Tag: trade policy

Trade Progress Poised to Reel in Revenue

Posted on by Rachel Ravencraft

In the turbulent tides of overseas commerce over the past year, U.S. negotiators landed a trophy bass in February: a trade agreement with Indonesia that we’ve been trying to hook for decades. It’s a big fish for dairy.

Following years of advocacy by NMPF and our partners at the U.S. Dairy Export Council and the Consortium for Common Food Names, the deal announced Feb. 19 will eliminate tariffs on all U.S. dairy exports, ease regulatory snarls and protect common cheese names like “parmesan.” Indonesia is already the eighth-biggest market for our dairy products — but it’s the world’s fourth most-populous nation, giving its growth potential for U.S. producers nowhere to go but up.

The Indonesia deal was the ninth trade deal secured to date by U.S. negotiators that includes new market access for U.S. dairy products. It’s a good one, but far from the only gain. Some other highlights of these pending agreements include:

  • Elimination of 100% of tariffs on U.S. dairy products in most deals and notable tariff cuts in others, helping to provide competitive parity to suppliers from Oceania or the EU. A great example of this is the level playing field we now have for extended shelf-life milk into Taiwan.
  • Bans on the introduction of dairy facility listing requirements in all these markets; in Indonesia this wipes away a process that could take over three years for a processing plant to navigate before it gained approval to ship.
  • Commitments in each deal to protect U.S. exporters’ use of up to 40 common cheese names like “parmesan,” a result that’s particularly important as the European Union’s Free Trade Agreement network expands, threatening to limit U.S. growth opportunities to market cheeses with widely recognized terms.

This successful expedition would not have been possible without a world-class captain. Chief Agricultural Negotiator Julie Callahan was instrumental in securing these trade deals that will bring real results back to U.S. farmers. NMPF thanks her and the USTR team, all of whom we have had the honor of working with closely, for the substantial efforts made to bring these agreements home.

And even though a recent Supreme Court ruling on tariffs added even more uncertainty to trade policy, the progress made so far also underscores an important fact about dairy’s future: Trade continues to grow, and the foundations for future growth are only getting stronger, as bilateral negotiations continue and the dairy industry continues patiently building markets.

2025 was one of the strongest trade years ever for dairy products. Volume growth for U.S. dairy exports rose 4% over 2024 as measured in milk solids equivalent, ending up second only to 2022 in all-time shipments. Measured in value, U.S. dairy exports rose 15% over 2024 to $9.63 billion, just short of the 2022 record of $9.66 billion.

The star performer of the year? Cheese. Shipments in 2025 rose 20% over the previous year, which also set a record. New domestic processing capacity helped, as did growing familiarity with the quality and taste of American-made products. Just as impressive, the record sales were spread across the globe, lessening the risk that over-reliance on any single market could create risk in the future: In 2025, 39 countries bought more than 1,000 metric tons of U.S. cheese.

Butterfat and high-protein whey also saw banner years, showing the broad-based nature of sales growth. While conflicts between the U.S. and trading partners are throwing exports into doubt in some areas, in dairy, we’re not seeing widespread effects. In fact, it’s the opposite: U. S. dairy is highly competitive in the global marketplace, and we’re building stable, collaborative, relationships that we are confident will stand the test of time and contribute to long-term prosperity for U.S. dairy farmers.

We have a lot of folks to be thankful for on this journey, from our USDEC and CCFN colleagues to the cooperatives who provide high quality products and invaluable expertise. But looking ahead, we need to capitalize. At NMPF, a big part of our trade support comes from our NEXT (NMPF Exports & Trade) program, launched in the second half of last year.

NEXT helps create export opportunities for U.S. dairy producers in international markets, by overcoming trade barriers and keeping domestic dairy products competitively priced overseas. The 142 million pounds of export volume it assisted in its half-year nearly matched the full-year 2024 volumes under the prior Cooperatives Working Together program, which NEXT succeeded.

The program continues to test innovative ways to grow dairy’s market share through new initiatives, including expanding its product mix and providing targeted, additional support beyond primary assistance in key markets — places where the U.S. is at a tariff disadvantage or the U.S. has the ability to gain market share. Cooperatives interested in joining NEXT, or wanting to know more about the program, should contact next@nmpf.org.

Improved trade access coming soon in numerous markets through bilateral agreements, a full year of NEXT, and the continued collaboration of dairy partners builds great momentum for 2026 in U.S. dairy shipments overseas.

Keep that in mind as you read about tariffs, tariff limitations, tariff alternatives, and trade tensions. Though the waters may not be calm, a skillful angler can still net an impressive haul. And thus far, we in dairy have been casting very effectively, and reeling in a brighter future for U.S. dairy products.

Gregg Doud

President & CEO, NMPF

 

Dairy exports: opportunity in uncertainty

Posted on by Rachel Ravencraft

By Shawna Morris, Executive Vice President, Trade Policy & Global AffairsShawna Morris Headshot

The first 100 days of the second Trump administration have been rapid and unconventional on trade policy. Every U.S. dairy producer needs exports, and tariffs may bring new leverage to negotiate expanded U.S. dairy export market access opportunities. Yet, retaliation from China and Canada has weighed heavily on the short term, creating urgency for action to help offset the losses. The May 12 announcement of a preliminary deal between the United States and China to de-escalate tariffs is an important step in the right direction.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are working together to ensure U.S. dairy farmer priorities are front and center in the ongoing negotiations. Working closely with the U.S. Trade Representative (USTR) and USDA, NMPF and USDEC’s joint trade policy team is leveraging its status as confidential trade advisers to advance new market access opportunities and ensure that barriers to dairy trade are prioritized.

This advocacy isn’t abstract. Preparing for President Trump’s April 2 rollout of a “Fair and Reciprocal Trade” plan, NMPF and USDEC developed a comprehensive road map for the U.S. government aimed at unlocking new dairy market opportunities. NMPF’s trade advocacy has focused on four areas: securing new market access, eliminating nontariff trade barriers, resetting the imbalanced U.S.-European Union (EU) trade relationship, and quickly resolving tariff retaliation by China and Canada.

Securing new market access is essential for ensuring the long-term growth and competitiveness of U.S. dairy exports. NMPF is prioritizing engagement with markets including Vietnam, Indonesia, the United Kingdom, and others where U.S. exporters face tariff disadvantages relative to competitors from the EU, New Zealand, or both. Ahead of the administration’s “Fair and Reciprocal Trade” rollout, NMPF submitted 45 pages of comments detailing the specific dairy products and markets where exporters would stand to gain the most.

NMPF has identified a long list of nontariff measures that also hamper trade, including unscientific certification requirements, monopolization of common cheese names like “Parmesan” and “Feta,” and lengthy manufacturing facility approval processes that are thinly veiled attempts to block trade. Tariffs become a secondary issue when U.S. dairy plants and products can take years to be approved to even reach a market in the first place. These challenges aren’t just bureaucratic red tape — they directly determine whether U.S. dairy products can compete globally.

The most egregious example is the EU’s use of nontariff barriers, which has driven the nearly $3 billion U.S.-EU dairy trade deficit. The EU has long employed tariff and nontariff measures to block U.S. dairy imports while enjoying relatively streamlined access into the United States for its own products, particularly cheese and butter. Contrary to what the Europeans claim, this blatant protectionism has nothing to do with history, pricing, or quality advantages — it is completely political. NMPF urges the U.S. government to use all tools, including the tariff leverage, to rebalance the deeply one-sided trade relationship.

Even in the face of retaliation against U.S. dairy producers, NMPF has pushed for strategic engagement to de-escalate conflicts and secure new opportunities for dairy. Both Canada and China, the United States’ second- and third-largest dairy export markets, respectively, have rolled back retaliatory measures in recent weeks, with China reducing retaliation from 125% to 135%, down to 10% to 20%, and Canada implementing an exemption process for dairy imports used as inputs for further processing.

This proactive approach is rooted in decades of experience. While the trade policy landscape continues to change day by day, NMPF is doggedly advocating for global trade opportunities that bring real, tangible results for U.S. dairy producers.

This column originally appeared in Hoard’s Dairyman Intel on May 19, 2025.

Port Labor Strife Resolution Welcomed

Posted on by Theresa Sweeney

Following engagement from NMPF and USDEC with the Biden Administration and the then-incoming Trump team, the International Longshoremen’s Association (ILA) and United States Maritime Alliance reached a tentative six-year contract on Jan. 8 for the United States’ East and Gulf Coast ports, avoiding a damaging strike for dairy exporters.

While the agreement is still pending ILA ratification, the deal averted a strike that was authorized to begin on Jan. 15.

The agreement came after NMPF, USDEC, and more than 50 additional leading U.S. agriculture organizations sent letters to President Biden and then President-elect Trump on Dec. 19, calling for the federal government to help ensure a lasting resolution to the labor negotiations that had reached a stalemate.

In the letters, NMPF and the co-signers detailed the extensive damage that resulted from the previous strike, which lasted from Oct. 1-3. Initially, shipments were paused to prevent a backlog and then proceeded at a below average pace once the ILA agreed to extend their existing contract until Jan. 15, 2025. An estimated $13.5 million in U.S. dairy exports were affected, with members reporting cancelled sales and costly reroutes due to the disruptions.

NMPF engaged with USDA leading up to the contract deadline in January, sharing dairy exporter needs and urging the administration to avoid any potential port labor strikes.

NMPF Works to Mitigate Port Strike Disruptions

Posted on by Theresa Sweeney

A port workers strike that threatened millions in U.S. dairy exports was successfully limited Oct. 4, after NMPF and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to intervene in the port workers strike.

NMPF and USDEC in an Oct. 1 joint statement and Oct. 2 industry letter co-signed by more than 270  agricultural, manufacturing, retail and additional supply chain stakeholders helped apply pressure on the negotiating parties, who agreed to resume work on Oct. 4.

More than $4.5 million in U.S. dairy exports moved through east and gulf coast ports in 2023 and a work stoppage forced exporters to cancel shipments and undertake costly reroutes. NMPF and USDEC relayed information between exporters and USDA to highlight and address storage and rerouting challenges as a result of the strike.

The International Longshoremen’s Association reached a tentative agreement with the United States Maritime Alliance to suspend the strike and resume normal operations on Oct. 3. NMPF and USDEC welcomed the end to the strike and pressed both parties to come to a long-term agreement before the current contract extension expires on Jan. 15, 2025.

NMPF’s Morris Touts Dairy on Panel with Top Federal Ag Trade Officials

Posted on by Theresa Sweeney

Shawna Morris, NMPF’s Senior Vice President of Trade Policy, moderated a July 12 trade policy panel with U.S. Chief Agricultural Negotiator Doug McKalip and USDA Under Secretary for Trade and Foreign Agricultural Affairs Alexis Taylor at the annual U.S. Agricultural Export Development Council conference in McLean, VA.

Morris underlined the importance of exports for the U.S. agricultural industry and highlighted the ways that the Biden Administration can work with the industry to make progress in opening new markets. Morris and Tony Rice, NMPF’s Trade Policy Manager, joined USDEC staff in a series of meetings with USDA Foreign Agricultural Service attachés during the conference to brief them on dairy trade issues specific to the attachés’ markets around the world.

NMPF and USDEC also organized a July 7 letter with 22 other leading agricultural organizations to U.S. Trade Representative Katherine Tai ahead of the July 9-15 Indo-Pacific Economic Framework negotiations. The letter points out American agriculture’s preference for resuming comprehensive trade negotiations, spells out the agricultural industry’s priorities for the negotiations including securing specific commitments on common name protections, burdensome facility listing and certification requirements, and sanitary and phytosanitary barriers to trade.