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U.S. House Passes Bill to Repeal COOL Law

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U.S. House Passes Bill to Repeal COOL Law Volume 35 June 12, 2015 Number 21 Scan this code for breaking U.S. House passes bill to repeal news and the latest markets! COOL law on beef, pork, chicken WASHINGTON — The U.S. trade obligations. tariffs on dairy products, dairy R-Kan., praised passage of House this week passed the “The amended COOL mea- stakeholders say. (See “WTO the House bill to repeal COOL INSIDE Country of Origin Labeling sure, which causes Canadian rules against U.S. COOL law; requirements for meat. (COOL) Amendments Act and Mexican livestock and dairy may face retaliation” “I am continuing to take sug- ✦ Export Tool Kit: ‘Giving 300-131. Introduced by House meat to be segregated from in the May 22, 2015, issue of gestions from my colleagues in the customer more Agriculture Committee Chair those of U.S. origin, is damaging Cheese Market News.) The the Senate for alternatives that reasons to shop U.S.’ K. Michael Conaway, R-Texas, to North America’s supply chain nations say they intend to meet our trade obligations,” the bill amends the Agricul- and is harmful to producers and seek more than $3 billion in Roberts says. “However, almost For details, see page 4. ture Marketing Act of 1946 to processors in all three coun- retaliatory sanctions against a month has passed since the ✦ Retail WATCH Exclusive: effectively repeal mandatory tries,” says a statement issued U.S. exports. WTO ruling was announced, Mifroma launches COOL requirements for beef, last week by Ed Fast, Canada’s Canada’s and Mexico’s gov- and repeal remains the surest Premium line, introduces pork and chicken. Minister of International Trade, ernments are asking the WTO way to protect the American Adopt-an-Alp program. The legislation, which was Gerry Ritz, Canada’s Minister for a special Dispute Settle- economy from retaliatory tar- For details, see page 5. introduced and approved in of Agriculture and Agri-Food, ment Body meeting to request iffs. We can sit here and let this the House Ag Committee last Ildefonso Guajardo Villarreal, retaliation rights against the happen, or we can move. Let’s ✦ GEA launches optimized month, comes on the heels of Mexico’s Secretary of Economy, United States, to take place get a move on.” new Group structure. threats of retaliation last week and Enrique Martínez y Mar- June 17. The International Dairy For details, see page 10. from Canada and Mexico. The tínez, Mexico’s Secretary of Following passage of the bill Foods Association (IDFA), countries say the U.S. COOL Agriculture. (See “Canada, to repeal COOL requirements which along with several dairy ✦ All things dairy celebrated requirements for beef and Mexico move to retaliate on for meat this week, Conaway and industry agricultural stake- nationwide in June. pork are discriminatory and a COOL” in last week’s issue of said he is thankful for the sup- holders is part of the COOL For details, see page 12. violation of U.S. international Cheese Market News.) port of his colleagues in pass- Reform Coalition, notes that First authorized in the ing the bipartisan bill that is a Canada already has issued a 2002 Farm Bill, COOL requires necessary targeted response to preliminary retaliation list information detailing where avoid retaliation from Canada targeting a broad spectrum Dairy industry stakeholders livestock were born, raised and and Mexico. The nations’ retal- of commodities and manufac- slaughtered. The World Trade iatory threat would extend far tured products, including dairy, testify on California pricing Organization (WTO) last month beyond the agriculture industry which would affect every state issued a fi nal ruling against and would hurt nearly every sec- in the United States. Mexico SACRAMENTO — The California Department of Food and Agriculture the U.S. COOL rule, saying tor of the U.S. economy, he adds. has not yet announced a pre- (CDFA) last week held a hearing on proposed changes to the state’s it violates U.S. international “(This bill) will prevent re- liminary retaliation list but Class 4b monthly milk price calculation. trade obligations and creates taliation and bring the U.S. back has implemented retaliatory CDFA Secretary Karen Ross called the hearing on the depart- an unfair advantage for U.S. into compliance, and I urge my tariffs in the past, which may ment’s own motion to consider adjustments to the pricing formula products. colleagues in the Senate to act be indicative of future tariff for Class 4b milk, used to make cheese. Two proposals on changes Under the WTO ruling, quickly on this urgent matter,” actions, IDFA adds. to the state’s milk pricing formula were submitted: one jointly by Canada and Mexico are entitled he says. The COOL Reform Coalition Western United Dairymen (WUD), Milk Producers Council (MPC) to retaliate against U.S. exports, U.S. Senate Agriculture earlier this week sent a letter and California Dairy Campaign, and another by the Dairy Institute of and that could include higher Committee Chair Pat Roberts, Turn to BILL, page 10 a California. (See “California processor, producer groups fi le proposals with CDFA on changes to milk pricing” in the May 22, 2015, issue of Cheese Market News.) At the hearing, dairy producers renewed their call for a more “fair” pricing structure for milk that would align California’s 4b price closer USDA increases forecasts CWT to continue to the Class III price in the federal milk marketing order (FMMO). export assistance In his testimony, Rob Vandenheuvel, general manager, MPC, notes for both exports, imports through 2018 that some might point to general U.S. dairy market trends as the source WASHINGTON — Based on gains in output per cow, U.S. milk of the volatility in producer profi tability over the past several years. production forecasts for both 2015 and 2016 are increased in ARLINGTON, Va. — The “While there is certainly a cyclical nature at play generally in the USDA’s “World Agricultural Supply and Demand Estimates” report board of directors of the Na- U.S. dairy industry, California’s dairy families have been realizing lower released this week. tional Milk Producers Feder- milk prices than our out-of-state colleagues,” Vandenheuvel says. “When USDA increased the 2015 milk production forecast by 100 ation (NMPF) this week voted competing with dairy industries in other states, whether that be for million pounds to 208.7 billion pounds, while the 2016 projection to continue Cooperatives animals and feed, our California producers are at a signifi cantly weaker was increased by 300 million pounds from last month’s report to Working Together (CWT), relative position than our competition. In addition to price alone, 213.9 billion pounds. the farmer-funded export another indicator of this is the comparison of California’s production USDA also increased its fat basis export forecast for 2015 on assistance program, through growth compares to the other states.” higher cheese exports. The skim solids exports forecast for both 2015 2018 at the current funding Vandenheuvel adds that the bottom line is that MPC and the Cali- and 2016 were raised on larger exports of nonfat dry milk (NDM). level of 4 cents per hundred- fornia dairy families it represents believe there is no justifi cation for Meanwhile, the forecast for fat basis imports was raised for both weight. NMPF developed the signifi cant gap it has seen between California’s Class 4b price and 2015 and 2016 on expectations of strong demand for imported cheese. and manages the 13-year-old the federal order Class III price. Butter, NDM and whey prices for 2015 were forecast lower on self-help program. a Turn to CALIFORNIA, page 10 Turn to USDA, page 10 a Turn to CWT, page 11 a © 2015 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — June 12, 2015 MARKET INDICATORS Chicago Mercantile Exchange CHEESE FUTURES* for the week ending June 11, 2015 Cash prices for the week ended June 12, 2015 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday June 8 June 9 June 10 June 11 June 12 Fri., June 5 Mon., June 8 Tues., June 9 Wed., June 10 Thurs., June 11 JUN15 1.717 4,005 1.716 4,001 1.723 4,000 1.726 3,995 1.728 3,990 Cheese Barrels JUL15 1.758 3,330 1.781 3,333 1.820 3,327 1.819 3,338 1.821 3,344 Price $1.6375 $1.6725 $1.7100 $1.7550 $1.7225 AUG15 1.793 3,168 1.813 3,181 1.859 3,181 1.850 3,171 1.850 3,163 Change -1/2 +3 1/2 +3 3/4 +4 1/2 -3 1/4 SEP15 1.805 3,235 1.825 3,236 1.859 3,237 1.856 3,232 1.855 3,198 OCT15 1.808 2,776 1.820 2,776 1.855 2,769 1.856 2,784 1.860 2,791 Cheese 40-lb. block NOV15 1.818 2,939 1.829 2,939 1.862 2,943 1.860 2,945 1.862 2,951 Price DEC15 1.806 2,815 1.815 2,815 1.832 2,815 1.826 2,815 1.834 2,821 $1.7150 $1.7250 $1.7500 $1.7800 $1.7550 JAN16 1.763 520 1.763 520 1.778 530 1.778 530 1.775 530 Change NC +1 +2 1/2 +3 -2 1/2 FEB16 1.762 406 1.762 406 1.762 406 1.768 406 1.768 406 MAR16 1.762 383 1.762 383 1.766 383 1.766 383 1.765 383 Weekly average (June 8-12): Barrels: $1.6995(+.0130); 40-lb.
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