U.S. dairy exports grow in SEA market

2018 was a milestone year for U.S. dairy companies with interest in Southeast Asia, according to the U.S. Dairy Export Council (USDEC). The SEA region was the second largest export destination, coming after Mexico, but ahead of Canada and China in terms of metric tonnage and export value. Shipments of mostly whey ingredients, milk powder and cheese amounted to a record high of 441,000 metric tons (MT), or 28% more over the previous year. In particular, U.S. cheese exports to the region grew 15% over the previous year to reach 19,000 MT. Continuing its partnership with the World Gourmet Summit (WGS) is also key to USDEC’s success in the cheese segment.

The Council expressed confidence in Southeast Asia as exports continue on an upward trend.

FoodPacific Manufacturing Journal reached out to Ms. Dalilah Ghazalay, Regional Director, Southeast Asia, U.S. Dairy Export Council for further input.

Ms. Dalilah Ghazalay, Regional Director, Southeast Asia, U.S. Dairy Export Council 

The U.S. Dairy sector continues to expand its footprint in Asia/ASEAN as export figures show. To what factors do you attribute this success?

As Asian consumers continue to seek nutritionally advantageous, natural products with a local twist, regional food and beverage manufacturers have taken advantage of the benefits U.S. dairy ingredients offer as a solution to capitalize on market trends.

We’ve made a strategic effort to pursue innovation partnerships in the region including a collaboration with Singapore Polytechnic’s Food Innovation and Resource Centre to conduct research and development into innovative dairy food products for the Southeast Asian market—combining U.S. dairy ingredients with local flavors to create new and exciting applications such as better-for-you bakery applications such as Pandan Sesame and Gula Melaka Coconut cakes and cookies. Also, the recent beverage workshops support the use of high-quality U.S. dairy proteins to deliver for health and nutrition-minded consumers.

What is the path being taken by U.S. dairy manufacturers as exports to China falter due to tariffs?

The U.S. dairy industry deeply values the relationship fostered over the years with our customers and partners throughout our global markets, including China. Our products are exported to many markets around the world, and we continue to conduct programs to grow that demand, including regions such as Southeast Asia, Northern Asia, Middle East and Latin America.

Variety of artisan cheese from the U.S. (Photo courtesy: USDEC)

In 2018, the SEA region absorbed 19,000 MT of cheese. Is there a shift of interest from European gourmet/artisan cheeses to American made, in this region?

For the past 15 years, sales of U.S. cheese to international customers have grown more than 672%. The U.S. dairy industry set a record for dairy exports last year, shipping more than two million tons of milk powders, cheese, butterfat, whey products, lactose and other products.

For the SEA region in particular, we’ve made a concerted effort to raise awareness that cheese from the United States not only offers supply security, but also an unparalleled range of creativity and innovation. Chefs from the region who’ve discovered these award-winning cheeses have been impressed, and are excited at the opportunities U.S. cheeses provide them to serve on-trend dishes to consumers in the region and beyond. 

Given the current market conditions globally, what are your cautious projections for 2019-2020?

New food and beverages using whey protein and permeate have been growing in the last decade, and show no signs of slowing down. According to data from Innova Market Insights, 2017 saw a record number of new product introductions with both whey protein and permeate—both reflecting sharp growth in Asia (15.4% and 12.2% respectively).

As consumers' interest in health and wellness foods continues to climb, delivering nourishing products that are simultaneously delicious, enjoyable and convenient will continue to be both a challenge and an opportunity for food and beverage formulators around the world. Beyond nutrition, consumers are looking for their foods and beverages to check other boxes such as being made from sustainably produced sources and providing memorable experiences and global flavors.

U.S. dairy foods can help manufacturers deliver with simple and known ingredients. We're here to show formulators that with U.S. dairy ingredients, they have the tools to provide consumers with high-quality nutrition without sacrificing taste or their clean label.

What is the nature of the partnership with the World Gourmet Summit, and do you see similar partnerships being formed in Asian countries?

The United States dairy industry was proud to return as the official Dairy Partner of the World Gourmet Summit for the second consecutive year. We especially enjoyed seeing the U.S. Dairy Innovative Chef of the Year challenge finalists exemplify that U.S. cheese truly has no boundaries in the skilled hands of Asia’s chefs.

As the leading global supplier of high-quality cheese, the United States is in a unique position to help educate the world about this versatile food and inspire new culinary creations. As such, we’ve established the USA Cheese Guild™—a center of excellence for cheese knowledge and education managed by the U.S. Dairy Export Council and comprised of industry experts.

The Guild offers a premiere, global training designed for both foodservice and retail—the USA Cheese Specialist™ Certification Program, and the program was launched in partnership with the International Centre for Culinary Arts (ICCA) Dubai in the fall of 2018. The inaugural class of 40 young chefs graduated earlier this June, but certification courses are being offered through additional prestigious culinary institutes and schools in Japan (Hattori Nutrition College), South Korea (Daelim University College) and Taiwan (National Kaoshiung University of Hospitality and Tourism) with a few others in the works in Latin America, Hong Kong and China.