“Dairy consumption is expected to grow quickly in key emerging markets.” That was the message that Brett Burgess of Bain & Company relayed to dairy producers at the Washington Dairy Industry annual meeting held near Cle Elum, Washington, Nov. 13-15. The annual meeting’s theme was “Dairy, It’s a Small, Small World” and focused on export growth.
Dermot Carey, senior vice president of Darigold's ingredients division, also discussed global opportunities.
“The challenge is developing products other countries want and can afford. Southeast Asia, China, the Middle East and Northern Africa are growth areas and each has their own requirements.”
Carey noted that continued export growth is largely dependent on taking additional market share from New Zealand and Europe. One distinct advantage is geography – Shanghai is closer to Seattle than it is to Christchurch, New Zealand.
Another factor driving increased exports is population growth in emerging countries, especially those that can’t produce dairy products for themselves due to climate or infrastructure weakness.
Burgess noted that while China is making massive investments in dairy production the growth is not going fast enough to fill the demand gap. That means opportunities for U.S. producers.
Looking at the domestic market, Stan Erwine, vice-president of consumer relations for Dairy Management Inc. (DMI), outlined for Washington dairy producers the value of targeted partnerships with McDonald’s, Domino’s and Quaker Oats.
“Checkoff investments build powerful partnerships to increase demand for and sales of dairy products and ingredients.”
Don Schriver, a consultant for the Innovation Center for Dairy, talked about the importance of sustainable dairy practices and the best use of available resources.
“The bottom line is customers care about sustainability and they’re the ones who buy all the things we produce,” said Schriver. “Retailers are asking what we’re doing in agriculture – dairy in particular – to provide better use of resources.”
The annual meeting also recognized former Washington Dairy Products Commission general manager Steve Matzen for 21 years of service. He received the President’s Award. Matzen took a vice president position with Darigold earlier this year. PD
—From Washington State Dairy Products Commission news release
PHOTOS
TOP RIGHT: Brett Burgess of Bain & Company talked to Washington dairy producers about emerging opportunities in the global market.
MIDDLE RIGHT: Stan Erwine, vice-president of consumer relations for Dairy Management Inc. (DMI), outlined for Washington dairy producers the value of targeted partnerships with McDonald’s, Domino’s and Quaker Oats that have come about as a result of the Dairy Checkoff program. Photos courtesy of the Washington State Dairy Products Commission.
