The growth of U.S. dairy exports is twice as fast as the growth of what Americans buy.
Megan Sheets, senior director of strategic development and strategic insights for the U.S. Dairy Export Council, said that the amount and value of U.S. dairy exports set a record in 2021. “That was really caused by the return to normalcy after the pandemic, which led to a rise in international demand.”
Even though the export council doesn’t think that dairy exports will grow as much in 2022, they still want to see growth.
During a talk at the World Dairy Expo, Sheets said, “About 18% of U.S. milk production goes overseas, and we expect that to rise to 20% in the coming years.”
About 95% of the people in the world live in places other than the United States.
“This shows how big the opportunity is when you work with people all over the world,” Sheets said.
Sheets said that over the past year, three really strong markets for U.S. dairy products were Southeast Asia, China, and Mexico.
She said, “The main things we sell around the world are skim milk powder, nonfat dry milk, dry whey, and cheese.”
Sheets said that in the past, exports were more based on what could be sold.
“We were sending out more than we needed,” she said.
Now, the dairy council is seeing a change to a market that is based on what people want.
“If we want to grow our dairy exports, we need to know what matters to consumers and customers around the world,” Sheets said.
The Export Council did a study called “Competitive Corporate Assessment” to find out what its competitors were doing.
Sheets said, “One of the most important things I learned from the study is that many of our corporate competitors have adopted the demand-driven approach at every level of their business.” “It drives product innovation and research priorities for the markets they’re investing in.”
Sheets talked about some of the things, like taste and enjoyment, that are driving the demand for dairy products around the world.
She said, “The pandemic has had a long-term effect on so many people around the world. It has changed how we act, how we use information, technology, food, and drink, and it has changed many people’s hopes and views.” “We’ve had about 10 years’ worth of changes in just three years.”
Change is hard and uncomfortable for a lot of people.
Sheets said, “It’s no surprise that people all over the world are turning to taste and enjoyment and finding comfort in food and drink.” “This is a chance for many types of dairy products, but especially cheese.”
The Export Council found out from a global study that taste is the main reason why people buy cheese all over the world. But what tastes good in one market could be very different from what tastes good in another. So, the council worked with people in Saudi Arabia and South Korea to find out what kinds of cheese they like to eat.
Sheets said, “We saw more processed cheese in Saudi Arabia than we expected.” “We found out that they like a balanced flavour with some sweet and sour notes, but they don’t like bitter cheese or cheese that smells or tastes too strong.”
According to the study, people in South Korea like mild cheese, and the milk forward profile stood out.
Sheets said, “Color was important, and white meant that the food was fresh.” “The texture was more important, and they like white cheeses that are soft, creamy, and white.”
Sustainability is the second trend that drives demand.
Sheets said, “The health of the planet is now the most important thing, not the health of the people in 2020.”
She said, “Not only do people care about sustainability, but it’s also a big reason why people in Southeast Asia and Mexico buy things.” “They buy things based on how well they do for the environment.”
Sustainability is something that the Export Council sees as a plus for U.S. dairy exports.
Sheets said, “We have so many forward-looking projects going on in U.S. dairy farms that we know there’s a chance to tell customers all over the world about them.”
Another important trend for the dairy market is the focus on health and nutrition.
Sheets said, “A lot of people are putting their health first and using food as a way to deal with stress and stay healthy over time.”
This is making more people want proteins.
Sheets said, “It’s really interesting that people think protein is good for their health in many ways they associate with nutrition.” “Consumers believe that protein is good for their immune systems, muscles, overall health, and energy levels.”
Yogurt is becoming more popular because people are interested in nutrition and protein.
Sheets said that health is the main reason why people buy yoghurt. “We think there will be a steady demand for yoghurt, and drinkable yoghurts could become more popular as a way to stay healthy on the go.”
Because of the pandemic, people can get dairy more easily and quickly because technology is being used more quickly. One example is the live commerce platform, which is becoming more and more popular in Asia.
Sheets said, “With this platform, you can instantly interact with someone who is doing a live retail broadcast by using your phone to buy food, drinks, or any consumer packaged good.”
The export council’s main goal is to tell people all over the world about how great U.S. dairy is.
Sheets said, “We’re putting out an app called USA Cheeseboard that lets people outside the U.S. learn more about American cheese, recipes, and how to pair it with other foods.” “We’re really happy about what technology has let us do to connect with customers.”
Sheets said that even though U.S. dairy has a lot of good things going for it around the world, it also has to deal with problems like labour, workforce, logistics, and inflation.
“When we face problems, we always have the chance to come up with new ideas and find solutions by thinking differently than we have in the past and by looking to the long term when the short term is hard,” she said.
Visit www.usdec.org or call 703-528-3049 to find out more about the U.S. Dairy Export Council.
