April 3, 2018
US dairy group partners with China researchers to boost trade opportunities
On April 2, the US Dairy Export Council (USDEC) signed a memorandum of understanding with China's Jiangnan University, in Wuxi, near Shanghai, China.
The agreement would pave the way for the US-China Dairy Innovation Center to be established at the university, USDEC said.
The tie-up happened amid rising trade tensions between the world's two biggest economies, as the US imposed tariffs targeting Chinese products including solar panels, steel and aluminum. Concerns that China would target US agricultural products for retaliation were borne out when China announced extra duties on US foodstuffs.
China said the extra duties of up to 25% would affect 128 US products including frozen pork, wine, and fruits and nuts.
Still, the announcement between the USDEC and Jiangnan highlights the interconnectedness of the two economies, even as the trade dispute escalates.
In addition to the creation of the food science center, the agreement aims to boost the development of food products for Chinese consumers that use US dairy as ingredients, help US dairy exporters better understand how to work with Chinese food manufacturers, and bolster Chinese students' academic research into dairy.
The agreement is the latest effort by the USDEC to boost business with China, including an agreement last year on US dairy plant registration and a unilateral reduction in Chinese cheese tariffs, said USDEC President Tom Vilsack.
"Asia generally is very important to the US dairy industry, and we need to build these long-term relationships," said Vilsack, who was the former secretary of agriculture in the Obama administration.
China and Hong Kong combined were the third-largest export markets for US dairy products in 2017, behind Mexico and Canada. US dairy exports worldwide reached US$5.48 billion in 2017, up 14% from 2016, according to government and trade data.
However, the trade disputes - and the potential of tit-for-tat retaliation - do have Vilsack concerned.
"We're hoping it all gets worked out," said Vilsack, whose group has hired more staff to develop new business in China.
- Reuters
