SCHUMER: NEW CAYUGA MILK PROCESSING PLANT IS SET TO TAKE OFF ON GLOBAL STAGE WITH PRODUCTION OF DAIRY POWDER, BUT RESTRICTIVE FOREIGN TRADE RULES COULD THREATEN EXPANSION & GROWTH – SENATOR DEMANDS FEDS ENSURE FOREIGN COUNTRIES SECURE LEVEL PLAYING FIELD
Schumer Pushes USTR & USDA to Ensure Countries Like Canada, New Zealand & Japan Fairly Compete with US Manufacturers, Like Cayuga Milk Ingredients LLC – Warned That Trade Restrictions Hinder Competition for Plant, Which Has Big Opportunity to Export Milk Powder
Cayuga Milk Ingredients – Conglomerate of 25 Dairy Farms in Central NY – Are In Process of Building $80M Milk Processing Plant, But Competition from New Zealand’s Unfair Dairy Monopoly & Canada/Japan’s Restrictive Dairy Markets Could Limit Global Success
Schumer to Feds: Protect Upstate NY Dairy from Unfair Trade Barriers in TPP Negotiations
Today, at Cayuga Milk Ingredients LLC in Auburn, U.S. Senator Charles E. Schumer demanded that the U.S. Trade Representative (USTR) and the U.S. Department of Agriculture (USDA) protect Central New York’s dairy sector from new barriers to trade with foreign countries in TPP negotiations and tear down existing restrictions to New York dairy imports. Specifically, Canada, New Zealand and Japan have threatened to slow the progress and success of companies like Cayuga Milk Ingredients, by imposing limitations on the import of milk products and by forcing producers like them to unfairly compete with a monopoly. In particular, Cayuga Milk Ingredients will produce milk powders, which are in high demand globally, but two of the largest markets in TPP – Japan and Canada – maintain tight limits on many of Cayuga Milk Ingredients products.
Schumer highlighted that dairy farmers in Upstate New York and throughout the country are becoming more and more reliant on exporting to the growing global market for the goods they produce, and the Cayuga Milk Ingredients new $80 million plant is dependent on their business with TPP countries such as Canada and Japan. Schumer is therefore calling on the USTR and the USDA to work towards an agreement during closing talks with the Trans-Pacific Partnership (TPP) that would continue to grow U.S. dairy exports by ensuring that Canada and other foreign countries open up their markets and refrain from imposing new restrictive trade rules but rather honor their commitment to open their borders to New York farmers.
“Central New York’s dairy farmers continue to drive a booming industry, but unfair tariffs and barriers to trade with Canada, Japan, and other countries threaten to curb their ability to compete and grow in the international market,” said Schumer. “What’s more, Cayuga Milk Ingredients is poised to launch on to the global stage. But, in light of recently discussed limits to the amount of milk products that can be imported to Canada and Japan, I am urging the USDA and the USTR to ensure that they are focused like a laser on removing both existing trade barriers and preventing new barriers in ongoing TPP trade discussions. I’m also urging that other existing competitive barriers imposed by countries like New Zealand, whose dairy monopoly unfairly squeezes others out of the dairy export business, be reformed. The federal government must focus on every opportunity for our dairy producers to grow and compete, and given that the dairy industry is becoming more and more reliant on the growing global market, a level playing field is essential.”
Schumer continued, “Japan’s entry into the TPP talks offers the opportunity for great reward, but only if fair and competitive trade terms are established. The USTR and USDA should prioritize opening up markets like Japan’s and Canada’s, where milk powder and dairy products made by organizations like Cayuga Milk Ingredients are in high demand.”
Schumer was joined by Kevin Ellis, CEO of Cayuga Milk Ingredients, Cayuga County legislative officials and site workers building the plant. He emphasized that discussions with Canadian partners should focus on removing existing tariffs and protect U.S. industry from new restrictions on imports of U.S. dairy products. In the vein, Schumer stated, they should ensure other new barriers, such as unscientific product standards, are not put in place. If Canada or another country in TPP talks were to impose new restrictive rules, it would have a devastating impact on Cayuga Milk Ingredients and Central New York dairies. Recently, Japan has joined in the TPP negotiations. Schumer explained that their entry poses a unique opportunity for new business for Cayuga Milk Ingredients, because dairy powders are a popular product in Japan. However, their entry also poses certain challenges. In particular, Schumer is urging the USTR and USDA to press Japan on loosening its restrictive market access scheme so U.S. producers can competitively sell to Japan – a country that offers a large and profitable market.
In Central New York, new export markets for American dairy farmers represent opportunities for increased employment and growth in dairy manufacturing. If the USTR and USDA continue to promote better trade relations between our Trans-Pacific partners, it would mean that tens of thousands of farming families throughout the United States can continue to grow their businesses and benefit their local communities in the years ahead. In particular, opening up greater access to markets in Asia and Canada in which milk power is in high demand could pay huge dividends for organizations like Cayuga Milk Ingredients LLC. Schumer attested that Cayuga Milk Ingredients was uniquely situated to meet this demand as one of the most technologically advanced milk processing plants in the Northeast; and because they continue to invest in new infrastructure.
Cayuga Milk Ingredients represents a conglomerate of 25 dairy farms in Central New York, who are in the process of building a new $80 million milk-processing plant. The success of their substantial investment in this infrastructure hinges on the ability to market their milk powder in the global market. Specifically, Cayuga Milk Ingredients expects an open trade agreement with Japan and Canada would yield tremendous opportunities for business growth.
In his letter to USTR and USDA, Schumer emphasized that in ongoing, and intensified Trans-Pacific Partnership negotiations, the federal government must prioritize opening up the global dairy market. In addition to expanding opportunities for the U.S. into the Canadian dairy market, and avoiding limits on certain milk imports in the Canadian and Japanese markets, Schumer also listed other vital issues for the USTR and USDA to address during TPP negotiations, that would not only impact Cayuga Milk Ingredients, but also New York’s dairy and yogurt industry. For example, he noted that New Zealand’s has expressed interest in greater access for its dairy products to the U.S. market. However, Schumer noted that New Zealand’s concentration of virtually 90 percent of its milk supply in the hands of one company gives that company a monopolistic advantage, and could prevent companies like Cayuga Milk Ingredients, from being able to compete with New Zealand.
Schumer also stressed an issue revolving around product standards that impact the wider U.S. agricultural sector as well – the sanitary and phytosanitary (SPS) chapter within TPP. Specifically, Schumer pointed out that safe U.S. food products are too often burdened with unscientific barriers in foreign markets. Schumer wants this obstacle to global dairy competitiveness to be a top priority for USTR during TPP talks in order for science-based domestic standards for health and safety regulations are adopted worldwide.
A copy of Sen. Schumer’s letter appears below:
Dear Sec. Vilsack and U.S. Trade Rep. Ron Kirk:
I would like to express our appreciation for the dedication of USTR and USDA in helping grow U.S. exports, including areas of high importance to our states such as the dairy industry, particularly in rural areas. The tens of thousands of dairy farm families in this country increasingly rely on global markets to help provide growing demand for the milk they produce. In addition to the rural employment created directly by dairy farming, the U.S. is also home to a strong dairy manufacturing sector that helps provide good jobs throughout the states.
As USTR and USDA move forward this year with intensified efforts to bring Trans-Pacific Partnership (TPP) negotiations to a close, I wish to underscore the importance of pursuing a positive outcome for America’s dairy sector and the critical role that dairy-related discussions with Canada and New Zealand will play in achieving that goal. In addition to future opportunities to grow through this negotiation, I am also concerned about the need to maintain current U.S. dairy exports to our TPP partners in the face of potential new barriers to trade. Without open access to Canada and absent significant policy reform by New Zealand, dairy industry in our states strongly believes that the TPP promise of growth in export demand for U.S. dairy all but vanishes and that in its place they could see significant losses here at home.
Strong concerns remain in our states about the expansion of U.S.-New Zealand dairy trade and the impact it could have on this country’s dairy sector if major reforms are not undertaken by New Zealand. New Zealand has consistently expressed interest in greater access for its dairy products to enter the U.S. market. At the same time, it is my understanding that New Zealand has resisted considering significant reforms to its dairy sector policies, which permit the concentration of virtually 90% of its milk supply into the hands of one company. Dairy producers and processors in our states are deeply concerned that this market concentration policy provides New Zealand, the world’s largest dairy exporter, with a tremendous advantage in global markets and are insistent on seeing it effectively addressed as a necessary precursor to any expansion of U.S.-New Zealand dairy trade in TPP. I am deeply concerned that instead of honoring their commitment to opening their border to more trade the Canadian government is considering even more restrictive barriers to trade which are contradictory to their recent entry into the TPP negotiations.
Finally, one of the other major areas of importance is an issue impacting the wider U.S. agricultural sector as well – the sanitary and phytosanitary (SPS) chapter within TPP. This agreement is a key avenue for ensuring that we have binding SPS commitments that improve upon current obligations in this area. Too often, safe U.S. food products are confronted with sudden and unscientific barriers in foreign markets. Using TPP to address that pervasive problem, while upholding high, science-based U.S. standards for protecting the health and safety of all Americans, could improve the export prospects for a wide range of American agriculture.
Thank you for your attention to these issues of concern to us and to America’s dairy economy.
Sincerely,
Charles E. Schumer
U.S. Senator