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Vilsack optimistic about exports after China, Japan trips
By USDEC September 7, 2019- Tweet
Strategy: Play the long game in markets with high upside, seize opportunities when playing fields leveled by U.S. trade policy.
USDEC President and CEO Tom Vilsack addresses the China Dairy Industry Association.
Returning from a whirlwind seven-day trip to China and Japan, USDEC President and CEO Tom Vilsack said he is optimistic about the long-term health of U.S. dairy exports despite challenges caused by current trade disputes.
“With hard work and patience, we will continue to grow both volume and value for the U.S. dairy industry,” Vilsack wrote in a Tuesday letter to members sharing takeaways from his trip. “We are on the right track to compete to win.”
Vilsack took his trip (August 28 to Sept. 3) to China and Japan to build relationships in vital markets for the future of the U.S. dairy industry.
What follows is a summary of each trip followed by a visual, one-stop travelogue, displaying images, anecdotes and news nuggets from social and news media.CHINA
MAIN TAKEAWAYS
After meeting with U.S. dairy suppliers and customers in China, Vilsack said the reality of why U.S. dairy exports to China have fallen 43% over one year was brought home. Exports have been hit by a one-two punch of retaliatory tariffs and the spread of African Swine Flu that has killed much of China’s pig population, reducing the need for feed that utilized U.S. dairy ingredients.
DAIRY EXPORTS TO CHINA BEFORE AND AFTER TARIFFS
“In that environment the best we can do is look for ways to maintain the relationship in the hope that the trade dispute gets settled sooner rather than later, recognizing we have no control over when or if that will happen,” said Vilsack.
Vilsack met with officials at China’s Ministry of Commerce (MOFCOM), the governmental arm overseeing trade issues, and with the China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce and Animal By-Products. CFNA influences more than 6,000 agricultural member companies, including more than 1,000 in the dairy sector alone.
A former U.S. Agriculture secretary, Vilsack did not dwell on trade issues. Instead, he proposed “win-win” dairy solutions, such as utilizing U.S. permeate and whey protein in feed to rebuild the Chinese pig herd decimated by African Swine Flu. He touted that idea in a keynote speech at the China Dairy Industry Association’s annual meeting.
Held in Shijiazhuang, a city of 10 million, the industry meeting was co-sponsored by USDEC, one of three organizations outside China awarded the organization’s International Cooperation Friendship Award.
COVERAGE
By Mark O'Keefe
BEIJING -- U.S. Dairy Export Council President and CEO Tom Vilsack met Friday with officials from Chinese government and agriculture to deliver a message that the U.S. dairy industry remains committed to this high-potential market despite the challenge of retaliatory tariffs.
“We want an ongoing relationship with China,” Vilsack told employees from USDEC’s China and U.S. offices before a whirlwind day of meetings. “We are in this for the long haul. We want to be here 10 years from now, 20 years from now and 50 years from now.
“At some point, our governments will figure out these trade issues and when they do we want to be in the best position possible for our member companies and farmer-funders.”
Representing the interests of U.S. dairy farmers and exporting companies, USDEC was a sponsor of the annual meeting of the China Dairy Industry Association in Shijiazhuang, China, on Saturday. https://t.co/IEZqsu78cx #USDairyChina #USDairy #UndeniablyDairy pic.twitter.com/0miIQUKcgN
— U.S. Dairy Exporter (@USDairyExporter) August 31, 2019U.S. Dairy Export Council President and CEO Tom Vilsack told a packed annual meeting of the China Dairy Industry Association that “we can work together to increase the consumption of dairy throughout China.” https://t.co/pMZE8stYsO #USDairyChina #USDairy #UndeniablyDairy pic.twitter.com/gbsyBS5bz1
— U.S. Dairy Exporter (@USDairyExporter) August 31, 2019USDEC President and CEO Tom Vilsack told the China Dairy Industry Association that “we all face the challenge of climate change” and “there is no reason we can’t work collaboratively” to reduce dairy’s global carbon footprint. https://t.co/6XvoqxVVAL #USDairyChina #USDairy pic.twitter.com/stndzFKNqn
— U.S. Dairy Exporter (@USDairyExporter) August 31, 2019USDEC's Ross Christieson speaks before an overflow crowd at the China Dairy Industry Association about global cheese innovation and consumption. pic.twitter.com/vKWvZzMOFF
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019USDEC's Annie Bienvenue addresses the #China #Dairy Industry Association on the topic: "Not All Proteins Are Created Equal." pic.twitter.com/rNOa4z59RR
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019
U.S. Dairy Export Council President and CEO Tom Vilsack told a packed annual meeting of the China Dairy Industry Association that “we can work together to increase the consumption of dairy throughout China.” https://t.co/pMZE8stYsO #USDairyChina #USDairy #UndeniablyDairy pic.twitter.com/gbsyBS5bz1
— U.S. Dairy Exporter (@USDairyExporter) August 31, 2019
This is Shijiazhuang, the site of the China Dairy Industry Association's annual meeting. Its population of 10 million would make it the largest U.S. city (New York has 8.6 million). This shows the enormity of the dairy market in China, a country of 1.4 BILLION. #USDairyChina pic.twitter.com/OmizKudNlH
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019
Vilsack interviewed by National Public Radio regarding his trip to China
Link to full story on NPR hereU.S. Ambassador to China Terry Branstad, center, meets with U.S. Dairy Export Council staff in Beijing. #USDairyChina #USDairy #UndeniablyDairy pic.twitter.com/kkdlKzV4P2
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019Two former governors of Iowa: U.S. Ambassador to China Terry Branstad and USDEC President and CEO Tom Vilsack, who advised Branstad to check out new Costco in Shanghai, featuring U.S. cheeses from Belgioioso, Sartori, Tillamook, Pacific Cheese, Saputo, Schuman Inc. and Lactalis. pic.twitter.com/gvona3fBxo
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019
Customers lucky enough to get into the Costco grand opening in Shanghai saw cheeses made in the U.S. from Belgioioso, Sartori, Tillamook, Pacific Cheese, Saputo, Schuman Inc. and Lactalis -- thanks in part to a new partnership facilitated by USDEC. #USDairyChina #UndeniablyDairy pic.twitter.com/ZjyxMXMzdh
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019USDEC 's Tom Vilsack is on a 7-day trip to China and Japan to build relationships helping to pave way for U.S. dairy exports to thrive in these key markets. Follow his progress in this one-stop travelogue displaying social and news media coverage. https://t.co/GVQ51f5OBr pic.twitter.com/HCNw5dJJIu
— U.S. Dairy Exporter (@USDairyExporter) August 31, 2019JAPAN
MAIN TAKEAWAYSVilsack said he is “hopeful” a Japan-U.S. trade pact agreed to in principle, but not yet finalized, will close a competitive advantage New Zealand and the EU have gained through free-trade agreements that have reduced some tariffs on their dairy ingredients to zero.
Longer-range hope comes from cheese in a country that is already the world’s largest importer. U.S. cheese sales in Japan were up 18% for the first six months of this year compared to last year and meetings with leaders of the Japan Pizza Association indicated plenty of upside remains.
New USDEC partnerships are investing in that upside. For example, Hattori Nutrition College just graduated 115 students in the first of a three-level USA Cheese Specialist™ Certification Program for aspiring chefs who will become influencers for U.S. cheese.
“Our mission is to incorporate cheese into our traditional cuisine, which has not had cheese,” Yukio Hattori of "Iron Chef" television fame told Vilsack at Japan’s leading culinary arts school.
U.S. dairy ingredients are also benefiting from a partnership with Curves, Japan’s leading fitness chain. Curves members, mostly women over 50, subscribe monthly to flavored packets of “super protein” utilizing whey protein from the U.S.
COVERAGE
USDEC’s Tom Vilsack hopeful there will soon be a trade deal with Japan that levels the playing field (relative to U.S. competitors), potentially leading to “significant growth” in U.S. dairy exports to that country. Hear interview on Adams on Agriculture https://t.co/AHvkefKIc4
— U.S. Dairy Exporter (@USDairyExporter) September 6, 2019USDEC's Tom Vilsack asked "Iron Chef" Yukio Hattori: "If I had to have only one pan in my kitchen, what should it be?" Answer: "It is very important to be versatile. A frying pan can do a lot." #USDairyJapan pic.twitter.com/5JejgUMcFM
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019Yukio Hattori, left, head of Hattori Nutrition College in Japan, tells USDEC's Tom Vilsack that "our people love cheese." Our people do, too! #USDairyJapan pic.twitter.com/S6Rzn1JEti
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019115 students from Hattori Nutrition College graduated as Level 1 USA Cheese Guild specialists. That means influential future chefs from Japan's top culinary school now have hands-on cooking experience with U.S. cheese, thanks to dairy checkoff-funded USDEC. #USdairyJapan pic.twitter.com/SF8KpzhnqN
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019Partners in Japan for U.S. Dairy: Staff from Hattori Nutrition College, Japan's leading culinary chef training program, with Tom Vilsack and some of his USDEC team. #USdairyJapan pic.twitter.com/BjXMErGuxv
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019Curves President Maki Sakamoto shakes hands on a growing partnership with USDEC's Tom Vilsack that distributes U.S. whey protein through the largest fitness club in Japan, with 2,000+ outlets. USAdairyJapan pic.twitter.com/I2hm1wJLNH
— U.S. Dairy Exporter (@USDairyExporter) September 3, 2019Thanks to a USDEC partnership with Curves fitness chain, hundreds of thousands of Japanese women 50+ get monthly packages of flavored "Super Protein" -- made with U.S. whey protein. #USdairyJapan pic.twitter.com/6GogYnkI1n
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019Nice fit The U.S. is the world's largest single-country exporter of cheese and Japan is the world's largest single-country importer of cheese (2018 data). #USdairyJapan pic.twitter.com/URLywk4VJg
— U.S. Dairy Exporter (@USDairyExporter) September 2, 2019Former ag secretary Tom Vilsack goes to China and Japan to promote U.S. dairy exports. #capitalpress #dairy #usdec https://t.co/aXF4tTzavT
— Capital Press (@capitalpress) September 7, 2019
MORE FROM PAST ARTICLESLearn more about U.S. dairy exports to China and Japan from these articles that have appeared previously in The U.S. Dairy Exporter Blog:
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The U.S. Dairy Export Councilfosters 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. How to republish this post..
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