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Against the background of Sino-US trade frictions, senior executives from the American Dairy Export Association visited China collectively to promote and strengthen the relationship between the Sino-US dairy industry. Mr. Tom Vilsack, president and CEO of the association, said: We will never give up the Chinese market.

The American Dairy Export Association came to China this time to participate in the "24th Annual Meeting of the China Dairy Industry Association" held in Xi'an on August 25. In addition to Chinese government and industry leaders, major dairy exporters and dairy experts from all over the world also attended the meeting.

Mr. Tom Vilsack, President and CEO of the American Dairy Export Association, made a speech on "U.S. Dairy Industry is committed to developing the Chinese market" at the meeting. After stepping down as the 30th Secretary of the United States Department of Agriculture, Mr. Tom Vilsack has served as President and Chief Executive Officer of the American Dairy Export Association since February 2017. Before this visit, he had visited China 10 times, 5 times as the US Secretary of Agriculture.

Tom Vilsack, President and CEO, American Dairy Export Association

Mr. Tom Vilsack said at the meeting that China is the third largest export market for American dairy products (after Mexico and Canada), with an export value of US$577 million. China is the main export destination of American whey products, the fourth largest overseas market for American skimmed milk powder, and the sixth largest importer of American cheese. Sufficient capacity growth in the United States can meet China's growing demand for cheese. China-US Dairy has established a good and strong partnership in the past years, and hopes to continue to strengthen this relationship for a long time to come. The American dairy industry is willing to work together with Chinese counterparts to better promote the cooperation between the two parties.

According to Ms. Annie Bienvenue, Vice President of Technical Services of the American Dairy Export Association, and Ms. Su Chang, the Association’s China Representative, in the speech "Stable Supply of U.S. Dairy Raw Materials" at the annual meeting, in 2017, the U.S. milk production reached more than 97 million tons. Combined with Australia's total milk production, it is expected to exceed 100 million tons in 2019.

In fact, as the world's largest milk producer, the United States is also one of the major players in the world's dairy trade. In terms of trade in products such as whey and whey protein, lactose, cheese and milk powder and milk protein, the United States has a relatively high market share.

The United States is the world's largest cheese producer and one of the best cheese exporters. Because of how far away the cultural environment, American dairy producers can produce more than 600 kinds of cheese, including some of the most popular cheeses, such as cheddar cheese and mozzarella cheese; there are also American original Monterick cheese, Colby cheese and Cream cheese, etc. At the same time, the United States is also the world's largest whey producer and exporter, with annual whey production exceeding 1 million tons. In 2017, China imported more than 2.6 million tons of various dairy products, of which more than 379,000 tons of various dairy raw materials from the United States. The United States is also the world's largest producer of skimmed milk powder, with an output of more than 1 million tons, and currently about half of its output is sold to overseas markets.

Currently, the American Dairy Export Association is actively promoting the application of cheese and high value-added whey protein in the Chinese market. At this annual meeting, Mr. Ross Christieson, Director of North Asia Business Unit of the American Dairy Export Association, shared with the guests on the theme of "American cheese industry is committed to meeting the needs of the Chinese market".

For the American Dairy Export Association, the goal for the next four to five years is to increase the amount of dairy products in the United States from 15% to 20% for export.

As the most eye-catching consumer country in the world, China has received much attention. According to Mr. Tom Vilsack, for China, American dairy products have the following major advantages:

First, the potential to stabilize supply and continue to expand production capacity. In the case of rapid growth in demand, the supply of many countries will not keep up with this rhythm, but this will not happen in the United States. Because of the vast land resources in the United States, the efficiency of farms and processing facilities is very high, and the outstanding technological innovation capabilities of the American dairy industry can ensure that the United States has a sufficient supply of high-quality milk, which is also the basis for meeting the needs of global customers.

Secondly, modern and efficient production processes. Dairy producers and processors throughout the United States are constantly improving their processes and sustainable development. The United States uses sustainable scientific and efficient farm management to ensure that dairy cows can produce healthy, safe and nutritious milk. The American Dairy Innovation Center unites dairy farmers, dairy companies, food and beverage manufacturers, governments, academia, and non-governmental organizations to ensure the safety and traceability of American dairy products.

Thirdly, strict testing standards and reliable product safety. The US dairy industry has been actively cooperating with strict government supervision for many years. The US Food and Drug Administration has safety laws and regulations that must be implemented throughout the United States to ensure the safety of food and beverages throughout the United States. At the same time, the state and local governments will regularly inspect local farms to ensure that all farms comply with all laws and regulations. In addition, the U.S. Department of Agriculture has also established high standards for protecting animal health and milk quality.

Finally, continuous innovation. One example is that at the 2016 World Cheese Championships, American cheese dominated the country and won 247 medals, which is a good embodiment of its innovative ability. Ms. Annie Bienvenue, Vice President of Technical Services of the American Dairy Export Association, and Ms. Su Chang, the Chinese representative of the Association, shared the theme of "Technological Innovation of American Dairy Ingredients", and introduced the optimization of milk powder processing procedures in the United States to meet the needs of different customers and new milk powder factories. Great progress made.

Ross Christieson, Director, North Asia Business Unit, American Dairy Export Association

Mr. Tom Vilsack also pointed out that the United States has the world's most advanced dairy product purchasing risk management tools, and some dairy product futures contracts have been over 20 years. Stable supply of raw materials and controllable prices are crucial to global dairy buyers. Buyers and sellers can use these tools to reduce the risks associated with price fluctuations.

American Dairy Export Association accepts an interview with Dairy Online

After the meeting, Mr. Tom Vilsack said in an exclusive interview with "Dairy Online" that the trade between China and the United States is currently facing some tensions. It is a crucial moment for the dairy industry in China and the United States. The trade war has harmed the interests of American farmers, exporters and Chinese consumers. The American Dairy Export Association is working hard to ease the tension between the two parties, especially in the dairy industry, and promote the development of bilateral trade relations.

Regarding the impact of tariffs, Mr. Tom Vilsack pointed out that different products will be affected differently. But in any case, if high tariffs continue for a long time, they will eventually harm the interests of end customers and consumers.

Mr. Tom Vilsack said, “I want to tell you sincerely that the dairy industry in the United States has never been so eager to cooperate with consumers in China and all over the world. I hope to bring you world-class products to satisfy consumers. Demand."

Regarding the question of "Will the U.S. dairy industry abandon the Chinese market and switch to other markets" raised by Dairy Online, Mr. Tom Vilsack firmly stated: "We will never abandon the Chinese market. The U.S. dairy industry has spent a long time with China. The industry colleagues have established a friendly and cooperative relationship, and we will continue to maintain and upgrade this relationship. At the end of March this year, the American Dairy Export Association and Jiangnan University jointly established the Sino-US Dairy Innovation Center in order to better serve the Chinese market . This time to participate in the 24th Annual Meeting of the China Dairy Industry Association. This is the third time I have come to China this year. Except for my hometown, I have not been to any place three times in less than a year. China We attach great importance to this market. As an industry association, we have always encouraged the governments of China and the United States to sit down and negotiate well to resolve trade frictions."

TIPS:

1. The American Dairy Export Association is a non-profit independent membership organization that represents the global trade interests of American dairy producers, processors and dairy cooperatives, raw material suppliers and export traders. The American Dairy Export Association aims to improve the global competitiveness of the United States through market development projects, expand the global demand for American dairy products, solve market entry barriers, and promote industry trade policy goals.

2. As the world's largest milk producer, the US dairy industry has developed a series of sustainable, world-class, and growing cheese formulas, as well as nutritional and functional dairy products (such as skimmed milk powder, lactose, and whey protein). The American Dairy Export Association and its overseas representatives in China and around the world also work directly with buyers and end users around the world to increase customers' purchasing power.