Dairy processors and milk producers are lining up on opposite sides of proposed legislation that would restrict the flow of imported dairy proteins into the U.S.

No Agreement on MPC Issue

Dairy processors and milk producers are lining up on opposite sides of proposed legislation that would restrict the flow of imported dairy proteins into the U.S. The Milk Import Tariff Equity Act (MITEA) of 2003 would impose Tariff-Rate Quotas (TRQs) on imports of milk protein concentrate, and casein products intended for use in the food and animal feed industries.

The National Milk Producers Federation has been one of the prime movers behind the legislation. NMPF President and CEO Jerry Kozak says legislation is key to any recovery in what he called “crushingly-low milk prices.” “Any recovery in milk prices will be hampered unless Congress does something about these imports,” he added.

Dairy manufacturers see it differently. The International Dairy Foods Assn. says the legislation would increase the costs of ingredients in a wide array of consumer food products by an estimated $150 million a year, leading to overall higher consumer costs. IDFA said putting up new barriers to imported MPCs, caseins, and caseinates, which are not produced domestically, would violate U.S. international trade agreements, leaving exporting countries free to retaliate against U.S. goods, including non-dairy agricultural exports. Bottom line, the group says, the legislation could boomerang on the very people it’s designed to protect, and jeopardize millions of dollars in American farmer income.

MPC, casein, and caseinates are dairy ingredients that are valued for their specialized properties. Manufacturers say they cannot be replaced with nonfat dry milk.

The Senate version of the bill (S.560) has been referred to the Senate Finance Committee. The House version (H.R. 1160) was referred to the House Ways and Means Committee.

J. Mark Huffman

FDA Urged to Act on Yogurt Standards

IDFA and the Milk Industry Foundation are asking the FDA to act swiftly on a petition to update the federal standards of identity for yogurt. A petition from the National Yogurt Assn. was submitted in February 2000. This request is part of IDFA's efforts to encourage FDA to move forward on petitions to update the existing standards of identity for dairy products, which make up about 40% of all FDA food standards. The industry groups are asking that FDA publish the petition as a proposed rule, rather than issuing an advance notice of proposed rulemaking.