• Seeking opportunity in reciprocal tariffs

• EU retaliates after metal tariffs

• USDEC at FEPALE

• EU uses AI for new tactic to monopolize common names

• Senate letter seeks administration action on Canadian dairy obligations

• Letter supports Lindberg USDA nomination

• Your chance to meet one-on-one with overseas reps

• Register now to meet one-on-one with overseas reps

• USDEC Excellence in Exports nominations extended one week

• Cheese opportunity! USDEC backing awards entries

• U.S. dairy primed for March Central America missions

• Member opportunity: Gulfood Manufacturing

• USDEC 2025 activity list

• Market Summary: Europe faces second FMD threat

• Market briefs: EU farmgate pieces; Irish nitrogen derogation; China’s economic challenge

• Saputo finds buyer for King Island

• Fonterra management changes

• Company news: Al Rabie, Tetra Pak, Paris Baguette, Lifeway

USDEC files comments on unfair trade practices for Fair and Reciprocal and Plan on tariffs
USDEC and NMPF submitted joint comments (16 pages) in response to the information-gathering stage of the Trump Administration’s Fair and Reciprocal Plan on tariffs. The plan, announced in February (see Global Dairy eBrief, 2/14/25), seeks to “correct longstanding imbalances in international trade and ensure fairness across the board.”

The comments highlight the importance of international trade to the U.S. dairy sector before outlining the major unfair tariff and nontariff barriers that currently complicate and restrain U.S. dairy trade. The comments make clear that U.S. trade engagement with most dairy trading partners has a generally positive and productive track record. USDEC and NMPF urged the administration to use the Fair and Reciprocal Plan review process “to enter into negotiations with those countries to secure agreements that result in mutual benefits and improved opportunities for U.S. dairy exporters.”

The biggest exception to that collaborative approach is the EU.

“The U.S. has a decades-long track record of attempting to engage productively and positively with the EU on agricultural issues,” the comments state. This has only resulted in soaring U.S. agricultural trade deficits with the bloc. “This dynamic of an open U.S. market to EU products and a tightly-sheltered EU market for U.S. products must fundamentally change,” the comments note.

As one of the examples of these barriers, USDEC and NMPF highlight the EU’s misuse of geographical indications to monopolize common food names as a major unfair trade practice affecting U.S. dairy exports that has gone global through the bloc’s third-party trade negotiations. (A second set of comments (five pages) submitted on behalf of USDEC, NMPF and the Consortium for Common Food Names goes into detail on how the EU “has weaponized trade rules for geographical indications (GIs) around the world to promote European agricultural products and foodstuffs, at the expense of U.S. and non-EU competitors.”)

The 16-page document also provides a country-by-country breakdown of priority bilateral dairy trade measures with 21 countries or regions, including Canada, China, the EU and India.

The comments will feed into the reports U.S. government agencies are preparing for the president that are due by April 1, setting the stage for the U.S. to take action on the Fair and Reciprocal Plan as early as April 2.

EU, Canada retaliate after U.S. metal tariffs
The Trump Administration increased tariffs on all U.S. steel and aluminum imports to 25% effective this past Wednesday. The EU and Canada responded immediately by announcing retaliatory tariffs. The EU’s action is poised to impact U.S. dairy exports while Canada’s response does not.

The EU is targeting €34 billion worth of American goods in two tranches: 1) a set of tariffs that does not include dairy and will take effect on April 1; and 2) a set issued for public comment this week that does include several dairy tariff codes and is expected to take effect in mid-April. USDEC released a Member Alert on March 12 with further details on the EU tariffs.

The list of affected HS Codes under the second EU wave includes all codes under 0401, 0402, 0403, 0404, 0405, 0406.20, 0406.30, 0406.40, 1901.90.99, 2105 and 2202.99.91, 2202.99.95 and 2202.99.99. About two-thirds of the $167 million in U.S. dairy exports to the EU last year fell under two tariff codes NOT currently on the list; certain other notable tariff codes for U.S. exports are also excluded.

Separately, Canada implemented a 25% tariff on $20 billion in U.S. goods effective Thursday. Those tariffs do not include dairy and instead focus on products such as steel, aluminum, computers, sports equipment and cast-iron products. Other major steel and aluminum suppliers—including China, Japan, South Korea, Australia and the UK—have so far refrained from retaliation as of the date of this publication.

For questions on U.S. tariff actions or trading partner retaliatory actions, please contact the USDEC Trade Policy team: Jaime Castaneda (jcastaneda@usdec.org), Shawna Morris (smorris@usdec.org) or Tony Rice (trice@usdec.org). For questions related to changes to Volume 1 of the USDEC Export Guide, please contact Bryan Jacoby (bjacoby@usdec.org). (USDEC staff; CNBC, 3/12/25; Reuters, 3/12/25)

USDEC leadership recognized in Latin American dairy sector at FEPALE meeting
Last week, USDEC participated in the Pan American Dairy Federation's (FEPALE) Board of Directors meeting Monterrey, Mexico, to reinforce dairy ties across the region. Against the current backdrop of uneasy trade relations and tariff threats, USDEC Executive Vice President Jaime Castaneda highlighted new and continuing opportunities for USDEC and FEPALE members to work together to promote dairy consumption and trade throughout the Americas.

FEPALE has been a strong partner to U.S. dairy, advocating for pro-trade and science-based policies on behalf of dairy farmers and organizations. Castaneda, who currently serves as FEPALE’s vice chair, praised the organization’s ongoing efforts to protect the dairy industry from unjust attacks concerning nutrition and sustainability.

Castaneda also used the event as an opportunity to meet on the sidelines with key Mexican farm representatives, processors and importers who were invited to participate. Talks centered on tariffs and other challenges that the U.S. and Mexican dairy industries will need to overcome in the coming months and years. Castaneda met with Ricardo Villavicencio, president of Canilec (the Mexican association of processors and importers), and Sergio Soltero, secretary of the National Confederation of Livestock Organizations (also known as CNOG), to emphasize Mexico’s position as a critical partner for the U.S. dairy industry.

EU uses AI for common name threats
The Consortium for Common Food Names (CCFN) has become aware of a new tactic being employed by certain EU trade organizations to advance the bloc’s aggressive efforts to monopolize common food names. Some U.S. cheesemakers have received enforcement demands that appear to be AI-generated, with no human oversight and without consideration for geography of the cheese names claimed to be protected.

CCFN, which was founded and is staffed by USDEC, reminds U.S. cheesemakers that protections for certain terms in Europe simply do not extend to the United States and many other countries. CCFN called the warnings “scare tactics” that should either be ignored or rejected.

If any USDEC member receives such demands for any product, please send it to CCFN’s Tony Rice at trice@CommonFoodNames.com. The notifications may come directly from an overseas trade organization or brand enforcement agency such as Griffeshield or EBRAND or may take the form of a take-down notice sent directly to an online retailer. CCFN will gather the threats to keep the U.S. government abreast of the problem and assess legal action.

Senators call for action on Canada’s USMCA shortcomings
Senators Tammy Baldwin (D-WI), Roger Marshall (R-KS), Amy Klobuchar (D-MN), and Joni Ernst (R-IA) sent a letter to USDA Secretary Brooke Rollins, USTR Jamieson Greer and Commerce Secretary Howard Lutnick urging the administration to address Canada’s ongoing, long-standing efforts to evade its U.S.-Mexico-Canada Agreement (USMCA) obligations. The letter specifically pointed to Canada’s USMCA tariff rate quota (TRQ) allocation process designed to minimize fill rates and its use of a loophole to ship excessive quantities of dairy proteins at artificially low prices.  

“Canada is not fulfilling their commitments under [USMCA],” they wrote. “In upcoming negotiations with your Canadian counterparts, particularly those regarding USMCA, we ask that you address these longstanding issues that harm the United States’ ability to export dairy products.”

USDEC consulted with Sen. Baldwin’s office on the letter’s language and reached out to other Senate offices to encourage support.

Letter supports Lindberg nomination
USDEC and NMPF organized an ag coalition letter supporting the nomination of Luke Lindberg as USDA Under Secretary for Trade and Foreign Agricultural Affairs. The letters, which went to the chair and ranking member of the Senate Agriculture, Nutrition and Forestry Committee, urged his prompt confirmation.

The letter was signed by more than 120 U.S. agriculture groups and stakeholders, including USDEC and many of its members. It highlights Lindberg’s career as a proponent of using trade to strengthen U.S. agriculture and his enthusiasm for tackling the record agricultural trade deficit currently facing the United States. Lindberg, president and CEO of South Dakota Trade, also has a close working relationship with USDA Secretary Brooke Rollins and, by extension, President Trump, ensuring that “agricultural trade is prioritized as USDA and the White House continue to craft their policy agendas.”

“U.S. agriculture needs a dedicated champion in this role to support farmers and exporters as we continue to nourish the world with the most secure, affordable and nutritious food on the globe,” the letter states.

Your chance to meet one-on-one with overseas office reps
USDEC Representative Offices from eight markets will be available to meet with members before and after the general session of the USDEC Annual Membership Meeting on Monday, April 7 and Wednesday, April 9. Members must register to reserve a time. To register, please follow this link. For questions, please contact Nuhami Alemu (nalemu@usdec.org). For more information on the USDEC Annual Membership meeting, including links to register and download the draft agenda, click here.

USDEC extends Excellence in Exports Awards nomination deadline by one week
USDEC has extended the nomination period for the inaugural USDEC Excellence in Exports (ExEx) Awards until March 21. Don’t miss your chance to be recognized in one of two awards categories: Excellence in Exports and Excellence in Innovation. If you have any questions about the nominating procedure or filling out the nomination forms, please contact Tom Quaife at tquaife@usdec.org.

The awards ceremony will take place April 8 at the USDEC Annual Members Meeting at the Willard InterContinental Hotel in Washington, D.C. For more information about the ExEx Awards, including more about the criteria for each award category, please click here.

Enter Now! USDEC assisting with entries to International Cheese and Dairy Awards
The International Cheese and Dairy Awards (ICDA) is an annual world-renowned dairy competition that takes place in the UK. USDEC is again supporting U.S. cheesemaker participation in the awards this year by covering the entry costs for U.S. cow’s milk (including mixed milk) cheeses.

This year’s ICDA is slated for June 25-26 at the Staffordshire County Showground in England. No export capabilities are necessary to participate. Please note raw milk cheeses and/or mixed raw milk cheeses are NOT allowed in ICDA 2025.

Registration closes on Wednesday, May 7, 2025, but we encourage you to register early as we may run out of limited sponsorship spots. To learn more about ICDA opportunities, please contact Nuhami Alemu (nalemu@usdec.org). We hope to have a large contingent of U.S.-produced cheeses at the show.

Central America missions, Expocomer around the corner
U.S. dairy will be converging on Central America over the next two weeks with three scheduled activities: USDEC’s Central America Supplier Mission, USDEC’s Guatemala farmer mission and the Expocomer trade show.

The supplier mission—March 16-25—will bring 28 representatives from 14 USDEC member companies for meetings in Guatemala, Costa Rica and Panama. The trip aims to expand U.S. cheese exports to the region, particularly improving penetration in the retail and foodservice channels. Day 1 in each market will include market briefings and retail tours. Day 2 will feature a cheese seminar for the local trade focused on the opportunities and advantages of sourcing from the U.S. The seminar will be followed by one-on-one meetings to connect U.S. suppliers with local buyers (44 local companies are participating).

For the farmer mission (March 16-21), five U.S. dairy farmers will visit Guatemala to meet with government officials, retailers, dairy buyers and processors, fellow milk producers, and local industry experts. The U.S. dairy farmers who attend these annual missions serve as emissaries for U.S. dairy during the trips and, afterwards at home, promote the U.S. dairy export cause with other farmers. The farmer and supplier missions will attend activities together during its Guatemala leg.

Expocomer runs from March 25-27 at the Panama Convention Center in Panama City. This year is the 40^th edition of the show, which is split into three areas, one of which is food, beverages and agriculture. USDEC will have a pavilion with meeting space for member companies to engage with potential customers and showcase their cheeses. Two USDEC member companies also will share the USDEC booth.

Watch upcoming issues of Global Dairy eBrief for post-event coverage.

Reminder: Member sign-up for 2025 Gulfood Manufacturing opens March 17
Member registration to exhibit within USDEC’s booth at Gulfood Manufacturing in Dubai UAE will open on Monday, March 17, at 11 a.m. ET. Market opportunities for U.S. dairy ingredients are on the rise across MENA and Sub-Saharan Africa and Gulfood Manufacturing is one way U.S. suppliers can help increase their prominence as a supplier to the regions.

Building on the successful November 2024 U.S. Dairy Business Trade Mission to MENA, USDEC’s booth at Gulfood Manufacturing will provide strong visibility and engagement opportunities for participating USDEC members. At the 2024 show, an estimated 45,000 visitors and 2,500 exhibitors participated, making this one of the largest ingredient-focused trade shows in the world.

The show runs from Nov. 4-6, 2025. Booth space will be available for six members. Spaces are expected to fill quickly, so please reach out as soon as possible to indicate interest. While there are no fees to exhibit at the USDEC booth, members are responsible for any travel, lodging and shipping costs.

Please contact Suzanna Stohr at sstohr@usdec.org to indicate interest in booth space. USDEC will provide interested members with an activity participation agreement form (completion and submission thereof will be required to confirm the space). Space is limited, and USDEC will confirm participation on a first-come, first-served basis.

USDEC 2025 events
For your convenience, USDEC has compiled a chronological list of dairy export-related member events currently slated for 2025. This list is effective as of March 14 and will evolve as new opportunities develop, funding is finalized, or unexpected changes arise.

MARCH

• Food Ingredients China (FIC), Shanghai, March 17-19, 2025
• Central America Supplier Mission, Guatemala, Costa Rica, Panama – March 16-25, 2025

APRIL

• USDEC Annual Membership Meeting, Washington, D.C., April 7-9, 2025
• Ingredients Advisory Group, Washington, D.C., April 9, 2025
• Cheese and Consumer Products Advisory Group, Washington D.C., April 9, 2025
• Food and Hotel Asia Tradeshow, Singapore, April 8-11, 2025

MAY

• Southeast Asia U.S. Dairy Proteins Healthy Active Aging Innovation Workshop, Singapore, May 7-8, 2025
• China Bakery Exhibition, Guangzhou, May 10, 2025
• USDA Agribusiness Trade Mission, Hong Kong, May 12-16, 2025
• China Animal Husbandry Expo (CAHE), Qingdao, May 19-21, 2025

JUNE

• USDA Agribusiness Trade Mission, Peru, June 9-12, 2025
• Seoul Food and Hotel Trade Show, Seoul, June 11-14, 2025
• International Cheese and Dairy Awards, Stafford, England, June 25-26, 2025

JULY

• USDA Agribusiness Trade Mission, Dominican Republic, July 13-16, 2025
• Expo IAlimentos, Colombia, July 30-31, 2025

AUGUST

• Food Ingredients South America, Brazil, Aug. 26-28, 2025

SEPTEMBER

• U.S. Dairy Supply and Innovation Seminar, Thailand, Sept. 15, 2025
• Food Ingredients Asia, Thailand, Sept. 17-19, 2025
• Espacio Food and Service, Chile, Sept. 30-Oct. 2, 2025

OCTOBER

• USDEC Sustainability Seminar, Singapore, Oct. 7-8, 2025
• Food Tech Summit & Expo, Mexico, Oct. 8-9, 2025
• IDF World Dairy Summit, Chile, Oct. 16-25, 2025
• Ingredients Advisory Group Tactical Plan Meeting, Chicago, Oct. 21, 2025

NOVEMBER

• USDA Agribusiness Trade Mission, Mexico, Nov. 3-6, 2025
• Gulfood Manufacturing, Dubai, UAE, Nov. 4-6, 2025 
• COP30, Brazil, Nov. 10-21, 2025
• World Cheese Awards, Bern, Switzerland, Nov. 13-15, 2025

DECEMBER

• USDA Agribusiness Trade Mission, Cote D’Ivoire, Dec. 8-11, 2025
• 4th Quarter Joint USDEC Meeting of the Cheese and Consumer Products Advisory Committee and the Trade Policy Committee Meeting, Washington, D.C., Dec. 10-11, 2025
  

 

Second FMD scare in Europe in two months; China begins accepting German dairy again
This week, authorities in Hungary detected the country’s first foot-and-mouth disease (FMD) case in 50 years. The finding comes almost exactly two months after FMD was confirmed in Germany (see Global Dairy eBrief, 1/17/25).

The disease was identified in cattle at a 1,400-head farm near the Slovakian border. Government authorities ordered immediate measures to prevent the spread of the disease, including culling the herd, an investigation of the source of infection, and a ban on the transport of live animals and their meat.

In response to the news, UK officials placed a ban on meat and dairy imports from entering the country from Hungary and Slovakia. According to a government statement, the ban includes cattle, pigs, sheep, goats and other animals, as well as “their untreated products, such as fresh meat and dairy." In addition, travelers cannot bring meat, meat products, milk and dairy products, and animal by-products of pigs and ruminants from Hungary and Slovakia into Britain.

The German outbreak, which was identified in a herd of water buffalo and has been contained, reportedly cost up to €1 billion (about US$1.1 billion) in lost exports. Last week, German authorities said China agreed that imports of heat-treated German dairy products can resume immediately, after it restricted imports of German milk and dairy products over FMD. In addition, effective March 12, the World Organisation for Animal Health accepted an application to declare all of Germany free of foot-and-mouth disease except a small containment zone around the site of the original case from January. (Reuters, 3/12/25, 3/6/25; Farmers Guardian, 3/10/25; Politico, 3/8/25; Agriland, 3/7/25)

Market condition briefs
Here is a quick rundown of recent dairy supply and demand developments from around the world:

• EU farmgate milk prices fell more than initially expected in January. Preliminary reports suggested a 0.4% decline in the average price, but that decrease is actually around -2%, with a correction in record Polish prices and sizable drops in Ireland and Lithuania. In either case, it was the first decrease in the monthly average milk price since May 2024. Preliminary estimates show February prices flat.
  
  
• Chinese leaders emphasized the government’s interest in boosting domestic consumption during the annual meeting of its parliament last week. But concrete plans to do so remain elusive. A consumer subsidy scheme focused on electric vehicles, appliances and other such household goods helped goose the economy toward the end of 2024, but its effect has waned since. China’s household spending is less than 40% of annual economic output, a number that is 20 percentage points less than the global average. Economists continue to call for structural reforms that would help make the country less reliant on investment and manufacturing exports.
  
  
• According to a survey by the Irish Creamery Suppliers’ Association, most dairy farmers will reduce their herd sizes if the EU rescinds Ireland’s nitrates derogation. Estimates of the size reductions varied by respondent, but one-fifth expected slashing dairy cow numbers from 15-24%. Another 13% said they would likely reduce herd size by 25-50%. Only 6% of farmers who took the survey expected no effect from losing the nitrates derogation. The derogation is set to expire at the end of 2025 unless the Irish government and the EU work out a plan to extend it.
  
  
• Brazil is scrapping import taxes on food items it deems “essential” to help ease food costs in the country. While dairy is not on the initial list, the country is also liberalizing a significant domestic dairy rule. Fluid milk, which was certified at the regional level for sale only in specific cities and towns, will now be able to be sold nationwide. (European Commission; Just Food, 3/7/25; Reuters, 3/5/25; Agriland, 3/4/25)

Saputo sells King Island Dairy to Australian company
After announcing last year that it planned to close its King Island Dairy operation in Australia because it couldn’t find a buyer (see Global Dairy eBrief, 9/13/24), Canadian dairy company Saputo sold the facilities and the King Island brand. The new owner, a newly formed entity called King Island Dairy 2 Pty Ltd., is led by Melbourne businessmen Nicholas Dobromilsky and Graeme Wilson. In addition to the facility and brand, the sale includes the dairy’s on-site cheese store and two local farms that provide a guaranteed milk supply. (eDairy News, 3/9/25; ABC News, 3/6/25)

Fonterra announces changes to management team
As a next step in its move to divest its consumer and associated businesses (see Global Dairy eBrief, 2/21/25), New Zealand-based dairy cooperative Fonterra announced changes to its management team. Richard Allen will lead Fonterra’s Global Ingredients business as president; Teh-han Chow will lead the co-op’s global Foodservice business as president while continuing as CEO for Greater China; and René Dedoncker’s title will change from managing director Global Markets Consumer and Foodservice to managing director Global Markets Consumer, as he leads those businesses toward divestment. (Company reports)

Danone settles lawsuit over use of plastics in France
France-based food giant Danone reached an agreement to settle a lawsuit launched by a coalition of three NGO groups claiming the company does not do enough to reduce its use of plastics in its supply chain. The suit, which was filed by ClientEarth, Surfrider Foundation Europe and Zero Waste France last year, said Danone must comply with the French duty of vigilance law, which holds large corporations to account for their environmental impact. As part of the agreement, Danone said it is “reinforcing the vigilance plan” and provided information on the actions it was taking in relation to plastic packaging use, which include “reducing, reusing, recycling, and recovering plastic packaging.” (Just Food, 2/25/25)

Mergers, acquisitions and joint ventures
Den Sociale Kapitalfond, a Danish investment firm, acquired a 60% stake in family-owned ice cream producer Hansens Is. In a statement, the new owners announced a strategy that includes expanding Hansens’ presence in the Danish market while also taking initial steps toward exports to neighboring countries. (Company reports)

Company briefs
Food processing and packaging solutions company Tetra Pak kicked off a three-year project to modernize the production facilities of Al Rabie, a Saudi producer of juices, nectars and dairy products. The project will leverage Tetra Pak’s technology to enhance the efficiency and sustainability of Al Rabie’s operations. … Abu Dhabi-based Samaya Food Investments signed a Memorandum of Understanding with Malaysian restaurant operator Berjaya Food International to bring the Paris Baguette bakery café brand to the United Arab Emirates (UAE). The collaboration aims to meet a growing demand for high-quality bakery products and premium dining experiences in the region. … Speaking of Paris Baguette, South Korea’s SPC Group, owner of the Paris Baguette name, completed a new $56-million bakery product manufacturing plant in Johor, Malaysia. The company has major expansion ambitions, aiming to operate 12,000 stores worldwide by 2030, with plans for Southeast Asia, the Middle East and the U.S. (a plant is in the works in Texas). … After threatening in January to sue Illinois-based kefir and probiotic products manufacturer Lifeway Foods (see Global Dairy eBrief, 1/10/25), Danone North America filed a lawsuit last week alleging Lifeway breached the shareholder agreement signed by the two companies in 1999. Lifeway responded by calling Danone’s actions “the latest aggressive action in Danone's campaign to execute a hostile takeover of Lifeway at a price that substantially undervalues the company,” and saying it intends to file a counterclaim. (USDEC Middle East/North Africa Office; company reports; MSN.com, 3/10/25; FoodNavigator-Asia.com, 3/10/25; Zawya, 3/5/25)

 

• Deadline extended for USDEC Excellence in Exports nominations
• International Women’s Day thoughts from USDEC CEO Krysta Harden
• 20 R&D experts from SE Asia discover the benefits of U.S. dairy powders
• USDEC congratulates Jamieson Greer on his confirmation as U.S. Trade Rep 
• USDEC congratulates Brooke Rollins on her confirmation at USDA Secretary