- Cheese prices crumble a but the global trade dispute could halt their drop:
Roger Orth, an independent market maker, points out that China and Mexico are two of the largest destinations for U.S. dairy products a by a wide margin.a Theya ve both implemented tariffs on cheese, in retaliation to U.S. tariffs. U.S. dairy exports to Mexico totaled $1.3 billion in 2017, while China took in $577 million in dairy exports from the U.S., according to the U.S. Dairy Export Council.
a Being involved in a trade war with [two of the] largest importers of U.S. dairy products has the potential to really change the demand side of the equation for our products,a says Orth. a We are seeing the impact now. The question is just how long it lasts.a
In the long run, however, the tariffs may end up being good for the market. a The tariffs are painful now,a but ita s possible they are a setting us up for a a perfect storm,a a says Tim Oa Leary, an independent dairy trader. a With the declining dairy prices, we will have more farms closing up.a
a Should we get back to a a truea balance of trade, I have to wonder what new and increased demands on our dairy market will do to the current prices,a he says.
- Americaa s cheese stockpile just hit an all-time high:
- Take Our Cheese, Please: American Cheese Makers Suffer Under New Tariffs:A
- Why Are Americans Drinking Less Cow’s Milk? Its Appeal Has Curdled:A