The U.S. Dairy Export Council (USDEC) recently embarked on a pivotal journey to China, with the aim of strengthening ties and enhancing trade opportunities between U.S. dairy suppliers and Chinese buyers. Leading this delegation was USDEC Chairman, Alex Peterson, a dairy producer from Missouri, accompanied by USDEC President and CEO Krysta Harden, USDEC Vice Chair Becky Nyman, a California dairy producer, 15 USDEC members and key staff. The trip, held in late June, was a collaborative effort with the USDA’s Foreign Agricultural Service, focusing on business development in Beijing and Shanghai.
Enhancing Communication and Collaboration
The trip underscored the importance of effective communication and collaboration between industry stakeholders. Through this mission, USDEC had the opportunity to share valuable insights about U.S. dairy production capacity, opportunities to introduce new dairy products, and more.
Peterson shared that collaborating with USDA helped emphasize the message of how the U.S. and China could strengthen their dairy industry relationships.
Goals of the Visit
The delegation’s visit to China had two primary goals:
• Build and strengthen relationships between U.S. dairy suppliers and Chinese buyers.
• Promote U.S.-China agricultural trade relationships.
Peterson noted that the mission was uniquely collaborative, involving farmers and USDEC members actively engaged in exporting dairy products to countries like China.
One of the highlights of the visit was the one-on-one meetings arranged between U.S. companies and Chinese buyers. Peterson likened these interactions to speed dating, emphasizing the fast-paced and focused nature of the negotiations. This approach cultivated a unified voice for U.S. dairy, presenting a robust and cohesive industry presence.
“It was a good well-rounded approach,” Peterson remarked. “The feedback from processors represented on this trip received regarding USDEC’s support, export guidance, and regulatory navigation was overwhelmingly positive.”
Celebrating Short-Term Wins
The trip culminated in successful deals, which Peterson described as a significant short-term win. For dairy farmers like Peterson, achieving these immediate successes was an encouraging outcome of the mission.
Peterson says that “as a dairy farmer, we always want to know ‘what’s the goal?’ The goal is to open doors so we can sell more dairy products,” he explained. He acknowledged that while the long-term impact of the mission will unfold over the next decade, the immediate results were a positive sign for the industry.
Indeed, USDEC’s recent mission to China marked a strategic step towards fortifying international trade relationships and promoting U.S. dairy products. With successful meetings and deals secured, the foundation has been laid for future growth and collaboration within the Chinese market. As the industry continues to navigate global markets, such initiatives will be crucial in achieving sustained success and opening new avenues for U.S. dairy farmers.
Sights and Insights from China
This was Peterson’s first trip to China, which offered him fascinating insights into the country’s growing affinity for Western culture and cuisine.
“We literally saw KFC’s everywhere,” he shared, also noting the proliferation of pizza joints across the landscape, pointing to a desire for more U.S. dairy products.
During the trip, the group met with an organization called Yum China and learned about the rapid expansion of Western food chains like KFC and Pizza Hut in China.
“They have around 10,000 stores and are adding 1,200 stores annually,” Peterson revealed, emphasizing the increasing needs of a growing urban population in a country of 1.3 billion people. However, he also pointed out that it’s not all sunshine and rainbows. There are significant challenges related to trade policy and market access, which currently place the U.S. at a disadvantage.
“Although when you talk with Yum China, who has an eye on massive growth, they realize there are only a few parts of the world where they can find a supply of cheese and dairy ingredients that have the capability for similar growth,” he said. “The U.S. is going to be one of the primary export growth suppliers down the road.”
Despite these hurdles, the mission aimed to keep the door open enough to ensure that future opportunities to move dairy products remain viable.
“It’s kind of our job to help encourage them to open the door, even more so, it gives us a better shot at just a level playing field,” Peterson added.
Another highlight of the trip was witnessing how proudly Chinese restaurants promote U.S. cheese in their marketing and menus.
“This demonstrates what U.S. dairy does well and that’s what opens the door to future opportunities,” Peterson proudly reported.
