What do you see as the short-term and long-term growth opportunities for US dairy?
Short-term, we have countries like Colombia, Peru, Ecuador which are limited in ingredient supply and their demand is growing every year.
So they must be fulfilled with any origin, and Peru and Colombia have free-trade agreements with the United States. So it’s kind of a big opportunity in the very short-term.
Long-term, we have Brazil; we have Venezuela which has little political problems, but can be solved within the future – just give them time. Maybe we can organise a little the demand in Brazil and get order in fulfilling their new requirements, registration and so we can smooth the process of getting into that market and… well, they can have a big share of it. Also Chile is something important, and that way I think we make a very nice market, a growing market.
What are some of the main advantages for American dairy companies doing business in South America?
The greatest advantage in my opinion for American products and American ingredients is that lead times are really short. We have an average of three to four weeks lead time which are not met by any other source. I mean within South America itself, product coming in from worldwide and Argentina to the Pacific coast would take longer than that – longer than six weeks. So there is a great advantage and the United States must achieve that.
Can you elaborate more on the logistical issues that favuor the United States? Do the Andes Mountains play a role?
Products from Argentina can be in worldwide or from worldwide to Brazil within days. But to go to the Pacific coast, they have the Andes in the middle. So they cannot go through them; they have to go by sea and all the way down, and that’s what takes them six weeks. And if they go up through Panama Canal, it’s crazy; it is going to be eight weeks or more. So that is a barrier and we have to take advantage of that. Also, to go to the Atlantic shore for American products is just as fast as three weeks. So it’s the same. I mean we are like a natural market for United States products.
Here are related articles from the US Dairy Exporter Blog:
US Dairy Exports to Chile, Colombia and Peru Surge First Half of 2015
South America Emerges as a US Cheese Destination
“Dairy Export Opportunities” includes these eight videos:
Mexico: Rodrigo Fernandez; Mexico City, Mexico
South America: Cesar Leiva; Lima, Peru
Japan: Jeff McNeill; Tokyo, Japan
South Korea: YS Lee; Seoul, South Korea
China: Daniel Chan; Shanghai, China
Vietnam: Phuong Dang; Saigon/Ho Chi Minh City, Vietnam
Middle East/North Africa: Nina Bakht; Beirut, Lebanon
Southeast Asia: Tony Emms; Singapore
