U.S. Dairy Export Council: Expanding Horizons in Global Dairy Trade

The U.S. Dairy Export Council (USDEC) is headquartered in Arlington, Virginia. As a significant entity in the international promotion of U.S. dairy products, USDEC has strategically positioned itself to enhance the global market presence of the U.S. dairy industry.

Financial Performance

USDEC demonstrates robust financial performance, with annual U.S. dairy exports surpassing $6 billion. Although there was a slight 2% decline in export volumes by October, the export value increased due to strong market demand and favorable pricing. The organization maintains a notable 10% annual growth rate in volume, primarily fueled by contributions from Latin American markets.

Notable Events

USDEC actively engages in international trade fairs and exhibitions, essential for building connections with global food producers and enhancing market access. U.S. dairy products, particularly cheese, have gained traction in regions such as Asia and the Middle East. In March, U.S. dairy export volumes reached their highest in over two years, driven by competitive pricing and improved domestic milk production.

A significant development includes USDEC's advocacy for reciprocal tariffs to address trade imbalances with the European Union. The organization remains vigilant about potential retaliatory tariffs from key markets like Mexico, Canada, and China. A noteworthy event was the signing of a Dairy Memorandum of Understanding (MOU) with Taiwan, in collaboration with the National Milk Producers Federation (NMPF).

Additionally, the strategic addition of 235,000 milking cows reflects efforts to expand the milking herd, as noted by economist William Loux from USDEC. The council has also expressed concerns about cheese-naming and geographical-indication issues, presenting these during discussions in Mexico City over the review of the United States-Mexico-Canada Agreement.

Future Plans

USDEC plans to strengthen its presence in rapidly growing markets, particularly in Southeast Asia and the Middle East. The council aims to leverage digital outreach initiatives and strategic market penetration to meet the increasing global demand for U.S. dairy products. USDEC is also committed to promoting sustainability and innovation in dairy production.

With support from NMPF, USDEC has advocated for the U.S. Department of State's allocation of up to $100 million to expand dairy use in global food aid. The council works diligently to enhance trade relationships in Latin America and aims to boost dairy consumption across North America while resisting protectionist barriers by building institutional ties with key producer groups.

Leadership and Management

Under the leadership of Paul Rovey from 2012 to 2019, USDEC effectively managed responses to international trade investigations and advocated for stronger enforcement of market-access commitments. Barbara O'Brien's collaboration has been crucial in reinforcing the global position of U.S. dairy. CEO Krysta Harden recently participated in a congress held in Medellín, Colombia, underscoring the council's commitment to global engagement.

The organization has been vocal about Mexico's concessions to Brussels, emphasizing the need for Mexican authorities to protect market access for both U.S. manufacturers and Mexican producers using common cheese names. USDEC, alongside NMPF, has submitted comments to the EU regarding the sustainability directive, stressing the need for adjustments to prevent undue burdens on U.S. dairy operations.

The U.S. Dairy Export Council has repeatedly accused Ottawa of the way it administers tariff-rate quotas, which it argues limits effective access for U.S. fluid milk, cheese, and dairy ingredients. The U.S. Dairy Export Council is organizing a programme in Chile focused on understanding the requirements of different sales channels and identifying openings for American dairy products in Chile. The initiative aims to strengthen long-term links with Chile’s food industry and promote U.S. cheeses through various activities.