Krysta Harden was named president and chief executive officer of the U.S. Dairy Export Council (USDEC) in February 2021, becoming just the third chief executive – and the first female – to lead the organization since its founding by Dairy Management Inc., in 1995.
Progressive Dairy asked Harden to discuss the evolution of USDEC, putting U.S. dairy export volume and value on a record-setting pace through 2021 and the first half of 2022, despite a global pandemic and supply-chain crisis, and why there’s reason for bullish optimism ahead.
Q: In its infancy, U.S. dairy export efforts were linked to the old dairy price support program, striving to create an outlet for lower-valued, low-margin products that were in government storage. How has that focus changed? How has that benefited dairy producers?
HARDEN: Years ago, exports were a way to rid the country of additional products, which we couldn't sell here. That changed in 1995. With the passage of the North American Free Trade Agreement, U.S. dairy farmers saw exports as a growth opportunity. The U.S. Dairy Export Council was formed to maximize that opportunity.
Since USDEC was created, our export activities have evolved. Our marketing efforts are more targeted. Trade policy and market access efforts successfully open new markets and keep them open. The economic understanding of international trade dynamics is lightyears ahead.
Exports today are not about moving surplus products as an afterthought. Exports have become an essential part of the industry's growth strategy. Over the last two decades, roughly half of all “new milk” produced has gone into the export market. Without exports, prices for cheese, nonfat dried milk, whey and other products would have crashed.
We are seeing a growing excitement about exports from farmers, processors, associations and policymakers who realize the impact exports have on the economy, especially in rural communities.
Exports help all our farmers to continue to increase production of the most-sustainable dairy protein source. And exports are the reason younger generations can and should consider staying on the farm. The rising tide of exports lifts all boats in the dairy industry – locally, domestically and internationally.
Q. What role do dairy producers have in growing the U.S. dairy export market?
HARDEN: Our dairy farmers give us a global competitive advantage. They are the most productive, most efficient and most passionate producers in the world. They love what they do. They are investing in all the right places – technology, sustainability and environmental improvements.
Looking ahead, it's clear that we can do what our biggest competitors can't do, supply the world with dairy.
We are at a pivotal moment for global dairy markets. USDEC and the dairy checkoff have been anticipating and preparing for this moment for years. It’s all about supply and demand and the will to invest in exports like never before.
With markets like China and Southeast Asia adding more dairy to their traditional diets, we know that demand will continue to rise. At the same time, our two biggest global competitors, New Zealand and the European Union (EU), are facing structural constraints that limit their ability to keep pace with supply.
It won’t be easy. Sustainability is a crucial issue and requirement. We need a massive commitment from farmers to reach our industry’s ambitious 2050 sustainability goals of carbon neutrality. We also need ongoing funding for the work of USDEC through the dairy checkoff.
Our dairy farmers are better positioned than any other farmers in the world to increase dairy production sustainably to meet rising global demand.
Q. What would you want more potential foreign buyers to know about U.S. dairy farmers, and how do you communicate that?
HARDEN: The U.S. is the world's largest single-country producer of cow's milk, cheese, butter, skim milk powder and whey ingredients. It all starts on the farm.
Our farmers are proud of their legacy over decades of stewardship. An abundance of milk produced with the highest safety standards means foreign buyers can count on our dairy farmers as reliable suppliers.
Sustainability is a huge focus but not a new focus. Our carbon footprint per unit of milk is 63% less than it was 77 years ago. One reason is a relentless pursuit of efficiency, utilizing the latest technology and nutrition science to get more high-quality milk. Production per cow has increased 10% over the last 10 years, according to the USDA.
Farmers have joined the rest of the U.S. dairy industry in a series of goals aimed at reducing water use, improving water quality and achieving greenhouse gas (GHG) neutrality by 2050.
People around the world are increasingly wanting to know how their food is produced and what they are putting into their bodies. Our most effective communications tools are the dairy farmers themselves. When USDEC takes producers to overseas markets to meet global buyers, our farmers are dairy's equivalent to international rock stars.
Q. What would you like more U.S. dairy farmers to know about potential foreign buyers and markets?
HARDEN: Today's global dairy buyers want supply sources with strong reputations for quality, safety and customer service. They want relationships with the U.S. dairy community, including farmers. They want to see quantifiable results in sustainability efforts.
We provide global buyers technical information, application ideas, local consumer insights, educational resources and an understanding of why U.S. dairy should be their go-to source.
We made a significant investment in Southeast Asia, one of the world’s fasted growing markets for protein sources, when we opened the U.S. Center for Dairy Excellence in 2020.
As we look to the East, we have not forgotten our loyal friends south of our border. In 2021, we sold nearly $2 billion in U.S. dairy exports to Mexico, accounting for one-fourth of all other markets combined. Topics of discussion there include defending dairy's image, spotlighting nutritional value, working with farmers in both countries to improve productivity and sustainability, highlighting the importance of U.S. market access and protecting common food names.
Q. What do you think it says about the progress of the dairy industry to have both of its major promotion organizations led by women (Barb O'Brien leads Dairy Management Inc.
HARDEN: I grew up on a Georgia peanut farm where my Mama and Daddy were true business partners. But according to the U.S. Agriculture census, Mama didn't exist. That's because the census only asked for “the principal operator” on a farm. If a husband and wife shared equally in the operations, the husband was listed as the principal operator.
When I served as deputy secretary of the U.S. Department of Agriculture, I worked with others to make sure rules were changed so that women on the farm were counted. The USDA's latest census shows that 30% of U.S. dairy farm operators are women. A growing percentage are principal operators.
The fact that women like me are now leading large dairy organizations is a tribute to the women who toiled uncounted on farms across this country for hundreds of years. Some, like my mother, helped save enough money to send their daughters to college so they could prepare for future leadership positions.
As the first woman to lead USDEC as its president and CEO, I'm mindful of the women who paved a path for me, and I do my best to encourage and mentor the next generation of women leaders in agriculture.
Editor’s note: Harden will be among a panel of international experts sharing insights on issues facing the dairy industry during a Global Dairy Symposium, scheduled for Oct. 6, in conjunction with World Dairy Expo, in Madison, Wisconsin.
