The trade stakes are high for the dairy industry

The dairy industry is keeping a close eye on trade policies. The U.S. exports a little more than 15 percent of dairy products, meaning access to global markets affects supply and prices.

‘Dairy has big stakes in export markets. We export about 16 or 17% of our production, so if we lose those or lose a portion of them, then that means products are backing up into the U.S., and unless we find new homes for those, either domestically or in other markets, then prices drop because we have too much supply. So, the stakes are very high for dairy, and of course, our three biggest markets are Mexico, Canada, and China,” said National Milk Producers Federation’s Chris Galen.

Canada and Mexico are top markets for U.S. dairy exports, with ongoing efforts to strengthen ties. Meanwhile, China remains the largest market.

Related Stories
Global fiber demand is growing, but cotton producers benefit only when cotton gains value and competes for market share.
Research shows a small number of companies account for much of the nation’s ammonia production capacity.
RealAg Radio’s Shaun Haney recaps Farm Credit Canada’s trade forum, Canadian producer sentiment ahead of the USMCA review, and his outlook for U.S.-Canada trade relations.
USDA raised exports by $2.5 billion from February, while imports are forecast at $205.5 billion. The resulting $29 billion agricultural trade deficit remains a reminder that higher shipments alone do not resolve trade pressure.

LATEST STORIES BY THIS AUTHOR:

United Sorghum Checkoff’s Lanier Dabruzzi joins us to discuss National Sorghum Month, consumer awareness, and the increasing demand for sorghum used in gluten-free snacks.
Industry estimates suggest approximately 500 million sterile flies per week may be required to fully eradicate the pest.
Wednesday, June 17 at 7:30 PM ET / 6:30 PM CT