Dairy Processing - July/August 2023 - 10

Many of the
same cheeses
that are
popular in
the US are
in demand
around the
world with
the same
consumer
drivers
such as
convenience,
taste and
nutrition. "
Kyle Jensen, Hilmar
population, you've got consumers looking to
dairy as those incomes rise and ultimately as
their tastes change. "
While demand from these markets is
growing, demand from China has been softer
recently as the country has focused on reducing
inventories that built up during the pandemic.
At the same time, several key dairy-producing
regions like Europe have stagnated exports
recently, giving the US an opportunity to meet
needs around the world.
In response to all these factors, farmers,
cooperative, and processors are viewing dairy
as a growing industry overseas and expanding
capacity. This includes increasing production of
mozzarella and America-type cheeses like cheddar
and Colby and establishing more high-value butter
and skim milk powder plants, Loux said.
" From a global standpoint, we're seeing the
most demand for products like milk powders,
whey proteins, cheese and butter, " said Dale
Mills, Jr., vice president of global sales for DFA
Ingredient Solutions. " In order to meet global
demand, there has been significant increased
production capacity in the US, especially in the
cheese and whey proteins space. "
Supportive trade policies will be necessary
going forward, Rasdall said. IDFA has worked
with both Congress and government agencies to
communicate the rights of exporters regarding
ocean carriers, and one success in these efforts
has been the passing of the Ocean Shipping
Reform Act.
The US-Mexico-Canada Agreement
came into place in the summer of 2020, and
while there was initial anticipation it would
10 JUL-AUG 2023 | DAIRYPROCESSING.COM
bolster exports to Canada, the country hasn't
implemented its commitments as hoped. This
has prompted IDFA to encourage the Office of
the US Trade Representative to dispute tariff
rate quotas, Rasdall said.
" We would like to see Canada meet their
obligations under the agreement and allow us to
ship as we are supposed to, " Rasdall said.
Another challenge in the global market is
the current lack of work in developing new
trade agreements.
" We are in a period right now in the US
where we are not negotiating trade agreements
that reduce tariffs and result in zero-tariff
access, so we haven't quite seen the impact of
that being put on hold yet in our trade data, but
I do think it's something that's going to catch up
with us, " Rasdall said.
There is also significant untapped growth
potential as markets in Russia and India are
currently closed to the US for geopolitical
reasons, but they represent tremendous growth
opportunities if circumstances change.
" There are many nuances in being an
exporter compared to domestic sales such
as country requirements that must be met -
ever-changing tariff and free trade agreement
landscapes as well as varying customer
requirements and preferences, " Mills said.
" Processors looking to export dairy products
must have a good understanding of these areas
or at least tap into resources that do. "
FLEXIBILITY IN OPERATIONS
Milk Specialties Global, Eden Prairie, Minn.,
is investing in the production of casein and
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Dairy Processing - July/August 2023

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