Dairy industry tries to cater products to Chinese market

by | Aug 2, 2017 | 5 Ag Stories, News

 

An Iowa dairy farmer hopes to better understand the Chinese market, in efforts to tailor dairy products for the East Asian market.

Larry Shover is president of the Iowa State Dairy Association. Ben Nuelle spoke to Shover before he departed for the first all-agriculture trade mission to China. During their conversation, Shover shared his desire to better understand the Chinese market.

?One of the weaknesses we?ve had in the dairy (industry) is that if we had a surplus of non-fat, dried milk, that?s what we?ve offered; we didn?t? find what was needed or desired,? Shover said. ?We?re getting better at that. We?ve moved our exports up from almost nothing to almost 15 percent.?

Within the next five years, former Iowa Secretary of Agriculture and current U.S. Dairy Export Council CEO Tom Vilsack hopes to increase dairy exports by five percent, to 20 percent. China could be a huge market opportunity for the dairy industry, Shover said.

?China?s middle-class is growing rapidly. Not very long ago, I saw that they?d add 300 to 500 million to their middle-class within the next 15 years. Those are the people who, as they move into that higher income (bracket), are going to want to upgrade their diets and include more animal products, such as milk and dairy products,? Shover said.

In efforts to better cater to the Chinese market, co-ops and other manufactures are building new facilities capable of crafting difficult-to-make products, for certain specifications.

?And that will be a win for us,? Shover said. ?Milk is a very versatile product, it can be used in a number of different ways. I think if we can get it positioned right, it will do well.?