HIGHLIGHTS: January 17, 2025
• Farmer training program kicks off in Indonesia
• U.S. CDE readies workshops, strengthens reputation
• Senators call for greater USTR transparency and consultation
• Letter supports Rollins as next USDA secretary
• Member opportunity: discounted access to TDM
• Market Summary: EU milk production ramps up
• First FMD cases found in Germany in nearly four decades
• Brazil's Pirancanjuba building multi-use dairy manufacturing plant
• Ornua to close UK cheese plant
• Lactalis closes Zambia plant
• Company news: Yum Brands, Standing Ovation
Featured
USDEC continues to strengthen ties to Indonesia with new dairy farmer training program
Last week, USDEC and its U.S. and Indonesian partners kicked off the “Training for Farmers Program” in Indonesia and signed a Memorandum of Understanding with a major Indonesian university committing them to collaborate with USDEC on the training. The program is aimed at supporting the local dairy farm sector in improving milk production and dairy consumption for the mutual benefit of the dairy industries in both countries.
The project has been in the works for more than a year. USDEC’s Jonathan Gardner, senior vice president, Market Access and Regulatory Affairs, and Shawna Morris, executive vice president, Trade Policy and Global Affairs, have met several times with Indonesian officials and dairy industry stakeholders both in Indonesia and the U.S. (see Global Dairy eBrief, 2/16/24, 3/8/24, 6/28/24 and 9/20/24). USDEC worked with U.S. partners to develop the program (see Global Dairy eBrief, 7/12/24) and helped organize a reverse agricultural trade mission from Indonesia to Wisconsin, where representatives from the Indonesian government, farm sector, food manufacturing and universities visited U.S. dairy farms, dairy processors, the University of Wisconsin’s Center for Dairy Research and the World Dairy Expo (see Global Dairy eBrief, 10/4/24).
During their most recent trip to Indonesia (prior to last week), they oversaw the official public launch of the U.S.-Indonesia Dairy Partnership Education Project (USIDP) last November (see Global Dairy eBrief, 11/22/24). The USIDP is a collaboration between USDEC, New Mexico State Department of Agriculture (NMDA), New Mexico State University, and Indonesian partners Global Dairi Alami, Cimory, and Ultrajaya.
Last week’s trip began with the signing of a Memorandum of Understanding with Institut Pertanian Bogor (IPB) Bogor to provide training in dairy for IPB educators to carry out the program.
Signing of the MOU between the U.S.-Indonesia Dairy Partnership Education Project partners. Behind the table, left to right, are Dustin Cox with the New Mexico Department of Agriculture, USDEC’s Jonathan Gardner, and Dr. Arif Satria, the rector of IPB University.
The overall USIDP supports Indonesian dairy farmers through in-person and online courses in critical areas, like farm management practices, cattle health, nutrition and disease prevention. It aims to train 100 dairy farmers this year alone to improve milk production and, in turn, access to high-quality nutrition, throughout Indonesia.
"By investing in the development of Indonesian dairy farmers, we are not only improving their livelihoods but also contributing to the overall growth and sustainability of the dairy sector. We want to ensure a prosperous future for Indonesia's dairy industry by providing comprehensive training and support. Our goal is to create a thriving dairy industry that benefits farmers, consumers and the entire economy," Gardner said at the training program’s launch event.
Government goals
The U.S.-Indonesia Dairy Partnership Education Project aims to support the success of the Indonesian government’s Free Nutritious Meals program and the incorporation of school milk in that program as a key element contributing to children’s growth and overall health. The government officially launched the free meal initiative on Jan. 6, providing nourishment to more than half a million people on the opening day. It plans to expand the number of meals to three million a day by March and nearly 83 million (more than a quarter of the country’s total population) by 2029. A presidential spokesperson said that milk will be included in the program.
USDEC has positioned the U.S. as an eager partner to Indonesia on this school meals program through support of Indonesia’s own farmers and by touting the benefits of using U.S. milk powder to complement local supplies for the program.
The first classes at IBP. Trainees are learning how to access and use training modules remotely through mobile devices.
First two U.S. CDE workshops of 2025 set for February and May; facility’s reputation gaining prominence
The 2025 slate of activities at the U.S. Center for Dairy Excellence (U.S. CDE) in Singapore is taking shape as the facility’s reputation as a U.S. dairy insights hub continues to climb. The first two ingredient workshops of the year are set for February and May and not only offer an opportunity for USDEC member participation but also exemplify how the work being done at the U.S. CDE is gaining the attention of the dairy world.
Workshop summary
The inaugural 2025 workshop takes place Feb. 25-26 and will focus on innovating protein-powered sweet treats. Targeting food and beverage formulators, it will delve into Southeast Asia-friendly usage opportunities for U.S. whey and milk protein ingredients to elevate the protein content of bakery and confectionery applications, catering to the demands of health-conscious consumers. It will also highlight the unique benefits of permeate to support sodium-reduced, better-for-you sweet snacks that resonate with the discerning tastes of the region.
The second ingredient training workshop will take place May 7-8 with a focus on active, healthy aging. With a mixed audience of food and beverage companies and health professionals, this workshop will spotlight how U.S. dairy proteins can be used to support protein consumption throughout the day in everyday health and wellness-centric foods and beverages. At the same time, presenters will share the science on the nutritional benefits of dairy proteins to help reduce sarcopenia risk, support weight management and more.
Special presenter
The workshops will feature, among other activities and speakers, Siew Guan Lee, associate extension professor with the University of Idaho and a registered dietitian. Lee, who is taking a sabbatical in Singapore during the first half of this year, inquired about participating in U.S. CDE activities after visiting the facility as a member of the Idaho governor’s trade mission to Singapore and Taiwan in 2022. Lee’s desire to collaborate with the U.S. CDE is a testament to its growing recognition as a useful, growing dairy authority and constructive force for innovative dairy insights in the region.
She will be working one day per week at the U.S. CDE assisting with USDEC ingredients and marketing programming. Lee said she hopes to gain knowledge of dairy innovation and nutrition and build relationships with academics and organizations to investigate potential collaborations in research, education or programs to promote health and wellbeing. She will speak at both workshops to share what formulators should consider from a nutritional vantage point when innovating sweet snacks/heathy active aging products that meet Southeast Asian consumer needs and how dairy protein can help.
Lee will also assist in hosting a delegation of nutrition and food science students from the University of Idaho (UI) that will be visiting Singapore in March.
Lee’s program focus in Idaho is community-based nutrition education and health promotion, including food safety, food security and food access, and she has partnered with Dairy West in the past. She also administers the federally funded UI Extension Eat Smart Idaho program for south central Idaho.
USDEC members interested in more information or participating in the workshops should contact Suzanna Stohr at sstohr@usdec.org or Kristi Saitama at ksaitama@usdec.org. Limited space is available for in-person networking opportunities with workshop attendees on Day 2 of both events.
Senators call on USTR for greater transparency and consultation
A bipartisan group of 18 U.S. senators co-signed a letter to President Biden expressing “significant concerns” with the USTR’s lack of transparency and consultation in efforts to negotiate binding interpretations of congressionally approved trade agreements. The USTR’s office is currently pursuing substantive changes to existing agreements on an abbreviated timeline, out of view of the public and without meaningful consultation with either Congress or the U.S. stakeholders who would be directly affected by its actions, the letter states.
USTR is moving forward on new text for both the U.S.-Colombia trade agreement and the U.S.-Mexico-Canada Agreement without consulting Congress or stakeholders, and is reportedly set to propose similar text for the Dominican Republic-Central America Free Trade Agreement, the letter notes. That text would have the most impact on U.S. companies and may be viewed by our trading partners as a benefit to them.
“We question why USTR has not attempted to leverage this dynamic to secure wins for the United States on our offensive trade issues with the countries in question,” the senators write. The letter specifically cites U.S. concerns with dairy market access in Colombia as one of the outstanding trade issues.
USDEC and NMPF worked to gather congressional support for the letter.
Letter supports Rollins as next USDA secretary
A group of 427 U.S. agricultural organizations, including USDEC and NMPF, sent a letter to the Senate Agriculture Committee urging the committee and the entire U.S. Senate to promptly confirm Brooke Rollins as the next Secretary of Agriculture. The letter cites Rollins’ farm background, including a degree from Texas A&M in agricultural development. She also served as deputy general counsel and policy director for former Texas Governor Rick Perry and championed rural priorities across the federal government during President Trump’s first term as director of the United States Domestic Policy Council.
“Her close working relationship with incoming President Trump will ensure that agriculture and rural America have a prominent and influential voice at the table when critical decisions are made in the White House,” the letter states.
USDEC members receive discounted access to Trade Data Monitor
One of the perks of USDEC membership is discounted access to Trade Data Monitor (TDM), which reports official import/export trade data from over 125 countries. The platform provides insights into values, quantities and average unit values on dairy products and livestock (as well as other agricultural trade flows), and it is updated regularly with inputs from government sources worldwide.
TDM’s tools and assistance allow users to:
- Analyze supply chains for strategic opportunities.
- Identify new export demands and mitigate risks in global markets.
- Forecast market trends and assess how world events—such as tariffs, sanctions, or global conflicts—impact trade.
Customized training from TDM representatives is available on demand. USDEC members enjoy discounted rates for TDM access. Contact Jade Wolanin at jwolanin@tradedatamonitor.com or 202-981-1263 to request a demo and discuss pricing. Mention USDEC membership to unlock the discount.
Market Summary
EU27+UK milk output ramps up
With farmgate prices improved and bluetongue in the rearview mirror for now, EU27+UK milk deliveries are starting to take off. Year-over-year (YOY) November production grew 1.9%—the largest YOY increase in more than five years (adjusting for February Leap Days).
EU27+UK milk producers have been benefitting from strong and rising average farmgate prices, which increased for the sixth straight month in November (+3%) and are estimated to have risen again in December. While still short of all-time highs set in late 2022, prices are well above historical averages while energy and feed costs are well down from the previous year.
Ireland, which saw deliveries rise 14.8% in October, performed even better in November, with production up 33.6% (although both months were up against poor 2023 performances). YOY French deliveries increased 1.8% in November; Polish output rose 3.9% and the UK posted 5.4% growth. Of the major producers, Germany (-1.9%), Italy (-1.2%) and the Netherlands (-0.4%) recorded declines.
Moving forward, most signs point to continued growth for now, although headwinds could develop quickly (see below).
EU faces FMD concerns
Late last week, German authorities confirmed the country’s first cases of foot-and-mouth disease (FMD) in nearly 40 years. A herd of water buffalo on the outskirts of Berlin tested positive for the virus.
The government set up a 10km monitoring zone around the farm and is testing all susceptible animals within 3km. No products or animals may be taken out of those zones. Initial testing found no additional cases. Authorities culled the buffalo herd and more than 200 animals at nearby farms as a precaution and are investigating how the identified animals became infected.
The finding was already having repercussions at press time.
- Germany lost its status as “free of FMD without vaccination” from the World Organisation for Animal Health.
- The Netherlands suspended operations at 125 farms that imported calves from Brandenburg state over the past few weeks. It issued an order that no calves can be transported within the country, irrespective of their origin—unless being transferred to a slaughterhouse.
- The UK banned imports of German dairy products; cattle, pig and sheep; and meats products from those animals.
- South Korea banned imports of German pork. (Reuters, 1/14/25, 1/10/25; Dairy Industries, 1/14/25; Dairy Global, 1/13/25)
Company News
Brazil’s Pirancanjuba plans new mixed-use dairy plant
Brazilian dairy processor Pirancanjuba Group is building a new R$612 million (about US$101 million) multi-use dairy plant in São Jorge d’Oeste, Paraná state. The plant will produce up to 39,400 MT of mozzarella, 7,900 MT of butter, 6,000 MT of whey protein and 14,800 MT of lactose annually, the company says. Originally proposed in 2018, the plant has since grown in scope and cost. Pirancanjuba expects to begin operations by the end of 2025. (Valor International, 1/14/25)
Ornua plans to close U.K. cheese manufacturing facility
Following a “comprehensive strategic review of its manufacturing footprint,” UK-based Ornua Ingredients Europe (OIE) announced a proposal to close its Ledbury cheese manufacturing and cut-and-wrap facility. The site, which produces natural and processed cheeses for the food manufacturing, foodservice and global quick service restaurants sectors, has six production lines. If the proposal proceeds, the facility is expected to close at the end of June, and the majority of production will be transferred to OIE’s sites in Nantwich, Cheshire and Avila, Spain. (Agriland, 1/8/25)
Lactalis to close Zambia factory, switch to import model
French dairy company Lactalis has reportedly decided to close a factory in Zambia and begin exporting products from South Africa into Zambia. According to a Zambian government official, the company said the decision was prompted by market dynamics and influenced by new players in the milk industry. The switch to an import model is expected to take place in April. (Just Food, 1/10/25)
Company Briefs
Yum Brands terminated its franchisee IS Gida, which operated more than 500 Pizza Hut and KFC stores in Turkey, for “failure to meet Yum Brands standards.” Yum expects the stores to close “at least temporarily.” .... French biotech company Standing Ovation, which specializes in precision fermentation applied to dairy proteins, announced a long-term strategic partnership with Ajinomoto Foods Europe (AFE) to produce fermentation-enabled caseins designed to deliver traditional dairy proteins’ functional properties at AFE’s biomanufacturing plant in Nesle, France. (Food Ingredients First, 1/9/25; Restaurant Business, 1/8/25)
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