USDEC Aids Record Growth of Dairy Exports

For the fourth straight year, U.S. dairy export volumes reached record levels, according to a recent analysis conducted by the U.S. Dairy Export Council (USDEC).

In 2006, U.S. exports of milk powder, whey, cheese, lactose and other dairy products were valued at $1.89 billion, up 13 percent from 2005. Measured on a total solids basis, the United States exported 2.1 billion pounds of milk solids, up 15 percent.

Exports represented 9.3 percent of U.S. production of milk solids in 2006, while prior to 2003, dairy exports generally accounted for 4 to 5 percent of production.

In 2006, 632 million pounds of non-fat dry milk were exported and other than small volumes of food aid, these were all commercial, unsubsidized sales. Whey protein exports were a record 766 million pounds, up 26 percent from 2005. Cheese exports were 157 million pounds, up 23 percent, while lactose exports, at 524 million pounds, were up 29 percent from the prior year.

USDEC Overview
The U.S. Dairy Export Council is a non-profit, independent membership organization that represents the interests of U.S. milk producers, dairy cooperatives, processors, export traders and industry suppliers. USDEC was founded by (and is staffed by) Dairy Management Inc. (DMI), the farmer-funded marketing, promotion and research organization. USDEC is a comprehensive resource for U.S. dairy exporters with a unique membership of both processors and producers.

USDEC is committed to providing the dairy industry with services that directly increase company export sales or decrease the cost of exporting.

Funding
USDEC’s primary funding source is DMI, through the dairy promotion check-off program. The U.S. Department of Agriculture’s Foreign Agricultural Service (FAS) also provides export support through its Market Access Program, Foreign Market Development Program and Emerging Markets Program. The remainder of USDEC’s annual funding comes from membership dues, which provide the sole funding for trade policy and lobbying activities.

Marketing Products Globally
USDEC approaches each international market differently, depending on local dietary patterns, demand for dairy products, level of international and local competition, consumers’ purchasing power, and the degree of market access. USDEC enters a market by working with importers and distributors to familiarize them with the features and benefits of U.S. dairy products through trade visits, missions and application seminars. Later, when sufficient distribution is attained, USDEC’s marketing efforts shift closer to the consumer with sampling, promotions and advertising.

USDEC Creates Opportunities
USDEC recently assisted U.S. companies with standardizing protein levels to increase skim milk powder exports. USDEC helped establish long-term markets for U.S. cheese in Mexico through aggressive retail and food service promotions.

Since 1999, USDEC has laid the groundwork for growth of U.S. products in China. Through application seminars, USDEC showed food formulators the capabilities of U.S. suppliers and brought buyers and sellers together, resulting in a six-fold increase of U.S. dairy exports.

U.S. Whey Protein Research Consortium
In 2003, USDEC facilitated the creation of the U.S. Whey Protein Research Consortium, whose mission is to create incremental global usage of whey proteins through development and documentation of the health and wellness benefits of whey protein. The consortium’s focus is to fund clinical trials with whey proteins to obtain science-based benefits attributable to whey.

This consortium includes co-ops, associations, processors, international and multinational companies operating through a joint venture agreement.  The consortium is growing as companies join in the effort to obtain a FDA-reviewed claim for whey proteins and their impact on body composition. The consortium is funding more than $1 million for a study to determine the optimal dose of whey proteins to deliver the desired benefit to consumers.

USDEC and CDRF
USDEC and CDRF are supporting state-of-the-art research on new methods to evaluate the quality attributes and characteristics of milk ingredients. Using innovative approaches, researchers at the Cal Poly Dairy Milk Powder Application Lab are developing high-tech tools to assist the dairy industry in building an international, competitive advantage.

USDEC and CDRF collaborate regularly on R&D missions around the world. In July 2006, CDRF consultant Gonca Pasin coordinated a mission to China for USDEC. The objective was to understand the opportunities and distinct challenges this growing producer and consumer market represents. China is one of the world’s largest ingredient markets and a key customer for California-based suppliers.
CDRF Executive Director Joseph O’Donnell has assisted USDEC on earlier missions to Europe, Ireland, China, Japan, Australia and New Zealand. “The opportunities to market U.S. dairy products through export is increasing and USDEC and CDRF will continue to work together to deliver dairy products for the growing global demand for nutritious food.” said O’Donnell.

To gain a better understanding of U.S. dairy products, USDEC also invited research and development staff from Southeast Asia to attend the Cal Poly Dairy Ingredients Symposium in San Francisco in February.

According to Veronique Lagrange, USDEC vice president of strategic research and business development, several current USDEC studies combine market research, product research and application development of milk protein concentrates, whey permeates and milk permeates. Lagrange states, “These studies will help U.S. dairy products maintain or establish a competitive edge in the global arena.”

For more information on the U.S. Dairy Export Council, please visit its Web site at www.usdec.org.