IDFA Update for NADRO

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1 IDFA Update for NADRO July 10, Cary Frye Senior Vice President, Regulatory Affairs International Dairy Foods Association Washington, DC

2 Our Members IDFA s Members Milk Farmer Co-ops Cheese Yogurt Ice Cream Retailers Infant Formula Dairy Ingredients

3 Our Business Partner Members - That supply the dairy industry. - Processing and packaging equipment - Packaging and resin - Ingredients, sweeteners, flavorings, stabilizers, cultures - Sanitation and water treatment - Quality and laboratory testing equipment s and services - Dairy brokers - Warehousing and transportation - Financial, legal and consulting services

4 Cary Frye John Allan Michael Dykes, D.V.M. President and CEO Michelle Matto Taylor Boone IDFA LEADERSHIP REGULATORY TEAM

5 Our Priorities Advocacy Regulatory Communications

6 Member Priorities Farm Bill Trade Regulatory Reform

7 Farm Bill Priorities Margin protection for farmers Risk management tool for processors Domestic demand through SNAP

8 Farm Bill

9 Joint IDFA/NMPF Farm Bill Priorities Improve the Dairy Margin Protection Program; Change the Class I mover and extend the Dairy Forward Pricing Program for Class II, III and IV Milk; Include a dairy purchase incentive program within SNAP.

10 House Farm Bill Floor Action - Amendments Actively worked two amendments: Supported: Low Fat-Flavored Milk in School Meals Sponsor: Rep. Glenn GT Thompson (PA-05) Adopted by voice vote Opposed: Interstate Sale of Raw Milk Sponsor: Rep. Thomas Massie (KY-04) Failed

11 Senate Farm Bill The Agriculture Improvement Act of 2018: Class I Mover Change Extension of Dairy Forward Pricing Program Allows Retailers to Provide Incentives for Low-Fat Fluid Milk in SNAP Milk Donation Program Amendments at Markup: Ernst Amendment-- add milk to FINI

12 Ice Cream Byproduct Project Ice Cream Byproduct Project The Problem Waste, also known as byproduct, costs the ice cream industry millions of dollars annually, due to postharvest inefficiencies in the ice cream making process The byproduct - fat, protein, carbohydrates, and water that could and should be put to better use U.S. Department of Agriculture Agricultural Research Service Conducts postharvest research for the food and agricultural industry Has conducted postharvest research on dairy products including fluid milk and yogurt

13 Ice Cream Byproduct Project The Process Appropriations IDFA requesting $1.5 million to develop postharvest technologies to decrease waste in ice cream processing Funding allows for three ARS researchers to work on project Cooperative Agreement IDFA is in the process of entering into a cooperative agreement with USDA IDFA will be able to share more information about how ice cream is made and where waste streams are generated

14 Natural Cheese

15 Codifying Useful Regulatory Definitions ( CURD Act) S Identical Senate and H.R House Bills Introduced

16 CURD Act Amends the FD&C Act to codify a definition for natural cheese References CFR for processes cheese and other cheese that would be considered natural cheese At FDA s advice describes process and ingredients for making non-standards cheese Codex definition Cheese must be made from milk of lactating animals CFR Ties definition to labeling to a factual descriptor

17 Regulatory Priorities

18 Food and Drug IDFA Administration Input to CFSAN broad Regulatory request Reform to assist Agenda agency in identifying regulations to modify, repeal or replace Implemented as part of Trump Administrations Executive Orders - Reducing Regulations and Controlling Regulatory Costs and Informing the Regulatory Agenda Identify requirements that are outdated, ineffective, unnecessary, impose greater costs than benefits or limit job creation Specific to products under Center for Food Safety and Applied Nurition (CFSAN), human food dairy products, food additives, standards, labeling, food safety

19 IDFA Top 24 Priority Issued for Regulatory Reform Standards of Identity Modernization Milk, yogurt, cheese and ice cream have 1/3 of the 300 identity standards for processing parameters, allowed additives, composition and nomenclature Standards are outdated do not reflect current processing and ingredient technologies Consider an approach for modernization standards to specific flexibility without petitioning

20 IDFA Top 24 Priority Issued for Regulatory Reform Standards of Identity Modernization Finalize updated yogurt standards (minimum fat level 3.0 grams total fat) Allow higher levels vitamin D fortification for milk products Allow milk protein ingredients in ice cream Allow salt substitutes for cheese Finalize antimycotic use in all cheese Eliminate smoked labeling for Provolone cheese Consider Microfiltered milk to be allowed for cheese making

21 More About Filtered Milk for Cheese IDFA worked with FDA Deputy Commissioner Dr. Stephen Ostroff to request immediate reconsideration of the use of UF milk in all cheeses Victory on August 11, 2017 with FDA notification atoryinformation/ucm htm FDA issued guidance to the industry Exercise regulatory discretion and will allow the use of fluid UF milk from any source in all standardized and nonstandardized cheese with the ingredient appropriately described in the label as milk FDA will finalize the rulemaking in a timely way

22 FDA Grants Regulatory Desertion for us of UF Milk for Cheese 1996 FDA issues letter to T.C. Jacoby for experimental use of UF milk in cheddar cheese 1999 USDA objects to UF milk for cheese - FDA allows experimental use for cheddar and Mozzarella 2000 IDFA &NMPF Petition FDA for use of UF milk for all cheese 2003 FDA Issues no objection letter for use of UF milk for Swiss, but ingredient labeling ultrafiltered milk 2005 FDA Proposed Rule - UF milk in all cheese with ingredient labeling ultrafiltered milk 2007 FDA reopens the comment period impracticability for labeling Status Quo - No action on petition as FDA would not back down from labeling 2017 IDFA advocacy with FDA successful to allow UF Milk without labeling

23 What Are the Rules Now? Cheeses that are subject to standards of identity (21CFR 133) can use fluid UF milk produced in-house or from outside sources to make any cheese UF milk means raw or pasteurized milk that is passed over one or more semipermeable membranes to partially remove water, lactose, minerals, and water-soluble vitamins without altering the casein : whey protein ratio of the milk and resulting in a liquid product UF nonfat milk is defined similarly, except that raw or pasteurized nonfat milk is used Ingredient can be labeled as milk or nonfat milk

24 What Are the Rules Now? FDA s regulatory discretion does not permit the use of Microfiltered Milk (MF) as an ingredient in cheese with a standard of identity This process separates components in milk based on size; largest pore size is microfiltration (MF), next smaller is ultrafiltration (UF) MF retains fat, bacteria and casein proteins (lactose, and whey proteins can pass through) UF retains all milk proteins and fat (lactose can pass through) Overlap of pore size for UF and MF MF removed similar components lactose and whey proteins that are removed in cheese making FDA views microfiltered milk as distinctly different from milk basic ingredient for cheese Meeting July 30 with FDA Deputy Commissioner Ostroff to discuss MF milk for cheese making

25 IDFA Top 24 Priority Issued for Regulatory Reform Food Safety Modernization Act Regulation Modifications Repeal specific supply-chain program requirements for co-manufacturer supplier approval and verification of human food and animal food Repeal written assurances regulations that do not provide a food safety benefit Delay compliance of Intentional Adulteration rule until revised to be more flexibly and risk based Draft Guidance (released June 19 th )

26 Nutrition Facts Label Compliance Date Extension to July 1, 2020 IDFA Top 24 Priority Issued for Regulatory Reform Align FDA nutrition labeling changes as closely as possible with USDA s bioengineered food disclosure standards final rule due July 2018 FDA Announced both will be January 1, 202

27 Grade A and Non-Grade A Dairy Pilot

28 Dual Milk Inspection Pilot IDFA and NMPF fully support pilot and FDA s objectives Public stakeholder listening session requested Delayed implementation may be appropriate to allow for learnings from new PMO Appendix T (FSMA preventive controls) inspections

29 Ice Cream Food Safety Resources Developing new online food safety education for artisan ice cream companies working group industry, academic experts, and members from the innovation center for US Dairy - similar to the safe cheesemaking.org Invited FDA to learn more about ice cream manufacturing Update Frozen Dessert Processing Guidelines FDA Visit to Wells Enterprises, LaMars, IA

30 National Bioengineered Food Disclosure Standard

31 National Bioengineered Food Disclosure Standard Background USDA Agricultural Marketing Service (AMS) must develop regulations labeling of bioengineered products by July 29, 2018 Mandatory, national system for disclosing and labeling of bioengineered food Options to consider Highly refined ingredients Threshold levels Ingredient exemptions Text and symbols Proposed Rule Issued May 4, 2018 Comments due on July 3, 2018

32 National Bioengineered Food Disclosure Standard What will BE Disclosure Look Like? Text Symbol Digital Bioengineered food, (raw food) May be bioengineered food, Contains a bioengineered food ingredient, May contain a bioengineered food ingredient. Scan anywhere on package for more food information Scan icon for more food information.

33 National Bioengineered Food Disclosure Standard Highlights of Proposed Rule Several unresolved issues Highly refined ingredients Enzymes Threshold Clearly reiterates the statutory exemptions for USDA provides flexibility in labeling requirements Proposed Compliance Date Ingredients derived from an animal that ate BE substances Foods certified under the National Organic Program Solicits comment on various text and symbol options January 1, 2020

34 Dairy Delivers

35 Telling our Story with Dairy Delivers

36 Dairy Delivers Jobs Nearly 3 million Economic Impact Greater than $600 billion

37 New Mexico Dairy Delivers

38 Telling our Story with Dairy Delivers Dairy Delivers Available to everyone

39 Questions?

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