Tuesday, May 19, 2009

Pizza (MPC in Mozzarella) Makes a Case for Specter-Casey s.889

Pizza Makes a Case for Balancing Imports & Exports and Garnering Your Support for Specter-Casey s.889  

 
In my opinion, here is the “fair, free” market system as it applies to Pizza cheese, MPC and our fluid milk price.

I heard a keynote speaker say we sell our milk in circles -- pizza that is. However, that's not true anymore. Today, 30 to 40 percent of pizza cheese is potentially produced with MPC from mainly subsidized or low cost potentially under regulated milk from Europe, New Zealand, China, and India.  This low-priced MPC is available to U.S. cheese manufacturers under current trade law. 

A study from the Dairy Products Technology Center at California Polytechnic State University concludes you can increase cheese yield by 30 to 40 percent when using MPC in the cheese-making process.

In turn, U.S. cheese manufactures are free to spike importing of sometimes artificially, low-priced MPC from these subsidized-dairy farming areas of the world. They over produce with these low-cost inputs and flood the market.

Now, cheese storage facilities are filled and all of the excess milk goes to milk powder and the fluid milk market collapses. Throughout this “fair, free system”: 1) consumers’ prices drop slowly 2) cheese and powder manufacturers’ profit margins skyrocket 3) raw milk prices collapse.

This brings U.S. dairy farmers’ profit margins to the negative margin and makes them dependent on government subsidies, such as MILC, more than ever.

I have two predictions:

1) I predict we will never get out of this low milk price cycle unless 20 to 30 percent of U.S. dairies close their milk houses or milk powder or milk fat prices run the market up again because of free market, outside forces.

2) I also predict CWT program isn't going to be big enough to help us recoup our losses. As I have demonstrated in writing before, MPC import spikes have an uncanny inverse relationship with Class III Milk futures.

In closing, these “fair” market forces cannot be overcome with efficiency or low cost, regardless of how large your herd size is. My supporting argument is that MPC imports, for the most part, are priced artificially low. If this weren’t true, then they would not be coming into the U.S. in the name of “free trade.”

Your real competition is not your farm neighbor, it is not the dairy producer on the other coast. It is the legislation allowing unbalanced dairy import and exports to continue. The Specter-Casey Bill s.889 is the only idea, to date, that provides an import/export balancing mechanism. It also puts all manufactured milk on the same price level. In this manner, aquifer-draining, short-term, low-cost cheese production in southwestern U.S. doesn't jeopardize necessary, stable and long-term markets near population centers in other areas of the country. We need to remove control from CME and lessen the likelihood of future manipulation..

Whatever solution dairy farmers’ support and future U.S. food policy must meet two goals:

1)     Maintaining our homegrown food supply

2)     Removing opportunity for manipulating U.S. food-producing farmers’ livelihood and future

 

Have a good day.

Bryan Gotham 

Milk Protein Concentrate (MPC) 101 for All

Milk Protein Concentrates 101
To read the complete article, go to:
http://www.foodandwaterwatch.org/food/foodsafety/food-technologies/milk-protein-concentrates

You may never have heard of something called milk protein concentrates, but dairy farmers certainly have

Snapshot:
1. MPC's - a new, unregulated protein source in your food supply. It is replacing the highly regulated, U.S. produced nonfat dry milk and driving down the price paid for milk produced by U.S. dairy farm families

2. Created by a ultra-filtration process that removes all of the liquid and all of smaller molecules including the minerals (like calcium)

3. Found in processed cheese, frozen dairy desserts, crackers and energy bars

4. Produced as a dry powder, exporters can ship MPCs long-distances very cheaply, and almost all of the dry MPC’s used in America are imported from New Zealand

5. Imported MPCs are the product of cow’s milk and yak or water buffalo that are more popular in some MPC exporting countries. Blended milk proteins from different sources are allowed as imports under the U.S.'s MPC designation

6. Some cheese manufacturers are violating the guidelines for MPC as an additive and using it to make standard of identity cheese, like mozzarella and cheddar. And at the same time, scores of other dairy products—from frozen desserts to non-standardized cheese used on frozen pizzas to individually wrapped processed cheese slices — have no “standard of identity and contain MPC’s." 

7. Contact your Congressman or Senator by phone, fax or email and tell them you support the Specter-Casey bill s. 889 because it monitors MPC imports and ensures safe U.S. homegrown food from safe dairy ingredients

Unregulated imports of cheap milk protein concentrates are driving down the price of domestically produced milk and putting American dairy farmers out of business. And fewer American dairy farmers mean fewer choices for consumers, who are seeing increasing amounts of MPC’s—a new, unregulated protein source—in their food supply. 

What are Milk Protein Concentrates? 

MPC’s are created by putting milk through an ultra-filtration process that removes all of the liquid and all of smaller molecules including the minerals (i) that the dairy industry touts as being essential for good nutrition. 

What is left following the filtration is a dry substance that is very high in protein and used as an additive in products like processed cheese, frozen dairy desserts, crackers and energy bars. Because MPC’s are generally produced as a dry powder, exporters can ship the product long-distances very cheaply, and almost all of the dry MPC’s used in America are imported. 

In the United States, an MPC is defined as “any complete milk protein (casein plus lactalbumin) concentrate that is 40 percent or more protein by weight.” (ii) This definition is a bit of a catch-all because within the milk protein market there are a variety of proteins, like casein and whey, that are manufactured differently and can have different commercial uses. The definition also makes it unclear if imported MPC’s are the product of cow’s milk or if they come from animals like yak or water buffalo that are more popular in some exporting countries. Blended milk proteins from different sources are allowed as imports 
under the MPC designation. (iii) 

With such imprecise definitions and vague standards, it is hard to imagine how regulatory agencies manage to keep track of where this ingredient comes from and how it is used. As it turns out, they don’t have to, because MPC’s are largely unregulated. 

Why It Matters Where It’s From 

New Zealand is the major exporter of MPC’s to the U.S., but another dairy protein called casein is largely imported from China and Mexico, which together represent 70 percent of imported casein. Last year casein imports amounted to $61 million.(iv) Following recent scandals with food safety in China, including the melamine-tainted baby formula, American consumers have every reason to question imports of dairy products from countries where American standards cannot be enforced. 


Weak Regulations and Enforcement Means No Consumer Protection 

The FDA does have one mechanism to regulate MPC use in some dairy products. Many dairy products, like different types of cheeses, must conform to an official, FDA description about the components and/or processes used to make it, called “standards of identity.” One example is the difference between “cheddar cheese” and “pasteurized process cheese food,” which are both in the dairy case but bear different labels because they meet different standards for how they were made and what ingredients were used. 

MPC’s are not allowed for use in cheese products bearing a standard of identity. While this gives the FDA a way to regulate MPC use, the agency does not have sufficient resources – or political will – to enforce these regulations. A Government Accountability Office report from 2001 showed that the FDA only inspected nine cheese plants in all of 1999.xi The GAO also reported “In 2000, Vermont state inspectors found that two cheese plants were using imported milk protein concentrates to make standardized cheeses in violation of federal and state regulations.” (xii) 

And at the same time, scores of other dairy products—from frozen desserts to non-standardized cheese used on frozen pizzas to individually wrapped processed cheese slices — have no “standard of identity and contain MPC’s." 

MPC’s Impact on U.S. Dairy Farmers 

The United States’ imports of MPC’s have doubled in the last five years, and between 2007 and 2008 MPC imports increased 66 percent.xiii This $250 million worth of milk protein, mostly arriving from New Zealand,(xiv) is taking over the market share long-held by American dairy producers whose highly regulated, nonfat dry milk has been a preferred dairy protein additive to cheese, ice cream and other finished dairy products made in America 

The current crisis in the American dairy industry has been widely attributed to a decreased consumer spending in the current economic downturn.(xv)

Import statistics, however, clearly show another contributing factor: processors are outsourcing their dairy protein needs to foreign producers of cheap MPC’s, which leaves domestic dairy farmers with a glut of extra nonfat dry milk. 

This surge in MPC imports has been helped by the very low or non-existent tariffs on MPC’s.(xvixvii) Dairy farmers would like to see tariffs increased, to protect their livelihoods and provide some assurance about where dairy ingredients are coming from. 

What You Can Do: 

1. Tell your Congressman and Senator that you support the Specter-Casey bill s.889 because it legislates monitors dairy imports, such as MPC.

2.Check the Label: Look for “milk protein concentrates” on the label of processed 
foods. If you discover MPC, don't buy it --and don't hesitate to let the 
manufacturer and grocery store manager know you don’t want products that 
contain this controversial ingredient. 

2. Urge the FDA to keep the standards of identity strong for dairy products like 
yogurt. 

i Government Accountability Office. “Dairy Products: Imports, Domestic Production, 
and Regulation of Ultra-filtered Milk.” March 2001 

ii Harmonized Tariff Schedule of the United States. 2009 at Chapter 4, Note 13

iii Durant, John. Commercial Ruling Division of MPC for United States International 
Trade Commission Rulings And Harmonized Tariff Schedule. Ruling made on April 5, 
2002 at CAL-2 RR:CR:GC 965396ptl.
iv USDA, Foreign Agriculture Service, trade database available at www.fas.usda.gov/ustrade 

v Government Accountability Office. “Dairy Products: Imports, Domestic Production, and Regulation of 
Ultra-filtered Milk.” March 2001. 
vi United States Food and Drug Administration. “FY 2009 Congressional Justification.” 


February 5, 2008 at Foods 21.
vii United States Food and Drug Administration, database of GRAS available at 
http://www.foodsafety.gov/~rdb/opa-gras.html

viii Center for Food Safety and Applied Nutrition, Food and Drug Administration. 
Notices. “GRAS Notice No. GRN 000167.” September 29, 2005. 
ix United States Food and Drug Administration, database of GRAS available at 
http://www.foodsafety.gov/~rdb/opa-gras.html 
x United States Food and Drug Administration, database of EAFUS available at 
http://www.cfsan.fda.gov/~dms/eafus.htmlxi Government Accountability Office. “Dairy Products: Imports, Domestic Production, and Regulation of 

Ultra-filtered Milk.” March 2001 at 2. 
xii Government Accountability Office. “Dairy Products: Imports, Domestic Production, and Regulation of Ultra-filtered Milk.” March 2001 at 2. 
xiii USDA, Foreign Agriculture Service, trade database available at www.fas.usda.gov/ustrade 
xiv USDA, Foreign Agriculture Service, trade database available at www.fas.usda.gov/ustrade 
xv Martin, Andrew. “As recession deepens, so does surplus.” New York Times. January 1, 2009. 

xvi Bailey, K.W. “Estimation of the Protein Content of US Imports 
of Milk Protein Concentrates.” Journal of Dairy Science. 2003 at 4155. 
xvii Harmonized Tariff Schedule of the United States. 2008 at VI, 35-3 

Friday, May 15, 2009

Media Release from Congressman Arcuri - 24th District

Office of U.S. Rep. Michael A. Arcuri

Representing New York’s 24th Congressional District

 

 

MEDIA RELEASE

 

Thursday, May 14, 2009

 

CONTACT: Jay Biba (Arcuri)

jay.biba@mail.house.gov            

202-225-3665 office                                      

202-329-6831 cell         

 

Stephanie Valle (McHugh)

stephanie.valle@mail.house.gov           

202-225-4611 office

202-834-0472 cell         

 

                                                                       

                                                                                                      

ARCURI, MCHUGH LEAD BI-PARTISAN EFFORT TO FIGHT FOR UPSTATE NEW YORK DAIRY FARMERS

Northeast Democratic and Republican Congressmen Join Forces for Dairy Industry

 

WASHINGTON, DC – U.S. Reps. Michael A. Arcuri (NY-24) and John M. McHugh (NY-23) led a bipartisan group of 23 members of Congress today in calling on U.S. Department of Agriculture Secretary Tom Vilsack to address rising production costs facing small dairy farms across Upstate New York.

 

“Our dairy farmers need help, and it is imperative to our Upstate economy that they stay in business,” Arcuri said. “The thousands of small business dairy farms and their employees cannot wait for the crisis in the dairy industry to fix itself.  We are demanding swift and effective action from the federal government  to allow dairy farmers to remain competitive and continue to feed families across Upstate New York and the entire Northeast region”

 

As a lifelong resident of Northern New York, I know how critical our dairy farms and families are to our economy and the fabric of our local communities.  It is imperative that the federal government act quickly to deal with what has become an untenable situation that has the potential to force our dairy farmers out of business.   I will continue to work with my Congressional colleagues to urge Secretary Vilsack to address the rising cost in production and readjust the federal milk order pricing system,” said McHugh.

 

The global dairy industry has experienced a freefall in the price of milk because of the worldwide economic recession and fewer dairy exports overseas.  At the beginning of 2009, milk prices fell drastically due to an oversupply of milk on the market.  The amount of excess milk has since been reduced, but prices have yet to rebound.

 

Last year, Arcuri and McHugh successfully fought to include better dairy price supports in the 2008 Farm Bill by adding a feed cost adjuster to the Milk Income Loss Contract (MILC) program. This provision ties MILC support to what struggling dairy farmers pay for their feed, so that MILC payments increase as the cost of feed rises. 

Northeast Congressman - 23 from 11 states Take Dairy Action

Below is the text of the letter from 23 Congressman from 11 states  to U.S. Secretaryo of Agriculture, Tom Vilsack

The Honorable Tom Vilsack, Secretary

U.S. Department of Agriculture

1400 Independence Ave., S.W.

Washington, DC 20250

 

Dear Secretary Vilsack,

 

As Members of Congress representing this nation’s farmers, we write to you in deep concern over the state of this country’s dairy market. As you know, the May 2009 Class I milk base price is $10.97 per hundredweight (cwt). This rate is not sufficient for our milk producers to even recoup their costs of production, and therefore we respectfully request that you re-evaluate and amend the federal milk order pricing system to take into account the cost of production when setting milk prices.

 

Virtually all sectors of our economy have struggled in recent months to move forward and experience earnings that would, at the very least, keep businesses afloat and jobs from being cut. The dairy business is not exempt from this effort. However, this industry has its unique challenges and characteristics which make it extremely prone to changes in supply and demand, the slightest of which contribute to wide fluctuations in price. Prices fell nearly $5 per cwt in one month alone at the start of the year due to an oversupply of milk on the market, and have maintained their low levels ever since. Yet figures indicate that there roughly remains only an excess of 3% of product on the market. These patterns are not specific to the past six months, but rather mirror price increases and decreases from recent years.

 

While cost of production calculations may not have an immediate or direct impact on curbing dairy’s supply and demand volatility, controlling for these expenses from the outset would reduce the government’s obligation to support dairy later on as prices suddenly tumble and farmers are thrown into the red. We commend your leadership in resuming timely payments to producers under the MILC program to help the neediest farmers. However, we ask that you assess methods for setting milk prices accounting for regional costs of production to mitigate the need for government intervention and widespread subsidies, and lessen the impact of future market declines.

 

Thank you for your consideration of our request. We look forward to working with you to address these issues in our nation’s agriculture and improve conditions for our dairy industry.

 

Sincerely,

 

Michael A. Arcuri

John McHugh

Peter Welch (D-VT)

Michael H. Michaud (D-ME)

Joe Courtney (D-CT)

Maurice D. Hinchey (D-NY)

Bill Shuster (R-PA)

Dan Maffei (D-NY)

Brian Higgins (D-NY)

John Hall (D-NY)

Tim Holden (D-PA)

Christopher P. Carney (D-PA)

Roscoe G. Bartlett (R-MD)

Paul Tonko (D-NY)

Eric Massa (D-NY)

Rosa L. DeLauro (D-CT)

Paul W. Hodes (D-NH)

Charles B. Rangel (D-NY)

Chris Lee (R-NY)

James R. Langevin (D-RI)

Chellie Pingree (D-ME)

Glenn Thompson (R-PA)

Carol Shea-Porter (D-NH)

Rally on Dairy Prices May 30. Attend if you can!

ATTEND THE RALLY ON DAIRY PRICES!

There are Solutions!! 

SATURDAY, MAY 30 

12:00 pm - 3:00 pm 
at the Manchester Livestock Exchange 
Manchester, Iowa 

SPEAKERS: 

Joel Morton - Farm Aid (hotline director) 
Arden Tewksbury - Pro Ag Manager 
will talk about Senate Bill S.889 and how it will solve the problems 
John Crabtree - Center for Rural Affairs 
Chris Peterson - Iowa Farmers Union 
Joel Greeno - president American Raw Milk Producers 
Francis Thicke - Dairy Farmer 
Bryan Gotham - a New York Dairy Farmer 
Plus Many More! 


US Hwy 20 
MANCHESTER, IowA 

It’s our future...we need to take a stand! 
For more information contact: 

Dave Knipper at 563-590-1596 
Jerry Harvey at 641-203-4063 

Monday, May 11, 2009

Attn Dairy Industry: Let's use common sense when pricing milk

Be honest with yourself and think about what is a fair market. Do not be too proud to admit that what we have today is a broken system - it is not fair or free market. 

I invite you to join me in this grassroots time for changeIt’s time for real change and I need your help to do it!  It can happen - just look at our new President he did it.

Call your Congress person or Senator today!!  Support the Specter-Casey bill S-889. This bills passage needs help from consumers also to insure a save, local, healthy dairy food supply from healthy local economies before the foundation crumbles!   

To locate your district and/or congressman's email, phone, fax, address, use your state and zip code at: https://writerep.house.gov/writerep/welcome.shtml

WE CAN DO THIS! I always welcome help, ideas and comments. Bryan R Gotham blcgotham@yahoo.com  315-405-6456.

Friday, May 1, 2009

Specter-Casey Bill s.889 - Explained

            The Specter Casey Bill-S889 a good start to solving the current milk pricing system problems

·       Dairy policy that proactively controls supply. Monitors imports to prevent import abuse. Currently the CWT, which I support, is like putting out a fire all the time and it doesn’t have 100% support among farmers.  Also, it eliminates some farms unnecessarily and it doesn’t stop import abuse.

·       Bill – s.889 pays farmers based on a National Average Cost of Production and with a Class I differential to maintain local fluid milk supplies. This cost of production data is well documented and is calculated monthly by the federal government. This eliminates wiggle room for greed at the farmer’s expense and the farmer can pay his bills.

·       If an oversupply of milk is determined by the Secretary of Agriculture.  Farms that over produce based on their previous year’s production will receive a price equal to one half of the National Average Cost of Production on the extra milk.

·       If manufactures wish to import MPC to increase cheese supply when cheese price drops, they will have incentive not to over produce cheese because raw milk prices will remain stable regardless.  They can refuse the local milk and we as farmers will gladly pay the higher balancing costs to get out of this trap.  Move the milk where it is needed stop over producing cheese.

·       The Secretary will also keep track of imports and exports to determine oversupply.

·       The Secretary is allowed to do this with up to 5% of total milk supply.  The money is collected and it is pooled to control supply in very humane ways.   Enhancing programs for the poor or school children.  This is paid for by farms that created the over supply not the government.  

·       Young Farmers will get a chance with this program because dairy lenders will sense decreased risk and there is a 3million lbs exemption for their first year’s milk.

·       Consumers that I have talked to, want farmers to be able to pay their bills and produce their food from clean environmentally friendly facilities.  Today, all farms are challenged to achieve this goal from a milk check.  Equip Grants are a life saver on most large farms.  Barns are falling down and manure problems are on the rise.

·       The current MILC Program could be eliminated and this new policy will only cost the government money through administration and not handouts.

·       Dairy farmers will compete more fairly between regions.  For example, California has basically fueled its growth in milk production by leveraging equity from sky rocketing appreciation of land values.  Not from getting rich from their milk check and currently these real estate values are crashing down to reality. Growth will cease. However, the Northeast’s milk Production remains flat with only consolidation of small farms to larger ones.  But currently we are told by our coops that markets want dairyman to produce more milk in the Northeast near population centers again.  Capital is too hard for most young farmers to obtain and older farmers don’t want the risk.  So growth in production remains stagnant.  This will frustrate coops and manufactures.  New manufacturing facilities with run lower than capacity without growth were its needed.

·      If you really think about these common sense issues this bill is a win win for all I can’t find anything wrong with it.  Be honest with yourself and think about what is a fair market. Do not be too proud to admit that what we have today is not a fair free market system and it is broken.  We need to promote THIS from the GRASS Root’s.  IT’S Time for real change and I need your help to do it!  It can happen just look at our new president he did it.

Call your Congress person or Senator today!!  Support the Specter-Casey bill S-889. This bills passage needs help from consumers also, to insure a healthy dairy food supply before the foundation crumbles!   Bryan R Gotham blcgotham@yahoo.com  315-405-6456 call for ideas to help.