The U.S. Senate "Food Safety Modernization Act of 2009" passed out of committee by a voice vote on Wednesday, taking the first step toward full consideration on the Senate floor. IDFA and 13 other food industry organizations voiced their continued support of the bill and its recommended improvements in a letter sent the night before to committee leaders.

Chairman Tom Harkin (D-IA) (pictured right) and Ranking Member Michael Enzi (R-WY) (pictured left) led the Senate Health, Education, Labor and Pensions Committee to a quick resolution and vote.

"Senators Harkin and Enzi deserve great credit for preserving and protecting the bipartisan bill that was offered by Senator Richard Durbin (D-IL)," said Ruth Saunders, IDFA vice president of policy and legislative affairs. "It reflects broad input from the food industry, consumer groups and many other stakeholders."

The County-of-Origin Labeling (COOL) for Dairy Products bill, S.1783, was not attached to the food safety legislation during markup. IDFA had expressed concern to committee members about the dairy bill, which would create onerous new labeling requirements for dairy products. At the mark up, Senator Sherrod Brown (D-OH), one of the authors of the COOL bill for dairy, indicated that he would like to offer a COOL amendment for all processed food products and will gather information from industry representatives going forward.

IDFA also worked with the National Milk Producers Federation to highlight dairy-specific issues, such as regulating facilities that produce raw milk for direct human consumption, for the committee. (See "IDFA, NMPF Urge Senators to Include Raw Milk in Food Safety Act." The two dairy groups hope to see Congress and the Food and Drug Administration support these issues during consideration and ultimately implementation of the final bill.

The next step for this legislation, consideration by the full Senate, has not been scheduled but may take place before the end of the year.

For more information, contact Saunders at rsaunders@idfa.org or (202) 220-3553.

IDFA filed comments last week with the California Occupational Safety and Health Standards Board regarding the department's recent proposal to limit state workers' exposure to diacetyl in California. While commending and supporting the department's goal of protecting workers, IDFA said the outlined approach would probably confuse workers and limit the effectiveness of the effort.

Instead, IDFA joined with the Grocery Manufacturers Association and other industry groups to propose that Cal/OSHA determine permissible exposure limits that would rationally enhance worker safety. In separate comments, IDFA outlined several conditions where dairy operations using diacetyl-containing flavors to produce food products do not adversely affect worker safety.

A natural byproduct of fermentation, diacetyl has been associated with a severe lung disease, bronchiolitis obliterans, among some workers from microwave popcorn plants and in flavor and extract manufacturing facilities. The health risk is associated with inhaling diacetyl, not ingesting it.

California is the first state in the nation to take regulatory action regarding the use of diacetyl in food manufacturing. IDFA has serious concerns about the proposal, especially the proposed labeling requirement, which would affect certain manufacturers of dairy products in the state.

Companies that include added diacetyl in products, such as cottage cheese dressing or unsalted butter, would be covered, but dairy products with naturally occurring diacetyl would not. Fluid milk and ice cream processors most likely would not fall under the regulation, because the diacetyl in the flavorings used in those operations is likely to be below the one-percent threshold, the level that would trigger the California rule.

"While we applaud Cal/OSHA's endeavor to prevent additional instances of work-related bronchiolitis obliterans, we are concerned that the proposed rule will unnecessarily cover many operations where diacetyl use is minimal and is not a problem," the comments stated. "We do not believe that Cal/OSHA intended to regulate in such a manner.

• IDFA comments
• Joint comments with GMA, other industry groups

For additional background, read the October 2 news story "California Announces Proposed Rule on Diacetyl."

For more information, members may contact Clay Detlefsen, IDFA vice president of regulatory affairs, at cdetlefsen@idfa.org or 202-220-3554.

By Bob Yonkers, IDFA Chief Economist, Ph.D.

The market for U.S. milk and dairy products, both domestically and internationally, has been growing dramatically in recent decades. As a result, U.S. farm milk production has grown to about 190 billion pounds per year.

Looking back, however, U.S. dairy has not always been a growth industry. Prior to 1980, U.S. farm milk production bounced around 120 billion pounds for decades (Figure 1). Milk production in 1979 was 123 billion pounds, about the same as in 1955, and in 1980 milk production of 128 billion pounds beat the old record set in 1964. Obviously, overall demand for milk and dairy products in the U.S. was stagnant at best, and total per capita consumption of dairy suffered serious declines during the years between 1945 and 1974, dropping nearly 36 percent from a high of 840 pounds to 540 pounds.

It has been a different story since then. U.S. farm milk production has increased from 123.3 billion pounds in 1979 to 190 billion pounds in 2008, an increase of 66.7 billion pounds, or 54 percent. Growth in the total demand for milk and dairy products is the only reason our industry has been able to expand. This came about largely by stopping the long-term decline in the per capita consumption of total milk and dairy products.

The good news is that per capita consumption of dairy in the United States grew from a low of 540 pounds in 1974 to 620 pounds in 1987. The bad news is that amount remained a record high until 2007 when it reached 624 pounds; in 2008 it was 635 pounds, the highest level since 1966 (Figure 2).

This past decade, most of the demand growth for U.S. dairy products has come from the export market. In testimony before a U.S. Senate agriculture subcommittee on October 27, two witnesses provided estimates that in 2002 about 5.1 percent of U.S. farm milk component production was exported in the form of various dairy products. This more than doubled to 10.8 percent in 2008, and so far in 2009 it remains, at 8.7 percent, above any year prior to 2006.

In addition, the outlook for dairy exports remains strong. The U.S. Department of Agriculture reports the most recent two-week average international dairy prices now exceed our domestic wholesale prices for butter, milk powder, cheddar cheese and dry whey (Figure 3).

It is also important to note that at least some of the increased demand for dairy comes from our own domestic market, as imports are filling a smaller share in recent years. At that October 27 Senate hearing, it was noted that dairy imports reached 4.6 percent of U.S. farm milk component production in 2005, but has since fallen, reaching 4.0 percent in 2008 and only 3.5 percent so far in 2009. That means more of our domestic dairy demand in recent years is being met by our own farm milk production rather than by imported dairy products.

While the U.S. dairy industry has suffered from the global financial crisis and resulting economic recession in many dairy importing countries, the world market is recovering. For our industry to continue to grow at all, let alone at a pace similar to the past 30-year trend, we must continue serving the growing international market in addition to developing innovative new dairy products and ingredients to serve our domestic consumers.

Figure 3

Source: Testimony of Doug Nuttelman, dairy producer from Stromsburg, Neb.,
before Senate Agriculture Committee, October 27, 2009

In comments filed last week with the food safety and labeling arm of the U.S. Department of Agriculture, IDFA supports the continuation of a flexible, case-by-case approval process for "natural" claims on dairy product labels. Instead of new regulations, IDFA urges the agency to update current guidance and clarify that different uses of the term are acceptable, depending on context.

IDFA filed the comments with USDA's Food Safety and Inspection Service, which has jurisdiction over labeling of meat and poultry products, including meat-topped pizzas and cheeseburgers. The agency has considered rulemaking on "natural" claims since 2006. It recently requested additional information because the comments received nearly three years ago demonstrated significant industry disagreement on the issue.

IDFA opposes rulemaking that would develop a rigid definition of natural, because determining whether a ‘‘natural'' claim is true and not misleading often depends on the context in which the claim is used. Phrases such as "made with natural flavors" or "naturally and artificially flavored," for example, should be allowed as long as they truthfully represent the product.

"This is the same conclusion reached by the Federal Trade Commission, the USDA and the Food and Drug Administration when the agencies undertook an extensive review of the term 'natural' in advertising and labeling in the 1970s," the comments stated.

The comments also support the continued use of the term "natural cheese," which has been used for decades and helps consumers to differentiate between natural cheese products and processed cheese. In addition, IDFA believes that natural claims should focus on the ingredients used in the labeled food product, not on food-processing methods that may be considered non-traditional by FSIS standards. Many current standards of identity for cheese allow for alternate methods of making cheese, as long as the end product meets the standard's requirements for composition.

Although dairy products used as ingredients in meat and poultry products, like the cheese on a pepperoni pizza, are regulated by FSIS, most dairy products are regulated by FDA. IDFA urged the agencies to work together before taking action to ensure that all federal policy on natural claims is consistent.

• Read IDFA's comments here.

• Call for comments in Federal Register, September 14, 2009.

For more information, contact Michelle Matto, IDFA assistant director of nutrition and labeling, at mmatto@idfa.org or 202-737-4332.

Clay Detlefsen, IDFA vice president of regulatory affairs and counsel, has been elected to the AOAC board of directors as director-at-large for 2009-2010. AOAC, a scientific association dedicated to excellence in analytical methods, provides tools and processes to develop voluntary consensus standards or technical standards for industry. AOAC membership includes chemists, microbiologists, laboratory managers and statisticians from around the world.

"As government interest in 'testing our way to food safety' escalates, it is imperative that we forge relationships with the experts in testing methodologies," said Detlefsen. "As AOAC enters its 125th anniversary, it clearly has established its level of expertise."

At IDFA, Detlefsen leads the association's efforts on sustainability, bioterrorism and food defense, and serves as the lead dairy industry advisor on food defense to the U.S. Department of Agriculture, the Food and Drug Administration, the Department of Homeland Defense and the Federal Bureau of Investigation.

He is co-chair of the Food and Agricultural Sector Coordinating Council (FASCC), a presidentially mandated partnership between government and the private sector. Detlefsen has contributed to four National Infrastructure Advisory Council reports submitted to the White House on matters ranging from cooperation between the private sector and the intelligence community to industry's preparation for pandemic flu.

"I'm in daily contact with many colleagues within key federal agencies, and I know the value of maintaining relationships, keeping the lines of communication open and sharing information on all kinds of topics. As a new board member, I look forward to helping the AOAC with its efforts to rebuild and enhance relationships with government agencies, especially in the areas of food safety," Detlefsen said.

The State News column tracks legislative efforts at the state level that are related to dairy. This column covers the Illinois House of Representatives' recent introduction of a bill to limit students who attend Chicago Public Schools to one cheese item per day and one dessert per week. More details and a complete matrix of pending state legislation is available to members below.

It's not too early to make your hotel reservations for Dairy Forum 2010, January 17-20 at the Arizona Biltmore Resort & Spa in Phoenix. IDFA is holding a large block of rooms, but once all the rooms have been reserved, there is no guarantee that additional space will be available. The deadline for hotel reservations is December 15. Make your reservation directly on the hotel website or call the resort at (602) 955-6600. Be sure to refer to IDFA's Dairy Forum to receive the special room rate of $279 per night. More details about Dairy Forum are available here.

Five people were indicted in Maryland last Thursday for stealing nearly $400,000 worth of plastic pallets and crates normally used to carry soft drinks, bakery goods and dairy products. The indictments grew out of a collaborative effort by several area businesses and organizations, including Cloverland Dairy and IDFA, to investigate thefts over a seven-month period and provide evidence to state and local law enforcement.

The indictments were announced by Prince George's County State's Attorney Glenn Ivey at a press conference that included representatives from the collaborating companies. The defendants face 17 counts of theft, each carrying a maximum jail sentence of 15 years.

"This is a multi-million-dollar problem," Ivey said, according to a report in the Washington Post. "It undermines the businesses, and the costs are passed along to consumers."

Cloverland Dairy, H&S Bakery and Coca-Cola led the effort to develop a model plan of attack against what is estimated to be a $500-million a year plastic-theft crime wave. IDFA and the American Bakers Association joined the effort earlier this year and will continue to participate.

IDFA estimates that dairy companies alone lose nearly $80 million a year to milk crate theft. The thieves target warehouses, supermarkets, bakeries and other retail outlets that place empty plastic crates outside, usually unattended, for pick up. They steal the crates and sell them to recycling centers for shredding, and the recyclers sell the ground plastic to manufacturers, often to make into more crates.

"We're pleased to see that our collaborative efforts paid off so quickly and effectively," said Clay Detlefsen, IDFA vice president of regulatory affairs and counsel. "We hope this type of grassroots effort will take hold in other parts of the country as well."

IDFA recently launched www.GotMilkCrates.com, a Web site designed to build awareness of the problem. It also provides processors and retailers with proactive measures they can take.

Read more about IDFA's collaborative efforts and the investigation at "Maryland Collaborators Attack Plastic Crate Theft."

Other news reports:

• Indictments In Million Dollar Plastic Pallet Thefts In Md
• Prince George's Residents Indicted for Plastic Pallet Theft
• Indictments in Plastic Pallet Thefts
• 5 Charged with Large-Scale Theft of Plastic Delivery Containers in Maryland County
• Md. Authorities Charge 5 People with Plastic Theft

Media Contacts:

Peggy Armstrong, IDFA, 202-220-3508
Chris Galen, NMPF, 703-243-6111

Other Requests: Harmonize Regulations and Avoid Duplicate Fees

(November 13, 2009 - Washington, D.C.) Although unpasteurized, or raw, milk products pose a significant food safety hazard, facilities producing these products are not covered by any of the food safety regulations proposed so far this year by Congress. These facilities also remain exempt from existing regulations enforced by all states, which are know as the Pasteurized Milk Ordinance (PMO), that set the standard for maintaining the safety of the nation's milk and milk product supply. Cheeses made from unpasteurized milk that have been aged to eliminate the risk of food borne illnesses are not considered raw milk products.

The International Dairy Foods Association and the National Milk Producers Federation have asked senators planning to mark up key food safety legislation next week to rectify this omission. In a letter to Senators Tom Harkin (D-IA) (pictured), chair of the Senate Committee on Health, Education, Labor and Pensions, and Michael Enzi (R-WY), the committee's ranking member, the dairy groups called for requiring all facilities producing raw or unpasteurized milk products for direct human consumption to register with FDA and adhere to the tried-and-true food safety requirements that are followed by all other facilities producing milk products.

"Before pasteurization became widely utilized during the 1920s, human consumption of raw milk was one of the major sources of food borne illnesses and one of the primary causes of infant mortality," said IDFA CEO Connie Tipton and NMPF CEO Jerry Kozak in the letter. "It is important to the health of the American public, and for the continued confidence in the dairy industry, that the new food safety legislation bolsters the success of the PMO program and applies any new FDA requirements to raw milk and raw dairy products."

The PMO covers all aspects of hazard analysis, planning and monitoring from farm to plant to delivery of finished milk products to retail outlets. These extensive requirements are enhanced and updated every two years through a coordinated program between FDA and state regulatory departments, resulting in very low numbers of food safety problems for pasteurized dairy products.

Raw milk products intended for human consumption have been associated with a much higher incidence of food-related illnesses. But these products and facilities producing them are not required to comply with food safety plans, record keeping and access, and other regulations that are triggered by registration with FDA.

IDFA and NMPF support the proposed "FDA Food Safety Modernization Act" and urge the senators to expand the regulations to include facilities producing raw milk products for direct human consumption. In addition, the dairy groups would like the bill to recognize that state inspections of dairy facilities under the PMO already meets necessary food safety requirements and no duplicate functions are warranted.

Because facilities following the PMO already pay fees for state licensing and inspections, IDFA and NMPF recommend that these state fees be credited against any new FDA registration fees if such fees are added to the food safety bill.

# # #

The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation's dairy manufacturing and marketing industries and their suppliers, with a membership of 550 companies representing a $110-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation (MIF), the National Cheese Institute (NCI) and the International Ice Cream Association (IICA). IDFA's 220 dairy processing members run more than 600 plant operations, and range from large multi-national organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese and frozen desserts produced and marketed in the United States. IDFA can be found online at www.idfa.org.

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance the well being of dairy producers and the cooperatives they own. The members of NMPF's 30 cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of more than 40,000 dairy producers on Capitol Hill and with government agencies.

"If we don't control our destiny, someone else will be glad to do it for us," IDFA CEO and President Connie Tipton told industry readers in a recent issue of Cheese Market News. Referencing exciting new research by Bain & Company on the growth potential for dairy products, Tipton encouraged all industry participants to implement growth options, make bold changes to policies and become partners in the global expansion of the industry.

She closed with an invitation to the Bain & Company presentation scheduled for Dairy Forum 2010, January 17-20, in Phoenix.

Trade News is a periodic member update that provides a concise compilation of current trade happenings and their impact on the dairy industry. This week's column reviews a longstanding trade dispute that could have implications for U.S. dairy exports to Brazil. The column also reviews IDFA's opposition to a proposal from U.S. sugar growers that would tighten domestic sweetener supplies.

Members may read more details below.

The federal government launched a new question-and-answer section at www.flu.gov last week to confirm proper food-handling procedures and reassure consumers during the current H1N1 influenza outbreak. The Food Handlers Frequently Asked Questions (FAQs) reinforce that flu viruses, including H1N1, are not transmitted through food and that no additional food-processing or equipment-cleaning safeguards are necessary.

Although the food industry previously prepared for pandemic avian flu, the H1N1 virus is a vastly different strain. The differences between the two types of flu and the lack of experience with a pandemic flu in general caused confusion within the food industry and among consumers.

IDFA and others in the private sector worked with the government under the auspices of the federal Food and Agriculture Sector Coordinating Council (FASCC) to clarify several points and recommended adding them to public government communications. As a result, www.flu.gov now includes several commonly asked questions, which have circulated in the food industry and consumer venues, along with the answers.

"We are pleased that the government and industry were able to work together to resolve these issues so that employers, employees, consumers and the public can focus their concerns on appropriate matters, and not worry about non-existent food safety issues stemming from H1N1," said Clay Detlefsen, IDFA vice president and counsel and co-chair of the FASCC.

Read the FAQs here.

South Dakota State University earned all top honors at the 88th Collegiate Dairy Products Evaluation Contest held last month at the Kraft Foods Research and Development Center in Glenview, Ill. SDSU captured the all-products title, and three undergraduate students and one graduate student from the university were named individual all-products winners.

Clemson University placed second, followed by University of Wisconsin-Madison, Iowa State University and the University of Tennessee. Eleven universities in all participated this year.

The national contest was started in 1916 to recognize students and dairy product judging teams that had mastered the ability to identify high-quality dairy products. The venue allows students to showcase their evaluation skills and prepare for careers in the dairy industry.

Each year teams of students evaluate prepared samples of cheddar cheese, milk, butter, yogurt, cottage cheese and ice cream to identify potential defects in flavor, appearance and texture. These defects can affect quality of the product. Dairy science professors developed a standardized set of defects for training purposes, and undergraduate and graduate students in dairy science are trained to identify them.

In addition to the all-products category, there are winners for six product categories: cheddar cheese, butter, fluid milk, cottage cheese, yogurt and ice cream.

The Dairy Recognition and Education Foundation (DREF), overseen by IDFA, offers awards to winning students who are majoring in dairy processing technology, agri-business or food science and their coach. The winners of this year's DREF awards are Cassey Utke of SDSU (pictured), first-place individual all-products winner and cottage cheese category winner, $500; Jordan Dorneman of SDSU, second-place individual all-products winner and first-place winner in the yogurt and cheddar cheese categories, $500; Nicole Stevens of SDSU, third-place individual all-products winner, $200; and Dr. Bob Baer, coach of the SDSU team, $500. The first-place winner in each of the other three categories also received $100 from DREF.

"These are the future leaders of the dairy industry," said Allen Sayler, IDFA vice president of regulatory affairs and international standards. "We thank all the companies that supported the teams this year and encourage them to continue to provide this opportunity for students to polish skills needed in the dairy processing industry."

Companies that would like to make a donation for the 2010 contest may contact Dr. David Selner, National Dairy Shrine, P.O. Box 1, Maribel, WI 54227. ATTN: Collegiate Dairy Product Evaluation Contest.

The contest is sponsored by the National Dairy Shrine and the U.S. Department of Agriculture's Agricultural Marketing Service, with support from the American Dairy Science Association and U.S. dairy processors.

For more information about this year's winners, contact Charlsia Fortner, agricultural marketing specialist for USDA and superintendent of the Collegiate Dairy Products Evaluation Contest, at Charlsia.Fortner@ams.usda.gov.

The Milk Processor Education Program's (MilkPEP) campaign to raise awareness among parents about the important role flavored milk plays in child nutrition has received extensive traditional and social media coverage since the launch last Monday. The "Raise Your Hand For Chocolate Milk" campaign has drawn thousands of supporters to www.RaiseYourHand4ChocolateMilk.com to show their support for flavored milk for children. They're also becoming fans on Facebook, following the campaign on Twitter and posting comments on influential nutrition and mom blogs.

Key media outlets, such as National Public Radio and the Chicago Tribune, have also covered the campaign.

Michelle Matto, IDFA assistant director of nutrition and labeling, included a chocolate milk message in her DairyLine broadcast to producers earlier this month. Noting that flavored milk accounts for eight percent of total retail milk sales, Matto said, "Dairy processors are working to formulate new flavors and products with different levels of fat, sugar and calories to meet the demands of consumers, especially in school districts."

DairyLine is heard on more than 90 radio stations, and IDFA regularly provides a processor perspective on key industry issues. Visit DairyLine to hear Matto's broadcast.