Whereas, imported Milk Protein Concentrate (MPC), blends and food preps have created a significant loophole in U.S. dairy trade policy and have distorted the U.S. milk market; and Whereas, MPC was not considered a dairy product by the WTO, in the last round of dairy tariff-rate quotas, limits were not established; and Whereas, MPC and other dairy blends have been used illegally in the production of standardized cheeses; and Whereas, importers are adjusting the protein content of non fat dry milk so that it is classified by the U.S. Customs Service as MPC, and not subject to tariff-rate quota; and Whereas, imports of MPC blends and food preps are displacing domestic milk used for cheese making, thereby depressing farm milk prices to a historical low; and Whereas, the 2001 GAO report said that MPC imports had surged by more than 600 percent in six years. Therefore Be It Resolved that the National Farmers Union supports: 1. Maintaining FDA's current definition of milk to prevent MPC from being used in standardized cheese. 2. Actions that restrict the importation of MPC, blends and food preps. 3. Properly informing consumers about the use of MPC, blends and food preps n food production. 4. Making MPC and other dairy blends subject to Tariff Rate Quotas. 5. Strong penalties for those dairy plants using MPC in standardized cheese production. 6. Requirement of an end-use certification on all imports of MPC, blends and food preps. Texas Farmers Union, P.O. Box 7276, Waco, Tx 76714-7276