• Export supply chain webinar

• Egypt delays halal rules

• Omicron further complicates supply chains, travel

• U.S. dairy protein in Korean bakery treats
• Jan. 31 hotel deadline for MAG and IAG meetings

• Harden elected to 4-H chair

• Membership renewal reminder

• Market Summary: negative milk production signs from EU, NZ

• Darigold’s Ryan to retire

• Company news briefs: Fonterra, A-ware, Papa John’s

 

Don’t miss the Jan. 31 webinar to explore export supply chain solutions
On Jan. 31, Agri-Pulse will hold a free 1.5-hour webinar titled, “Digging into the ag export supply chain crisis and how to fix it.” USDEC and NMPF conceived the idea for the webinar, worked with Agri-Pulse to plan and organize the event, and are also sponsoring it. The virtual summit is part of USDEC’s ongoing efforts to communicate the impact of the crisis on U.S. dairy and seek solutions to resolve the issue now and for the long term.

The webinar will feature members of Congress, Biden Administration officials and industry speakers representing various parts of the agricultural export chain.

USDEC Executive Vice President for Policy Development and Strategy Jaime Castaneda will kick off the meeting by moderating an industry supply chain panel featuring agriculture, coastal port and trucking sector representatives. USDEC President and CEO Krysta Harden will then moderate a U.S. government panel with invited guests White House Port Envoy John Porcari, USDA Secretary Tom Vilsack, and members of Congress. There will be Q&A sessions after each panel.

The event aims to outline global supply chain complexities and potential solutions to ensure that U.S. ag exporters, including dairy suppliers, do not see their reputations for reliability eroded and business compromised.

“Our competitors are eager to swoop in and scoop up those sales, which is why decisive actions by both Congress and the administration are so critical to address the export supply chain crisis,” says Harden.

To register for the virtual event, click here. It begins at 1 p.m. ET on Monday, Jan. 31.

Egypt delays implementation of new halal requirements
Egypt is delaying its new halal certification requirements until Feb. 28, 2022. The move follows extensive engagement by USDEC with the U.S. government, including multiple meetings to convey the challenges caused by the rules, the disruptions to trade and need for a more workable halal certification process. (See the Egypt link in Volume 2 of the USDEC Export Guide for more details on the new halal regs.) USDEC led a joint letter last month from dairy organizations in the U.S., Europe, New Zealand and Australia to each country’s trade ministries calling for united action in addressing the problem (see Global Dairy eBrief, 12/3/21).

Egypt will allow entry for imports of milk and dairy products without a Halal certificate until Feb. 28, 2022. The country also changed its list of dairy-related products that require a Halal certificate: Raw milk is now excluded.

USDEC continues to work closely with the U.S. government, industry counterparts and local resources to get the new Halal requirements revised, deferred or removed completely. Ongoing efforts include work with the U.S. government to pursue confirmation on whether import permits issued prior to Feb. 28 will still be honored if the product arrives after that date without a halal certificate recognized by Egypt.

We will provide further information and updates as they develop. In the meantime, if you have any questions, please contact Bryan Jacoby at bjacoby@usdec.org or Shawna Morris at smorris@usdec.org.

Omicron raises concerns about supply chain, travel recovery
The Omicron variant’s impact on supply chain congestion and travel is growing as it spreads globally. Marine consulting firm Sea-Intelligence reports that bottlenecks are worsening at ports in the U.S. and Europe.

China’s zero-tolerance COVID-19 policy is triggering factory shutdowns, sweeping population and business lockdowns, and severe trucking restrictions. Media reports from China note that authorities are blaming goods imports as a potential source of new cases. Concern is growing that the country will increase testing on incoming products (including foods) as well as logistics workers, a process that would further slow both exports and imports.

In the U.S., about 10% of the daily workforce at the Ports of Los Angeles and Long Beach missed work this week due to COVID-19. The hollowing out of the workforce is significantly slowing port operations at a time when 100+ backlogged vessels are still waiting for berths at the twin ports.

Travel rules tightening
Some countries are walking back schemes aimed at facilitating border crossings or are shutting borders altogether. Thailand, for example, suspended its Test & Go quarantine waiver system while Singapore halted its vaccinated travel lane program due to a sharp rise in new case numbers. Singapore said it plans to restart the program later this month while at the same time imposing stricter testing measures.

Japan extended its entry ban on new foreign arrivals until the end of February as the infection wave began to sweep through major cities.

China is fighting to eliminate any potential COVID concerns with the Beijing Winter Olympics less than a month away. The government implemented domestic travel restrictions in Tianjin (adjacent to Beijing) in a race to extinguish a flare-up there, even suspending train travel between the two cities. It also cancelled flights from the U.S. after numerous passengers arrived and tested positive for COVID. (USDEC Japan office; USDEC Southeast Asia office; Bloomberg, 1/12/22, 1/11/22, 1/10/22; Reuters, 1/11/22; Nikkei Asian Review, 1/11/22; Wall Street Journal, 1/9/22)

New bakery product ideation and innovation work looks to spur U.S. dairy protein demand in Korea
USDEC’s Korea office worked with a team of bakery consultants to develop six sweet bakery treats made with U.S. dairy protein and then compile the recipes into a digital bakery brochure for distribution to bakers and other potential customers in the market.

The ideation and innovation work is central to USDEC’s ingredient strategy across markets. This particular activity looks to spur and accelerate the launch of new products containing U.S. dairy protein and targeting health, wellness and healthy aging in a way that both meets Korean consumers’ dietary needs and preferences and fits seamlessly into their daily diets.

Korean demand has been growing for indulgent snacks and treats that are “healthier,” particularly since the start of the pandemic. More people are at home and looking for small, guilt-free decadences as a form of enjoyment and self-pampering.

Consultants working with USDEC’s South Korea team conducted trials of WPC80 and WPI in Korea-friendly but Western-style applications and settled on six products deemed the best prospects: whole wheat biscotti, blueberry yogurt scones, fudge brownies, blackberry jelly, cupcake cupcakes and quiche.

In addition to the product formulations, the digital brochure explains whey proteins, highlights U.S. dairy protein nutrition, functionality and sustainability benefits, and offers innovation and usage tips. Click here to download a copy of the brochure in Korean.

USDEC worked with the Korea Master Bakers Association to deliver the booklet to its network of 700 member bakers, while the USDEC Korea office is sharing it with additional customers.

For more information on the brochure project and USDEC protein efforts in South Korea, please contact Allison Guzman at aguzman@usdec.org.

 

Hotel deadline for Market Access, Ingredients advisory group meetings is Jan. 31
Attendees for the March Market Access and Regulatory Affairs (MARA) Advisory Group (MAG) and Ingredients Advisory Group (IAG) winter meetings have until Jan. 31 to take advantage of USDEC’s special room rate at Los Angeles’ The Line LA hotel where the meetings will take place. To book a room with the discounted rate, click here.

The MAG meeting is scheduled for the morning of March 1; the IAG meeting starts the afternoon of March 1 and continues all day March 2. The MAG meeting will provide regional updates on regulatory issues in key export markets, ongoing MARA projects, logistics challenges and other market access issues. The IAG will discuss the strategic direction for 2023 U.S. dairy ingredient marketing programs and alignment with member priorities.

The meetings are being held in-person according to local public health safety guidelines, but USDEC will continue to monitor the COVID-19 situation and developments with the Omicron variant or others and adjust plans if needed.

The meetings are open to members of each respective advisory group. If you are not a member of the IAG and would like to participate (or for more information on the meeting), please contact Allison Guzman at aguzman@usdec.org. If you are not a member of the MAG and would like to participate (or for more information on the meeting), please contact Jessica Smith at jsmith@usdec.org.

 

Harden elected National 4-H Council board chair
USDEC President and CEO Krysta Harden has been elected board chair by the National 4-H Council Board of Trustees.

Harden will focus on extending opportunity to all American youth by leading National 4-H Council’s ambitious three-year strategic plan, advancing 4-H’s diversity, equity, and inclusion initiatives, and deepening the board’s collaborative work with Cooperative Extension and USDA to grow 4-H programs.

4‑H is America’s largest youth development organization—empowering nearly six million young people with the skills to lead for a lifetime. 4-H programs use hands-on learning to teach youth about a variety of topic areas including STEM, civic engagement, healthy living, agriculture, and more.

National 4‑H Council, the nonprofit partner to USDA and Cooperative Extension, is committed to providing leadership and resources so that 4‑H programs are available to all youth across the U.S. It supports national and state 4‑H programs with a focus on fundraising, telling the 4-H story, and convening the 4-H system.

“We are honored to welcome Krysta Harden as National 4-H Council’s new board chair. A trailblazer in the public and private sectors, her leadership will be invaluable as we further our goals to expand opportunities for all of America’s youth through increased investment and participation in high-quality 4‑H programs,” said Jennifer Sirangelo, president and CEO, National 4‑H Council.

Harden, who has served on the National 4-H Council’s Board of Trustees for four years, said she sees “the positive impact 4-H has on our youth and I’m excited to help 4-H develop the next generation of diversely talented leaders in agriculture.” (Click here to download the USDEC press release on Harden’s election.)

Contact us with any questions on membership renewal
All USDEC members should have received membership renewal notices by now. If you have not received the invoice or if you have any questions, please contact Weston Abels at wabels@usdec.org. Membership renewal fees are due by March 15. Thank you and we appreciate your support!

 

More signs of milk production slowdown
Twenty EU27+UK countries have reported November 2021 milk delivery totals. More than half of them are down year-over-year from November 2020, including a 2.9% decline from top producer Germany, a 2.7% decrease from France and a 4.1% drop from the Netherlands. While Italy continues to post strong growth this year (+7.8% in November) and Ireland (which has yet to report its November tally) is likely to record further gains as well, EU27+UK output is limping in the second half of 2021.

NZ cautions on milk output
New Zealand dairy farmers continue to deal with a challenging 2021/22 season. The La Nina weather pattern is creating abnormally dry conditions on portions of both the North and South Islands. Despite what had been good spring rains in many dairy production areas that delivered good grass growth, NIWA (New Zealand’s National Institute of Water and Atmospheric Research) said farmers will need to start digging into their winter feed supplies if conditions do not improve soon.

The latest NZX Pasture Growth Index is at its lowest level in the last five years.

Fonterra Co-operative Group reduced its milk collection estimate for 2021/22 by 1.6%. It now expects to produce 1.500 billion MT of milk solids for the year, down from its original forecast of 1.525 billion MT. The new projection is 2.5% less than the 1.538 billion MT Fonterra collected in 2020/21.

The company attributed the downgrade to poor weather. It also said it does NOT need to further reduce volumes on offer at Global Dairy Trade (GDT) auctions. Strong off-auction sales had already reduced GDT volumes, the co-op said.

Darigold’s Ryan to retire March 31
Darigold President and CEO Stan Ryan is retiring at the end of the co-op’s fiscal year ending March 31, 2022. Joe Coote, president of the company’s Global Ingredients Division, will replace Ryan as CEO.

Allan Huttema, Darigold’s chairman, called Ryan a “game-changing and transformative leader” since he took the reins in 2016. “Under his leadership, our co-op significantly improved its performance, advanced its modernization and growth, re-established its brand and customer franchise, initiated the largest capital investments in our history to solidify the co-op, and built and strengthened internal teams to make Darigold a more formidable competitor at home and on the global stage,” Huttema said.

Coote, who joined Darigold in late 2020, plans to continue the co-op’s international expansion. He has extensive experience leading international organizations, including 14 years in senior leadership positions in global and domestic dairy. He assumes leadership as the co-op prepares to break ground on a new dairy processing facility in Pasco, Wash. (see Global Dairy eBrief, 7/9/21), and rebuilds its butter and milk powder facility in Caldwell, Idaho, which suffered extensive fire damage in October. (Company reports)

A-ware/Fonterra plan expansion project in Netherlands
New Zealand’s Fonterra and Dutch dairy processor Royal A-ware plan to significantly expand their joint production site in Heerenveen, Netherlands. The site features side-by-side plants: an A-ware cheese facility and a Fonterra factory making whey products and other ingredients. The project aims to increase cheese capacity from 200,000 MT per year to 300,000 MT, as well as add capacity for new products, including milk powder, lactoferrin and butter. (VeldPost, 1/3/22; Food Holland, 12/31/21)

More than 1,300 new stores on tap for Papa John’s in China
Papa John’s International signed a development agreement with private equity firm FountainVest Partners under which FountainVest will open more than 1,350 stores in South China by 2040. It is the largest franchise development agreement in Papa John’s history. In December, FountainVest announced that it had acquired China Food & Beverage Group, a Papa John’s franchisee in China that operates 160 Papa John’s stores in Shanghai and southern regions. The pizza chain has about 200 total units in China currently. (Restaurant Dive, 1/7/22)

Company news briefs
Saputo announced the retirement of President and COO Kai Bockmann effective March 4. . . . . Two more dairy companies launched plant-based versions of their standard cheese lines. Mondelez International rolled out an oat-and-almond version of its Philadelphia cream cheese in the UK, while Bel Group introduced a coconut-oil-and-starch-based version of its Babybel line, also in the UK. . . . Indian snack company Haldiram’s Nagpur is entering the dairy sector, investing $14 million to build a long-shelf-life dairy manufacturing facility to produce buttermilk, lassi and other products. (Company reports; FoodBev.com, 1/10/22, 1/6/22, 1/5/22)

 

• Judge rules “gruyere” is a common food name
• Jan. 31 webinar on agricultural export supply chain crisis
• Shawna Morris provides insight into USMCA dispute settlement ruling
• U.S. dairy exports rebounded sharply in November
• Recognizing National Milk Day (retweet)