India Eyes U.S. Dairy Market Share as Trade Tensions Mount
Source: dairynews.today
India stands to benefit significantly from ongoing trade tensions sparked by U.S. tariff hikes, potentially capturing a substantial share of American dairy exports, according to a senior industry executive.
Jayen Mehta, Managing Director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets products under the Amul brand, said the U.S. has inadvertently ceded ground in key dairy markets due to its protectionist trade policies.
“Nearly half of U.S. dairy exports are directed to regions around India—including West Asia, North Africa, Southeast Asia, China, Sub-Saharan Africa, Japan, and South Korea,” Mehta said in an interview.
Following the imposition of tariffs by the U.S. under President Donald Trump, several countries have either announced or are considering retaliatory duties. China has already levied a 34% tariff on U.S. dairy imports.
“These nations are likely to seek alternative suppliers,” Mehta said. “As the world’s largest milk producer, India is well-positioned to fill that void.”
The ongoing tariff war could open up new trade avenues for India, providing opportunities to diversify its dairy export base, industry observers say. While retaliatory tariffs would make U.S. dairy products more expensive, supply chain disruptions could further tilt the balance in India’s favor.
“India was already emerging as a global dairy player,” Mehta noted. “This geopolitical shift is accelerating that transition.”
Still, Mehta acknowledged India’s limitations in accessing U.S. dairy markets in South America and Europe due to logistical constraints. “About 50% of U.S. dairy exports head to these regions, which are harder for us to reach cost-effectively,” he added.
“Nearly half of U.S. dairy exports are directed to regions around India—including West Asia, North Africa, Southeast Asia, China, Sub-Saharan Africa, Japan, and South Korea,” Mehta said in an interview.
Following the imposition of tariffs by the U.S. under President Donald Trump, several countries have either announced or are considering retaliatory duties. China has already levied a 34% tariff on U.S. dairy imports.
“These nations are likely to seek alternative suppliers,” Mehta said. “As the world’s largest milk producer, India is well-positioned to fill that void.”
The ongoing tariff war could open up new trade avenues for India, providing opportunities to diversify its dairy export base, industry observers say. While retaliatory tariffs would make U.S. dairy products more expensive, supply chain disruptions could further tilt the balance in India’s favor.
“India was already emerging as a global dairy player,” Mehta noted. “This geopolitical shift is accelerating that transition.”
Still, Mehta acknowledged India’s limitations in accessing U.S. dairy markets in South America and Europe due to logistical constraints. “About 50% of U.S. dairy exports head to these regions, which are harder for us to reach cost-effectively,” he added.
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