Challenges and Opportunities in the Dairy Foods Exporting Industry

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Dairy farmers face unique obstacles in their business endeavors, particularly export-dependent exports which provide critical income security.

USDEC economists remain divided as to whether 2023 can match 2022's impressive milk solids equivalent (MSE) export growth. Real-time audience polling indicates that most expect positive but gradual export expansion for MSE exports.

Supply Chain Management

Dairy foods exporter in Japan are perishable products, making efficient supply chain management critical to maintaining product quality. Therefore, the dairy food industry needs reliable logistics and transportation systems without obstacles that impede trade.

Dairies must strike an optimal balance between production and inventory management. An excess of product can cause spoilage while an insufficient stock must not result in lost sales opportunities. Accurate forecasting, efficient production processes, and effective logistical oversight must all come together in harmony for success in dairy farms.

Dairy leaders must focus on more than cost and supply chain challenges when setting strategic priorities: growth, resilience and sustainability (see exhibit below). To support company expansion, executives need to explore new markets and categories while keeping in mind corporate purpose and stakeholders' roles. In order to enhance resilience practices that build consumer trust while creating positive environmental and social impacts are integral parts of resilience improvement - areas in which collaboration and innovation are of critical importance.

Logistics

As one of the oldest and most diverse consumer goods industries, dairy products must meet an array of stringent requirements - food safety, quality and sustainability must all be satisfied in addition to product differentiation, as well as efficient supply chains with cost-cutting capabilities.

New products must also be developed and promoted to meet consumer demand as it evolves, necessitating precise forecasting across all market segments while keeping in mind innovation and continuous improvement as the priority.

Global trade agreements must be upheld to facilitate access to international markets and foster fair competition. This requires addressing non-tariff barriers as well as making sure rules, regulations, and standards do not create unnecessary obstacles to trade. IDFA, Port of Los Angeles and CMA CGM have joined forces in an initiative focusing on milk exports for shipment to East and Southeast Asian regions; already this initiative has made significant strides forward moving cargo cargo towards its final destinations.

Packaging

Dairy products are an integral part of human culture and consumption worldwide, widely touted as healthy foods packed with essential proteins and other essential nutrients. Yet this industry faces several unique challenges and opportunities; among these is product differentiation and consumer demand for clean label options.

Changes to global demand patterns, increased consumer awareness of health benefits, and the growing presence of plant-based dairy alternatives have had an impactful effect on international dairy markets. Dairy producers face pricing challenges; an efficient price optimization solution may provide real-time actionable insights and ensure prices are optimized across their supply chains.

Exchange rate fluctuations also impact dairy exports, especially when the dollar is strong. To ensure USDEC can negotiate dairy trade agreements that expand market access with key trading partners and create opportunities for dairy farmers and their cooperatives. NMPF urges Congress and the administration to renew Trade Promotion Authority and support negotiations that allow USDEC to negotiate dairy trade agreements that expand market access for dairy producers and cooperatives alike.

Sustainability

Dairy companies must offer eco-friendly products in order to satisfy consumers and create an impressive brand image, including adhering to sustainable farming practices, using recyclable packaging and reducing greenhouse gas emissions with innovative tools such as precision agriculture.

Maintaining both growth and sustainability requires effective partnerships among key stakeholders. Fostering an industry-wide talent pipeline is especially essential to ensure an uninterrupted supply of workers even during times of labor market volatility; this can be accomplished via career technical education programs, university scholarships or similar initiatives.

Dairy companies must maintain a strong supply chain to prevent bottlenecks and delays that impede product quality and customer service, which in turn could negatively impact new business, aid the empty container problem, and expedite American dairy products to customers worldwide. IDFA works closely with ports, shipping lines and other supply chain partners to create market-driven solutions that support new business while relieving empty container issues as quickly as possible.


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