The daughter of peanut farmers from Georgia, Krysta Harden shows a true passion for dairy. As the president and chief executive officer of the U.S. Dairy Export Council (USDEC), she champions the work of U.S. dairy farmers and the high-quality, high-value products produced from their efforts.
Progressive Dairy Managing Editor Karen Lee met with Harden to discuss how USDEC strategically meets global consumer demand for dairy and opens new opportunities for U.S. dairy products and ingredients, placing not only volume but also value in the world’s marketplace.
Krysta Harden is the president and chief executive officer of the U.S. Dairy Export Council. Courtesy photo.
What are the driving factors for dairy exports this year?
HARDEN: There is demand around the world and tight supplies. For U.S. dairy exports, specifically, there’s never just one market. Luckily, we’re diversified around the world. In addition, the rest of the world really appreciates the high-quality products that we have from the U.S. We are honoring those commitments to good customers and building out some new ones as well.
What makes you optimistic about U.S. dairy exports?
HARDEN: I am excited about what’s happening in U.S. dairy for a lot of reasons. One is our innovation and commitment from the dairy farmers. I travel the world. I see other dairy farmers. They’re good. Ours are great. I just really believe their commitment to high-quality products; high value, consistent products; the commitment to being in a global marketplace; and listening to customers to things they want, not just what we want to send them.
Another reason is the young farmers that are coming back to the farm. They’re enthusiastic about where they can go and what they can do. They’re business-minded. They’re thinking about the globe. They’re thinking about how we are all connected and how we interact. They’re generous. They care about other people. They want healthy diets for everyone.
They also understand that for expansion and growth, it’s going to have to be beyond that farmgate. Our population in the U.S. is fairly stagnant. Dairy is already a big part of the U.S. diet and that’s not going to change. So for us to truly grow and expand at the levels that have a robust growing industry, we need to look beyond our borders. I think young people see that, and it doesn’t scare them. They’re excited about it.
You mentioned one of our strengths is a diverse customer base. Please explain.
HARDEN: USDEC has offices in 10 locations around the world. We don’t just rely on the close and the convenient – even though Mexico is obviously a country that we have a great trade relationship with – but we don’t just stop there. We look at the rest of the world as well. Everyone should have access to our products.
In addition to Mexico, what are some of the global hot spots for U.S. dairy exports?
HARDEN: We opened an office a few years back in Singapore to cover Southeast Asia. The U.S. Center for Dairy Excellence is located there, and it’s been a great gateway to those southeastern Asian countries. They really are very excited about dairy, dairy ingredients and how to incorporate dairy into their diet. They’re not as heavy on eating dairy as we are in other parts of the world, so that introduction of dairy to the diet has been very exciting.
We are looking forward to seeing growth in many other countries in the region. I think of the Philippines, Vietnam, Malaysia, other parts of Asia, Japan and Korea as big markets for our cheese as well.
The Middle East and Northern Africa is the place a lot of people don’t think about us having a presence. During COVID-19, when other parts of the world were suffering, that became a growth market for us.
I always say the Americas are so close, and we have a trade agreement in CAFTA-DR in Central America and the Caribbean that will get to zero tariffs coming up very quickly. I think about Guatemala or Honduras and am very excited about those markets. Then, there is South America with Chile, Peru – we’ve had some hiccups in Colombia, but we are going to get back there – Brazil and Argentina.
Long-term, it’s probably sub-Saharan Africa, where we don’t have a presence of any magnitude today. The Europeans do, and there’s also a lot of dairy produced. It is a region with huge populations, and the youngest populations in the world are on the continent.
Pick a place, and I can give you a good reason to be hopeful.
What are the most desired dairy products from the U.S.?
HARDEN: It really does depend on the region. I would say our cheeses. We have a lot more cheese processing coming online in the next year or so in the U.S., which will be a big boost to our exports. Its use in both cooking and eating is growing in the world.
But our ingredients, our powders, the proteins have been just so exciting lately when looking at adding protein to sports drinks and sports health bars. I never leave home anymore without a dairy protein bar in my bag because that’s my meal if I can’t get anything else. The rest of the world is seeing that as well.
Some cultures are also substituting salt with permeate because they feel like they have too much sodium in their diet.
Dairy is truly a miracle commodity because you can take the components and use them in so many different capacities and ways in foods; the functionality of dairy; and the vitamins, minerals and very healthy elements of dairy.
What challenges are U.S. dairy exports facing?
HARDEN: We definitely have a tight supply [of milk], not only the U.S. but in other parts of the world. That does put pressure on a global trade system. Like everything in agriculture, there are cycles, so we have to be steady, we have to be consistent. We have to work with our customers and be honest with them about supply.
There are also geopolitical challenges that are out of our control. Then there are natural disasters and other issues that we just adapt to the best we can. That’s another reason why diversification is important.
How has the U.S.’s approach to dairy exports changed?
HARDEN: We are the third-largest exporter. New Zealand and Europe are the biggest exporters. They made a real commitment to exporting long before we did. USDEC was founded almost 29 years ago, when we only exported 3% or 4% of our product, so our intentionality and our focus on exports have grown over time. Now we are starting to really earn the reputation as a reliable, consistent supplier of dairy and dairy products around the world. Your customers want to know you’re going to be there day in, day out, even when things are tough. That’s what I’m most proud of, is just being that reliable, consistent supplier of high-value, high-quality products.
We have a much more sophisticated approach to doing business now. I think our processors, our cooperatives, our traders and our farmers do look at the globe now, and we’re much more connected. The 10 offices make a difference as well, listening to customers there. We take farmers on missions so they can learn firsthand. We bring customers over here; reverse missions are very important too.
How would you state the importance of the export market to U.S. dairy farmers?
HARDEN: One out of every six tanks of milk leaving a farm is exported. I just always wonder: What’s going to happen to that product if it didn’t have a home outside of the U.S.? Exports are a market. It is a place for your product to go. So whether your farm is exporting or you’re selling locally, it’s still the collective of the U.S. industry you have to look at and the value in your milk check. That’s what exports are about. We don’t want that to go down. We want that to go up.
How does sustainability factor in to dairy exports?
HARDEN: Our customers around the world want to know about our commitment – our farmers' commitment and our processors' commitment – to the planet and natural resources. They want to know about our goals. They want to know what’s happening on the farm.
That’s another reason we often take farmers around the world so they can hear firsthand from farmers about that ethic, that commitment to caring for natural resources, as well as their animals.
In key markets around the world, that is sometimes the first question. If you’re not there to talk about it yourself, your competitors are talking about it.
We make sure that we don’t shy away from those questions, we don’t shy away from the data, we don’t shy away from the concerns or issues raised by customers. We’re happy to talk about it.
We often talk about how all farms may not do everything, but everybody can do something, and they all contribute to a more sustainable industry.
We have amazing farmers, and they’re doing great things. They need to take credit for the great things they’re doing. They need the world to see their commitment. It’s something I’m extremely proud of and showcase often.
