The United States and China have signed a memorandum of understanding that will expand American dairy exports. More than 200 U.S. processors are officially cleared to begin exporting to China immediately and the agreement paves the way for additional entrants in the future. South Dakota Dairy Producers Association Executive Director Roger Scheibe says China represents a huge potential market for U.S. dairy products.

The countries have agreed to allow third-party certification companies to make sure U.S. dairy facilities are in compliance with Chinese food safety rules. Scheibe says this is good news as exports are critical for South Dakota and all U.S. dairy producers.

U.S. Dairy Export Council officials, working closely with National Milk Producers Federation policy staff, worked on the U.S. Chinese dairy agreement for more than two years. Scheibe says U.S. fast food companies also helped create Chinese demand for U.S. dairy products.

The United States shipped $384 million worth of dairy products to China in 2016, making it the third-largest market behind Mexico and Canada.