New data from a national survey commissioned by the National Milk Producers Federation (NMPF) and released Jan. 10 finds that consumers, by a nearly 3-to-1 margin, want the U.S. Food and Drug Administration (FDA) to enforce existing regulations and prohibit non-dairy beverage companies from using the term “milk” on their product labels. FDA is soliciting public comment regarding front-of-package dairy labeling regulations through Jan. 28.

The national survey conducted by IPSOS, a global market research and consulting firm, found that 61 percent of consumers believe FDA, which currently defines ‘milk’ as the product of an animal, but doesn’t enforce that labeling rule, should restrict non-dairy beverage companies from using the term ‘milk’ on their product labels. Only 23 percent said FDA should not limit the term ‘milk’ to dairy products, while 16 percent were uncertain.”

“Consumers have spoken, and they are clear in their desire for FDA to enforce its own rules,” said NMPF President and CEO Jim Mulhern. “FDA must listen to their voice and end deceptive labeling by plant-based beverage manufacturers.”

Dairy Market News reports that cheese production continues aplenty though the milk price narrative has changed. This week’s spot milk prices ranged from $2 under to $1 over, whereas New Year’s Week prices were wholly discounted. “Sales reports from most producers point to a bullish push,” says DMN, but “Some expect schools and restaurants are simply refilling their stocks, and the uptick may be short-lived once establishments and schools are replenished.” Cheese markets remain somewhat quiet and while some regional producers relay their inventories are balanced, nationally stores are heavy.

Cheese exports to Asia are up while orders from Mexico are stable, however supplies exceed current orders. Higher components in farm milk and plenty of milk in the West means cheese productivity is growing, warns DMN, adding more to current stocks and cheese outputs are likely to further increase in the near future, “so market players hope to see livelier spot trading activities in the forthcoming football season.”

The Wisconsin-based American Dairy Coalition (ADC) called on President Trump to liquidate surplus cheese in storage. An ADC press release stated that U.S. dairy farmers are “in a crisis” and “As each week passes, an increasing number of hard-working dairy families are going out of business. Many of us feel helpless and we struggle to support our families, some have even required food stamps to put food their tables. We very much appreciate your recent assistance, but we need milk prices to rise. We want to become profitable, but due to the uncertainty created by lingering retaliatory tariffs, we only see a slight, if any, rebound anytime soon.”

 “Our milk price has dropped nearly 40 percent over the last four years,” the ADC charged. “Cheese exports from the U.S. to Mexico are down more than 10 percent annually and shipments to China have fallen almost 65 percent annually. If this isn’t bad enough, the industry faces onerous and costly dairy regulations, as well as a shortage of workers, making it hard to find a way each day to stay in business.”

 The ADC adds that “Despite assistance to offset the negative impacts of milk prices due to the implementation of tariffs with Mexico, Canada and China, more action is needed. Currently, 1.4 billion pounds of American, Cheddar and other types of cheese are sitting in cold storage throughout the U.S. With the price of milk at a record low, it is necessary that this surplus be liquidated to jump start the industry. It is estimated that 40 million Americans struggle with hunger and food insecurity. Stored dairy in the form of cheese provides an excellent source of nutrition for families who do not know where their next meal will come from,” the ADC argued.

Lots of eyes have been on the powder markets which strengthened in the last three GDT auctions. CME Grade A nonfat dry milk closed the second Friday of January at $1.03 per pound, up 5 1/2-cents on the week, 36 1/4-cents above a year ago, and the first time it topped $1 per pound at the CME since January 2017. 10 carloads found new homes on the week.

The Daily Dairy Report’s Sarina Sharp warned that December U.S. milk checks will be “woefully inadequate” but “subsequent milk checks will be considerably better, especially in those areas with high Class I or Class IV utilization.” She says “The dairy industry has undergone some painful pruning in 2018, but those producers who managed to survive could enjoy a more prosperous new year.”

Meanwhile; HighGround Dairy’s director of market intelligence, Lucas Fuess, speaking in the Jan. 14 Dairy Radio now broadcast, said “the unthawing” of trade relations with China is good news for U.S. farmers and included the release of the trade data itself which had been withheld since last April, plus U.S. rice was exported to China for the first time ever.

But, while U.S. dairy exports to China are “doing well, considering the economic issues that China has had the past several months,” the big concern is the new competition. The U.S., New Zealand, and Europe have traditionally been the biggest suppliers of dairy products to China. Other countries showed up in this latest data including South America and Belarus, so market share will have to be fought for, he said, and the U.S. will have its work cut out for it to gain back those markets. Fuess concluded; “The U.S. can compete on a very strong level however, as is apparent with trade around the world, it’s never a sure thing.”

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Lee Mielke may write to him in care of this publication.