And the cow jumped over the moon; the United States is quickly becoming the low-cost producer - low-cost dairy producer and international marketing - Food For Thought - editorial

Dairy Foods, June, 1989 by Jerry Dryer

And the cow jumped over the moon

As far as I can tell, the proverbial cow didn't sell any milk or dairy foods during her journey. But it can be said, at least figuratively, that dairy food companies today are shooting for the moon.

Modern-day astronauts still aren't major customers, but closer to the surface of the earth, opportunities do abound. Millions of on-the-move Americans criss-cross the country and circle the globe each year, and so, these always-on-the-go travelers are creating a growing foodservice business in the air. In fact, futurist John Nesbitt says the number of people taking airplane trips will double by the year 2000. And the market potential isn't limited to the airways.

This month's marketing story explores how all segments of the transportation business offer new opportunities for dairy food companies. Did you know, for example, that 20 percent of all automobiles will come equipped with microwaves by the turn of the century?

"Planes, Trains and Automobiles" explains new developments in transportation and how products that cater to our ever-mobile society need to meet some unique product, package and distribution requirements. However, the story also examines how potential sales opportunities should spur the industry into overcoming any obstacles.

The theme of transportation and how the dairy industry distributes dairy foods to customers around the world also is an integral theme in this month's cover story, which examines how more U.S. companies are entering the international dairy foods marketplace.

Long insulated from the rest of the world, U.S. dairy foods companies are now venturing across the borders to capture a marketplace with practically limitless potential.

Lower U.S. support prices for milk are rapidly driving the United States toward becoming the major low-cost dairy producer in the world. Some quick international observers may note that Australia and New Zealand have lower costs, but their total production of dairy foods is a drop in the bucket relative to current U.S. output and its potential.

European dairy companies, which long dominated the world export market, are now customers of the United States because of limited supplies elsewhere. Much like the United States, European countries have become tired of budget-busting subsidies that supported European farmers and generated huge surpluses of dairy products. The surpluses, in turn, were exported at subsidized prices. That created a demand in Third World countries, and now, without a supply at home, exporters are turning to the United States for enough nonfat dry milk and whey to fill their orders.

Today, customers around the world look to the United States for ice cream, yogurt and beverages. They also are searching for the technological and marketing know-how to sell dairy foods in their homelands.

Just one year ago, Dairy Foods magazine reported the potential of the international marketplace. In this issue, the report focuses on sales being made.

As the result of this newly found global awareness by this country's dairy food businesses, consumers around the world will soon be eating a full line of dairy foods labeled "Made in the U.S.A."