California Milk Industry Pursues Supply Opportunities for Real California Milk

SOUTH SAN FRANCISCO, Calif., & MODESTO, Calif. – February 20, 2009 – The California Milk Advisory Board (CMAB) announced today a delegation of key board members, the executives and several partners, will visit China on a trade mission beginning on Feb. 18. The total delegation is comprised of members from various industries energy, agriculture, tourism and technology.

The California delegation is heading to China to pursue opportunities to meet the country’s growing need for dairy products, particularly in the industrial and foodservice markets. According to a recent study conducted by Ross Christieson, a consultant for CMAB, overall U.S. dairy exports to China were up 40 percent in the year to November 2008 compared to 2007, with over 35 percent of U.S. dairy exports coming from California. Additionally, cheese and butter exports were up 73 percent and 82 percent respectively, with California supplying approximately 50 percent of these products.

While exports for the early part of 2009 are projected to lag behind the previous years’ figures, the trade mission supports CMAB’s long-term expansion strategy into international markets. International dairy consumption growth is anticipated between two to four percent a year and California is uniquely and strategically positioned to supply the demand.

In addition to fluid milk sourced locally in China, products like butter and cheese made with Real California Milk are in demand. The California dairy industry operates under some of the most stringent product safety standards and actually exceeds the United States’ federal guidelines for the amounts of calcium and protein in each serving. Currently, we are selling fluid milk in Hong Kong through a leading retail chain.

The goal of the mission is to continue establishing a greater understanding in the U.S. of the opportunities that exist for California suppliers in the Chinese dairy industry, as well as help facilitate business deals that will initiate and expand dairy trade between the two countries.

“Following the successful trade mission last November, the California dairy producers and manufacturers believe it’s imperative that we return to China to further the positive opportunities for both China and California’s dairy industries,” said Stan G. Andre, chief executive officer of the CMAB. “The last trade mission opened new doors for California products in China, and we believe this trip will help solidify our current supply in China and hopefully present further opportunities.”

Unique to this trade mission, the California companies will be paired with 15 Chinese companies in Beijing through the China Council for the Promotion of Trade (CCPIT) to promote business partnerships and discuss topics including environmental protection and renewable energy; agriculture and food safety; tourism, investments into California companies; and information technology. In Xi'an more than 15 Chinese companies will be paired with California businesses through the China North America Business Science & Technology Council; and in Shanghai and Pudong 20 businesses will be matched through the Pudong CCPIT. In addition, the California Milk Advisory Board will host two major receptions showcasing California dairy products including cheese and wines to Chinese industry, media and government.

While the California Lieutenant Governor is not attending the mission, he and his office are heavily supportive of the dairy industry and the goals of the mission. Upon the return from China, the Lieutenant Governor has invited the delegation to meet with him and the Commission for Economic Development in Sacramento to brief them on the experiences and accomplishments upon their return.

The California dairy industry attendees include Stan Andre, CMAB CEO; Richard Michel, CMAB vice chairman; Dominic Carinelli, CMAB treasurer; Ross Christieson, CMAB consultant; and John and Heather Fiscalini of Fiscalini Farms.

In 2007, the CMAB introduced the Real California Milk seal. The CMAB promotes and advertises the Real California Milk seal which is used to identify dairy products made with Real California Milk. For California dairy products such as cheese and butter distributed and sold in China, they must carry the Real California Milk seal or the Real California Cheese seal to participate in promotional events. Updates and key findings from the trade mission will be reported at the March CMAB Board Meeting in South San Francisco, CA.

**If you would like a complete list of participating attendees please contact Denise Day at denise.day@ketchum.com.