HIGHLIGHTS: OCTOBER 11, 2024
• USDEC cheese seminars in Indonesia, Philippines
• Update: Saudi Arabia’s new halal certificate requirements
• Mexico’s Food Tech Summit draws a crowd
• Permeate workshops in China
• Harden talks dairy exports at World Dairy Expo
• Strengthening collaboration with the Czech dairy industry
• USDEC invites input on member satisfaction survey
• Member Opportunity: Attend final judging of China student innovation contest
• Market Summary: U.S. dairy exports rise in August
• Ahlem to step down as Hilmar CEO
• Company briefs: Danone, Almarai, Prairie Farms, Nature One Dairy, Subway
Featured
RAPP funding at work in Southeast Asia cheese seminars
More than 240 purchasing decision makers from 100 cheese-buying companies in Indonesia and the Philippines attended USDEC’s Think USA Cheese Seminars on Sept. 23-27 in Jakarta and Manila. The two seminars were made possible by the first tranche of RAPP funding, which allowed USDEC to expand its cheese marketing programs in Southeast Asia and focus on additional markets that offer potential for U.S. cheese exports. Those include Indonesia and the Philippines.
Twelve U.S. cheese suppliers participated in the seminars, which followed the same agenda in both cities.
On Day 1, USDEC provided a market briefing to the U.S. participants, with detailed insights on demographics, consumer trends, and cheese-specific regulatory information. The classroom session was followed by a retail tour of local supermarkets and dining experiences that showcased cheese use in the local food scene.
“These seminars provide a chance for U.S. cheese suppliers to learn more about the in-market opportunities for U.S. cheese, connect with purchasing decision makers from key cheese buying companies and promote the U.S. industry's broad cheese portfolio,” says Amy Foor, USDEC vice president, Global Foodservice Programs.
Day 2 was a full-day cheese seminar for local importers/distributors, food manufacturers, foodservice operators, retailers and other end-users. The seminars highlighted the benefits of sourcing cheeses from the United States, supported by presentations on the global cheese market outlook, trends driving cheese consumption in the respective markets, and a panel session with U.S. suppliers providing their perspectives on U.S. industry’s evolving supply capacity to serve growing cheese demand around the world.
A packed house of cheese-buying decision makers listens to the U.S. cheese supplier panel in Indonesia.
Dali Ghazalay (left), regional director, USDEC Southeast Asia, moderates a panel of U.S. cheese suppliers (left to right): Julian Cardona, Dairy Farmers of America; Cynthia Liu, Orange Cheese Co.; and Ivan Beck, Agropur Inc.
Participants also enjoyed curated tastings featuring innovative Asian-inspired dishes made with U.S. cheese from local celebrity chefs. Chef Vindex Tengker headed the tasting in Indonesia and Chef Jill Sandique led in the Philippines. One-on-one meetings between U.S. suppliers and attendees and a networking reception showcasing the breadth and variety of USA cheeses capped off the second day in each market.
Additionally, the presence of three journalists from leading local food-focused publications at each event promises upcoming media coverage to further amplify the impact of the seminar.
Attendee responses to the seminars was overwhelmingly positive.
John Ernest Ramos, dairy buyer at Robinsons Supermarket in the Philippines, called the Manila session, “a great way to introduce the Philippine market to the variety of cheeses the U.S. has to offer. Meeting with the suppliers gave us a more personal connection to the U.S. cheese industry. [We are] hoping to add more USA cheese brands to our shelves in the coming months.”
Pak Rakhmat Hidayat, vice president of global procurement, at Indonesian food and beverage manufacturer PT Kaldu Sari Nabati, hailed the innovation potential in the Jakarta seminar and how it will spark ideas for the Indonesian food and beverage industries.
Attendees at the Indonesia seminar enjoy a sampling of “Cheese from the USA” during a coffee/networking break and chef-curated tasting.
U.S. cheese suppliers engaged with potential buyers during two-plus hours of 1-on-1 meetings at each seminar.
Update regarding Saudi Arabia’s new halal certificate requirements
USDEC has received some clarifying details on the new Saudi Arabia halal certificate requirements outlined in the Sept. 23 Member Alert. As noted in the Member Alert, Saudi Arabia’s new halal protocol requires approved halal certifiers to register the companies for which they issue halal certification in Saudi Arabia’s Saudi Food & Drug Authority (SFDA) Halal Center portal as of Oct. 1 and charge new fees.
SFDA shared the following additional information with USDA’s Foreign Agricultural Service (FAS):
- Scope: SFDA confirmed that the only dairy products requiring halal certification are those containing animal origin rennet and/or products that are labeled as halal.
- Proprietary information: The original Member Alert refers to the need to provide business-sensitive information to the halal certifier as part of the new halal certificate process. FAS clarified that SFDA initially required the HACCP plan to be submitted by the halal certifier as part of the new registration process. However, according to FAS, SFDA verbally stated that the inclusion of HACCP or other operational manuals as part of the registration process required by Saudi approved halal certifiers is optional.
If you have any questions regarding Saudi Arabia’s updated Halal certificate process, please contact Bryan Jacoby at bjacoby@usdec.org.
Mexico’s Food Tech Summit & Expo draws huge crowd
The USDEC booth was a hive of activity during the Oct. 2-3 Food Tech Summit & Expo in Mexico City. The Expo, the largest food ingredients show in Mexico, has grown to become a truly regional event, drawing attendees from across Central and South America. This year’s visitor count reached 29,381, which is more than the comparable U.S. IFT show.
Eight USDEC member companies joined staff in the USDEC booth. Several additional members exhibited on their own and still others walked the show floor.
“The USDEC booth is always a popular destination with many existing customers as well as potential new customers meeting with our members,” said Terri Rexroat, vice president, Global Ingredients Marketing.
In addition to the show floor, the U.S. dairy presence was felt on the Summit side of the event. Long-time USDEC collaborator and partner Ruben Zarraga, dairy science director and professor in charge of the Queretaro campus of Tec de Monterrey University, spoke on behalf of USDEC. Zarraga focused on U.S. dairy protein use in beverages, reviewing functionality, applications and benefits. Attendance was strong and judging by audience response and questions, participants were well engaged.
USDEC members and staff pose outside the USDEC booth at the Food Tech Summit & Expo in Mexico City.
Nearly 120 Food Tech Summit attendees showed up to hear Ruben Zarraga’s presentation on dairy ingredient use in beverages.
Chinese bakery workshops highlight permeate applications
USDEC partnered with two Chinese colleges for the latest U.S. dairy ingredient trainings promoting permeate in bakery applications. The trainings took place Sept. 20 and 26, respectively, at the Guangdong Teachers College of Foreign Languages and Arts in Guangzhou and the Liaoning Vocational Technical College of Modern Service in Shenyang.
A total of nearly 170 bakery end users, distributors, chefs, teachers, students and provincial associations covering food sectors attended the two sessions. Each event included instruction on the functionality and benefits of U.S. dairy permeate in baked goods, a presentation from USDEC China office representative Chang Su on how dairy permeate is being used globally, product demonstrations by trained culinary professionals and product sampling.
Guangdong
In Guangdong, Ruonan Liu from the Dairy Innovation Center at USDEC’s partner Jiangnan University (JU) presented on dairy permeate properties and applications. USDEC also showed video presentations from JU Associate Professor Lina Zhang and Tom Guerin, research program manager at the Center for Dairy Research at UW Madison.
Chef Guanghong He provided a product demo, highlighting eight permeate-containing bakery items he created: brownies, cookies, pumpkin tarts, pound cake, Danish rolls, ciabatta, bagels and European-style bread. Chef He shared that dairy permeate can help achieve better texture and make bread softer, which is a trait welcomed by Chinese consumers.
Chef Guanghong He leads attendees at the start of a permeate demo at the seminar in Guangzhou.
Shenyang
In Shenyang, frequent USDEC collaborator Chef Dong Han demonstrated eight bakery items he developed with permeate: crispy toast, “dairy aroma” toast, cube bread, brioche bread, Danish bread and Danish rolls, burritos and cookies. The breads highlighted how permeate helps deliver even bright browning. In addition, the browning effect is quicker, allowing bakers to lower the oven temperature, resulting in the extra benefit of energy savings.
Also in Shenyang, Chef Na You showed three items she created: crackers, Madeleine cake and Tiramisu. Among other benefits, Chef You recommended whey permeate to enhance the crispiness of crackers.
Each participant received samples of both milk permeate and whey permeate for testing.
Chef Dong Han presenting to the group during the Shenyang training held at Liaoning Vocational Technical College of Modern Service.
Chef Na You encourages attendee participation during the onsite demonstration in Shenyang.
A display table with the eight bakery items developed by Chef Han for the Shenyang training, including crispy toast, “dairy aroma” toast, cube bread, brioche bread, Danish bread and Danish rolls, burritos and cookies.
Group photo of the bakery training in Shenyang with Chef Han (at the center). To his right is Chang Su from the USDEC China office, and to his left is Chef You.
Harden highlights dairy export potential, USDEC’s plan to grow volume and value at World Dairy Expo
While U.S. dairy export growth has been mixed on a month-to-month basis in 2024, exports have become increasingly essential to the long-term vitality of the U.S. dairy sector, USDEC President and CEO told the audience at last week’s World Dairy Expo in Madison, Wisconsin. Harden spoke at a special side event called the “Global Dairy Summit” and organized by the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).
The panel presentation was moderated by CoBank’s Cory Geiger and also featured Dave Lenzmeier, CEO of Milk Specialties Global, Heather Anfang, president, Dairy Foods, and executive vice president, Land O’Lakes, and Mike McCully, president and owner, McCully Consulting. U.S. Secretary of Agriculture Tom Vilsack gave a post-panel presentation on efforts USDA is making to support the U.S. dairy industry and exports, including the Regional Agricultural Promotion Program (RAPP).
The panel was bullish on U.S. dairy prospects moving forward, both in the U.S. and abroad. Harden highlighted the impact of international trade on the health of the U.S. dairy industry and ways USDEC is working to expand opportunities and support growth. The nutritional punch packed by dairy combined with the industry’s successes and ongoing efforts to improve its environmental profile make it the ideal product for times of heightened concern about global food insecurity.
U.S. dairy farmers face challenges to growth, like the cost of dairy heifers and feed, she said. But of all the major global suppliers, the United States remains best positioned to nourish the world.
The more we can connect the dots and show the rest of the world how and why dairy is part of a healthy diet, the more we will grow, USDEC President and CEO Krysta Harden told the World Dairy Expo audience.
The Global Dairy Summit Panel (left to right): Cory Geiger, CoBank; USDEC’s Krysta Harden; Heather Anfang, Land O’Lakes; Mike McCully, president and owner, McCully Consulting; and Dave Lenzmeier, Milk Specialties Global.
USDA Secretary Tom Vilsack and USDEC’s Krysta Harden after the summit.
Strengthening collaboration with the Czech dairy industry: A unified effort for a sustainable future
In the face of evolving global challenges, particularly in relation to the European Commission's Green Deal, collaboration within the bloc’s dairy industry is more critical than ever. USDEC continues to engage with European dairy groups to find common ground and safeguard dairy’s place in the global food system.
Most recently, Jaime Castaneda, USDEC executive vice president, policy development and strategy, met with key leaders of the Czech dairy sector, including Jiří Kopáček, chairman of the Czech Dairy Association, and the Brazzale family, to explore ways to safeguard the image of dairy and enhance sustainability efforts. This trip marked the beginning of a potential long-term partnership to advocate for responsible dairy farming practices, informed consumer awareness, and a united defense of dairy against external pressures from the World Health Organization (WHO) and EU regulations.
A significant portion of the trip involved discussions on how to collaborate to address the growing challenges facing the dairy industry, particularly from international groups like WHO, CODEX and EU. Conversations centered on the importance of defending the dairy industry against regulatory pressures that threaten to mischaracterize dairy products or impose undue restrictions. The WHO has been advocating for dietary shifts that could reduce dairy consumption, while some EU policies, especially under the Green Deal, propose stringent environmental measures that may burden the industry without recognizing the sustainability improvements already in place.
In addition to meeting with industry leaders, USDEC engaged with representatives from the U.S. Embassy's Foreign Agricultural Service (FAS) in Prague. This meeting provided critical insights into the Czech milk industry, including its regulatory landscape and potential areas of U.S.-Czech collaboration.
Jaime Castaneda with Alberto Brazzale, vice chair of the Czech Dairy Association.
USDEC member satisfaction survey due Oct. 18
USDEC values member input. Hearing directly from you is the best way we have to ensure the organization’s programming features meet the needs of members. To help us better serve you, we are conducting an online member satisfaction survey. If you have already completed the survey through one of the emails sent out over the past two weeks, thank you for your response! If not, there’s still time to provide input. Please click here to fill out the online survey. Responses are due Oct. 18. If you would like to reach out to USDEC directly, you can contact the membership team here.
Events
Invitation to attend the finals of the 2024 USDEC-JU Student innovation competition
USDEC cordially invites members to attend the final judging event of the 6th USDEC-JU Food Innovation Competition, which will be held Saturday Oct. 26, on the Campus of Jiangnan University (JU) in Wuxi, China.
The annual contest—called the “Tasty U.S. Dairy Cup”—has become an integral part of the USDEC-JU partnership. This year’s theme is “Dairy Ingredients Bring 'New Productive Forces' for Innovative Quality Foods,” which draws on the slogan “New Productive Forces,” that has been adopted by many industries in China to promote manufacturing and innovation.
“We adapted and expanded on it, linking the need for a ‘quality upgrade’ to a rise in consumer demand and a key factor influencing shopping decisions,” says Annie Bienvenue, vice president, Global Ingredients Technical Marketing Services. “The competition gives us the opportunity to stimulate the creative potential of JU’s students in using dairy ingredients in a variety of foods and beverages. We teach students about the variety, benefits and functionality of U.S. dairy ingredients in food systems and give them the opportunity to realize their innovation ideas with hands-on time in the lab.”
The products they create are then presented, tasted and judged by a panel of food industry experts. In addition to generating exposure to U.S. dairy ingredients and their benefits, the contest supports USDEC’s development goals as these students—the future of the food workforce—prepare to start their careers.
This year’s competition was many months in the making. It began in May with about 150 students at a kickoff session where they heard speeches and presentations from Secretary Lei Li, deputy secretary of JU and vice dean of the School of Food Science and Technology; Chang Su, USDEC China office representative; Associate Professors Lina Zhang and Ruonan Liu from the JU Dairy Innovation Center; and Zixuan Liu, the winner of the 5th student competition. We’d like to thank USDEC members for supporting this competition: Agropur for providing an educational video as well as Agri-Mark, Grassland Dairy Products, Hilmar, Land O'Lakes, and Proliant Dairy Ingredients for donating product samples.
Student teams developed 27 proposals over the next two months, which were evaluated by a panel. Fourteen product proposals were selected to enter the final stage of the competition. Those teams received further training and support in September and are currently in the lab, realizing their product idea in preparation for the public voting and final competition.
Members interested in participating in the final judging or looking for more information, please contact Annie Bienvenue at abienvenue@usdec.org.
Market Summary
U.S. exports rise for second straight month
Year-over-year (YOY) U.S. dairy exports rose 1.7% in August in milk solids equivalent (MSE) terms marking the second straight month of gains. The August increase puts year-to-date (YTD) volume into positive territory for the first time in 2024, albeit at only +0.1%. YOY U.S. export value increased 10% to $708 million in August—the biggest rise of the year as commodity prices climbed and the United States’ portfolio favored cheese and proteins.
YOY U.S. cheese volume jumped 15% (+5,579 MT) in August, with widespread gains across geographies: Mexico +17% (+2,256 MT), Middle East/North Africa +136% (+1,245 MT), Southeast Asia +94% (+850 MT), South Korea +23% (+831 MT) and South America +43% (+802 MT).
YOY low-protein whey exports increased 5% (+2,072 MT) and WPC80+ jumped 22% (+1,420 MT). Low-protein volume shipments to Southeast Asia (+20%, +1,589 MT), South America (+86%, +1,450 MT) and the Middle East/North Africa (+1,075%, +1,250 MT) offset a decline in exports to the top U.S. customer China (-12%, -2,215 MT). On the other hand, YOY U.S. WPC80+ shipments to China surged 281% (+2,521 MT) in August, more than offsetting declines to the Nos. 2 and 3 U.S. markets, Japan (-30%, -442 MT) and Brazil (-18%, -182 MT).
YOY nonfat dry milk/skim milk powder (NFDM/SMP) exports slipped 1% (-788 MT). Monthly exports to Southeast Asia fell (-8%, -1,956 MT) for the first time since May. A 32% increase to the Philippines (+3,102 MT) could not compensate for significant declines to Vietnam (-2,531 MT) and Indonesia (-1,540 MT). Mexico posted its second straight monthly gain in August (+9%, +3,082 MT) after six straight months of YOY declines.
For more on August Export results, read the U.S. Dairy Exporter Blog story, “U.S. dairy exports rise for second straight month.” Or go to the USDEC Data Hub and click on the U.S. Exports tab and experiment with the interactive charts.
Company News
Hilmar’s CEO announces plan to step down
California-based Hilmar Cheese announced that CEO David Ahlem will step down from his role early next year. Ahlem has been with Hilmar for a total of 21 years, including almost 10 years as its CEO. A statement from Hilmar said he will continue to contribute to the company as an advisor to the board of directors. The board began a search process for a new CEO two months ago and is considering both internal and external candidates, with the goal of having a successor in place by early next year. (Company reports)
Danone expansion in Egypt to feed export markets
Danone is spending 2 billion Egyptian pounds (about US$41 million) to upgrade and expand its Al-Obour factory in Egypt with an eye toward increasing exports from the facility. Danone currently ships about 5% of the plant’s output to five North African and Middle Eastern markets. The new investments will help the company double that percentage and expand further into Africa and Saudi Arabia, Danone said. (Zawya Projects, 10/7/24)
Mergers, acquisitions and joint ventures
Saudi Arabian dairy and food processor Almarai, through its subsidiary, Teeba Investment for Developed Food Processing, is paying 263 million Saudi riyals (about US$70 million) for Jordanian dairy and cheese company Hammoudeh Food Industries. … Illinois dairy cooperative Prairie Farms Dairy acquired the Orrville, Ohio, manufacturing facilities of dairy company SmithFoods. The change is effective immediately and both companies said they are committed to a seamless integrations with no disruptions in day-to-day operations. … Australia’s Nature One Dairy, food manufacturer SPC Global, and The Original Juice Co. announced a merger that will create a new Australian food and beverage company that’s estimated to generate more than A$400 million (about US$275 million) in revenue by 2025. The merger for the new business, which has yet to be named, is expected to be finalized next month, pending shareholder approval. Nature One makes and markets premium infant formula, nutritional formula and milk powder products for customers in Australia, China and other Asia-Pacific markets. … Switzerland-based Emmi Group completed its €900 million (about US$974 million) acquisition of French pastry manufacturer Mademoiselle Desserts Group. (Company reports; Just Food, 10/9/24)
Company briefs
Miami-based restaurant chain Subway announced it has signed more than 20 master franchise agreements over the last three years that represent commitments for more than 10,000 additional international units. The deals will reportedly launch Subway shops in Paraguay and Mongolia for the first time and expand its presence in France, the Czech Republic, Luxembourg, Belgium, Switzerland, Liechtenstein, Brazil, El Salvador and Guatemala. (Restaurant Business, 10/1/24)
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