• World Milk Day activities

• China extends permeate tariff waiver extension

• USDEC briefs Whitley, Hafemeister

• FAS trainees tour Maryland & Virginia facilities

• Early bird registration deadline for World Dairy Summit

• Market Summary: New Zealand dairy exports soar

• USDEC calls for U.S. Codex Office funding

• USDEC updates 111 Export Guide documents in May

• Kerry, Dairygold launch new products for China

• Company news: Mataura Valley, Baladna, Arla

 

USDEC puts focus on dairy nutrition on World Milk Day
World Milk Day was established in 2001 by the Food and Agriculture Organization (FAO) of the United Nations to recognize the importance of milk as a global food. Held annually on June 1, World Milk Day celebrates the global dairy sector.

USDEC acknowledged Thursday (June 1) with promotional U.S. dairy content on Twitter, LinkedIn, trade media outlets and the U.S. Dairy Exporter Blog.

The focal point of USDEC activity was Mexico, the No. 1 market for U.S. dairy exports, where:

• USDEC’s Terri Rexroat and Kara McDonald, along with consultant Donna Berry, traveled to the Tec de Monterrey University campus in Querétaro to participate in a conference on “The Power of Dairy.” Academic and dairy industry leaders also attended.
• Through its relationship with CANILEC, Mexico’s largest dairy processor group, USDEC participated in a Mexican Agriculture Department seminar focusing on the benefits of milk and dairy. The audience included nutritionists, pediatricians, dentists and others from the health field.
• USDEC placed a one-page, full-color advertisement in the influential Reforma newspaper’s special supplement on milk and dairy. The supplement was distributed in the newspaper’s printed editions and on its website, with promotion on Reforma’s social media channels.

Beyond Mexico
In addition to activities in Mexico, USDEC sponsored a World Milk Day seminar in Guatemala. Working with Guatemalan dairy farmer and processor groups, the event highlighted the nutritional benefits of dairy consumption.

In the U.S., DairyBusiness News published an article by USDEC President and CEO Krysta Harden titled, “The world needs our milk on World Milk Day.”

“On World Milk Day and every day, my message to our global dairy customers is that they can count on the U.S. to consistently meet their needs now—and as their demand increases,” Harden wrote. “We are poised for continued long-term growth.”

GDP highlights sustainability
USDEC’s efforts come on top of Global Dairy Platform’s (GDP’s) annual World Milk Day celebration. GDP focused this year on how dairy is reducing its environmental footprint while also providing nutritious foods and supporting livelihoods across the globe.

USDEC President and CEO Krysta Harden and NMPF President and CEO Jim Mulhern toast to dairy on World Milk Day.

China extends permeate tariff exemption
The Chinese Tariff Committee announced a tariff exemption extension for permeate for feed (by protein content 2%-7%, lactose content 76%-88%) under the HS Code 0404.1000. With this announcement, the tariff exemption on permeate for feed that meets the above description will extend until Dec. 31, 2023, and its tariff rate will continue to be charged at the Most Favorable Nation (MFN) rate of 2% (instead of increasing to the retaliatory rate of 27%).

Other dairy exports to China
For all other products, registered companies conducting business in China can apply for retaliatory tariff exemptions to encourage imports and help fulfill China’s purchasing agreements under the Phase One trade deal. Tariff exclusions apply only to the companies that submit exemption applications; exceptions are valid for up to one year. Please see the China entry in Volume 2 of the USDEC Export Guide for details.

USDEC briefs Whitley, Hafemeister on critical nature of U.S. cheese, whey protein export growth
This week, USDEC President and CEO Krysta Harden led a USDEC delegation to meet with Foreign Agricultural Service Administrator Daniel Whitley and Acting Deputy Under Secretary for Trade and Foreign Agricultural Affairs Jason Hafemeister. The purpose of the meeting was to emphasize the increasingly critical nature of export growth to the health of the entire U.S. dairy supply chain.

Harden, USDEC Executive Vice President Jaime Castaneda, and USDEC Vice President, Global Economic Affairs William Loux focused on the expected impact of ongoing investments in U.S. cheesemaking capacity on production volumes and prices. Harden emphasized the importance of free trade agreements and promotion to support enhancing our global market share.

USDEC projects new cheese plant construction will lift U.S. cheese production by about 500,000 MT by 2026, simultaneously increasing whey production by the equivalent of 35,000 MT of WPC80. While domestic consumption will absorb a portion of that growth, exports will be the critical driver for cheese and whey markets maintaining balance in the years ahead.

Over the long term, the cheesemaking investments have the potential to solidify the U.S. position in global cheese markets, but they will also necessitate overseas demand expansion for cheese and whey proteins, as well as require the U.S. to enhance the value of those products in the international market, both of which would benefit U.S. dairy farmers and processors. With increasing support from FAS, it is a challenge USDEC plans to meet, the USDEC delegation said.

USDEC organizes FAS tour of Maryland & Virginia facilities
USDEC continues to strengthen its engagement with USDA’s Foreign Agricultural Service (FAS). This week, Shawna Morris, senior vice president, Trade Policy, Nick Gardner, senior vice president, Sustainability and Multilateral Affairs, and Sandra Benson, vice president, Market Access & Regulatory Affairs, accompanied a group of FAS attaché trainees on a tour of a Maryland & Virginia Milk Producers Cooperative Association dairy farm and manufacturing plant.

The tour follows USDEC briefings with FAS trainees in March 2023 and July 2022 as they prepared to leave for their global posts (see Global Dairy eBrief, 3/17/23 and 7/15/22). After the March briefings, FAS specifically requested the opportunity to experience U.S. milk production and dairy processing facilities in person. USDEC worked with member Maryland & Virginia to organize the event and thanks the co-op for opening its door to the trainees.

FAS and its attachés have long been key USDEC partners in the effort to build U.S. dairy export markets. USDEC’s ongoing engagement seeks 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.

World Dairy Summit early-bird registration ends this month; poster submission deadline extended to June 16
Don’t miss the discounted early-bird registration for the 2023 International Dairy Federation World Dairy Summit, which is being held for the first time in decades in the United States.

The Summit, taking place Oct. 16-19 in Chicago, is dairy’s premier global symposium, bringing together more than 1,000 dairy industry stakeholders from 35+ countries for a thought-leader, policy, scientific and technical conference, as well as networking events. This year’s Summit theme is “BE Dairy. Boundless Potential, Endless Possibilities.”

The Summit features an agenda packed with presentations from the world’s leading dairy experts, plus opportunities to build relationships with and learn from dairy stakeholders from across the globe. Click here for more information and register now to reserve your place.

Poster abstract deadline extended
Want to showcase your research, innovations, or new solutions that help advance dairy’s boundless potential? The Summit has extended its poster abstract deadline until June 16.

It welcomes all kinds of posters—case studies, research and commercial-based—in seven categories:

• Safety & Quality - Microbiology
• Safety & Quality - Chemistry and Composition
• Nutrition and Health
• Animal Health and Farm Management
• Dairy Technology
• Environment and Sustainability
• Marketing and Economics

For more information on the poster session and how to submit your abstract, click here.

New Zealand dairy exports soar in April
Year-over-year New Zealand dairy exports (major products, not including fluid) jumped 36% in April to over 280,000 MT. It was easily the highest volume of the first four months of the year—and in a 30-day month to boot.

One reason: Chinese demand picked up in April. In the first quarter, New Zealand WMP shipments to China fell 28% (-38,773 MT) and butterfat was down 20% (-6,732 MT). In April, the trend reversed: New Zealand WMP shipments to China rose 46% (+16,057 MT) and butterfat gained 18% (+1,539 MT).

In addition, New Zealand SMP and cheese exports to China continued their strong first-quarter growth into April. Through the first four months, Kiwi SMP shipments to China more than doubled (+28,737 MT) and cheese was up 25% (+8,408 MT).

New Zealand suppliers also saw strong gains to the Middle East/North Africa in April, led by a tripling of WMP sales to Algeria (+13,452 MT) and a doubling of butterfat volume to the region as a whole (+4,184 MT).

 

USDEC urges full funding for U.S. Codex Office
USDEC and NMPF co-signed a letter to the chair and ranking member of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration and Related Agencies urging them to include funding for the U.S. Codex Office (USCO) in the fiscal 2024 Agriculture-FDA Appropriations bill. The letter asks for funding levels at or above the fiscal 2023 amount of $4.8 million. Senate inclusion of funding for Codex in its appropriations bill is particularly critical due to omission of funding for Codex in the House appropriations bill for fiscal year 2024.

The USCO is a valued voice in countless multilateral institutions, including the WTO and the Codex Alimentarius Commission, advocating and developing science- and risk-based food standards on behalf of farmers, ranchers and consumers. Its work helps to ensure fair food trade practices worldwide and protect the health of consumers.

An underfunded USCO would “hamper our nation’s ability to engage on critical multilateral issues,” the letter states. “It is imperative that the United States prioritize all tools necessary to promote transparency and science at an international level.”

 

USDEC updates 111 Export Guide documents in May
USDEC’s Market Access and Regulatory Affairs (MARA) team updated or revised 111 documents in the USDEC Export Guide last month. Changes include:

Volume 1: Tariffs and Classification

• China: Added extension of temporary tariff on whey permeate through Dec. 31, 2023.
  
  
• Panama: Added Most Favored Nation (MFN) second-half quotas.
  
  
• United Kingdom: Added New Zealand’s tariff concessions under the New Zealand-UK free trade agreement.

Volume 2: Import Requirements

• AMS certificates: Listed new fees starting Oct. 1.
  
  
• Malaysia: Updated DVS Peninsular application form and links to approved facilities in the U.S. Dairy Plant Registration or Approval section.
  
  
• Panama: Updated U.S. Dairy Plant Registration or Approval section to indicate that APA (Panamanian Food Agency) only accepts plant registration requests from FAS.

Volume 3: Compositional Standards and Labeling Requirements 

• Australia/New Zealand: Revised standards for infant formula, food additives, and labeling; added standards for approved vitamins and minerals, and pesticide and veterinary drug residues.
  
  
• China: Updated food additives; added packaging.
  
  
• Mexico: Updated labeling to reflect changes in Mexico’s regulations for Sanitary Control of Products and Services and the Regulations of the General Health Law on Advertising.

Every month, USDEC’s Market Access team emails a list of guide updates to interested members. If there is anyone at your company who should be included on the distribution list for that email in the future, please contact Jessica Smith at jsmith@usdec.org.

 

Kerry, Dairygold roll out new products aimed at Chinese market
Kerry Dairy Ireland and Dairygold Health and Nutrition are highlighting nutrition in their latest new products targeting Chinese consumers. Kerry’s Origimel is an adult milk powder that features what Kerry calls “science-backed ingredients” to support muscle, bone and cognitive health and boost immunity. The company is targeting “aging consumers who are seeking nutritional beverages to maintain and improve their health.” Kerry cited a growing opportunity for fortified products in China as that country’s middle class continues to expand.

Dairygold is expanding its Aerabo range of milk powders in China with Aerabo Light, Aerabo Boost and Aerabo Vitality targeting young professional adults, older health-conscious consumers and adults with active lifestyles. The company says that the products contain “higher values” of the essential amino acid tryptophan, vitamin B2 (riboflavin), conjugated linoleic acid (CLA) and provitamin A, as well as tocopherols and beta carotene. Dairygold launched original Aerabo WMP in China in 2021. (Agriland, 5/17/23, 5/19/23)

Company news briefs
Ireland’s Kerry Group opened a new innovation hub in Wageningen University’s “Food Valley” in the Netherlands. The facility will focus on clean-label and food waste technologies. … New Zealand dairy processor Mataura Valley Milk (MVM), which is owned by New Zealand’s A2 Milk Co., is seeking a new chief executive after Bernard May stepped down from the role in May. John Roberts was appointed interim CEO and will oversee MVM’s focus on developing its infant formula manufacturing business. … Qatari milk producer and dairy processor Baladna continues to broaden its global footprint (see Global Dairy eBrief, 3/3/23 and 1/6/23). The company signed Memorandums of Understanding with two Indonesian agribusiness companies to cooperate on milk production initiatives. The joint efforts will aim to identify, assess and initiate projects to bolster Indonesian milk output and processing and strengthen food security. … Arla Foods inaugurated a €10-million dairy farm (about US$11 million) in Kaduna, Nigeria. Arla said the farm—a joint effort between the company, the Nigerian government, non-governmental organizations and the local farming community—will serve as a hub of dairy farming knowledge and “symbolizes the massive potential we see in Nigeria.” (USDEC Southeast Asia office; FoodBev.com, 5/30/23; Food Ingredients First, 5/18/23; New Zealand Herald, 5/9/23)

• In radio interview, Krysta Harden shares significance of World Milk Day  
• Harden previews upcoming farmer mission to Singapore  
• Harden’s message to global dairy customers is they can count on the U.S. to consistently meet their needs  
• MOU to strengthen common-ground objectives between the U.S. and European dairy trade sectors 
• Harden reminds European dairy trade organization of U.S. farmers’ commitment to environmental sustainability