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DAIRY ST R
Volume 23, No. 11
An opportunity to grow markets overseas U.S. dairy to benet in decient Asian region
“All dairy, all the time”™
July 24, 2021
Drought conditions stretch across Minnesota
By Jennifer Coyne jenn@dairystar.com
Exports have long helped the United States dairy industry grow, and despite the obvious challenges of 2020, it was a remarkable year for an untapped market. Last year, U.S. dairy exports exceeded $1 billion while the southeast Asia region rose in volume exported by 26% year over year. “That growth moved the region ahead of Mexico to become our top export destination,” said Anoo Pothen, director of consumer insights for southeast Asia with the United States Dairy Export Council. Pothen, based in Singapore, spoke of this selective market during a presentation, “Opportunities to Grow U.S. Dairy with Consumers Internationally,” at the virtual Dairy Experience Forum July 13. Historically, the southeast Asia region – which includes Vietnam, Thailand, Philippines, Malaysia, Singapore and Indonesia – has been considered dairy decient with lofty goals to increase dairy consumption over the next decade. “The combined decit of these six Asian markets is the biggest in the world, but with urbanization and purchasing power, they are hoping to change that,” Pothen said. “Despite the pandemic, exports to Asia have grown and are expected to remain robust for uid milk and yogurt.” In 2020, 12.9 billion liters (28.4 billion pounds) of milk was consumed in some form with plans to grow dairy demand to 19 billion liters (41.8 billion pounds) by 2030, said Pothen. “The government is promoting dairy’s importance,” she said. In order for the United States to fully capture this market share, there are three points to understand about the southeast Asia region and the value of dairy for those consumers. While this six-country region only accounts for 14% of U.S. gross domestic product, it is also 1.5 times the population of the U.S. with annual Turn to EXPORTS | Page 5
JENNIFER COYNE/DAIRY STAR
Greg Vold looks over a eld of corn at his family’s farm near Glenwood, Minnesota. Drought condiƟons in western Minnesota have the Volds concerned about feed availability for their 420-cow dairy.
Farmers consider feed availability while waiting for rain By Jennifer Coyne jenn@dairystar.com
GLENWOOD, Minn. – Following facility and management changes at Dorrich Dairy in 2019, the Vold family spent last year moderately feeding their forage supply with plans to rebuild inventories with the 2021 crop. That plan has crumbled in the face of a drought. “It hasn’t rained, and we’re worried,” Suzanne Vold said. “This year was supposed to be calmer after coming off the pandemic year.” Vold and her family milk 420 cows at Dorrich Dairy in Pope County near Glenwood. The herd is fed off 600 acres of owned and rented land, mostly unirrigated ground. In the Volds’ region of the state, rainfall has been about 50% less than normal precipitation, according to the National Weather Service. Unfortunately, western Minnesota is not the only region of the state suffering from drought conditions. The most recent U.S. Drought Monitor map released July 15 reported the entire state in some form of a drought. A
mere 1.8% of the state is abnormally dry, Department of Agriculture Rural Fiwhile the remainder is in one of three nance Authority made disaster recovery categories: moderate, severe or extreme. loans available to cover lost revenue or “This is the driest I’ve seen, and I expenses not covered by insurance for haven’t seen it this dry this early in the farmers in a severe drought or worse, as season,” Kevin Goeden said. “The year determined on the U.S. Drought Monitor is not over yet; this is comparable to map. 1976, 1988, 2007. We’re on track to be Additionally, Gov. Tim Walz sent a just like that.” letter to United States Department of AgGoeden milks 140 cows near Wade- riculture Secretary Tom Vilsack requestna in Otter Tail County. ing an implementation of emergency While about 200 acres of Gohaying and grazing on eligible Consereden’s total cropland vation Reserve Program land. Shortly is irrigated, his pasTurn to DROUGHT | Page 6 tures are not which is causing stress for his hybrid grazing system. “The pastures aren’t getting any water because we haven’t seen any rain,” said Goeden, who has received 1.25 inches of precipitation since May. “I have a lot of cattle on pasture, mostly youngstock. I might have to sell some if we can’t feed them.” Recently, both state and federal governGRAPHIC SUBMITTED ments took action to address the dry conditions. The U.S. Drought Monitor for Minnesota depicts the Last week, the Minnesota enƟre state in some form of a drought as of July 15.