage many of the ocean carriers to stop unfair practices. We are committed to working with the Senators and their colleagues in Congress as legislation moves forward to ensure that a final law delivers the changes our exporters most urgently need to see.”

    “This Senate bill takes strong strides to address many of the challenges dairy exporters have faced, including securing export vessel bookings and combatting unfair detention and demurrage charges, vital issues to ensure our products reach their intended destinations,” said Krysta Harden, president and CEO of USDEC. “When we can’t export our products, we not only jeopardize our foreign customer relationships and markets, but we also lose value-added opportunities that create jobs and investment in the United States. We look forward to continuing to work with Senators Klobuchar and Thune, and others in Congress, to address outstanding concerns and provide for the strongest possible reforms.”

    Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association (IDFA) added, “The Ocean Shipping Reform Act will provide real, long-term solutions for the myriad issues congesting U.S. ports and slowing U.S. dairy exports. The bill places disciplines on ocean carriers’ ability to decline export cargo and when demurrage can be charged, helping to get U.S. dairy exports on the water in a timelier manner. It also strengthens the oversight authority of the Federal Maritime Commission over ocean carriers, the majority of which are foreign owned.”

    “IDFA recently announced a Dairy Exports Working Group with the Port of Los Angeles and shipping company CMA CGM to identify and address supply chain issues hindering U.S. dairy product exports. We are hopeful that the Senate will act with urgency to move the Ocean Shipping Reform Act, sending a signal across food and agriculture that a new group of ‘supply chain problem solvers’ has arrived to remove obstacles and invest in long-term solutions that help American agriculture to thrive.

    “Unlike 20 years ago when we exported very little, the U.S. dairy industry today is the third-largest dairy exporting nation in the world. Today, we need America’s transportation and export systems to function with a level of precision and efficiency that sets a global standard so U.S. dairy can achieve our goal of becoming the world’s leading dairy supplier within a decade.”

    These dairy organizations will continue to work with the Senate to strengthen the measure further as it advances through Congress. Beyond legislation, they will also continue to work with Congress and the administration to identify additional measures to ease the congestion – including calling for further expanding port hours of operation, increased data transparency, and investments in key supply chain infrastructure.

  • IDFA, Port of Los Angeles, and CMA CGM Form Initiative to Advance Dairy Exports

    The International Dairy Foods Association (IDFA), the Port of Los Angeles, and CMA CGM — a world leader in shipping and logistics — announced today the formation of a Dairy Exports Working Group aimed at identifying and addressing supply chain issues hampering U.S. dairy product exports. The group will focus on seaports on the West Coast of the United States, where a majority of dairy products begin their export journey, as well as opportunities to streamline the movement of products from the interior of the United States to the West Coast.

    The announcement was made at Dairy Forum 2022 in Palm Desert, Calif., by Gene Seroka, Executive Director of the Port of Los Angeles, and Michael Dykes, D.V.M., President and CEO of IDFA. Dairy Forum is an annual conference organized by IDFA that attracts the dairy industry’s top leaders and executives.

    The Dairy Exports Working Group will examine several ocean shipping and rail challenges and solutions, including:

    • Exploring ways to aggregate and streamline U.S. dairy exports from multiple suppliers to ensure more consolidated and attractive bookings;
    • Working to increase rail availability in the interior of the United States to reach non-coastal exporters;
    • Determining viability of implementing a “fast lane” concept for vessels agreeing to depart full or with fewer empty cargo containers;
    • Defining agreed terms for exporters using empty containers currently languishing at U.S. ports; and
    • Establishing guarantees to fix and surpass ghost bookings.

    “U.S. dairy exports reached a near-record $6.4 billion in 2020 and continued to set a blazing pace in 2021 due to surging global demand, but the U.S. dairy industry could be exporting much more to destinations around the world if there was more reliability and predictability in the supply chain,” said Michael Dykes. “Our IDFA members are pleased to collaborate with the Port of Los Angeles and the CMA CGM Group in this Dairy Exports Working Group on potential market-based solutions to clearing bottlenecks at our West Coast ports and land and rail systems. This type of collaboration is essential to avoid significant future disruptions to the U.S. dairy supply chain that will result if exports continue to languish.”

    “American dairy exporters have been hard hit by supply chain challenges and trade policy that have made it difficult to get their goods to global markets,” said Port of Los Angeles Executive Director Gene Seroka. “I’m pleased to collaborate with our dairy industry partners and the CMA CGM Group to launch this working group and find solutions that will benefit not only the dairy industry but all American exporters. We look forward to others joining this important initiative.”

    Ed Aldridge, President of CMA CGM and APL North America, stated, “At CMA CGM, we are committed to supporting America’s farmers and taking bold actions to ensure they get their goods to market in a timely manner. With the Dairy Exports Working Group, we will have all the right players in the room. This collaborative partnership will enable us to quickly implement innovative solutions designed to not only help the dairy industry with current supply chain challenges, but also to pave the way for the future.”

    “I am hopeful that the formation of the Dairy Exports Working Group begins a new period of collaboration among dairy processors, ports, and shipping companies to find market-based solutions for the supply chain challenges impacting U.S. dairy exporters,” said David Ahlem, President of Hilmar Cheese Company and Chair of the IDFA Executive Council.

    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 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 and its members are committed to working constructively with our partners at the Port of Los Angeles and CMA CGM, as well as other interested ports, carriers, and other 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.

    Today’s announcement comes after weeks of talks between IDFA, member company leadership, and selected ports and carriers in an attempt to develop market-led solutions to the supply chain challenges facing U.S. dairy exports. IDFA has also been advocating heavily 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. IDFA is committed to seeking 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.

  • U.S. Dairy Consumption Beats Expectations in 2020 and Continues to Surge Upward Despite Disruption Caused by Pandemic

    The U.S. Department of Agriculture (USDA) released their annual per-capita dairy consumption data today and the story, despite major shocks caused by the COVID-19 pandemic, remains America’s growing love for dairy products of all shapes and sizes. The information from USDA’s Economic Research Service (ERS) adds 2020 data to an accounting of per capita dairy consumption dating back to 1975 when the average American consumed just 539 pounds of dairy foods per year. Last year, the average American consumed 655 pounds of dairy in milk, cheese, yogurt, ice cream, butter, and other wholesome and nutritious dairy foods, demonstrating a resilient and growing love for all things dairy. The 2020 figure represents an increase of 3 pounds per person over the previous year.

    “What 2020 shows us is that Americans are choosing to include dairy in all parts of their day because it’s delicious, nutritious, and fits almost any occasion,” said Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA). “Despite challenges posed by the pandemic to all parts of the supply chain in 2020—including the near-overnight loss of the foodservice sector—per capita dairy consumption continued to surge upward thanks to growth in ice cream, butter and yogurt. Last year’s consumption figures are nearly 70 percentage points above the annual average, showing America’s growing appreciation for their favorite dairy products.”

    Ice cream continued to rebound and grew by 6% year-over-year in 2020. Meanwhile, yogurt consumption jumped 3% and butter notched a 2% increase. Milk and cheese remained resilient throughout 2020 despite the closure of restaurants, cafes, schools, and other institutions that drive demand. Overall, ERS data show American dairy consumption continuing its growth trajectory. Since USDA began tracking dairy consumption in 1975, per capita consumption has grown 22%.

    “How we consume our dairy is different than a generation ago,” said Dykes. “Americans eat more dairy than we drink and we include dairy in all meals and occasions as well as for fitness and recovery, to live a healthy life, and to celebrate those special moments. With a greater focus on producing sustainable foods, dairy will continue to grow as a category well into the future.”

    Select charts of per capita dairy consumption in the United States: