• U.S., China tariff pause

• New facility registration requirement for China feed-use products

• Changes to Colombian import permit and certificate enforcement

• U.S. CDE workshop highlights dairy ingredients for healthy aging

• Harden, Nyman join USDA Hong Kong ag trade mission

• Member benefit: new whey ingredient dashboard 

• Welcome new member ICMC

• USDEC 2025 events calendar

• Market Summary: EU milk deliveries lagging

• FMD on the rise in the Middle East

• Supply chain questions remain

• Nestlé announces new “deep tech” center

• Company briefs: Gay Lea, Danone, Royal A-ware, Valio

U.S., China agree to 90-day pause on some tariffs
The United States and China eased trade tensions at least temporarily by agreeing to reduce certain tariffs imposed by each country in April. Each country slashed tariffs to levels close to where they were before President Donald Trump announced the U.S. “reciprocal tariff” plan on April 2.

China subsequently issued a regulatory announcement that the tariff pause officially went into place on May 14, and would last for 90 days after that date. Because the Chinese announcement does not include an end date, USDEC is calculating it to be 12:00 PM on August 12. (USDA also released a GAIN report updating the tariff rate developments.)

USDEC issued a Member Alert on May 14 regarding the regulatory announcement, which followed a May 12 Member Alert detailing how the changes will affect retaliatory tariffs on U.S. dairy products. With the pause in effect, retaliatory tariffs on U.S. dairy products now range from 10%-20%.

• The following tariff codes are subject to effective tariff rates of the Most Favored Nation (MFN) rate plus a cumulative 20% retaliation, as well as the 2019 Section 301 additional tariff rates if no waiver is obtained: 04011000, 04012000, 04014000, 04015000, 04021000, 04022100, 04022900, 04029100, 04029900, 04032010, 04032090, 04039000, 04049000, 04051000, 04052000, 04059000, 04061000, 04062000, 04063000, 04064000, 04069000, 21050000, 35011000, 35019000, 35022000.
  
  
• The remainder of dairy tariff codes are now subject to the MFN rate plus 10% retaliatory tariffs, as well as the 2019 Section 301 additional tariff rates if no waiver is obtained. This includes whey products of 04041000.

China and the U.S. each said that they planned to continue talks toward a longer-lasting deal while the 90-day pause is in effect. U.S. Treasury Secretary Scott Bessent said there is a chance to extend the truce further as long as there is “good faith effort, engagement and constructive dialogue.”

China’s Ministry of Commerce said the agreement was “in the interests of both countries and the common interests of the world.” Bessent stated that the U.S. and China “concluded that we have a shared interest” and both sides agreed “we do not want a generalized decoupling.”

Additional information about the status of tariffs country-by-country can be found here in USDEC’s Tariff Tracker. Please contact Tony Rice (trice@usdec.org) with any questions. (USDEC staff; New York Times, 5/12/25; Bloomberg, 5/12/25; Supply Chain Dive, 5/12/25)

China requires new facility registration for “Single-Ingredient Dairy Product for Feed Use”
As noted in a USDEC May 9 Member Alert, the General Administration of Customs of China (GACC) requires facilities exporting “Single-Ingredient Dairy Product for Feed Use” to register with the Department of Animal Plant Quarantine (DAPQ). Companies must complete the new registration even if their facility is currently registered.

Registration involves filling out the DAPQ template spreadsheet and sending it to USDEC’s Eddy Fetzer (efetzer@usdec.org) along with a Chinese Ministry of Agriculture and Rural Affairs exemption letter. The exemption letter requirement has not changed.

USDEC provided instructions on filling out the DAPQ template spreadsheet and more information on the exemption letter in the May 9 Member Alert. For questions, please contact Eddy Fetzer (efetzer@usdec.org) or go to Volume 2 of the USDEC Export Guide and look under the China link at the Feed Requirements section.

Changes to Colombian import permit and certificate enforcement
Starting tomorrow, May 17, 2025, the Colombian Institute of Agriculture (ICA) will no longer allow updates to import permits after products have left the U.S. Shipments with modifications to their import permits after the product departs from the U.S. could result in detainment or rejection. For more information see this FAS GAIN Report.

As of May 19, the AMS Dairy Export Team will begin enforcing a date of departure requirement on all Colombian certificates in response to this new requirement. All certificates to Colombia going forward must be issued by or before the date the consignment leaves U.S. soil. Please reach out to dairyexportsquestions@usda.gov for any questions about the upcoming enforcement changes.

For additional information on Colombia's import requirements, please visit see Volume 2 of the USDEC Export Guide under the Colombia link or contact Oscar Ferrara at oferrara@usdec.org.

U.S. CDE workshop inspires healthy aging attention and action
USDEC’s second ingredient innovation workshop of the year at the U.S. Center for Dairy Excellence (U.S. CDE) in Singapore attracted 24 food and beverage formulators and nutrition professionals from Thailand and Singapore (primarily) but also Indonesia and Malaysia. Themed “Nurturing Active Aging with U.S. Dairy Proteins,” it was USDEC’s first U.S. CDE innovation workshop centered on a specific nutritional/life stage, in contrast to prior events that centered on specific product application categories, such as snacks, beverages and bakery.

Martin Teo, senior director of food applications and innovation, USDEC Southeast Asia, led the workshop, supported by a team of food scientists and marketing and insights colleagues. Speakers positioned the United States’ broad dairy ingredients portfolio as a key to finding nutritional solutions to help consumers age well and avoid frailty, extending not just their lifespans but their “health-spans.”

USDEC Southeast Asia office staff and attendees (R&D formulators and nutrition professionals from Southeast Asian food and beverage makers) from last week’s healthy-aging workshop held at the U.S. CDE in Singapore.

Martin Teo reviews how U.S. dairy ingredients can help companies create innovative, Southeast Asia-friendly food and beverage products that further consumer desires to live fit, active lifestyles as they age.

Key workshop sessions included:

• Teo reviewed the composition, functional and sensory attributes, and end-use applications for U.S. dairy proteins (whey, milk and casein) and other dairy ingredients. With Thailand and Singapore’s populations rapidly aging, he highlighted opportunities to harness the advantages of U.S.-origin dairy proteins to develop health and wellness products positioned for older adults and seniors. He also led the product prototype innovation showcase and a commercial product display of healthy, active-aging products, reinforcing untapped potential to innovate convenient Southeast Asia-friendly products that fit local consumers’ health and lifestyle needs.
  
  
• Anoo Pothen, vice president, strategic insights for USDEC, explored the consumer journey of healthy aging in Southeast Asia, including their food choices and behaviors, their worries and struggles as they age, and their awareness and attitudes about protein. About 88% of surveyed Southeast Asian consumers believe they must change their current lifestyles to better prepare for aging, with 82% believing they can prevent their health from deteriorating with age.
  
  
• Siew Guan Lee, registered dietitian and Extension Educator for the University of Idaho-Twin Falls (who is spending part of her sabbatical at the U.S. CDE), relayed the significance of protein quality on nutrition, with a focus on dairy protein’s ability to mitigate the risks and debilitating effects of sarcopenia, the age-related gradual loss of skeletal muscle mass and function.
  
  
• Kalapana Bhaskaran, deputy director, Industry Partnerships and head of the Glycemic Index Research Unit at Temasek Polytechnic in Singapore, explained how optimizing nutrition (including quality protein consumption) can help address chronic conditions like Type 2 diabetes, sarcopenia and dysphagia, which are concerns for the region’s older adults and seniors.
  
  
• Jamie Lee, senior program manager, USDEC Southeast Asia, introduced USDEC’s mission and role as an organization, as well as the unique supply advantages of sourcing dairy ingredients from the United States.
  
  
• Two Takasago representatives tag-teamed on a presentation and product tasting, discussing flavors and taste considerations for older adults and seniors.
  
  
• Participants split into breakout groups to ideate new U.S. dairy protein-fortified product concepts targeting older adults and seniors.
  
  
• Two USDEC member companies delivered virtual (video) presentations highlighting the unique functional attributes and specifications of their healthy-aging-friendly dairy ingredients.
  
  
• In-person, one-on-one tabletop and dialogue interaction time between the participants and representatives of four USDEC member companies strengthened connections, paving the way for U.S. dairy export expansion.

One of the breakout groups from the new product ideation session explains their concept: Golden Gain Porridge, a protein-boosted breakfast item made with milk protein isolate for a nutritious way to start the day.

“This workshop brought together nutrition science, product innovation and collaboration in an inspiring and interactive event, showcasing how U.S. dairy proteins and ingredients can be a cornerstone of mobility and muscle strength in later life,” said Teo. “The product ideation brainstorming session was a highlight of the event, and the concepts the participants developed were exciting and had promising market potential.”

Participants praised the event as well, citing insights and inspiration gained on dairy ingredients in healthy-aging-centric applications. One of the participants, June Liew, head of Food Design & Capability Development at SATS Catering Pte in Singapore, posted on LinkedIn, saying, “A privilege to be invited to such a well-organized, insightful and inspiring workshop—learning the various proteins derived from milk and their broad range of functional applications. Learning is one thing—but tasting brings to life! Innovation fills the room, with some products truly blowing my mind.”

Harden and Nyman join USDA ag mission to Hong Kong
At the tail end of their mission to Malaysia and the Philippines (see Global Dairy eBrief, 5/9/25), USDEC President and CEO Krysta Harden and Chair Becky Nyman linked up with the USDA Agricultural Trade Mission to Hong Kong.

FAS Acting Associate Administrator Mark Slupek led the trade mission, which included a market briefing from FAS staff, networking opportunities, and visits to local retailers and the City University of Hong Kong dairy farm. In addition to Harden and Nyman, representatives from USDEC members, the Wisconsin Department of Agriculture and Consumer Protection and the Idaho State Department of Agriculture, also participated.

The Hong Kong leg of the mission, as well as the Malaysia and Philippines stops, were multi-faceted—aimed at gathering insights, building relationships with existing and potential customers, and reinforcing the U.S. commitment and capacity to serve overseas markets.

The Hong Kong USDA trade mission drew a large group of participants from U.S. food and ag suppliers, organizations and U.S. departments of agriculture.

Nyman and Harden at the Hong Kong plenary session and market briefing.

New dashboard: whey ingredient applications and global usage
A new members-only dashboard is now available, making it easier to engage with existing USDEC Whey Usage Segmentation data in a more interactive, user-friendly format. While the data is not new, the dashboard enables deeper exploration of whey ingredient production, consumption and end-use applications across 16 international markets.

This proprietary dataset provides a clearer picture of how whey is used in various markets. It includes data from 2016, 2021 and 2022, along with forecasts through 2027, designed to help members evaluate market potential and identify growth opportunities.

Note: The next data refresh will occur in fall 2025, extending forecasts through 2030.

View the new dashboard here.

USDEC welcomes Indiana Corn Marketing Council
In April, USDEC approved the Indiana Corn Marketing Council (ICMC) as a new allied member. ICMC, a statewide checkoff organization that serves the state’s corn producers, is a strong supporter of the Indiana dairy community, sponsor of Indiana Dairy Producers and collaborator with the American Dairy Association of Indiana. The organization is looking to expand its partnership with and support of the dairy industry through its USDEC membership. Maggie Hancock, market development project manager, will serve as USDEC director. Welcome to USDEC!

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 May 16 and will evolve as new opportunities develop, funding is finalized, or unexpected changes arise.

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
• Health Care Expo, Taipei, Taiwan, July 24-27
• Expo IAlimentos, Colombia, July 30-31, 2025

AUGUST

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

SEPTEMBER

• U.S. Dairy Supply Seminar, Sept. 11, Ho Chi Minh City, Vietnam
• U.S. Dairy Supply and Innovation Seminar, Thailand, Sept. 15, 2025
• Food Ingredients Asia, Thailand, Sept. 17-19, 2025
• U.S. Dairy Protein Innovation Seminar, Taipei, Taiwan, Sept. 30
• Espacio Food and Service, Chile, Sept. 30-Oct. 2, 2025

OCTOBER

• U.S. Dairy Innovation Seminar, Oct. 2, Ho Chi Minh City, Vietnam
• 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
• U.S. Dairy Protein Nutrition Seminar, Nov. 4, São Paulo, Brazil
• Gulfood Manufacturing, Dubai, UAE, Nov. 4-6, 2025 
• COP30, Brazil, Nov. 10-21, 2025
• Beverage Innovation Workshop, Singapore, Nov. 12-13, 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

EU27 milk production down again in March
EU27 milk deliveries are on the verge of posting three straight year-over-year (YOY) monthly milk production declines. With all states except Spain reporting, March output was down by 0.8%. That follows shortfalls of 0.5% in January and 2.2% in February (all numbers adjusted for leap year). With Spain’s numbers still outstanding, total EU milk production was down about 3% from the first three months of 2024.

The bloc’s two largest producers—Germany and France—had particularly poor first quarters, with deliveries down 2.7% and 2.3%, respectively. But the Netherlands and Italy (-1.8% and -1.9%) are also well behind the previous year. Of the five major producers, only Poland saw milk production rise in the first quarter and that was by less than 0.3%.

By contrast, milk production from former EU member, the UK, is on a roll, with YOY volume rising for the seventh straight month in March. First-quarter volume, adjusted for leap year, increased 3.4%. Irish first-quarter milk deliveries also recorded solid growth, rising by 7.5%, but that number is inflated by low production throughout the first half of 2024.

EU27 farmgate milk prices remain elevated, but have been alternating between rising and falling for the past five months. While there have been reports that output was improving heading into the spring flush, foot-and-mouth concerns continue to loom over Hungary, Slovakia and Austria, and warmer weather conducive to a resurgence of Bluetongue is around the corner.

FAO urges action as FMD outbreaks spread in Near East
The UN’s Food and Agriculture Organization (FAO) issued an alert recommending “urgent biosecurity measures and enhanced surveillance” following the recent detection of foot-and-mouth disease (FMD) serotype SAT1 in Iraq and Bahrain. FMD is endemic in the Near East, but the agency said because this serotype is not typically found in the region, it raises “serious concerns” about its potential spread. The alert emphasized that many strains of the FMD virus continue to circulate in different parts of the world, and the recent outbreaks in both Europe and the Near East highlight the ongoing risk the disease poses to livelihoods, food security and safe trade.

Meanwhile, authorities in Dubai confirmed that a severe outbreak of FMD in Kuwait has affected more than 8,000 cows over the past month, leading to a 75% drop in fresh milk production. A reported 31 of Kuwait’s 44 cow farms have reported FMD cases. Vaccines to contain the outbreak are expected to arrive within two weeks. In the meantime, farm workers are being urged to follow sanitation protocols, including sterilizing milking equipment and tools, and take preventive measures to curb further spread. (Gulf News, 5/9/25; United Nations News, 5/5/25)

  

U.S.-China tariff pause brings port, carrier uncertainty
Trade experts almost immediately began debating the impact of the U.S.-China tariff pause on the supply chain. Prior to the temporary pause, there was growing concern that the ongoing tariff actions could lead to container shortages, cargo backups, scheduling nightmares, higher costs, delayed shipments and other pandemic-era supply chain disruptions through the remainder of this year.

The tariff pause is likely to stem the decline in cargo volume at U.S. ports, but probably not for a few weeks, and the extent of any rebound remains uncertain. Some logistics companies said they expected a surge in inbound cargo in the next four-to-six weeks, mirroring the front-loading companies were doing prior to the April tariff escalation.

But Gene Seroka, executive director at the Port of Los Angeles, does not expect a surge, pointing out that the tariffs that remain on Chinese goods (even after the pause) will temper orders. Others point to damage already done to the supply chain and changes already made by stakeholders to compensate, such as carriers slashing China-U.S. container shipping capacity and redeploying it onto other trades. It could take months to unwind current shipping disruptions, they contend.

USDEC continues to monitor supply chain challenges and engage as needed with authorities and policymakers. We welcome input from members on what they are experiencing in the market. Please contact Tony Rice at trice@usdec.org with any information. (CNN, 5/14/25; CNBC, 5/12/25; New York Times, 5/12/25)

  

Nestlé announces new deep tech center that will bolster nutrition solutions
Switzerland-based Nestlé announced the creation of a new center for “deep tech” that will screen, test and develop new generations of sensors, robots, coding systems, high-performing AI and virtual/mixed reality solutions “to increase efficiency in research, innovation and operations.” The company said the resulting enhanced R&D expertise will lead to new nutritional solutions that will bolster Nestlé’s consumer-centric innovation pipelines for maternal, early life and medical nutrition, and support new growth platforms such as healthy longevity, women’s health and weight management. The center will open in the first half of 2026 at the existing facilities of the Nestlé System Technology Center in Orbe, Switzerland. (Company reports)

Mergers, acquisitions and joint ventures
Canadian dairy co-operative Gay Lea Foods completed the sale of Notre Dame Creamery in Manitoba to local peer Fromagerie Chaeban Ltd. The creamery, which is known for producing “high-quality, conventionally churned” butter in small batches, will remain in operation at its current location. … France-based Danone agreed to acquire a majority stake in California-based Kate Farms, a plant-based and organic nutrition brand that produces a range of everyday and specialized nutrition products, including children’s drinks and medical nutrition shakes. Following the closing of the transaction, which is subject to regulatory approvals, Kate Farms’ CEO, Brett Matthews, will serve as chairman and CEO of Danone’s North America medical nutrition business. (Company reports)

Company briefs
Chinese dairy beverage maker Liziyuan is spending $44 million on a new processing facility in the Ningxia Autonomous Region. The plant, which the company expects to complete in December 2025, will make WMP, SMP, condensed milk, whipped cream and cheese. … Dutch food company Royal A-ware said it will close a Belgian dairy factory operated by its subsidiary Olympia, which became part of Royal A-aware Food Group in 2022. Despite efforts to increase efficiency at the plant—which is located in Herne and produces cream, oatmeal desserts and other puddings, yogurt, milk and chocolate milk—A-ware said, “too many of the installations and infrastructure are so outdated that complete new construction is needed.” … As part of its efforts to gradually move production from its Vantaa plant to Joensuu, Finnish dairy and food company Valio is investing roughly €30 million (about US$33 million) in a new cheese maturation warehouse to be built at the Joensuu production plant. The project, which includes constructing a new, automated maturation warehouse and upgrading existing facilities to support the move, is expected to be complete by 2027. … U.S. burger chain Shake Shack signed a licensing deal with Panama’s Grupo Attie-Multifood Enterprises that will see Attie-Multifood open 12 Shake Shack restaurants over the next 10 years. Shake Shack has more than 210 international units, all of which are run through licensing agreements. … New Zealand sheep milk processor Maui Food Group signed a deal with China’s Mengniu Dairy to supply sheep milk to China. (USDEC China office; Company reports; Restaurant Business, 5/13/25)

 

• Harden, Nyman attend USDA-led trade mission to Hong Kong
• Learning more about dairy processing in Malaysia
• A meeting with U.S. Ambassador to Malaysia Edgard Kagan
• A productive discussion with Embassy and FAS representatives in the Philippines
• Meeting with food company in the Philippines sheds light on importance of U.S. dairy ingredients