AMPI to sell New Ulm butter plant

Associated Milk Producers Incorporated is selling its New Ulm, Minnesota, butter plant to Grassland Dairy of Greenwood, Wisconsin. The sale is expected to close at the end of the year. An AMPI spokesperson said the move will allow AMPI to focus on its core business, which is cheese. AMPI’s headquarters will remain in New Ulm, as it is the geographic center of the cooperative’s manufacturing footprint and its membership. AMPI will maintain its Dinner Bell Creamery brand and is also planning a production change at its Blair, Wisconsin processing plant. Rather than producing cheddar cheese, this facility will manufacture cottage cheese, which is new to the AMPI portfolio. A medium cheddar cheese produced in the Blair location was named best in its class and second runner-up overall in the 2024 U.S. Championship Cheese Contest.

Tariff strategy impacts trade relationships

Dairy farmers and dairy processors are feeling the impact of the current U.S. tariff strategy. “We understand the need to level this trade playing field and really support that, but there’s a real urgency to defining these relationships,” said Sheryl Meshke, CEO of Associated Milk Producers Incorporated. “We’ve worked since 2020; some have worked decades to build these trade relationships, and we just can’t afford, the dairy farmer can’t afford, for those to be dismantled.” Ninety-five percent of AMPI products are sold to domestic customers, but the co-op made a move to grow the export portion of its business five years ago. “We focused on value-added exports, so not the cheapest, but honing those relationships with countries, in-house distributors and in-market distributors with things like slice-on-slice, shred and that consistent need that they will have for those value-added products,” Meshke said.

Trade deals announced

President Donald Trump and his administration negotiated a handful of trade deals during a whirlwind eight days in Southeast Asia. The trip coincided with the Asia-Pacific Economic Cooperation summit in Malaysia. Reciprocal trade agreements were completed with Malaysia and Cambodia, and framework deals were done with Thailand and Vietnam. With this action, Malaysia will give preferential market access to U.S. ag products, including dairy products. A similar plan is in place with Cambodia; additionally, Cambodia agreed to allow the use of common names for U.S. cheese and meat products. The National Milk Producers Federation and International Dairy Foods Council praised the trade activity: “The agreement with Malaysia will deliver meaningful gains for U.S. dairy exporters, including the elimination of virtually all remaining dairy tariffs, state-of-the-art protections for common cheese names, assurances regarding dairy certification, recognition of the U.S. dairy safety system, streamlining of facility registration requirements and reinforcement of the vital importance of basing regulations on sound science.”

Dairy-RP payments impacted by government shutdown

The government shutdown affected the release of the United States Department of Agriculture Milk Production report. Dairy farmers enrolled in the Dairy Revenue Protection program for the third quarter are also impacted. Dairy-RP indemnity payments are calculated with information from the Milk Production report. As a result, payments are postponed until the report is published or another solution is announced.

An additional 10% tariff imposed on Canada

President Trump is punishing Canada for an ad campaign funded by the province of Ontario, using the voice of former President Ronald Reagan. The comments in the ad campaign came from a 1987 radio address where Reagan spoke in favor of free trade and against tariffs. On Truth Social, Trump said the ad is “a serious misrepresentation of the facts and a hostile act.” An additional 10% tariff on Canadian imports was also included in the social media post. Trade negotiations between the two countries were also canceled.

IDFA highlights trade barriers

The International Dairy Foods Association has submitted formal comments to the U.S. Trade Representative’s Office, highlighting the trade barriers for U.S. dairy exports. Topping the list is Canada’s tariff rate quota and milk pricing policy, Mexico’s proposal to limit U.S. milk powder imports, China’s state-owned enterprises and the EU’s expansion of geographical indications and environmental regulations.

Dietary guidelines delayed

The Trump administration is delaying the release of the new dietary guidelines due to the ongoing government shutdown. The Department of Health and Human Services and USDA were planning to finalize the report by the end of October, but the release is now tentatively scheduled for December. These guidelines are updated every five years. Robert F. Kennedy’s Make America Healthy Again movement is expected to put its stamp on these recommendations.

Minnesota FFA president launches ‘Let’s Speak Ag’ podcast series

The National FFA SpeakAg Pioneers promote advocacy and agricultural literacy, and Minnesota FFA State President Cameron Addington is part of the program. “I’ll be partnering with a state officer from Pennsylvania, Lexi Butler, and we’re taking podcasting as our main avenue for ag advocacy,” Addington said. “Over the next couple of months, we’re going to be rolling out a mini-series called Let’s Speak Ag where we’ll be interviewing farmers and stakeholders and people within National FFA.” The first episode is scheduled for release around Thanksgiving and will be available for download on Spotify and Apple Music.

Thompson moves to academia

South Dakota State Veterinarian Beth Thompson has accepted a new role. Effective Nov. 17, Thompson will join Virginia-Maryland College of Veterinary Medicine as an associate professor in the Center for Public and Corporate Veterinary Medicine. Thompson has been on the job in South Dakota for three and a half years. Before that, she was the state veterinarian in Minnesota.

Connelly is back at MDA

Christina Connelly is the new international trade supervisor with the Minnesota Department of Agriculture. For the past 11 years, Connelly worked in the Minneapolis Office of the Consulate General of Canada as a trade commissioner. Connelly is returning to MDA, having spent six years with the Department from 2008 to 2014.

Trivia Challenge

Feta is the Greek, brined, crumbly cheese. That answers our last trivia question. For this week’s trivia, what company has been the biggest manufacturer of mac and cheese since the 1940s? We’ll have the answer in our next edition of the Dairy Star.

Don Wick is owner/broadcaster for the Red River Farm Network of Grand Forks, North Dakota. Wick has been recognized as the National Farm Broadcaster of the Year and served as president of the National Association of Farm Broadcasting. Don and his wife, Kolleen, have two sons, Tony and Sam, and five grandchildren, Aiden, Piper, Adrienne, Aurora and Sterling.