U.S. Dairy Industry Could Lose Billions in Proposed EU Policies

A report released by the National Milk Producers Federation, International Dairy Foods Association and Consortium for Common Food Names shows that U.S. dairy producers could lose nearly $60 billion in revenue over the next few years if the European Union is permitted to seize and limit use of common food names.

Jaime Castaneda with CCFN said Geographical Indications, or GIs, are designed to specify a uniqueness to a location, such as Idaho Potatoes which have no equivalent in another location.

“The problem is with attempting to extend GI protection to many food names that have on one hand, little to no geographical identity or, on the other hand have become generic names in some cases for centuries.”

The EU is looking to aggressively use GIs to force companies that make cheeses like parmesan, or feta as well as potentially wines or other drinks like port or vintage, to have to rebrand their products.

Errico Auricchio, who is the Chairman of CCFN, and owner of a cheese-making business, said the loss of revenue to the industry would hurt all aspects.

“I will be forced to abandon markets I worked many years to build or sell cheese under names my customers do not recognize. Cheese plants like mine all over the country will be faced with cutbacks or closure.”

The study, conducted by Informa Economics IEG, said that the U.S. economy could lose up to 175,000 jobs, consumers would see higher prices, fewer choices and that there would general confusion in the market.

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