• Letter calls for TPA, FTAs

• India publishes integrated health certificate

• Harden honored by IICA

• USDEC media collaborations in Southeast Asia

• USDEC briefs FAS trainees

• Membership Meeting session list

• Market Summary: EU milk output rises again in January

• China seeks solutions for demographic challenge

• Comments on Philippine MFN tariffs

• Company news: Pascual, Open Country, Domino’s, F&N, Olam

 

Letter calls for Congress to advance TPA legislation, urges new FTAs
USDEC and NMPF helped lead an agricultural association letter to members of Congress urging them to advance legislation to establish new Trade Promotion Authority (TPA) and to provide direction to the Biden Administration about the importance of establishing new markets for U.S. food and agriculture products. A group of 52 U.S. agricultural associations co-signed the letter.

TPA is a legislative procedure, written by Congress, that defines U.S. negotiating objectives and the congressional oversight and consultation process used during trade negotiations. TPA preserves congressional authority to review and decide whether any proposed U.S. trade agreement will be implemented, but also prevents Congress from amending the proposed deal. Without TPA, U.S. trading partners would not want to negotiate comprehensive FTAs with the United States given the threat that a deal will be revised by Congress.

The U.S. has not had a new comprehensive free trade agreement in more than a decade and we are falling behind as our competitors move aggressively forward with deals of their own, the letter states. The U.S. has lost first-mover advantage, leading to “serious, enduring consequences.”

“Taking markets from established competitors is far more difficult than establishing footholds as markets open,” the agriculture groups wrote. “Further, economic competitors use trade agreements to establish rules of trade that give them long-term structural advantages, such as the European Union’s monopolistic geographic indications trade policies.”

India publishes integrated health certificate
India's Department of Animal Husbandry and Dairying (DAHD) and Food Safety and Standards Authority of India (FSSAI) have created an integrated veterinary health certificate for dairy imports that includes language from both the DAHD model certificate that is currently required for dairy imports and the certificate that FSSAI had initially planned to implement in March 2023, but was postponed (see Member Alert of Feb 27).

DAHD published this integrated certificate on its website as a draft. When the final version is published, this integrated certificate will enter into force immediately. However, the Indian government will allow the DAHD certificate alone to be utilized for a period of 60 days. USDEC will update the Export Guide and notify members when the final version is published.

As a reminder, the U.S. government will not endorse either the DAHD certificate or the new integrated certificate.

See Volume 2 of the USDEC Export Guide for more information on this new integrated certificate and a link to FSSAI's list of the products expected to require it. USDEC is continuing to monitor developments related to the new certificate requirements. Please contact Sandra Benson at sbenson@usdec.org with questions.

IICA recognizes Harden for rural agricultural leadership
The Inter-American Institute for Cooperation on Agriculture (IICA) named USDEC President and CEO Krysta Harden one of the “Leaders of Rurality” of the Americas. Harden received the “Soul of Rurality” award, which is part of an IICA initiative to give visibility to men and women who are making a difference in rural life across North, Central and South America.

IICA cited Harden’s lifelong interest in agriculture and extensive experience in agricultural leadership positions, calling her “profoundly knowledgeable about agriculture, sustainability and agricultural policy.” It honored her focus on improving opportunities for women, young people, immigrants and vulnerable farmers and her conviction that food production has a future in the diversity of the people who are involved in it around the world.

“It’s so imperative that we have diversity of voices, more women’s faces, more people of color, people from different walks of life, to help our industry continue to be relatable, and keep growing,” Harden said. “I believe that the next generation of leadership will be increasingly made up of women. I think as women in agriculture, we’re just getting started, and I’m very excited about what’s ahead.”

The award also pays tribute to those who are playing a unique dual role: guaranteeing food and nutritional security—by producing under all circumstances—and protecting the biodiversity of the planet.

IICA is a long-time partner of USDEC. The two organizations cooperate to promote and harmonize science-based food and ag regulations and collaborate on sustainability and food systems issues.

IICA Director-General Dr. Manuel Otero presents USDEC President and CEO Krysta Harden with the organization’s “Soul of Rurality” award.

Media collaborations showcase U.S. dairy ingredient opportunities in Southeast Asia
This month, USDEC is reaching out to food and beverage makers in Southeast Asia with a feature story and banner ads in FoodNavigator-Asia and a full-page ad in Asia Pacific Food Industry (APFI) magazine. Successful collaborations with FoodNavigator-Asia and APFI over the past few years yielded significant exposure to Asian dairy ingredient buyers, leading to this year’s activities.

The FoodNavigator-Asia story, “How innovations in dairy proteins can meet consumer needs and unlock opportunities,” outlines U.S. dairy innovation opportunities in the region that align with consumer tastes, dietary preferences and eating habits. The bright prospects are supported by insights from USDEC consumer research across six Southeast Asian markets, which reveals consumer interest in protein and suggests readiness for protein-boosted products.

The article also explains how USDEC’s Singapore office is working to support regional food and beverage manufacturers to create innovative products with U.S. dairy protein ingredients that meet consumer health and wellness needs.

The full-page ad in APFI, invites food and beverage makers to “Be our guest at the U.S. Center for Dairy Excellence in Singapore!”

It explains the purpose of the U.S. CDE, features an image of product prototypes made with U.S. dairy ingredients and invites companies to join the educational and technical programs. The ad aims to generate interest and inquiries from current and potential U.S. dairy customers.

USDEC staff briefs FAS trainees
Five USDEC staff members briefed more than a dozen Foreign Ag Service (FAS) trainees preparing to head out to their global posts in Washington, D.C., this week. The USDEC team provided an overview of the U.S. dairy industry including its sustainability commitments, export challenges and priorities, and how USDEC helps to accelerate export growth. Staff conducting the training were: Shawna Morris, senior vice president, Trade Policy; Angélique Hollister, senior vice president, Global Cheese Marketing; Vikki Nicholson-West, senior vice president, Global Ingredients Marketing; Nick Gardner, senior vice president, Sustainability and Multilateral Affairs; and Sandra Benson, vice president, Market Access and Regulatory Affairs.

They also explained how USDEC works collaboratively with FAS offices in D.C. and posts around the world and outlined the top regulatory and policy concerns to be aware of as they head into the field. FAS and its attachés have long been key USDEC partners in the effort to build U.S. dairy export markets. The briefing was another platform to deepen the relationships with those representatives and build their knowledge of U.S. dairy so they can be even better advocates for the industry.

The group included staff heading to some of the major U.S. dairy export markets, including Mexico, Canada, China, Brazil, Korea, Taiwan, Japan, the UAE and Vietnam.

 

Spring Membership Meeting around the corner
The USDEC Spring Membership Meeting is packed with session after session of high-level speakers addressing topics critical to U.S. dairy exporters. And there’s still time to register. Here’s a headline list of sessions:

• A Congressional Perspective on Agriculture, Trade and Supply Chain Policy
  
  
• Global Dairy Market Outlook
  
  
• A Discussion on the FDA’s Role in the Milk Industry, the Country’s Health and Agricultural Exports
  
  
• A Conversation with Ambassador McKalip and Under Secretary Taylor: An Outlook for Agricultural Trade Under New Leadership
  
  
• Building Bridges Across Borders: Discussions on How to Strengthen Global Connections
  
  
• Hurdles and Opportunities for U.S. Dairy in China
  
  
• Climate, Capital and Capacity: How Sustainability Will Impact Industry Investment
  
  
• Dairy Alternatives in the International Market: a Conversation with an Alternative Protein Venture Capital Firm

Download the preliminary agenda to see the full slate of speakers.

Scenic view at rooftop reception
The full meeting runs March 27-29 at the Willard Intercontinental Hotel in Washington, D.C. A welcome reception takes place on March 27 at the Hotel Washington rooftop terrace on March 27. The rooftop is famous for its views of the White House and Washington Monument.

EU milk output rises again in January
With only Spain yet to report, EU27+UK milk production was up 1.1% in January, compared to the previous year. It was the fifth straight month of year-over-year gains, as European producers continued to take advantage of elevated (but declining) farmgate milk prices and moderating input costs.

A 3.6% increase in German milk deliveries drove the gain, backed by the Netherlands (+4.9%), Poland (+1.6%), Belgium (+4.6%) and the UK (+1.2%). After a strong start over the first four months of 2022, year-over-year Italian milk production has been mostly down ever since. January Italian deliveries fell 3.7%, the fourth consecutive monthly decline. No. 2 producer France declined 1.3%.

China seeks solutions to its demographic problems
Last year, China’s population fell for the first time in six decades. The decline is spurring the government to take action to limit impending economic stagnation and a massive social crisis. The problem comes down to fewer workers available to subsidize the care of a rapidly growing senior population.

So far, China is looking at two avenues to address the problem: boosting birth rates and raising the retirement age. Earlier this month, government advisors offered more than 20 recommendations to increase birth rates at China’s People’s Political Consultative Conference. They include subsidizing families for their first child (second and third children are already subsidized), offering government-paid maternity leave, scrapping the three-child limit per family and supporting more daycare operations.

At the other end of the age spectrum, China has one of the lowest retirement ages in the world: 60 for men and 50-55 for women (depending on the job). However, this week, the country announced it would raise its retirement age in phases and offer more retirement options depending on a person’s circumstances.

The birth-rate proposals are still pending and may not come to fruition and the retirement age change is not yet official. But the moves were applauded by economists and demographers. However, analysts also said the measures were insufficient to lift the country out of the demographic hole it dug for itself. Addressing the challenge will take additional actions; even then, it will require time to deliver a more sustainable long-term system. (Reuters, 3/15/23; 3/14/23)

 

Comments call on Philippines to reduce MFN tariffs
USDEC submitted comments to the Philippines requesting that the government consider adjusting its most favored nation (MFN) dairy tariff rates. (The Philippine Tariff Commission announced a comprehensive review of its MFN tariffs in February.)

USDEC urged the Philippines to consider extending the application of reduced duties for several dairy products to help ensure an adequate supply to meet the needs of the local industry and consumers. The comments voice caution on over-reliance on Australia and New Zealand, which have duty-free access to the Philippines for most products under the ASEAN-Australia-New Zealand Free Trade Agreement.

New Zealand and Australia—already seasonal milk producers—face increasing constraints to milk production growth.

“COVID-19, the supply chain crisis and global inflation have all underscored the importance of diversified supply chains both to ensure adequate and consistent supplies of critical food supplies as well as to reduce inflationary pressures,” the comments note.

The comments recommend the following tariff levels for the 2024-2028 time period:

• 0402.10, SMP: maintain tariff at 1%
• 0403, yogurt: reduce tariffs from 3-7% to 3%
• 0406, cheese: reduce tariffs from 3-7% to 2%
• 1702.11 and 1702.19, lactose: reduce tariffs from 1-3% to 1%
• 1901.10 and 1901.90, infant formula: reduce tariff from 7% to 3%
• 3504, MPC and MPI: reduce tariffs from 1-3% to 1%
• 3502.20, WPC80+: reduce tariff from 3% to 1%

 

Spanish dairy partners with African beverage processor
Spanish dairy processor Calidad Pascual partnered with Angolan beverage company Refriango on a new milk manufacturing facility in Angola’s capital city of Luanda. Pascual has been exporting yogurt to Angola for 25 years, but this is its first Angolan production plant. It will reportedly produce UHT milk and milk powder.

Pascual said it expects to raise international revenues to €125 million a year (about US$134 million) in three-year’s time through the Angolan investment as well as capacity expansion projects in South and Central America. (Company reports)

New leadership for Open Country Dairy
New Zealand’s second largest dairy processor, Open Country Dairy, named Mark de Lautour as its new COO, replacing Steve Koekemoer. Koekemoer is taking over as COO of Talley’s Group, parent company of Open Country and meat processor Affco. De Lautour is presently general manager sales and marketing at Affco. (Rural News Group, 3/15/23)

Company news briefs
Domino’s China has aggressive expansion plans. The company expects to open 180 outlets in 2023, 240 in 2024, 200 in 2025, and 300 in 2026. The company currently operates more than 600 stores in 17 Chinese cities. … Fraser & Neave Holdings (F&N) secured exclusive rights to manufacture and market Nestlé’s Bear Brand sterilized milk in Cambodia until 2037. The new deal expands F&N’s existing contract with Nestlé, under which it makes and distributes Nestlé’s Bear Brand sterilized milk and Bear Brand Gold milk for Thailand and Laos. … Saputo named Frank Guido president and COO, Dairy Division (USA), and Haig Poutchigian president and COO, Dairy Division (Canada), effective April 1, 2023. … Olam Food Ingredients says it is on track to complete Stage 1 of its new Tokoroa, North Island, New Zealand powder plant in the second half of 2023. The plant will begin with WMP production, but Olam is already moving forward with Stage 2, which would focus on specialized, high-value protein-based ingredients. … Leprino Foods selected Illinois-based ingredient distributor Univar Solutions as an authorized distributor of Leprino nutritional ingredients and dairy products in Canada and the United States. … Australian co-op Norco is one of the latest dairy processors to enter the plant-based dairy alternative categories. The company launched pea- and oat-based beverages under the P2 Pea Protein Mylk and Oat Mylk brands, respectively. It is marketing the products in Australia. (USDEC China office; USDEC Southeast Asia office; Company reports; Just Food, 3/13/23; Rural News Group, 3/8/23)

• Harden receives "Leaders of Rurality" award from Inter-American Institute for Cooperation on Agriculture  
• U.S. dairy exports start strong in 2023
• A shout-out to the women who promote U.S. dairy around the globe  
• Opportunities for increased protein consumption in SE Asian markets (retweet)