Navigating Global Dairy Market: Making Every Drop Count

As a member of the Dairy Management Inc. (DMI) board of directors and chair of the U.S. Dairy Export Council (USDEC) and United Dairy Industry Association (UDIA), I have witnessed the positive impact of investing checkoff dollars in exports to make every drop count on my farm.

Both domestic and international markets are essential for the U.S. dairy industry’s success. As a board, we allocate a significant portion of our local and national dairy checkoff dollars to building sales and growing trust in the domestic market.

However, we also acknowledge that 96 percent of consumers live outside the United States, so we are investing checkoff dollars to grow demand for U.S. dairy internationally.

As incomes rise globally, consumers seek healthier and more flavorful food options, which is where U.S. dairy comes in. U.S. dairy products align well with global consumers’ evolving preferences, especially cheese, whether incorporated into charcuterie boards or featured on pizzas.

Mexico is an excellent example of a large and growing market. Mexico is experiencing a surge in its middle class, which is seeking more dairy products, including cheese, protein powders and butter, and we are poised to meet this demand.

National, local checkoff collaboration

USDEC, through dairy farmer investment and membership dues, has played a significant role in increasing milk exports to about 16 percent of total U.S. milk production in 2023, up from about 4 percent in 1995.

USDEC collaborates with DMI to strategically allocate resources across global markets, facilitating a transition beyond the U.S. and representing a united front working toward a shared vision of dairy farmers to continue growing our industry.

Influencing the influencers

An essential strategy used globally matches a core strategy we use in the United States, which focuses on impacting individuals who influence others. We are finding ways to make every drop count by influencing the influencers.

The USA Cheese Guild is an example of this strategy. In international culinary schools, chefs partner with the USA Cheese Guild for a comprehensive education on the unique attributes of U.S. cheese. The program shares knowledge and builds trust in U.S. cheese among students already established in the culinary field. The impact is felt as these graduates return to their professions, armed with newfound knowledge and love of U.S. cheese. The influence doesn’t stop at individual establishments but creates a ripple effect. When a renowned restaurant in Dubai features U.S. cheese, it piques the interest of other establishments.

The USA Cheese Guild showcases the power of strategic initiatives in promoting U.S. dairy products globally, and how your local and national checkoffs work together to make that happen.

Exports make every drop count

In the early days of my dairy career, I had a narrow view of what impacted milk prices. I only considered local factors, such as our plant and how its sales were going. However, I now understand that events happening in Europe, production in New Zealand, and consumption trends in Asia significantly impact the prices we receive for our milk. It’s clear that we’re all connected, and global events can have a ripple effect on our local milk markets.

An old farmer once shared some wisdom that has stuck with me all these years. He said, “Milk is valued by the worth of the last tanker load leaving home.”

Initially, we focused on exporting lower-value dairy products, which created a temporary presence in the global market. However, over the last few decades, the U.S. dairy industry has become a consistent and strategic player in the global dairy market for products that run the value gamut: from commodity goods to cheese and high-protein whey.

Climbing the value scale globally to make every drop count requires patience and a continuous commitment to participate in the international demand-building process, and the dairy checkoff is delivering results on this strategy.

To learn more about your national dairy checkoff, visit www.USDairy.com/forfarmers or to reach us directly, send an email to TalkToTheCheckoff@dairy.org.