Dairy consumption rises in low-income regions of the world - USDEC

The buzz around alternative dairy products is far from a worldwide phenomenon: much of the activity remains local in developed countries with higher purchasing power. And while dairy consumption is stabilizing in the U.S., the nutritional source is gaining ground in low-income areas as a versatile, affordable and shelf-stable food that can help stretch budgets in a tough economic climate.

Dairy ingredients have also recently been highlighted by suppliers as key sources to address malnutrition as they provide protein and serve as the basis for fortifiers.

Krista Harden, President and CEO of the U.S. Dairy Export Council (USDEC), a non-profit membership organization that represents global trade interests for U.S. dairy products, spoke about the rise of dairy alternatives and how dairy plays an important role in feeding a huge population all over the world .

How are plant-based dairy alternatives impacting consumer habits?

- Consumers can now make more choices, especially in developed countries. And over time there will be more and more goods. But now there are many alternatives in trend for some time, and then one replaces another. So we'll have to look long term at who has the long legs and what becomes part of a more sustainable diet.

We need to recognize that there are many consumers who will not have access to this choice due to price. They won't have the variety that might appeal to consumers in Europe or North America.

Many families around the world are struggling to make ends meet. For example, in the Philippines, 40% of their income goes towards food, so they will be very picky about price and how to get the most out of a product that the whole family will eat.

We must acknowledge what is happening to the world's population at all levels. In many parts of the world, if you have a cow, you can feed your family and possibly your neighbors. It's not just about those who have the income and resources to be picky. We need to look at everyone and make sure they are getting good, healthy nutrition.

How do you assess the impact of precision fermentation or cell-based dairy products?

- Precision fermentation products are still relatively niche and aimed at higher incomes. I'm not saying it will last forever, but today it does. It's certainly interesting, and the science is wonderful.

But for a village in Indonesia or Nigeria, where most of the population still lives in rural areas, it may not be as accessible today as in Paris, London or Washington, DC. In my hometown of Camilla, Georgia, you won't find precision fermented ice cream.

In the long term, we will have to see whether cellular and precision fermented proteins will be accessible and affordable. What will need cooling and what won't?

Even in terms of transport, refrigerated trucks are not available in all parts of the world, especially when it comes to supplying small family buffets or wine cellars that feed the largest populations.

Where is USDEC increasing its market share?

- There is more emphasis on exports because we are very productive and our population in the US is not growing. We are growing very little and our output is already in the mid-90s among US households, so we need to look around the world for new markets, expand those markets and gain more market share.

We have offices in 10 cities. There are people in these markets who listen to consumers and governments, because in certain places around the world, trends can also be driven by government.

We work closely with many communities to make sure we can share data, information and our science with local dairy farmers to ensure we are working together. For example, unite dairies and schools and ensure that dairy products are available on the market and accessible to everyone.

It's part of our commitment to ensure there is demand for dairy products because they are healthy, nutritious and should be available to everyone who wants and needs them.

In addition to our investments in Latin America, Asia and the emerging dairy markets of North Africa and the Middle East, we are looking long-term at parts of Africa that have large populations but no sustainable dairy production.

These are hungry people who need nutrition in virtually every corner of the world, and there's really no limit to what American dairy products can do over time. Today we are third in exports. I expect it will continue to grow and we will take a larger share of the market over the years.

In a recent interview with ProVeg Nigeria, it was noted that a large proportion of the African population is lactose intolerant and dairy products may not be the most suitable solution - how should the industry respond to situations like this?

“We need to be very sensitive to cultural and health preferences, and we need products that make it easier for everyone to have dairy in their diet.” I believe in this holistically and we just need to be more flexible and offer a variety of products.

If they want to choose dairy products and the only reason they don't is because of health concerns, then we need to have more products. It is our responsibility and we need to make these investments.

In the US we have Lactaid, a huge growing brand that now also offers ice cream and other products. There is also Fairlife, a lactose-free ultra-filtered milk that is extremely popular among the younger generation.