• UN talks on plastics in agriculture

• Algeria implements new halal requirements

• USDEC talks dairy trade possibilities with Cuba

• Hollister and Gardner “experts in exports” videos

• Last day for IDF World Dairy Summit discount rate

• Market Summary: NZ dairy exports on a roll

• New China, NZ plants coming online

• Global new product innovation awards

• Company news briefs: Vinamilk, Dairygold, Firehouse Subs

 

USDEC earns seat at the table to shape UN global plastics-in-agriculture guidelines
USDEC’s reputation as a knowledgeable and reliable resource on issues impacting global dairy production and trade continues to grow. This week, at the invitation of the UN Food and Agriculture Organization (FAO), Nick Gardner, USDEC senior vice president, Sustainability and Multilateral Affairs, took part in an FAO Global Expert Meeting on the development of a Voluntary Code of Conduct on the sustainable use of plastics in agriculture.

Having a U.S. dairy voice at the expert consultation was a unique opportunity because information gathered at the meeting will shape the Voluntary Code of Conduct before it is drafted and presented to member states. Reducing the amount of plastic that ends up in the environment is important for us all, but the Code must reflect the realities of food production and waste management technologies not just ideological ambitions or one-size-fits-all approaches being driven by Europe.

Earned (and critical) role
“Very few private-sector organizations were invited to participate in the expert consultations,” said Gardner. “USDEC making the short list demonstrates the increasing respect we have within FAO as an expert organization that needs to be consulted on major issues impacting dairy trade.”

In preparation for the webinar, Gardner consulted with several members who are working with their milk suppliers on plans and programs to better manage plastic waste on farm, primarily by increasing collection and recycling. During the expert consultations, he shared their experiences, including challenges and progress already made. In FAO’s own judgment, plastics’ use in agriculture “can increase productivity and efficiency in all agricultural sectors and help minimize food loss and waste,” but opportunities exist to better manage agricultural plastic waste.

“Guidelines that push blanket bans rather than nuanced approaches that can help make our relationship with plastics more sustainable are simply not realistic nor will they help the U.S. dairy industry meet sustainability goals,” says Gardner. “We want to make sure producers have access to more sustainable plastics, can utilize plastic technologies that help them produce more efficiently, and that high-impact opportunities for plastic waste collection and recycling are prioritized.”

Next steps
After the expert consultations, FAO will hold six regional consultations. The organization will then develop a draft of the Voluntary Code of Conduct on sustainable use of plastics in agriculture for presentation to the FAO Committee on Agriculture by end of the year. This draft will then be reviewed by the member states and likely adopted sometime in 2024. Although the recommendations are intended to be voluntary, many U.S. dairy export markets look directly to UN-adopted guidelines like these to inform their national regulatory requirements.

The development of the Voluntary Code of Conduct is happening in parallel to the ongoing Intergovernmental Negotiating Committee to Develop an International Legally Binding Instrument on Plastic Pollution, including in the Marine Environment (INC-2), previously discussed in the June 16 Global Dairy eBrief. If you would like to learn more about USDEC’s work on plastics or have examples of plastics management programs you would like USDEC to highlight, please contact Kelly Sheridan at ksheridan@usdec.org.

Algeria implements requirement that all dairy be certified as halal
Algeria has changed its halal regulations to now require a wide range of products, including all dairy products, to be certified as halal. According to the Algerian Ministry of Commerce and the Foreign Agricultural Service, while EU origin product can only be certified as halal by the Grand Mosque of Paris or another halal certifier approved by the Grand Mosque of Paris, companies shipping U.S. and other non-EU dairy products can continue to use the Halal certifiers they were using prior to June 2023. If a U.S. exporter was previously shipping product to Algeria that was certified as Halal, there should be no changes in the U.S. exporter’s requirements.

Additionally, the Algerian Ministry of Commerce has stated that if any U.S. shipments of Halal certified product encounters problems at an Algerian port due to the new requirements, the Algerian customer should directly contact the Ministry of Commerce’s fraud prevention unit.

Please reach out to Bryan Jacoby (bjacoby@usdec.org) with any questions.

USDEC talks dairy with Cuban officials
USDEC was also invited to talk dairy trade this week with Cuban government officials at the Cuban Embassy in Washington, D.C. Tony Rice, USDEC manager, Trade Policy, discussed legislative opportunities to facilitate agricultural trade with Anabel Serrellonga Hidalgo, first secretary at the embassy. USDEC has called for full normalization of U.S.-Cuba economic relationships, which includes the removal of onerous licensing requirements and the ban on export financing.

The invitation stems from a more expansive meeting earlier this year between embassy officials and the United States Agriculture Coalition for Cuba, in which Rice also took part (see Global Dairy eBrief, 4/21/23). That session focused on how USDA programs could be best leveraged to increase engagement in the Cuban market and the political dynamic necessary to lower the high barriers to market entry.

Anabel Serrellonga Hidalgo, first secretary for the Cuban Embassy and USDEC’s Tony Rice.

USDEC spotlights more “experts on exports”
USDEC positions experts around the world, delivering value to our members and the entire U.S. dairy industry, often behind the scenes. In a series of articles and videos for National Dairy Month, some of our “experts on exports” have been sharing what they do and why they do it with such passion.  

This week we showcased Angélique Hollister, an expert from France who educates the world about U.S. cheeses, and Nick Gardner, who tells the positive story of U.S. Dairy at global policy forums.

 

 

IDF World Dairy Summit early-bird discount registration ends today!
Today is the last day for early-bird discount registration for the International Dairy Federation (IDF) World Dairy Summit, slated for Oct. 16-19 in Chicago. The United States National Committee to IDF (US-IDF) is hosting the event—themed “BE Dairy! Boundless Potential and Endless Possibilities”—and looks forward to welcoming global dairy leaders, scientific experts, farmers and anyone who embodies what it means to “BE Dairy!”

“There is simply no other single meeting where you can gain more current knowledge and perspective about the state of the global dairy sector,” says Summit Co-Chair Nick Gardner, USDEC senior vice president, Sustainability and Multilateral Affairs and US-IDF chair. “Through the program, which is designed to feature geographically diverse experts from across the entire dairy value chain, to the one-on-one conversations that occur with attendees, I always leave with a much broader perspective of what is going on in the industry, how my colleagues are navigating, and new areas I should consider focusing on or prioritizing.”

The Summit features eight plenary sessions and more than 20 scientific and technical sessions, as well as social events and technical tours to several dairy farms, processing plants, a research center and laboratory—all nearby the Chicago area.

The full program and a link to register for the show are available on the Summit website. Updates related to speaker confirmations will be shared over the next several weeks.

October in Chicago is a very busy month for meetings and conferences, so we encourage you also make hotel reservations soon to receive the discounted rate at the Hyatt Hotel, which is connected to the IDF Business Meetings/Summit venue.

New Zealand posts big dairy export months back-to-back
Year-over-year New Zealand dairy exports (major product volume, not including fluid) jumped 46% to 280,523 MT in May, marking the second straight month of sizable gains. April-May volume collectively grew 39% (+158,267 MT), as New Zealand finds itself on a two-month export roll.

Big gains in WMP and SMP volume to China and Algeria helped drive the May increase, as they did in April. Year-over-year New Zealand WMP exports to China rose 118% (+26,382 MT) in May, while SMP increased 41% (+2,657 MT). WMP shipments to Algeria gained 107% (+12,776 MT) and SMP volume went from zero in May 2022 to 3,942 MT this May.

But Kiwi dairy suppliers saw generally positive movement across most major product categories and markets.

• Year-over-year cheese exports jumped 54% (+12,905 MT), with increased volume to China (+120%, +5,994 MT), Japan (+49%, +2,028 MT) and South America (+1,150 MT from a base of only 79 MT in May 2022).
  
  
• Butterfat exports rose 24% (+8,589 MT), with China again pacing the gain (+58%, +4,635 MT).
  
  
• WPC80+ exports rose 38% (+628 MT), led by a 722 MT increase to China.

The percentage gains are somewhat inflated given New Zealand’s poor performance from 2022 (attributable to a sharp drop in Chinese purchasing from January-July 2022). But that does not dimmish the fact that 280,523 MT of dairy exports is a May record for New Zealand.

China has propelled New Zealand’s big gains in April and May, but as noted in previous issues of Global Dairy eBrief, many questions surround China’s economic recovery and the strength and stability of its rebound in dairy demand.

 

New China, New Zealand plants coming online
China’s Yili Group and New Zealand’s Olam Food Ingredients (OFI) each expects to bring new plants online over the next two months.

Yili is finishing a $138-million infant formula expansion at its Tianjin manufacturing plant. The new line, set to open in July, can produce up to 24,000 MT per year of semi-finished products.

OFI expects to open Stage 1 of its new NZ$100-million-plus milk powder plant in Tokoroa on New Zealand’s North Island in August, prior to the 2023/24 milking seasons. The facility will reportedly produce up to 10 MT of powder per hour. Stage 2, which will expand operations to higher-value, functional protein products, should be up and running for the 2025/26 season, the company said.

Rumors in New Zealand farming circles suggest OFI is already contemplating a second plant on the South Island, although the company has not publicly stated such intentions. OFI rival Fonterra Co-operative group cautioned that OFI’s plans could lead to excess processing capacity plant closures, given expected declines in New Zealand milk production in the years ahead. (USDEC China office; New Zealand Herald, 6/24/23)

Dairy innovation awards offer insights into new product trends
The 2023 World Dairy Innovation Awards were announced at Zenith Global’s 16th Annual Global Dairy Congress last week in London. While the awards are not a comprehensive round-up of new product innovation around the world, they are instructive in terms of product development trends taking place in some key U.S. dairy export markets, particularly China.

Health and nutrition claims continued to play a strong role among award winners and contenders, reflecting the continuing consumer focus on immune and digestive health. China-based Feihe Dairy’s award in the functional dairy category for its Aiben bovine colostrum milk powder highlights interest in the use of natural-based products as nutritional supplements to promote health and the immune system. Singapore-based CP-Meiji took home the prize in the “intolerance-friendly innovation category” with Lactose Free Dairy Milk with Malt.

Feihe Dairy’s Aiben bovine colostrum milk powder.

Other finalists in the functional dairy group included:

• Zhennong High-Calcium Milk and ShuHua AnTangJian Sugar-Control Lactose-Free Milk from Chinese dairy giant Yili Group.
• Feihe’s Aiben Lactoferrin Formula Milk Powder.
• Japanese dairy processor Meiji Co.’s Fat-Fighting MI-2 Yogurt (which it claims reduces belly fat) and Probio R-1 Yogurt, which is fortified with iron and vitamin C.

Many award nominees and winners had innovative product configurations that fit the Congress’s theme of “reimagining dairy.” In the cheese category, Feihe’s Zhuoran High-Calcium Cheese Lolly took top honors, with other finalists including the Feihe’s Zhuoran High-Calcium Cheese Lumps and Yijiahao Cheese’s Double-Layer Cheese Lollipops (Yijiahao Cheese is a subsidiary of Yili). Yijiahao Cheese also took top honors in the children’s category with its Cheese Bomb cheese snacks in kid-friendly shapes.

Yijiahao Cheese’s Cheese Bomb cheese snacks.

Sustainability also continued to be an important industry touchpoint. For corporate social responsibility/sustainability initiatives, Yili earned finalist honors for its Satine A2 Beta-casein Organic Pure Milk, which Yili claims is China’s first net-zero carbon milk. Japan’s Meiji Co. was commended for its collaborative efforts with Ajinomoto to work with Japanese dairy farmers to reduce greenhouse gas emissions.

And on the marketing side, Yili was a finalist in packaging for its Satine No Printing No Ink Environmentally-friendly Edition—where individual cartons of Satine multipacks are almost completely white.

For a full recap of winners, finalists and commended products, go to https://www.foodbev.com/news/world-dairy-innovation-awards-2023-winners/. (Company reports; FoodTalks, 6/25/23; FoodBev.com, 6/21/23)

Yili’s Satine No Printing, No Ink cartons.

Vinamilk signs nutritional solutions partnership
Vinamilk announced it is joining six global nutrition and bioscience companies in a strategic partnership designed to further its mission of providing “international quality” nutritional solutions to Vietnamese children. Companies joining the Vietnamese dairy processor in the initiative include DSM, Chr. Hansen, Beneo, Gnosis, AAK and Kanematsu.

Vinamilk CEO Mai Kieu Lien said the partnership will help the company further its commitment to leveraging modern production processes, scientific research and international cooperation to provide Vietnamese children with high-quality nutritional products. (FoodBev.com, 6/19/2023)

Mergers, acquisitions and joint ventures
Ireland’s Dairygold Health and Nutrition (a business of Dairygold Co-operative Society) acquired a majority stake in Vita Actives Ltd. Vita Actives, also based in Ireland, is a manufacturer, supplier and distributor of bulk nutraceuticals and food-grade ingredients for dietary supplements. Dairygold said the deal positions the company well within the fast-growing life-stage nutrition segment. … supplement products. Unilever is buying U.S.-based Greek frozen yogurt company Yasso Holdings to advance its position in the premium “better for you” frozen dessert segment. (Company reports; Agriland, 6/23/23)

Company news briefs
Firehouse Subs, owned by Restaurant Brands International, signed a development deal to launch in Mexico later this year. The company did not name its partner in Mexico but said the deal, as well as a new store in Switzerland, are the first steps of a broad international push into the Middle East, Latin America, Asia, Europe and Africa. … Saudia Dairy and Foodstuffs (SADAFCO) signed a sales and export agreement with the Sultanate of Oman. SADAFCO, which produces dairy products, dairy alternatives, snacks, processed tomato products and other foods, did not provide information on which products were included in the agreement. The agreement aligns with the company’s efforts to expand its regional and export business. … Bongards Creameries is spending $125 million to increase milk handling capacity at its Perham, Minnesota, manufacturing plant by 30% to around 2,500 MT/day. The project includes expanding milk intake bays, cheese packaging, whey drying, packaging and warehousing, and wastewater treatment. Work is set to begin in July with completion expected in June 2025. (USDEC Middle East/North Africa office; Company reports; Perham Focus, 6/27/23)

 

 

• USDEC’s Nick Gardner tells the positive story of U.S. dairy at global policy forums 
• This “Expert on Exports” excels at exceeding expectations when marketing cheese from the U.S.  
• USDEC spotlights COO Martha Scott Poindexter as one of its “experts on exports” for National Dairy Month  
• Opportunity beckons this USDEC expert at the World Dairy Summit in Chicago 
• Register for the IDF World Dairy Summit, Oct. 16-19 in Chicago