U.S. Dairy Export Council President and CEO Tom Vilsack traveled to China recently to begin a new partnership with Jiangnan University. While there, he moderated a conversation with USDEC China representative Daniel Chan and new business development specialist Annie Ma about opportunities to increase U.S. dairy exports to the world's largest country.

Ma is the latest hire of what will be nine new on-the-ground professionals to expand business opportunities in key global export markets: China, South Korea, Japan, Southeast Asia and the Middle East/North Africa.

"These hires illustrate an increased commitment to serve customers beyond our borders," Vilsack said. "Trust is a key to our long-term strategy. It requires putting more people on the ground for the face-to-face conversations that build lasting business partnerships."

The expanding resources for USDEC members are part of "The Next 5%" initiative to raise annual U.S. export volume from the equivalent of 15 percent of U.S. milk solids to 20 percent.

VIDEO: Click arrow, lower left, below

VIDEO: Click arrow, lower left, above

Watch a video of the conversation above and read a brief excerpt of the conversation below, edited for brevity, clarity and grammar.

Vilsack: From your perspective, where are the opportunities for cheese here in China?

Chan: Our sky is our limit. We started from a very narrow, small base. We saw the market being established very quickly. Both the trade and the consumer are learning to acquire the taste for cheeses in this market. We look at the market expansion, it's mostly on pizza cheese, followed by cheese for the bakery sector. At the same time, the retail cheese is also developing-not only in volume, they're developing in variety as well. So, there's a lot of work to be done in this rapidly expanding market potential and, therefore, our trade program and consumer communication will be very important.

Ma: We have big opportunities (with cheese). For example, cream cheese originated in America. People know that. People like it. So, we have very good opportunities to introduce more to consumers.

Vilsack: Let's talk about ingredients. That's another component to our market opportunity here. Where do you see the ingredient market here in China and how can our members potentially access more of that?

Chan: The ingredients market continues to grow as Chinese demand for dairy products expands. We look at growth from the food area. Hopefully, we will be able to get permeate in food applications accepted by the Chinese authorities. So, that is one major area that we think we will have some significant volume expansion. The other thing that we think will bring us great potential is focusing more (from the manufacturing and supply side) on the specifications required by customs in China. We are bringing in trade missions and putting buyers and sellers together to develop long-term strategic partnerships.

Vilsack: USDEC recently signed a memorandum of understanding with a new partner, Jiangnan University in China. Tell us a little something about that partnership and how you see the benefits coming from that MOU.

VIDEO: Click arrow, lower left, below

VIDEO: Click arrow, lower left, above

Chan: It's very exciting news to us. I think setting up this long-term strategy with Jiangnan University will be a major breakthrough (and) put us on the higher level in terms of meeting customer needs and facing challenges from competitors in this market.

Vilsack: What is the Chinese consumer's perception of U.S. dairy and our products?

Ma: The Chinese people think U.S. dairy products are fast, safe and high quality. People here like imported goods. They think they are safe. Plus, American food in general is very popular in China.

Margaret Speich is senior vice president of strategic and industry communications at the U.S. Dairy Export Council. 

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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff. The password-protected article above is intended for USDEC member organizations only and should not be shared with anyone outside your organization.