California declares emergency as more states test for bird flu

December 20, 2024

SACRAMENTO, Calif. — California Gov. Gavin Newsom on Wednesday proclaimed a state of emergency to streamline and expedite the state’s response to avian influenza A (H5N1), commonly known as “bird flu.” This action comes as cases were detected in dairy cows on farms in Southern California, signaling the need to further expand monitoring and build on the coordinated statewide approach to contain and mitigate the spread of the virus. The virus has spread in 16 states among dairy cattle, following its first confirmed detection in Texas and Kansas in March 2024.

To date, no person-to-person spread of bird flu has been detected in California, and nearly all infected individuals had exposure to infected cattle. California already has established the largest testing and monitoring system in the nation to respond to the outbreak.

This emergency proclamation will provide state and local agencies with additional flexibility around staffing, contracting and other rules to support California’s evolving response.

“This proclamation is a targeted action to ensure government agencies have the resources and flexibility they need to respond quickly to this outbreak,” Newsom says. “Building on California’s testing and monitoring system — the largest in the nation — we are committed to further protecting public health, supporting our agriculture industry and ensuring that Californians have access to accurate, up-to-date information. While the risk to the public remains low, we will continue to take all necessary steps to prevent the spread of this virus.”

California has mobilized a comprehensive cross-agency response to bird flu in dairy cattle and poultry farms to minimize farm worker exposures, reduce raw dairy product contamination and mitigate the spread of the virus. The state has enlisted local, state and federal government technical and operational expertise to support all facets of the response; worked to educate the public, health professionals, employers and workers on prevention and control measures to reduce the risk of exposure to bird flu; provided comprehensive information for employers and workers on personal protective equipment (PPE) requirements; and distributed millions of pieces of PPE to high-risk workers at dairy farms.

Through coordinated public awareness efforts between the California Department of Public Health (CDPH), the California Department of Food and Agriculture (CDFA), California Office of Emergency Services (CalOES) and other agencies, the state is leading a cross-agency response that includes timely public updates, multilingual outreach to dairy and poultry workers, targeted social media efforts to promote preventive practices, online and printed resources for the public, and media interviews to keep Californians informed. Additionally, the state is ensuring that agriculture workers have access to additional doses of seasonal flu vaccine from the Centers for Disease Control and Prevention (CDC) to reduce concurrent flu risks.

Officials also have been working in close collaboration with CDC, FDA, USDA and local health and agricultural officials as part of a whole-of-government effort to coordinate, implement and ensure timely surveillance and investigation of potential cases of bird flu.
Also in California, last week CDFA ordered a statewide recall and quarantine of raw milk produced and packaged by Valley Milk Simply Bottled of Stanislaus County. The recall order follows the detection of the bird flu virus in samples taken from a raw milk bulk tank at the Valley Milk Simply Bottled dairy farm.

The order applies to all “Valley Milk Simply Bottled Raw Cow Milk” and “DESI Milk Raw Cow Milk” distributed in quart (32-ounce), half-gallon (64-ounce) and one-gallon (128-ounce) plastic jugs with a code date marked on the container of Dec. 23, 2024, through Dec. 30, 2024.

Consumers have been strongly urged not to consume any product remaining in their refrigerators, and retailers are to pull the product immediately from their shelves. No illnesses have been reported.

CDFA notes that drinking raw milk containing bird flu virus may lead to infection with this rare, emerging flu virus. Symptoms of bird flu infection in humans include eye redness or discharge, cough, sore throat, runny or stuffy nose, diarrhea, vomiting, muscle or body aches, headaches, fatigue, trouble breathing and fever.

While raw milk sales are legal in California and production practices are highly regulated, without the critical food safety step of pasteurization, public health experts long have warned consumers against consuming raw milk or raw milk products due to elevated risk of foodborne illness, CDFA adds. Due to this elevated risk, all raw milk products sold in the state must contain a warning label that states the product may contain harmful pathogens.

CDFA has been working with USDA as well as local and state partners to monitor bird flu in farm animals and the people who work closely with them. CDFA conducts extensive bird flu testing throughout the state and establishes quarantine boundaries where necessary to protect animal and human health.

Meanwhile, on Tuesday USDA’s Animal and Plant Health Inspection Service (APHIS) announced the second round of states coming on board as part of its National Milk Testing Strategy (NMTS) that was launched Dec. 6, and which requires that raw milk samples nationwide be collected and shared with USDA for testing. (See “USDA begins new milk testing strategy to detect bird flu virus” in last week’s issue of Cheese Market News.)

This announcement represents the next step toward conducting complete nationwide surveillance under the NMTS and continues to build on measures taken by USDA and its federal and state partners since the outbreak of highly pathogenic avian influenza H5N1 in dairy cattle first was detected in March.

As of this week’s announcement, the seven states that will be included in this second round are: Indiana, Maryland, Montana, New York, Ohio, Vermont and Washington.

USDA notes that it consistently operates on a science-based, step-by-step approach, informed by what it learns about this virus through its everyday work, as well as research and surveillance efforts. NMTS marks the next step in escalating that response to meet needs based on the facts on the ground. This expanded testing effort is one part of USDA’s broader strategy to contain and ultimately eliminate the virus from the national dairy herd.

USDA continues to stress to farmers nationwide the critical importance of effective biosecurity practices as the best weapon against the spread of disease and has provided recommendations for livestock producers. The department strongly recommends that all producers review their current biosecurity measures and ensure best practices identified over the past eight months are incorporated, even if bird flu has not been detected in their state or region. More information about biosecurity best practices can be found at www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/livestock/enhance-biosecurity.

Updates on the latest states and number of dairy herds affected by the bird flu virus are available at www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/hpai-confirmed-cases-livestock.

CMN

Stakeholders urge Congress to prevent government shutdown

December 20, 2024

WASHINGTON — The U.S. goverment is preparing for a shutdown this weekend as Congress has struggled to pass a continuing resolution (CR), with current government funding set to expire at midnight tonight and key farm program funding hanging in the balance.

Two proposals have been introduced and rejected over the past few days. Republicans on Wednesday rejected a bill announced by House Speaker Mike Johnson, R-La. News reports say Republican members of Congress were under pressure from President-elect Trump and Elon Musk, whom Trump has nominated to head up the proposed Department of Government Efficiency next year alongside Vivek Ramaswamy, to reject Johnson’s proposed bill and eliminate certain provisions while pairing any funding measure with a suspension of the debt limit. The current debt limit suspension is set to expire early next year under a bipartisan 2023 deal, news reports say, noting that the agreement would suspend the debt limit for two years.

Yesterday it was reported that House Republicans reached a tentative agreement that was backed by Trump, but it failed to pass 174-235. This morning, news outlets report lawmakers have been meeting to discuss other options, such as separate policy bills, while the White House is alerting agencies to prepare for a shutdown. As of press time, the third bill had not yet been introduced.
U.S. dairy and agricultural stakeholders have urged Congress to move forward to pass a CR, with key farm program funding hanging in the balance.

In a letter to Congress on Thursday, National Farmers Union (NFU) President Rob Larew urged lawmakers not to abandon family farmers and ranchers and stressed the critical importance of including economic and disaster relief for farmers in any CR package.
“While National Farmers Union continues to support the previously negotiated continuing resolution, we must stress that any new or revised CR must continue to include an extension of the 2018 Farm Bill, along with robust disaster and economic assistance that helps farmers across the country facing devastating natural disasters and a worsening farm economy,” he says. “The bill should also continue to provide for nationwide year-round sales of E15 blends of ethanol, which helps farmers and consumers while supporting domestic fuel production.

“Farmers are already planning for the next growing season, and Congress must not continue to delay setting our farm policy for the year ahead. Kicking the can down the road into the new year is not acceptable,” Larew adds. “Family farmers simply cannot wait any longer; without timely economic assistance, many farmers will be forced out of business. On behalf of NFU’s more than 230,000 family farmers and ranchers, I urge Congress to stand by their commitment to the people that feed and fuel our nation in a year-end funding package.”

American Farm Bureau Federation (AFBF) President Zippy Duvall also sent a letter to Congress this week urging leaders to stand with farmers as they reconsider the contents of a CR to fund the federal government and potentially offer a lifeline to farmers and ranchers.

“Any alternative continuing resolution must include: a farm bill extension, aid to rebuild after natural disasters, economic assistance to bridge the gap until we can get to a new farm bill and year-round E15 sales,” Duvall says. “Farmers in America are experiencing their third year in a row of losing money. Right now, lenders are telling farm families that operating loans will not happen or be significantly smaller unless the federal government provides some relief. We’ve lost 141,000 farms in a five-year period, and that number will grow if Congress fails to act.”

Meanwhile, this week dairy and ag stakeholders praised the announcement that U.S. Rep. Angie Craig, D-Minn., has been elected as ranking member of the House Agriculture Committee.

“IDFA congratulates Rep. Craig on her election to serve as the next ranking member of the House Agriculture Committee,” says Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA). “Since joining Congress, Rep. Craig has been a strong champion for policies that benefit America’s dairy processors and farmers, including her leadership on expanding export opportunities, strengthening federal nutrition programs to include nutritious dairy and supporting innovation within the dairy sector.”

Dykes notes that as a cosponsor of both the Dairy Nutrition Incentive Program Act and the Whole Milk for Healthy Kids Act, Craig is focused on increasing healthy dairy consumption and delivering critical nutrients to participants in the Supplemental Nutrition Assistance Program, children and all Americans.

“Her background and commitment to agricultural and rural communities, Minnesota’s rich dairy heritage and Rep. Craig’s proven track record of bipartisanship give us confidence in her ability to champion the interests of U.S. dairy,” he says. “IDFA looks forward to working with Rep. Craig, Chairman (Glenn) Thompson and other members of the committee to ensure healthy and nutritious dairy products are available to more Americans.”

AFBF also congratulated Craig, noting she has a long history of working in a bipartisan manner to advance the needs of America’s farmers and ranchers.

“Her leadership is needed now more than ever as farmers face economic headwinds including inflation, high supply costs and decreasing commodity prices,” Duvall says. “Those challenges can quickly become a crisis if they’re not addressed with a new, modernized farm bill. Congress has kicked the can down the road too many times. Now is the time to act. We stand ready to work with Rep. Craig to ensure passage of a new five-year farm bill and to address other matters important to agriculture and rural America.”

CMN

November milk production drops 0.8% in major states

December 20, 2024

WASHINGTON — Milk production in the 24 major milk-producing states in November totaled 17.18 billion pounds, down 0.8% from November 2023’s 17.31 billion pounds, according to data released this week by USDA’s National Agricultural Statistics Service (NASS). For the entire United States, November milk production was estimated at 17.88 billion pounds, down 1.0% from November 2023’s 18.05 billion pounds. (All figures are rounded. Please see CMN’s Milk Production chart.)
NASS reports October’s revised production for the 24 major states totaled 17.99 billion pounds.

November production per cow in the 24 major states averaged 1,925 pounds, down 22 pounds from November 2023 and down 90 pounds from October. For the entire United States, production per cow in November is estimated at 1,909 pounds, down 23 pounds from November 2023 and down 89 pounds from October.

NASS reports the number of milk cows on farms in the 24 major states was 8.92 million head in November, up 32,000 head from November 2023 and down 2,000 head from October. In the entire United States, there were an estimated 9.37 million milk cows in November, up 20,000 cows from November 2023 and down 5,000 cows from October.

California led the nation’s milk production in November with 2.96 billion pounds of milk, down 9.2% from November 2023. Wisconsin followed with 2.58 billion pounds of milk produced in November, down 0.3% from November 2023.

CMN

USDA begins new milk testing strategy to detect bird flu virus

December 13, 2024

WASHINGTON — USDA’s Animal and Plant Health Inspection Service (APHIS) last Friday announced the start of its National Milk Testing Strategy (NMTS), which builds on measures taken by USDA and federal and state partners since the outbreak of highly pathogenic avian influenza (HPAI) H5N1 in dairy cattle first was detected in March. USDA has issued a new Federal Order, as well as accompanying guidance, requiring that raw milk samples nationwide be collected and shared with USDA for testing. USDA says its new guidance, which was developed with significant input from state, veterinary and public health stakeholders, will facilitate comprehensive H5N1 surveillance of the nation’s milk supply and dairy herds.

“Since the first HPAI detection in livestock, USDA has collaborated with our federal, state and industry partners to swiftly and diligently identify affected herds and respond accordingly. This new milk testing strategy will build on those steps to date and will provide a roadmap for states to protect the health of their dairy herds,” says U.S. Agriculture Secretary Tom Vilsack. “Among many outcomes, this will give farmers and farmworkers better confidence in the safety of their animals and ability to protect themselves, and it will put us on a path to quickly controlling and stopping the virus’ spread nationwide. USDA is grateful to our partners who have provided input to make this strategy effective and actionable, and we look forward to continued collaboration in seeing this through.”

This NMTS is designed to increase USDA’s and public health partners’ understanding of the virus’ spread in the United States through a structured, uniform and mandatory testing system that will help swiftly identify which states, and specific herds within them, are affected with H5N1; support the rapid implementation of enhanced biosecurity measures to decrease the risk of transmission to other livestock; and inform critical efforts to protect farmworkers to help lower their risk of exposure. USDA says it believes this additional step is needed to proactively support effective biosecurity measures, which is key for states and farmers to contain and eliminate H5N1 infections from their livestock and to eliminate HPAI in livestock across the U.S. dairy population.

“This testing strategy is a critical part of our ongoing efforts to protect the health and safety of individuals and communities nationwide,” says U.S. Health and Human Services (HHS) Secretary Xavier Becerra. “Our primary responsibility at HHS is to protect public health and the safety of the food supply, and we continue to work closely with USDA and all stakeholders on continued testing for H5N1 in retail milk and dairy samples from across the country to ensure the safety of the commercial pasteurized milk supply. We will continue this work with USDA for as long and as far as necessary.”

The Federal Order released last Friday makes three new requirements. First, it requires the sharing of raw milk samples, upon request, from any entity responsible for a dairy farm, bulk milk transporter, bulk milk transfer station or dairy processing facility that sends or holds milk intended for pasteurization. Second, the Federal Order requires herd owners with positive cattle to provide epidemiological information that enables activities such as contact tracing and disease surveillance. Finally, like USDA’s April 24 Federal Order, it requires that private laboratories and state veterinarians report positive results to USDA that come from tests done on raw milk samples drawn as part of the NMTS. The first round of silo testing under the Federal Order and the NMTS is scheduled to begin the week of Dec. 16, although some states already are conducting testing compatible with the NMTS.

This new Federal Order does not override or supersede USDA’s April 24 Federal Order, which still requires the mandatory testing of lactating dairy cows prior to interstate shipment and requires that all privately owned laboratories and state veterinarians report positive test results connected with those tests. The new Federal Order announced last week is intended to complement and enhance this existing order.

For more information about USDA’s response to HPAI in dairy cattle, visit www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/livestock.

CMN

Dairy groups weigh in on report from Dietary Guidelines panel

December 13, 2024

WASHINGTON — The Scientific Report of the 2025 Dietary Guidelines Advisory Committee (DGAC) is now available on www.DietaryGuidelines.gov. The report contains the 2025 DGAC’s independent, evidence-based findings and advice to the U.S. Department of Health and Human Services (HHS) and USDA. The report, alongside public comments and federal agency input, will inform the two departments as they develop the Dietary Guidelines for Americans, 2025-2030, which is expected to be published in late 2025.

“This report will help to ensure that the next edition of the Dietary Guidelines is based on current scientific evidence and medical knowledge, and that future guidelines factor in socioeconomic status, race, ethnicity and culture,” says HHS Secretary Xavier Becerra. “I want to thank the committee for all their hard work, as well as the American people for sharing their voice with us in this process. Together, we can help Americans enjoy a healthy diet and the health benefits that are possible as a result.”

The 2025 DGAC’s work is notable for its intentional focus on health equity to ensure that factors such as socioeconomic position, race, ethnicity and culture were considered to the greatest extent possible. The committee also expanded the scope of evidence reviewed beyond recommended amounts and types of foods to also include strategies to effectively promote healthy dietary patterns across the lifespan.

“USDA and HHS are excited to begin the next phase to develop the Dietary Guidelines for Americans, as we all work together to ensure that children, individuals and families across the country have access to nutritious, safe and affordable food,” says USDA Secretary Tom Vilsack. “We are appreciative of the independent committee’s scientific expertise, dedication, and thoughtful deliberation and collaboration. We are also thankful to the organizations and individuals who submitted public comments and provided an essential voice to the committee’s process, and we look forward to receiving additional public comments on the findings released with this Scientific Report.”

HHS and USDA will open a 60-day public comment period and encourage the public to provide written comments on the Scientific Report. The departments also will hold a public meeting Jan. 16 to listen to oral comments from the public on the report. Pre-registration is required for the public meeting. More information on the public meeting and comment period is available on www.DietaryGuidelines.gov.

The Scientific Report will be a key resource considered by HHS and USDA as the two departments jointly develop the next edition of the Dietary Guidelines for Americans, the nation’s go-to source for nutrition guidance. The Dietary Guidelines for Americans is updated every five years and serves as the cornerstone of federal nutrition programs and policies, providing food-based recommendations to help prevent diet-related chronic diseases and promote overall health.

Food, dairy and agricultural stakeholders this week weighed in on the release of the Scientific Report.

The National Milk Producers Federation (NMPF) lauded the Dietary Guidelines Advisory Committee for recognizing dairy’s important role in a healthy diet and its continued recommendation of three servings of dairy for Americans 2 years and older.

“Throughout this process, the committee looked carefully at the nutrition dairy products provide. The committee’s scientific review showed that reducing or eliminating dairy from the diet leads to undernourishment in key nutrients for millions of Americans,” says Gregg Doud, president and CEO of NMPF. “The review also made clear that expanding the food group to include additional plant-based alternative beverages outside of fortified soy is not supported by scientific evidence. Specifically, the committee noted ‘the direct substitution of plant-based milk alternatives for cow’s milk within the patterns may introduce unintended consequences for meeting other nutrient recommendations and may vary by product selected.’ This is especially important, as the Dietary Guidelines greatly affect the food options available to children through school meals and other nutrition programs.”

NMPF also thanked the committee for acknowledging that dairy is an equitable option that provides accessible and affordable sources of essential nutrients to everyone, and that lactose-free and lactose-reduced dairy foods can provide those same nutrients for people who may not be able to tolerate regular dairy.

However, the organization says it is disappointed that the committee only recommends consumption of unflavored milk, especially as it acknowledged that flavored milk contains beneficial nutrients and did not explicitly conclude any connection between flavored milk consumption and obesity risk.

“It is reassuring that the committee came to multiple conclusions supporting dairy that are backed by decades of scientific evidence,” Doud says. “We encourage the agencies to look further into recent science supporting the benefits of whole milk in the diet. The committee found evidence that substituting higher-fat dairy with lower-fat dairy showed no association with cardiovascular disease morbidity, and it also found evidence of positive benefits for growth and bone health specifically related to whole milk consumption by young children. We see these conclusions as positive steps. We will continue to advocate for consideration of full-fat dairy in the final Dietary Guidelines expected to be released next year.”

Roberta Wagner, senior vice president of regulatory and scientific affairs at the International Dairy Foods Association (IDFA), notes that 20 leading dietitians, physicians and public health experts that comprise the federal DGAC confirmed dairy products should continue to maintain a central, important role in federal nutrition recommendations for people beginning at a very early age and that most Americans should consume three servings of dairy per day.

“The committee, which evaluates the latest findings and overall bodies of evidence in nutrition science, found strong evidence pointing to positive health outcomes from dairy foods. In fact, the committee includes dairy as a core category in the recommended ‘Eat Healthy Your Way’ dietary pattern alongside fresh fruits and vegetables, legumes and whole grains. The U.S. dairy industry is pleased to see that the science has once again affirmed the unmatched health and nutrition benefits that dairy products provide to people of all ages,” Wagner says. “The report also highlighted the association between total and higher-fat milk with favorable growth outcomes, including lower risk of obesity, in younger children. Dairy processors provide a wide range of nutritious dairy options, at a variety of fat and sweetness levels that can work within the healthy diets of Americans.

“Unfortunately, the DGAC excluded a number of scientific studies which show the health benefits of dairy at each fat level,” Wagner adds. “IDFA has for many months urged the committee to disclose what research it would rely upon to form its recommendations, yet the DGAC science selection and review process remained opaque and unavailable to public review and comment until now — after the report has been submitted to HHS and USDA.”

Wagner notes there is robust evidence to support the federal government disposing of its outdated recommendation to limit dairy consumption based on fat level.

“The latest science shows that full fat dairy products do not increase risk of cardiovascular disease or weight gain and that they may in fact have positive health benefits,” she says, noting that IDFA provided the committee with the body of science to support this point, but the vast majority of those studies were ultimately excluded from DGAC review.

“IDFA encourages HHS and USDA to remedy this oversight in the final DGAs expected to issue in 2025, and to work to ensure a more transparent and scientifically rigorous process for the development of future DGAC reports,” Wagner says.

Peter G. Lurie, president of the Center for Science in the Public Interest, says that overall, the DGAC’s report is evidence-based and grounded in a systematic and transparent process.

“The committee’s advice would strengthen the Dietary Guidelines by emphasizing consumption of fruits, vegetables, plant-based proteins and whole grains, while limiting red or processed meat, refined grains and foods high in saturated fat, sodium and added sugar,” Lurie says, adding that HHS and USDA should follow the DGAC’s evidence-based recommendation to maintain current recommended limits on saturated fat, added sugar and sodium, despite inevitable opposition from the food industry.

“The limitations in the evidence base related to ultra-processed foods identified in the DGAC report should provide more impetus for research into the impacts of these foods,” he continues. “In the meantime, the committee’s recommendations would strengthen existing advice to limit foods that clearly pose negative health risks and which include many foods considered ultra-processed: those high in added sugar, saturated fat, sodium, processed meat and refined grains. The incoming administration would do well to adopt the committee’s recommendations in their current form; if followed, they have the potential to encourage Americans to eat better.”

CMN

FTC blocks Albertsons, Kroger merger; companies nix deal

December 13, 2024

PORTLAND, Ore. — The U.S. District Court of Oregon this week granted the Federal Trade Commission’s (FTC) request for a preliminary injunction to prevent Kroger Co. from acquiring Albertsons Cos. Inc. in what would be the largest supermarket merger in U.S. history. FTC challenged the $24.6 billion deal alongside a bipartisan group of nine state attorneys general.
The verdict temporarily blocks the merger from moving forward while FTC conducts administrative proceedings which will determine the merger’s ultimate fate.

“The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger’s acquisition of Albertsons,” says Bureau of Competition Director Henry Liu. “This historic win protects millions of Americans across the country from higher prices for essential groceries — from milk, to bread, to eggs — ultimately allowing consumers to keep more money in their pockets.”

Liu adds this also is a victory for union employees, as it ensures Kroger and Albertsons continue to compete for workers through higher wages, better benefits and improved working conditions.

The verdict handed down Tuesday by Judge Adrienne Nelson is good news for these chains’ customers and employees, especially those who are experiencing nutrition or food insecurity, says Peter Lurie, president of the Center for Science in the Public Interest.

“The last thing Americans need right now is higher food prices, fewer grocery stores and less retailer competition. And that’s exactly what the proposed mega-merger of the Kroger and Albertsons supermarket chains would have delivered to consumers,” Lurie says, noting that this merger would have created the nation’s second-largest grocer which, along with the largest grocer, Walmart, would have controlled more than half of the U.S. food retail market.

Also Tuesday, a King County judge in Washington state ruled that the proposed merger of the grocery chains is unlawful and cannot go forward. The decision follows a September trial in Washington Attorney General Bob Ferguson’s antitrust case challenging the merger.

King County Superior Court Judge Marshall Ferguson agreed with the attorney general that the merger violates Washington antitrust law, preventing the merger from going forward.

The day after these rulings were made, Albertsons filed a lawsuit alleging that Kroger caused the merger to be blocked by refusing to offer an adequate divestiture package and repeatedly ignoring regulators’ concerns.

The lawsuit, filed in the Delaware Court of Chancery, brings claims of willful breach of contract and breach of the covenant of good faith and fair dealing that Albertsons says arise from Kroger’s failure to exercise “best efforts” and to take “any and all actions” to secure regulatory approval of the companies’ agreed merger transaction, as was required of Kroger under the terms of the merger agreement between the parties.

“A successful merger between Albertsons and Kroger would have delivered meaningful benefits for America’s consumers, Kroger’s and Albertsons’ associates and communities across the country,” says Tom Moriarty, general counsel and chief policy officer, Albertsons. “Rather than fulfill its contractual obligations to ensure that the merger succeeded, Kroger acted in its own financial self-interest, repeatedly providing insufficient divestiture proposals that ignored regulators’ concerns. Kroger’s self-serving conduct, taken at the expense of Albertsons and the agreed transaction, has harmed Albertsons’ shareholders, associates and consumers. We are disappointed that the opportunity to realize the significant benefits of the merger has been lost on account of Kroger’s willfully deficient approach to securing regulatory clearance.”

Albertsons says its claims against Kroger are confirmed by the recent rulings in Oregon and Washington, and that those results could have been avoided but for Kroger’s breaching conduct.

Albertsons is seeking billions of dollars in damages from Kroger to make Albertsons and its shareholders whole. Albertsons adds that its shareholders have been denied the multibillion-dollar premium that Kroger agreed to pay for Albertsons’ shares and have been subjected to a decrease in shareholder value on account of Albertsons’ inability to pursue other business opportunities as it sought approval for the transaction. Albertsons also seeks to recover for the time, energy and resources it invested in good faith to try to make the merger a success.

In light of Oregon and Washington courts’ rulings enjoining the company’s proposed merger with Kroger and Kroger’s failure to close the merger before the contractual deadline to do so, Albertsons has notified Kroger of its decision to terminate the merger agreement. This termination entitles Albertsons to an immediate $600 million termination fee and removes contractual constraints on Albertsons’ ability to pursue other strategic opportunities.

In addition to the $600 million termination fee, Albertsons claims it is entitled to relief reflecting the multiple years and hundreds of millions of dollars it devoted to obtaining approval for the merger, along with the extended period of unnecessary limbo Albertsons
endured as a result of Kroger’s actions. Albertsons further seeks to recover certain expenses and costs.

Kroger responded to Albertsons’ lawsuit, calling its claims “baseless and without merit,” adding that this is “clearly an attempt to deflect responsibility following Kroger’s written notification of Albertsons’ multiple breaches of the agreement” and to seek payment of the merger’s break fee, to which Kroger says Albertsons is not entitled.

“Kroger looks forward to responding to these baseless claims in court. We went to extraordinary lengths to uphold the merger agreement throughout the entirety of the regulatory process, and the facts will make that abundantly clear,” The Kroger Co. says in a statement. “We are incredibly proud of the Kroger team for how they worked through the merger process with the highest degree of integrity and commitment.”

Kroger says its board of directors currently is evaluating next steps that serve the best interests of Kroger’s customers and associates, and create value for shareholders.

CMN

Lawmakers face deadline for funds; Trump adds nominees

December 6, 2024

WASHINGTON — Lawmakers returned to Washington, D.C., this week, facing a Dec. 20 deadline to approve a new funding resolution to keep the government operating as well as looking at possibly passing a disaster aid package and farm bill extension before the end of year.

While Congress considers another extension of the 2018 Farm Bill, 17 Republican governors this week called on House and Senate leaders to pass a new farm bill now rather than wait for 2025.

“An outdated farm bill — last reauthorized in 2018 — has left America’s farmers and ranchers operating under a framework that is no longer viable,” the letter says. “Since the expiration of the latest farm bill, conditions have dramatically changed; another yearlong extension will leave farmers working under an outdated plan as they continue to face evolving challenges in today’s agricultural landscape.”

The governors cite inflation, input costs, natural disasters and the agricultural trade deficit having an impact on producers.

“Farmers are projected to lose up to $35 billion in lost profit this year alone. And in many communities, some farmers and ranchers will not be able to continue their operations beyond this year,” the letter says. “Any loss of agricultural operations directly impacts the provision of basic necessities that we all depend on every single day. Domestic agricultural production is a matter of national security. If a country can’t feed itself, fuel itself or fight for itself, then it cannot survive. It is imperative that the United States not become dependent on other countries for our food supply while we have the best farmers and ranchers in the world right in our backyards.”

Governors on the letter were from Alabama, Arkansas, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nevada, Ohio, Oklahoma, South Carolina, Tennessee, Utah and West Virginia.

In other government news, President-elect Donald Trump continues to announce Cabinet nominations, including international trade attorney Jamieson Greer for U.S. trade representative.

Greer previously served as chief of staff to Robert Lighthizer, Trump’s former trade representative. In announcing Greer’s nomination, Trump said in a statement that Greer was instrumental in his first term in imposing tariffs on China and others and replacing the trade agreement with Canada and Mexico.

Trump previously has announced plans to impose 25% tariffs on all imports from Mexico and Canada and an additional 10% tariffs on all imports from China as soon as he is inaugurated in January, according to news reports.

Trump also recently announced the nomination of Marty Makary to lead the FDA. Makary is a surgical oncologist at Johns Hopkins Hospital in Baltimore and previously was an advisor at the conservative think tank Paragon Health Institute.

CMN

USDA and FDA issue request for information on food date labels

December 6, 2024

WASHINGTON — FDA and USDA this week announced a joint Request for Information (RFI) about food date labeling, which includes the usage of terms such as “Sell By,” “Use By” and “Best By.”

The RFI seeks information on industry practices and preferences for date labeling, research results on consumer perceptions of date labeling and any impact date labeling may have on food waste and grocery costs. For example, questions in the RFI include which products contain date labels and what criteria are used to decide what phrase to use and what date to include. The RFI also asks questions about how consumers interpret date label information, including whether consumers are confused by this information — especially if they believe the dates determine whether food is safe when in fact, they indicate quality — or whether it has impacts on decisions made while grocery shopping or discarding food. Finally, there are questions that explore any relationship between date labels, food waste and household expenses.

USDA’s Food Safety and Inspection Service (FSIS) and FDA jointly have broad jurisdiction and oversight over the U.S. food supply. They have responsibility for ensuring that food labels on products over which they each have jurisdiction are truthful and not misleading. The information collected from the RFI may be used to inform future policy decisions, guidance or consumer education campaigns on food date labels intended to help reduce the premature discard of wholesome and safe food.

“It has been estimated that confusion over the multitude of different date labeling terms on food products accounts for about 20% of food waste in the home. The information collected will help us understand consumers’ perception of terms like ‘Sell By,’ ‘Use By’ and ‘Best By,’” says FDA Deputy Commissioner for Human Foods Jim Jones. “We are looking forward to gathering valuable information to determine how date labeling can make it easier for consumers to know whether a food is still good to eat and avoid food waste. The FDA is committed to doing all that we can to support informed and sound decisions that are good for U.S. consumers.”

USDA Under Secretary for Food Safety Emilio Esteban, adds that through this RFI, the agencies hope to learn more about how those date labels are determined and whether they confuse consumers and lead to needless food waste.

The action this week is one of many to be taken in response to the National Strategy for Reducing Food Loss and Waste and Recycling Organics, which was released by FDA, USDA and the U.S. Environmental Protection Agency (EPA) in June. USDA estimates that the average family of four spends at least $1,500 each year on food that ends up uneaten, and EPA estimates that in 2019, 66 million tons of wasted food was generated in the food retail, foodservice and residential sectors, and most of this waste (about 60%) was sent to landfills. The national strategy lays out a path that would enable the United States to meet its national goal of reducing food loss and waste by 50% by 2030, helping reduce the environmental impacts of food waste and lower costs for American families.

In response to the draft National Strategy for Reducing Food Loss and Waste and Recycling Organics, FDA and USDA received more than 9,800 comments encouraging an update of the federal date labeling requirements, including standardizing date labeling.

Commenters noted that food manufacturers use a variety of phrases such as “Sell By,” “Use By” and “Best By” on product labels to describe dates on a voluntary basis. According to commenters, the use of different phrases to describe dates may cause consumer confusion and lead to the premature disposal of wholesome and safe food because it is past the date printed on the package. The RFI attempts to explore the issues raised in those comments by asking stakeholders for information they have relevant to this topic.

Both FDA and USDA currently recommend that food industry members voluntarily apply the “Best if Used By” quality-based food date label, which notes the date after which quality may decline but the product still may be consumed. Although FDA and USDA encourage the use of the phrase “Best if Used By,” current federal regulations do not prohibit industry from using other date labeling phrases, such as “Sell By” or “Use By,” if they are truthful and not misleading.

Commenters will have 60 days to provide comments responsive to one or more of the 13 questions posed. Further information on how to submit a comment can be found in the Federal Register notice at https://public-inspection.federalregister.gov/2024-27810.pdf.

CMN

October U.S. cheese production up 1.0% from one year earlier

December 6, 2024

WASHINGTON — October U.S. cheese production, excluding cottage cheese, totaled 1.226 billion pounds, up 1.0% from October 2023, according to data released this week by USDA’s Natural Agricultural Statistics Service (NASS). (All figures are rounded. Please see CMN’s Dairy Production chart on page 14.) October cheese production was up 5.6% from the 1.161 billion pounds produced in September, and up 1.0% on a daily average basis.

Italian-type cheese production in October totaled 511.6 million pounds, up 0.5% from October 2023. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 406.0 million pounds in October, up 1.6% from a year earlier.

American-type cheese production in October totaled 486.2 million pounds, down 0.2% from October 2023. Production of Cheddar, the largest component of American-type cheese, totaled 332.4 million pounds, down 3.1% from October 2023.

Wisconsin was the leading cheese-producing state with 315.2 million pounds produced in October, up 4.3% from October 2023. California followed with 204.5 million pounds produced in October, down 0.6% from a year earlier.

U.S. production of butter totaled 167.5 million pounds in October, up 3.1% from October 2023. October butter production was up 4.4% from September’s 160.5 million pounds, and up 1.0% on a daily average basis. California was the leading butter-producing state with 48.7 million pounds produced in October, down 4.5% from October 2023.

CMN

Today's Cheese Spot Trading
Dec. 20, 2024

Barrels: $1.7600 (NC)
Blocks: $1.8525 (-1/4)

Click here for more market activity

What’s on the 2025 bingo card?

Eric Meyer is the founder and president at HighGround Dairy

Also this week: “Recent encounters with E. coli and listeria in the U.S. food industry”by Dr. Mali Reddy, and “Converting to reusable totes, pallets to maximize success”by Bob Klimko.

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