Activities of National All-Jersey Inc.
 
December, 2002

MISSION

  The mission of National All-Jersey continues:

 “To increase the value of and demand for Jersey Milk and to promote equity in milk pricing.”

  Here are some of the things NAJ is doing to help fulfill its mission.

  FEDERAL ORDERS

NAJ’s work with the Federal Order program continues to benefit all high solids milk producers.  National All-Jersey is very pleased with the final decision released by USDA last week.  This decision further supports the idea that milk protein is the component that has the most value in the market. 

 

Based on this final decision, for the January, 2000 – October 2002 period, the producer price for both fat and protein would have dropped about two-cents per pound, but the price of true protein will increase by about 12.5 cents.  The average jersey producer marketing under a federal order will see the component portion of his milk check increase by about 24 cents.

 

There will likely be lawsuits on both sides of this decision, with some groups finding the new prices too high, and others too low.  But we expect the decision to stand pretty much as it is written.  And that is good for progressive Jersey breeders – and the dairy industry.

 

MILK IMPORTS

NAJ is working with a wide group of industry organizations to find ways to deal with growing milk imports. In fact, the NAJ Board of Directors focused on milk imports as the number one NAJ Objective for 2003.  Because milk protein imports are used by the domestic dairy industry, they can threaten the value of milk for cheese and other dairy ingredients, especially domestic milk protein. 

 

NAJ staff has support industry efforts in the recent past to curb protein imports.  We will continue to work with producer groups on this issue, and provide background information for our members.  Current trade agreements do limit what we can do in this area, but we need to find the best ways possible to ensure a strong domestic market for milk components.

 

This next year, NAJ will focus much of its milk import efforts on one of the things we do best:  getting different sides of the industry to work together to find solutions.  We will be focusing on getting major cheese manufacturers (not necessarily buyers) to realize the potential market erosion for their cheese businesses that can result from imported ingredients.

 

Over the next year, NAJ may be calling on our members to write letters and call their representatives to encourage them to work to limit dairy ingredient imports.  We hope we can count on you for assistance with this issue.

 

National All-Jersey Objectives for 2003

While milk protein imports and expansion or improvement of multiple component pricing programs remains our most important objectives, there are many other objectives that NAJ will work on over the next year.

The NAJ Board of Directors adopted the following 2003 Objectives at its November, 2002 meeting:

MISSION:  TO INCREASE THE VALUE OF AND DEMAND FOR JERSEY MILK AND TO PROMOTE "EQUITY" IN MILK PRICING.

  1. Work with the industry to develop workable solutions to milk protein import issues.

  2. Educate National All-Jersey members and their milk buyers on risk management alternatives.  Provide basic assistance as requested.

  3. Promote the nationwide adoption of an equitable Multiple Component Pricing Plan, including adoption in all government regulated milk-pricing programs.

  4. Continue efforts to improve and expand voluntary Multiple Component Pricing markets.  Promote plans that equitably compensate producers of high protein milk, including potential markets outside the traditional manufacturing areas.

  5. Provide consulting services to industry where consistent with NAJ policy and of financial benefit to the organization.  Use the milk yield projection plan for educational purposes.

  6. Promote the adoption of a higher, more flexible protein standard for fluid milk.  Allow processors to adjust the protein levels in raw milk either up or down, as necessary to meet the new standards.  Work in the industry to facilitate successful completion of USDA’s mandated study on higher solids fluid milk.

  7. Develop and promote needed areas of research and programs that will increase the value of and demand for Jersey milk and make milk pricing more equitable.

  8. Increase the number of National All-Jersey Inc. members.

  9. Ensure that Jersey milk is treated equitably when changes in governmental dairy policy and regulations are being made.

  10. Maintain good communication and working relationships between National All-Jersey Inc. and its members and the dairy industry.

  11. Promote the increased acceptance and sales of higher solids fluid milk.

  12. Provide beneficial milk marketing and related information to members.

  13. Inform the American Jersey Cattle Association (AJCA) of milk marketing activities that may affect AJCA programs and services.

  14. Publish and market a weekly fax and monthly forecast.

 

Milk Marketing Policy

Adopted by the National All-Jersey Inc. Board of Directors, March 1995 and amended November 2002

  • Change the milk pricing system to one that will price milk based on its most valuable components, in accordance with their use in consumer products.

  • Promote continuing the implementation of equitable Multiple Component Pricing by individual plants and cooperatives.

  • Increase the minimum solids-not-fat, protein, and/or other solids standards for fluid milk.

  • Support producer-funded dairy promotion and research programs.

  • Promote the development of trade policy consistent with a healthy domestic dairy industry, especially for manufactured products.

 

Policy on Solids-Not-Fat Standards for Fluid Milk

Adopted by the National All-Jersey Inc. Board of Directors, June 1999 and smended November 2000

National All-Jersey (NAJ) supports the adoption of a higher, more flexible solids-not-fat (SNF), protein, and/or other solids standard for fluid milk.  At a minimum, the new standard should equal the average U.S. SNF content in raw milk (8.65%) or true protein content of 3.0% or exceed that level. In addition, processors should be able to adjust the SNF, protein, and/or other solids levels in raw milk either upwards or lower, as necessary to meet the new standard.

The current federal standard of 8.25% for the SNF content of fluid milk products is well below the national solids-not-fat content of milk as it originates on the farm. In order to maintain the integrity and nutritional quality of milk used in fluid milk products and to provide increased uniformity of products offered to consumers, it is important that federal solids-not-fat standards for fluid milk products be increased to or set above the average solids-not-fat content of producer milk.  New technologies already in use in the U.S. and other countries allow for easier standardization of milk fat, protein, and other solids without significant changes in flavor or other properties of fluid milk products.  The U.S. standard for SNF content in fluid milk content should reflect both the natural levels of SNF found in milk, and allow use of the current, modern technologies available to adjust milk solids to the new standard.