Back to all articles

Global Dairy eBrief Exclusives

Trade Mission Hints at Chinese Cheese Opportunity


by Luke Waring      
A visit to California and Idaho by Chinese cheese buyers creates a positive perception of U.S. capabilities.

Editor's Note: The trip described in this article occurred in May, before the United States announced June 15 tariffs on a list of Chinese goods. China retaliated with its own list that included tariffs on U.S. cheeses. Despite these developments, USDEC sees cheese exports to China as a long-term growth opportunity for its members.

Chinese per capita cheese consumption is about 100 grams. That's less than a quarter pound. Yet, since 2000, Chinese cheese imports have risen from almost 2,000 metric tons per year to 108,000 metric tons per year, making the nation the seventh largest cheese importer in the world.

Those numbers speak volumes about the long-term cheese export potential to China.

"Chinese cheese consumption is really in its infancy," Missha Hu, USDEC Shanghai office, said during the recent Chinese cheese buyers reverse trade mission to California and Idaho. During a stop at TLK Dairy Farm in Idaho, Hu spoke with me about Chinese consumers' cheese knowledge and buyers' views on U.S. suppliers.

(Click arrow below to view an edited video of that interview.)

Getting to know the U.S. cheese industry

Hu accompanied representatives from five Chinese processed cheese manufacturers, and USDEC Arlington staff as they toured cheese plants and TLK, sampled U.S. cheese at tastings and met with multiple USDEC members.

The Chinese processed cheese manufacturing industry is expanding, and with little domestic natural cheese production, processors are actively seeking to diversify supply chains. The trip aimed to convey the scale and scope of the U.S. industry and demonstrate U.S. commitment to meeting Chinese cheese needs.

Hu said that prior to the trip, the attendees viewed the United States as primarily a commodity cheese supplier.

"After this trip, they are feeling U.S. suppliers are willing and committed to producing the products that the Chinese market wants," said Hu.

Enormous potential

Commitment to Chinese demand makes sense given the enormous export potential of the market. This is a population of 1.4 billion. Yet, as Hu notes, "the majority of Chinese people do not know what cheese is . . . We eat cheese without realizing that we are eating cheese-mainly as a component in pizza, in sandwiches and in bakery items."

It is an accepted fact that as Chinese consumers become more knowledgeable about cheese, continue to experience it in different foods and on its own, consumption is bound to increase.

Long-term growth trends point to rising demand and imports for years to come. Since 2000, the compound annual growth rate for Chinese cheese imports has been 27 percent. Even in recent years at higher volumes, imports are growing 25 percent annually.

The reverse trade mission sought to deliver the message that the U.S. industry is a consistent, sustainable, quality supplier of cheese that is committed to being part of that growth.

"With the help of DairyWest and the California Milk Advisory Board, and the many USDEC members who participated, the mission went a long way toward accomplishing many of its goals," said Ross Christieson, USDEC business unit director for North Asia. "The hospitality of the U.S. industry generated abundant goodwill that we hope to translate into sales in the months ahead."

Luke Waring is manager of communications and membership at the U.S. Dairy Export Council.

###

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.