Since 2008 however, the export market has become much more attractive and countries like New Zealand, where production also greatly exceeds local consumption, have enjoyed the benefits of making products that are tailored to the world market. The report suggests that dairy processors will need to be the driving force behind such innovation to develop new products, taking steps to increase their production capacity, maintain new production capacity and develop relationships with key export customers to make sure members are receiving the highest value for their products.
The report references The Northwest Dairy Association (Darigold), a cooperative servicing members in the Pacific Northwest, as a well executed example. The organization’s exporting practices have been one of the keys in their ability to pay its Oregon and Washington members, on average, USD 1.42 per cwt higher than California dairy averages from 2007 to 2011.
The report concludes that while California dairies have historically benefited from MMOs, the time has come for the industry to take steps that allow dairies to compete in the global market and invest in the necessary infrastructure that will enable them to produce products that cater to export customers’ demands. A full copy of the report is available to the media upon request. Click here for more information.