Despite U.S. dairy exports reportedly being up in February in numerous categories, Krysta Harden, president and CEO of the U.S. Dairy Export Council (USDEC), says dairy producers are still faced with a tough global market.
“We’re starting to see pockets of recovery,” she says. “Which is very encouraging.”
Harden shares that both Mexico and Latin America have been a workhorse in terms of U.S. dairy export products.
“We’re very pleased and proud that continues to hold steady,” she says.
Harden believes that 2024 will be a good year for dairy exports, but not up to the record levels that 2022 delivered. In 2023, the U.S. dairy export value finished at $8.11 billion, the second-largest value of all time but down 16% from the record year of 2022 as volume and prices eased.
“I think recovery is happening around the world,” she says. “We are starting to see really small positive signs and indicators that we’re moving in the right direction.”
Nearly 80% of dairy exports are protein and powders, as they are versatile and easy to ship. However, countries like Mexico are showing interest in cheese. Harden shares that cheese is a big part of their diet and says that the U.S. must illustrate the vast array of cheeses that we have to offer to help move more cheese.
“They may know one type of cheese and it’s something maybe from Europe and we’re trying to help them understand the variety and the richness and diversity of U.S. cheeses,” she says. “We win a lot of awards around the world. We just have to continue to remind people that the U.S. knows how to make great cheeses.”
Recovery Mode
When it comes to hurdles in pushing exports, Harden explains that the overall health recovery from the COVID-19 pandemic took time for the world to recover and bounce back.
“It’s not that easy in a lot of developing countries, and a lot of them had a very, very difficult time,” Harden explains, sharing that many don’t have the infrastructure that the U.S. does. “So, the rest of the world has really suffered. Wars, food insecurity and economic uncertainty in many parts regions have also created challenges.”
Questions needed to be answered to see if it was safe to do business in certain parts of the world and who could financially afford to buy our products. Harden shared that other situations like the low water level in the Panama Canal had to be assessed.
From language barriers, different currency forms, and different forms of government tariffs, Harden also explains that the dairy industry must get their arms around and make sure that they are ready to handle all that is multiplied when dealing with a global market.
“This is not for the faint of heart. This is for the serious businesses to manage all these issues,” she says.
Bullish on Exports
Still, Harden is very bullish on the future of exports.
“I think we have high-quality, high-value products that the world needs,” she says. “I believe that the young folks who are coming back to the dairy are well educated. They have a business model and an entrepreneurial mind. They think globally in everything they do. I believe that folks who are going to be leading dairy are some of the best minds in the country.”
Harden enjoys traveling the world, but she absolutely loves it when dairy farmers can share their dairy messages with the world.
“There is no one who can tell the story better than the dairy farmers themselves. Their earnestness, their honesty, their commitment to their product, their commitment to their community, commitment to how they farm really melts away all the questions and concerns of others,” she says. “When our farmers start talking, it just melts away the concern and it melts away the skepticism.”
Opportunity in Africa
USDA has put new support for exports to Africa, which Harden says is great timing for dairy.
With 54 countries, not everyone is suited for business relations with the U.S., Harden says. However, she shares it’s a growing middle-class society that is looking to add protein to their diets. For example, Harden was recently in Angola with the USDA, and she shares it’s a resource-rich country being a major exporter of oil and gas and diamonds.
“They have money,” she shares. “They have a big port and they’re used to doing business with the U.S. and the rest of the world. And they are very interested in agriculture and dairy in the future as well.”
Harden believes that continents like Africa provided a great opportunity to help grow U.S. dairy exports.
With the world recovering from COVID-19 and opportunities on the horizon, Harden believes that 2024 will be a good year for dairy exports.
“If we can grow exports in the toughest of times, then we can continue to grow exports anytime,” she says.
