Washington dairy farmers are seeing exports rise

  • By Debra Smith The Herald Business Journal
  • Sunday, February 24, 2013 2:47pm
  • Business

MONROE — Dairy farming is getting tougher all the time in Snohomish County, but at least one thing offers promise to local farmers: the Chinese are developing a taste for milk.

Exports are becoming a crucial part of dairy farming in Washington as demand increases for products overseas, particularly in Asia.

That’s a shift for Pacific Northwest dairy farmers, who until about 15 years ago used to sell almost all of their products locally or at least domestically, said Jim Werkhoven, a dairy producer who owns and operates a 1,200-cow dairy near Monroe with his brother, Andy, and their spouses.

“This is absolutely the future for this area,” said Jim Werkhoven, who also serves as chair of the Northwest Dairy Association cooperative board, which owns Darigold. “Any growth will come out of exports.”

Nationwide, 13 percent of dairy products are shipped out of the country. Nearly half of what Darigold produces in Washington, Oregon, Idaho and Montana is exported. That’s significant because Darigold processes virtually all dairy products produced in this state.

Washington exports more dairy products than any state except California.

Most of the dairy products shipped overseas from the Pacific Northwest are processed into whey or milk powder first, then reconstituted and added to other products overseas.

On a recent trip to China, Werkhoven found a wider variety of milk products in a corner convenience story than he would here, including milk drinks flavored with papaya and peanuts.

Some countries may not have the land for dairy farms or the infrastructure to ship the products domestically, he said.

That’s where Washington’s dairy farmers can step in. But the U.S. has to compete with other exporters, such as New Zealand, Australia and the European Union, for that business.

Washington has an advantage over other areas of the country because of its ability to ship easily to Asia. Plus, cows like the mild climate here better than California and produce more milk, Werkhoven said.

Mexico is this state’s top foreign customer, buying $98 million in dairy products exported from Washington in 2012. Right behind are the Philippines ($39 million), Indonesia ($32 million), China ($13 million) and Malaysia ($7 million).

Darigold has done a lot to get that overseas business, said Kima Simonson, U.S. Dairy Export Council board member. She owns a dairy farm north of Spokane with her husband.

Although the milk her family farm produces goes mostly to their region, the success of exporting benefits all dairy farmers in the state because of the cooperative nature of the business.

Washington dairy farmers produce plenty of milk to meet the needs of domestic customers. If the surplus wasn’t exported, it would mean depressed prices here.

There’s pride in feeding other countries, she said, and “we take a lot of pride in how we take care of our farms and our cows. We’re proud of the quality of the milk we produce.”

While the interest in Washington dairy products is heartening to dairy producers, exporting is not a panacea.

Dairy farmers everywhere are struggling. Milk prices are more volatile than in years past.

What’s hurting dairy producers most today is the high cost of feed. Last summer’s drought in the Midwest pushed up the price of grain crops.

While it used to cost Werkhoven $5 a head daily to feed his cattle, it now costs $7. That tightens profit margins.

Exporting numbers have been on the rise in the past 15 years. When the economy fell apart in 2009, so did exports. The numbers have nearly returned to pre-recession numbers.

Dairy export numbers dropped by 20 percent last year, from roughly $291 million to $233 million, according to statistics from the state Department of Agriculture.

The potential for growth offers promise to dairy producers.

“The dairy business isn’t an easy business,” Werkhoven said. “It’s not for the faint-hearted. But exporting is one of the most helpful things we have.”

More from The Herald Business Journal: www.theheraldbusinessjournal.com

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.