China, U.S. resolve dairy certificate issue
Chinese and U.S. regulators approved a dairy certificate ensuring that the flow of U.S. dairy goods into the largest dairy importer in the world continues unabated.
The issue dates back to early 2010 when China revised its dairy certificate as part of sweeping efforts to upgrade domestic food safety. While there never was a market closure, the unresolved certificate issue and threat of closure loomed over U.S.-China dairy trade, making some buyers hesitate and opting to source product from U.S. competitors.
USDEC estimates the uncertainty of the certificate situation depressed U.S. dairy ingredient sales by 5%-10% and cheese sales by as much as 50%. The impact was considerably greater in the case of cheese, given the foodservice industry’s need for consistent supply and more limited interchangeability of cheeses.