Our California and U.S. dairy industry as a whole has come to rely heavily on exports, and continues hitting record sales with key trade partners and growing commodities, such as cheese. Despite the uncertainty accompanying the Trump administration and looming retaliatory tariff threats, the US Dairy Export Council remains committed to growing export market opportunities for the U.S. dairy industry. Rebecca Nyman, current Chair of the US Dairy Export Council, met on California Ag Network with Matthew Malcolm to share the council’s recent work optimism for current and future prospects for increasing oversea dairy shipments. Read more in California Dairy Magazine.
Tag: US Dairy Export Council
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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.
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U.S. Dairy Exports to Benefit from New USDA-FDA Partnership
The U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) today signed a Memorandum of Understanding (MOU) that will establish an interagency process to further support exports of U.S. dairy products. Both agencies play critical roles in facilitating foreign sales of American-made dairy products, which is recognized and appreciated by the U.S. dairy industry. This MOU will draw upon the expertise of FDA as well as USDA’s Agricultural Marketing Service (AMS) and Foreign Agricultural Service (FAS) to deepen and streamline their work together on the issues facing dairy exports to the benefit of U.S. dairy farmers and manufacturers.The MOU, a project underway within the agencies since 2017, is designed to maximize efficiency in the U.S. government’s support for U.S. dairy export requests from foreign governments by outlining each agency’s primary areas of responsibility for dairy exports. For example, FDA’s responsibilities as outlined in the MOU focus on ensuring dairy products are safe and liaising with USDA’s Agricultural Marketing Service (AMS), Foreign Agricultural Service (FAS), and foreign governments on relevant food safety questions as necessary. AMS’s responsibilities focus on providing sanitary certificates and other export-related services to dairy exporters, such as export verification programs or facilitating the submission of facility questionnaires to foreign governments as needed. FAS’s responsibilities focus on facilitating sanitary certificate negotiations and liaising with foreign governments on matters related to dairy exports.
“Today’s announcement of an interagency MOU on dairy trade between USDA and FDA is the result of years of conversation and efforts between stakeholders within the U.S. dairy industry and the U.S. government to establish consistent guidance on tackling the rising number of export challenges facing our industry. This MOU will help our industry continue to grow in an increasingly competitive global environment,” said Tom Vilsack, president and CEO of USDEC.
“This new partnership ensures that the staff at USDA and FDA are working together in the most efficient way possible to lower barriers for our farmer’s dairy exports. Increasing U.S. dairy exports will strengthen the health of our farmers and rural communities, which is more important than ever as America’s dairy industry faces new and unprecedented challenges. We appreciate all of the hard work from both agencies and stand ready to support the USDA and FDA’s commitment to open new doors for U.S. dairy exports,” said Jim Mulhern, president and CEO of NMPF.
IDFA President and CEO Michael Dykes, D.V.M., had this to say about the MOU: “We are excited to share this good news with IDFA’s members across the dairy supply chain. IDFA has been a tireless advocate for this kind of federal agency efficiency and cooperation, and seeing this collaborative effort come to fruition to support U.S. dairy exports is a tremendous accomplishment and a huge value-add for the dairy industry. IDFA appreciates the efforts of USDA and FDA to finalize this MOU and facilitate our industry’s global growth.”
Beyond individual agency responsibilities, the MOU outlines how the agencies will communicate and collaborate to ensure dairy export markets remain open when new foreign requirements arise requiring the U.S. government’s response, such as recently implemented or revised certificates in China or Taiwan. The MOU also provides a published reference of each agency’s involvement in the export of U.S. dairy products, which will help address questions from foreign governments that may not have previously understood that more than one agency is involved in dairy exports.
“In recent years, more and more countries have erected obstacles and barriers to U.S. dairy exports, including increasingly complex requirements for statements, certificates, questionnaires, and facility listings,” said Dykes. “While the U.S. government opposes overly burdensome requirements on behalf of U.S. food and agricultural exporters, U.S. officials are barraged with an influx of requests from foreign governments that make it increasingly difficult for all U.S. parties. This MOU keeps our dairy industry and U.S. government a step ahead, positioning U.S. dairy for growth by streamlining roles and resources already in place.”
In 2019, the United States exported $5.9 billion in dairy products, one of the strongest years on record for dairy exports. The MOU is effective immediately and can be reviewed here.