Ornua: Some Buyers Taking ‘Wait-and-See’ Approach Due to Tariffs
Source: dairynews.today
Ornua, the largest exporter of Irish dairy products, reports that new US tariffs are prompting a cautious approach among some buyers.
Ornua, the largest exporter of Irish dairy products, has stated that the imposition of new tariffs by the United States has led some buyers to adopt a ‘wait-and-see’ approach. The co-op's market report for April noted the potential for these tariffs to "disrupt trade and weaken economic growth." After a stable first quarter, the new tariffs are expected to dampen market sentiment, typically strong during periods when demand and pricing increase.
The full impact is still uncertain; while some commodities will be more affected than others, the disruption impacts global economic growth and demand. President Trump announced that countries refraining from retaliation would only face a 10% tariff until July, though Irish agri-food products initially faced a 20% tariff. Current projections indicate that global milk supply remains flat with minimal growth, not expected to exceed +0.5% annually, though milk solids could be stronger.
The European Union braces for potential supply reductions due to ongoing challenges such as bluetongue and foot and mouth disease. Conversely, Ireland saw a lift in milk flows by 9.4% in January, with further increases expected. The outlook varies across other regions: German and French milk collections have declined, while New Zealand records growth due to favorable conditions. Conversely, dairy productions in China are contracting due to low margins.
The full impact is still uncertain; while some commodities will be more affected than others, the disruption impacts global economic growth and demand. President Trump announced that countries refraining from retaliation would only face a 10% tariff until July, though Irish agri-food products initially faced a 20% tariff. Current projections indicate that global milk supply remains flat with minimal growth, not expected to exceed +0.5% annually, though milk solids could be stronger.
The European Union braces for potential supply reductions due to ongoing challenges such as bluetongue and foot and mouth disease. Conversely, Ireland saw a lift in milk flows by 9.4% in January, with further increases expected. The outlook varies across other regions: German and French milk collections have declined, while New Zealand records growth due to favorable conditions. Conversely, dairy productions in China are contracting due to low margins.
