2023 NMPF Annual Report

Annual Report

2023

Table of Contents 4

8

GOVERNMENT RELATIONS

16

ECONOMICS

REGULATORY AFFAIRS

Progress on Farm Bill and Nutrition

Leadership Pushing Back on Toward Improved Anti-Dairy Efforts Federal Orders

20

24

TRADE POLICY

FARM PROGRAM

Trade Strengthens U.S. Dairy Worldwide

2

ABOUT US

28 REACHING OUT

Updates Ahead

3

LETTER FROM THE PRESIDENT AND CEO

Dairy Advances to Summit and Beyond

32

STAFF

33

BOARD OF DIRECTORS

About Us Established in 1916 and based in Arlington, Virginia, the National Milk Producers Federation (NMPF) carries out policies that advance the well-being of dairy farmers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy farmers on Capitol Hill and with government agencies.

For more than 100 years, NMPF has been one of the country’s most recognized and influential membership organizations. Advocating policies determined by its members, the positions expressed by NMPF are the result of grassroots work by dairy farmers and their cooperatives on national policy.

2 NATIONAL MILK PRODUCERS FEDERATION

Letter from the President and CEO In 2023, leadership defined NMPF. Guided by the unanimous support of our member cooperatives, we led the industry through a challenging hearing on the Federal Milk Marketing Order system. We also led advocacy for improvements in the Dairy Margin Coverage program, successfully pushed against EPA overreach on emissions, and gained ground in the fight against FDA guidance on plant-based beverage labels.

We at the National Milk Producers Federation have established a record of accomplishment that’s the envy of the ag-policy community.

That’s through leadership.

That’s what we do.

GREGG DOUD, NMPF President and CEO

These challenges continue in 2024, and we continue to fight. It’s the nature of Washington that nothing is ever truly “won,” because as soon as a victory is achieved, a competing interest analyzes the outcome and quickly creates a strategy to roll it back.

But over time, through effective advocacy and diligent attention to the interests of dairy farmers and the cooperatives they own, we at the National Milk Producers Federation have established a track record of success that’s the envy of the ag-policy community.

That’s through leadership. That’s what we do.

I am honored to take the reins this year with an organization that was ably led for the past decade by Jim Mulhern. This is the first NMPF Activities & Accomplishments report presented under my leadership, and I couldn’t be more proud of the staff and farmer leadership that makes this organization go. I am proud of the work we do, and I hope these pages will provide you with just a few of the many reasons why.

GREGG DOUD President and CEO, NMPF

ANNUAL REPORT 2023

3

GOVERNMENT RELATIONS

Progress on Farm Bill and Nutrition 4 NATIONAL MILK PRODUCERS FEDERATION

Won permanent inclusion of Supplemental DMC in one-year extension of Dairy Margin Coverage program.

Helped secure overwhelming House vote to approve returning 2% and whole milk to school meal programs.

Assisted House ag labor working group in developing its ag workforce report and recommendations.

Advanced legislation to spur approval of innovative products that help reduce enteric methane emissions.

Secured more than $90 million in USDA voluntary conservation funding.

NMPF’s 2023 government relations work focused on the upcoming five-year farm bill while advancing nutrition and sustainability policy and pointing the way toward further progress on ag labor reform.

Farm Bill on the Horizon Agricultural stakeholders were prepared for 2023 to be the year of a new farm bill.

The current law instead was extended for one year after extensive preparatory work.

NMPF’s groundwork paid off. NMPF’s Board of Directors voted on June 7 to build on the organization’s successes in the 2018 farm bill that overhauled the dairy safety net and gave producers broader access to a range of risk management tools. The plan supports changing the Dairy Margin Coverage (DMC) program’s production history calculation to better reflect current production. NMPF also is seeking to restore the previous “higher of” Class I mover

formula and language to direct USDA to conduct mandatory plant cost studies every two years as part of its Federal Milk Marketing Order modernization efforts.

One goal has already been met via the extension created in November, when the Supplemental DMC program, enacted in 2020 to provide farmers a partial production history update, was folded into the underlying DMC safety net. This important fix merges these two programs into one, providing certainty that the dairy industry will not have seek separate extensions in future years.

Whole Milk Bill Gains Overwhelming Support NMPF’s years of effort to expand dairy access in school meal programs paid off in December via a commanding 330–99 House vote to approve the Whole Milk for Healthy Kids Act. This bipartisan bill, led by Agriculture Committee Chair G.T.

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NMPF ORGANIZED AND LED 58 DAIRY ORGANIZATIONS IN SUPPORT OF THE WHOLE MILK FOR HEALTHY KIDS ACT Left: New York dairy farmer Blake Gendebien, an Agri-Mark member, joined a Senate Agriculture Committee hearing.

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330–99 Bipartisan House vote to approve the Whole Milk for Healthy Kids Act

House Agriculture Committee members toured Alliance Dairies, a Dairy Farmers of America member, in Trenton, Florida.

Thompson, R-PA, and Rep. Kim Schrier, D-WA, would allow schools to serve 2% and whole milk in meal programs in addition to the skim and 1% varieties currently allowed.

NMPF built broad bipartisan support for the measure, including organizing a letter from 58 dairy organizations to the House Committee on Education and the Workforce urging the committee to advance the bill. NMPF’s focus is now on the Senate, where its version of the bill led by Sens. Roger Marshall, R-KS, and Peter Welch, D-VT, also has bipartisan support.

The whole milk win underscored NMPF gains via its coordinated 6 NATIONAL MILK PRODUCERS FEDERATION

legislative and regulatory approach toward advancing nutrition policy.

While whole milk gained traction in Congress, support for dairy’s benefits in all its compositions also made progress before federal agencies, ranging from USDA programs to the drafting of updated Dietary Guidelines for Americans due in 2025.

NMPF engaged members of Congress to call on USDA to protect dairy in the Women, Infants and Children (WIC) program and in school meals. Beginning in March 2023 and continuing through the summer, NMPF staff helped organize five bipartisan messages sent from

lawmakers to the department that explained the vital importance of dairy’s nutrients for the life stages covered by WIC, urged USDA not to reduce the amount of dairy that participants can access through the program and called on the department to keep allowing flavored milk in schools as a means to offer the nutrients they need to grow and thrive. The letters were accompanied by multiple USDA meetings to discuss technical or specialized information beyond its submitted comments.

Advancing Ag Labor NMPF continues to advance dairy’s workforce needs, assisting the House Agriculture Committee’s bipartisan ag labor working group as it makes recommendations to improve the H-2A ag guestworker program. NMPF first presented to the panel’s members dairy’s workforce needs and the historical legal explanation for why dairy cannot access H-2A; it then served as the industry policy resource for the working group as it worked on its interim report, providing members and their staff additional information and insights. The bipartisan interim report made a compelling case for allowing dairy and other year-round sectors to access the program.

NMPF will continue working with the House ag labor working group as it drafts its final report with reform recommendations, expected to be released in the first half of this year.

for use. The Senate HELP Committee passed the measure last June, by a vote of 19–2. NMPF in December worked with Reps. Greg Pence, R-IN, and Kim Schrier, D-WA, to introduce a companion measure in the House, adding momentum for its enactment.

Once enteric-reducing feed additives are approved, dairy farmers will need resources and support as they begin using the products. NMPF worked successfully with USDA to secure for the dairy industry more than $90 million under the Regional Conservation Partnership Program to help make this possible. The projects awarded to NMPF member cooperatives and partners under the program will help dairy producers nationwide in this effort.

$90 million SECURED FOR THE DAIRY INDUSTRY UNDER THE REGIONAL CONSERVATION PARTNERSHIP PROGRAM

Senate Agriculture Committee member Sen. Tina Smith, D-MN, visited Bombay Dairy, where she spoke with owner Wayne Lexvold, a First District Association member-owner.

Navigating Toward Net Zero NMPF reinforced its efforts to secure wins for dairy farmers as they continue to work with a goal of becoming greenhouse gas neutral or better by 2050.

NMPF partnered with Sens. Roger Marshall, R-KS, and Tammy Baldwin, D-WI, to advance legislation enabling the Food and Drug Administration to review animal feed ingredients as food, not as drugs, which would help unlock animal feed ingredients to reduce enteric methane emissions by as much as 30 percent, a key tool in dairy’s sustainability efforts once approved

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ECONOMICS

Leadership Toward Improved Federal Orders 8 NATIONAL MILK PRODUCERS FEDERATION

Defined and led industry discussion of generational modernization of the Federal Milk Marketing Order system.

Supported more than 107.7 million lbs. of dairy exports in 2023, with a milk equivalent of 922.1 million lbs. through the Cooperatives Working Together program.

Offered expert insight into U.S. and global dairy markets to members, farmers and staff through a full suite of industry-serving, market intelligence publications, as well as conference presentations and media outreach.

NMPF economics staff led a once-ageneration effort to modernize the Federal Milk Marketing Orders (FMMO) system while providing timely and insightful analysis to its members.

The five parts of the proposal heard at the hearing are:

FMMO Hearing Sets Record

• Making interim increases in the make allowances in the component price formulas, pending USDA conducting mandatory, audited cost studies under authority being sought in the upcoming Farm Bill

NMPF economics staff work in 2023 and early 2024 was dominated by the first comprehensive hearing on FMMO pricing formulas since 2000, a USDA effort that simply would not be happening without NMPF’s leadership.

More than two years of NMPF study, discussion, and leadership, featuring more than 200 meetings and exhaustive, member-led examination of all issues that culminated with unanimous support from NMPF’s board, was followed by the organization’s leadership in the FMMO hearing that lasted from August through January.

• Updating the milk composition factors in the skim milk price formulas • Discontinuing use of barrel cheese in the protein component price formula

• Returning to the “higher-of” Class I mover • Updating the Class I differential pricing surface The hearing itself was held in three stages in Carmel and Zionsville, IN. NMPF’s effort was organized and directed by marketing order expert Jim Sleper and anchored by economist Dr. Peter Vitaliano, who introduced each NMPF proposal at the hearing and held the informal record for the most time on the stand—more than 20 hours. Meanwhile,

108 million pounds OF DAIRY EXPORTS SUPPORTED BY THE CWT PROGRAM IN 2023 Left: Frank Doll, a Prairie Farms member-owner, with his family on their Illinois dairy farm.

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NMPF staff, the FMMO modernization task force of economists and marketing experts from member cooperatives, and NMPF’s attorneys worked together to present NMPF’s positions and justifications, often enduring withering cross-examination, mostly by lawyers representing vested processor interests.

NMPF’s package is a balanced mix of changes designed to correct the growing gap between the current dynamic dairy industry and the turn-

of-the-century conditions locked into the current pricing formulas. Processor interests adamantly dismissed, often with little or no basis, NMPF arguments that this growing disconnect has created increasingly disorderly marketing conditions, threatening the basic functioning of the orders, instead offering proposals that opposed anything perceived as raising farmer prices and supported everything perceived as reducing prices for farmers and enriching processors.

Colorado dairy farmer Chris Kraft, a DFA member-owner, participated in the FMMO hearing.

200+

meetings led to unanimous board support for NMPF’s proposal

10 NATIONAL MILK PRODUCERS FEDERATION

With the hearing’s conclusion, 2024’s next step is to develop and submit a lengthy and detailed briefing document summarizing the elements of the hearing record that support NMPF’s positions as well as its opposition to those proposals by others, which will be followed by USDA’s recommendations and ultimately, a farmer, vote, which may occur early next year.

USDA’s decision is likely to shape the future of dairy for the next generation. We are excited to continue our leadership in this critical area, and will fight for the best approaches to ensure that dairy farms prosper.

GREGG DOUD PRESIDENT AND CEO OF NMPF

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NMPF Thanks You On behalf of dairy farmers and the cooperatives they own, NMPF would like to thank everyone who has helped develop and advocate for our proposals to modernize the FMMO system. Your leadership and expertise have been critical to building a better dairy industry and improving farmer prosperity. While this list doesn’t include everyone important to the NMPF plan’s eventual success, by spotlighting those who testified at the hearing and worked on the task forces that developed our plan, we can show just how wide-ranging and comprehensive this effort has been.

Your work is inspiring, and it will guide us through the next year as we work to make NMPF’s proposals the bedrock of milk pricing.

Foremost Farms USA’s Darin Hanson testified at the FMMO hearing.

Craig Alexander, Upstate Niagara

Jeff Bushey, Nietzke Faupel

Clara Ayer, Agri-Mark Tom Bellavance, DFA Tom Beringer, Bongards Creameries Joe Brinker, DFA Dr. Scott Brown, University of Missouri Brent Butcher, United Dairymen of Arizona (UDA) Robert Chesler, UDA

Travis Campsey, Lone Star Milk Producers Doug Chapin, MMPA Catherine deRonde, Agri-Mark

Darin Hanson, Foremost Farms USA Brian Hemann, Lone Star Milk Producers

Frank Doll, Prairie Farms

Bryan Henrichs, Prairie Farms

Sara Dorland, Ceres Dairy Risk Management LLC

Evan Hillan, Land O’Lakes, Inc.

Emma Downing Reynolds, DFA

Sean Cornelius, DFA

Christian Edmiston, Land O’Lakes, Inc.

Calvin Covington, Southeast Milk Inc. (SMI)

Dr. Eric Erba, DFA Jared Fernandes, Land O’Lakes, Inc.

Paul Bauer, Ellsworth Cooperative Creamery

Ed Gallagher, DFA

12 NATIONAL MILK PRODUCERS FEDERATION

Marty Hallock, Ellsworth Cooperative Creamery

Blake Gendebien, Agri-Mark

Mike Herting, DFA Johnny Hiramoto, DFA Chris Hoeger, Prairie Farms Matt Hoff, Maryland & Virginia Milk Producers Cooperative Association (MDVA) Neil Hoff, DFA

Cricket Jacquier, Agri-Mark Hunter Jensen, J.D. Heiskell & Co. Mike John, MDVA Matt Johnson, DFA Dr. Harry Kaiser, Cornell University John Kang, DFA Dr. Stephen Koontz, Colorado State University Leland Kootstra, Frasier, LLP Chris Kraft, DFA Jodi Smith Krzysiak, Upstate Niagara Jennifer Lawrence, DFA

Dr. Mike Van Amburgh, Cornell University Rob Vandenheuvel, CDI Simon Vander Woude, CDI Karl Wedemeyer, DFA Tom Wegner, Land O’Lakes, Inc. Scott Werme, Agri-Mark Mike Wolkow, Associated Milk Producers Inc. (AMPI) Paul Windemuller, DFA Dr. Chris Wolf, Cornell University Steve Zalar, DFA

12,000

PAGES OF TESTIMONY WERE PRODUCED BY THE LONGEST-EVER USDA FEDERAL ORDER HEARING

Gerben Leyendekker, CDI Jeff Lyons, FarmFirst Dairy Cooperative Dr. Chuck Nicholson, University of Wisconsin Brittany Nickerson-Thurlow, SMI Ken Nobis, MMPA Eric Palla, DFA Brad Parks, MMPA Rick Podtburg, DFA David Pool, MDVA Carl Rasch, MMPA Brian Rexing, DFA Skylar Ryll, DFA Monty Schilter, NDA Kris Scheider, Foremost Farms Somula Schwoeppe, Prairie Farms Jeff Sims, Lone Star Milk Producers Kristine Spadgenske, DFA Steve Stout, DFA Perry Tjaarda, DFA Sietse Tollenaar, DFA

NMPF’s team and legal counsel participated in the entirety of the Federal Order hearing.

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CWT Heads Toward Renewal

65

REPORTS AND MARKET INTELLIGENCE PUBLICATIONS AND 70 PRESENTATIONS TO INDUSTRY AUDIENCES

Economics Unit De-Mystifies Dairy While leading FMMO modernization— arguably the most important task in today’s dairy industry—and preparing for renewing CWT, the joint economics unit NMPF formed with the U.S. Dairy Export Council (USDEC) in its first full year also provided best-in-class insight and perspectives on dairy market conditions both at home and around the world.

The team published more than 65 reports and market intelligence publications for NMPF members and delivered more than 70 presentations to industry audiences.

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Despite weak international demand in 2023, the Cooperatives Working Together (CWT) program helped support the industry through assisting export sales. Without CWT helping members win export sales, last year would have seen additional product overhang in the domestic market.

2024 is a renewal year for CWT, and continuing the program’s work to benefit the entire industry is key.

CWT member cooperatives in 2023 secured 553 contracts, representing 58.4 million pounds of American-type cheeses, 1.1 million pounds of butter, 46,000 pounds of anhydrous milkfat, 39 million pounds of whole milk powder and 9.1 million pounds of cream cheese. In milk equivalent, this is equal to 922.1 million pounds on a milkfat basis.

Other than cheese, all CWT-supported products increased in sales volumes in 2023. Notably, CWT assisted butter sales rose 73 percent and whole milk powder gained 27 percent. CWT supported sales also reached more countries than the year before—helping more consumers around the world access high-quality, U.S. dairy products.

NMPF leaders and CWT member co-ops began discussing innovative

ideas for where the program could expand support moving forward—all with the aim of moving more domestic dairy products overseas and expanding market access for American-made dairy goods.

Cheese was the top product supported by CWT in 2023.

COOPERATIVES WORKING TOGETHER 2023 IN REVIEW

553

bids accepted by CWT

992.1

24

country destinations

million pounds Milk Equivalent Supported

5

continents received CWT supported exports

2023 COMMITTED PRODUCT VOLUME (’000 LBS) CHEESE

39,031

WMP CREAM CHEESE BUTTER AMF

9,134 1,140 46

58,389

TOP THREE REGIONS BY PRODUCT VOLUME ASIA

46.9 million pounds

SOUTH AMERICA

37.6 million pounds

MIDDLE EAST & NORTH AMERICA

13.1 million pounds ANNUAL REPORT 2023

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REGULATORY AFFAIRS

Pushing Back on Anti-Dairy Efforts 16 NATIONAL MILK PRODUCERS FEDERATION

Successfully pushed EPA to hold off on ending the exemption for farm air emissions under the EPCRA regulation.

Filed extensive comments on plant-based milk alternative labeling guidance and filed a Freedom of Information Act request to push FDA toward transparency.

Successfully represented dairy farmer needs at the National Conference on Interstate Milk Shipments.

NMPF’s regulatory team in 2023 responded to challenges ranging from environmental regulation to beverage labeling while ensuring dairy farmers are well-represented in all regulatory discussions facing the industry.

EPA Backs Off on Emissions NMPF’s regulatory staff gained a years-earned win in November when the Environmental Protection Agency (EPA) decided to solicit information on a proposed end to an exemption from reporting ammonia and hydrogen sulfide air emissions from manure under the Emergency Planning CommunityRight-to-Know Act (EPCRA) rather than to simply overturn that exemption. The advanced notice of proposed rulemaking all but ensures that the Biden Administration will not overturn the exemption, which benefits dairy, before the end of the presidential term that ends in 2025.

NMPF and animal agriculture groups since 2019 have worked with EPA to promulgate the EPCRA exemption after

securing a congressional exemption under the FARM Act in March 2018 for the same type of reporting under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). EPCRA and CERCLA are separate but interrelated environmental statutes. Both exemptions remain in place today, but while the CERCLA exemption would require congressional action, EPA retains the authority to overturn the EPCRA exemption.

FDA Acknowledges Plant-Based Flaws FDA in 2023 released a proposed definition for healthy; proposed guidance on plantbased milk alternatives; and researched what front-of-pack labeling would look like.

NMPF has been vocal on each issue.

NMPF submitted extensive comments July 30 to FDA on draft guidance on plantbased beverages, offering a balanced tone appreciating the agency’s acknowledgment of the public health concern regarding nutritional confusion but emphasizing

150

MORE THAN 150 ADVOCATES SUBMITTED COMMENTS TO FDA SUPPORTING PROPER MILK LABELING VIA AN NMPF CALL TO ACTION Left: An employee at Ellsworth Cooperative Creamery’s dairy processing plant.

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the guidance’s failure to end the decades-old problem of misleading plant-based labeling using dairy terminology. As the leading voice of American dairy producers, NMPF emphasized the importance of transparent product labeling to ensure consumer understanding and informed purchasing decisions and urged FDA to take prompt enforcement action against misbranded non-dairy beverages that resemble milk.

NMPF’s comments outline a solution to the misleading labeling practices existing in the marketplace today, and provide clear, truthful labeling options for marketers of plant-based beverages.

Accompanying the comments has

been a consistent media drumbeat on the inadequacy of both plant-based and lab-based dairy alternatives, a task made easier by recent declines in plant-based beverage sales as consumers turn away from inferior imitations.

Food Safety Leadership Through NCIMS NMPF successfully advocated on behalf of dairy farmers at the National Conference on Interstate Milk Shipments (NCIMS), ensuring that any changes would be neutral or favorable for members.

Milk samples from a United Dairymen of Arizona plant.

72

proposals submitted to revise the Pasteurized Milk Ordinance

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Dairy stakeholders met in Indianapolis to address 72 proposals submitted to revise the Pasteurized Milk Ordinance (PMO) and its related documents with 40 of those proposals being accepted. Each NMPF-submitted proposal achieved a positive outcome.

FDA announced its plan to go through all the Memoranda of Information (M-I) issued and determine which meets the M-I definition and which does not. This issue snowballed after an inquiry from NMPF on behalf of a member regarding an M-I which said a Grade A milk plant had to be delisted from the Interstate Milk Shipments program when ownership transferred

until it was reinspected. NMPF wrote to FDA asserting the agency had not legal authority to delist the plant. FDA’s legal department agreed and has ordered all M-I’s to be reviewed; a number of them have already been revoked.

Clay Detlefsen, senior vice president and staff counsel, also joined the U.S. Dairy Innovation Center’s Food Safety Operating Committee to represent member needs and keep a pulse on what is happening in the greater industry.

Demonstrating Global Influence on Animal Health NMPF’s Chief Science Officer, Dr. Jamie Jonker, has been appointed to the Global Leaders Group on Antimicrobial Resistance (AMR) established in November 2020 following the recommendation of the Interagency Coordination Group on Antimicrobial Resistance to strengthen global political momentum and leadership on AMR. The group collaborates globally with governments, agencies, civil society and the private sector through a One Health for all species approach to advocate for prioritized actions for the mitigation of drug resistant infections through responsible and sustainable access to and use of antimicrobials. The leaders’ group is administered by the Quadripartite Joint Secretariat on Antimicrobial Resistance, a joint effort by the Food and Agriculture Organization of the United Nations, the United Nations Environment Program, The World Health Organization, and the World Organization for Animal Health.

NMPF’s Dr. Jamie Jonker speaks at the first G20 Symposium on Sustainable Livestock in Anand, India.

Jonker participated in several virtual and in-person international forums with AMR experts, building toward the United Nations General Assembly High-Level Meeting on AMR this September.

Residues Continue Decline NMPF’s leadership in antibiotic use and residue testing through the veterinary oversight standards in

<0.001%

the FARM Animal Care Program and long-term commitment to the residue testing requirements in the PMO continue to pay dividends.

Less than seven-hundredths of one percent tested positive for antibiotic residues last year, according to the 2023 National Milk Drug Residue Database annual report released on Dec. 15 by FDA. The data illustrates the continued long-term national pattern of improvements in milk quality practices. Of the approximately 3.3 million milk pickup tankers tested in the past year, only 238 (0.001%) yielded a positive result. The number of samples tested (tankers, packaged products, producer samples) and reported positive decreased from 424 in 2022 to 345 in 2023; no pasteurized packaged dairy products out of 28,842 tested were found to have an antibiotic residue.

MILK TANKERS YIELDED A POSITIVE RESULT WHEN TESTED FOR ANTIBIOTIC RESIDUES, INDICATING INCREASING MILK QUALITY

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TRADE POLICY

Trade Strengthens U.S. Dairy Worldwide 20 NATIONAL MILK PRODUCERS FEDERATION

Fought to safeguard export sales access to markets around the globe by addressing and preventing trade barriers in key markets.

Formed and deepened alliances with eight dairy and agricultural organizations worldwide to oppose anti-trade and anti-dairy policy proposals.

Guaranteed the right to use the common name “gruyere” in the U.S. market and prompted Congress to introduce the SAVE Act to secure market access for U.S. cheesemakers.

In close partnership with the USDEC, NMPF’s trade policy activities support U.S. dairy exports, helping secure the industry’s long-term success.

• Addressing specific trade barriers, such as Halal requirements in Egypt, sodium regulations in Colombia and burdensome import questionnaires in Costa Rica

Tackling World Trade Barriers

• Ensuring that growing anti-trade sentiment in Mexico and throughout Latin America does not translate into harmful policies

NMPF’s work to maximize U.S. dairy’s market access takes on even greater significance as the United States continues to fall behind competitors in negotiating trade agreements and other governments adopt more protectionist stances. These efforts include: • Advancing tariff reduction initiatives in key markets, including the United Kingdom, Thailand and the Philippines • Focusing on expediting and renewing dairy facility registrations in Indonesia and China, and pursuing workable solutions to proposed regulatory compliance issues in the European Union, the United Kingdom and Saudi Arabia • Working to preserve common food names in Australia and Chile during their Free Trade Agreement negotiations with the European Union

Building Global Alliances NMPF formed and deepened partnerships with dairy and agriculture organizations all over the world that support pro-dairy, pro-trade and science-based rules as many governments regress toward protectionist stances and ill-advised policies.

NMPF and USDEC signed a memorandum of understanding with European dairy trade organization Eucolait following that group’s May annual meeting in Poland to nurture the common ground the two industries share on trade, innovation and dairy’s image around the world.

Strengthening ties in Asia, NMPF formalized a “Letter of Friendship” with

8

THE TRADE POLICY TEAM FORMED AND DEEPENED ALLIANCES WITH EIGHT DAIRY AND AGRICULTURAL ORGANIZATIONS WORLDWIDE Left: MMPA’s milk processing plant in Ovid, Michigan.

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JA-Zenchu, Japan’s Central Union of Agricultural Cooperatives, during a July trip to Japan to join forces in promoting dairy-friendly policies that support dairy farmers in the two countries.

Shortly thereafter, NMPF and USDEC signed a July 27 agreement with the Italian Dairy Association, Assolatte, to promote the nutritional benefits of dairy products and support pro-farmer policies in international forums.

Common Names: Securing a Win, Inspiring Legislation NMPF won a significant victory on behalf of American cheesemakers last March, when the U.S. Court of Appeals for the Fourth Circuit ruled that “gruyere” is a common name for a variety of cheese, and not an indication of country of origin.

NMPF’s trade policy team worked closely with USDEC and the Consortium for Common Food Names (CCFN) to show the widespread use of “gruyere” in the U.S. marketplace and prove that non-European companies should keep their right to make and sell gruyere cheese in the United States.

In rejecting French and Swiss consortiums, who had hoped to trademark the term in the U.S. market, the court also set an important precedent that the European Union cannot come into the United States and confiscate common food and beverage names.

Building on its mission to protect common names, NMPF, USDEC and CCFN educated U.S. congressional members and staff on the importance of the issue to America’s dairy farmers,

22 NATIONAL MILK PRODUCERS FEDERATION

NMPF’s Shawna Morris (left) participated in a panel discussion with USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor and Chief Agricultural Negotiator Doug McKalip.

inspiring the introduction of the Safeguarding American Value-Added Exports (SAVE) Act on May 17.

Outlined and welcomed by the NMPF trade policy team, the SAVE Act would direct U.S. administrations to prioritize the protection of common food and beverage names in two ways: • By instructing the Secretary of Agriculture to compile a definitive list of common names that are routinely affected by the European Union’s geographical indications restrictions in overseas markets • By explicitly directing the Secretary of Agriculture to work with the U.S. Trade Representative to proactively negotiate the protection of those common names with trading partners The NMPF trade policy team is working with the bill’s congressional sponsors to ensure that it is incorporated into the next farm bill.

Representing U.S. Dairy’s Interests at International Forums The NMPF trade policy team served as U.S. dairy’s advocate at multiple international events in 2023, ensuring that the industry has a voice in the policymaking processes that impact the dairy sector. Those forums include the World Trade Organization, the World Intellectual Property Organization, CODEX Alimentarius, the Food and Agriculture Organization and the World Health Organization, among others.

These international forums represent unique opportunities to educate and engage relevant policymakers and advocate for global policies that work for the U.S. dairy industry.

It is often said in Washington D.C., and I’ve heard it said and I’ve said it myself, that dairy as an industry punches way above its weight.

TOM VILSACK U.S AGRICULTURE SECRETARY

ANNUAL REPORT 2023

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FARM PROGRAM

Updates Ahead 24 NATIONAL MILK PRODUCERS FEDERATION

Updated FARM Animal Care standards, with implementation scheduled for mid-year.

Launched FARM Biosecurity–Enhanced to protect dairy cattle, build resiliency and ensure business continuity in the event of a Foot-and-Mouth Disease outbreak.

Coordinated testing on volunteer farms nationwide to further development of the RuFaS model for use in FARM Environmental Stewardship.

The FARM Program throughout 2023 strengthened and enhanced its five program areas: Animal Care, Antibiotic Stewardship, Biosecurity, Workforce Development and Environmental Stewardship, with new versions of three program areas (Animal Care, Environmental Stewardship and Workforce Development) expected this year.

Animal Care Advances The FARM Animal Care Program completed its recommendations for Version 5 and received NMPF Board of Directors approval for the changes in June. Resources to outline the Animal Care Version 5 standards were drafted throughout the second half of the year to prepare for this year’s rollout. FARM Animal Care certified or re-certified 392 new and experienced animal care evaluators this year, who together completed 11,460 Animal Care Version 4 evaluations in 2023.

Since the start of Animal Care Version 4 in 2020, evaluators have completed 19,850 Animal Care Version 4 evaluations, covering about 85 percent of the FARM Animal Care

Program participants. The remaining 15 percent are due to be completed in the first half of 2024.

FARM Animal Care also received Professional Animal Auditor Certification Organization recertification for the third year in a row. The Calf Care Quality Assurance Program—a joint effort between the FARM Program, the Beef Quality Assurance, Veal Quality Assurance, and Dairy Calf and Heifer Association—continued program promotion in 2023.

Biosecurity-Enhanced Launches The FARM Biosecurity Program, developed in 2021 through a cooperative agreement with USDA National Animal Disease Preparedness and Response Program, in 2023 launched Biosecurity-Enhanced resources and training to complement the Everyday Biosecurity resources that began the previous year. The FARM Biosecurity– Enhanced program aligns with the Secure Milk Supply (SMS) Plan for Continuity of Business to provide dairy farmers with the

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FARM ANIMAL CARE ANIMAL CARE EVALUATORS WERE CERTIFIED OR RECERTIFIED IN 2023 Left: Stephen McKnight of River Breeze Farm, a DFA member-owner, checks heifers on his New York dairy farm.

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I’ve dairied for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm.

RANDY MOONEY NMPF CHAIRMAN

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tools needed to develop an enhanced biosecurity plan (EBP). These resources include:

Biosecurity and for state animal health officials reviewing EBPs in the FARM Database

• An online database to securely store producers’ EBPs. The database also gives producers the option to share a completed copy of their SMS EBP with state officials for review

• FARM Biosecurity-Enhanced resources, including a guide for developing an EBP, a user guide for the FARM Database-Enhanced Biosecurity, and the SMS Enhanced Biosecurity Premises Map checklist

• An engaging, online training that guides learners through developing EBPs using real-life dairy farms and interactive experiences, all at no cost • Tutorial videos on how to efficiently use the FARM Database-Enhanced

Stronger, enhanced levels of biosecurity will be needed to protect dairy cattle against the highly contagious Foot-andMouth Disease found in two-thirds of the world.

Molly McWilliams of J-Team Dairy, an MDVA member farm, in the milking parlor.

Workforce Development Highlights Progress The FARM Workforce Development (WFD) Program equips dairy owners and managers with tools to enhance their work environments. Since launching the FARM WFD evaluation in 2020, more than 500 evaluations covering human resources and safety topics have been conducted on farms that together employ more than 9,700 workers.

In 2023, the FARM WFD Task Force reviewed the existing evaluation tool and discussed minor proposed changes for the next version. The FARM Program continued to highlight farms using FARM WFD Program resources through FARM’s Impact Stories series on the FARM blog.

Environmental Stewardship Incorporating RuFaS

500

human resource and safety evaluations have taken place since launching the FARM WFD evaluation in 2020

FARM Environmental Stewardship (ES) continued its widespread program implementation, with evaluators conducting more than 1,000 evaluations. The FARM Program and Dairy Management Inc. are collaborating to incorporate the Ruminant Farm System (RuFaS) model for use in the next version of FARM ES. Data collection was completed on 25 volunteer farms in 2023 to evaluate the model’s performance on farms of varying geography, management style and size. The data collection also yielded valuable farmer and evaluator feedback for building the next version’s new platform, evaluator training curriculum and reference materials.

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REACHING OUT

Dairy Advances to Summit & Beyond 28 NATIONAL MILK PRODUCERS FEDERATION

Hosted the IDF – World Dairy Summit, convening industry leaders in first U.S.-hosted meeting in 30 years.

Passed torch to new President and CEO at year’s end.

Developed next generation of farmer leadership.

Expanded Dairy Voice Network.

NMPF outreach maximized rare opportunities to advance dairy’s story globally and enhance its domestic leadership, with efforts including hosting the International Dairy Federation (IDF) World Dairy Summit. A leadership transition also gave opportunities to advance dairy’s story, even as ties were strengthened throughout the dairy community.

A Showcase for U.S. Dairy NMPF played a leading role at the 2023 IDF World Dairy Summit in Chicago Oct. 16–19, as more than 1,200 dairy professionals from 55 countries registered to attend the summit, hosted by the United States for the first time since 1993.

Executive Vice President Shawna Morris served as co-chair of the summit, while NMPF staff and farmer leadership populated the conference with high-profile speaking engagements. The conference itself was an industry-wide partnership with leadership and funding from Dairy Management Inc., USDEC, numerous NMPF member cooperatives and a wide range of dairy organizations and businesses.

NMPF members’ leadership had the unique opportunity to meet with farmers and companies from around the world to share experiences and build relationships.

Along with technical tours showcasing U.S. dairy farms led and coordinated by the FARM Program and other partners, NMPF also organized the first-ever Young Farmer Roundtable. NMPF co-ops greatly contributed to the event’s success through their sponsorship, product donations and participation.

Mulhern Honored, Doud Welcomed Jim Mulhern, NMPF’s president and CEO in 2023, was also honored for his decades of service at the summit, as Agriculture Secretary Tom Vilsack honored him for his “exemplary leadership and decades of service to the U.S. dairy community.”

The pivot from Mulhern, who led NMPF for a decade, to new President and CEO Gregg Doud became a powerful opportunity to share dairy’s messages of both consistency and innovation as NMPF held its joint annual meeting with checkoff organizations in Orlando, FL, in November.

Top: USDA Secretary Tom Vilsack (left) awarded Jim Mulhern, NMPF’s former president and CEO, with a service and leadership award.

Left: Prairie Farms YCs Ben Selman, Amber Selman and Lorilee Schultz talk to Sen. Chuck Grassley, R-IA, during NMPF’s Dairy Policy and Legislative Forum.

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NMPF Chairman Randy Mooney commended U.S. dairy farmers for their persistence in supporting positive change for their industry at the meeting, noting that challenges are nothing new to producers and that their unity has brought progress toward better federal farm policy.

“We’re nourishing families around the world through milk’s unbeatable nutritional value,” said Mooney in remarks at the meeting held jointly

by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association. “I’ve dairied for a long time, through good times and bad times, but there’s never been a time that I haven’t laid my head down on my pillow at night and been proud of what I accomplished on my farm,” said Mooney, a DFA member-owner who farms in Missouri.

Doud, a former chief agricultural trade negotiator for the Office of the U.S. Trade Representative, predicted a bright future for dairy farmers and the broader industry.

“In terms of the world of protein, dairy is a huge part of the future,” Doud said. “My message to you today is very simple,” he said. “Let’s go.

Let’s get it in gear.”

YC Program Develops Next Generation NMPF’s Young Cooperators (YC) Program, led by Illinois dairy farmer and Prairie Farms member-owner Lorilee Schultz, reached more than 600 producers and cooperative staff through its 2023 offerings, highlighted by its own program at the annual meeting.

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Prairie Farms, Inc. received the Chairman’s Award for their Cave Aged Rinded Swiss, produced in Faribault, Minnesota.

About 75 younger dairy farmers and co-op coordinators representing 14 NMPF member cooperatives convened for intensive leadership discussions during the National YC Program’s annual Leadership and Development Program, which runs concurrently with the joint annual

meeting. The professional development event held Nov. 12–13 included two leadership workshops; a co-op leadership panel; an overview of dairy production in Florida; a tour of the largest cow-calf operation in the United States and a visit to Orlando’s historic Milk District.

The cooperative spirit animated the year, with NMPF YCs convening staff from nine member cooperatives for its first-ever coordinators training March 21–22, followed in June by the annual YC Program Dairy Policy and Legislative Forum in Washington, D.C. June 5–6. Forty-nine dairy farmers from 21 states participated in the event, which included discussions about political engagement and policy issues. YCs then headed to Capitol Hill to speak with members of Congress and their staff about NMPF priorities.

The YC Program also hosted a workshop at the World Dairy Expo in Madison, WI, along with activity at the IDF World Dairy Summit in Chicago later that month. Along with in-person programming, YC engagement was encouraged through its webinar series that included among its topics finding work-life balance on the farm, an update on NMPF’s FMMO modernization efforts and dairy farm disaster preparedness and management.

The YC program both trains the next generation of dairy leadership at NMPF cooperatives and creates an outlet for emerging dairy communicators, providing a pool of talent for other initiatives such as the Dairy Voice Network, which expanded in 2023 from 18 to 24 media-trained dairy farmer spokespeople representing NMPF positions before wider audiences.

Real Seal Generates Engagement NMPF also enhanced its outreach via its management of the American Butter Institute and the National Ice Cream Mix Association, both of which offer meetings and services to their members, and through overseeing the REAL Seal program, managed

by NMPF for more than a decade.

REAL Seal empowers America’s dairy marketers to play offense against plant-based imitators by proclaiming their use of genuine made-in-America dairy ingredients. NMPF invests the fees paid by REAL Seal users in a digital consumer marketing campaign touting the value of real dairy foods.

Media impressions in 2023 across all REAL Seal platforms totaled more than four million, spurred by 167 pieces of content generating 500,000 engagements on Facebook and Pinterest. One of the most popular series last year was “Imitators Can’t Measure Up,” which demonstrated the superior performance of real dairy in various dishes, resulting in nearly 400,000 impressions.

The campaign generated 475,000 engagements on Facebook alone with a 9.45 percent engagement rate, triple the industry average.

NMPF’s Real Seal campaign generated more than four million social media impressions based on clever images and marketing.

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THE DAIRY VOICE NETWORK EXPANDED ITS REACH OF MEDIA-TRAINED FARMER ADVOCATES TO 24 LEADERS WHO APPEARED IN NATIONAL PUBLICATIONS AND ON TV NETWORKS

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Staff GREGG DOUD President & CEO

BEVERLY HAMPTON PHIFER Senior Director, FARM Animal Care

SAGE SAFFRAN Manager, Sustainability Initiatives

NICOLE AYACHE Chief Sustainability Officer

MIQUELA HANSELMAN Director, Regulatory Affairs

SCOTT SANBORN Office Assistant

ALAN BJERGA Executive Vice President, Communications & Industry Relations

ABDULLAH IBRAHIMZADA Information System Analyst, FARM Program

EMILY YEISER STEPP Executive Director, FARM Program

PAUL BLEIBERG Executive Vice President, Government Relations

JAMIE JONKER Chief Science Officer and Vice President, Sustainability & Scientific Affairs

CHARLENE BOULDEN Executive Assistant to the Office of the President & CEO STEPHEN CAIN Senior Director, Economic Research & Analysis

LOUISE KAMALI Vice President, Meetings & Office Services PATRICIA KOCH Manager, Finance & Administration

JAIME CASTANEDA Executive Vice President, Policy Development & Strategy

WILL LOUX Senior Vice President, Global Economic Affairs

CLAY DETLEFSEN Senior Vice President, Regulatory & Environmental Affairs

SHAWNA MORRIS Executive Vice President, Trade Policy & Global Affairs

CHRIS GALEN Senior Vice President, Member Services & Governance

RACHEL RAVENCRAFT Manager, FARM Program Communications

KHADIJA GIBSON-WHITE Program Manager, Cooperatives Working Together

TONY RICE Director, Trade Policy

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THERESA SWEENEY-MURPHY Senior Director, Communications & Outreach PETER VITALIANO Vice President, Economic Policy & Market Research DAVID WEST Chief Administrative Officer ALLISON WILTON Coordinator, Economic Policy & Global Analysis BOBBY YI Senior Director, Information Technology

Board of Directors Executive Committee Randy Mooney, Chairman – DFA Simon Vander Woude, First Vice Chairman – CDI Cricket Jacquier, Second Vice Chairman – Agri-Mark Jay Bryant, Secretary – MDVA Pete Kappelman, Treasurer – Land O’ Lakes, Inc. Steve Schlangen, AMPI Rob Vandenheuvel, CDI Jimmy Kerr, Cooperative Milk Producers Association Melvin Medeiros, DFA Dennis Rodenbaugh, DFA Rick Burkhamer, Foremost Farms – USA Doug Chapin, MMPA Allan Huttema, NDA/Darigold Frank Doll, Prairie Farms Dairy Craig Caballero, UDA

Board of Directors James Jacquier, Agri-Mark – Connecticut Sheryl Meshke, AMPI – Minnesota Steve Schlangen, AMPI – Minnesota

Tom Beringer, Bongards’ Creameries – Minnesota

Jackie Klippenstein, DFA – Kansas

Andy Mason, Land O’ Lakes, Inc. – Maryland

Brad Anderson, CDI – California

Chris Kraft, DFA – Colorado

Pete Kappelman, Land O’ Lakes, Inc. – Wisconsin

Gerben Leyendekker, CDI – California

Melvin Medeiros, DFA – California

Robert Vandenheuvel, CDI – California Cory Vanderham, CDI – California Simon Vander Woude, CDI – California Neil Zwart, CDI – California Dale Mattoon, Cayuga Marketing – New York Jimmy Kerr, Cooperative Milk Producers Association – Virginia Brad Bateman, DFA – Utah Rob Byrne, DFA – Kansas Craig Edler, DFA – Wisconsin Travis Fogler, DFA – Maine Ed Gallagher, DFA – New York Jerrel Heatwole, DFA – Delaware Kent Herman, DFA – North Carolina Neil Hoff, DFA – Texas Harold Howrigan, DFA – Vermont Karen Jordan, DFA – North Carolina

Michael Lichte, DFA – Kansas

Chris Sukalski, Land O’ Lakes, Inc. – Minnesota

Randy Mooney, DFA – Missouri

Jeff Sims, Lone Star Milk Producers – Texas

Doug Nuttelman, DFA – Nebraska

Jay Bryant, MDVA – Virginia Joe Diglio, MMPA – Michigan

Jeff Raney, DFA – Pennsylvania

Doug Chapin, MMPA – Michigan

Brian Rexing, DFA – Indiana

Gib Martin, Mt. Joy Farmers Cooperative – Pennsylvania

Dennis Rodenbaugh, DFA – Kansas Dan Senestraro, DFA – Kansas Perry Tjaarda, DFA – California John Wilson, DFA – Kansas Dan Rosen, Ellsworth Cooperative Creamery – Wisconsin Jeff Lyon, FarmFirst Dairy Cooperative – Wisconsin Joe Becker, First District Association – Minnesota Rick Burkhamer, Foremost Farms USA – Wisconsin Greg Schlafer, Foremost Farms USA – Wisconsin Joey Fernandes, Land O’ Lakes, Inc. – California

Tony Freeman, NDA/ Darigold – Washington Allan Huttema, NDA/Darigold – Idaho Frank Doll, Prairie Farms Dairy – Illinois Jacob Larson, SMI – Florida Joe Jenck, Tillamook County Creamery Association – Oregon Craig Caballero, UDA – Arizona Kevin Ellis, Upstate Niagara Cooperative, Inc. – New York

NATIONAL MILK PRODUCERS FEDERATION 2107 Wilson Blvd., Suite 600 Arlington, VA 22201 703.243.6111 | info@nmpf.org | nmpf.org

Front cover: Bos Dairy, a California Dairies, Inc. member-owner farm in Tulare, California.