Minnesota Dairy Farmer Shares His Experience Representing U.S. Dairy in Southeast Asia

Dairy farmer Charles Krause left his Minnesota dairy farm and took his first trip traveling out of North America earlier this month. Traveling more than 18 hours by plane, Krause arrived in Southeast Asia where he and fellow dairy producers learned more about how the U.S. Dairy Export Council (USDEC) mission has helped increase demand for U.S. dairy products.

Krause was one of seven farmers that traveled to Singapore that explored Southeast Asia, including meetings with consumers, visiting U.S. dairy companies that have offices in Singapore, as well as supermarket visits and an up-close look at the U.S. Center for Dairy Excellence, which serves as a state-of-the-art innovation center and gathering place for U.S. dairy suppliers and Southeast Asian food and beverage stakeholders.

In addition to Krause, the other farmers that traveled to Singapore were:

• Kate Fogler (Maine)
• Skip Hardie (New York)
• Becky Nyman (California)
• USDEC Chair Larry Hancock (Texas)
• USDEC Vice Chair Alex Peterson (Missouri)
• Dairy Management Inc. Chair Marilyn Hershey (Pennsylvania)

Over the years, these types of missions have allowed U.S. dairy farmers to examine how big of a bang they are getting for their checkoff dollars as the primary funders of USDEC. 

Last year, with $1.68 billion in sales, Southeast Asia was the No. 2 export market for U.S. dairy. U.S. dairy suppliers have increased their market share in the Southeast Asian market by nearly 5 percentage points since 2019.

“There's a lot of demand for U.S. dairy, so it's really making sure that we're meeting those needs and that were stepping up where there's an opportunity, and also creating new opportunities for high-value products and different products,” Krysta Harden, president and CEO of USDEC, says. 

Krause shares that he feels it’s a great investment to show U.S. dairy farmers a growing export market firsthand.

It’s very important for us to have a physical relationship presence with our international customers,” he says.

“I think it's very important that folks recognize how critical it is to have dairy farmers on the ground in our markets,” Harden adds.

According to Krause, while in Singapore, he received a big introduction to the six big countries in Southeast Asia, learning about the different ingredients and products and understanding the differences and similarities compared to U.S. dairy products. He shares that with 600 million people in Southeast Asia, the future of U.S. dairy export growth shows promise.  

“To me, it’s a no-brainer, when you have that many people, there is so much potential to move products,” he says.

Changing Export Conditions

Krause notes it is disheartening that U.S. dairy exports are down from their record pace in 2022, but notes that inflation impacts the whole world, not just the U.S. economy.

“A lot of what Southeast Asia is experiencing, especially in Singapore, is heavily impacted by what happened to the United States,” he adds. “As dairy farmers, we have come to understand that the markets go up and down. And it's always a lot more fun when we have a year like 2022 compared to what we're getting now.”

Although the tides have shifted, Krause says it becomes a long-term approach and he is proud that through USDEC, over the last decade, the U.S. has put its foot on the gas and showcased a strong commitment to being a reliable, consistent supplier of sustainable dairy products.

“We’re not jumping in and out of the market. We're going to be here for the long run. You really have to when you start forming these customer relationships. That is what they need to know and be aware of,” Krause says.

One cool experience that Krause got to view with his own eyes was to see a major port that has 37 million shipping containers come in and out of each year.

“We go on a family vacation in Minnesota, and we are happy to see one or two big ships come in a day,” he says. “When you look out at the ocean in Singapore, it's as far as you can see, you cannot see the end of the ships coming and going.” 

Harden concludes that while headwinds are challenging U.S. dairy suppliers across the globe, this still is an opportune time for dairy farmers, like Krause, to make their way to a robust dairy export market, like Southeast Asia.

“Even with challenging market conditions, we want to show that we are here for the long-term to work together and inspire innovation success that drives mutual long-term growth,” she shares.