Matt McKnight, vice president of market access and regulatory and industry affairs for the U.S. Dairy Export Council, told those attending the Pfizer Animal Health Dairy Wellness Summit on Friday that having a 750,000 cells/ml legal limit makes it more difficult to convince international trading partners that we are serious about milk quality.

“When you are sitting down with a trading partner, what’s in your books is what you have to live with,” he said. The trading partner can point out that the regulations allow the U.S. to produce milk up to the 750,000 limit, “so the burden is greater to prove we are below it,” he added.

On May 4, the National Conference on Interstate Milk Shipments rejected a proposal to upgrade the somatic cell count standard from 750,000 to 400,000 cells/ml.

Some countries, such as Russia, may not accept imported dairy products from milk above 400,000 cells/ml.

The U.S. has increased dairy exports in recent years, but many in the international trading arena are watching to see if the American dairy industry is serious about sustaining that progress. In 2010, the U.S. exported 12.8 percent of its milk production, on a milk-solids basis.

McKnight shared the results of a Global Buyer Survey, which was conducted last fall and polled 75 buyers from more than 25 countries.

The survey found that some buyers are skeptical. There’s frustration on their part “that we don’t move fast enough and skepticism on their part that we don’t want to continue,” McKnight said. For instance, buyers point to the somatic cell count standard and the fact the U.S. won’t change it. And, there have been instances where their product specifications for milk powder and other products have not been met.

Many buyers have exact specifications and don’t want variation. Yet, “our milk powder can range from 34 to 39 percent protein,” McKnight said.

The survey also identified opportunities. For one thing, the U.S. is seen as an alternative supplier to the Oceania countries of New Zealand and Australia. Some buyers see the Oceania countries as having a monopoly aspect when it comes to dairy exports.

“We’ve been a late-comer (to the dairy export market),” McKnight said. Yet, the U.S. has entered at a time when countries around the world are “starting to get more money in their pockets and moving up the food chain to eat,” he added.

In China, 20 million babies will be born this year and those babies will be pampered by their parents and grandparents, due to China’s one-child policy. That presents tremendous possibilities for the infant formula market.