HIGHLIGHTS: JUNE 9, 2023
• U.S. dairy farmer mission to Singapore
• NMPF’s Mulhern announces retirement
• Sign up for one-on-one sessions with USDEC’s Strategic Insights
• June 19 deadline to preserve right to use “gruyere,” “parmesano/parmesan” in Chile
• Special session announced for World Dairy Summit
• USDEC backs 2023 World Cheese Awards entries
• Member opportunity! Thailand cheese seminar
• Permeate, protein seminar in China
• More photos from World Milk Day in Mexico, Guatemala
• Market Summary: U.S. dairy exports decline in April
• WMP brings down GDT Price Index
• ALIC announces summer butter, butteroil, whey tenders
• Letter calls for support for UK trade talks
• West Coast port slowdowns continue
Featured
U.S. CDE stars during U.S. dairy farmer mission to Singapore
U.S. dairy farmers were scheduled to visit the U.S. Center for Dairy Excellence (U.S. CDE) for its grand opening in the spring of 2020. Before they could leave, COVID-19 shut the world down for two-plus years.
While the U.S. CDE still opened in 2020 and has been ramping up activity ever since, it took until now to revisit that mission. This week, seven U.S. dairy farmers, the CEO of a state checkoff group and a U.S. dairy journalist accompanied USDEC President and CEO Krysta Harden and USDEC Arlington and Southeast Asia staff on a series of activities and meetings with Southeast Asian importers, customers and processors, and USDEC members and partners—with the U.S. CDE at the heart of the mission.
“The purpose of the farmer mission is twofold,” said Harden. “First, we want to show our U.S. dairy farmer funders how the organization works to develop overseas opportunities for U.S. dairy from market to market and accelerate U.S. dairy export growth. Second, this is a perfect opportunity for the farmers to strengthen relationships in the region and help lay the groundwork for future growth for the U.S. dairy industry.”
U.S. dairy farmers on the trip were Larry Hancock, Alex Peterson, Marilyn Hershey, Skip Hardie, Becky Nyman, Kate Fogler and Charles Krause. Dwyer Williams, CEO of United Dairy Industry of Michigan, and Corey Geiger, managing editor of Hoard’s Dairyman, also joined.
This year’s farmer mission participants pose with USDEC Arlington and Southeast Asia staff in the lobby of the U.S. Center for Dairy Excellence in Singapore.
Hands-on experience at the U.S. CDE
The U.S. CDE was the cornerstone of the Singapore mission. Three major educational events dominated the opening days of the trip:
An “immersion tour” of five Southeast Asia markets featured USDEC representatives from Indonesia, Malaysia, the Philippines, Singapore and Thailand. Four booths (Singapore and Malaysia were combined) were set up at the U.S. CDE, showcasing commercial products from each country, some of which originated from manufacturer participation in past USDEC customer education and engagement activities at the U.S. CDE. Farmers “toured” the booths, asking questions and listening to the representatives provide overviews of their respective markets—demographics, trends, distinct cultures and cuisines, key opportunities, challenges, and U.S. dairy potential.
USDEC representatives from across Southeast Asia (seated) took U.S. dairy farmers on an “immersion tour” of Southeast Asia, highlighting market-to-market differences in dairy needs and preferences.
USDEC’s Indonesian representatives “Hardi” Hamdansah Hardigaluh (right) and Arief Rashidi (second from right) explain some of the key characteristics of the Indonesian market to (left to right) Alex Peterson, Skip Hardie and Kate Fogler.
An innovation showcase featured more than 40 food and beverage products made with U.S. whey and milk proteins, permeate, SMP, micellar casein concentrate, cream cheese and other ingredients. The products were developed by Martin Teo, USDEC Southeast Asia’s technical director, food applications, either on his own or in conjunction with USDEC partner Singapore Polytechnic’s Food Innovation and Resource Centre (FIRC).
The food and beverages sampled are typically used in USDEC educational activities at the U.S. CDE and throughout Southeast Asia to demonstrate the versatility of U.S. dairy ingredients and how USDEC seeks to inspire and empower customers to use U.S. dairy to create on-trend, successful new products tailored to their markets.
“We wanted to reinforce one of the core principles we stress in our work with customers in the region: there is a wide world of dairy ingredients and a spectrum of consumer trends and needs, including active lifestyles and health and wellness,” said Vikki Nicholson-West, senior vice president, Global Ingredients Marketing. “USDEC and U.S. dairy ingredient suppliers have substantial innovation capabilities and are experts in matching ingredients to applications that meet consumer needs.”
Teo also introduced mission participants to ingredients specific to Southeast Asia, like pandan, gula melaka and calamansi.
Left to right: Alex Peterson, Becky Nyman and Charles Krause sample some of the local-friendly products made with U.S. dairy ingredients and dreamed up by Martin Teo (far right).
A hands-on “innovation in action” program took mission participants through a modified version of the workshops USDEC runs with Southeast Asian customers. In addition to taking part in classroom learning, the farmers created products in the U.S. CDE test kitchen, graded products in the sensory evaluation lab, and learned market research-based insights about consumer impressions and receptivity to USDEC’s Southeast Asia-friendly product concepts.
“We didn't just want to ‘tell’ everyone what we do at the U.S. CDE and the value it delivers as an innovation catalyst,” said Nicholson-West. “We wanted them to be fully immersed in the experience.”
Skip Hardie, Kate Fogler and Krysta Harden create the Tangy Yuzu Whey Proteina Colada drink during the hands-on portion of the U.S. CDE training.
Becky Nyman and Marilyn Hershey display the product they made during the hands-on session: Longan Goji Berry Protein Balls made with U.S. WPI and Milk Protein Crisps.
Left to right: Larry Hancock, Kate Fogler, Skip Hardie and Alex Peterson taste test Sparkling Lemon Protein Water made with WPI in the U.S. CDE sensory evaluation lab. Ten members of the mission participated in the sensory evaluation, ranking the product a 7.75 on a 9-point scale in terms of “overall liking.”
Only the start
The immersion tour, product tastings and hands-on product innovation work were only a portion of the jam-packed week. Other activities included visits to USDEC member operations in Singapore, engagement sessions with U.S. dairy customers in the region (including hearing testimonials about how they benefited from engagement with USDEC both at and beyond the U.S. CDE), a supermarket visit, and a reception with the U.S. ambassador to Singapore.
The mission continues into next week, with some participants traveling to Japan and South Korea. Global Dairy eBrief will carry more coverage in upcoming issues. In addition, for more information and photos from the mission, read the “Travelogue” on the mission posted on the U.S. Dairy Exporter Blog. Also, we are continually updating the USDEC Twitter page with the latest developments from the trip.
Thian Seong Yee (standing, right), managing director of life sciences company Uno Nutrition, outlines how he has worked with USDEC through the U.S. CDE to incorporate U.S. dairy ingredients in his company’s products.
Skip Hardie, Becky Nyman, Alex Peterson and Charles Krause hold up Calli ice cream cups made with U.S. MPC. USDEC helped the company, Lush Protein, with product and technical support.
Mulhern to step down as NMPF chief at year-end
NMPF President and CEO Jim Mulhern announced that he will retire from his position at the end of this year, concluding a decade of service leading the organization and capping a 45-year career in U.S. agricultural and dairy policy.
After directing NMPF’s government relations program earlier in his career, Mulhern rejoined the organization in 2013 as COO. He took over as president and CEO when Jerry Kozak retired at the end of 2013.
Mulhern has guided NMPF through two completed farm bills, the COVID-19 crisis, and an ever-quickening pace of change in an industry that in some ways is unrecognizable from the one he entered in 1979, when he began his career working for a Midwest dairy cooperative.
USDEC President and CEO Krysta Harden called Mulhern “a great partner and friend to USDEC.”
Through its partnerships with USDEC and others, NMPF has supported policy changes to boost dairy exports, which posted three straight record years from 2020-2022. And through its stewardship of the National Dairy FARM Program, it is enhancing dairy’s leadership in agricultural sustainability and animal care.
New leader named
On June 7, the NMPF Board of Directors unanimously voted to name Gregg Doud, a globally recognized agricultural leader, as its next president. Doud has served in numerous leadership roles in trade association and government work in his more than 30-year career in agricultural policy and economics, most recently at Aimpoint Research, a global intelligence firm specializing in agriculture and food. From 2018 to 2021 he served as Chief Agricultural Negotiator for the USTR’s Office where he led numerous successful efforts to create a fair, prosperous environment for U.S. agricultural exports, including the U.S.-China “Phase One” agreement and the USMCA negotiations.
New! USDEC Strategic Insights’ “Office Hours” offers exclusive one-on-one consultation time for members
USDEC is pleased to announce the launch of Strategic Insights (SI) “Office Hours,” exclusively available for members. During these office hours, members can book a dedicated 30-minute block of time to engage in insightful discussions with the USDEC SI team. Whether you require guidance on specific export markets, products, or strategic decision-making, the SI team offers a wide range of resources and can provide custom research analysis tailored to your specific requests.
SI Office Hours are currently available on these dates/times:
- June 14: 10 a.m. – 12:30 p.m. ET
- July 12: 9:30 – 11:30 a.m. ET
- July 26: 9:30 a.m. – 12:00 p.m. ET
To schedule a 30-meeting meeting with the SI team during Office Hours, book a time here.
CCFN urges U.S. parmesano/parmesan and gruyere suppliers to Chile to complete “prior user” form
The Consortium for Common Food Names (CCFN), founded by USDEC, is urging U.S. cheesemakers who have sold parmesano/parmesan or gruyere cheese in Chile to respond to Chile’s “call for prior users.”
The call stems from an agreement in principle late last year between the EU-Chile modernizing their Association Agreement. The agreement includes an EU request to protect a list of 216 food terms as geographical indications (GIs). That list includes GIs for Gruyere and Parmigiano Reggiano.
Both parties agreed that any company who can prove use of either “parmesano” or “gruyere” during the 12 months prior to the agreement in principle (concluded on Dec. 9, 2022) may continue to use the respective names.
Last week, Chile published the call for prior users to establish a list of grandfathered companies for the two cheese names. CCFN urges all U.S. cheese suppliers who have sold parmesano/parmesan or gruyere in Chile in the 12 months prior to Dec. 9, 2022, to review the details of the call for prior users and complete a prior-user form. While the Chilean instructions reference only “parmesano,” CCFN specifically encourages members to also use the portal to submit any prior use of “parmesan” to increase the prospects for “parmesan” use being captured in the grandfathering process as well.
The deadline to fill out the form is June 19.
In addition, CCFN requests that U.S. gruyere and parmesano/parmesan suppliers to Chile share the information with retailer and importer contacts in the country and encourage them to register as prior users as well.
USDEC and CCFN continue to work with the U.S. government to seek to preserve access to the Chilean market for all generic users. But they also strongly urge U.S. cheese suppliers active in Chile to make use of the prior user process. For questions, please contact Tony Rice at trice@usdec.org.
Events
Reserve your place for special dairy research session preceding World Dairy Summit
The International Dairy Federation (IDF) is adding even more incentive to attend the IDF World Dairy Summit in Chicago on Oct. 16-19. IDF announced a new pre-Summit dairy research session titled, “Boundless Potential: The Newest Generation of Dairy Researchers.” The session, which will take place Oct. 15, brings together experts from some of the top U.S. universities to share cutting-edge research, as well as highlight the diversity and potential of the next generation of dairy researchers.
American Dairy Science Association (ADSA) Executive Director Jerry Bowman and Vice President Federico Harte will moderate the three-hour special session, featuring discussions on:
- Transforming dairy farm management with artificial intelligence, with Dr. Joao Dorea, University of Wisconsin.
- Beyond the gallon milk jug – dairy processing, with Dr. Carmen Licon, Fresno State University.
- Precise feeding to reduce cost and environmental impact, with Dr. Isaac Salfer, University of Minnesota.
- Microbiome-centered dairy, with Dr. Gulustan Ozturk, University of Wisconsin.
- Mining for value in milk solids, with Dr. Haotian Zheng, North Carolina State University.
Click here to learn more about the 2023 IDF World Dairy Summit, including how to register for the pre-Summit and Summit itself. Discounted early-bird registration ends June 30 and hotel rooms are filling fast. This is the first time the Summit is taking place in the United States in decades, so don't miss the opportunity.
Calling all U.S. cheesemakers! 2023 World Cheese Awards
The World Cheese Awards (WCA) is one of the most respected cheese competitions in the world, attracting thousands of entries each year. When this year’s awards take place in Trondheim, Norway, on Oct. 26-27, your company’s cheese could be among the contenders.
U.S. cheese is gaining a global following with the help of USDEC programs, and we are looking to capitalize on that momentum at this year’s WCA. USDEC is supporting U.S. cheesemakers by covering the WCA entry costs for all U.S. cow’s milk (including mixed-milk) cheeses, and will also provide support applying for the shipping documentation required to enter the competition. No export capabilities are required to participate.
Entry for the 2023 World Cheese Awards is now open, and since the event organizers are placing a cap on the number of cheeses they will accept we encourage you to follow the instructions below as soon as possible to enter your cheeses into the competition.
Registration instructions
1. If your company has participated in the WCA before, login to your MyGuild account. If you don't have a MyGuild account, please follow these instructions.
2. Once logged into your account, click the “Enter awards” button and follow the on-screen instructions to enter your cheeses into the competition.
3. Once you've added all your cheeses and arrive at the payment page, follow the step below that aligns with the cheeses you entered:
- If you only entered cheeses made with U.S. cow's milk (including mixed milk), you have completed your online registration; DO NOT input your payment information. USDEC will be unable to refund companies that process payment for covered cheeses.
- If you entered any cheeses that are not made with U.S. cow's milk, process payment for only the non-U.S. cow's milk cheeses by selecting them on the page and entering your payment information; USDEC will cover the cost of the U.S. cow's milk cheeses.
4. After you have completed the registration process, please send an email to Nuhami Alemu (nalemu@usdec.org) and Alex Parker (aparker@usdec.org) with the subject line “WCA 2023 - Bill to USDEC.” In the body of the email, please include the following information:
- Your company name
- The number of U.S. cow's milk (including mixed milk) cheeses you entered into the competition
Once registration closes, USDEC and the WCA will be in contact with further instructions. Please reach out to Claire Powell (worldcheese@gff.co.uk) if you experience any issues with the registration process.
We look forward to another successful U.S. showing at the 2023 World Cheese Awards!
Member opportunity: Make cheese inroads in Thailand at USDEC seminar
Thailand is Southeast Asia’s second-largest economy, with an increasingly urbanized consumer base willing to spend their rising disposable income on food, including cheese. Cheese imports have risen in nine of the past 10 years.
While the U.S. is the third-largest cheese exporter to Thailand, its 8% import share is well behind New Zealand and Australia, which together supplied more than two-thirds of Thailand’s cheese import needs in 2022. At 1,269 MT last year, Thailand is the United States’ second-smallest buyer of the six major Southeast Asian markets.
USDEC is looking to help U.S. cheesemakers improve those numbers, starting with an introductory cheese seminar in Bangkok on Aug. 17. The seminar will facilitate interaction between U.S. cheese suppliers and the Thai manufacturing, retail and foodservice trade. It includes a USDEC market briefing, a retail tour on Aug. 16, and a half-day seminar on Aug. 17 followed by opportunities to meet one-on-one with the local trade.
Despite a 30% tariff, far higher than Oceania suppliers, the Thai trade has shown increased interest in cheeses from the USA to fuel their thriving foodservice and retail sectors.
USDEC members interested in the event (or with questions) should contact Alex Parker at aparker@usdec.org by June 23. Please include in the email the names of all expected participants from your company.
Chinese dairy ingredient seminar targets snack uses for permeate, protein
Snack foods are a rapidly expanding food category in China and one in which USDEC is working to expand U.S. dairy ingredient use. Last month’s Chinese Institute of Food Science and Technology’s (CIFST’s) 10th Snack Food Science & Innovation and Industry Development Conference in Yancheng City, Jiangsu Province, was a prime platform to pursue that goal.
USDEC cooperated with CIFST to organize a half-day workshop focusing on U.S. dairy permeate and protein use as functional and nutritional ingredients in snack applications. More than 50 Chinese food company representatives attended the workshop.
The lineup of speakers, including Professor Peng Zhou from USDEC partner Jiangnan University (JU), highlighted the nutritional (i.e., sodium reduction) and cost-savings benefits of U.S. dairy permeate, as well as its versatility to create innovative, local-friendly products. Zhou highlighted the product development work at JU, done in conjunction with USDEC, to create better-for-you snacks featuring protein and permeate. Professor Zhou presented protein-fortified crisps, jelly and ice cream as well as rice crackers and soup containing permeate that were all developed by the JU team.
Attendees sampled rice crackers, instant milk tea powder, a rehydration beverage, biscuits and pizza seasoning made with U.S. dairy ingredients.
Professor Peng Zhou from Jiangnan University (JU) shares the U.S. dairy ingredient innovation work happening at JU.
Yor-hang Lim, business development director at USDEC’s China office, shared how dairy permeate is used in food applications around the world.
Chang Su, USDEC China office representative, outlined China’s dairy permeate standards and regulations and moderated a panel discussion with five Chinese snack manufacturers: Three Squirrels, Qia Qia, Yao Sheng Ji, Tang Ren Shen, Want Want Group.
Participants from these five companies each shared their views on China’s snack industry, its development and the latest snack trends. All five expressed interest in permeate’s potential for creating “clean-label” while, at the same time, enhancing flavor without comprising taste and most requested permeate samples for testing.
Watch the next two issues of Global Dairy eBrief for more on USDEC’s dairy ingredient activities in China, including work with the China Dairy Industry Association and China Chamber of Commerce of Foodstuffs and Native Produce.
More images from World Milk Day in Mexico, Guatemala
USDEC highlighted U.S. dairy market/consumer trends and dairy ingredient-containing product launches, nutrition, innovation and sustainability at a series of World Milk Day events in Mexico and Guatemala last week (see Global Dairy eBrief, 6/2/23). Below are some images that didn’t make it into last week’s issue.
Left to right: Marco Delgado, CANILEC representative and general director of USDEC industry training workshop partner INCALEC; Tec de Monterrey food science professor Ruben Zarraga; USDEC vice president, marketing communications Kara McDonald; USDEC vice president, Global Ingredients Marketing Terri Rexroat; USDEC consultant Donna Berry, and USDEC Mexico office chief Rodrigo Fernandez raise a toast to dairy at Tec de Monterrey’s Querétaro campus after the June 1 “The Power of Dairy Conference.”
“The Power of Dairy Conference”—held in conjunction with USDEC partner Tec de Monterrey (TDM) University—attracted 172 dairy industry leaders, personnel from food processing companies, academics and food science students, 76 in person to TDM’s Querétaro campus. Here USDEC’s Kara McDonald and Terri Rexroat (left and second from left) get into the World Milk Day spirit along with USDEC consultant Donna Berry front row, second from left) and some of the food science attendees.
USDEC Mexico Business Development Manager Edgar Garcia talks dairy nutrition at the June 1 World Milk Day Milk Forum in Guatemala City put on by Gremial de Lacteos, Guatemala’s dairy processor association.
USDEC sponsored a booth at the Guatemala Milk Forum to hand out U.S. cheese samples to event attendees.
Market Summary
Year-over-year U.S. dairy exports April fall 13%
Year-over-year U.S. dairy export volume (milk solids equivalent or MSE) fell 13% in April. On a pure MSE basis, it was the biggest decline in four years. All major products posted year-over-year shortfalls except for WPC80+, which rose 1% (+69 MT) over April 2022.
In its simplest terms, U.S. suppliers are facing weakened global demand at a time of increased competition from Europe and New Zealand, particularly in Asia and the Middle East/North Africa.
New Zealand, dealing with flagging Chinese demand for WMP and fluid milk, has refocused on other key U.S. markets (like Southeast Asia and Japan) and key U.S. products (like SMP and cheese).
The EU, with internal demand having slowed, has funneled increased milk production into gouda, mozzarella, SMP and butter, which led to a sharp drop in prices, undercutting the U.S. in key markets.
However, as has been the case for the past two months, U.S. suppliers fared far better in Latin America. U.S. shipments to Mexico, Central America, South America and the Caribbean all grew, and Mexico was the star. U.S. NFDM/SMP exports to Mexico jumped 31% (+7,986 MT) to 33,726 MT—a record for April—while U.S. cheese exports to Mexico rose 8% (+816 MT) to 11,276 MT.
USDEC expects the disappointing numbers to persist at least through the remainder of the second quarter but is optimistic about a return to growth in the latter part of the year. For more in-depth analysis on April results and what’s to come, read this month’s U.S. Dairy Exporter Blog post on April trade data. Also, play with the interactive charts under the U.S. Exports tab in the USDEC Data Hub.
GDT declines for second straight auction
The Global Dairy Trade (GDT) Price Index fell 0.9% this week almost solely due to a 3.0% decline in the average winning WMP price (to US$3,173/MT). Ample WMP supply in the face of continued muted demand from China saw prices fall across all contract periods, with bigger drops in later term October and November contracts during the Southern Hemisphere peak.
On the plus side, Southeast Asia/Oceania came back to the market and led all buyers. Southeast Asia increased purchasing compared to the previous auction across all major product categories and was the top buyer on an aggregate basis. It led buying for WMP, butter and AMF.
The average winning SMP price was largely unchanged at US$2,755/MT. The butter price rose 0.5% (to US$5,088/MT), the fourth auction gain in a row. Cheddar increased 7.4% to US$4,668/MT, continuing its rollercoaster ride that began with the new calendar year. While cheddar did post a healthy increase, the gain was supported by a 27.1% jump in Contract 1, likely a motivated buyer filling immediate needs.
ALIC schedules summer butterfat and whey tenders
Japan’s Agriculture and Livestock Industries Corp. (ALIC) announced plans for the remainder of the spring and summer for butter, whey and butteroil. All tenders are SBS. Dates, products and volumes are as follows:
- June 15: 900 MT butter.
- June 22: 2,250 MT whey and modified whey.
- July 13: 900 MT butter.
- Aug. 8: 2,250 MT whey and modified whey.
- Aug. 10: 900 MT butter.
- Aug. 31: 185 MT butteroil.
- Sept. 14: 900 MT butter.
Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) will announce further tender plans after it reviews the supply situation moving forward. For more information, contact USDEC’s Japan office at usdecjapan@marketmakers.co.jp or (011) 81-3-3221-6410.
Trade Policy
Letter urges support for legislation to clear way for U.S.-UK trade talks
USDEC and NMPF co-signed an ag coalition letter to Congress urging support for S. 629 and H.R. 3653, also known as the UNITED Act. The bipartisan, bicameral legislation would grant the administration Trade Promotion Authority to specifically negotiate a comprehensive trade agreement with the UK. The companion bills were introduced by Sens. Chris Coons (D-DE) and John Thune (R-SD) and Reps. Adrian Smith (R-NE) and Jim Himes (D-CT).
“As supporters of trade agreements that advance American strategic and economic interests, we see these bills as a tremendous opportunity,” the letter notes.
USDEC has consistently touted the value of a trade agreement with the UK given its sizable dairy import market and the opportunity of a trade deal to tackle the various tariff and non-tariff issues that impede greater U.S. dairy export access to the market.
Supply Chain
Port slowdowns continue
As of Wednesday, West Coast ports were still reporting intermittent labor shortages and work disruptions that the Pacific Maritime Association (PMA) attributed to ongoing contract negotiations. In reference to the Ports of Los Angeles and Long Beach, Bloomberg quotes Richard Palmer of the Marine Exchange of Southern California on Thursday saying, “Basically every container vessel is having their schedule pushed back by about a day or two.”
As noted in this week’s USDEC/NMPF Supply Chain Update and USDEC’s Leading Indicators newsletter, a number of West Coast ports were closed after the labor union that dispatches workers to the ports failed to send any to staff morning shifts. These work stoppages occurred at terminals in the ports of Long Beach, Los Angeles, Hueneme, Oakland, Tacoma and Seattle, although they were not necessarily applied at all terminals at each port.
While the PMA and International Longshore and Warehouse Union made significant progress in recent months toward a new dockworker contract, the two sides are apparently hung up on wages. A Wall Street Journal article this week reported sources indicating there was “a substantial gap” between the union’s demands and what employers are willing to pay, which is causing rising frustration on both sides.
The National Retail Federation and the National Association of Manufacturers have asked the Biden Administration to intervene to push the two sides toward resolution. The Biden Administration said it is monitoring the situation but would prefer the two parties to settle the matter themselves. (American Journal of Transportation, 7/6/23; Wall Street Journal, 6/5/23, 6/2/23; The Loadstar, 6/5/23)
In Case You Missed It...
U.S. Dairy Exporter Blog
Market analysis, research and news subscribe hereUSDEC Twitter feed
Follow us here.
