The Memorandum of Understanding (MOU) signed by USDEC and China's Jiangnan University looms even larger today than it did four months ago when it was initialed.

China's retaliatory tariffs on hundreds of U.S. products, including dairy, are likely to put U.S. suppliers at a greater competitive disadvantage and complicate business with the nation. Relationship building is essential to combat that disadvantage. 

To preserve and grow its position in the market, the U.S. dairy industry needs to elevate its presence in China, strengthen customer connections and demonstrate its commitment and desire to serve Chinese buyers and consumers.

That is exactly what the Jiangnan University MOU aims to facilitate.

The following Q&A lays out information on the university, its services and the nature of the agreement. We believe the MOU offers an excellent opportunity for U.S. dairy suppliers to lift their profile in China-and elevate the presence of the entire U.S. sector along with it. 

If you have further questions about the MOU and how to participate after reading the following column, please do not hesitate to contact USDEC staff members Ross Christieson (rchristieson@usdec.org) and Kristi Saitama (ksaitama@usdec.org).

Q: What is the MOU between USDEC and Jiangnan University?

A: The MOU between USDEC and Jiangnan University creates a platform for collaboration between the U.S. dairy industry and Chinese food, dairy and beverage companies to accelerate commercialization of innovative China-friendly products incorporating U.S. dairy ingredients. USDEC expects the agreement will deepen ties between the U.S. dairy industry and Chinese buyers and consumers, creating a sustainable, growing market for U.S. cheese and dairy ingredients.

Q: What is Jiangnan University?

A: Jiangnan University, located in Wuxi northwest of Shanghai, has been around for more than 100 years. It boasts 18 schools, 51 undergraduate programs and more than 20,000 fulltime students. Food science and technology is one of its primary disciplines, and its National Key Lab of Food Science and Technology is the only one of its kind in China.

Q: What types of projects can USDEC members pursue through the partnership agreement?

A: The university is well-equipped with technical capabilities, lab, kitchen and research facilities, as well as an array of advanced and diverse instruments to provide U.S. dairy suppliers with thorough and comprehensive expertise in dairy technology, food analysis and China-friendly product R&D support.

Pilot plant and processing capabilities include services and facilities spanning dairy (e.g., cheese, yogurt, ice cream), beverages, baking (e.g., breads, biscuits, cakes), food fermentation, thermal processing and more.

Food analysis services and facilities include but are not limited to composition analysis, physical-chemical analysis, microbiological analysis, flavor analysis, sensory evaluation and shelf-life evaluation.

While the university is open to exploring a broad variety of projects to support USDEC members' needs, we especially see great value in three primary areas: on-site demonstrations for customers, technical troubleshooting and R&D/analytical work to accelerate product innovation and the uptake of U.S. dairy ingredients.

Q: Can you give me an example of a project a U.S. company might pursue?

A: Perhaps a customer has reached out to a U.S. dairy supplier about a product performance question or challenge in using a specific U.S. dairy ingredient. For example, maybe the ingredient performs differently than a non-U.S. competitor's product that the customer is using currently.

The U.S. supplier could do a product demonstration at Jiangnan University to showcase how to optimize the successful use of the U.S.-origin dairy ingredient, thereby addressing and overcoming knowledge and technical hurdles to the customer's usage adoption.

These are types of things that could be difficult to resolve with back-and-forth emails. But seeing and discussing the problems face to face in a lab setting can create an "Aha! Moment" that promotes mutual respect and understanding. It can clarify what the customer needs and how the U.S. ingredient can meet that specific need.

As another example, perhaps a U.S. supplier is working with a customer to launch a new consumer-facing product in China. Jiangnan can help with sample preparation and conducting sensory testing. This step can in turn support adjustments to the product formulation in response to consumer feedback and ultimately enhance the product's marketability and chances for commercial success.

Q: How can USDEC members engage with Jiangnan University?

A: USDEC will act as intermediary for the initial request for Jiangnan University services. If you are interested in working with the university, contact Ross Christieson (rchristieson@usdec.org) and Kristi Saitama (ksaitama@usdec.org) with a description of the nature of the project, what you hope to achieve and how you expect the university to help. The more specific you can be about the project, the easier the evaluation process will be. We welcome the opportunity for pre-consultation on proposed projects to ensure that they align with the scope of the MOU.

Q: What is the timing?

A: From initial submission of a proposal to USDEC until the actual start of the project at Jiangnan University requires a minimum lead-time of 30 days-but 45 days is ideal. Due to prior commitments, Jiangnan University may not necessarily be available when you prefer to begin a project-ample notice and flexibility would be helpful. 

Q: What are the costs?

A: The university evaluates each project on a case-by-case basis, depending on objectives, scope of work, etc., to determine cost and scheduling. No project will proceed without an agreement on cost between the university and the member.

USDEC is only the intermediary during the initial proposal submission to Jiangnan University. All subsequent cost and scheduling discussions take place between you and Jiangnan. Members are responsible for 100 percent of any fees charged by Jiangnan.

Q: Why should members pursue projects with Jiangnan?

A: Jiangnan is a platform for USDEC members to get closer to customers and accelerate success in China. We expect it to encourage the development of innovative, China-friendly product formulations that incorporate U.S. dairy ingredients, particularly but not limited to whey and milk proteins and milk powder.

The MOU provides the opportunity to work collaboratively with the local industry to strengthen relationships, boost the U.S. presence and demonstrate that we are a world-class dairy partner fully invested in China for the long term-ultimately increasing U.S. dairy sales.

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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff. The password-protected article above is intended for USDEC member organizations only and should not be shared with anyone outside your organization.