Trade Stakes are High For Dairy Industry

Trade and tariffs remain a top concern across all sectors of agriculture, including dairy. Chris Galen, Senior Vice President of member services and strategic initiatives with the National Milk Producers Federation, shares an update on the key challenges facing the dairy industry when it comes to trade policy.

“Dairy has big stakes in export markets. We export about 16 or 17% of our production. So if we lose those, or we lose a portion of them, then that means products are backing up into the US, 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.”

Canada and Mexico remain two of the top three markets for US dairy exports, with efforts focused on strengthening those relationships. However, China, currently the largest market, continues to be a key point of contention.

“That's where the largest tariffs and retaliatory tariffs have been imposed by both nations. I don't see that plane turned down to simmer anytime in the near future. So that's something where that's going to be a long-term situation to try to get that resolved. And dairy, there is just one small part of agriculture, and agriculture is just one small part of all the business that we do with China, both exporting and importing. So it's going to be a while before the dust settles on that.”

Chris Galen with the National Milk Producers Federation.