Current News and Views on Dairy Trade

NMPF has been very supportive of the ongoing Trans-Pacific Partnership negotiations to advance our goal of a package that results in realizable net trade gains for the U.S. dairy industry. Securing that outcome for America’s dairy farmers and dairy companies, however, will hinge on the U.S. successfully negotiating key market access elements in these final weeks of TPP talks. 

Whether or not TPP is good for dairy will turn  on whether USTR insists on a truly balanced dairy outcome that results in real (not potential) net trade benefits for U.S. dairy exports into Japan & Canada in comparison with new dairy access into the U.S. for New Zealand. 

• Japan – TPP must include the ability to meaningfully expand our dairy exports over time for all dairy commodities, including butter and powder, into Japan. 

• Canada - Canada has for far too long evaded providing meaningful and comprehensive dairy market access. This agreement must break through that wall.

• New Zealand – The world’s largest dairy exporter is now swimming in milk due to the current drop in world dairy markets and their continual need to export 95% of their milk. Dairy accounts for 25% of their country’s total exports, meaning it is New Zealand’s uppermost goal to gain considerably more access to the stable and profitable U.S. market. 

It’s inappropriate to expect American dairy farmers and exporters to bear the brunt of open markets with this exporting powerhouse when major markets are not comparably opening to us or New Zealand.