Climbing demand for ultra high temperature pasteurized milk (UHT milk) in China opens another door of opportunity for the U.S. dairy industry. Chinese UHT milk imports were worth $76 million last year. The market value already topped $85 million in the first half of 2013.
This growth will continue, according to a new U.S. Dairy Export Council (USDEC) study, which estimates the nation's use for UHT milk could be more than 1.3 billion pounds by 2020. That is four times the 331-million-pound consumption forecasted for this year.
The ultra high temperature pasteurization process heats milk to 280°F for two seconds, eliminating a larger percentage of bacteria than regular, "high temperature, short time" pasteurization. Coupled with sterilized packaging, UHT milk has a shelf life of six to nine months.
The U.S. currently produces about 2 million tons of UHT products annually, including products such as Coffee-mate, Nesquick and milk for fast-food restaurants. However, the U.S. has only played a small role in supporting China's demand for the product thus far.
And that's where opportunity knocks. Producing UHT milk for China and other countries could grow U.S. exports with a value-added, branded product. To gain a larger share of the foreign imported UHT sector, U.S. suppliers need to develop products that better fit consumer expectations. For example, UHT milk is mostly packaged in half pint and pint boxes and bottles in the U.S., but 1-liter boxes, according to USDEC's research, dominate the Chinese market. The growing demand for UHT milk should be a push to U.S. dairy processors to determine pricing and products that fit foreign needs.
