Unlike New Zealand's Fonterra Cooperative, which controls over 90 percent of the nation's dairy product trade, the U.S. has a competitive environment with numerous manufacturers that compete openly for domestic and international sales. While that is good news for both consumers, who have more buying options, and dairy producers, who have more outlets to sell milk, the situation makes it somewhat difficult for U.S. companies to make inroads on the global sales stage.
That's where the U.S. Dairy Export Council (USDEC) comes into play. At the recent U.S. Dairy Business Conference in Dubai, United Arab Emirates, USDEC's Tom Suber responded to an audience question and explained how the organization connects buyers and sellers. To learn more, watch the video attached to this news item above.
As mentioned earlier, the competitive nature of global markets is one of the reasons Dairy Management, Inc., the nation's dairy farmer-funded checkoff program, launched the U.S. Dairy Export Council in 1995. Although USDEC doesn't directly sell products, over time the fledgling organization gained momentum as it helped processors make connections to international customers. As a result, global demand for U.S. dairy products has grown and market access barriers are being addressed to now support American export sales that have grown to double-digit market share when compared to U.S. dairy production.
Today, USDEC continues to be funded by dairy producers through the Dairy Checkoff along with fees from processors and cooperatives who utilize their services around the globe. How has it been doing? "Dollar for dollar, USDEC is the best investment for your dairy dollar," stated Richard Stammer, CEO of Agri-Mark, a dairy cooperative in the Northeast.
Editor's note: This is the third article in an five-part Hoard's Dairyman Intel series discussing the growing Middle East market. Dubai is home to the world's ninth-largest shipping port. Approximately 40 to 50 percent of the imports into Dubai, the business hub of the Middle East, are food items. Next to grain and rice, dairy is the next largest food import.
Click here to watch the November 11 Hoard's Dairyman Intel video: Middle East hungry for dairy products
Click here to watch the November 18 Hoard's Dairyman Intel video: U.S. needs to become a steady buyer
